Investopedia: MetLife Seems Seriously Underestimated

Even accepting that the credit crunch and recession changed a lot of views on just how strong even the best financial institutions actually are, it seems like MetLife (NYSE:MET) still carries too much doubt and skepticism with it. Granted, regulatory burden and low interest rates are certainly near-term challenges, but patient investors could reap outsized gains if and when MetLife can return to more normal performance.

Pretty Solid Fourth Quarter Results  
MetLife delivered a good end to the fiscal year. At the bottom-most of bottom lines, operating earnings came in at $1.31; not only up 15% from last year, but comfortably ahead of an average expectation of 1.24.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/MetLife-Seems-Seriously-Underestimated--MET-PRU-GNW-SLF0216.aspx

Investopedia: Can Arch Capital Keep Pulling Rabbits Out Of Its Hat?

Years of superior performance have established quite a reputation for the management of Arch Capital (Nasdaq:ACGL). In good times and bad, this seems to be one of the best-run Bermuda-based insurance companies. The question investors have to ask, though, is whether there is enough leeway in the present valuation to really make this one of the best-performing stocks out there over the coming year or two.

Fourth Quarter Results  
Arch Capital reported that gross written premiums rose more than 5% for the fourth quarter, with particular strength (up 17%) in reinsurance. Net written premium growth was a little stronger, coming in at nearly 6%, while net investment income was down 11%.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Can-Arch-Capital-Keep-Pulling-Rabbits-Out-Of-Its-Hat-ACGL-ACE-AXS-ENH0216.aspx

Investopedia: Weight Watchers - Yo-Yo Performance And Debt Gluttony

The combination of an asset-light business model and a strong brand can be tremendously powerful, and Weight Watchers (NYSE:WTW) clearly has the sort of returns on capital that bespeak a quality business. Unfortunately, operational stability has proven elusive and the company's decision to launch a large buyback is going to stretch an already stressed balance sheet even further. (For related reading, see A Breakdown Of Stock Buybacks.) 

A Slightly Soft Fourth Quarter  
Although Weight Watchers' reported fourth quarter results were OK, they were not as strong as the sell-side projected. Sales grew almost 13%, but were a a bit shy of expectations despite being around a 60% jump in online revenue. Total paid weeks did climb nearly 34%, though, and North America's meeting revenue rose about 8%.

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http://stocks.investopedia.com/stock-analysis/2012/Weight-Watchers--Yo-Yo-Performance-And-Debt-Gluttony-WTW-NTRI-MED-ABT0216.aspx

Investopedia: Can EnergySolutions Drive Value From Scarce Assets?

Usually, scarcity means value in the equity markets. Unfortunately, anything relating to the nuclear power sector in the U.S. is colored with risk and uncertainty, and small engineering services firm EnergySolutions (NYSE:ES) has had trouble leveraging its expertise and assets in nuclear decommissioning. Although budgets and schedules are likely to remain uncertain for the foreseeable future, it would seem that the valuation on this stock has factored in quite a lot of bad news already.

Ahead of Schedule and Under Budget  
The biggest project at present for EnergySolutions is the decommissioning of Exelon's (NYSE:EXC) Zion plant. Although there were fears that the early margins on this project would be weak, overall results have not been bad at all so far. More to the point, as of early 2012, it looks like this project is on target or better, and the company is working to renegotiate a cumbersome letter of credit. (For related reading, see Analyzing Operating Margins.)

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http://stocks.investopedia.com/stock-analysis/2012/Can-EnergySolutions-Drive-Value-From-Scarce-Assets-ES-EXC-FLR-GE-SHAW0215.aspx

Seeking Alpha: Quest Software - So Far, So-So

Investing in low-growth value-priced software stocks is a little like digging for gold with a Nerf shovel - you can get there eventually, but it's going to take a lot of patience. Clearly Wall Street did not care for the earnings report of Quest Software (QSFT), nor the new of an unexpected change in CEO, but underlying results were not so bad and patience could yet pay off for investors.

Fourth-Quarter Results Mostly Better Than They Seem
Quest reported that revenue rose about 13%, more or less meeting the average analyst guess. License revenue was a little soft, growing 8% on a reported basis, but growing not at all on an organic basis and missing the average estimate. Service revenue was a little better with 18% reported growth and 6% organic growth, but the beat versus expectations was modest.

Read the full piece here:
Quest Software - So Far, So-So

Seeking Alpha: Trying To Reconcile Deere's Double-Digit Growth With Peaking Demand

Deere (DE) is certainly not an ordinary heavy machinery company. Farmers tend to be loyal to brands and Deere has one of the most valuable brands in the world, let alone just in farm machinery. The trouble with Deere as a stock, though, is trying to balance out what is clearly a strong North American market with the past cyclicality of this business and industry.

A Few Hiccups In The Start To The Year
On balance Deere had a solid start to its fiscal year, but there were a couple of details that concern me as they relate to growth expectations. Total revenue rose 11% for the quarter and equipment revenue rose by a like amount - giving the company a better start to the year than expected.


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Trying To Reconcile Deere's Double-Digit Growth With Peaking Demand

Seeking Alpha: With New Management, Teva Seeks To Reclaim Past Glories

To the credit of Teva Pharmaceuticals' (TEVA) board, if you underperform in the top spot there, you will be replaced. Recent years have seen the company struggle to deliver the sort of performance that shareholders had come to expect, and missteps in manufacturing and clinical development didn't help matters. Now the company has a new CEO, strong generic candidates, a growing branded business, and perhaps a chance to regain past esteem.

A Fairly Solid Q4
Teva's fourth quarter results were solid, if not radically ahead of expectations. Revenue rose about 29% as reported, with the inclusion of Cephalon adding a significant amount of revenue growth. Revenue from generic drugs and ingredients rose 12% overall, but were down 5% in the U.S. Branded drug sales rose 68% as reported or about 25% on an organic basis, with Teva's key multiple sclerosis drug Copaxone up 11%.


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With New Management, Teva Seeks To Reclaim Past Glories

Investopedia: Legal Unknowns Cloud Lender Processing Services Outlook

The fallout of the housing bubble and crash is still sorting out, but it looks like we're now at the point where regulators are going hunting for trophies to display to their still-angry voting constituents. While major banks continue to seek settlements for their part in the wrong-doing, Lender Processing Services (NYSE:LPS) is also finding itself in the crosshairs. Although this company's strong data and service offerings is likely to survive this mess on an operational basis, the legal liabilities and regulatory uncertainties could well weigh on the shares for some time to come.

Underlying Business Conditions Are Tough  
Absent some charges and adjustments, it was pretty clear from LPS's fourth quarter that operating conditions are still difficult. Revenue was down 14% this quarter, as transactions services revenue plunged 21% on lower default and loan facilitation service revenue. The company's data and analytics business fared reasonably well, though, and saw roughly 5% growth.

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http://stocks.investopedia.com/stock-analysis/2012/Legal-Unknowns-Cloud-Lender-Processing-Services-Outlook-LPS-FISV-CLGX-FAF0215.aspx

Investopedia: Apache Still Cheap Enough To Pay

Despite a long-term record that should place it among the best-run energy companies, Apache (NYSE:APA) is more often criticized for whatever it isn't than what it is has always been. Apache is never the company to play when oil is hot, nor is it the company to play when natural gas is the place to be. Apache is never the name to consider when a particular play or geology is in the news.

