Einhorn, Partners, SEC, Buying
– Hey Monsanto (MON), isn’t SmartStax a partnership with Dow Chemical (DOW)? You’d never know it from their earnings call.
– Somebody is getting smart.
Visit the ValuePlays Bookstore for Great Investing Books
Einhorn, Partners, SEC, Buying
– Hey Monsanto (MON), isn’t SmartStax a partnership with Dow Chemical (DOW)? You’d never know it from their earnings call.
– Somebody is getting smart.
Visit the ValuePlays Bookstore for Great Investing Books
In a just released SEC filing, Dow Chemical Director John Hess purchased an additional 30,900 shares on Monday at $32.35 for a total of $999k.
He now directly owns 82,270 shares
Disclosure (“none” means no position):Long Dow
Visit the ValuePlays Bookstore for Great Investing Books
This is bigger news than is being reported…
Remember this little nuggett from last summer?
Archer Daniels Midland (ADM) will now apparently start cane-based ethanol production in Brazil with local partners according to a Brazilian newspaper Monday. According to the paper, ADM’s CEO Patricia Woertz is scheduled to be in the area August 19th and an announcement will happen on the 20th.
The company will participate in joint ventures to open two mills, both in center-western Goias state, financial newspaper Valor Economico said. Each mill will be able to crush 3 million to 4 million tons of sugar cane per year and first one should come on stream in 2010.
ADM of course has nothing to say about the potential deal. So if 1 ton of sugar cane gives us about 19.5 gallons of ethanol then ADM will ad roughly 120 to 160 million gallons of ethanol production a year to its abilities (approx. 1.5 billion gallons after current expansion finished).
Now, since we know that ethanol can be shipped to the US duty-free by using the Carribean Basin agreement and that currently the limits to those import are not even close to being tapped, ADM should be able to funnel this ethanol into the US duty free should it wish. As much talk as there is about “getting rid of the tariff on Brazilian ethanol” it is just that, all talk. The reason is that Brazil is currently decreasing its ethanol exports because it is requiring more for domestic use. Even if the tariff were lifted, it would not result in additional imports.
The bigger news here for shareholders is finally to company seems to have broken into the Brazilian market. Last June I wrote that ADM seemed to be intent on using the strategy that is currently being employed by Dow Chemical (DOW) and would go the JV route rather than just try for an outright purchase in the country. This seems to be happening.
It will require minimum cash outlays by the company ans assuming success, opens up options for other partnerships……win-win.
Disclosure (“none” means no position):Long ADM, Dow
Visit the ValuePlays Bookstore for Great Investing Books
Getting through some past information from the week away..
Dow Chemical (DOW) released earnings last week and while the results were down, the fact that they were remotely as strong as they were speaks volumes as to where we are going.
– Geographies outside of North America posted very strong growth. Europe was up 11%, Asia-Pacific was up 12%, and Latin America was up 5%, including the impact of some of the recent divestitures. Volume growth of 12% in emerging economies, which today represent 27% of Dow sales, Eastern Europe was up 19%, India was up 64%, and the Middle East was up 89%.
– Feedstock and energy costs increased $2.4 billion compared with the same quarter last year, and increased a $1 billion sequentially. These were the highest increases in Dow’s history. In this quarter oil hit $145 a barrel. It has since dropped over $20, yet Dow’s price increases will remain.
– Dow AgroSciences. Following a stellar first quarter, Dow Ag delivered even better results in the second quarter based on their strong product portfolio and robust industry conditions, posting price and volume gains in every geography. Sales of new Ag chem products increased 65% compared with the year ago, with strong growth of these products in North America, Europe, Latin America and Asia-Pacific, while sales of seeds and traits increased almost 40%.
– Dow AgroSciences made two very important announcements in the quarter. First, the business announced it has submitted SmartStax, its new 8 way gene combination for corn, in the U.S. EPA for regulatory review. This marks the critical first step in clearing SmartStax for commercialization. This is a joint venture with Monsanto (MON)
– Share buybacks, another $393 million was used to purchase 9.6 million shares of Dow stock in the second quarter. Since the beginning of 2006, they have spent $3 billion to repurchase approximately 7% of outstanding shares.
