First Horizon selling research unit
Posted on October 1, 2009 at 8:01 am
First Horizon has agreed to sell its FTN Equity Capital Markets unit to Point Capital Partners, a New Jersey investment firm. Disposing of the unit, which includes a West End office, means Memphis-based First Horizon will take a $14 million charge.
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Money manager: Look for HealthSpring to surprise
Posted on September 22, 2009 at 7:52 amGeorgia-based investment manager Zach Scheidt says investors worried about HealthSpring’s rising medical losses should instead look at the company’s cash pile and growing market as more powerful catalysts. He sees the stock (Ticker: HS) almost doubling in the coming year.
Assuming flat physician fees over the next 12 months, and relatively conservative enrollment levels, the company should maintain stable profitability in 2010. It seems that the expectations are a bit overly conservative and any pleasant surprises could quickly lead to margin expansion. I think that at some point over the next 12 months, we should see the stock reach a multiple of 12 which would represent a price of $26.
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Insider sales flash warning signs
Posted on September 8, 2009 at 7:11 amA piece on the relatively high number of insider stock sales at health care companies (including Community Health Systems) throws out a worrisome statistic about the broader market.
Such sales may also reflect an attempt to time the market. TrimTabs research shows that for stocks in general, the ratio of insider selling to insider buying reached 30.6 in August — the highest since the firm started tracking the data in 2004.
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A brightening outlook for tire makers
Posted on August 14, 2009 at 7:03 am
Morningstar analyst Joung Park says “beleaguered U.S. consumers are deferring tire replacements” during the recession. But once they find the cash to get new rubber for their rides, the industry — including Nashville-based Bridgestone, which isn’t examined here — will have a better time of it.
… [W]e believe that this pent-up replacement-tire demand will be released in the near future, likely in 2010 and 2011. We believe this confluence of contracting supply and rebounding demand for replacement tires will provide a temporary spike in profitability for Cooper and Goodyear by raising plant-utilization rates and tightening tire availability, thereby supporting pricing. In addition, falling raw-material costs could provide an additional boost to industry bottom lines.
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Local pharma firm’s IPO ‘couldn’t come at a worse time’
Posted on August 10, 2009 at 12:30 pm
Brian Laegeler at Morningstar says Cumberland Pharmaceuticals’ chances of successfully carrying out its post-IPO acquisition plans are slim. The Nashville-based company is expected to raise $100 million this week, but Laegeler sees higher costs ahead.
In our view, there couldn’t be a worse time for a small drug company to launch an acquisition program. Most big and specialty pharma companies we cover are desperate to rebuild sparse pipelines and have access to piles of cash. It’s highly unlikely that Cumberland, with its limited resources, will attract a sizable or promising opportunity for a reasonable price.
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Signal Hill hires Baltimore analyst
Posted on August 4, 2009 at 9:16 amMaryland-based investment house Signal Hill, which is in the process of opening its first local beachhead, has hired high-end Bank of America analyst T.C. Robillard Jr. Previously based out of BofA’s New York office, Robillard covers private corrections and business services.
Prior to joining Signal Hill, Mr. Robillard was the Head of the Business Services research team for Bank of America Securities, with responsibility for all sub-sectors, including Corrections, Facility Management, Staffing, CRM/BPO, Consulting/Advisory and Information Services. Before joining BOA, he was a senior research analyst with Chilton Investment Company, where he was responsible for generating investment ideas and providing industry analysis across the Wireless Equipment, IT Services, and Outsourcing & Transaction Processing sectors.
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Analyst: Pinnacle a buy if you can stomach the risk
Posted on July 28, 2009 at 12:40 pm
Mark Muth at Howe Barnes says investors with a longer time horizon can now jump into Pinnacle Financial, which is wrestling with a deteriorating commercial loan portfolio.
Ultimately, we believe multi-year holders of the stock will look back on current levels as a favorable entry point once the credit issues have dissipated; however, given the significant near-term uncertainty regarding the credit outlook, we would remain on the sidelines for now and await improved credit/earnings power visibility.
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Avondale adds another high-end analyst in Beantown
Posted on June 8, 2009 at 9:38 amWell-known analyst Kemp Dolliver has joined the Avondale team. Dolliver, who will serve as a senior research analyst and managing director covering health care services, joins the firm from Cowen & Co.
Dolliver brings more than 20 years of sell- and buy-side experience to his position. The Wall Street Journal has recognized him four times in its Best on the Street survey for stock-picking, including the most recent edition released last month. He has built a long track record of unique insights, including forecasting consolidation between pharmacy benefit managers (PBMs) and retail drug stores.
Dolliver joins Avondale from Cowen and Company, based in Boston, where he was senior analyst and managing director responsible for the healthcare providers sector. Prior to Cowen, he was at TradeStreet Investment Associates, part of NationsBank Corp. He joined NationsBank from Aetna Life & Casualty Company, where he was a securities analyst for six years. He also was an investment banker for Dean Witter Reynolds Inc., specializing in mergers and acquisitions.
Late last month, Avondale’s Boston office added another senior research analyst.
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