What Apache is, though, is a company with an enviable record of cash generation and per-barrel margins and a company with a record of producing excellent economic returns in place where others fear to tread. Apache's balance and diversification means it will never be the hottest name in the sector, but the value here is such that investors who want a dependable play on oil and gas should take a serious look.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Apache-Still-Cheap-Enough-To-Pay-APA-XOM-DVN-CHK0215.aspx

Seeking Alpha: Gen-Probe Looking To New Launches To Drive Momentum

Even for somebody like me who spent the better part of a decade as a sell-side med-tech analyst, the diagnostics industry is often a muddle. While large established players like Abbott Labs (ABT), Danaher (DHR), and Roche (RHHBY.PK) look to change with the times and hang on to lucrative market share, up-and-comers like
Cepheid (CPHD) and Gen-Probe (GPRO) look to shake up the market and drive significant growth through major advances in testing technology.

With a new testing platform on the way and an expanding menu of tests, Gen-Probe may be looking at capturing some real share over the next couple of years. At the same time, valuation leaves little room for mistakes.

Closing Out The Year With A Shrug
Gen-Probe's fiscal fourth quarter earnings were pretty much mediocre. Revenue growth of about 16% was a bit light, with generally better-than-expected performance in blood screening (up almost 31%) offsetting the clinical diagnostics business (up 13%).

Please read more here:
Gen-Probe Looking To New Launches To Drive Momentum

Investopedia: Value At Abbott Labs Balances A Lot Of Growth Optimism

If the management at Abbott Labs (NYSE:ABT) was hoping that its decision to split the company in two (basically spinning off the pharmaceutical business) would generate buzz and enthusiasm around the company, it seems that they succeeded. Whereas most analysts are skeptical about the ability for large drug and device companies to produce meaningful long-term growth, it seems like most sell-side analysts are happy to assume a good growth runway for this large (and generally conservative) med-tech conglomerate.

Q4 Results May Hint At Some of the Challenges 

When Abbott reported earnings a few weeks ago, the results got a generally positive reception. Although sales were a bit light (roughly 4% growth), margins were quite good. Revenue was light relative to expectations across the board, as Humira and stent sales were slightly disappointing, but analysts didn't seem to care much, since margins were strong (leading to a one-cent earnings beat) and guidance was positive. (For related reading, see A Primer On The Biotech Sector.)

Read the full article at this link:
http://stocks.investopedia.com/stock-analysis/2012/Value-At-Abbott-Labs-Balances-A-Lot-Of-Growth-Optimism-ABT-PFE-AZN-NBIX0214.aspx

Investopedia: Dunkin' Brands Definitely A Hot Cup Of Coffee

Quick service restaurants (QSRs) are hot today, but the stock of Dunkin' Brands (Nasdaq:DNKN) hasn't enjoyed as much of that love. While owners of McDonald's (NYSE:MCD), Yum! Brands (NYSE:YUM), Panera (Nasdaq:PNRA) and Starbucks (Nasdaq:SBUX) have all racked up double-digit gains over the past year, Dunkin' has been an under-performer.

The trouble for Dunkin' stock right now seems to be the trade-off between quality and value. There are a lot of things to like about the business model at Dunkin' Brands, but working off a demanding valuation may keep a lid on outperformance for a little while yet.

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http://stocks.investopedia.com/stock-analysis/2012/Dunkin-Brands-Definitely-A-Hot-Cup-Of-Coffee-DNKN-MCD-PNRA-SBUX0214.aspx

Seeking Alpha: Alexion Pharmaceuticals A Tricky Mix Of Biotech And Pharma

Alexion (ALXN) has done what so few biotechs ever manage to do. Not only has the company successfully developed a drug, it has stayed independent and achieved profitability on its own. Now the company is in that tricky area grey area between biotech and pharma, an area that can be dangerous to valuations and new investors.

Soliris A Powerful Engine
The Alexion story today is all about Soliris, the company's drug for paroxysmal noctural hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). PNH and aHUS are uncommon diseases, but like Genzyme (before it was acquired by Sanofi (SNY)), Alexion has built a lucrative franchise around a unique drug that commands incredible pricing. 

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Alexion Pharmaceuticals: A Tricky Mix Of Biotech And Pharma

Investopedia: Another Day, Another Deal For Oracle

If growth through acquisition is supposed to be bad (as some academic types suggest), Oracle (Nasdaq:ORCL) CEO Larry Ellison very clearly doesn't care. Less than half a year after the $1.5 billion acquisition of RightNow, Oracle is at it again with the acquisition of cloud-based HR specialist Taleo (Nasdaq:TLEO). 

The Deal   
Taleo certainly cut to the chase in its PR announcement (titled "Oracle Buys Taleo"). The companies have reached an agreement on a deal that will see Oracle buy Taleo for $1.9 billion in cash. That values Taleo at $46 per share, or about an 18% premium to the prior day's close.

http://stocks.investopedia.com/stock-analysis/2012/Another-Day-Another-Deal-For-Oracle-ORCL-TLEO-SFSF-SAP-KNXA0213.aspx

Seeking Alpha: Zimmer Is A Pure Play On A (Presently) Rotten Market

Waiting for a recovery in the orthopedics industry has been about as entertaining as watching paint dry, without the benefit of enjoying the fumes. Although it is certainly true that there are millions of Americans walking around on old knees and hips, and the number of 65+ year-old customers is on the increase, the reality is that a broadly favorable demographic push means nothing over the scale of a few years.

That makes Zimmer (ZMH) a tricky stock to assess. It certainly seems cheap relative to its likely future free cash flows, but the company's intense (70%-plus) exposure to hip and knee reconstruction is keeping a lid on enthusiasm in there here and now.

Read the full piece here:
Zimmer Is A Pure Play On A (Presently) Rotten Market

Investopedia: Emerson Is Better Than It Looks

Industrial stocks certainly have their ups and downs as the economy goes through its cycles, but proven names like Danaher (NYSE:DHR), Illinois Tool Works (NYSE:ITW) and Emerson (NYSE:EMR) don't often trade at attractive multiples. With investors worried about Emerson's industrial automation and network power businesses, skeptical of its ability to recoup sales lost to a natural disaster, and generally bothered by any company with heavy exposure to Europe and/or China, now may be the time to fight the tide and consider these shares.

A Bad Quarter Was Expected, but This Was a Little Worse Still  
Emerson warned the Street that this was not going to be a good quarter, and results were still a little shy of even those lowered expectations. Revenue fell 4% on an organic basis, as both network power and climate saw 10% declines in reported sales. Tools revenue was up slightly, but this is a tiny business. Industrial automation was a modest 2%, while process management was down a reported 1%.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Emerson-Is-Better-Than-It-Looks--EMR-ABB-ROK-HON-SI-UTX-TYC0210.aspx

Investopedia: PepsiCo Needs To Go Further

An eye on the future is all well and good, but Wall Street will pay relatively little for it if they fear that near-term execution will suffer as a result. Although PepsiCo's (NYSE:PEP) decisions in recent years to prioritize healthier foods may make sense in a world increasingly hostile to sodas and salty snacks, the fact remains that many analysts and investors are much more concerned about the the pace of share erosion today. Although PepsiCo's restructuring efforts announced with fourth quarter earnings are logical, there's a real risk that it's too little, too late.


Q4 On Target 
PepsiCo didn't deliver too many surprises for the fourth quarter. Revenue rose 11% as reported and slightly surpassed the averaged analyst estimate. Real growth was more on the order of around 9%, though, as an extra week and foreign exchange both impacted reported results.


