Tuesday, May 31, 2011

Nokia (NOK) Crushed on Low-End Business Outlook

The market was responding to the warning from Nokia (NYSE:NOK) today that in the second quarter the company will face pressure on its lower end products in China and Europe, which had been the short-term hope of the company while it transfers to the Windows Phone 7 from Microsoft (NASDAQ:MSFT) in the smartphone segment.

Nokia said sales from its devices and services division would only break even for the quarter, far below the estimated €6.1 billion to €6.6 billion it had projected.

Many are acting surprised by this, but it had to be expected as the company moves toward the more lucrative smartphone market as its major strategy.

But the idea was for Elop and Nokia to reasonably defend its low-end phones while it made that transition; something apparently they're having a difficult time doing.

In the first quarter Nokia's operating profit in the devices and services segment was $985.6 million. This quarter the company may only break even, suggesting possible losses or very meager gains.

Naysayers are already making the entire strategy of Nokia look questionable, as to its shift to Microsoft, but again, this can't really come as a surprise, because the company knew its competitors were going to come after them in the low-end market while they transitioned to the more lucrative smartphone market.

All the announcement today does is confirm what most already knew, although it's being peddled as a surprise.

The only real question was how deeply Nokia was going to be affected during the transition, not if it was going to be affected.

Either way, the market is responding as if it was caught off guard and is punishing the company today.

Shares in New York are trading at $7.05, falling $1.14, or 13.96 percent, as of 1:13 PM EDT.

Barrick (ABX) Gets Zambian Approval for Copper Mine

Barrick Gold Corp. (NYSE:ABX) was given the go ahead by the Zambian Competition Commission to acquire takeover of Equinox Minerals Ltd. (EQN), which includes the Lumwana copper mine.

The giant gold miner, which is seeking to diversify its assets, will acquire the company for $7.5 billion.

According to the Zambian Competition Commission, "The Board granted final conditional authorization on the premise that the acquisition did not raise any competition concerns because Barrick Gold Corp. had no known presence in Zambia and, therefore, unlikely to lead to a situation that could substantially lessen competition in the mining sector.”

Conditions attached to the approval of the deal include honoring existing contracts with local suppliers and smelters, along with having Zambia Consolidated Copper Mines Investment Holdings retain a 2.2 percent stake in Equinox.

Barrick Gold closed Friday at $47.39, jumping $0.22, or 0.47 percent.

Steelmakers (X) (AKS) (NUE) (STLD) Enter Summer Positive

In America Memorial Day weekends heralds the unofficial start of summer, and steelmakers ended May on an up note, as shares of US Steel (NYSE:X), AK Steel (NYSE:AKS), Nucor (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) all closed up Friday.

Apparently investors has decided to take the chance the recent boost in prices by steelmakers is sustainable, as the industry responds to price declines in prices in the North American market.

For flat-rolled steel, prices slid form a high of $800 a ton to about $780 a ton since April. Some of this is the result of supply-chain shortage that seem to have been worked through now.

The drop in prices resulted in Nucor, AK Steel and Steverstal boosting prices by close to $40 a ton.

With demand remaining weak, it's questionable by analysts whether the increase in prices will be able to hold. Industry capacity utilization at this time is only about 75 percent, a very average number.

Results in the second quarter should continue to be strong for steelmakers, but heading into the third quarter higher prices of scrap metal, coking coal and iron ore, along with an anemic so-called economic recovery, has generated concerns as to the strength of the industry.

For the next five years analysts see growth for the steel industry only at about a 5 percent rate at highers, with many thinking it'll be lower than that.

US Steel closed Friday at $45.67, gaining $0.33, or 0.73 percent. AK Steel closed at $15.29, rising $0.25, or 1.66 percent. Nucor ended at $42.09, jumping $0.20, or 0.48 percent. Steel Dynamics closed at $17.02, climbing $0.23, or 1.37 percent.

JPMorgan (JPM) (GS) (MS) See Crude Prices Continuing to Rise

Even though there is a temporary reprieve from the cost of oil and gasoline surrounding Memorial Day weekend, that didn't affect the outlook for oil prices over the the next year from JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS).

All three financial institutions said recently they see oil prices continuing to push up.

