Mosaic Earnings Should Prove Interesting

Mosaic (NYSE: MOS) will report earnings after the close of trading Wednesday, and the report portends to be interesting. Furthermore, the forward outlook is likely to be confused by a confluence of market factors contending against one another and the company.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Mosaic Study

When Mosaic reports its results at the close Wednesday, both its quarterly results and forward outlook may confound investors. The stock already took a hit on its announcement that it would cut its output by as much as 250,000 metric tons through the first quarter of 2012. That decline capped off a poor showing for 2011, with MOS shares handing shareholders a 34% loss in value, after adjustment for dividends. However, since the warning, the shares have recovered, closing Tuesday 4.3% higher. So it would appear that capital allocation and technical factors would like to support the shares if the fundamentals will hold up.

Mosaic President and CEO, Jim Prokopanko, stated within the company’s announcement that "Isolated phosphate market spot prices have become disconnected with the underlying agricultural fundamentals. As dealers and distributors focus on the macroeconomic uncertainty and delay purchases for the North American Spring Season, near term supply of phosphate barges on the Mississippi River has exceeded near-term demand. The current spot prices in this market do not reflect our outlook for the business, nor do we think they are sustainable. In response, we have decided to cut planned production by 250,000 tonnes over the next three months."

My concern is that the production cut was driven by pricing that has been short of the company’s forecasts. It’s clear to me that Mosaic has offered investors insight into the quarter it will report on Wednesday evening and/or the guidance it will provide for the forward quarter. If pricing has been short of forecasts, then Mosaic’s profit margins should also fall short and its earnings might miss the analysts’ consensus view as well. However, Mosaic did not offer new earnings guidance alongside this production warning, stating that its results would fall within its guidance range. That said, there remains risk the company might miss Wall Street’s expectation, unless they have been adjusted.

Company’s management seems to me to be engaged in a dangerous game, splitting hairs on a timeline, managing economic value it expects to create no matter, just at a later date. But in a competitive environment, this may be a game best not played. That issue is debatable, given the price parallel movement in the shares of Potash Corp. of Saskatchewan (NYSE: POT) around the Mosaic announcement. It seems the Mosaic team expects to garner the same sales it expected before announcing the production cut, but at prices it sees worthy.

It’s my view that the uncertainty introduced into the equation is not supportive of near-term stock price revival, though if management does come through and preserve and create economic value as it plans, it would later benefit. As a result of the uncertainty increase, and the technical and capital allocation factors that seem in opposition of the fundamental question, I would not enter into a new position heading into this earnings report despite my general favor of the agriculture sector.

This article should interest investors in agricultural plays Mosaic (NYSE: MOS), Monsanto (NYSE: MON), Potash Corp. of Saskatchewan (NYSE: POT), Intrepid Potash Inc. (NYSE: IPI), Deere (NYSE: DE), Caterpillar (NYSE: CAT) and others.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

magicJack Vocal Tec (Nasdaq: CALL) - The Magic is Back

Shares of magicJack Vocal Tec (Nasdaq: CALL) were among the market’s leading gainers last Friday, on news of strong fourth quarter sales of the company’s latest Internet telephony device. The shares also got extra lift from a second simultaneous announcement, as the company canceled a dilutive share offering. The unexpected sales provided the needed operating capital in the offering’s stead. Shares of CALL were up 18% on the day, placing the company among the market’s leading gainers.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: Nasdaq: ALSK, NYSE: T, Nasdaq: ATNI, NYSE: BCE, NYSE: CTL, NYSE: CHT, NYSE: CBB, Nasdaq: CNSL, Nasdaq: EONC, Nasdaq: EQIX, Nasdaq: FRP, Nasdaq: FTR, Nasdaq: HTCO, OTC: IAGI.PK, Nasdaq: CALL, Nasdaq: SHEN, Nasdaq: SURW, Nasdaq: TWTC, Nasdaq: UNTK, NYSE: VZ, NYSE: VG, Nasdaq: WWVY, Nasdaq: WIN, Nasdaq: AMCX, Nasdaq: ASCMA, NYSE: CVC, Nasdaq: CHTR, Nasdaq: CMCSA, Nasdaq: CRWN, Nasdaq: DTV, Nasdaq: DISCA, Nasdaq: DISH, Nasdaq: LBTYA, Nasdaq: LNET, NYSE: SJR, Nasdaq: TIVO, Nasdaq: VMED.

