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 Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.