College Stock: Penny Stock News

Source: Minyanville.com, Justin Sharon, August 31, 2010 8:40 AM EST

Stocks dropped on the lowest trading volume of 2010, with the Dow tumbling 140.92 after July personal incomes increased less than expected by the nation’s number crunchers. (We will soon be able to test out the old expression that economists were created to make weathermen look good, for The Farmers’ Almanac made its own predictions on Monday.) Meanwhile personal spending rose 0.4% last month, though no thanks to New York’s billionaire mayor who took all of $2 out of his pocket to feed Britain’s visiting Prime Minister. (See The Kids of Business Icons: Emma and Georgina Bloomberg.) Warren Buffett turned 80, doubtless reflecting on the age old conundrum that when you’re young you have time and no money, and when you’re old you have money and no time. Unless, of course, you are a watchmaker answering to the name of Fossil (FOSL), which yesterday gained $1.94 to an all-time high.

If Omaha’s Oracle was indeed thinking such Zen thoughts while in yoga class, rest assured he would have been smart enough to avoid doing so outfitted in apparel from Lululemon Athletica (LULU), which tumbled 10.22% on an analyst downgrade. Elsewhere the Outer Banks found itself in the eye of the storm, Bank of America (BAC) slumped to a 13 month low and clothing retailer Jos. A Bank (JOSB) lost 4.07%. And while President Obama’s recent stroll down the fairway with a UBS (UBS) executive did nothing for shares of Adams Golf (ADGF), which nosedived 9.48%, it hasn’t hurt the Swiss bank, which scores an upgrade this morning. A busy data day in economics starts with June’s S&P/Case-Shiller home price index at 9:00AM Eastern. At 9:45AM we get the Chicago purchasing managers’ index followed 15 minutes later by the Conference Board’s consumer confidence survey, each for August. Finally, minutes to the 8/10 FOMC meeting are released at 2:00PM. On the corporate front earnings are expected out of Carrefour, Dollar General (DG), DSW Inc (DSW), Hermes International, and Lukoil.

Initiations

Ameresco (AMRC): The stock is initiated with a Buy and $18.50 price objective at Cantor Fitzgerald.

Ducommun (DCO): Brokerage Morgan Joseph rolls out Buy rated coverage on Ducommun and sets it a $25 price target. The company is expected to benefit from an increase in production rates on large commercial aircraft.

Insurance Stocks: Sterne Agee starts the Bermuda Reinsurance/Insurance group, giving Buys to Alterra Capital Holdings (ALTE) and Allied World (AWH). New Neutrals are assigned on AXIS Capital Holdings (AXS), Arch Capital Group (ACGL), Aspen Insurance Holdings (AHL), Montpelier Re Holdings (MRH), and Partner Re (PRE).

Camelot Information Systems (CIS): CIS gets picked up at Outperform by William Blair.

Seattle Genetics (SGEN): The stock is a new Buy at ThinkEquity. For a related story, see Genzyme’s Honey Won’t Be Sweet Enough for Sanofi.

Northwest Bancshares (NWBI): NWBI gets a fresh Outperform at FBR Capital.

Upgrades

Rio Tinto (RTP): RTP gets a Buy-from-Neutral boost at Bank of America/Merrill Lynch mainly on macro factors. The brokerage says “our economists believe double-dip fears are overdone.”

Tortoise Energy (TYY): Saying they see anecdotal support for a more bullish posture after $2.7 billion of Master Limited Partnership closed end fund capital was recently raised, Wunderlich takes Tortoise Energy to Buy from Hold.

Tortoise Energy Infrastructure (TGY): This stock also gets a Buy-from-Hold boost with Wunderlich as their shares have underperformed the Tortoise MLP Index total return of 19.3% year-to-date.

Methanex (MROH): MROH is moved to Strong Buy from Outperform with a $25 target price at Raymond James.

Comerica (CMA): The stock is now Outperform from Neutral ($42 target) by Robert Baird after recent price weakness.

Gap Inc (GPS): The retailer gets an Outperform-from-Market Perform upgrade with Wells Fargo.

NV Energy (NVE): NVE is hoisted to Buy from Hold at Wunderlich on a compelling valuation at under 10 times earnings.

Abercrombie & Fitch (ANF): BMO Capital increases Abercrombie & Fitch to Outperform from Market Perform. Also read Retail Reports Show Consumer Sector Remains Dark.

UBS AG (UBS): The bank is now Buy from Neutral at Nomura.

Codexis (CDXS): Piper Jaffray juices Codexis to Overweight from Neutral with a price objective of $12.

Downgrades

V.F. Corp (VFC): The stock is cut to Neutral from Overweight at Piper Jaffray.

Rackspace (RAX): The Benchmark Company reduces its Rackspace rating to Hold from Buy with a $22 target as potential acquirers have alternatives and the firm finds no reason to believe a sale is imminent.

CPFL Energia (CPL): UBS downgrades CPFL Energia to Sell from Neutral.

ASML Holding (ASML): The stock is downgraded to Hold from Buy by Deutsche Bank.

Green Plains Renewable Energy (GPRE): GPRE is now Neutral from Overweight at Piper Jaffray with an $11 objective.

Ross Stores (ROST): Piper Jaffray also reduces its Ross Stores recommendation to Neutral from Overweight. Its target is $52.