See my review of the old magicJack

The Magic is Back

It appears the magic may in fact be back for magicJack (Nasdaq: CALL). The company announced Friday that its latest product, the magicJack Plus, is basically selling like hotcakes (whatever that means), with approximately 365K units sold in the last 30 days. The original magicJack device needed to be plugged into a computer connected to the internet to make use of it, but the magicJack Plus connects directly into the internet line. Thus, you do not have to keep your computer on 24/7 to make or receive phone calls. It’s a major upgrade in technology and utility value, and the price is likewise higher, retailing at $69.95, versus the $39.95 price for the original magicJack.

Because of the strong sales, the company expects to have a cash store of approximately $50 million by next month. Thus, it was able to kill its planned share offering. Not only did it do so, but the company will renew its share repurchase program as well. It’s an interesting shift in capital management that I find telling about the management team’s forecasting prowess. That means that both upside and downside surprises are highly possible in the future as well. Such unreliability and uncertainty likely burdens the company’s valuation a bit.

Internet telephony has been an interesting market to follow. We saw Vonage (NYSE: VG) dive after its high profile IPO in the middle of the last decade. However, Vonage’s product price point probably was not or is not far enough off the major telecoms to stick, in my view. VG shares still rose in sympathy with CALL Friday, up 7.3%, to $2.36. Likewise, Skype, now owned by Microsoft (Nasdaq: MSFT), did well enough but never caught on with the broad populace. Perhaps it was just too early or maybe the tech savvy needed to use it was too much for an older demographic of American citizens. It’s clear, though, that with the evolution of technology usage, Internet telephony will be an easy learn. Meanwhile, magicJack just made it easy enough for even non-tech savvy seniors to use.

Eventually, the Verizon’s (NYSE: VZ), AT&T’s (NYSE: T) and Sprint Nextel’s (NYSE: S) of the world will feel threatened by internet telephony and magicJack, if they aren’t already. I’ve noted that the price difference between Verizon’s independent internet service and internet and telephone service bundle is marginal, leaving me to question whether “the jack” would really offer worthwhile savings given the convenience trade-off of the first model. I suspect Verizon and other internet providers have priced this way for this very reason. You can get cheaper internet service from the big boys of the industry, but you get less bandwidth in return. Now this second product model by magicJack presents a different story, and given that the ability to port your old number has finally arrived, the game may be on.

The important question to ask is what strategy will the telecom giants employ to crush this emerging competition. Well, the big box players are well positioned to do so, given that they control the internet. However, I could see the cable providers, who are also providers of bandwidth, like Time Warner Cable (NYSE: TWC), Cablevision (NYSE: CVC) and Comcast (Nasdaq: CMCSA) having interest in acquiring a magicJack in order to provide a more competitive bundle package against the telecom players’ offerings. Thus, the new magicJack might be more than just a nifty product for a thrifty spender. Its shares and those of similar servicers might find broad appeal one way or another. Given that a recent census poll showed about half of America is poor, and given the number appears to be increasing, even the worst case scenario seems to present an expanding market opportunity.

There’s just one analyst following the company, based on Yahoo Finance data. His EPS estimate for 2012 appears to be $1.83, which puts its P/E ratio at 13.1X as of Friday. While EPS growth looks to approximate 71% in 2012, the long-term growth estimate is 17.5%, again based on Yahoo Finance and its data providers. Based on this thumbnail, the stock would appear undervalued. The question is, can Internet telephony, and more importantly, the MagicJack, really replace standard telephone service? It once seemed unlikely, but there certainly is a market of bargain seekers willing to try it out, and that market is expanding as economic difficulties continue. Meanwhile, the technology just got easier to operate.