– Year-to-date return on capital and return on equity were 13% and 17% respectively
– Operations of K-Dow Petrochemicals will begin in the fourth quarter (Kuwait JV)
Regarding oil prices and it effects oi margins, in the Q&A CEO Andrew Liveris said:
“As you have noted and others have noted, what is really important to us is stability. If we can hover around these ranges now, $120, $130 oil and therefore its associated naphtha equivalents, then frankly that gives all of us a platform to operate from in terms of restoring the margin and then expanding the margins if we can.
Right now, apart from the US, I think we are all seeing great strength around the world that is enabling us to keep price momentum and therefore — we went very close Frank, if you look at how close we came to keeping our margins level despite this unprecedented surge, we did pretty good. And so with the full quarter to work with we have better certainty to get to even or better.”
More on Oil:
Jeffrey Zekauskas – JPMorgan
“Good morning. On average shouldn’t your raw material costs be down sequentially in the third quarter? Natural gas has gone from — I don’t know — $12 to $9 and oil has come from $135 to $125?”
Geoffery E. Merszei – Executive Vice President and Chief Financial Officer; Member of the Board of Directors
“Yeah Jeff, this is Geoffrey here. Just to take oil, Brent crude average price as of this morning, let’s say, $124, $125. At today’s level it is still higher than our average cost during the first quarter. The average cost in the first quarter was around $122. I’m using crude as a reference point. And we are already towards the end of the first month of one-third of the quarter. So if you use an average rate for the third quarter of let’s say around $125, $126 then you are talking about over $0.5 billion additional cost for the company to absorb.”
Share repurchases:
Kevin McCarthy – Banc of America Securities
“Okay and then financial question for Geoffery, if I may. You have been very active in repurchasing shares, including during the second quarter. Given the pending Rohm and Haas deal, should we anticipate an even keel there in the back half of the year, or would you expect activity to diminish?”
Geoffery E. Merszei – Executive Vice President and Chief Financial Officer; Member of the Board of Directors
“I think that — look, for the time being, until we close the K-Dow transaction, I think we’re going to take a little breather from a large buyback. Having said that, we do remain committed to reducing our share count over time. So, there will be a time when we will be back very actively, but we’re going to take a breather for the time being.”
Dow is inching close to the cusp of its transformation. If you read the call you can sense it not only in the executives tone but even in the analysts.
Please visit the blog Prudent speculation who had a nice post on the current price environment vs. cost from the call. I was going to get into it but Prudent does a great job in the post. Please read it here
Disclosure (“none” means no position):Long Dow
Visit the ValuePlays Bookstore for Great Investing Books
Some interesting tidbits in the earnings call.
– AutoNation retailed 73, 500 new vehicles on a same-store basis, down 13%, compared to the period a year ago. But favorable compared to the industry that, according to CNW Research, was off 16% at retail on the quarter. Used vehicle results were favorable relative to new. They retailed just under 50,000 units in the quarter, 4% less compared to a year ago. Inventory at June 30th reflects a new vehicle day supply of 62 days. This represents an increase of seven days compared to a year ago, it reflects the slower sales pace in May and June and compares favorably to the industry at 67 days. Margins are 10 basis points higher than the nearest competitor, and 140 bps higher than the average used-car dealer.
In short, AutoNation is clearly the class of the auto retailing industry.
At June 30th, store count numbered 242, representing 319 franchises and 39 brands in 15 states. In September, AN will open Mercedes-Benz of Del Rey in Del Rey Beach, Florida. This add point brings the Mercedes dealership count to seven in Florida and 14 company-wide.
AutoNation is focused on profitability rather than market share. Market share will take care of itself as US auto makers shrink brands and dealerships in an effort to streamline operations. As AutoNation lessons it reliance on US brands, it’s market share will increase by default. Said Jackson, “we continue to divest underperforming stores to optimize our portfolio. The divestitures are primarily domestic franchise. However, we will retain our high-volume, core domestic franchises. We expect over time that these domestic franchises will constitute about 20% of our new vehicle revenue (29% currently).
