Zacks Analyst Blog Highlights: Linear Technology, Arrow Electronics, TOM Online, eBay and China Telecom.CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Linear Technology (Nasdaq: LLTC LLTC Liquid-Liquid Thermal Cycling ), Arrow Electronics Arrow Electronics NYSE: ARW is a Fortune 500 company headquartered in Melville, New York. This company specializes in products and services of electronic components and computer products. (NYSE NYSE See: New York Stock Exchange : ARW ARW Air Refueling Wing ARW Advanced Research Workshop ARW Associated Resume Writers ARW Army Ranger Wing (Irish Special Forces) ARW American Revolutionary War ARW Angle Random Walk ARW Aeroelastic Research Wing ), TOM Online (Nasdaq: TOMO), eBay Inc. (Nasdaq: EBAY) and China Telecom (NYSE: CHA). See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673 Here are highlights from Monday's Analyst Blog: Target $38 on LLTC Linear Technology (Nasdaq: LLTC) is a leading OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and of analog and mixed signal semiconductors. December quarter results missed consensus expectations on the top line, although the bottom line was as expected. Revenue is expected to be down -4% to -7% next quarter. We believe that the company has strong fundamentals, though the temporary uncertainty in end-market demand is exerting pressure on prices. Linear generates strong cash flow, which enables management to expand its R&D capabilities and return cash to shareholders in the form of share repurchases and dividends. This is a good value stock for long-term investors. We are reiterating our Buy rating on LLTC shares. In fiscal year 2006, Linear Technology had sales of $1.1 billion, of which 30% was generated domestically, 38% came from the Asia/Pacific region (ex-Japan), 14% from Japan and 17% from Europe. Linear Technology's largest customer is a distributor, Arrow Electronics (NYSE: ARW), which generated 14% of revenue in fiscal year 2006. No other customer generated more than 10% of sales in 2006. Bookings by application for 2006 were as follows Communications 35% (up 6%), computing 14% (down 4%), consumer 9% (up 8%), industrial 33% (up 14%), automotive 7% (up 40%) and aerospace/defense 3% (up 2%). Linear Technology has one of the most efficient business models in the technology sector. This is reflected in its 70%-plus gross margins, 45-55% operating margins, absence of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and consistent free cash flow. The stability of its margins and free cash flow underscores management's efficient execution. TOMO Trading at Fair Value TOM Online (Nasdaq: TOMO) continues to expect to see depressed levels of business activity in its wireless business. However, we think Tom Online still has good chance to benefit from the potential growth of the wireless internet services in China because of its leading position and balanced WVAS WVAS Wireless Value Added Services WVAS Wabash Valley Astronomical Society (Indiana, USA) WVAS Wabash Valley Astronomical Society WVAS Wake Vortex Advisory System WVAS Welland Valley Art Society (UK) portfolio. Moreover, its joint venture with eBay Inc. (Nasdaq: EBAY) may become another revenue source for TOM Online. Overall, we believe its current stock price has fairly reflected the company's prospects. Thus, we are maintaining our Hold recommendation on TOM Online. Based on our estimate for fiscal year 2007 earnings per share, the stock is trading at 29.9x, which is well below the industry average. However, considering the uncertain negative policy changes from China Telecom (NYSE: CHA) operators and the Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
See: Price/earnings ratio multiple of 31.5x our fiscal year 2007 earnings per share estimate yields a target price of $14.50. See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645 About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis Qualitative Analysis Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. to help investors know what stocks to buy and which to sell for the long-term. Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=2674. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros. |
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