Zacks Bull and Bear of the Day Highlights: Denbury, St. Joe Co, Citigroup, Bank of America and Wells Fargo

Chicago, IL – July 1, 2009 – Zacks Equity Research highlights Denbury (DNR - Analyst Report) as the Bull of the Day and St. Joe Co (JOE - Analyst Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Citigroup (C - Analyst Report), Bank of America (BAC - Analyst Report) and Wells Fargo (WFC - Analyst Report).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Denbury (DNR - Analyst Report) is a leading tertiary oil player, with a solid asset base and an impressive track record of production and reserve growth.

We expect this growth momentum to continue over the next 5 years. Our continued favorable view of Denbury shares reflects the company's low-risk profile and oil-centric niche business model.

We consider management's recent Barnett Shale sale as a prudent step, which will allow the company greater liquidity and flexibility to focus on its core tertiary oil operations.

Bear of the Day:

While operations continue to deteriorate, the company is currently focused on maintaining liquidity and cutting expenses. In addition, St. Joe Co (JOE - Analyst Report) has repaid most of its long-term debt and has sufficient cash reserves to get through the residential real estate slump.

However, there are no signs that the housing situation will get better in the next 6 months and the worst could be yet to come.

Near-term, we would stay away from companies with exposure to the residential building business. While we think the company could be a good long-term investment, we maintain our near-term Sell recommendation.

Latest Posts on the Zacks Analyst Blog:

Fed To Remain OA

In order to prevent the U.S economic recovery from being squashed, the Federal Reserve's monetary policy is expected to retain its overly accommodative (OA) stance for an extended period.

So far, the Fed has reduced interest rates to almost zero and pledged to buy up to nearly $1.8 trillion worth of U.S. government and mortgage debt in order to combat a severe recession. This has been an attempt to prevent the economy from slipping into deflation, similar to what occurred in Japan when that country endured a decade of stagnation during the 1990s.

However, the St. Louis Federal Reserve Bank's President James Bullard has pointed out that having a withdrawal plan of the massive expansion of the U.S. monetary base is just as important. Without an exit strategy, expectations of high inflation may develop and feed into today's long-term yields. Therefore, financial institutions such as but not limited to Citigroup (C - Analyst Report), Bank of America (BAC - Analyst Report) and Wells Fargo (WFC - Analyst Report) have increased their respective 30-year mortgage rates by 100 bp within the past 45 days. The result yields could continue to rise and thereby hamper recovery prospects.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

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.

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