J.P. Morgan believes Brent crude will reach $130 a barrel in the third quarter. Goldman Sachs said that benchmark West Texas Intermediate crude will climb to $135 a barrel by the end of 2012, and Morgan Stanley Morgan Stanley sees Brent crude averaging $120 a barrel in 2011.

On Friday, benchmark crude for July delivery was up 36 cents to settle at $100.59 a barrel on the New York Mercantile Exchange. In London, Brent crude was down 2 cents to $115.03 a barrel on the ICE Futures Exchange.

In other Nymex trading, heating oil for June delivery jumped almost a penny to settle at $3.0014 per gallon and gasoline futures for June delivery rose 2.39 cents to settle at $3.0313 per gallon. Natural gas for July delivery climbed 15.8 cents to settle at $4.518 per 1,000 cubic feet.

If projections from investment banks are accurate, the price of gas will eventually rise to about $4.25 a gallon in the latter part of 2011.

Major oil producers closed mixed on Friday. Marathon (NYSE:MRO) ended the session at $53.37, falling $0.21, or 0.39 percent. ConocoPhillips (NYSE:COP) closed at $72.64, gaining $0.30, or 0.41 percent. BP (NYSE:BP) closed at $45.54, up $0.16, or 0.35 percent. Exxon (NYSE:XOM) ended at $82.63, climbing $0.24, or 0.29 percent.

Barrick's (ABX) Pueblo Viejo Project to be Delayed

After heavy rainfalls early last week, Barrick Gold's (NYSE:ABX) Pueblo Viejo project in the Dominican Republic will probably not start during its planned launch in the first quarter of 2012.

The tailings facility at Pueblo Viejo has damaged from the large build-up of rainwater, which the giant miner is now working on. The facility hasn't been fully constructed yet and work still must be done to bring to its full capacity.

A damage assessment is ongoing concerning what the depth the effect will be on the launch timeline as well as the budget originally set aside for preproduction costs.

Costs for the project are already weighing on Barrick, as well as partner in the project, Goldcorp (NYSE:GG), which have had cost estimated boosted to a range of $3.3 billion to $3.5 billion in 2011 so far. This will assuredly add to the mounting costs.

An estimated 1.04 million to 1.13 million ounces of gold are expected to be produced at Pueblo Viejo during the first five years of operation. Cash costs per ounce are projected to be from $250 an ounce to $275 an ounce.

Barrick Gold has a 60 percent stake in the project while Goldcorp has the remaining 40 percent.

Friday, May 27, 2011

Anadarko (APC) (CXO) (NBL) Jump on Upgrades, Higher Oil Prices

Shares of Anadarko Petroleum (NYSE: APC), Concho Resources Inc. (NYSE: CXO) and Noble Energy (NYSE: NBL) were trading up today after being upgraded by analysts and oil prices trading up.

At just before 12:00 PM EDT, U.S. crude for July delivery was up 26 cents at $100.49 a barrel. Earlier in the day it traded as high as $101.24.

In London, ICE July Brent fell 23 cents to $114.82.

Sterne Agee upgraded Noble Energy (NBL) from a “neutral” rating to a “buy” rating. They have a price target of $107.00 on the company.

Sterne Agee upgraded Anadarko Petroleum (APC) from a “neutral” rating to a “buy” rating. They have a price target of $97.00 on the company.

Wunderlich upgraded Concho Resources Inc. (CXO) from a “hold” rating to a “buy” rating. They have a price target of $105.00 on the company.

Noble Energy was trading at $91.87, gaining $1.08, or 1.19 percent, as of 1:06 PM EDT. Concho Resources was at $96.15, jumping $1.99, or 2.11 percent. Anadarko Petroleum was at $78.54, up $0.65, or 0.83 percent.

Newmont (NEM) (GG) (ABX) (NG) (EGO) Trade Higher as Gold Jumps

A weakened U.S. dollar and dismal data about an 11.6 percent drop in pending home sales has offered gold and silver prices support today, with major miners like Newmont Gold (NYSE:NEM), Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), Novagold (NYSE:NG) and Eldorado Gold (NYSE:EGO) all trading in positive territory.

