Stocks Featured in Zacks Equity Research Analyst Blog

Strategic Insights -

Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Recently featured stocks include Dow Chemical (NYSE: DOW), Rohm and Haas (NYSE: ROH), Intel Corp. (NASDAQ: INTC), Cache Inc. (NASDAQ: CACH), and Tyco Electronics, Ltd. (NYSE: TEL). These companies have faced various challenges, including the termination of a $17.4 billion joint venture, falling revenue, disappointing sales trends, and a near-term hold recommendation.

Key Takeaways:

  • Dow Chemical (NYSE: DOW) terminated its Kuwait basic chemicals joint venture (K-Dow) and plans to take legal actions against Petrochemical Industries Company (PIC). The cancellation affects a $15.4 billion acquisition of Rohm and Haas (NYSE: ROH).
  • Intel Corp. (NASDAQ: INTC) warned of falling revenue, anticipating levels not seen since the June 2006 quarter. The company solidifies its position in the higher-end server market, which is a key advantage.
  • Cache Inc. (NASDAQ: CACH) reported disappointing December sales, and management lowered EPS guidance for the fourth quarter. Macro headwinds continue to pressure consumer spending.
  • Tyco Electronics, Ltd. (NYSE: TEL) missed consensus revenue estimates but exceeded EPS expectations. Forward guidance is for a -16% to -19% sequential decrease in sales in Q1 due to lower volumes and restricted revenue growth.

Statistics:

  • $17.4 billion: The planned value of the terminated K-Dow joint venture.
  • $15.4 billion: The effect of the joint venture cancellation on the acquisition of Rohm and Haas (NYSE: ROH).
  • $7 billion: The amount of funding for Dow Chemical (NYSE: DOW) from the formation of the K-Dow joint venture.
  • $2.5 billion: The possible amount Dow may receive as a result of the cancellation, subject to change.
  • -16% to -19%: The expected sequential decrease in sales for Q1 2008 at Tyco Electronics, Ltd. (NYSE: TEL).

Sources:

  • Dow Chemical (NYSE: DOW)
  • Petrochemical Industries Company (PIC)
  • Zacks Equity Research
  • Zacks Investment Research, Inc.