To read the full piece, please click below:
http://stocks.investopedia.com/stock-analysis/2012/PepsiCo-Needs-To-Go-Further-PEP-KO-KFT-K-COT0213.aspx

Investopedia: Cisco Sees Better Margins, Small Growth

The challenge for Cisco (Nasdaq:CSCO) these days is pretty clear - show the Street that it can not only improve its margins, but also reignite growth and reclaim market share that it has lost to emerging competitors over recent years. Judging by the company's fiscal second quarter results, it looks like the company is making solid progress on the first goal, but has a ways to go on the others.

Better Than Expected Results for Fiscal Q2
Cisco did reasonably well relative to expectations for the second quarter. Revenue rose 11% from last year and 2% from the prior quarter to over $11.5 billion - beating the average analyst guess by a couple of percentage points.

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http://stocks.investopedia.com/stock-analysis/2012/Cisco-Sees-Better-Margins-Small-Growth-CSCO-JNPR-HPQ-FFIV-RVBD0213.aspx

Investopedia: Genesee & Wyoming An Uncommon Growth Story

Genesee & Wyoming (NYSE:GWR) is certainly not a regular rail story. Unlike Class 1 railroads like Union Pacific (NYSE:UNP) or Norfolk Southern (NYSE:NSC), acquisitions are a significant part of the growth story and foreign operations are key to the company's future. Also, unlike many rails, investors are willing to pay a pretty hefty multiple to own this railroad.

A Mixed End to 2011  
Genesee & Wyoming's earnings for the fourth quarter were relatively mixed. Revenue was pretty good, as reported revenue rose 24% and "same rail" revenue climbed 8%. Although carload volume was modest, yield was up nicely.

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http://stocks.investopedia.com/stock-analysis/2012/Genesee--Wyoming-An-Uncommon-Growth-Story-GWR-UNP-NSC-BHP0213.aspx

Investopedia: Can Diageo Keep The Party Going?

Right now is a pretty good time to have a global business with valued brands and pricing power. Recent years have proven that demand for spirits is not as inelastic as once conjectured, but Diageo (NYSE:DEO) has nevertheless been a popular stock in a nervous market. Curiously, even as the investors in 2012 have shown more interest in risky names, Diageo has maintained its momentum. The question for investors is how much room is left in this run.

A Strong Fiscal First Half  
So far, so good when it comes to Diageo's relatively ambitious targets for 2012. Organic revenue grew 7% for the first half and while the quarter-by-quarter performance was a little unbalanced (almost twice as much growth in the first quarter), underlying growth was consistent in both. As was the case for Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP), 3% volume growth seems like the magic number this quarter.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Can-Diageo-Keep-The-Party-Going--DEO-KO-BUD-BEAM0213.aspx

Seeking Alpha: Hope Springs Eternal At Ingersoll-Rand

By and large, sell-side analysts can be a vengeful lot. Companies that make them look bad by over-promising and under-delivering often get stuffed into the penalty box and forced to do penance for a time. That doesn't seem to be the case with Ingersoll-Rand (IR), though, as this company enjoys a surprising amount of sell-side support - at least surprising relative to the company's performance in recent years. (See earnings call transcript.)

A Pretty Mediocre End To The Year
Ingersoll-Rand announced that reported revenue fell more than 5% in the fourth quarter, though organic/"core" revenue was actually up slightly (on the order of 1-2%). Even still, the company did come up a little short.

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Hope Springs Eternal At Ingersoll-Rand

Investopedia: Glatfelter Worth A Closer Look

Investors who are familiar with my writing know that I love companies that look like they should be just commodity companies, but actually have fairly interesting businesses under their roofs. Glatfelter (NYSE:GLT) is a good example - while this company still is largely a paper company, it has also worked hard to diversify and reinvest cash flow into higher-growth markets. Although the stock is not tremendously cheap today, it definitely merits a spot on investor watchlists. 

More Progress in the Fourth Quarter  

Glatfelter is covered by just one sell-side analyst (Mark Wilde at Deutsche Bank), so discussions of financial performance relative to expectations have to be taken with more than just a grain of salt. That said, revenue growth of over 4% was fairly solid relative to its addressable markets.

 

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Glatfelter-Worth-A-Closer-Look-GLT-PG-IP-UFS0210.aspx

Investopedia: PMC-Sierra May Have More Growth In Store

It probably sounds like a double-whammy to consider a stock that is exposed to both the semiconductor cycle and the enterprise/carrier spending cycle as well. For better or worse, that's the situation for PMC-Sierra (Nasdaq:PMCS) as the veteran semiconductor company continues to leverage itself to emerging growth opportunities in storage and cloud computing while balancing out its legacy businesses in optical networking and wireless infrastructure.

Another Chip Company with Tough Q4 Numbers 

It's not exactly challenging to find semiconductor companies that had some weak spots in their December quarter reports. Consequently, PMCS is not exactly in rare company with a quarterly report that was just a little light.

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http://stocks.investopedia.com/stock-analysis/2012/PMC-Sierra-May-Have-More-Growth-In-Store-PMCS-LSI-IBM-BRCM-QCOM-MRVL-DELL0209.aspx

Investopedia: Sysco Not Exactly Feasting

It's a little scary when even some of the most efficient operators have difficulties cutting their costs enough to keep growing. That would seem to be the case today with Sysco (NYSE:SYY). It seems odd to read analysts criticizing Sysco's cost structure, but the reality is that growth has become more challenging for this proven dividend champion.


Costs Chewing into Profits
Sysco posted revenue growth of over 9%, but that number is a little misleading. Two-thirds of the company's growth was a byproduct of food cost inflation and actual case volume growth was more on the order of 3% with real organic growth closer to 2%. (For related reading, see What You Should Know About Inflation.)

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http://stocks.investopedia.com/stock-analysis/2012/Sysco-Not-Exactly-Feasting-SYY-UNFI-SVU-TSN-MCD0209.aspx

Investopedia: Yum! Brands Gives Its Skeptics Indigestion

Looking back, maybe it's not so hard to see why quick-service restaurants would do well in a tougher economy, but the performance of the top brands has been nothing less than blistering. In the case of Yum! Brands (NYSE:Yum), the story continues to be all about China. With Yum! still set on turning China into a fast food nation, it would be dangerous to assume that the company's remarkable growth is due to slow anytime soon. (For related reading, see Investing In China.) 


Q4 Earnings Trade a Little Margin for Growth
There was no question that Yum! Brands saw fine growth in the fourth quarter. Total revenue rose 15%, with reported U.S. revenue down a little (though up in the mid-single digits on an adjusted basis), International up about 7% and China up a torrid 39%. Not surprisingly, same-store sales show a similar breakout - China's same-store sales growth was an eye-popping 21%, while International growth was much more modest (up 3%) and U.S. results were fairly soft (up 1%).

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http://stocks.investopedia.com/stock-analysis/2012/Yum-Brands-Gives-Its-Skeptics-Indigestion-YUM-MCD-SBUX-PNRA-ARCO0209.aspx

FinancialEdge: If The U.S. Was A Real Household

There's no question that discussions about the deficit and debt dominate coverage of the United States federal government - especially during an election cycle. It's easy to get overwhelmed by the numbers to the point where they become simple abstractions. Let us consider, then, what the fiscal state of the U.S. looks like in terms of numbers that are a bit more relatable to everyday experience.