Gold for June delivery was up $10.60 to $1,533.40 an ounce at the Comex division of the New York Mercantile Exchange. It has traded in a range of $1,518.40 to $1,535.50.

Silver prices were climbing 64 cents to $37.97 an ounce while the U.S. dollar index fell to $75.08, losing 0.66 percent.

Kitco.com senior analyst Jon Nadler said he believes thinks gold will have to wait to gain momentum until after Memorial Day weekend. "I think you're looking at bargain hunters in the $1,480-$1,500 range in gold but again we have to overcome decisively the $1,530-$1,540 area until we can talk about higher levels."

Eldorado Gold was trading at $16.07, gaining $0.26, or 1.64 percent, as of 12:36 PM EDT. NovaGold was at $11.53, up $0.24, or 2.17 percent. Newmont Mining was trading at $56.62, rising $0.79, or 1.42 percent. Goldcorp was at $50.19, climbing $0.26, or 0.52 percent. Barrick Gold was at $47.63, jumping $0.46, or 0.98 percent.

Pulte (PHM) (DHI) (TOL) (MDC) (RYL) Trade Up as Pending Home Sales Plunge

Home builders D.R. Horton Inc (NYSE:DHI), Toll Brothers Inc (NYSE:TOL), M.D.C. Holdings Inc. (NYSE:MDC), The Ryland Group Inc (NYSE:RYL) and Pulte Group Inc (NYSE:PHM) shrugged off the news pending sales of existing homes in the U.S. fell, as the majority of them were up strong on the day.

Before we get into the numbers, the reason the home builders weren't affected, and are up strong, is recently released data which showed newly built home sales rose in April 7.3 percent, to a seasonally adjusted annual rate of 323,000. Those numbers exceeded expectations.

Pending home sales in the U.S. plummeted by 11.6 percent in April, far worse than expected, and sending shivers through the financial sector, which is some cases attempted to spin it as a positive and irrelevant. Of course if the numbers had shown strength, it would have been considered confirmation of an economic recovery.

The index, which measures the number of contracts signed to acquire previously owned homes in the U.S., plunged to a reading of 81.9, from a downwardly revised reading of 92.6 in March. The figure remained 26.5 percent under the cyclical peak of 111.5 in April 2010 when those looking for home were hurrying to take advantage of federal tax credits in the U.S.

RBC Capital Markets Senior U.S. Economist Jacob Oubina noted, "This paints a picture for existing home sales to fall back below the 5 million mark as pending home sales lead existing home sales by one to two months. There was absolutely nothing positive in this report. Housing remains in a depression right now. People are talking about a double-dip, but we never even recovered."

This is one of the more honest statement I've heard made about the sector. It also is accurate about the overall economy as well.

The financial press has been largely absent and derelict in its reporting on the economy, as seems they simply don't want to point out the disaster that Obama's policies have led to.

As mentioned, the housing market isn't in a double-dip, there has never been a recovery.

D.R. Horton Inc. was trading at $11.95, gaining $0.14, or 1.19 percent, as of 12:12 PM EDT. Toll Brothers Inc. was at $21.18, up $0.29, or 1.39 percent. M.D.C. Holdings Inc. was trading at $26.87, rising $0.48, or 1.82 percent. The Ryland Group was at $17.76, jumping $0.27, or 1.54 percent. Pulte Group Inc was trading at $8.11, climbing $0.25, or 3.18 percent.

Exxon (XOM) (BP) (COP) (MRO) Climb While Oil Futures Pull Back

Exxon Mobil (NYSE:XOM), ConocoPhillips (NYSE:COP), BP (NYSE:BP) and Marathon Oil all closed up Thursday, even as oil futures pulled back after jumping over $101 a barrel on Wednesday.

Obama's economy continues to fall apart as first-time unemployment claims increased by about 10,000, far above the expected decline of 4,000 economists had been looking for. That is a seasonally adjusted 424,000 for the week ended May 21.

The growth rate of the U.S. economy was also worst than expected, growing at an anemic 1.8 percent rate in the first quarter, plunging from the 3.1 percent growth rate in the fourth quarter, and below the 2.2 percent economists projected.

The U.S. Labor Department also upwardly revised initial unemployment claims from the last report.