I suspect there is untapped value in recurring revenue not currently being maximized. Today, you buy the magicJack and have telephone service all year long, and then are asked to pay the same amount the following year to continue using the service (though the company stretches that revenue across the year). I suspect that an acquirer would create value by raising the monthly charge tied to magicJack usage through the year. So, while lowering the revenue received currently through telephone service provision, they could also add value to the acquired service and position more competitively against the big three telecom providers. I see this as a clear opportunity for the cable industry, but bad news for the savvy consumer now benefiting from his "jack".

The stock’s chart seemed to show market disinterest until volume picked up in 2010. The cure for questions is earnings growth, and earnings visibility is a new development here. As earnings grow now, and with a P/E near single digits, there would be little stopping the share price following earnings per share higher. The company managed to sell 8 million of its original magicJacks® into a market of roughly 100 million households. This newest product is far superior and the economics more attractive. Its appeal can reach a broader span of Americans, in my view. So, I am a short to medium term fan of magicJack shares (Nasdaq: CALL) and recommend them for aggressive, emerging growth and micro to small cap portfolios.

Editor’s Note: This article should interest investors in Alaska Communications Systems Group (Nasdaq: ALSK), AT&T (NYSE: T), Atlantic Tele-Network (Nasdaq: ATNI), BCE Inc. (NYSE: BCE), CenturyLink (NYSE: CTL), Chunghwa Telecom (NYSE: CHT), Cincinnati Bell (NYSE: CBB), Consolidated Communications (Nasdaq: CNSL), eOn Communications (Nasdaq: EONC), Equinix (Nasdaq: EQIX), FairPoint Communications (Nasdaq: FRP), Frontier Communications (Nasdaq: FTR), Hickory Tech (Nasdaq: HTCO), IA Global (OTC: IAGI.PK), magicJack VocalTec (Nasdaq: CALL), Shenandoah Telecommunications (Nasdaq: SHEN), SureWest Communications (Nasdaq: SURW), tw telecom (Nasdaq: TWTC), UniTek Global Services (Nasdaq: UNTK), Verizon (NYSE: VZ), Vonage (NYSE: VG), Warwick Valley Telephone (Nasdaq: WWVY), Windstream Corp. (Nasdaq: WIN), AMC Networks (Nasdaq: AMCX), Ascent Media (Nasdaq: ASCMA), Cablevision (NYSE: CVC), Charter Communications (Nasdaq: CHTR), Comcast (Nasdaq: CMCSA), Crown Media (Nasdaq: CRWN), DIRECTV (Nasdaq: DTV), Discovery Communications (Nasdaq: DISCA), DISH Network (Nasdaq: DISH), Liberty Global (Nasdaq: LBTYA), LodgeNet Interactive (Nasdaq: LNET), Shaw Communications (NYSE: SJR), TiVo (Nasdaq: TIVO) and Virgin Media (Nasdaq: VMED).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

eBay a Short-Term Sell and Long-Term Buy

Shares of eBay (Nasdaq: EBAY) fell roughly 5% after hours Wednesday, following the company’s third quarter results. eBay’s earnings per share were in line with the analysts’ consensus forecast. However, just meeting expectations is not good enough for a company that has a consistent record of beating the Street. Yahoo Finance indicates eBay exceeded expectations for at least the last four consecutive quarters heading into Q3. Furthermore, the company’s guidance for the coming quarter and the full year were not impressive when compared with the consensus of analysts’ views for the shares. Thus, eBay (Nasdaq: EBAY) joins Apple (Nasdaq: AAPL), IBM (NYSE: IBM), VMware (NYSE: VMW) and Cree (Nasdaq: CREE) in resetting investor expectations and equity valuations.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers include: Nasdaq: AAPL, Nasdaq: CREE, NYSE: IBM, NYSE: VMW, NYSE: ATV, Nasdaq: AMZN, OTC: ARIS.OB, Nasdaq: BIDZ, Nasdaq: DLIA, Nasdaq: DANG, Nasdaq: EBAY, Nasdaq: GAIA, Nasdaq: IACI, Nasdaq: LINTA, Nasdaq: OSTK, Nasdaq: PCCC, Nasdaq: STMP, Nasdaq: VVTV and Nasdaq: VITC.

