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We believe the ease of once-daily administration (compared to 2x/day Combivir), solid safety profile, growing widespread scientific data, and low discontinuation rates, will drive strong sales of Truvada in 2005 and beyond.
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Our new CAP times excess return value is based on a CAP of 12.8 years (up from 11.2 years) and an annual excess return value of 5.1% (unchanged).
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A risk to our thesis that USB will return to positive operating leverage in 2006 is that the increase in revenue-enhancing investments does not produce the returns that management is expecting.
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This model is a summary of a much larger revenue model too big to include here..
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International sales were only 21% of the mix in the quarter, which we are concerned about.
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This probably comes as a surprise, since most investors seem to focus on EV/EBITDA multiples.
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$17M in 4Q08 royalty revenue to GILD; adjusting EPS estimates according to $750M share repurchase transaction announced this morning..
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This reinforces our view that SCH is successfully gain ground in migrating away from a model that is excessively dependent on retail volumes.
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Management reiterated its target of free cash flow (before pension contributions) equal to (or potentially exceeding) net income.
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FAHNESTOCK & CO. INC. Relative Valuation: We believe BR shares are fairly priced relative to their peers.
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Management changes do not resolve growth challenges..
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There was a US$35m or ~4cps charge in the quarter for strike provisioning that we have included as an exceptional item.
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JCI has also formed an alliance with Saft of France to develop hybrid batteries.
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The aging of this postwar generation is an important demographic trend, because they are not only in their prime in terms of earnings potential, but also because they fall within (or are nearing) the demographic sweet spot in total food expenditures per household.
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Demographic trends suggest a healthy long-term outlook for new-home construction in the United States.
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We regard the management team that has been assembled around CEO Maury Myers, who joined Waste Management in August 1999, as quite capable and, most importantly, as having relevant experience in successful turnarounds with companies in comparable industries.
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This reflects our belief that reported earnings will continue to benefit from a loss provision that is lower than total claims.
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Thus, while Q3 will be UTX's toughest compare in some time, they should hit consensus, with an outside shot of being a hair above it.
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Guidance: XTO raised their `08 production guidance to 23% (from 20% earlier), capex jumped by $400 mm to $3 Bn while expected opex costs increased by ~10%.
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large tackle box and is sized to fit a maximum of 80 FluMist doses.
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In total, operating income increased 16.2% to $169.1 million � $2.4 million above our estimates.
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The Merger has been accounted for as a reverse acquisition under the purchase method of accounting, with U S WEST being deemed the accounting acquirer and Qwest the acquired entity.
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Question: Is management compensation tied to this strategy?.
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For 2007, we estimate $0.99 (with Adelphia) vs. consensus of $1.03.
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Our out year estimates for the company's bottom line remain unchanged.
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Hasbro Takes Steps to Streamline Balance Sheet Reducing leverage has been a key priority for Hasbro, which targets debt to capitalization of 25-30%, compared to its current mid 30's ratio.
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As we have said in the past, the Bells are in the stage where they need to navigate between growth initiatives and making their EPS estimates.
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According to Novartis, the company was approached by the independent Chiron directors to "clarify their position" with the Chiron stake.
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Although visibility is always questionable, management expects the room air conditioner market to continue to grow with shipments expected to rise consistently throughout the period.
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In Latin America, revenues were $401 million, up 17% year-over-year and 12% sequentially.
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We sense QLogic Corporation can capture a meaningful portion of the Symm 5 Spider program at EMC..
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Because the market-share-leading product, Pharmacia's Xalatan, is labeled to have equal efficacy to twice-daily timolol, we believe Alphagan may be a "best-in-class" therapy..
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With wholesale prices soaring and currently averaging a fourfold increase over average wholesale power prices a year ago, we believe our supply-driven macro is currently in full swing.
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Insulin delivery (pumps) is expected to be a $2.6B market by 2010, growing 15%.
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Our 1999 earnings estimate of $2.10 per share remains unchanged.
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WFC also anticipates higher home equity losses, per the 2Q08 pre-recorded comments, "Until home prices stabilize we expect higher losses in the home equity portfolio." Currently.