Jackson was asked specifically about this on the call:
Rick Nelson – Stephens
“Are you seeing an acceleration in store closings among competitors?”
Mike Jackson
“Yes, on the domestic side, absolutely. And as I said earlier, we have a core group of domestic stores that are great locations with high throughput franchises that as painful as the current environment will be long-term, we will be served well by the shakeout that is going on now.”
This news piggybacks on a previous post regarding the potential gains for AutoNation from domestic automaker’s problems.
It seems that expectations for several holdings, Dow Chemical (DOW), Sherwin Williams (SHW), Citigroup (C) and now AutoNation (AN) were all far worse than reality. With the exception of Citigroup (the jury is still out) they all have top flight management who are deftly steering their respective businesses through unprecedented times. With depressed share prices, better than anticipated results, and visibility clearing, buy opportunities abound.
Disclosure (“none” means no position):Long AN, none
Visit the ValuePlays Bookstore for Great Investing Books
Another fantastic management job at Dow Chemical (DOW) this quarter and more affirmation as to why the Rohm & Haas (ROH) deal went for the price it did and why it is a great purchase.
Results:
Sales for the second quarter set another Company record, rising 23 percent from the same period last year to $16.4 billion. Double-digit price increases were recorded in all operating segments and all geographic areas.
· Volume grew 5 percent, with 12 percent growth in geographic areas outside of North America, including an 11 percent volume increase in Europe.
· Earnings for the quarter were $0.81 per share, compared with earnings per share of $1.07 in the same quarter last year.
· Purchased feedstock and energy costs surged 42 percent, or $2.4 billion, compared with the same quarter last year, the largest year-over-year increase in the Company’s history.
· EBIT(1) in the combined Performance segments rose compared with the same period last year despite substantial increases in raw material and supply chain costs.
· Agricultural Sciences set a new quarterly record for both sales and EBIT. Sales rose 25 percent, and EBIT grew more than 60 percent versus the same period last year.
· Equity earnings were $251 million for the quarter, once again demonstrating consistent contributions from joint ventures to the Company’s results.
In my interview with Andrew Liveris he stated why he was most excited about Dow Ag. Today’s results would show why
The Agricultural Sciences segment posted record sales of $1.4 billion, 25 percent higher than the same period last year. All geographic areas posted double-digit increases in sales, reflecting organic growth and growth from recent acquisitions. Dow AgroSciences’ broad portfolio of both agricultural chemicals and seeds benefited from rising prices and low global inventories of farm commodities. Price was up 12 percent, with strong increases in all geographic areas. Volume was up 13 percent compared with the same period last year, with double-digit increases in North America, Europe, Latin America and Asia Pacific. Ag chemicals showed particular strength. Sales were up sharply for new cereal and rice herbicides, and for spinetoram insecticide, which continued its successful launch in the United States. Seeds and traits continued to benefit from a strong ag economy with global demand for agricultural output at record levels. The recent acquisitions of Agromen, MTI and Duo Maize continue to perform well, and the integration of newly acquired Triumph Seeds is progressing. Second quarter EBIT for Agricultural Sciences was $335 million, compared with $208 million in the year ago period.
For Dow currently it comes down to costs for the remainder of the year. Oil surged in the quarter and the price increases did not take effect until the second half of the quarter. Now that oil has come back and the full price increases are in effect, Q3 will show far better results.
At the end of the year, the commodity business goes to the Kuwaiti’s, the Rohm deal closes and the earnings profile is forever changed. Until then, you can still get shares on the cheap, oh yea, and they pack a 5% yield.
Full release:
Why Rohm & Hass(ROH)? The specialty chemical maker today reported an 8% increase in earnings. Liveris on CNBC (below) confirmed there was a 3-way bidding war for the company and the other finalist was BASF (BASF), who ultimately lacked the financial flexibility Dow now has to finalize a deal.
