MORNING UPDATE: Man Securities Issues Alerts for MCK, DAL, CCE, COH, and HNZ
September 09 2004 - 10:16AM
PR Newswire (US)
MORNING UPDATE: Man Securities Issues Alerts for MCK, DAL, CCE,
COH, and HNZ CHICAGO, Sept. 9 /PRNewswire/ -- Man Securities issues
the following Morning Update at 8:30 AM EDT with new NewsWatch
Alerts for key stocks. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020214/MANSECLOGO ) Before
the open... NewsWatch Alerts for MCK, DAL, CCE, COH, and HNZ,
Market Overview, Today's Economic Calendar, and the Quote Of The
Day. QUOTE OF THE DAY "The most recent data suggest that, on the
whole, the expansion has regained some traction." -- Alan
Greenspan, Chairman, Federal Reserve NewsWatch Alerts for MCK, DAL,
CCE, COH, and HNZ ... NEWSWATCH ALERTS - News That Could Move These
Stocks Today----------- McKesson Corp. (NYSE:MCK)* After announcing
late on Tuesday that near-term profits will miss estimates because
of lower-than-expected drug prices, the stock was punished by
investors. Specifically, MCK announced that earnings guidance for
the first half year to be in the range of $0.75-$0.80, while
analysts were expecting $0.50 per share for the 2Q. MCK was quick
to say that the FY05 guidance remained unchanged at $2.20 to $2.35
per share. By the end of trading Wednesday, the stock had fallen
15.2% closing down $4.85 at 26.98. * To learn more about how to use
these alerts and for our FREE report, "The 18 Warning Signs That
Tell You When To Dump A Stock ", go to:
http://www.investorsobserver.com/mu18n (Note: You may need to copy
the link above into your browser then press the [ENTER] key) Delta
Air Lines Inc. (NYSE:DAL) Announced on Wednesday that 6,000-7,000
jobs will be reduced in the next 18 months as part of a move to
achieve a target of $5 billion in savings by 2006. DAL noted that
bankruptcy is a real possibility as a result of the rapid
deterioration of its financial condition due to low yields, high
fuel prices, uncompetitive labor costs, a high debt burden and
possible operational disruption from anticipated pilot early
retirements. Also the transformation plan calls for over 51% of the
company's network to be restructured by January 31, 2005. Including
a simplification of the fleet by retiring four types of aircraft in
the next four years. The stock closed down 10.3% at $4.02 off $0.46
and fell further in after hours trading. Coca-Cola Enterprises Inc.
(CCE) CCE revised its earnings guidance for the 3Q and for the year
2004. The company stated that it now expects 3Q earnings in $0.38
to $0.40 range. Analysts expected earnings of $0.49 per share for
the quarter. For the full year, the company currently expects
earnings per share, excluding nonrecurring item, in $1.26 to $1.30
range. Full year earnings per share are expected in $1.21 to $1.25
range. The stock closed down 5.4% on Wednesday at $19.48 off $1.11.
Coach Inc. (NYSE:COH) Following Coach's Tuesday announcement
raising guidance by a cent, Prudential Financial also increased its
2005 EPS estimate. The increase also considered that COH
repurchased 2.43 million shares at an average cost of $39.06, or
about $95 million, during the quarter. Also COH was invited to join
Standard & Poor's 500 Index two weeks ago. The stock closed up
1.3% gaining $0.56 to $44.07. H.J. Heinz Co. (NYSE:HNZ) The company
held their annual shareholders meeting yesterday and had many
pleasant things to say about their performance. With sales growth
of 5.7%, EPS growth 7.8%, and operating free cash flow of $148
million, the company feels that FY2005 will successfully bring to a
close the three-year growth plan to refocused and strengthened HNZ.
Adding some sauce to the party the company also announced a
Preferred Stock Dividend Of $0.425 Per Share and a $0.285 dividend,
with a record date 9/23/04. The stock closed down $0.51 at 37.69 at
the close on Wednesday. ** For the FREE report, "The Secrets of
Smart Election Year Investing - Insights, Stocks, And Strategies."
go to: http://www.InvestorsObserver.com/FREEelection NOTE: All
stocks and options shown are examples only. These are not
recommendations to buy or sell any security. MARKET OVERVIEW
Overseas markets are not fairing too well this morning as just
three of the 15 markets that we track are currently positive. The
cumulative average return on the group stands at a minus 0.644
percent. Adding to the concerns of a slowing global economy and
declining household spending for the Japanese economic recovery,
July machine tool orders declined by a worse than expected 11.3
percent. The figure was worse than analysts' opinion for a 2.3
percent decline and the prior month's 3.9 percent rise. The ripple
helped create a 108-point decline in the Nikkei overnight. Heading
a bit west, the Bank of England (BOE) decided to hold its key Repo
Rate steady at 4.75 percent. That lack of move was widely
anticipated, but some expect a sixth (already five increases since
last November) 25 basis point hike in November. Two key reports are
to be released before the start of the regular session of trade.
