Welcome!

News Feed Item

The Zacks Analyst Blog Highlights:China Southern Airlines, China Petroleum and Chemical, Baidu, Actavis and Forest Laboratories

CHICAGO, April 4, 2014 /PRNewswire/ -- 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 the China Southern Airlines Co. Ltd. (NYSE:ZNH-Free Report), China Petroleum and Chemical Corporation (NYSE:SNP-Free Report), Baidu, Inc. (Nasdaq:BIDU-Free Report), Actavis plc (NYSE:ACT-Free Report) and Forest Laboratories Inc. (NYSE:FRX-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

China Economy and Markets Report

Chinese markets continued their positive run following a rally by property developers who anticipated easing of restrictions by the government. A report in the Shanghai Securities News indicated such regulations would be eased in certain cities.

A fall in industrial profit growth dragged stocks last Thursday while markets moved lower ahead of key manufacturing data on Monday. PMI numbers were indeed disappointing, increasing speculation of government intervention.

Last Week's Developments

A reduction in industrial profit growth and an increase in money market rates dragged stocks lower last Thursday. Consequently, the Shanghai Composite Index experienced its largest loss in a week, losing 0.8% by the close. The index has lost 3.3% till date this year, following concerns that a slowdown will reduce profits and a resumption of IPOs will redirect funds.

Industrial profits increased 9.4% during January and February this year. This was lower than 12.2% growth registered in December. The CSI 300 Index fell 0.7%, with nine of its 10 industrial groups declining. The Hang Seng China Enterprises Index gained 0.3%.  

Stocks returned to their winning ways on Friday after larger profits from banks and automakers dispelled concerns that growth was declining. The Hang Seng China Enterprises Index increased 1.3% to close above 10,000, the first time in nearly six weeks.

The index gained 6.1% over the week, the highest increase since vital reforms were announced in November last year. The Hang Seng moved up 1.1% while the Shanghai Composite Index slipped by 0.2%. The CSI 300 Index declined 0.2% after gains by automakers failed to negate losses by small cap and tech stocks.

Markets and the Economy This Week

Markets took losses on Monday after industrial and consumer discretionary stocks declined ahead of the release of manufacturing data the next day. The Shanghai Composite Index declined for the fourth consecutive day, losing 0.4%.

The Shanghai Composite declined 1.1% last month resulting in a quarterly loss of 3.9%, the largest since June last year. Monthly losses were a result of the collapse of a private developer and fears that a resumption of IPOs will redirect funds. The CSI 300 dipped 0.3%, taking its quarterly loss to 7.9%. The Hang Seng China Enterprises Index increased 0.7% to gain 1.9% over March.

Infrastructure and property related companies rallied on Tuesday, following affirmative government action. The Chinese government has relaxed funding regulations for financial companies and increased the pace of construction projects.

The Shanghai Composite Index gained 0.7% while the Hang Seng China Enterprises Index lost 0.1%, reversing four consecutive days of gains. The CSI 300 Index moved up 0.8%. The Bloomberg China-US Equity Index, a gauge of the most heavily traded Chinese stocks in the U.S. gained for a third consecutive day. This index has now reduced its quarterly decline to 6.5%.

The official Purchasing Managers' Index improved marginally, rising from 50.2 recorded in February to 50.3. This was above the key level of 50, a reading below which indicates contraction. However, the final reading of the HSBC PMI declined from 48.5 in February to 48 in March. This was the lowest figure recorded since July. There are clear indications of weakness in the economy and swift government action is expected.

The property developers rally continued on Wednesday following speculation that the government will ease restrictions on housing. The Shanghai Composite Index gained 0.6% and the CSI 300 Index moved up 0.8%. The Hang Seng China Enterprises Index declined 0.7%.

A report in the Shanghai Securities News said certain Chinese cities were considering relaxing norms on home purchases. Consequently, a measure of developers within the Shanghai index registered a substantial 3.2% increase, the highest among the five industry groups.

Stocks in the News

China Southern Airlines Co. Ltd. (NYSE:ZNH-Free Report)experienced a 24% decline in net profit during 2013. Disappointing results are attributable to intense competition and the current economic situation.  Another reason for such results is the country's large and rapidly expanding high speed railways network.

Operating profit of the largest domestic carrier by fleet size declined 70%. Net profit came in at 1.99 billion yuan ($321 million), significantly lower than last year's figure of 2.62 billion yuan. Revenue declined by 1% to 98.55 billion yuan

China Petroleum and Chemical Corporation (NYSE:SNP-Free Report), also known as Sinopec, has raised $5 billion from the largest issue of dollar-denominated notes made by an Asian issuer in more than 10 years. Sinopec issued notes with maturity periods of three, five and 10 years. 70% of the three years fixed rate notes were purchased by U.S. investors.

In another development, Sinopec intends to start producing from the Yuanba sour gas field in China's south western Sichuan province by the end of 2014. The Chinese oil production giant will use its own technology to tap resources from the Yuanba field.

Baidu, Inc. (Nasdaq:BIDU-Free Report) has successfully argued a U.S. lawsuit filed by pro-democracy activists. The plaintiffs had alleged that censorship by the website at the behest of China's government was in violation of rights as ensured by the First Amendment. However, according to the decision made by U.S. District Court Judge Jesse Furman: "The First Amendment protects Baidu's right to advocate for systems of government other than democracy (in China or elsewhere) just as surely as it protects plaintiffs' rights to advocate for democracy."

Dismissing the lawsuit, Judge Furman said the search engine's "editorial judgment" was comparable to that of a newspaper's editor who takes a call on which articles are to be published. The lawyer for the plaintiffs said his clients will appeal.

Actavis Gets Slight Boost from Silom Acquisition

Actavis plc's (NYSE:ACT-Free Report) shares gained 1.64% immediately after the company announced that it has acquired Thailand-based generic company, Silom Medical Company for approximately $100 million in cash. Although shares were down slightly (0.22%) in the subsequent trading session, overall shares were up 1.42% following the announcement.

With this acquisition, Actavis is now among the top-five players in the Thai generic pharmaceutical market. This acquisition will also help Actavis expand further in the Southeast Asian region. With Silom's diverse product portfolio, Actavis expects this acquisition to be immediately accretive to 2014 earnings.

Our Take

Actavis has been in an acquisition spree of late. Acquisitions over the past two years include that of the Actavis Group in Oct 2012 and Warner Chilcott in Oct 2013.

In Feb 2014, Actavis announced its intention to acquire Forest Laboratories Inc. (NYSE:FRX-Free Report) for a cash and equity combination of $25 billion. This acquisition will help Actavis generate sales of more than $15 billion per year and create a well-diversified portfolio for the company.

The Forest Labs acquisition will push up Actavis' branded products revenues to 50% of total combined revenues from the current level of 30% of the standalone company's revenues. The acquisition will also bring about significant synergies and boost the bottom line. The deal is slated to close in mid-2014.

Meanwhile, Actavis completed the divestiture of its generics commercial operations in certain markets (France, Italy, Spain, Portugal, Belgium, Germany and the Netherlands) in Western Europe to Aurobindo Pharma Ltd.

Actavis carries a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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.

Get the full Report on ZNH - FREE

Get the full Report on SNP - FREE

Get the full Report on BIDU - FREE

Get the full Report on ACT - FREE

Get the full Report on FRX - FREE

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

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.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buyers...
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to m...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration ...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.