What is being lost currently is the cost synergies the two companies will now enjoy. Rohm is a major purchaser of Dow materials and Liveris has stated the amount come close to $800 million in annual cost savings. Should we believe it? I think when one considers every other deal he has done has recognized in excess of his stated synergies in a time frame that exceeded his estimates, I think we ought to expect more than the $800 million. In materials like Latex, the combined company with be a behemoth and enjoy added pricing power.
Disclosure (“none” means no position):Long Dow, None
Visit the ValuePlays Bookstore for Great Investing Books
Another fantastic management job at Dow Chemical (DOW) this quarter and more affirmation as to why the Rohm & Haas (ROH) deal went for the price it did and why it is a great purchase.
Results:
Sales for the second quarter set another Company record, rising 23 percent from the same period last year to $16.4 billion. Double-digit price increases were recorded in all operating segments and all geographic areas.
· Volume grew 5 percent, with 12 percent growth in geographic areas outside of North America, including an 11 percent volume increase in Europe.
· Earnings for the quarter were $0.81 per share, compared with earnings per share of $1.07 in the same quarter last year.
· Purchased feedstock and energy costs surged 42 percent, or $2.4 billion, compared with the same quarter last year, the largest year-over-year increase in the Company’s history.
· EBIT(1) in the combined Performance segments rose compared with the same period last year despite substantial increases in raw material and supply chain costs.
· Agricultural Sciences set a new quarterly record for both sales and EBIT. Sales rose 25 percent, and EBIT grew more than 60 percent versus the same period last year.
· Equity earnings were $251 million for the quarter, once again demonstrating consistent contributions from joint ventures to the Company’s results.
In my interview with Andrew Liveris he stated why he was most excited about Dow Ag. Today’s results would show why
The Agricultural Sciences segment posted record sales of $1.4 billion, 25 percent higher than the same period last year. All geographic areas posted double-digit increases in sales, reflecting organic growth and growth from recent acquisitions. Dow AgroSciences’ broad portfolio of both agricultural chemicals and seeds benefited from rising prices and low global inventories of farm commodities. Price was up 12 percent, with strong increases in all geographic areas. Volume was up 13 percent compared with the same period last year, with double-digit increases in North America, Europe, Latin America and Asia Pacific. Ag chemicals showed particular strength. Sales were up sharply for new cereal and rice herbicides, and for spinetoram insecticide, which continued its successful launch in the United States. Seeds and traits continued to benefit from a strong ag economy with global demand for agricultural output at record levels. The recent acquisitions of Agromen, MTI and Duo Maize continue to perform well, and the integration of newly acquired Triumph Seeds is progressing. Second quarter EBIT for Agricultural Sciences was $335 million, compared with $208 million in the year ago period.
For Dow currently it comes down to costs for the remainder of the year. Oil surged in the quarter and the price increases did not take effect until the second half of the quarter. Now that oil has come back and the full price increases are in effect, Q3 will show far better results.
At the end of the year, the commodity business goes to the Kuwaiti’s, the Rohm deal closes and the earnings profile is forever changed. Until then, you can still get shares on the cheap, oh yea, and they pack a 5% yield.
Full release:
Why Rohm & Hass(ROH)? The specialty chemical maker today reported an 8% increase in earnings. Liveris on CNBC (below) confirmed there was a 3-way bidding war for the company and the other finalist was BASF (BASF), who ultimately lacked the financial flexibility Dow now has to finalize a deal.
What is being lost currently is the cost synergies the two companies will now enjoy. Rohm is a major purchaser of Dow materials and Liveris has stated the amount come close to $800 million in annual cost savings. Should we believe it? I think when one considers every other deal he has done has recognized in excess of his stated synergies in a time frame that exceeded his estimates, I think we ought to expect more than the $800 million. In materials like Latex, the combined company with be a behemoth and enjoy added pricing power.
Disclosure (“none” means no position):Long Dow, None
Visit the ValuePlays Bookstore for Great Investing Books
Still on vacation but some things need attention. Read some of Goldman Sachs’ (GS) research report on Sherwin Williams (SHW) today..