eBay a Short-Term Sell and Long-Term Buy

eBay beat the Street on the top line, making $2.97 billion against expectations for $2.91 billion, based on Factset data. eBay reported a 32% increase in revenue against the prior year quarter, attributing its growth to each of its business segments. However, investments made to assimilate acquisitions and market the brand, and some difficulty with the learning curve on mobile business led it to only earn the $0.48 per share (on a non-GAAP basis) that analysts were looking for. According to Yahoo Finance, over the last four quarters, eBay beat estimates by between 2% and 11%. Thus, expectations for the same were likely built into the company’s valuation, and so were squeezed out of it on Wednesday evening. However, by 8:00 PM ET, and after the conference call concluded, the stock had mitigated its decline to minus 4%.

The company’s Payments business generated a 32% net revenue increase, to $1.107 billion. Within Payments, its merchant services business grew sharply in Q3, with net total payment volume rising 36%. eBay’s signature Marketplaces operations generated a 17% net revenue rise, to $1.653 billion. Within this segment, its international gross merchandise volume exceeded the rate of growth in domestic volume, growing 18% to $9.078 billion. The company’s GSI business, the operations just acquired in Q2, generated $203 million in net revenue.

A key problem with the quarter, as far as investors indicated Wednesday evening, was the contraction of the operating margin. Also, it looks as though the margin will hold stubbornly lower than the comparable period through Q4 as well. eBay’s net operating margin was squeezed to 25.3% on a non-GAAP basis in Q3, from 28.7% last year. Executives on the call attributed the contraction to acquisitions, including of GSI, and to business mix. Increasing business via mobile phones played at a higher cost than was expected to be the case. As the company moves up the learning curve, according to executives on the conference call, things should improve. The effective tax rate was also unfavorable against the prior year comparison, but the company’s executives focused their discussion on costs, and assurances of expected improvement over coming quarters. eBay also experienced a higher effective tax rate and completed its share repurchase program in the quarter.

When it came to guidance, eBay raised its outlook, but it seems not enough to satisfy investors. The company guided for a Q4 revenue range of between $3.2 billion and $3.35 billion, but the average of the two points was a bit short of the analysts’ consensus, which according to Yahoo Finance, sits at $3.3 billion. Also, the company’s fourth quarter EPS forecast for between $0.55 to $0.58 matches poorly against the consensus estimate for $0.58. eBay’s full year 2011 revenue forecast for between $11.5 billion and $11.6 billion sits well against the analysts’ consensus estimate for $11.51 billion. However, the company’s EPS forecast range of between $1.98 and $2.01, which is a penny higher than previously forecast, only encompasses the analysts’ consensus view for $2.00. Again, investors were likely looking for more.

Given eBay’s risk tied to the euro and its questionable forecast for an okay holiday season, which is certainly at risk, there appears to be good enough reason to temper short-term enthusiasm for the shares. However, eBay’s Paypal expansion to point of sale, with a beta test at play with one major retailer this Q4, could set this company’s growth into a higher gear in the next few years. According to Yahoo Finance, the company’s P/E/G ratio sits at 1.4, with growth forecast at 12.1% over the next five years. Thus, it seems to me that its trading range should not vary much in the near-term, with downside cushioned by its potential for greater long-term growth and its upside burdened by current issues. Therefore, while I’m cautious over the short-term, based on cost pressures, macroeconomic risks, and what I see as deteriorating broader market sentiment, I would put eBay in a category of names to look up again on weakness based on its opportunity in the emerging blockbuster point of sale business. Therefore, a hold rating would be in order for this stock today for most investors, and depending on your patience and investment style, I would label it a short-term avoid (weak sell) and long-term accumulate (weak buy).

