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2. Database Business Has Stabilized and Appears Poised for a Turn.
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This decline reflects price reductions, adverse currency changes, a shift in mix from higher-margin products such as copper closures to lower-margin products such as transmission electronic products, and lower manufacturing volumes.
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Silvelestat Looks Encouraging For Acute Respiratory Disorders.
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Our key highlights of the presentation are summarized below.
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We continue to expect strong growth for this product line -- especially with the launch of Omnipak, a five-day, low-price treatment regimen that is intended to compete against Pfizer's (PFE, $38.47, rated Equal-weight by Jami Rubin, target $48, Industry view: Attractive) Zithromax.
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range), reflecting increased higher-yielding earning assets from the MBNA acquisition.
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We are reducing our estimates for 1999 and 2000 due to currency effects and a lower than expected economic rebound in Brazil.
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Aerospace orders increased 8% on easy comparisons (down 23% last year) and strong military spending.
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Lexapro (escitalopram) TRxs increased 11% sequentially to 1,353,000 in July.
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The carrier still lost a net 137k lines (much better than our 236k estimate), with the bulk going to wireless substitution and some Voice over Internet Protocol (VoIP) losses.
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Our previous price target was 21x our CY06 EPS estimate.
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This solution is aimed at alleviating bottlenecks in the last mile between the local loop and the Internet backbone.
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While it appears unlikely that a large number of additional rigs will be released in this market, the level of uncertainty has increased.
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Our model still assumes 375 deliveries in 2002 (management guidance 380) and 285 deliveries in 2003 (vs. management's range of 275-300).
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2003 Cost Trends By Component Hospital Inpatient Outpatient Physician Pharmacy Utilization nearly flat -1% 3% less than 1% Price/Mix 8% 9% 3% 7% Total 8% 8% 6% 8%.
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Corporate & Investment Banking Corporate and Investment Banking includes a complete array of services in the areas of large corporate lending, commercial leasing, international operations, capital markets, loan syndication, merger and acquisition advisory services, and real estate capital markets, among others.
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Ultimately, there wasn't much new information for those who know the story well.
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additional recovery strategies if performance has deteriorated as we believe it to have.
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The complaint alleged anti-competitive effects from the settlement of patent lawsuits between.
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Exhibit 3: Market Expectations Embedded in Current Share Price.
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Importantly, seismic indicates that the K2 and K2 North fields (which are expected to be tied into Marco Polo production facilities at mid-year) are less compartmentalized, and not expected to have the same issues as Marco Polo.
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Consolidated revenue growth was slightly below our expectation as the company posted 2Q05 growth of 0.2%, compared to our 0.9% forecast, and was the primary contributor to the modest EPS shortfall.
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Our operating income forecast for the new UNP would go from $2.72 billion to $2.57 billion as our operating margin forecast would go from 19.9% to 21.3%.
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Management is optimistic about the prospects for an ongoing EPA science advisory board review of PFOA since 50 years of clinical studies have not detected any adverse human health affects.
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For 2003, we are in-line with management's guidance of $0.17 to $0.19 per Mcfe.
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In addition to marketing auto insurance to its cardholder base, the company is testing sales of annuity products and is pleased with the early results.
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FY 1999 will be a critical year for Oracle's applications business, the resuscitation of which we believe it is too early to measure.
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One company for which we could not get any financial statements is American International Reinsurance Company (Bermuda) which owns the AIA subsidiaries and could be generating significant profits.
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Despite this balance sheet cash increased and debt to total capital (15% versus Q2 2007 21%) decreased from Q2 2007.
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The reserve ratio also came in better than expected, coming in at 1.42%, up 5bps q/q and above estimates of 1.40%.
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While the worst is likely over for the company in terms of relative underperformance, we would like to see evidence of a recovery in the gas market before revisiting our investment thesis.
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For C4Q/04, combined NYSE and NASDAQ trading volume increased 9% year-over-year, up nicely from -7% in C3Q/04.