The Bare Numbers
I recently saw a picture sent around Facebook that portrayed U.S. government finances in a simplified form that dropped eight zeros from the numbers. Do that for the 2012 budget that Obama proposed and you get the following:

Income - $26,270
Expenses - $37,290

That means that the U.S. has to borrow $11,020 (or almost half of its income) to pay its bills.

To read the full piece, please click here:
http://financialedge.investopedia.com/financial-edge/0212/If-The-U.S.-Was-A-Real-Household.aspx#axzz1lpJam3d6

Seeking Alpha: Sanofi's Balanced Model Looks Undervalued

There has always been a certain boom/bust aspect to the branded drug business, but French drug giant Sanofi (SNY) seems to be trying a different path. Instead of a narrow focus, Sanofi has a business that is diverse both in markets and geographies served. Instead of a pipeline built around blockbuster home run stocks, Sanofi seems to be focusing on steadily banging out singles and doubles. Time will tell if this different approach will work, but the valuation certainly merits a closer look.

A Solid Close To The Year
Sanofi ended the year on a relatively strong note, with revenue growth and margin performance that was broadly clean and in line with expectations. Reported revenue rose about 9%, with better than 10% growth in pharmaceuticals, 10% growth in animal health, 13% growth in consumer, and 16% growth in generics offset an 8% revenue decline in vaccines. It should be noted, though, that "growth" in pharmaceuticals did have a great deal to do with the inclusion of Genzyme (which itself grew about 1% this quarter).


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Sanofi's Balanced Model Looks Undervalued

Investopedia: Coca-Cola Still Priced For Premium Performance

For a company with the quality and history of Coca-Cola (NYSE:KO), opportunities to buy in cheaply don't come often. Based on solid ongoing performance and global growth potential, this is not one of those rare down periods at Coke. That leaves investors with the unenviable choice of looking for the cheaper stocks of lesser companies, or accepting less than expected return in Coke shares.

Familiar Themes In the Fourth Quarter  
Even with the acquisition of Coca-Cola Enterprises clouding some of the comps, there weren't any major surprises in Coca-Cola's underlying performance. Global revenue rose a little more than 5%, fueled in part by worldwide volume growth of 3%. By the standards of other global food and beverage companies like Nestle (OTCBB:NSRGY) or Kraft (NYSE:KFT), that's pretty respectable growth and Coke did see double-digit volume growth in China.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Coca-Cola-Still-Priced-For-Premium-Performance-KO-PEP-KFT-MNST0209.aspx

Seeking Alpha: Accuray Fixing The Margins, But Where's The Growth?

Med-tech companies don't fix themselves overnight, but Accuray (ARAY) management deserves real praise for how quickly it has addressed one of the biggest challenges of the TomoTherapy acquisition. That said, the overall system growth for this company is not yet where it needs to be and Accuray remains a "show me" story in small-cap med-tech.

A surprisingly strong fiscal second quarter
Although pro forma revenue did decline 11% this quarter, Accuray beat the average sell-side estimates for the quarter. Although adjusted product revenue fell 23%, service revenue climbed 17% from last year. The decision of Siemens (SI) to exit the linac market already seems to be paying some dividends in terms of incremental equipment placements for Accuray.

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Accuray Fixing The Margins, But Where's The Growth?

Seeking Alpha: An Unexpected Change In Leadership At Stryker

Management matters in every industry, and there's no question that Stryker (SYK) has benefited from a long run of quality CEOs. In a fairly shocking announcement Wednesday night, Stryker announced that CEO Stephen MacMillan was resigning (effective immediately) for unspecified family reasons. Not only had MacMillan been a very good CEO for Stryker, but the company now finds itself looking for a new top kick at a time when it is still trying to work itself out of a slump in orthopedics and execute on some reasonably ambitious quality improvement and cost-cutting targets for 2012.

Read more here:
An Unexpected Change In Leadership At Stryker

Seeking Alpha: Multi-Coloar Got Too Hot, But Still Has A Solid Future

Like any investor, I like seeing the stocks I buy for my portfolio go up. I do get a little nervous, though, when they seem to go too far too fast and that was recently true for the relatively unknown label manufacturer Multi-Color (LABL).

In the last few weeks, investors seem to have realized that expectations were getting a bit too hot for this company and the stock sold off. Matters were likely not helped any by the relatively low sales volumes reported by major consumer goods companies (and LABL customers) like Procter & Gamble (PG) and SAB Miller (SBMRY.PK). Top that off with a superficially disappointing quarter, a relatively thin float and little sell-side support and it wasn't too surprising to see the stock pull back on earnings.

Read the full article here:
Multi-Color Got Too Hot, But Still Has A Solid Future

Seeking Alpha: Trying Not To Get Fooled Again On Colfax

It's bad enough to be wrong about a stock and miss the opportunity to log significant capital gains. It's even worse to try to over-correct for the mistake, buy too late, and rack up capital losses because you chased a good company with a hot stock.

That's the conundrum before me with Colfax (CFX). I not only like the company's exposure to the industrial and energy pump and valve markets, but also happen to think that the acquisition of Charter (and its ESAB welding/cutting business) will be very successful. The key questions, though, revolve around how quickly Colfax management can drive opportunity improvements at ESAB, how far those improvements can go, and how much of that is already captured by today's stock price.

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Trying Not To Get Fooled Again On Colfax

Seeking Alpha: GlaxoSmithKline A Good Mix Of Income And Opportunity

There are relatively few drug companies that offer a truly balanced opportunity for investors. In many cases investors have to factor in the risk of significant near-term patent losses or uninspiring (or highly risky) pipelines. GlaxoSmithKline (GSK) is something of an exception in that regard. Although the near-term growth outlook is not blistering, Glaxo offers investors a good mix of capital appreciation potential, dividend income, and pipeline potential.

A Disappointing And Somewhat Confusing End To The Year
Due to a host of charges and items, Glaxo's fourth quarter results were messy and subject to a little more interpretation than usual. What was pretty clear, though, was that sales performance came up lacking. Revenue shrank about 2% in constant currency terms (below the expectation of 1% growth), with a sharp decline in vaccine sales the largest single culprit.

Sales of Advair were okay (though there was little growth), while smaller products like Avodart grew nicely. Glaxo had little to say about much-discussed Benlysta (which it sells under an agreement with Human Genome Sciences (HGSI), and HGSI had previously announced disappointing quarterly sales.

Follow this link for the full piece:
GlaxoSmithKline: A Good Mix Of Income And Opportunity

Investopedia: Weyerhaeuser Already Anticipating The Turn

Maybe, just maybe, there are finally some signs of life in the U.S. residential construction market. Companies like Illinois Tool Works (NYSE:ITW) have seen some inklings of recovery and investors are slowly getting more optimistic. Be that as it may, though, shares in Weyerhaeuser (NYSE:WY) have already jumped more than 25% in the past couple of months on this improving outlook and that has taken a lot of the undervaluation out of the stock.

A Surprisingly Strong Fourth Quarter
Weyerhaeuser's fourth quarter results were actually pretty positive in a lot of respects. Total revenue did drop 3% from last year and about 2% from the prior quarter, but they nevertheless came in a little better than expected. Although the large wood products segment saw revenue fall 14% sequentially, cellulose fiber, real estate and timberlands were all up sequentially.


Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Weyerhaeuser-Already-Anticipating-The-Turn-WY-PCL-RYN-PCH-PG0208.aspx

Investopedia: Can Zoltek Keep The Wind At Its Back?