This article should interest investors in Catalog and Mail Order House stocks including Acorn International (NYSE: ATV), Amazon.com (Nasdaq: AMZN), ARI Network Services (OTC: ARIS.OB), Bidz.com (Nasdaq: BIDZ), dELiA’s (Nasdaq: DLIA), E-Commerce China Dangdang (Nasdaq: DANG), eBay (Nasdaq: EBAY), Gaiam (Nasdaq: GAIA), IAC/ InterActiveCorp (Nasdaq: IACI), Liberty Interactive (Nasdaq: LINTA), Overstock.com (Nasdaq: OSTK), PC Connection (Nasdaq: PCCC), Stamps.com (Nasdaq: STMP), ValueVision Media (Nasdaq: VVTV) and Vitacost.com (Nasdaq: VITC).

The day's EPS reports came from American Express (NYSE: AXP), Xilinx (Nasdaq: XLNX), Abbott Laboratories (NYSE: ABT), Wynn Resorts (Nasdaq: WYNN), St. Jude Medical (NYSE: STJ) and U.S. Bancorp (NYSE: USB). Also look for news from 8X8 (Nasdaq: EGHT), Access National (Nasdaq: ANCX), Amphenol (NYSE: APH), AMR (NYSE: AMR), Amylin Pharmaceuticals (Nasdaq: AMLN), Apollo Group (Nasdaq: APOL), Astoria Fin’l (NYSE: AF), ATMI (Nasdaq: ATMI), Bank of New York Mellon (NYSE: BK), Banner (Nasdaq: BANR), BlackRock (NYSE: BLK), Buffalo Wild Wings (Nasdaq: BWLD), Cardinal Fin’l (Nasdaq: CFNL), Cathay General Bancorp (Nasdaq: CATY), Central Valley Community (Nasdaq: CVCY), Cheesecake Factory (Nasdaq: CAKE), Cirrus Logic (Nasdaq: CRUS), Cohen & Steers (NYSE: CNS), Cohu (Nasdaq: COHU), Comerica (NYSE: CMA), Community Trust Bancorp (Nasdaq: CTBI), Core Laboratories (NYSE: CLB), Covanta (NYSE: CVA), Cubist Pharmaceuticals (Nasdaq: CBST), CVB Financial (Nasdaq: CVBF), CYS Investments (NYSE: CYS), Datalink (Nasdaq: DTLK), DiamondRock Hospitality (NYSE: DRH), E*Trade Fin’l (Nasdaq: ETFC), East West Bancorp (Nasdaq: EWBC), eBay (Nasdaq: EBAY), Edwards Lifesciences (NYSE: EW), Exponent (Nasdaq: EXPO), F.N.B. Corp. (NYSE: FNB), Fidelity National Financial (NYSE: FNF), First Cash Financial (Nasdaq: FCFS), Forward Air (Nasdaq: FWRD), Freeport-McMoRan Copper & Gold (NYSE: FCX), Greenhill (NYSE: GHL), Gulfmark Offshore (NYSE: GLF), Heritage Crystal Clean (Nasdaq: HCCI), IDEX (NYSE: IEX), iParty (AMEX: IPT), Kinder Morgan Energy Partners (NYSE: KMP), Kinder Morgan Management (NYSE: KMR), Knight Capital (NYSE: KCG), Knoll (NYSE: KNL), Lam Research (Nasdaq: LRCX), LaSalle Hotel Properties (NYSE: LHO), Lufkin (Nasdaq: LUFK), M&T Bank (NYSE: MTB), Mastech (NYSE: MHH), Media General (NYSE: MEG), MKS Instruments (Nasdaq: MKSI), Morgan Stanley (NYSE: MS), New York Community Bancorp (NYSE: NYB), Noble (NYSE: NE), Northern Trust (Nasdaq: NTRS), NVE Corp (Nasdaq: NVEC), Piper Jaffray (NYSE: PJC), PNC Fin’l (NYSE: PNC), Polycom (Nasdaq: PLCM), Popular (Nasdaq: BPOP), Raymond James (NYSE: RJF), Riverbed Technology (Nasdaq: RVBD), Rockwood Holdings (NYSE: ROC), S.Y. Bancorp (Nasdaq: SYBT), SEI Investments (Nasdaq: SEIC), Select Comfort (Nasdaq: SCSS), Sensata Technologies (NYSE: ST), SLM (NYSE: SLM), Spartan Stores (Nasdaq: SPTN), Stepan (NYSE: SCL), Stryker (NYSE: SYK), Supervalu (NYSE: SVU), Swift Transportation (Nasdaq: SWFT), Temple Inland (NYSE: TIN), Texas Capital Bancshares (Nasdaq: TCBI), Textron (NYSE: TXT), Tractor Supply (Nasdaq: TSCO), Travelers (NYSE: TRV), Umpqua (Nasdaq: UMPQ), United Technologies (NYSE: UTX), Virginia Commerce (Nasdaq: VCBI), West Corp. (Nasdaq: WSTC), Westamerica Bancorp (Nasdaq: WABC), Westell Technologies (Nasdaq: WSTL), Western Digital (NYSE: WDC), Westwood Holdings (NYSE: WHG), WNS Holdings (NYSE: WNS) and Zhone Technologies (Nasdaq: ZHNE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