All of this affected oil prices, as oil futures closed lower Thursday. Light, sweet crude for July delivery settled down $1.09, or 1.1 percent, to $100.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up 12 cents, or 0.1 percent, to $115.05 a barrel.

Front-month June reformulated gasoline blendstock, settled up 3.21 cents, or 1.1 percent, to $3.0483 a gallon. June heating oil was up 0.26 cent, or 0.1 percent, to $2.9829 a gallon.

With the Memorial Day weekend coming in the U.S., which usually involves heavy travel and usage of gasoline in vehicles, it probably offset the slightly lower price of oil and gas heading into the summer months.

Marathon closed Thursday at $53.58, gaining $0.82, or 1.55 percent. BP ended the day at $45.38, up $0.67, or 1.50 percent. Exxon Mobil closed at $82.39, climbing 0.43, or 0.52 percent. ConocoPhillips ended the session at $72.34, rising $0.37, or 0.51 percent.

Barrick (ABX) (GFI) (GG) (NEM) Close Up Even as Gold Settles Slightly Down

Shares of Barrick Gold (NYSE:ABX), Gold Fields (NYSE:GFI), Goldcorp (NYSE:GG) and Newmont Mining all closed up on Thursday, even as gold prices traded slightly down.

Gold for June delivery declined $3.90, or 0.3 percent, to $1,522.80 an ounce.

Gold for August delivery was down $4.10, or 0.3 percent, to $1,523.70 an ounce in the Comex division of the New York Mercantile Exchange.

July silver fell 31 cents to settle at $37.33 an ounce, lower by 0.8 percent.

Trading was light as we approach Memorial Day weekend in the United States.

The U.S. dollar was weaker, as was economic data, but it wasn't enough to push up the price of gold, while other metals traded mixed.

First-time jobless claims were up again last week, jumping 10,000 remain above the 400,000 mark.

Barrick Gold closed at $47.12, rising $0.31 or 0.7 percent. Gold Fields ended at $16.10, up $0.27 or 1.7 percent, to . Goldcorp closed at $49.76, gaining $0.22 or 0.4 percent. Newmont Mining ended the session at $55.61, jumping $0.40 or 0.7 percent.

iShares Silver Trust (SLV) Pulls Back as Silver Drops

Shares of iShares Silver Trust (SLV) dropped after a couple of days of robust increases in silver prices of about 3 percent during that time.

July silver was down 31 cents to settle at $37.33 an ounce, a 0.8 percent plunge.

Gold futures were also down a little Thursday, even in the midst of the falling value of the U.S. dollar and weak economic news.

Gold for June delivery fell $3.90, or 0.3 percent, to $1,522.80 an ounce.

Gold for August delivery dropped $4.10, or 0.3 percent, to $1,523.70 an ounce in the Comex division of the New York Mercantile Exchange.

iShares Silver Trust closed the day at $36.51, falling $0.41, or 1.11 percent. Volume was relatively light in comparison to its daily 3-month average.

Thursday, May 26, 2011

Ratings on (ORCL) (NETL) (NTAP) (CNH) (FITB) Upgraded

Ratings on shares of Oracle (NASDAQ: ORCL), NetLogic Microsystems, Inc. (NASDAQ: NETL), NetApp Inc. (NASDAQ: NTAP), CNH Global (NYSE: CNH) and Fifth Third Bancorp (NASDAQ: FITB) were upgraded by analysts today.

ThinkEquity upgraded Oracle (ORCL) from a “hold” rating to a “buy” rating. They have a price target of $40.00 on the company.

Raymond James (NYSE:RJF) upgraded NetLogic Microsystems, Inc. (NETL) from a “market perform” rating to an “outperform” rating. They have a price target of $40.00 on the company.

BMO Capital Markets upgraded NetApp Inc. (NTAP) from a “market perform” rating to an “outperform” rating. They have a price target of $65.00 on the company.

UBS AG (NYSE:UBS) upgraded CNH Global (CNH) from a “neutral” rating to a “buy” rating.

Sanford C. Bernstein upgraded Fifth Third Bancorp (FITB) from a “market perform” rating to an “outperform” rating.

