|By PR Newswire||
|August 29, 2014 09:30 AM EDT||
CHICAGO, Aug. 29, 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 Petroleum and Chemical Corp. (NYSE:SNP-Free Report), Qihoo 360 (NYSE:QIHU-Free Report), Cninsure Inc. (Nasdaq:CISG-Free Report), Yingli Green Energy Holding Company Limited (NYSE:YGE-Free Report) and Trina Solar Limited (NYSE:TSL-Free Report).
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 Stock Roundup
Stocks suffered a disappointing week following the commencement of 10 new IPOs. Fears surrounding credit growth led to shares taking losses on Monday. Small cap stocks led losses on Tuesday, as fears over new share sales gathered strength.
Technology and auto stocks led gains on Wednesday, following three successive days of losses. Today, the benchmark index slumped to its lowest level since Aug 8 as six companies began marketing new shares. China Petroleum and Chemical Corp. (NYSE:SNP-Free Report), or Sinopec's first-half 2014 net income increased while Qihoo 360's (NYSE:QIHU-Free Report) second-quarter 2014 earnings missed estimates.
Last Week's Developments
Stocks gained last Friday, with the Shanghai Composite completing a sixth consecutive week of gains. This is the longest series of gains since Mar 2012. Gains were led by power, media and household appliance stocks. China is contemplating extending subsidies on energy-saving appliances. Both the Shanghai Composite Index and CSI 300 increased 0.5%. The Hang Seng China Enterprises Index gained 1.1%. The Bloomberg China-US Equity Index gained 0.2%.
The benchmark index gained 0.6% over the week and had gained 12% at that point since mid-March. Speculation increased that state-owned companies will move toward mixed ownership in the days ahead. Additionally, the possibility that a stock-trading link between the Shanghai and Hong Kong exchanges would increase fund inflows gave rise to optimism. These factors combined to propel stocks higher.
Markets and the Economy This Week
The Shanghai Composite Index slipped 0.5% on Monday, marking its largest loss since Aug 14. Fears that new bank lending was failing to pick up negated gains in airline stocks. According to a report in the China Business Journal, a consortium of airport, airlines companies and certain funds have created a civil aviation investment fund. In its first phase, the fund plans to raise 20 billion yuan.
However, loan data released this month had fuelled investor concerns that China will fail to meet its growth target without further monetary easing. The CSI 300 dropped 1% while the Hang Seng China Enterprises Index gained 0.5%. The H-share index was propelled higher by a 4.3% increase in Sinopec's stock after the refiner reported profits. The Bloomberg China-US Equity Index gained 1%.
Stocks declined once again on Tuesday with small-cap stocks leading losses. The decline was the largest in two weeks, following concerns that IPOs may lure funds away from older stocks. The Shanghai Composite Index declined 1%, recording its largest loss since Aug 7. The ChiNext fell 2.3% ahead of the launch of new IPOs from 10 companies this week. Analysts were of the opinion that the economic situation was a cause for concern. Additionally, new share sales will place a strain on market liquidity.
This is because such IPOs have gained 94% on an average over their issue price this year. This is seven times more than the global average and strikes a stark contrast with low demand for existing shares. This would result in the market taking a breather and looking to consolidate for a while. The CSI 300 lost 0.8%. The Hang Seng China Enterprises Index gained 0.1%. The Bloomberg China-US Equity Index gained 0.2%.
Gains in technology and auto stocks helped markets move up on Wednesday after three days of losses. These gains negated concerns arising out of new share sales. Auto stocks gained following reports that China may provide $16 billion in funds to create more facilities to charge electric cars. Meanwhile, Apple suppliers are preparing to produce the largest ever iPad. The Shanghai Composite Index increased 0.1% after Wednesday's decline.
Analysts took the view that markets would face pressure this week as IPOs lured funds away from existing stocks. They reiterated the view that markets were undergoing a correction and would experience minor rebounds in this phase. The CSI 300 gained 0.2% while the Hang Seng China Enterprises Index dipped 0.5%. The Bloomberg China-US Equity Index declined 0.2%.
The Shanghai Composite Index slipped 0.6% on Thursday to close at its lowest level since Aug 8. The one day repurchase rate on the Shanghai Stock Exchange shot up by 45%, triggered by fears that IPOs will lure funds away from older shares. Six companies began selling new shares starting today. According to the Shanghai Securities News, the 10 IPOs taken together will account for $130 billion.
The CSI 300 declined 0.7% while the ChiNext lost 1.2%. A sub-index of materials stocks within the CSI 300 lost 1.3%, the largest among the 10 industry groups. Chinese real estate firms took losses in Hong Kong. These losses were triggered by fears that they will be unable to achieve annual sales targets. The Hang Seng China Enterprises Index slumped, losing 1.3%.
Stocks in the News
China Petroleum and Chemical Corporation, also known as Sinopec, reported first-half 2014 net income of 32.54 billion yuan (US$5.30 billion), up 7.5% from the prior-year quarter. Earnings per share of 0.277 yuan ($3.55 per ADS) rose 12.6% year over year. This was mainly due to rise in crude oil and gas production. Revenues in the first half of 2014 fell 4.2% to 1,356.17 billion yuan (US$220.78 billion).