IntriCon (NasdaqGM: IIN) - Greatest Gainer Stocks

Monday’s greatest stock gainers were led by First Trust Strategic High (NYSE: FHY) and IntriCon (Nasdaq: IIN), which soared 189% and 35% respectively. First Trust Strategic High incurred a 1 for 3 reverse stock split as part of its reorganization, so we focus our article here on the greatest gainer benefiting from a fundamental driver other than merger or acquisition or non-operating factor. In this case, it’s IntriCon (NasdaqGM: IIN) and its important new business won on Monday.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

IntriCon (NasdaqGM: IIN)

IntriCon soared 35% Monday on news that it had been chosen to be the original equipment manufacturer (OEM) of hearing aids for hi HealthInnovations, a UnitedHealth Group (NYSE: UNH) business. IntriCon specializes in the manufacture and distribution of miniature and micro-miniature body worn devices. Its products serve medical health purposes, hearing and professional audio communications, including for security personnel.

This specific deal was effected because of IntriCon’s low-cost hearing aid. hi HealthInnovations indicated that research shows 75% of people who can benefit from hearing aids do not use them due to their high cost. The company indicates the market size at 36 million Americans. And while these hearing aids are lower costing, they are (according to the parties involved) high performing. The specific devices in this deal involve IIN’s new APT Open-in-the-canal (ITC) hearing aid platform. IntriCon employs nanotechnology in its products, thus offering tiny, ascetically pleasing products that use little power. The company will be producing in Indonesia by the end of 2011, keeping costs controlled and barring any quality control or other complications during start up.

The stock dropped this past summer after reporting results that compared poorly against the prior year quarter, and sales were down. Even as it near simultaneously gained FDA approval for a health monitoring device, the shares plunged. This latest win seems counter to the company’s intention to fatten margins through proprietary sales, but it also should significantly help top line volume, thus appeasing recent concerns. The stock was up a dollar Monday on the news, to a $4 level that looks to have technical significance.

It’s hard to say what impact this business win will have upon the company’s results in detail, given the little information provided by the company, no readily available analyst research, and without spending significantly more time researching the company. It does appear to be part of an intermediate strategy that will help the company restore profitability in 2012, and so the $4 price reached Monday seems secure to me, with upside likely, especially with any new positive wins. Higher costs on successful R&D efforts weighed on profitability over the recent past, and so it looks as though IIN is positioned to reap some reward now, based on this brief study. Also, the company’s production facility in Indonesia should aid in gross margin expansion as well in coming quarters, again, barring any missteps. As an analyst, I could not offer a buy recommendation on the shares based on the amount research done to this point, but I can say that I have a favorable opinion based on what I know now, and that I believe Monday’s price gain will hold.

This article was produced in two hours time. If you would like us to take a closer look at this company or any company for you, we can do that upon request and produce a report at our planned stock research site, where we will direct you upon conclusion of our work. However, to support such targeted research, either now or later, produced by a seasoned analyst with a significant track record, we think compensation is fair and worthwhile. A $200 donation is suggested for a synopsis encompassing one day’s study or $1000 for a detailed research report encompassing about a week’s work. Obviously, you get what you pay for, and the higher costing report will carry a higher degree of confidence in its predictive value. At this future research site, we will also offer access to all our research, which will not be directed by subscribers for the most part, but by us, for a monthly or yearly subscription fee.