Initial Jobless Claims for the week ending September 4 are expected
to have declined by 17,000, somewhat offsetting the prior week's
surprise 19,000 jump. As a potential indicator of consumer demand
and inflationary pressure, August Import Prices are seen rising by
0.6 percent versus July's 0.2 percent rise. A terrorist bombing in
Jakarta, Indonesia earlier this morning may have some repercussions
throughout the session. Additionally the weekly petroleum products
inventories will be released today. Any "larger than expected"
decline in the stockpiles could prove bullish for the commodity,
but negative for equities. Be prepared for the investing week ahead
with Bernie Schaeffer's FREE Monday Morning Outlook. For more
details and to sign up, go to:
http://www.investorsobserver.com/freemo DYNAMIC MARKET
OPPORTUNITIES Wednesday's phrase of the day: "Regaining traction."
That's how Federal Reserve Chairman Alan Greenspan summed up the US
economy, citing a rebound in job growth in August, coupled with
upward consumer spending momentum in July. Somewhat surprisingly
though, given the rapid run up in oil prices, Greenspan stated
inflation was under control and, in fact, said future inflation
expectations "have eased in recent months." However, the quarterly
UCLA Anderson Report runs a completely different theory to
Greenspan's. It argues that corporate and consumer spending is
still weak and that the overheated housing market poses serious
risks to the health of the US economy. In fact, it states these
factors could lead to an extended "soft period," with no dynamic
growth, ending with the "distinct possibility" (albeit a 10%
chance) that the economy will spin back into recession as early as
2006. Although the Anderson Report is credited with correctly
predicting the 2001 recession and the current "soft patch," this
does seem to be a particularly bearish case. Some economists even
say there's a greater chance of recession than that. However, with
the tax cuts having worn off and interest rates now rising, the
American consumer's ability to continue propelling the economy
forward might be fading - particularly when many Americans are
already submerged in debt. The Anderson Report projects 3.3% GDP
growth in both 2005 and 2006 - not too shabby, but less than the
4.5% Greenspan boldly projected recently. But Greenspan's comments
all but assure the Fed will surprise nobody and raise interest
rates again on September 21. Receive incisive economic/market
commentary, profitable advice and access to a network of leading
investment exports. Simply follow this link:
http://www.investorsobserver.com/agora2 TODAY'S ECONOMIC CALENDAR
8:30 a.m.: Initial Jobless Claims for the week ending September 4
(last plus 19,000). 8:30 a.m.: August Import Prices (last plus 0.2
percent). 10:00 a.m.: July Wholesale Trade (last plus 1.1 percent).
10:00 a.m.: DJ-BTM Business Barometer for the week ending August 28
(last unchanged). 12:00 p.m.: July Chicago Fed Midwest
Manufacturing Index (last minus 0.7 percent). 4:00 p.m.: San
Francisco Fed Pres Yellen speaks on the economic outlook, monetary
policy in Seattle. Man Securities is one of the world's leading
option order execution firms. Man's in-house broker team offers a
level of personal service and experience unavailable from no-frills
discount brokers. To improve your understanding of option pricing
get Man's FREE "Margin/Option Wizard software at:
http://www.investorsobserver.com/mancd. Member CBOE/NASD/SPIC. This
Morning Update was prepared with data and information provided by:
InvestorsObserver.com - Better Strategies for Making Money ->
For Investors With a Sense of Humor. Only $1 for your first month
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247profits e-Dispatch. Go to:
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Research - Sign up for your FREE e-weekly, Monday Morning Outlook,
Bernie Schaeffer's look ahead at the markets. Sign Up Now
http://www.investorsobserver.com/freemo PowerOptionsPlus - The Best
Way To Find, Compare, Analyze, and Make Money On Options
Investments. For a 14-Day FREE trial and 5 FREE bonuses go to:
http://www.PowerOptionsPlus.com All stocks and options shown are
examples only. These are not recommendations to buy or sell any
security and they do not represent in any way a positive or
negative outlook for any security. Potential returns do not take
into account your trade size, brokerage commissions or taxes which
will affect actual investment returns. Stocks and options involve
risk and are not suitable for all investors and investing in
options carries substantial risk. Prior to buying or selling
options, a person must receive a copy of Characteristics and Risks
of Standardized Options available from Sharon at 800-837-6212 or at
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http://www.newscom.com/cgi-bin/prnh/20020214/MANSECLOGO
http://photoarchive.ap.org/ DATASOURCE: Man Securities CONTACT:
Michael Lavelle of Man Securities, +1-800-837-6212 Web site:
http://www.mansecurities.com/mu.html
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