Ratings Updates for (CVX) (PTR) (STP) (GPRO) (AWR) from Analysts

Analysts made several changes or updates on ratings and price targets for Chevron (NYSE: CVX), Petrochina (NYSE: PTR), Suntech Power (NYSE: STP), Gen-Probe Incorporated (NASDAQ: GPRO) and American States Water Company (NYSE: AWR) today.

Jefferies (NYSE:JEF) reiterated a “buy” rating on shares of Chevron (NYSE: CVX).

Jefferies initiated coverage on Petrochina (NYSE: PTR). They placed a “buy” rating on the company.

Ardour Capital cut their price target on Suntech Power (NYSE: STP) from $10.00 to $7.50. They have a “hold” rating on the company.

JPMorgan Chase & Co. (NYSE:JPM) downgraded Gen-Probe Incorporated (NASDAQ: GPRO) from an “overweight” rating to a “neutral” rating. They have a price target of $85.00 on the company.

Ladenburg Thalmann initiated coverage on American States Water Company (NYSE: AWR). They placed a “buy” rating and a price target of $38.00 on the company.

Ratings on (AEO) (AGCO) (ARO) (BKD) (BLUD) Upgraded by Analysts

Ratings on shares of American Eagle (NYSE: AEO), AGCO Corp. (NASDAQ: AGCO), Aeropostale, Inc. (NYSE: ARO), Brookdale Senior Living, Inc. (NYSE: BKD) and Immucor, Inc. (NASDAQ: BLUD) were upgraded by analysts.

FBR Capital upgraded American Eagle (NYSE: AEO) from a “market perform” rating to an “outperform” rating. They have a price target of $17.00 on the company.

UBS AG (NYSE:UBS) upgraded AGCO Corp. (NASDAQ: AGCO) from a “neutral” rating to a “buy” rating. They have a price target of $60.00 on the company.

FBR Capital upgraded Aeropostale, Inc. (NYSE: ARO) from an “underperform” rating to a “market perform” rating. They have a price target of $20.00 on the company.

Goldman Sachs (NYSE:GS) upgraded Brookdale Senior Living, Inc. (NYSE: BKD) from a “neutral” rating to a “buy” rating.

RBC Capital upgraded Immucor, Inc. (NASDAQ: BLUD) from a “sector perform” rating to an “outperform” rating. They have a price target of $25.00 on the company, up from $19.00.

Joy Global (JOYG) Pushes Up on Stronger Commodity Performance

Mining equipment manufacturer Joy Global (NASDAQ:JOYG) is enjoying a boost in share price as the commodity sector has been strengthening and demand for its products and services remain strong.

The Board of Directors of Joy Global Inc. declared a quarterly common stock dividend of $0.175 per share payable 6/20/11 to shareholders of record at the close of business on 6/6/11.

Joy Global Inc., which participates in the manufacture and servicing of mining equipment for use in commodity production for coal, copper and iron ore, among others, closed Wednesday at $87.27, gaining $1.31, or 1.52 percent.

The company traded in a fairly wide range of $85.18 to $87.99. Volume was close to the 3-month daily average.

In after hours trading the company gained another $0.39, or 0.45 percent, reaching $87.66 a share.

Exxon (XOM) (COP) (CVX) Close Up as Oil Breaks $100 a Barrel

For the first day this week oil prices broke the $100 mark a barrel, sending the share prices of energy giants Exxon Mobil (NYSE:XOM), Conoco (NYSE:COP) and Chevron (NYSE:CVX) up by the end of the session.

Light sweet crude oil for July delivery jumped $1.73 to settle at $101.32 a barrel and July Brent crude climbed by $2.40 to settle at $114.93.

Also strengthening oil prices was a report from the Department of Energy on Wednesday saying U.S. commercial crude inventories rose by 600,000 barrels in the week ended May 20 against an expected 1.3 million barrel fall in crude stocks.

Gasoline inventories was up by 3.8 million barrels last week against an estimated 300,000 barrel jump.

Chevron closed at $103.25, gaining $0.98, or 0.96 percent. Exxon closed at $81.96, up $0.67, or 0.82 percent. ConocoPhillips ended the session up slightly at $71.97, rising $0.06, or 0.08 percent.