Stock Gainers	Percent Change
First Trust Strategic High (NYSE: FHY)	+189%
IntriCon (NasdaqGM: IIN)	+35%
Pacific Gas & Electric 4.36 (AMEX: PCG-PI)	+27%
Pharmaceutical Product Development (Nasdaq: PPDI)	+26%
Meade Instruments (NasdaqCM: MEAD)	+16%
Oak Valley Bancorp (NasdaqCM: OVLY)	+16%
Global-Tech Advanced Innovation (NasdaqGM: GAI)	+16%
The Medicines Co. (NasdaqGS: MDCO)	+12%
57th Street General Acquisition (NasdaqCM: CRMB)	+11%
Emergent Biosolutions (NYSE: EBS)	+11%
Old Second Bancorp (NasdaqGS: OSBCP)	+8.6%
Valley Financial (NasdaqCM: VYFC)	+8.3%
Acura Pharmaceuticals (NasdaqCM: ACUR)	+7.9%
Orckit Communications (NasdaqGM: ORCT)	+7.7%
TF Financial (NasdaqGM: THRD)	+7.4%
Stewardship Financial (NasdaqCM: SSFN)	+7.4%
Newport Bancorp (NasdaqGM: NFSB)	+7.4%
EntreMed (NasdaqCM: ENMD)	+7.2%
ClickSoftware Technologies (NasdaqGS: CKSW)	+6.9%
Grupo Aeroportuario del Centro (NasdaqGS: OMAB)	+6.8%
Bioanalytical Systems (NasdaqCM: BASI)	+6.7%
Pointer Telocation (NasdaqCM: PNTR)	+6.6%
Hadera Paper (AMEX: AID)	+6.4%
Roberts Realty Investors (AMEX: RPI)	+6.4%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Stock Research 09-22-11

Thursday’s stock research highlights moves by Standpoint Research to upgrade a group of names on what looks like pure valuation reasoning given the market slide. The research firm upgraded six names in total, including stocks from various sectors. There were more upgrades than downgrades overall, which I found a bit surprising. It’s been my feeling that at some point there would be capitulation by brokers, as their economists and sector strategists cut the economic outlook, and as that information feeds through to stock analysts. Some firms allow more freedom than others in this regard, and so analysts act autonomously and sometimes inconsistently to their economic and strategic gurus.

Stock Research

UPGRADES

Company	Analyst	From	To
Camden Property (NYSE: CPT)	FBR	Mkt. Perform	Outperform
FedEx (NYSE: FDX)	StandPoint	Hold	Buy
Full Circle Capital (Nasdaq: FULL)	Ladenburg Thal	Neutral	Buy
Lockheed Martin (NYSE: LMT)	Standpoint	Hold	Buy
MetroPCS (NYSE: PCS)	Standpoint	Hold	Buy
Netflix (Nasdaq: NFLX)	Wedbush	Underperform	Outperform
Netflix (Nasdaq: NFLX)	UBS	Sell	Neutral
Prosperity Banc. (Nasdaq: PRSP)	Standpoint	Hold	Buy
Saneamento Basico (NYSE: SBS)	Standpoint	Hold	Buy
Sunpower (Nasdaq: SPWRA)	Kaufman Bros	Sell	Hold
Susquehanna Bank (Nasdaq:SUSQ)	Boenning Scatt	Neutral	Outperform
Tempur-Pedic (NYSE: TPX)	Standpoint	Hold	Buy
Yahoo (Nasdaq: YHOO)	Stifel Nicolaus	Hold	Buy

DOWNGRADES

Company	Analyst	From	To
Comtech Telecom (Nasdaq: CMTL)	Needham	Buy	Hold
Goodrich (NYSE: GR)	FBR	Outperform	Mkt. Perform
Magellan Midstream (NYSE: MMP)	Morgan Keegan	Outperform	Mkt. Perform
Under Armour (NYSE: UA)	Needham	Buy	Hold
Urban Outfitters (Nasdaq: URBN)	Wedbush	Neutral	Underperform

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.