Here's a little secret for investors looking to take big swings at potential multi-baggers: seek out small, poorly-followed, heavily-shorted stocks in out-of-favor industries. Pick the right one at the right time and the gains can be tremendous. That was shown yet again last week as carbon fiber producer Zoltek (Nasdaq:ZOLT) obliterated analyst expectations and reignited hopes that wind power and green power stocks may have a better 2012 in store.

Great Results Across the Board 

Zoltek is followed by just three analysts, and we're not exactly talking about Morgan Stanley or Barclays here, so "beating expectations" has to be taken with a grain of salt. Still, Zoltek reported that revenue rose 43% from last year and blew away the revenue estimate by 30% as the company saw a 33% jump in shipment volume.

To read the full article, click the link:
http://stocks.investopedia.com/stock-analysis/2012/Can-Zoltek-Keep-The-Wind-At-Its-Back-ZOLT-AMSC-HXL-GE0208.aspx

Investopedia: Atmel's Ironic Warning

Here's a riddle for investors: when is bad news actually good news? The answer: When the bad news is less bad than already feared. That very much seems to be the case for Atmel (Nasdaq:ATML) this Friday, as this small semiconductor's stock has actually held up quite well, despite a sizable revision to sales guidance for the fourth quarter.

The Bad News 

Atmel announced that fourth quarter revenue was going to be approximately $384 million for the fourth quarter; not only down 20% from the third quarter, but quite a bit lower than the average analyst estimate ($412 million) and the lowest estimate ($403 million).

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http://stocks.investopedia.com/stock-analysis/2012/Atmels-Ironic-Warning-ATML-FCS-TXN-SYNA0207.aspx

Investopedia: January Rail Traffic Good For Industry, Not Great For Rails

Rail traffic is a good economic indicator as it's such a major part of how raw materials and finished goods move around the country. Curiously, though, data can be good for the economy but not necessarily so good for the rail industry, and January was one of those months. That said investors should not yet be in any hurry to worry about the health of the rails in 2012.

Rail Growth Depends Where You Look  
On an overall reported basis, U.S. rail traffic wasn't so special for the month of January. Carloads were up just barely on an annual basis, while traffic declined nearly 2% from December. Of the major reporting categories, only 11 were up in January (down from 15 categories a year ago and 16 in December).

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http://stocks.investopedia.com/stock-analysis/2012/January-Rail-Traffic-Good-For-Industry-Not-Great-For-Rails-UNP-NSC-CP-CNI0208.aspx

Investopedia: The Tyson Foods Story Still All About Optimism

Generally speaking, investors should look to own agricultural stocks when things are about as bad as they can get and can only go up. When it comes to Tyson Foods (NYSE:TSN) there are indeed some areas that are performing relatively poorly, but the question remains whether today's valuation really represents a low-risk/high-reward set up.

Trading Costs for Price  
Tyson posted some frankly blistering price increases for the fiscal first quarter. Reported revenue rose more than 9%, as the company traded a nearly 15% overall price increase with a 5% volume reduction.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/The-Tyson-Foods-Story-Still-All-About-Optimism-TSN-SFD-HRL-CAG0208.aspx#axzz1lZBmH4og

Seeking Alpha: Luminex Has A Lot To Live Up To

I'm a sucker for a good gadget, but investors considering putting their money into Luminex (LMNX) may want to take a closer look at the business model and the current expectations. While Luminex does indeed have an interesting story to tell and growth potential in molecular diagnostics, valuation leaves little room for error.

A Quarter That Came In As Expected
For better or worse, there weren't a lot of surprises in Luminex's final quarter of the year. Overall revenue growth was as expected at 16%, though there was a little less in the consumables (down 16%) and royalties (up 17%) than investors may have wished. Although the company made up for that with strong assay sales (up 28% organically) and stable system revenue (up 1%), these are generally lower-margin businesses for the company.


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Luminex Has A Lot To Live Up To

Seeking Alpha: Becton Dickinson Too Beloved For Now

In a market that has offered up plenty of values in med-tech, investors may do well to draw lines between quality and value. There is no question that Becton Dickinson (BDX) is a very good (and very stable) company with substantial market share in a host of profitable sectors. The problem, though, is that there is no shortage of love for this name and no pressing need to buy the stock at current prices.

First Quarter Results Point To One Big Challenge
Perhaps the biggest issue for BD today is producing the sort of growth that it takes to get institutional investors excited and eager to push up the valuation. Reported growth in the fiscal first quarter was just 2.5%, which was at the high end of expectations, but not all that scintillating.

Growth was relatively well-balanced. The smallest division, Biosciences, was also the weakest, as growth was just about 1%. Medical and Diagnostics were relatively stronger, both growing about 3%. Encouragingly, two of the company's strongest business from a platform standpoint, diabetes and diagnostics, were also the strongest from a top-line perspective (growing 6% and 5%, respectively). At the same time, the 2% Med Surg growth was not so bad relative to low procedure counts and the numbers reported from the comparable units at Covidien (COV) and CareFusion (CFN).

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Becton Dickinson Too Beloved For Now

Investopedia: Cameron Waiting For The Subsea Story To Surface

Tom Petty may have been onto something when he said that the waiting is the hardest part. Nobody seems to doubt that major oil companies will continue to invest billions of dollars into offshore oil and gas exploration and production, or that Cameron (NYSE:CAM) will get it's share. The question, though, is how much of that business arrives in 2012 and 2013 and whether Cameron can regain its former position in its core markets.

A Pretty Solid Fourth Quarter
Historical numbers have only limited significance in oil service and equipment companies, so Cameron's strong fourth quarter results don't matter all that much. Revenue did rise from 12% last year and 21% from the prior quarter, with strong growth in Drilling and Production and Process and Compression.


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http://stocks.investopedia.com/stock-analysis/2012/Cameron-Waiting-For-The-Subsea-Story-To-Surface-CAM-FTI-GE-PBR0207.aspx

Seeking Alpha: LHC Group - Beaten Up, But Addressing A Huge Growth Market

The graying of America has been a theme in healthcare for at least the last 15 years, and I've seen analysts and investors apply it to med-tech companies like Johnson & Johnson (JNJ), insurance companies like UnitedHealth (UNH), and a host of other facility operators and service providers. It may be a trite theme at this point, but there is still an element of truth to it and patient investors may be able to ride LHC Group (LHCG) to its fruition.

A Growth Play In A Bad Neighborhood
It would be an understatement to say that home healthcare providers like LHC Group, Amedisys (AMED), Gentiva (GTIV), and Almost Family (AFAM) have been beaten up since 2010. Not only has the industry had to absorb cuts in reimbursement, but the entire industry has been under a regulatory cloud caused by accusations that these companies have fraudulently and illegally billed for unnecessary treatments.

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LHC Group - Beaten Up, But Addressing A Huge Growth Market

Seeking Alpha: FSI International - This Small Semiconductor Company Could Clean Up

It has already been a fairly solid year for many companies in the semiconductor equipment space. With guidance from major players like Applied Materials (AMAT) and ASML (ASML) suggesting that dawn is breaking and the merger between Lam Research (LRCX) and Novellus (NVLS) hinting that business is getting back to normal, investors seem to be willing to consider risky stories again.

That could set up the right sort of one-two punch for investors in FSI International (FSII). Like many other small equipment vendors, FSI was hit hard by the downturn in equipment spending. Unlike some of those small peers, though, FSI is coming into a cyclical upswing with a new product and the potential for some real sales momentum. Couple that with the fact that this stock is barely followed and has about 10% short interest, and it may not take much for this stock to do even more in 2012.

Read more here:
http://seekingalpha.com/article/345591-fsi-international-this-small-semiconductor-company-could-clean-up

Seeking Alpha: A Battered Healthcare Play With Favorable Long-Term Demographics

There is no point in sugar-coating it - 2011 was a disastrous year for home health providers following a terrible 2010. The entire industry is under pressure as Congress cuts Medicare reimbursement and looks to implement new rules and regulations to address and punish prior wrong-doing, while the overall economy applies its own pressures. Although Amedisys (AMED) has been hit hard, patient investors willing to take on the risk may see a multi-year turnaround story unfold here.

What Amedisys Does
Amedisys is the largest publicly-traded provider of home health care and hospice services. Active in 45 states (but focused on the East/Southeast), Amedisys operates over 500 facilities offering skilled nursing, home health aides, physical/occupational therapy, and specialty nursing services.

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A Battered Healthcare Play With Favorable Long-Term Demographics

Seeking Alpha: Rigel Pharma Has More Room To Run

So far this has been a great year for biotech, as investors have been more than happy to look past the risks and embrace the opportunities in the pipeline. While Rigel Pharmaceuticals (RIGL) has certainly gone along for the ride, investors may yet have reason to think about adding shares of this potential star to their portfolio.

A One-Drug Story Today, But What A Drug
Teasing out biotech valuation is always a subjective exercise, but I don't think too many Rigel longs are going to quibble with the statement that R788 (fostamatinib disodium), also known as FosD, is a huge part of the company's current value.

FosD is an oral syk inhibitor that has shown very encouraging efficacy in rheumatoid arthritis. The potential of this drug early on was such that the company was able to sign a lucrative partnership with AstraZeneca (AZN) and the end of the pivotal development process is in sight.


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Rigel Pharma Has More Room To Run

Investopedia: JDSU Still Predictably Unpredictable

When I last wrote on JDSU (Nasdaq:JDSU) about a year ago, I pointed out that there were encouraging signs across the business, and that if this historically boom/bust company could show some consistency the stock could perform well. Flash forward one year: severe flooding did real harm to a contract manufacturer; weak carrier spending rippled through equipment providers; and just about everybody started to worry about the sustainability of tech hardware spending.

A Good Quarter, But ... 

JDSU actually had a surprisingly strong fiscal second quarter. Operations in Thailand recovered faster than anticipated and the company's sequential revenue decline of 2% was considerably better than Street analysts had predicted. Still, it was a tough quarter. Test revenue did rise almost 6% from the preceding quarter, but optical components and advanced technologies both saw declines (nearly 10 and 3%, respectively).

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http://stocks.investopedia.com/stock-analysis/2012/JDSU-Still-Predictably-Unpredictable-JDSU-FNSR-CSCO-DHR0206.aspx

Investopedia: Qualcomm's Growth Story Far From Over

Having already built up a thumping market share in mobile baseband chips, maybe some think that Qualcomm's (Nasdaq:QCOM) growth prospects have to be shrinking as the law of large numbers takes hold. That looks like a hasty (not to mention wrong) analysis - not only is Qualcomm continuing to leverage its current market strength, but the company is looking to expand into new markets that should add billions to its addressable market opportunity.

A Strong Start to the Fiscal Year  
Qualcomm reported that sales rose nearly 40% this quarter (and nearly 14% relative to the fiscal fourth quarter), beating the average analyst guess by more than $100 million. Both of the core businesses were strong - licensing saw revenue rise more than 36%, while the chip business had a gaudy 46% topline growth. MSM chip shipment rose 23% from the fourth quarter, and while the number of royalty-earning devices was a little shy of expectation, the average selling prices (ASP) have been stronger than forecasted.

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http://stocks.investopedia.com/stock-analysis/2012/Qualcomms-Growth-Story-Far-From-Over-QCOM-BRCM-TXN-MRVL0206.aspx

Investopedia: Whirlpool Not Just Another Doomed U.S. Manufacturer

I've been curious about U.S. home appliance manufacturer Whirlpool (NYSE:WHR) for some time now; unfortunately standing on the sidelines while the stock soared immediately after the fourth quarter earnings. Although this company does have legitimately worrisome issues with margins, free cash flow conversion and foreign competition, skeptics may find that there's quite a bit more here than they assume.

Fourth Quarter Results Lukewarm  
Whirlpool had something of a good news/bad news release for the fourth quarter. Reported revenue fell 3% (or 2% in constant currency terms) and that wasn't great. Although North America eeked out a 1% sales gain, results were weaker than expected in Latin America and Europe (down 1 and 7%, respectively, in constant currency). Curiously, shipments were remarkably consistent across Whirlpool's major segments - down 3% in North America and 4% in both Europe and Latin America.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Whirlpool-Not-Just-Another-Doomed-U.S.-Manufacturer-WHR-GE-SHLD-LOW0206.aspx

Seeking Alpha: Hypermarcas May Be On Several Shopping Lists

It's not uncommon for one company's failure to be another's opportunity. Built through aggressive acquisition, Brazil's Hypermarcas (HYPMY.PK) had leading brands in branded drugs, generics, personal care, home care, and food. Not so long ago, Hypermarcas looked like it was on the way to becoming Brazil's answer to Unilever (UL), Procter & Gamble (PG), or Johnson & Johnson (JNJ), but those plans have gone seriously awry.

Shrink To Survive
At the risk of oversimplification, Hypermarcas got too big too fast and pursued quantity (size) over quality. With a hefty amount of debt on the balance sheet, the company made itself vulnerable to performance shortfalls and that's exactly what happened.

Read the full piece here:
Hypermarcas May Be On Several Shopping Lists

Seeking Alpha: AstraZeneca - Solid Earnings Overwhelmed By An Uncertain Future

It's no secret that Big Pharma companies live and die with their pipeline and their ability to drive sales from patent-protected branded drugs. Unfortunately, these two major drivers are both working against UK-based AstraZeneca (AZN). Although current results weren't bad and the company's valuation looks compelling by some metrics, management has a lot of work ahead of it in refilling its pipeline and maintaining its earnings base.

An All-Around Decent Q4, For What It Matters
AstraZeneca actually reported a respectable fourth quarter. Revenue was up slightly, beating the averaged expectation of a modest decline. Revenue in the U.S. was up 5%, offsetting a 15% decline in Western Europe tied in part to generic competition for Nexium. While total Nexium sales did decline 13% this quarter, other major products like Seroquel, Crestor, and Symbicort delivered double-digit sales growth, with Seroquel especially strong relative to expectations.

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AstraZeneca - Solid Earnings Overwhelmed By An Uncertain Future

Seeking Alpha: CareFusion Deserves Another Chance

By and large, it's hard to feel sorry for, or be patient with, companies where the wounds are largely self-inflicted. Still, when a company has significant market share in multiple markets of size, investors would do well to keep an eye on the story. To that end,
CareFusion (CFN) has disappointed investors recently, but the long-term potential of this company is still quite a bit more than is reflected in the stock today.

