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
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, 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. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
SYS-CON Events announced today that Enzu 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Interoute 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. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, 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. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...