Friday - January 11, 2008
![]() Dear Subscriber, Yesterday Federal Reserve Chairman Ben Bernanke acknowledged that "in light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary." In other words, the Fed is going to cut rates at its Jan 29-30 meeting. A rate cut had been previously assumed by the markets, which is why stocks did not post a big rally in response to Bernanke's speech. (Stocks rebounded in the afternoon on rumors of a potential buyout of Countrywide Financial (CFC).) The only question among economists and traders previously was whether the cut would be 25 or 50 basis points. Expectations for a 50-basis point cut at the January meeting are now going to rise with a strong possibility of yet another rate cut at the Mar 18 meeting. Our Director of Research, Dirk van Dijk, posted two analyses of Bernanke's speech on our analyst blog yesterday. For those of you that missed it, the commentariesare still available on Zacks.com: http://at.zacks.com/?id=4241 and http://at.zacks.com/?id=4249. The Fed Chairman's speech is available on the Federal Reserve web site: http://www.federalreserve.gov. The Cleveland Federal Reserve Bank publishes a chart (updated daily) summarizing what futures markets are forecasting as the most likely change in interest rates, if any, at upcoming Fed meetings: http://www.clevelandfed.org (Click on the monetary policy link near the upper right-hand corner.) Wishing you prosperity, 1. ZACKS RANK BUY STOCKS Zacks #1 Rank stocks average a 32% annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the four main schools of investing: Aggressive Growth, Momentum, Growth & Income and Value. MasterCard Incorporated (MA) has watched 2008 earnings estimates rise 90 cents over the past 90 days. Two analysts have raised their forecasts over the past month. Read the full analysis on MA now! Nu Skin Enterprises, Inc. (NUS) was approved to begin direct selling activities in all 18 districts in Beijing and four additional districts in Shanghai. Read the full analysis on NUS now! State Street Corporation (STT) has a very strong history of surprising and beating analyst earnings estimates. In the past seven days, eight covering analysts have increased next-year's projections. Read the full analysis on STT now! Fairchild Semiconductor (FCS) reported strong sales on the strength of robust computing and handset demand. 2008 earnings estimates have risen seven cents to $1.26 per share over the past 90 days. Read the full analysis on FCS now!
2. BEST OF EQUITY RESEARCH The Zacks Equity Research team of 50 analysts generates a mountain of timely research every day that is geared towards long term stock investing. Here we turn the spotlight on some of their hottest insights. Changing Up the European Strategy Stocks featured recently include Commerce Bancshares (CBSH), DPL (DPL), Cytori Therapeutics (CYTX) and Duke Realty (DRE). To see the latest analyst posts, click here. Sciele Pharma (SCRX) - Promising Platform. For the full Zacks research report, click here. PMI Group (PMI) - High Mortgage Exposure. For the full Zacks research report, click here. Coal Rising Total Net Income Expected to Fall 8.5% for the S&P 500
3. STRATEGIES & IDEAS Here you will find fresh articles loaded with profitable investment strategies and ideas to help you beat the market. Today we highlight... Profiting from Earnings Surprises This strategy pinpoints value stocks that are also good bargains with real potential for earnings improvement. Four stocks featured include BOBE, ENH, SON and TRV. More... Dynamic Materials (BOOM) Finding Winners in a Tough Market Accessing Your IRA Penalty Free Most of the strategies highlighted in the articles above were created using the Zacks Research Wizard screening and backtesting software. Learn more about this powerful tool and get your free copy of our special report "Top 10 Stock Screening Strategies". More... 4. ZACKS EXTRA Value Investing The Parable of "Mr. Market" Value Investing Home: Go there now. Other Investing Education Resources
Mitch Zacks, Portfolio Manager at Zacks Investment Management, says the stock market is headed higher and the Fed will cut rates again by month's end. Listen to his audio here. Click here for more Zacks audio.
Verasun Energy (VSE) The company has room for upgrades, which makes it an attractive contrarian play to the experts at Schaeffer's. Read the complete commentary. Options homepage: Go there now.
If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. THANKS! http://at.zacks.com/?id=2299 Regards and Happy Investing, Charles Rotblut, CFA p.s. What is the mission for Zacks Profit from the Pros? Click here to find out how we will help you become a more successful investor. The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial. The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. To contact us by mail: Zacks Investment Research To unsubscribe from receiving "Profit from the Pros" e-mail newsletter, click here. | |||||||


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