Zacks Bull and Bear of the Day Highlights: Sycamore Networks, CONMED Corporation, Satyam Computer Services and Sangamo Biosciences.CHICAGO -- Zacks Equity Research highlights Sycamore Networks (Nasdaq:SCMR SCMR Supply Chain Management Review SCMR Society for Cardiovascular Magnetic Resonance SCMR Software Configuration Management Record SCMR Symmetrical Compact Microstrip Resonator SCMR Service Control Manager Remote ) as the Bull of the Day and CONMED Corporation (Nasdaq:CNMD) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Satyam Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. (NYSE NYSE See: New York Stock Exchange :SAY) and Sangamo Biosciences, Inc. (Nasdaq:SGMO). 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 Sycamore Networks (Nasdaq:SCMR), a leading provider of optical switching equipment. The company announced plans on April 12th to acquire Eastern Research, a subsidiary of Allen Organ. We expect the deal to consummate over the next two quarters, which will provide the company the possibility of recording combined company revenues for FY2007 (beginning July 2006). Cross-selling and no product overlap should make the deal accretive with positive incremental earnings. SCMR continues to maintain one of the strongest balance sheets in the telecom equipment industry. Increased Internet traffic Internet traffic is the flow of data around the Internet. It includes web traffic, which is the amount of that data that is related to the World Wide Web, along with the traffic from other major uses of the Internet, such as electronic mail and peer-to-peer networks. , and fiber-to-the-home initiatives with triple-play (Voice, Video, and Data) offerings proliferating to the consumer market, should translate to additional spending by large carriers as they address higher bandwidth requirements Bandwidth requirements (communications) The channel bandwidths needed to transmit various types of signals, using various processing schemes. Every signal observed in practice can be expressed as a sum (discrete or over a frequency continuum) of sinusoidal . Recent contract wins (U.S. Government and Sprint), along with nearly $966 million (approx. $3.45/sh.) in net cash are compelling reasons for our continued Buy rating. Bear of the Day: Our Bear of the Day is for CONMED Corporation (Nasdaq:CNMD). The company is expected to report first quarter 2006 earnings on April 27th. The company seems to be losing some share in its markets, including powered surgical instruments A surgical instrument is a specially designed tool or device for performing specific actions of carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access or viewing it. . In our opinion, the company should trade in-line with competitors. At roughly an in-line 1.2x P/E/G on 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. with a long-term 11% growth outlook, or 13x 2007 EPS, our target remains at $16.00. Our 2006 and 2007 estimates include an approximate $0.13 in annual stock option compensation expense. Analyst Blog: We expect Satyam Computer Services (NYSE:SAY) to report an in-line fiscal fourth quarter when the company reports its earnings on April 21st. We are concerned about the forward outlook for the company, and the entire outsourcing industry as a whole, as costs are rising and competition for larger deals has heated up. We will be paying close attention to the company's utilization and attrition rates, and would like to see some positive movements in both. We continue to rate shares of SAY a Hold, and are concerned about the intense competition for workers and deals in the industry. Sangamo Biosciences, Inc. (Nasdaq:SGMO) a proprietary gene regulation technology to discover and develop a new class of therapeutic candidates for cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease , cancer, neuropathic pain, and immune diseases such as sickle cell anemia sickle cell anemia n. A chronic, usually fatal inherited form of anemia marked by crescent-shaped red blood cells, occurring almost exclusively in Blacks, and characterized by fever, leg ulcers, jaundice, and episodic pain in the joints. and HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. . We are optimistic about this novel technology and are encouraged to hear that the company intends to bring more drugs into the clinic this year. However, the company's programs are still in an early stage of clinical development, thus creating a sizeable risk. As such, we remain on the sidelines On the sidelines An investor who decides not to invest due to market uncertainty. on the sidelines Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. and rate the shares a Hold. 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 In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , 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 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=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. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. (a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. (b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion