Merrill Lynch's Short List
Merrill Sees Sell Opportunity in Lam Research
He (Hodess) sees profits for the fiscal year ending June 2007 of $4.50 a share, versus $2.34 last year, but declining to $3.60 in fiscal 2008. Hodess rates the stock Neutral.
That's why the fool rated it "neutral" I don't recall Hodess sticking his neck out for LRCX making a bullish call - another analyst without clothes... they cut the air with their big scissors, and sewed with needles without thread. ... Never before had the emperor's clothes been such a success...
Posted on Jan 3rd, 2007 with stocks: LRCX
Eric Savitz (Barron's) submits: Merrill Lynch’s Brett Hodess today asserted that “there may be some significant short-term pressure in early 2007" on shares of Lam Research (LRCX) “as fund managers rationalize/re-balance portfolios.” He notes that Lam was up 42% in 2006, versus a 2.2% decline by the Philadelphia Semiconductor Index (the SOX) and an average 19% gain by other large cap semiconductor and equipment stocks.
That said, Hodess contends the company’s “excellent execution and strategy” should produce improving earnings despite a relatively flat semiconductor equipment spending environment. He sees profits for the fiscal year ending June 2007 of $4.50 a share, versus $2.34 last year, but declining to $3.60 in fiscal 2008. Hodess rates the stock Neutral.
This morning, with the Nasdaq in rally mode, Lam shares are ahead 51 cents, at $51.13.
Posted on Jan 5th, 2007 with stocks: AG, DTV, GM, GYMB, KSS, LMT, LRCX, MENT, PCAR, SNPS, SWY, TEX, VCLK
Wall Street Select submits: If you are looking for possible short candidates, you might want to investigate Merrill Lynch’s (MER) list of stocks poised to move lower.
From the report:
“There are two major reasons for the potential pullback. First, the reversal of ‘window dressing.’ That is, investment managers may hold stocks with the biggest gains until year-end year to indicate that the fund participated in the biggest winners of the year. Second, investment managers may wait until January to exit best performing stocks to avoid short-term capital gains.”
Here are the stocks that make up the list and the price when the call was made:
merrilllynchrunisdone
The list above reflects the personal views of Savita Subramanian from Merrill Lynch.
Merrill Lynch Methodology
Our understanding of Merrill Lynch methodology was to screen stocks in the S&P 1500 by the following criteria:
# Outperformance in 2006: performed at least twice as well as its respective
# S&P 1500 sector between 12/31/2005 and 12/18/2006.
# Fundamental Outlook: NEUTRAL or SELL rated by Merrill Lynch
# Fundamental Research, where ML fundamental analyst’s outlook does not appear to offset a potential seasonal sell-off. |
