Wednesday - March 19, 2008
![]() Dear Subscriber, Yesterday, the Fed voted to lower its target for the fed funds rate by 75 basis points, rather than the 100 basis points that many had hoped for. The vote was not unanimous, as Dallas Fed President Richard Fisher and Philadelphia Fed President Charles Plosser wanted a less aggressive cut. The Committee gave a more negative assessment of the economy, but also continued to express worries about inflationary pressures. The discount rate was also cut by 75 basis points. With Sunday's 25-basis point cut, this resulted in a three-day, 100 basis-point cut in the overnight rate. The statement can be read at: http://www.federalreserve.gov/newsevents/press/monetary/20080318a.htm The markets were volatile following the rate cut announcement, but rebounded to close with substantial gains. Key to the positive day was earnings from Goldman Sachs (GS) and Lehman Brothers (LEH). Profits from both brokerage firms were above expectations that had been significantly lowered. I was happy to see the strong upward move in the markets, but would caution about getting overly excited. Fundamentally, the credit crunch continues, the trend in aggregate earnings estimate revisions remains negative and there are near-term double-top formations that the Dow and S&P 500 need to beat. Therefore, it is important to continue focusing on attractive valuations and rising earnings estimates. Wishing you prosperity, 1. ZACKS RANK BUY STOCKS The Zacks Rank is a powerful short term stock ranking system that has generated a 32% average annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. FLIR Systems (FLIR) is attractively valued at 18.6x next year's estimates. Earnings estimates for this year have risen seven cents to $1.17 per share over the past 90 days. Read the full analysis on FLIR now! Corning (GLW) recently reaffirmed its first-quarter sales and earnings per share guidance. Analysts raised earnings estimates, bringing them in line with the company's outlook. Read the full analysis on GLW now! Netflix's (NFLX) price has advanced behind excellent full-year and Q4 results. NFLX also received permission from its Board to execute a $250 million common stock re-purchase program. Read the full analysis on NFLX now! Trina Solar (TSL) is now trading at an attractive valuation. It has a 2008 P/E of only 11.19. Covering analysts forecast year-over-year growth of 87.77% for 2008. Read the full analysis on TSL 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. Upside Sales Surprises for Some Biotechs Stocks featured recently include ASM International (ASMI), Dendreon (DNDN), Carnival (CCL) and Embraer Air (ERJ). Get their latest posts. MTG Investment Corp. (MTG) - Exposure to Bad Loans. For the full Zacks research report, click here. Embarq (EQ) - Losing Out to New Methods. For the full Zacks research report, click here. Earnings Estimates Still Heading South The Week of Mar 17 - Mar 21 $110 Oil Not Good for Refiners
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Panelists give their opinions on JP Morgan acquiring Bear Stearns, and attempt to make some sense out of recent recession surveys. Listen to his audio here. For more Zacks audio, click here.
Hansen Natural (HANS) The Zacks Most Active Options filter highlights this beverage maker. Find out why you should watch the 38-to-40 range. Read the entire commentary. Options homepage: Go there now.
Steve Reitmeister, Editor-At-Large for Zacks.com, explains why buy-and-hold investing is dead. Listen to his audio here. For more Zacks audio, click here.
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=2320 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. Visit /performance for information about the performance numbers displayed in this newsletter.. 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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