Wednesday, May 25, 2011

GT Solar (SOLR) Has Best Outlook for Solar

Even though GT Solar International Inc. (NASDAQ: SOLR) has been getting positive press and outlooks, it isn't enough to overcome the overall negative pressures on the overall solar sector, as demand continues to dry up and price competition pressures margins.

That didn't stop Brean Murray analysts from raising its price target on GT Solar from $15.00 to $18.00, while having a "Buy" rating on the company.

Wunderlich Securities Inc. also said in a note that GT Solar is “the most profitable public equipment company,” which they believe makes them "a great acquisition target," according to analyst Theodore O’Neill.

O'Neill also has a "Buy" rating on the solar company.

GT Solar Chief Executive Officer Thomas Gutierrez said on an analyst call, “We expect to further diversify our product portfolio in the areas of monocrystalline silicon, other crystal growth technologies and consumables.”

That is expected to generate revenue for the company some time in 2013.

As for the solar industry, pressure is primarily coming from the major market of Europe, where Germany, Italy, Spain and France are cutting back on incentives in the sector.

GT Solar was trading at $11.58, falling $0.42, or 3.49 percent, as of 2:08 PM EDT.

Halliburton's (HAL) Improved Outlook Bodes Well for Sector

Shares of Halliburton (NYSE:HAL) have been getting a nice bump after the company announced its business in North America is strong and Morgan Stanley (NYSE:MS) boosted its rating on the company.

Chief Financial Officer Mark McCollum said at the UBS Global Oil and Gas Conference that its North American business is “very robust” and is continuing to grow stronger.

Morgan Stanley (NYSE:MS) responded to the comments by upgrading Halliburton from an "Equal Weight" to an "Overweight." They have a price target of $85 on the energy giant.

Other analysts responding included those at Tudor Pickering Holt, which said the comments appear to point to a solid second quarter and should give some of the smaller companies in the sector a solid upward push, especially those that are "relatively cheap."

Halliburton was trading at $49.20, gaining $1.70, or 3.58 percent, as of 12:53 PM EDT.

Price Targets on (KWK) (SU) (TLM) (TSO) (UPL) (VLO) Updated by Goldman Sachs (GS)

Goldman Sachs (NYSE:GS) updated its price targets on energy companies, including Quicksilver Resources Inc (NYSE: KWK), Suncor Energy Inc. (NYSE:SU), Talisman Energy Inc (NYSE: TLM), Tesoro Co. (NYSE: TSO), Ultra Petroleum Corp. (NYSE: UPL) and Valero Energy Co. (NYSE: VLO).

Goldman Sachs raised their price target on Quicksilver Resources Inc (KWK) to $17.00.

Goldman Sachs raised their price target on Suncor Energy Inc. (SU) to $63.00.

Goldman Sachs cut their price target on Talisman Energy Inc (TLM) to $26.00.

Goldman Sachs raised their price target on Tesoro Co. (TSO) to $27.00.

Goldman raised their price target on Ultra Petroleum Corp. (UPL) to $52.00.

Goldman raised their price target on Valero Energy Co. (VLO) to $28.00.

Schlumberger (SLB) Jumps on Higher Crude Prices

Shares of Schlumberger Ltd. (NYSE:SLB) closed up Tuesday as oil prices moved up again, as Goldman Sachs (NYSE:GS) and others up their outlook for crude prices.

Light sweet crude oil for July delivery was up $1.89 to settle at $99.59 a barrel. Brent crude oil for July delivery rose $2.35 to $112.45 a barrel.

Another factor was the weakening dollar again, as the euro increased 0.5 percent at $1.4113, bolstering its buying power for oil.

Goldman increased it estimate for Brent crude from $105 to $120 a barrel for 2011, and for 2012 Goldman raised it from $120 to $140 a barrel.

Schlumberger Ltd. (SLB), which supplies technology, integrated project management, and information solutions to the oil and gas industry around the world, closed Tuesday at $83.28, gaining $1.20, or 1.46 percent.

An ex-dividend is coming on May 27, 2011 for shareholder. Schlumberger pays a quarterly dividend of $0.25, with a yield of about 1.19 percent.