“Although the company’s long-term growth potential remains intact, we are cautious that the cost and demand headwinds will continue challenging SHW in the near term: (1) our economists expect existing home sales (key indicator for paint demand) to trough in 1H2009; (2) the overall non- residential market is poised for a downturn as a substantially tighter credit condition and slowing overall activity weigh on the sector; (3) the raw material cost spike will reach a crescendo on SHW’s P&L in 2H2008 and the consolidation among leading paint ingredient suppliers (DOW & ROH)
may exert additional cost pressure on the paint industry; (4) the double blow of demand weakness and cost spikes could limit the success of SHW’s ongoing aggressive price hikes. Therefore, we see meaningful downside risk to SHW’s earnings and share price in the short term.”
So, short term problem but long term, everything ok. Sell???
Isn’t this a textbook case of what Berkshire Hathaway’s (BEK.A) Warren Buffett means when he say “buy fear”?
I mean, things look tough so sell the hell out of it? Ought we not buy it when there are short term problem that do not affect the long term outlook and growth potential? If you are a current shareholder, Goldman is saying that sell you shares even though long term they expect them to be fine because they may dip for the next months.
These “buy” and “sell” ratings really ought to be ignored by anyone who holds securities for more than a month. They are only good for the day they are issued. Anyone remember all the “buy” recommendations on Google as it neared $700 a share?
If not, read here:
Not sure why much if this matters anyway, Dow chemical (DOW) is going to buy Sherwin anyway…
Disclosure (“none” means no position):Long SHW, DOW
Visit the ValuePlays Bookstore for Great Investing Books
Ambac, JP Morgan, Graham, Steve & Barry
– Perhaps the next time Dimon gets involved with a proposed buyout, he’ll make sure the CEO and Chairman know about it?
– I think it would be worth it
Visit the ValuePlays Bookstore for Great Investing Books
Ambac, JP Morgan, Graham, Steve & Barry
– Perhaps the next time Dimon gets involved with a proposed buyout, he’ll make sure the CEO and Chairman know about it?
– I think it would be worth it
Visit the ValuePlays Bookstore for Great Investing Books
Here are the week’s top stories at Value Investing News
During the great bear market of 1974, Warren Buffett was asked by a rather staid fellow how he felt. ‘Like an over-sexed guy in a whorehouse,’ he replied. ‘Now is the time to invest and get rich.’
I’ve had the good fortune of a friend loaning to me Seth Klarman’s Margin of Safety. The following are my notes on the chapter entitled “At the Root of a Value-Investment Philosophy” where Klarman writes about the three central elements to a value-investment philosophy.
Sir John M. Templeton, a Tennessee-born investor and philanthropist who amassed a fortune in global stocks and gave away hundreds of millions of dollars to foster understanding in what he called “spiritual realities,” died on Tuesday in Nassau, the Bahamas, where he had lived for decades. He was 95.
By the end of the year, Time Warner Cable (TWC), will be a stand alone entity after being spun off from Time Warner Inc. (TWX). TWC is a publicly traded company as it currently stands, 84% owned by its parent, Time Warner Inc. The carve-out occured early in 2007, trading between $36-43, but has plummeted down into the $20’s since.
My posts the next few weeks will focus on what I consider to be attractive names in the Financial Sector.
Some may have wondered what is the connection between Dividend and Value Investing. The connection does not necessarily exist in all cases. For example, an investor selecting investments based solely on dividend yield, is not considering the value aspect of the equation.
New way of research. Analysis from an independent side. Both bullish and bearish points reviewed + valuation.
Todd at ValuePlays notifies us that Bruce Berkowitz just filed a 13G/A for his 10.6% stake in Mohawk Industries (MHK).
A look at Templeton’s 10 maxims and how they fit into today’s markets.
This short post by Todd Sullivan includes a video of Warren Buffett and Bill Gates being interviewed on Fox Business. The topic is missed acquisition opportunities.
Fortune lists 40 stocks on which a person can retire. The list includes eight stocks they label as “deep value.”
recently stumbled upon this article from William P. Bengen “DETERMINING WITHDRAWAL RATES USING HISTORICAL DATA”. The basic idea behind this research is that year over year fluctuations in annual returns could drastically change the standard of living of retired individuals, who rely on their investments for income.