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Wendy's raised its quarterly dividend from $0.12 to $0.135 to maintain its target dividend payout of 18-22% and target yield of 1.1%-1.2%.
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The company's targets used to be a dream, then they became a hope; now we believe they can become reality.
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When including 2010 maturities ($1.1B) and $900mm+ in incremental development spending, additional funds may be necessary for VNO.
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As a percentage of total revenue including earnings from unconsolidated affiliates, R&D decreased by 10 basis points year over year to 4.6% and declined by 80 basis points sequentially.
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In studies, bone interface shear strength at 4 weeks was twice that of traditional sintered beads, while soft tissue attachment was five times greater.
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- Agencies: We believe that digital/personal video recorders (PVRs) will dramatically reduce the demand for :30 TV commercials, which could reduce IPG revenues by 17% over a period of time.
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However, CBS has much more leverage than SBGI in its negotiations with the larger operators, due to its strong network affiliation and numerous large-market television stations.
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1Q07 Early Read: "Core" In Line, FY EPS Guidance Unchg'd Ex Specials Disclosure information.
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Huntington appears to be liability sensitive, not neutral Based on our interest rate sensitivity model, we believe Huntington is liability sensitive (versus Huntington's disclosure that it is neutral)--in our view, since we have assumed more conservative deposit repricing..
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The massive campaign recently launched to promote Finding Nemo is an example of Disney's phenomenal worldwide marketing capabilities.
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This range includes the actual catastrophe losses to date in 4Q03 and assumes an average level of catastrophes for the rest of 2003.
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STOCK RATING OVERWEIGHT Price (August 24, 2004) $67.45 Price Target $78 52-Week Range $74.18-62.48 Stock ratings are relative to the analyst's industry (or industry team's) coverage universe.
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Based on this analysis, there is no doubt that the capital markets are certainly already factoring-in significant downside risk from here into the Aetna story.
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The stock has come quite far, quite fast up an impressive 90%+ in 2003--on the strength of the CRM business.
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Moreover, management expects more than 2 million homes will have access to VOD technology by year-end.
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� We now base our bear case valuation on an 18x price to 2008E fully-taxed free cash flow multiple and unconsolidated assets.
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This division gains driven by a super-major covering the Gulf of Mexico, mid-continent and US Rockies.
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The company completes its chipset family with either an ASIC.
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Management estimates that currency will contribute approximately $90 million in sales to F3Q04, or 4% to sales growth.
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Terminal growth rate: We developed explicit Free Cash Flow (FCF) estimates for FY 2007-FY 2011.
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The XIENCE stent also has a persuasive body of pre-clinical evidence suggesting that the Abbott device might be the best at promoting effective vessel wall healing.
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Previously we opted to perform comparable analysis only on the semiconductor piece of QCOM's business, opting to value the royalty business as a fixed income asset.
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North America sales were the strongest segment, growing 16% sequentially and represented 69% of revenues.
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Prices (as of 09/08/98) of other securities mentioned in this report follow: Bell Atlantic (BEL-NYSE $44, Strong Buy) France Telecom (FTE-NYSE $79, Not Rated) SBC Communications (SBC-NYSE $38 3/4, Strong Buy).
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The Emergence Of The Internet - Towards a Market Maker Model?.
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The top end of management guidance narrowed for 2005 from $2.43-$2.53 to $2.43-$2.46.
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The regulated subsidiaries maintain strong stand-alone credit profiles with stable cash flows and favorable operating characteristics, including solid competitive positions and relatively constructive regulatory environments.
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Appendix 1. Important Disclosures Additional information available upon request. Disclosure checklist Company McKesson Ticker MCK.N Recent price* 58.85 (USD) 23 Jul 08 Disclosure 2,6,15.
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While initially Stanley will ship 112 SKUs (stock keeping units) to all 26,000 U.S. Wal-Mart stores, it is likely that SKU counts will eventually rise toward 250..
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o Upward revisions to aircraft deliveries results in positive increase in EPS for FY00-FY02.