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BNI's 1Q04 EPS matched our $0.56 estimate, beating the $0.46 consensus, helped by strong revenue growth and flat fuel expenses.
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We expect double-digit growth in the coming years.
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KEY POINTS: - We estimate 3Q sales for both Home Depot ($70 3/4, Outperform) and Lowe's ($49, Outperform) are running ahead of plan, with the quarter two-thirds complete.
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Verizon has less UNE-P exposure and has dealt with intensive competition for much longer periods than its peers.
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We are raising our 2000 estimate to $2.22 from $2.18 and introducing a 2001 estimate of $2.70..
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We rate Wells Fargo market-perform with a price target of $65 based on an EPS estimate of $5.05 in 2006 and representing a relative multiple of 84% (currently equal to the relative multiple of 84% when we first set our target price on November 30, 2004).
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In addition, we believe Adelphia is likely to start deploying significant volumes of the SFA DVR in the first half of 2004..
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The company reported that the small-market, 94,000 square-foot prototype stores continue to perform well.
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ADP estimates its share of this outsourced market in National Accounts to be about 65%, with PRBZ and Ceridian representing the two main competitors.
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The focus of the call was on Dell's Enterprise Systems Group and the company's view on standards-based enterprise computing.
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During the quarter the company repurchased $154.7 million of the $202.9 million in outstanding ONI Systems 5% convertible debentures due on 15 October 2005.
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We maintain our Overweight rating on WLP shares with a $92 price target, based on 18x our 2003 EPS projection, in line with 2003 projected operating earnings growth.
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The company should benefit from strong product momentum in 2003 carrying into next year.
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We still see opportunity for improvement in RNOA over the next 2yrs., with the deployment of SAP in LATAM and the 2nd and 3rd generation upgrades in Europe/US.
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We remain neutral, and note that valuation concerns should again come to the surface with PMC now only marginally profitable and EV/sales lofty at 4.5X-5.0X..
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Many of Aimco's assets are encumbered, which could limit future capital raising alternatives.
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To the degree evidence of success does not become apparent, we believe it could be appropriate for management to reevaluate its market approach and dramatically reduce cash burn.
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ECU increases of $150 tonne would bring the price to around $350 per tonne and add about $250 million overall to operating profit..
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This could add to valuation losses as CDO-squared assets (CDOs collateralized by other CDOs) could arguably be written down to zero over the near-term.
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Additional clarity of exactly when this drug could be filed was not provided.
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Rollout of Several Initiatives Making for More Difficult Compares by 4Q:FY02 The heart of our revenue analysis rests on two facts: (1) cannibalization causes a significant drag on Home Depot's comp-store performance; and (2) Home Depot has been driving above-market precannibalization growth by rolling out several initiatives over the past eight quarters.
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Gold production and sales of 250,000 and 265,000 ounces, respectively, up 16% and 23%, respectively, from our forecasts of 216,000 ounces for each.
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CMP is used to polish three kinds of materials: Oxide, Tungsten, and Copper CMP.
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Key risks to our forecasts include, negative clinical trial results, competition, which could reduce the market potential of Gilead's products, pricing pressures, and litigation risks to the company' intellectual property position..
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Valuation/risks � maintain $19 price target Applied is the SCE industry leader with a broad product and technology portfolio.
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We continue to expect strong operating performance through the remainder of the year, with overall sales growth of approximately 4.5%.
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DIS has an extensive teleservicing center called "Back Stage," which processes merchandise orders.
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It appears that under Neville Isdell's leadership, we are finally seeing a cultural shift at the Coca-Cola Company, which could also include more emphasis on building out its non-carb capabilities.
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...But we suspect Judge Robinson may ultimately rule in favor of JNJ...
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Strong gross margins, however, boosted EPS to $0.67, above consensus ($0.61) and our expectations ($0.62).
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Diversification in products, distribution, and earnings.
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The dramatic increase is due in part to the inclusion of the stent upside that has been apparent since J&J announced its projected market supply.