Stock Analysis of Eli Lilly and Co. (LLY). The analysis includes a detailed PDF.
Canadian food retailing stocks have gone on sale, says star value manager Gaelen Morphet, first vice-president of Canadian equities at CIBC Global Asset Management.
Detailed Stock Analysis of the Exxon Mobil Corporation (XOM)
Now will people look at Dow?
Barely one day in, the Sun Valley conference has already helped to produce a multibillion-dollar merger deal — but not the kind you might expect. Dow Chemical has agreed to buy Rohm & Haas for $18.8 billion, with a big slug of financing from Warren Buffett, the legendary value investor who recently arrived in Sun Valley.
Investor Shelby Davis of the Clipper Fund used to say that the four most expensive words in investing are: “This time it’s different.”
Visit the ValuePlays Bookstore for Great Investing Books
Here are the week’s top stories at Value Investing News
During the great bear market of 1974, Warren Buffett was asked by a rather staid fellow how he felt. ‘Like an over-sexed guy in a whorehouse,’ he replied. ‘Now is the time to invest and get rich.’
I’ve had the good fortune of a friend loaning to me Seth Klarman’s Margin of Safety. The following are my notes on the chapter entitled “At the Root of a Value-Investment Philosophy” where Klarman writes about the three central elements to a value-investment philosophy.
Sir John M. Templeton, a Tennessee-born investor and philanthropist who amassed a fortune in global stocks and gave away hundreds of millions of dollars to foster understanding in what he called “spiritual realities,” died on Tuesday in Nassau, the Bahamas, where he had lived for decades. He was 95.
By the end of the year, Time Warner Cable (TWC), will be a stand alone entity after being spun off from Time Warner Inc. (TWX). TWC is a publicly traded company as it currently stands, 84% owned by its parent, Time Warner Inc. The carve-out occured early in 2007, trading between $36-43, but has plummeted down into the $20’s since.
My posts the next few weeks will focus on what I consider to be attractive names in the Financial Sector.
Some may have wondered what is the connection between Dividend and Value Investing. The connection does not necessarily exist in all cases. For example, an investor selecting investments based solely on dividend yield, is not considering the value aspect of the equation.
New way of research. Analysis from an independent side. Both bullish and bearish points reviewed + valuation.
Todd at ValuePlays notifies us that Bruce Berkowitz just filed a 13G/A for his 10.6% stake in Mohawk Industries (MHK).
A look at Templeton’s 10 maxims and how they fit into today’s markets.
This short post by Todd Sullivan includes a video of Warren Buffett and Bill Gates being interviewed on Fox Business. The topic is missed acquisition opportunities.
Fortune lists 40 stocks on which a person can retire. The list includes eight stocks they label as “deep value.”
recently stumbled upon this article from William P. Bengen “DETERMINING WITHDRAWAL RATES USING HISTORICAL DATA”. The basic idea behind this research is that year over year fluctuations in annual returns could drastically change the standard of living of retired individuals, who rely on their investments for income.
Stock Analysis of Eli Lilly and Co. (LLY). The analysis includes a detailed PDF.
Canadian food retailing stocks have gone on sale, says star value manager Gaelen Morphet, first vice-president of Canadian equities at CIBC Global Asset Management.
Detailed Stock Analysis of the Exxon Mobil Corporation (XOM)
Now will people look at Dow?
Barely one day in, the Sun Valley conference has already helped to produce a multibillion-dollar merger deal — but not the kind you might expect. Dow Chemical has agreed to buy Rohm & Haas for $18.8 billion, with a big slug of financing from Warren Buffett, the legendary value investor who recently arrived in Sun Valley.
Investor Shelby Davis of the Clipper Fund used to say that the four most expensive words in investing are: “This time it’s different.”
Visit the ValuePlays Bookstore for Great Investing Books
So, after the news of the past couple days, I have added to the position in Dow Chemical (DOW)
At prices averaging $32 even we tripled the position in Dow yesterday and today.
