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Zacks Analyst Blog Highlights: Nucor, Dow Chemical, Freeport McMoran, Mobile TeleSystems and VimpelCom


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© Business Wire 2009
2009-10-21 23:09:03 -

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: Nucor (NYSE: NUE : ), Dow Chemical (NYSE: DOW : ), Freeport McMoran (NYSE: FCX : ),

Mobile TeleSystems (NYSE: MBT : ) and VimpelCom (NYSE: VIP : ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: at.zacks.com/?id=4579 :



Here are highlights from Tuesday’s Analyst Blog:



Inflation? What Inflation?

On a year-over-year basis, Crude goods are down 31.5%. However, the year-over-year numbers at the Intermediate -- and especially the Crude -- levels are going to show much slower declines in the next few months.

In October of last year, Intermediate goods prices fell 4.2% while prices for Crude goods tumbled 16.1%. The plunge continued into November, with intermediate prices down 4.8% and crude goods falling 13.1%. This is a key reason why the year over year earnings for firms in the Materials sector, like Nucor (NYSE: NUE : ), Dow Chemical (NYSE: DOW : ) and Freeport McMoran (NYSE: FCX : ) are going to generally look ugly in the third quarter, but will look wonderful in the fourth quarter.

From a broad economic point of view, this just adds to the compelling case for the Fed to keep interest rates low, and possibly even extend its unconventional quantitative easing policies. The danger is a recovery that is lackluster and falters, not that the economy overheats and inflation gets out of control.



MBT Confirms Outlook, Ups CapEx

Russia’s incumbent telecom carrier Mobile TeleSystems (NYSE: MBT : ) released its 2009 outlook yesterday. The company has lifted its capital expenditure (CapEx) guidance to $1.8 billion from $1.5 billion as per the previous guidance.

This increase is primarily due to the expected growth in capital spending in Central Asian markets and appreciation of the ruble against the US dollar. While the revised CapEx for 2009 is lower than $2.2 billion spent in 2008, as a percentage of sales it still remains at 22%.

In contrast, the company’s archrival VimpelCom (NYSE: VIP : ) is expected to spend 12%-15% of sales in 2009.

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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 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.

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About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at at.zacks.com/?id=4580 : .

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