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To downsize the organization in response to this, FDC spent $2.9mm in 3Q05 to terminate dozens of positions, as well as $2.5mm on facility closures..
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We have employed a level of conservatism with decelerating growth in both CY06 and CY07 despite what we believe will be a strong product lineup which will benefit from Apple's processor transition to Intel. Figure 54: Deutsche Bank market share estimates by end market.
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Figure 1. Equity Office Same-Store Cash NOI Year-to-Year % Change.
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Metrocrest Hospital Authority (the hospitals' owner) has expressed frustration with Tenet, particularly regarding the company's failure to pursue partnership opportunities with physicians for ASCs and failure to market and invest in the facilities.
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We are also reducing our price target from $90 to $80.
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As a result of the various restructuring initiatives that Solectron's new CEO, Michael Cannon, put in place, we believe that Solectron will exit FY2004 as a revitalized company focused on providing core EMS services to their "sweetspot" group of blue-chip customers in communications, networking, computing and storage.
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NOC's current yield is 3.66%, while the market yield is 3.03%.
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Some are more price sensitive than others, demand different product features or need varying amounts of information, support, and services.
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CCL continues to aggressively manage costs, and will see an earnings boost from lower oil prices.
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Non-residential construction markets remain poor.
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� Earnings, as detailed in Exhibit 3, reach about $2.4 billion in fiscal 2010.
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We expect earnings growth for the foreseeable future of 15% to 17% from the combined foreign life operations.
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For 2007 gross expense savings were $215 million, exceeding the $181 million goal.
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We believe management is likely to lower guidance on Thursday's earnings report.
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In aggregate, we currently forecast F2Q02 revenues of $1.36B, a Y/Y decline of 9.6%.
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Conversely, those contracts that do not qualify for hedge accounting, are treated as.
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Group life operating earnings were $76 million in the quarter, up 25% from $61 million last year on higher investment spreads and favorable mortality.
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Pretax earnings rose 12.5%, aided by a 0.04 percentage point improvement in gross margins and only a 1% increase in advertising and promotion expenses.
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Specific Investment Risks related to the Industry or Issuer New Labor Model Execution risk of the new labor model, which moved all commissioned associates to hourly compensation, could negatively impact sales and profits.
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Canadian operations contributed $60 million (in Canadian dollars) to earnings before interest and taxes for the year.
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Their target time to be ready for another major deal is 2 years, however if the right opportunity presents itself sooner, there are other financing options.
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DISCUSSION The meeting was uneventful from a guidance perspective, as the company reaffirmed both its '05 and '06 guidance.
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This includes a one-bank architecture that can provide sophisticated data manipulation.
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Better F&B profits from higher group volume and continued aggressive cost management were behind the increases.
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We believe those companies that have a developed merchant expertise should continue to carry the higher multiples.
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Nevertheless, this quarter's results are quite consistent with our thesis that Morgan Stanley's well-balanced business model generates less erratic profit margins versus its peer group.
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2002 SFAS 142 goodwill addback is $0.08/share Source: Company data, Morgan Stanley Research Estimates.
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Internet is in, at least as a fashion statement for now if not anything else.
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For example, Mobils core chemical businesses, dominated by petrochemicals, produced more than $500 million in normalized segment earnings at cycle peaks in 1988 and again in 1995.
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At present, it seems WB has only sales and marketing functions that could be directly applicable to the cards business.
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Our gross margin assumptions came down a bit to reflect our view that the pricing environment has become incrementally tougher and Ciena's mix could be slightly less favorable than in our previous model.
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However, we are factoring a return to reserve building due to strong loan growth (low to mid teens).
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Government will receive non-voting warrants in exchange for loans.
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Risks to our price target include further weakness in commercial aerospace, weakness in Asia, slower economic growth, potential additional pension contributions, and inability to conclude or integrate acquisitions.
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Finally, Power Gen has also been stronger than our initial expectations and margins appear to be sustainable at current above trend levels.
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It allows PRU to exploit the VA business and deploy excess capital at higher marginal rate of return.
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