Current yield, 5.25% and rock solid safe. Think about it, Berkshire Hathaway’s (BRK.a) Warren Buffett only got 8.5% on his $3 billion convertible and it is underwater if shares are under $41 and change (28% higher than today) in 5 years ($41 is the conversion price).
Now, Warren’s 8.5% is stagnant. My dividend will grow and I will also gain the additional 28% price appreciation of the shares if they sit at $41 when Warren converts at no gain other than the interest he has received.
Dow has increased the dividend 18% over the past three years. Assuming a consistent growth, three years from now the dividend will be $1.94 for a yield on my investment of 6%. Again given the same growth, I will get $2.17 a share when Warren converts his shares and I will be yielding 6.8% on my initial investment.
The dividend growth enjoyed by shareholders may just turn out to be a conservative growth rate that I am using for comps. The reality may very well be far better than that but is very unlikely to be anything less than the current yield given the company’s history. Even were the dividend to stay flat for 5 years (again, very unlikely scenario), the common at these prices offers superior appreciation prospects.
When you add the 28% share price growth I will get in order for shares to get to $41, right now, common share buyers today are getting a better deal than Warren. He will receive interest totaling a 42.5% over the five years and if the dividend on the common stays the same for 5 five years, I will receive 26.25% plus the 28% appreciation in the shares for a total return of 54.25%. Should the dividend grow as is has, the return on my invested cash goes to 58% plus.
Chances do not come around very often to get a better deal than Warren….grab it.
Disclosure (“none” means no position):Long DOW, None
Visit the ValuePlays Bookstore for Great Investing Books
Upgrades
Bank of the Ozarks (OZRK)- Janney Mntgmy Scott Neutral » Buy
RehabCare (RHB)- Avondale Mkt Perform » Mkt Outperform
OfficeMax (OMX)- Credit Suisse Neutral » Outperform
Corus Entertainment (CJR)- Credit Suisse Neutral » Outperform
Sanderson Farms (SAFM)- BMO Capital Markets Market Perform » Outperform
Canadian Natrl Res (CNQ)- RBC Capital Mkts Sector Perform » Outperform
Elan (ELN)- UBS Sell » Neutral
PetroQuest Energy (PQ)- UBS Neutral » Buy
Calgon Carbon (CCC)- Morgan Joseph Sell » Hold
Norfolk Southern (NSC)- JP Morgan Neutral » Overweight
BP (BP)- HSBC Securities Neutral » Overweight
Downgrades
Interdigital Comm (IDCC)- Hilliard Lyons Buy » Neutral
SuccessFactors (SFSF)- Canaccord Adams Hold » Sell
Columbia Banking (COLB)- DA Davidson Neutral » Underperform
Anworth Mortgage (ANH)- Sterne Agee Buy » Hold
Flow (FLOW)- Northland Securities Outperform » Market Perform
Park National (PRK)- FTN Midwest Neutral » Sell
Global Payment (GPN)- Janney Mntgmy Scott Buy » Neutral
Dow Chemical (DOW)- BB&T Capital Mkts Buy » Hold
Valero Energy (VLO)- Caris & Company Average » Below Average
Hartford Financial (HIG)- Credit Suisse Outperform » Neutral
VeraSun Energy (VSE)- Piper Jaffray Neutral » Sell
Zumiez (ZUMZ)- William Blair Outperform » Mkt Perform
Nexen (NXY)- RBC Capital Mkts Outperform » Sector Perform
Luxottica (LUX)- Deutsche Securities Buy » Hold
Opnext (OPXT)- Merriman Curhan Ford Buy » Neutral
Manpower (MAN)- Banc of America Sec Buy » Neutral
Columbia Banking (COLB)- Keefe Bruyette Outperform » Mkt Perform
Entercom (ETM)- Citigroup Hold » Sell
Cox Radio (CXR)- Citigroup Hold » Sell
Matsushita Elec (MC)- HSBC Securities Overweight » Neutral
Visit the ValuePlays Bookstore for Great Investing Books