BetterTrades
(Best) TEVA, MDT, AU (Worst) AEE, DB, MBT from Better Trades
February 17, 2009
Top 3 Stocks
TEVA – Teva Pharmaceutical Industries Ltd.
Bucking the overall trend of the markets today was Teva Pharmaceutical Industries Ltd. (TEVA), which saw its stock add nearly 5% by early afternoon , despite posting a quarterly loss before the markets opened today.
Engaged in the development, manufacturing, and marketing of generic pharmaceuticals, Teva announced their 4Q results earlier today, stating that the company posted a loss of $688M, or $0.88 per share, versus a profit of $570M or $0.69 per share from a year ago. However, taking out the acquisition costs for Barr Pharmaceuticals Inc, Teva would have posted quarterly earnings of $0.76 per share.
Meanwhile, revenues for the company advanced from $2.58B to $2.85B in the period, an increase of more than 10%. Analysts, on average, were looking for Teva to record net income of $0.73 per share on total sales of $2.94B.
Looking ahead, the company believes that by the end of 2009, earnings per share should range between $3.20 and $3.40 per share, excluding one-time items, with revenues coming in between $14.1B and $14.6B. Analysts are expecting yearly earnings of $2.89 per share on total sales of $15.21B.
Heading into the close, shares of TEVA were up 4.4%, adding $1.95 to trade at $45.97 per share. Over the past year, the company’s stock has ranged between $35.89 and $50.00 per share.
MDT – Medtronic Inc.
Another company benefiting from a positive earnings release this morning was Medtronic Inc. (MDT), which saw their quarterly profits increase year-over-year, as hefty charges were not incurred this year, as they were in the past year.
As one of the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain, the company’s main products include those for bradycardia pacing, tachyarrhythmia management, and arterial fibrillation management.
For the period, MDT posted a profit of $723M, or $0.65 per share, up substantially from last year’s earnings of $77M, or $0.07 per share. Excluding charges, MDT posted earnings of $0.71 per share as overall revenues increased from $3.41B to $3.49B. Analysts, in the meantime were expecting Medtronic to post earnings of $0.70 per share on total revenues of $3.51B.
Shares of MDT were trading higher during the afternoon session, adding $1.90, or 5.8%, to trade at $34.69 per share. During the past 52 weeks, shares of Medtronic have traded between $28.33 and $56.97 per share.
AU – AngloGold Ashanti Ltd.
One of the largest gold producers in the world, with current reserves estimated at 126 million ounces, AngloGold Ashanti Ltd. (AU), currently has operations in six countries on three continents, as well as exploration activities in ten countries.
For the duration of today’s trading session, shares of AU were in positive territory heading into the close, as investors shrugged off a less-than-stellar earnings report last week. Although the company posted a $1B loss, or $0.25 per share, early last week, the company assured their stockholders that the upcoming year would prove to be profitable.
With that, the company is expecting to produce between 4.9 million and 5.0 million ounces of gold for 2009, with total production costs of that gold ranging between $435 and $450 per ounce. With the price of gold trading at $969 per troy ounce, that should provide the company with substantial profit margins.
Trading into the final hour of trading, shares of AU were up nearly 5%, gaining $1.38 to trade at $31.01 per share. Shares of the South African-based company have traded between $13.37 and $40.91 per share over the past year.
Worst 3 Stocks
AEE – Ameren Corp
Coming off a disappointing earnings release after the closing bell on Friday, Ameren Corp. (AEE) posted a sharp decline in their 4Q as higher fuel costs, operating costs and maintenance costs all cut into the company’s bottom-line.
As a provider of energy, servicing customers in Missouri and Illinois, Ameren recorded a net profit of $57M, or $0.27 per share, compared to a profit of $108M, or $0.52 per share from a year ago, a decline of more than 47%. Despite write-downs totaling $0.18 per share, Ameren posted higher quarterly sales this year, $1.91B, than they did last year, $1.81B, an increase of more than 5%.
Analysts, in the meantime, were looking for the energy utility company to post quarterly earnings of $0.36 per share on overall sales of $2.26B. Posting a 9% decline in year-over-year earnings, the company also announced that they were paying a dividend of $0.385 on March 31, totaling $1.54 per share for 2008, down more than 39% from 2007 dividends of $2.54 per share.
By late afternoon, shares of Ameren were down more than 17%, losing $5.46 to trade at $26.52 per share. Shares of AEE have ranged between $25.51 and $48.39 per share over the past year.
DB – Deutsche Bank
One of the leading international financial service providers offering customers a broad range of modern banking services, Deutsche Bank AG (DB), saw its shares fall more than 12% during today’s trading session.
On the Frankfurt exchange, shares of DB:DBK, were down 5% at the close. The stock’s shortfall in today’s trading could be attributed to a statement from a JP Morgan analyst that cited that the bank might need an additional $6.4B worth of capital in order to offset unrealized losses in the company’s Deutsche Postbank.
The analysts went on to add that Deutsche Bank currently has $5.76B in unrealized losses and that Credit Suisse Group (CS), would be the bank of choice in Europe, as the company possesses a solid capital position, while taking great strides towards restructuring their investment banking operation in order to generate positive cash flows.
Throughout the session, shares of Deutsche Bank were down 13.6%, losing $3.93 to trade at $24.98 on the New York Stock Exchange. DB shares have traded between $21.13 and $122.98 per share over the past 52 weeks.
MBT – Mobile Telesystems OJSC
Providing mobile telecommunications services in Russia, the Ukraine, Uzbekistan, Turkmenistan, and Armenia, Mobile Telesystems (MBT) provides network access services, such as mobile cellular voice and data communication services to its subscribers on various plans.
During Tuesday’s session, shares of MBT plunged more than 13% as a report released by Moody’s warned investors that the economic collapse within Eastern Europe could result in companies posting huge losses for those that are exposed to those economies.
Over the past year, shares of MBT have traded within a range of $18.36 and $89.24 per share. Leaning towards its lower end, shares of Mobile Telesystems dropped $3.67, or 13.9%, to trade at $22.74 per share.
2009 Better Trades Article
brought to you by
BRIAN MULLIN
