For Immediate Release
Chicago, IL – May 22, 2012 – Zacks
Equity Research highlights Pool Corporation (POOL)
as the Bull of the Day and ArcelorMittal (MT) as
the Bear of the Day. In addition, Zacks Equity Research provides
analysis on Woori Finance Holdings Co. Ltd. (WF),
Bank of America Corporation (BAC) and
Citigroup Inc. (C).
Full analysis of all these stocks
is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five
stocks:
Bull of the
Day:
Pool Corporation's
(POOL) first-quarter 2012 earnings outperformed the Zacks Consensus
Estimate. The company is a recognized leader in the industry. The
potential for market growth is significant and cost-containment
initiatives augur well for the business.
Pool's results reflect continued
growth in its once-struggling green business. Amid a tough business
environment in terms of weak growth in new pool constructions and
faltering consumer confidence, Pool's revenue has been marching
ahead and exhibits strong earnings power. The upcoming quarter is
also seasonally strong.
The company expects the market condition to improve beyond 2012 as
well. The company is focused on bolstering shareholder returns by
share buybacks and dividend hikes. Hence, we rate the stock
Outperform.
Bear of the Day:
We are maintaining our Underperform
recommendation on ArcelorMittal (MT) following our
assessment of its first-quarter 2012 results. Earnings missed the
Zacks Consensus Estimate while revenues beat the forecast.
The company's net debt climbed by
roughly $1.1 billion in the quarter. ArcelorMittal also reduced its
growth outlook for steel and announced a few divestments including
the sale of its steel foundation distribution business to Nucor
Corporation. These divestments are a part of the company's strategy
to dispose its non-core assets, a move which it expects to continue
in the second quarter.
ArcelorMittal remains affected by the challenging economic
conditions in Europe. It is also exposed to volatility in steel
pricing and tough competition. Our long-term Underperform
recommendation on the stock indicates that it will perform below
the broader market. Our price target of $13 is based on 6.5x our
fiscal 2012 earnings estimate.
Latest Posts on the Zacks Analyst
Blog:
BofA Entangled in
Another Lawsuit
South Korea-based Woori Bank, a unit of Woori Finance
Holdings Co. Ltd. (WF), sued Merrill Lynch unit of
Bank of America Corporation (BAC). Woori's
complaint accuses the investment bank of creating and selling seven
collateralized debt obligations (CDOs) that were made up of
residential mortgage-backed securities in 2005 and 2006.
CDOs typically repackage bonds and
other assets into new securities. These are not traded on a public
exchange, and hence allow the firms like BofA to generate fees by
brokering deals between buyers and sellers. However, CDOs have
performed dismally since these were invested in securities
comprising sub-prime mortgages, which are known to have
larger-than-average risk of defaulting in the market. Eventually,
the market downturn shattered the investment banker’s expectations
and led to huge losses for the common investors.
Woori alleged that Merrill issued
misleading statements and omissions related to the mortgage-backed
securities and also concealed the risks associated with the
securities. The company claims that the documents used in offering
these securities contained untrue statements or omissions regarding
the risks involved in these investments. These misrepresentations
of the risks provoked investments, which virtually have no value at
current levels.
Woori has filed the lawsuit in the
New York State Supreme Court in Manhattan. The company demands for
damages worth $143 million along with other penal charges.
Recently, the U.S. District Judge
in Manhattan approved BofA’s $315 million settlement with investors
related to the Public Employees' Retirement System of Mississippi
pension fund. The settlement was made to compensate the investors
as BofA misled these investors by giving them deceptive information
on risks associated with mortgage-backed securities issued by its
Merrill Lynch unit.
BofA denied all the charges made
against it. However, Merrill Lynch, which was purchased by the
investment bank in 2009, averred that the losses faced by the
investors were attributable to the downturn in economy and housing
bubble.
Last week, Citigroup
Inc. (C) also faced similar legal charges made by Woori
Bank. The complaint lodged claims that Citi misrepresented
documents as an underwriter in the sale of CDOs and residential
mortgage-backed securities, which turned Woori’s $95 million
investment, made during 2006 and 2007, into loss.
Numerous lawsuits alleging BofA of
such wrongdoings would surely dent its reputation and financials.
However, we believe that the investors, who have lost their
hard-earned money in such investments, should feel relieved.
Shares of BofA currently retain a
Zacks #3 Rank, which translates into a short-term Hold
rating.Considering the fundamentals, we also maintain a long-term
Neutral recommendation on the stock.
Get the full analysis of all these
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 to help investors
know what stocks to buy and which to sell for the long-term.
Continuous analyst 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=7158.
About Zacks
Zacks.com is a property of Zacks
Investment Research, Inc., which was formed in 1978 by Leonard
Zacks. As a PhD from MIT 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 at
http://at.zacks.com/?id=4582.
Visit
http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Follow us on Twitter:
http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
POOL CORP (POOL): Free Stock Analysis Report
WOORI FIN-ADR (WF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Ott 2023 a Ott 2024