Ex-Dividend for Barrick (ABX) (ACI) (AEM) (CMP) (ZEUS) is May 27

The ex-dividend date for Barrick Gold Corporation (NYSE:ABX), Arch Coal Inc. (NYSE:ACI), Agnico-Eagle Mines (NYSE:AEM), Compass Minerals International Inc. (NYSE:CMP) and Olympic Steel (NASDAQ:ZEUS) is May 27.

Barrick Gold Corporation (ABX) pays a dividend of $0.12 with a yield of 1.06 percent.

Arch Coal Inc. (NYSE:ACI) pays a dividend of $0.11 with a yield of 1.50 percent.

Agnico-Eagle Mines (NYSE:AEM) pays a dividend of $0.16 with a yield of 1.02 percent.

Compass Minerals International Inc. (NYSE:CMP) pays a dividend of $0.45 with a yield of 1.93 percent.

Olympic Steel (NASDAQ:ZEUS) pays a dividend of $0.02 with a yield of 0.27 percent.

Tuesday, May 24, 2011

Penn Virginia (PVA) Upgraded by SunTrust (STI)

Shares of Penn Virginia (NYSE: PVA) were upgraded by SunTrust (NYSE: STI) from a "Neutral" rating to a "Buy" rating.

SunTrust cited its proposed increase in production of liquids at Eagle Ford as the catalyst behind their call. They have a price target of $20 on the

Liquids is a highly profitable product.

Penn Virginia is a oil and gas exploration and production company.

Penn was trading at $14.34, gaining $0.42, or 3.02 percent, as of 2:27 PM EDT.

Rosetta (ROSE) Rating Upgraded by Susquehanna

Shares of Rosetta Resources Inc. (NASDAQ: ROSE) were upgraded by Susquehanna today from a "Neutral" rating to a "Positive" rating.

They also boosted their price target on Rosetta from $50 to $57.

Susquehanna cited the operations of the company at Eagle Ford Gates Ranch as the catalyst behind their ratings and price target upgrade.

Rosetta Resources Inc. participates in the acquisition, exploration, development, and production of oil and gas properties in the United States.

Rosetta was trading at $46.19, gaining $1.78, or 4.01 percent, as of 2:12 PM EDT.

Carrizo's (CRZO) Rating Upgraded by Wells Fargo (WFC)

Wells Fargo & Co. (NYSE:WFC) upgraded Carrizo Oil & Gas (NASDAQ: CRZO) from a “Market Perform” rating to an “Outperform” rating.

The giant bank lowered their 2011 EPS estimate on Carrizo from $1.93 to $1.90, while raising its 2012 EPS estimate from $5.60 to $5.76.

"As the company shifts its focus from the Barnett towards the emerging Eagle Ford, Marcellus, and Niobrara plays, we believe Carrizo will see an impressive production growth profile over the next few years while changing the production mix to be more weighted towards liquids. We believe this growth coupled with cash flow to cover anticipated capital needs will drive shares to Outperform peers," said Wells.

Carrizo Oil & Gas, Inc. participates in the exploration, development, production, and transportation of oil and natural gas, most in the United States.

Carrizo shares are jumping today, trading at $37.06, gaining $2.58, or 7.48 percent, as of 2:01 PM EDT.

Yingli (YGE) Gets Some Sun from Citigroup (C)

China-based solar company Yingli Green Energy Hold. Co. Ltd. (NYSE: YGE) received a sunnier outlook from Citigroup (NYSE: C) analysts, who upgraded the company from a "Sell" rating to a "Hold" rating, although it didn't do much to sway the market, which continues to punish the weakened and crumbling solar sector.

Citigroup however did lower its price target on Yingli Green Energy from $11.00 to $9.75, pressuring the share price of the company downward.

Yingli Green Energy Holding Company Limited participates in the design, development, marketing, manufacture, installation, and marketing of photovoltaic products in China and around the world.

Yingli closed Monday at $8.80, falling $0.25, or 2.76 percent.

CF (CF) Gets Fertilized by JPMorgan (JPM)

CF Industries Holdings Inc (NYSE: CF) got some rating fertilizer from JPMorgan (NYSE:JPM) and shares in the company soared.

JPMorgan upgraded CF from a "Neutral" rating to an "Overweight" rating, placing a price target of $170 on the fertilizer company.

