This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – September 28, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Dean Foods Company ( DF - Analyst Report ) , Evercore Partners Inc. ( EVR - Snapshot Report ) , Kraft Foods Inc. ( ) , ConAgra Foods Inc. ( CAG - Analyst Report ) and Qualcomm Inc. ( QCOM - Analyst Report ) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
Dean Foods to Offload Morningstar
Leading processor and distributor of milk and other dairy products, Dean Foods Company ( DF - Analyst Report ) is looking for buyers for its Morningstar business. The investors appreciated this decision of the company, which reflected in its share price that closed 5.46% higher at $16.23 on September 27, 2012, from the previous day’s close price of $15.39.
Dean Foods has appointed investment bank Evercore Partners Inc. ( EVR - Snapshot Report ) to crack a deal for maximizing shareholders’ value as well as ensure future success of the business. The company has not disclosed any information relating to the amount it is expecting from the transaction. However, the deal is likely to fetch around $1 billion.
Morningstar sells branded and private label other dairy products under brands such as Country Fresh, Dean’s, Garelick Farms, Mayfield and Oak Farms. During fiscal 2011, this segment contributed approximately 10% to the company’s total net sales.
Dean Foods has always been committed to explore strategic alternatives that enhance shareholders’ value. Last month, concurrent to its earnings results for the second quarter of fiscal 2012, Dean Foods announced to issue IPO of its wholly-owned subsidiary, The WhiteWave Foods Company. The company intends to dilute its 20% stake in the subsidiary and obtain around $300 million. The proceeds are expected to be used for lowering its debt level. As of June 30, 2012, the company has total long-term debt outstanding of $3,552 million.
The dilution process is anticipated to complete during the fourth quarter of the ongoing fiscal and will lower the company’s year-end leverage ratio to nearly 3.5x debt to EBITDA, as defined by its credit agreements.
We believe Dean Foods has taken strategic steps to optimize its capital allocation and concentrate on core business activities. Following this, during fiscal 2011, the company divested its underperforming business unit operations of dairy processing facility in the Southeast. We may see more closures in future towards creating value for shareholders.
Moreover, Dean Foods continues to make headway in its efforts to achieve the lowest cost position in the industry. The company has benefited from its continued focus on cost reduction initiatives across the businesses, including headcount reductions.
It has already achieved its targeted total cost savings of $300 million in fiscal 2011 under the cost reduction program started in 2009. Further, we expect in fiscal 2012 the company will continue to move aggressively toward streamlining its cost structure and may save in line with or more than the fiscal 2011 savings.
On the flip side, in recent years, the consolidation of the retail grocery industry has led to increased competition among dairy product suppliers. In such a situation, Dean Foods faces stiff competition at the processor level, in all major product lines and geographic markets. The company competes mainly with Kraft Foods Inc. ( ) and ConAgra Foods Inc. ( CAG - Analyst Report ) .
Currently, Dean Foods holds a Zacks #2 Rank, implying a short-term Buy rating on the stock. However, we remain slightly cautious on the stock and uphold our long-term ‘Neutral’ recommendation, waiting to see further catalysts before becoming more positive on the stock.
QCOM to Expand S4 Chip Range
Qualcomm Inc. ( QCOM - Analyst Report ) , one of the leading manufacturers of smartphone chipsets, has incorporated two more Snapdragon S4 processors – MSM8225Q and MSM8625Q – which are expected to be sent as samples to the customers by the year end and to be shipped from the first quarter of 2013 onwards.
The 28 nm Snapdragon S4 group of processors is mainly used in high-end smartphones and tablets as they support LTE technology, better graphics and enhanced battery life. Hence, additions of two new 45 nm S4 processors, belonging to Snapdragon S4 Play tier will not only provide faster clock speed but will also add more varieties to its chipset range as these processors can be integrated with low-end smartphones, hence enhancing its low-end market base in due course.
Both the processors are capable of providing dual-core and quad-core CPUs to the smartphone manufacturers along with dual-sim support, thereby enhancing the performance of the handset in terms of faster network speed and better viewing of HD videos. Moreover, these processors also support Wi-Fi, Bluetooth 4.0 and FM connectivity using the Qualcomm Atheros AR6005 and WCN2243 chips.
Qualcomm will also launch a single platform – the Snapdragon S4 Plus MSM8930, which supports UMTS, CDMA and TD-SCDMA technology for different Chinese telecom carriers. Additionally, this single platform will also support LTE-TDD and TD-SCDMA standard, catering to mid-tier smartphone segments in China.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Zacks Investment Research
800-767-3771 ext. 9339
Please login to Zacks.com or register to post a comment.