Zacks Bull and Bear of the Day Highlights: Bayer A.G., Chemtura, Zumiez and Kookmin Bank.CHICAGO -- Zacks Equity Research highlights Bayer A.G. (NYSE NYSE See: New York Stock Exchange :BAY) as the Bull of the Day and Chemtura Corporation Chemtura Corporation (NYSE: CEM) is a marketer of specialty chemicals, polymer products and processing equipment for a variety of industries. The company formed in 2005 from the merger of two other corporations -- Great Lakes Chemical Corporation of West Lafayette, Indiana, (NYSE:CEM CEM contagious equine metritis. CEM selective medium chocolate agar made with Eugon agar and 5% horse blood; used to cultivate Taylorella equigenitalis. ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Zumiez (Nasdaq:ZUMZ) and Kookmin Bank Kookmin Bank (hangul:국민은행) is the largest bank by both asset value and market capitalization in South Korea. The bank is led by Kang Chung-Won who previously worked for Seoulbank and oversaw its sale to competitor Hana Bank before moving to (NYSE:KB). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676. Here is a synopsis of all four stocks: Bull of the Day: Our Bull of the Day recommendation is for Bayer A.G. (NYSE:BAY). We expect Bayer to report a solid fourth quarter on March 15th, 2007. The growth in the third quarter was fueled by solid performance of the company's healthcare division, and we expect that to continue in the fourth quarter. BAY can finally start integrating Schering, which may hinder short-term profitability but should help fuel its long-term growth. The Materials Science materials science Study of the properties of solid materials and how those properties are determined by the material's composition and structure, both macroscopic and microscopic. division continues to post solid growth, despite weakness in its margins caused by raw material costs. We continue to rate shares of BAY a Buy, and have raised our price target to $64.50 over the next six months. Bear of the Day: Our Bear of the Day recommendation is for Chemtura Corporation (NYSE:CEM). Chemtura was formed by the merger of Crompton Corporation Crompton Corporation, formerly Crompton and Knowles, is a chemical research, production, sales and distribution company headquartered in Middlebury, Connecticut. The company produces specialty chemicals used for polymers, fire suppressants and retardants, pool and spa water and Great Lakes Chemical Corporation Great Lakes Chemical Corporation is a chemical research, production, sales and distribution company that produces specialty chemicals used for polymers, fire suppressants and retardants, pool and spa water purification systems and various other applications. . The merged entity faces integration risk. The company also is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a price/raw material squeeze. Additionally, aggressive pricing of some business has resulted in lost market share. The company also has huge unfunded pension obligations and a variable rate debt, which in turn reflects negatively on the company's financial strength. This leads us to rate the stock a Sell with a six-month target price of $10.50. Analyst Blog: Zumiez (Nasdaq:ZUMZ) reported fourth quarter sales of $111.5 million, up 49% year-over-year, with comp-store sales growth of 13%. These results were ahead of our estimates and show that Zumiez's holiday season was stronger than expected. We remain fans of Zumiez stores and the company's long-term growth potential. Still, ZUMZ shares are trading at 39.3 times our 2007 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. [earnings per share] estimate, and we think the shares have gotten ahead of the company's fundamentals. We maintain our Hold rating and will continue to look for a better entry price before becoming more positive on the stock. We recently reduced our recommendation on Kookmin Bank (NYSE:KB) to Hold from Buy as the shares exceeded our $85 target price. Our new target price is $90. KB reported fourth quarter earnings well below our estimate, primarily reflecting a government-mandated increase in loan loss provisions that caused provisions to surge 78% year over year. We are reducing our 2007 EPADS EPADS Earnings Per Average Diluted Share [earnings per American Depositary Receipt American Depositary Receipt (ADR) Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. ] estimate to $9.26 from $9.50. Improved asset quality and operating efficiency should drive earnings over the next couple of years. KB's agreement with Lone Star to buy Korea Exchange Bank Oehwan Bank or Korea Exchange Bank (KEB) (KSE: 004940) is South Korea's only exchange bank company. It is headquartered in Seoul, and was established in 1967. ended in late November. While KB increased its payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. to 50% this year, resulting in a $3.85 dividend, it should revert to 30% in the future. Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2649. About the Bull and Bear of the Day Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months. About the Analyst Blog Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets. 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 this free newsletter today by visiting http://at.zacks.com/?id=2677. 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 by going to http://at.zacks.com/?id=2650. 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These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. |
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