Not Many Surprises In The Second Quarter
Given that CareFusion warned about this quarter's results, there weren't a lot of surprises in store when the final results came out. Revenue rose a bit more than 3%, with organic revenue up a little less than 3%. Growth was led by a fine performance in Medical Systems; revenue rose more than 9% on solid growth across dispensing, infusion, and respiratory. Procedural was the problem child - sales fell 2% on an adjusted basis as decent ChloraPrep results (up 5-6%) were offset by weakness in various disposables.

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CareFusion Deserves Another Chance

Seeking Alpha: Merck Looks Likes A Name To Own In Drugs

Roche (RHHBY.PK) was a good name to own throughout 2011 in large part because so little was expected from the company. Investors still looking to position their portfolio for 2012 may want to consider Merck (MRK) for similar reasons. Not only does Merck have a pretty tolerable patent cliff over the next three years, but the company's pipeline may yet be undervalued and under-appreciated.

Q4 Results: Good Margins On So-So Sales
Merck's fourth quarter was more or less fine. Revenue grew 2%, but came in about 2% light of average Wall Street guesses. Januvia was quite strong (revenue up 42%) and Singulair did well for a drug that is long in the tooth (up 8%), but Remicade was a little weak and the company did have to swallow a 15% drop in sales of Vytorin. Animal health and consumer sales were up 7% and 5%, respectively, but are relatively small businesses for Merck.

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Merck Looks Like A Name To Own In Drugs

Investopedia: Plum Creek Timber Looks For The Bottom In 2012

Conditions in the timber industry haven't been getting better with any particular speed lately. Although multi-family housing construction is extremely strong, the single-family building and residential real estate development markets, that are so important to Plum Creek (NYSE:PCL), went basically nowhere in 2011. Although most analysts expect 2012 to be the low for the cycle, investors may yet want to ask themselves if Plum Creek is the way to play the eventual rebound.

A Decent Fourth Quarter, Relatively Speaking  
Fourth quarter results were not that great for Plum Creek, but there was no particular expectation that they would be. Reported revenue dropped 12% as a 38% growth from the Northern business and 14% growth in manufacturing partially offset a 4% decline in Southern and a 40% decline in revenue from real estate operations.

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http://stocks.investopedia.com/stock-analysis/2012/Plum-Creek-Timber-Looks-For-The-Bottom-In-2012-PCL-RYN-WY-LPX0203.aspx

Investopedia: Arkansas Best Isn't The Best, But Is It This Bad?

Although the trucking market may not be quite as attractive as rail, it's not terrible. Tonnage is increasing at a slower rate, but is still positive and likely to continue growing so long as the economy grows. Unfortunately, Arkansas Best (Nasdaq:ABFS) seems to be making a tough decision on price versus volume, and needs to show better margins to validate the choice.

A Disappointing Close to the Year
Of the three metrics that most transport investors place great importance on, Arkansas disappointed meaningfully on two. Revenue was up 5% in the quarter, but strong pricing (up almost 13% per hundredweight) was offset by very weak volume. Tonnage was down about 8% in the fourth quarter, and weakened as the quarter went on. Given the overall tonnage trends, it looks as though Arkansas Best may have priced itself out of some business.


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http://stocks.investopedia.com/stock-analysis/2012/Arkansas-Best-Isnt-The-Best-But-Is-It-This-Bad-ABFS-ODFL-FDX-SWFT0203.aspx

Investopedia: Advanced Energy Industries Can Ride The Semi Recovery

There are more than a few signs of life in the semiconductor world these days. The real question, though, is when the fabs and OEMs feel enough confidence to start ordering significant amounts of equipment again. As more of a "when" question than an "if" question, patient and risk-tolerant investors can yet hope to see more growth and gains in Advanced Energy Industries (Nasdaq:AEIS).

A Tough, but as Expected, Fourth Quarter  
Business is definitely challenging these days for AEIS, but not really any more so than the company had led investors to expect. Revenue dropped 24% this quarter relative to last year and 12% relative to the third quarter, as ongoing weakness in the thin film business (down 30% sequentially) offset 12% growth in inverters.

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http://stocks.investopedia.com/stock-analysis/2012/Advanced-Energy-Industries-Can-Ride-The-Semi-Recovery-AEIS-PWER-MKSI-SI0203.aspx

Seeking Alpha: Kellogg's Curious Quarter

Just as Kellogg (K) investors were getting used to the idea that 2012 was going to be a year of somewhat depressed results and necessary reinvestment, Kellogg posted a rather curious quarter. Though this company is still one of the best names in food to own for the long haul, investors with more short-term concerns had best be ready for some potentially choppy results this year.

Surprising Strength To Start The Fiscal Year
Revenue at Kellogg was a little stronger than expected, growing about 6% on an internal basis. Arguably the biggest surprise is that the company was able to balance a better than 6% boost in prices with less than 1% volume erosion. Growth was strong in both North America (up nearly 7%) and Latin America (up more than 10% in constant currency), while Europe was down about 1%. Internal growth of more than 8% in Asia was likewise a solid result.

Read the complete piece here:
Kellogg's Curious Quarter

Investopedia: Fortinet Secures Another Beat

All an investor in high-multiple stories can ask for is a continuation of a strong growth story, complimented with beat-and-raise quarters. Luckily, Fortinet (Nasdaq:FTNT) provided that in the fourth quarter. While there's still a lot of growth potential in security appliances, investors may want to ask themselves just how much success is already built into this stock.

Nothing Really Amiss in the Fourth Quarter  
Fortinet's growth story continued apace in the fourth quarter. Reported revenue rose 29% this quarter (and 4% from the third quarter), as product led the way (up 40 and 8%) over services (up 27 and 6%). Just as important is deferred revenue that rose 17%, while billings were up 27% - accelerating from the 25 and 23% growth seen in the third and second quarter, respectively.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Fortinet-Secures-Another-Beat-FTNT-CSCO-CHKP-JNPR0202.aspx

Seeking Alpha: Cummins Earnings Show The Company Has Another Gear

Underestimate Cummins (CMI) at your own risk. Although there has been plenty of talk about how tough conditions in Europe and China's inflation fears will lead heavy machinery demand to stagnate, companies like Caterpillar (CAT), Eaton (ETN), and PACCAR (PCAR) keep reporting an inconvenient truth that business is holding up pretty nicely. Much as I admit buying a cyclical industrial like Cummins at these levels makes me nervous, it's hard to argue with the performance and the potential.

A Mostly Solid Fourth Quarter
All in all, Cummins handily surpassed analyst expectations for the quarter. Revenue rose 19% (and 6% sequentially) and beat the average Wall Street guess by almost 5%. Growth was led by a very strong result in engines, where top-line growth was 23% and external growth was 25%. Components also did well, growing 19% this quarter. Power was the laggard, though, and up just 2% while distribution revenue rose 19%.

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Cummins Earnings Show The Company Has Another Gear

Seeking Alpha: Boston Scientific - Struggles Today, Still Hope For Tomorrow?

The seemingly never-ending road to recovery just got a little longer for Boston Scientific (BSX). Although this long-struggling med-tech name has been making some progress in restructuring its businesses and cost structure, fourth quarter earnings highlight that growth and competition are still pressing worries. Though BSX has a fairly deep pipeline, patient investors ought to ask themselves if the company will be able to gain and hold real share in these emerging growth markets.

Q4 Earnings Show Blemishes On The Crown Jewels
Boston Scientific reported that total revenue declined 8% in constant currency terms this quarter, with 5% erosion in the core businesses. Not only was this more than 3% below the average estimate, it was beneath the bottom of the range.