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AMD cut prices on its value Sempron offerings, pulling prices below Intel's comparable offerings.
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Regardless of whether or not equity markets turn around, it could be difficult for flows to meaningfully improve in the short-run, given disappointing performance.
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We strongly reiterate our Strong Buy on AWE, Telecorp PCS and Triton PCS and we reiterate our Buy on ALLTEL, Sprint PCS and Voicestream..
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Williams is currently in negotiations to redo its five year and revolver facilities, likely to be rolled in the June / July timeframe..
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Symmetrix 3630 and 5630 systems are high-performance, entry-level systems for business and remote applications with a maximum capacity of 1.2 TB..
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Local Voice We expect retail line losses to slow for two reasons: First, Qwest has stepped up marketing efforts with the launch of Qwest Choice and is discounting across its entire product suite.
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We are maintaining our 2005 operating EPS estimate of $4.90.
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Higher D&A was due to $14 million of amortization of securitization bonds issued in August 2003 (has a revenue offset) and increased investment.
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For the fiscal year, we expect EPS growth of more than 10%, to $1.99, driven by strong volume gains in the convenience foods business, increased market share in a stabilizing cereal category and $25 million ($0.05 per share) in cost savings, which should fall to the bottom line.
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Paychex is a national provider of payroll processing, human resources, and benefits outsourcing solutions to small- and medium-sized businesses.
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Furthermore, we expect positive management comments concerning ABC's Upfront ad-sales performance, as we believe that ABC was able to command 9-10% price increases.
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We expect Altria (PM USA & PMI) will be net cash positive at the end of 2007 with about $36bn available (approximately 1/3 PM USA, 2/3 PMI) while maintaining current credit ratings.
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Operating results showed strong year over year improvement, as operating income grew 14.4% to $677 million on an 80 basis point improvement in the company's operating ratio to 71.7%..
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The vast majority of these customers are low-speed, dial-up customers.
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In the U.S., growth from both the direct sales force and sales agents were well below historical levels, particularly in DocuTech and Production Printing.
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Sales Per Square Foot Productivity Metrics Appear To Be Peaking.
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The company's deal flow and knowledge of financings offer long-term sustainable competitive advantages.
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At 11.5x our calendar 2004 estimate of $1.63, Sara Lee at mid afternoon was trading at a 23% discount to its group.
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Including FAS123 stock-based compensation expense, Qualcomm's GAAP EPS would have been $0.27.
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We expect management may have to rely on joint ventures, like the one it entered in Q305 with j.star brands, in order to market and distribute spirits brands.
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Hartford Financial Services reported 2Q05 operating EPS of $2.02 versus our estimate of $1.92 and the First Call consensus estimate of $1.90.
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10-Q Review: Some Headlines But Little New Information - November 14, 2003.
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This reflects the company's solid balance sheet, brand equity, diverse end markets and geographic distribution, solid history, and track record of innovation.
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However, we believe Gap's significant bet on denim may result in Gap's leaving some key back-to-school business on the table-- particularly in the important sweater, activewear and outerwear categories.
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The company markets its products under nationally known brands including Jones New York, Evan-Picone, and Rena Rowan.
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In the SuperValu group, we can assume that most of these will be retained and operated by SuperValu.
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Steven Temares (41) handles the day-to-day management of the company, and was promoted to president and chief operating officer in January 1999.
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None of these markets appears to have any imminent concerns.
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Venator also remodeled 459 stores in 1998, 330 or 72%, of which were in its athletic group.
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We have spoken to the former CEO of an acquired bank who strongly believes that the recent changes in how Summit approaches commercial and small business lending will place more emphasis on performance in those areas.
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We would also look for Germany, which accounts for perhaps 10% of revenues, to make a greater contribution as it moves along its maturation curve..
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We estimate these items contributed about a net $0.04 per share to after-tax earnings.
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Company Description The PNC Financial Services Group, Inc., headquartered in Pittsburgh, is a diversified financial services organization.
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Considering recent trends in the greater domestic HW ad market and more potential ecomm downside, we remain cautious on the stock, though valuation looks reasonable.
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