During the six-month period ending Jun 30, 2014, Sinopec's crude oil production grew 7.5% year over year to 177.88 million barrels, while natural gas volumes rose 9.5% to 354.8 billion cubic feet. Domestic crude oil production edged up 0.3% year over year to 154.15 million barrels, while overseas volumes increased 101.4% year over year to 23.73 million barrels.
Total oil and gas production rose 8.0% to 237.01 million barrels of oil equivalent.
Qihoo 360 reported second-quarter 2014 earnings per ADS of 30 cents, missing the Zacks Consensus Estimate of 33 cents due to higher operating expenses. Earnings per ADS include the interest expense of convertible senior notes and share-based compensation expenses.
Qihoo's total revenue was $317.9 million, up 19.9% sequentially and 109.6% year over year. Reported revenues were above management's expected range of $300 to $305 million and beat the Zacks Consensus Estimate of $295 million.
Continued momentum in both online advertising and Internet value-added services boosted results. Additionally, better-than-expected ramp-up in search and mobile monetization aided revenue growth.
Online advertising revenues were $171.3 million, up 22.3% sequentially and 89% from the year-ago quarter. Internet value-added service revenues were $146.2 million, up 17.2% sequentially and a significant 140% year over year.
Non-GAAP net income attributable to Qihoo 360 was $43.45 million or 30 cents per ADS, compared with $49.1 million or 37 cents in the prior quarter.
For the third quarter of 2014, Qihoo expects revenues between $360 million and $365 million, representing an increase of 92–94% year over year and 13–15% sequentially.
Cninsure Inc. (Nasdaq:CISG-Free Report) posted net income of 18 cents per share in the second quarter 2014, which surpassed the Zacks Consensus Estimate by 80% and significantly improved from the year-ago net income of 7 cents per share.
Cninsure generated total revenue of $82 million in the reported quarter, marking year-over-year growth of 19.5%. This was driven by solid growth across all the business segments with insurance brokerage business and claims adjusting business being the major contributors.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) reported in the second quarter was $7.3 million, up 55% year over year. Adjusted EBITDA margin rose 210 basis points to 8.9%.
Interest income increased 6.1% year over year to $3.5 million in the quarter, driven by increase in other receivables.
Cninsure projects third-quarter 2014 total net revenue to increase 15% year over year.
Yingli Green Energy Holding Company Limited (NYSE:YGE-Free Report), or Yingli Solar, reported an operating loss of 25 cents per American Depositary Share (ADS) or RMB 1.58 per ordinary share in the second quarter 2014 compared with a loss of 33 cents per ADS (RMB 2.05) in the year-ago quarter.
Yingli Solar's loss per share in the reported quarter was wider than the Zacks Consensus Estimate of a loss of 17 cents. As a result, the shares shed nearly 5% to close at $3.38 yesterday.
Total net revenues were $ 549.5 million (RMB 3,408.9 million), down a marginal 0.2% to $550.4 million (RMB 3,378.3 million) in the second quarter of 2013. The decline was due to lower contribution from the PV modules segment. Yingli Solar's revenue also fell short of the Zacks Consensus Estimate of $567 million.
Yingli Solar revised its 2014 shipment volumes downwards expecting lower solar panel demand worldwide. The company now expects PV shipment volumes in the range of 3.6GW to 3.8GW (including 400–600MW shipment for PV systems) for 2014, down from the previous expectation of 4.0GW to 4.2GW (including 400–600MW shipment for PV systems).
Trina Solar Limited (NYSE:TSL-Free Report) reported second-quarter 2014 earnings of 14 cents per diluted ADS, in line with the Zacks Consensus Estimate. Net quarterly income came in at $10.3 million, compared to year-ago net loss of $33.7 million. Revenues increased 18% to $519 million, compared to the Zacks Consensus Estimate of $582 million.
During the quarter, Trina Solar accrued foreign exchange gains of $3.3 million. Solar module shipments increased from first quarter numbers of 558 megawatts to 943.3 megawatts in the second quarter. Gross margin increased from 11.6% to 15.4%. The company had cash, cash equivalents and restricted gas of $562.7 million, as of Jun 30, 2014.
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.
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.
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.
Zacks Investment Research
800-767-3771 ext. 9339
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.
SOURCE Zacks Investment Research, Inc.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Mar. 27, 2017 05:00 AM EDT Reads: 6,129
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Mar. 27, 2017 05:00 AM EDT Reads: 11,021
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 27, 2017 04:00 AM EDT Reads: 998
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Mar. 27, 2017 03:45 AM EDT Reads: 2,943
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Mar. 27, 2017 03:15 AM EDT Reads: 3,133
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Mar. 27, 2017 03:00 AM EDT Reads: 2,963
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, 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. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
Mar. 27, 2017 02:15 AM EDT Reads: 4,135
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
Mar. 27, 2017 01:45 AM EDT Reads: 2,953
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 27, 2017 01:45 AM EDT Reads: 2,893
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 27, 2017 01:15 AM EDT Reads: 1,841
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.
Mar. 27, 2017 12:45 AM EDT Reads: 2,081
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 27, 2017 12:30 AM EDT Reads: 834
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
Mar. 27, 2017 12:00 AM EDT Reads: 3,332
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Mar. 26, 2017 09:45 PM EDT Reads: 7,611
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Mar. 26, 2017 09:45 PM EDT Reads: 2,048