Worse yet, the company was weakest in its largest and most significant businesses. Cardiac rhythm management sales were down 15% (missing estimates by more than 5%) and ICD sales were down 18% - much worse than the recently-reported results at St Jude (STJ) and strongly suggestive that BSX continues to cede share to St Jude and Medtronic (MDT).

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Boston Scientific: Struggles Today, Still Hope For Tomorrow?

Seeking Alpha: Roche's Earnings Show Real Progress

For much of 2011, Roche (RHHBY.PK) was the red-headed stepchild of the Big Pharma world. Recently that started to change as Wall Street believed that the company had put most of its bad news behind it and was in position to once again deliver lucrative (if not especially torrid) growth. With the recent hostile bid for Illumina (ILMN) distracting investors though, some of that progress is overshadowed by the risk that Roche will overpay and redeploy too much cash away from shareholders.

A Surprising Surprise To Close The Year
Although the fact that Roche produced fourth quarter revenue about 2% ahead of expectations may not qualify as much of a surprise, the fact that it surprised at all is the surprise - a top-line revenue beat has been more than a year in coming. The Pharma business grew about 3% this quarter in constant currency, while the diagnostics business delivered a surprisingly strong 7% sales increase.


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Roche's Earnings Show Real Progress

Investopedia: No Quick Fixes At ADM, But The Value Is There

A quarter ago I was pretty positive on the shares of Archer Daniels Midland (NYSE:ADM). This was not so much because I saw a dramatic turnaround coming in the business, but because I saw it as a good long-term value. Although fiscal second quarter earnings show that there are still some very real challenges, investors really haven't hurt themselves by owning these shares as a long-term value.

Another Difficult (and Complicated) Quarter  
All in all, the fiscal second quarter was not very good for ADM. Reported revenue did rise 11% and the company posted gaudy-looking growth in oilseeds processing (up 28%) and corn processing (up 29%), while the huge ag services business saw a 1% sales decline.

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http://stocks.investopedia.com/stock-analysis/2012/No-Quick-Fixes-At-ADM-But-The-Value-Is-There-ADM-BG-CPO-MBLX0201.aspx

Seeking Alpha: Pfizer Looking More And More Like A Dependable Company

There is no point in asking if a Big Pharma company will go through its trial by fire (or trial by patent cliff, if you prefer), it's just a question of when. Although Pfizer (PFE) is not exactly in the clear with all of its patent cliffs, most of the damage has been done and Pfizer has emerged as a leaner, more profitable, and ultimately more interesting major drug company.

Decent Results For Q4
Some of the company's progress shows through in fourth quarter results. Revenue was down 5%, but still fared better than most analysts expected. Certainly the drug business needs more help; revenue was down 6% as reported, with U.S. sales down 15% due in large part to declining sales of Lipitor (now off patent). Ancillary businesses were fairly strong though, as animal health grew 13%, consumer products grew 8%, and nutrition grew 22%.

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Pfizer Looking More And More Like A Dependable Company

Seeking Alpha: Illinois Tool Works Tries To Change With The Times

Changing a successful model is a risk that most corporate executives simply don't have the guts to take. Make no mistake, while Illinois Tools Works' (ITW) heavy reliance on serial acquisitions and its decentralized structure break a lot of how-to rules they teach in business school, the results have been good. Companies like Dover (DOV) and Ingersoll Rand (IR) have closed some of the market outperformance gap in recent years, but ITW has still done well by investors over almost any long-term time horizon.

Then again, maybe that shrinking margin of outperformance is a good reason for the company to think about altering the plan a bit.

Respectable Results In Place Of Rumor
Although the whisper numbers on Illinois Tool Works were not especially strong going into the quarter, the company's results were just fine. Reported revenue growth came in over 10%, while organic growth was nearly 6%. Although ITW's exposure to short-cycle European end-markets was (and remains) a concern, organic growth over there was better than 2% (while growing nearly 9% in North America and better than 9% in China).

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Illinois Tool Works Tries To Change With The Times

Investopedia: Eastman Chemical Seems To Get The Long-Term Picture

It's interesting that Eastman Chemical (NYSE:EMN), Eastman Kodak's discard, is going to be the company that survives as the more viable going concern. To management's credit, they seem to understand the value of defensible markets and the need to wall off and dispose of businesses in long-term decline. With the announced acquisition of Solutia (NYSE:SOA), Eastman Chemical is taking another important step towards being a diversified specialty chemical company.

Is Solutia the Solution?
Eastman is paying about $4.7 billion in total enterprise value for Solutia, or about nine times trailing EBITDA. That's not an especially cheap price, but it's not so unusual for a takeout of a quality specialty chemical name. When Berkshire Hathaway (NYSE:BRK.A) acquired Lubrizol, the premium it paid was only about 80% less even though that was a very different market at the time. (For related reading, see EBITDA: Challenging The Calculation.)


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http://stocks.investopedia.com/stock-analysis/2012/Eastman-Chemical-Seems-To-Get-The-Long-Term-Picture-EMN-SOA-BRK-A-DD-DOW0201.aspx

Seeking Alpha: Lilly Has Earned Its Lousy Rep

There don't seem to be very many pharmaceutical companies less-liked than Eli Lilly (LLY). There's a long tradition here of blaming others for their problems (the government and prior management teams, especially), designing trials poorly, and generally mismanaging the pipeline to say nothing of the expense structure. Said differently, Lilly doesn't have one of the highest dividend yields in Big Pharma because its payout ratio is high.

A Little Good News In Q4
Against that dour intro, Lilly had a pretty respectable fourth quarter with a few catches. Revenue declined 2% overall as strong volume growth (8%) was buried by price erosion (11%). Pharmaceutical sales fell 4%, with sales in the U.S. down 6% (despite a 11% volume increase). Lilly's good quarter largely came down to strength in the diabetes franchise (which is definitely a positive) and less-than-expected erosion of the now off-patent Zyprexa.

Read the full article here:
Lilly Has Earned Its Lousy Rep

Investopedia: Is There Enough Economic Growth To Push Olin Higher?

The easy days are long over for companies that represent leveraged plays on economic growth. There may still be a feeling of general malaise and disappointment in the economic recovery, but the numbers are what they are and economic activity is strongly up off the bottoms. That represents a problem for Olin Corp (NYSE:OLN), as this chemical manufacturer has enjoyed a solid recovery from the depths of the recession, but now has to find a way to maintain the momentum.

A Mixed Fourth Quarter  
All in all, Olin's performance for the fourth quarter was fairly mixed. Revenue rose about 16% as the company offset lower volume in chloralkali and caustic potash with higher netbacks. The company's operating rate was a disappointing 70%, though, and well below industry averages for the quarter.

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Investopedia: Everybody Loves Broadcom, And Maybe You Should Too

Normally I get skeptical whenever I see a stock uniformly supported by major Wall Street firms. After all, if a dozen major analysts are already out there pounding the table, how much good news is left undiscovered and unappreciated? In the case of Broadcom (Nasdaq:BRCM) the answer may well be "more than you think" as the company continues to leverage good technology into more new products and markets.

A Pretty Good End to the Year  
Although December was the winter of discontent for chip companies, Broadcom actually did pretty well all things considered. Revenue did fall about 7% on both an annual and sequential comparison. The company's mobile/wireless business was strongest (down 4 and 7%, respectively), while broadband (down 12 and 3%) and infrastructure (down 7 and 13%) were weaker.

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