For Immediate Release

 

Chicago, IL – March 6, 2009 – Zacks Equity Research picks Churchill Downs (CHDN - Analyst Report) as Bull of the Day and Trimeris, Inc. (TRMS - Analyst Report) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Sempra Energy (SRE - Analyst Report), which also has a nice natural gas pipeline operation and Allegheny Energy (AYE - Analyst Report) and Hershey Foods (HSY - Analyst Report).

 

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

 

Bull of the Day

 

We reiterate our Buy rating on shares of Churchill Downs (CHDN - Analyst Report) following the release of Q4 results.

 

The company faced a number of irregular issues in 2008, and managed them well, in our opinion. We remain encouraged by the increasing impact of the company’s online advance-deposit wagering business, as well as the growth in Churchill’s alternative gaming segment.

 

Additional growth in these areas could provide a catalyst going forward. Our 12-month price target of $36 per share equates to approximately 8x our 2008 EBITDA estimate.

 

Bear of the Day

 

Trimeris, Inc. (TRMS - Analyst Report) develops therapeutic agents for the treatment of viral diseases based on its fusion inhibition technology that blocks viral entry into host cells.

 

Sales of its lead drug Fuzeon have been declining dramatically since 1Q08 due to fierce competition from Selzentry and Isentress. The collaboration amendment with Roche and several management changes further cast a shadow on the company’s future.

 

We maintain our Sell rating on Trimeris with a $0.50 price target.

Recent Analysis from the Analyst Blog

 

Where Is the Bottom?

 

Don’t try to be a hero in your stock picks. In this environment, it is far better to be safe than sorry. Go for quality.

What do I mean by quality? First and foremost, look at the balance sheet. The less debt, particularly short-term debt, the better. If the company has a lot of cash on the balance sheet, that is a huge positive.

Next ask yourself, "Does this company make things people need, or just stuff people want?" If just a "want," avoid it. Of course, what is a "need" and what is a "want" is a bit of a sliding scale. Things that people in the U.S. consider absolute "needs" might well be considered ridiculously silly "wants" to people living in the slums of Calcutta.

Still, people need food, and in this country, things like basic toiletries. They are still likely to need gasoline and heating oil and natural gas. They need electricity. They do not need to take vacations. They do not need jewelry. They do not need new clothes; stuff out of the closet will keep you nice and warm and allow for personal modesty.

The first sorts of companies you should be looking at are things like Electric Utilities (although they often have a bunch of debt, but mostly long-term). Two of those to consider would be Sempra Energy (SRE - Analyst Report), which also has a nice natural gas pipeline operation and Allegheny Energy (AYE - Analyst Report).

Some of the Consumer Non-Durable names, like Hershey Foods (HSY - Analyst Report) are worth trying to build positions in.

 

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About the Bull and Bear of the Day

 

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

 

About the Analyst Blog

 

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

 

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.

 

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Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

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.

 

 

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