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Zacks Analyst Blog Highlights: TOM Online, China Mobile, Reinsurance Group of America and H&R Block.


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: TOM Online (Nasdaq: TOMO), China Mobile (NYSE NYSE

See: New York Stock Exchange
: CHL CHL crown-heel length. ), Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract.  Group of America (NYSE: RGA RGA Reinsurance Group of America
RGA Return Goods Authorization
RGA Republican Governors Association
RGA Residual Gas Analyzer
RGA Royal Garrison Artillery
RGA Restricted Growth Association (UK)
RGA Rate Gyro Assembly
) and H&R Block (NYSE: HRB HRB H&R Block, Inc.
HRB Harbin, China (Airport Code)
HRB Human Resources Branch (Canada)
HRB Haiti International Airline (ICAO code)
HRB Human Rights Bureau
).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Wednesday's Analyst Blog:

Downgrade for TOM Online

TOM Online's (Nasdaq: TOMO) second quarter revenues were driven by both wireless internet services and online advertising, while its gross margin continued to decline. Overall, 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.

However, we are pessimistic on its wireless business in the near future due to the policy changes of China Mobile (NYSE: CHL). Overall, we believe its current stock price fairly reflects Tom Online's future prospects. Thus, we are lowering our recommendation to a Hold on TOM Online.

RGA with Upside

Reinsurance Group of America (NYSE: RGA) is benefiting from shrinking capacity in the U.S. life reinsurance market, after several large companies recently left the market and from rapidly growing overseas operations. Moreover, mortality experience in the company's mainstay U.S. operations has generally improved; despite being mildly unfavorable in 2Q06 it was favorable to inline in the previous three quarters, after being unfavorable for five.

This recent string of unfavorable mortality has created investor skepticism over RGA's pricing and, we believe, is depressing the stock's valuation well below its peers' multiples. In our view, improvement will provide a near-term catalyst to upside in the stock.

Sell Maintained on H&R Block

We maintain our Sell rating for H&R Block (NYSE: HRB). First quarter earnings were negatively impacted by the deteriorating mortgage business, while competition remains intense in the tax business. Until we see evidence that the mortgage business has stabilized, we expect limited upside movement in the share price.

Over the last five years, the Years, The

the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]

See : Time
 shares of H&R Block have traded within a range of 10x and 20x forward twelve-month earnings. Given near term issues, we expect the stock to continue to trade near the low end of this historical trading range Historical trading range

The range of price over which a security or a commodity has traded since listing on a exchange.


historical trading range

The highest and lowest prices at which a security has traded since going public.
. As such, our six-month target price of $18.00 is based on approximately 11x our 2007 earnings estimate.

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.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Sep 7, 2006
Words:655
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