The overall sector received a boost, which also helped CF, as Citibank (NYSE:C) said they see the industry being able to successfully raise fertilizer prices, which will also help CF competitors Potash Corp. (NYSE:POT), Agrium (NYSE:AGU) and Mosaic (NYSE:MOS).

For CF specifically, JPMorgan said the positive outlook for the agriculture sector and the healthy cash flow of CF is the catalyst behind their upgrade.

Higher crop prices should stimulate the fertilizer sector and open farmers' wallets without too much trepidation.

CF Industries closed Monday at $147.75, soaring $8.69, or 6.25 percent.

BP (BP) Gets Rating Upgrade from Societe Generale

Analysts at Societe Generale upgraded oil giant BP (NYSE:BP) from a "Hold" rating to a "Buy" rating.

The primary reason for the upgrade is the confirmation BP won't be bearing the sole responsibility for the Gulf oil spill, after partner Mitsui agreed to pay a portion of the clean up costs. Anadarko (NYSE:APC) is expected to join in sharing the financial responsibility soon.

Anadarko holds a 25 percent stake in the failed Macondo well with Mitsui holding the remaining 10 percent. BP owns the other 65 percent.

Expectations legal liabilities will be the next area the two companies will have to come to an agreement with BP on, which should raise the outlook for the BP, as they a lot of the negative outlook already built into the price.

BP closed Monday at $44.03, falling $0.97, or 2.16 percent.

Monday, May 23, 2011

AK Steel (AKS) Gets Upgrade from Morgan Stanley (MS)

Morgan Stanley (NYSE:MS) likes the outlook for the overall steel sector, and AK Steel Holding Co. (NYSE: AKS) specifically, as it raised its rating on the steel producer from an "Overweight" rating to an "Equal Weight" rating. They have a price target of $24 on the company.

"AK Steel is turning the corner, and earnings power is not priced in: While shares across the steel space have become cheap as a result of the recent correction, we see significant value upside in AKS shares, in particular (70% to our PT of $24). Our mid-cycle EBITDA estimate is 30% higher than what is discounted in the shares on our view that benefits from sustainable cost cuts, a lesser impact from iron ore costs, and improving margins in the company’s key electrical steel business have gone unnoticed," said Morgan Stanley.

Concerning EPS, they said, "We are raising our estimates by 30% in 2011 and 20-40% in 2012-13; we are now 15-40% above consensus in 2011-12 and 75% above in 2013. Our $24 price target is based on 10x 2012e EPS, and 5.0x our mid-cycle EBITDA estimate of $131/t."

It's hard to believe this scenario will be the one to play out, as it's far above consensus estimates, and is the best of the best case scenarios if it is to become a reality.

Most steel industry watchers see a slow five-year period for the sector and pressure on the steel industry for some time.

AK Steel Holding closed at $14.08, falling $0.05, or 0.35 percent.

Teekay Tankers Ltd. (TNK) Retain "Buy" Rating from Sterne Agee

Analysts at Sterne Agee reiterated a "Buy" rating on Teekay Tankers Ltd. (TNK).

The board of directors of the company also recently declared a quarterly dividend of 25 cents per share, an approximate 14 percent over its prior dividend. That gives shareholders about a 10 percent yield.

In its most recent quarter losses for January-March widened to $29.7 million, or 41 cents a share, from $14.0 million, or 19 cents a share, last year in the same quarter.

Sterne Agee has a price target of $45 on the company.

Teekay Tankers closed Friday at $9.19, falling $0.12, or 1.29 percent.

Friday, May 20, 2011

Goldcorp (GG) Attracts Positive Analyst Attention

A number of analysts commented on different aspects of Goldcorp (NYSE:GG) recent, with the majority of them taking on a bullish tone.

JPMorgan (NYSE:JPM) recently boosted its price target on Goldcorp from $60 to $68.

Deutsche Bank (NYSE:DB) also recently upgraded Goldcorp from a "Hold" rating to a "Buy" rating.

Also upgrading the gold mining giant was HSBC (NYSE:HBC), which boosted the company from a "Neutral" to an "Overweight."

Goldcorp Inc. participates in the acquisition, exploration, development, and operation of precious metal properties in North and South America.

Goldcorp closed Thursday at $48.36, dropping $0.29, or 0.60 percent.