Tag Archives: Kevin Cook

Shares Of Agnico Eagle Mines Dive Amid Falling Profits

By Zacks.com, Contributor

International gold producer Agnico Eagle Mines fell from $40 a share to as low as $25 in late June when gold fell below $1,200. We are upgrading our recommendation on Agnico-Eagle to Neutral. Profit for the first quarter slid roughly 70% on lower gold prices and production as well as higher cash costs. Adjusted earnings fell well short of the Zacks Consensus Estimate. Revenues fell by double digits, yet beat expectations. The company backed its production guidance for the full year. Agnico-Eagle maintains a solid exploration budget and is reinvesting in its assets to expand output. Moreover, the company s revised life of mine plan is expected to yield significant free cash flows over the next several years. However, any potential delay associated with the development projects may jeopardize its future production. We are also concerned about high operating costs across a number of mines. I proposed as early as February when gold began its breakdown below $1600 that the miners would continue to remain under pressure as analysts had to keep lowering their earnings estimates. Why would they have to keep doing that? To keep up with the falling price of gold. While many gold worshippers will be searching for a bottom in the shiny metal at these levels, don’t bet on these miners until their earnings outlooks can get out of the dirt. Their fortunes are tied to the current downtrend and the turnarounds could take a while. Kevin Cook is a Senior Stock Strategist with Zacks.com …read more

Source: FULL ARTICLE at Forbes Latest

Titan In The Line Of Fire As Mining Optimism Cools

By Zacks.com, Contributor

The industrial sector has been hot this year, always a percent or two ahead of the broad market. The reasons for optimism have been sound, from a turn-around in the Chinese economy to the US housing recovery gaining steam. But that optimism may be cooling off and we need look no further than two big name equipment manufacturers to see it unfolding: Caterpillar (CAT) and Deere (DE). And one company in the direct line of fire of a machinery slow-down could be Titan International (TWI) , a global manufacturer of off-highway steel wheels and tires in the agricultural, earthmoving/construction and consumer markets. The mining industry, from metals to iron ore, has also seen earnings and outlooks take a hit recently, with names like Cliffs Natural Resources (CLF) and Joy Global (JOY) being sold as estimates soften. The gold miners are currently one of the lowest ranked industry groups in Zacks classification of 265 industries. Titan generally manufactures both wheels and tires for these markets and provides the value-added service of assembling the completed wheel-tire system. They offer a broad range of different products that are manufactured in relatively short production runs to meet original equipment manufacturers’ specifications and/or aftermarket customer requirements. Special Offer: What you don’t own is just as important as what investments you do own. Top investing experts named names when it comes to securities to avoid in the year ahead. Get the results in this free downloadable report, 24 Widely-Held Investments You Should Sell Now. Earnings Picture Rolling the Wrong Way Despite reporting record annual results on February 25, 2013, the hiccup in Titan’s growth outlook had been foreseen by the analysts since early this year. And missing the fourth quarter consensus EPS estimate of 47 cents by 80% didn’t help. Here’s the view from the Zacks proprietary Price & Consensus chart… Since that earnings report, the Zacks Consensus Estimate for 2013 has dropped by 10.4% to $2.41 per share while that for 2014 plummeted 16.6% to $2.75 per share. It’s worth mentioning the record revenue picture here too. Revenue of $493.6 million represented a 22.5% improvement over the year-ago quarter. The impact was, however, negated by a 28.4% increase in cost of sales that led to a 12.0% fall in gross profit, and a big drop from the year-ago quarter’s 37 cents EPS. Where the Big Wheels Meet the Dirt Decreasing earnings estimates together with a mixed bag of both positive and negative earnings surprise for the past year — producing an average of miss of -9.6% — raises skepticism over Titan International‘s performance in the quarters ahead. Titan is still projected by some analysts to have mid-teens earnings and sales growth. But until the estimate picture stabilizes, it’s probably best to stand aside. Watching how CAT and DE estimates shake out would be a good idea too. Kevin Cook is a Senior Stock Strategist with Zacks.com …read more
Source: FULL ARTICLE at Forbes Latest

This Bull Market Is Over For Capital One

By Zacks.com, Contributor

This might be the right credit card for your wallet, but the stock should be strongly re-evaluated if it’s in your portfolio. Capital One Financial (COF) slipped to a Zacks #5 Rank (Strong Sell) last week after a continued deluge of downward earnings estimate revisions. This is happening in the aftermath of a mixed earnings report that took the stock down sharply last month from its 52-week high. The company reported fourth quarter 2012 earnings of $1.41 per share which significantly lagged the Zacks Consensus Estimate of $1.62. This was a big improvement from the prior-year quarter’s 88 cents, but investors and analysts are still looking for the bright spots. Before we look at some of the details of that report, let’s take a look at the Zacks Price & Consensus chart which gives us a great visual on which way estimates are headed and if price may soon follow. Rising Costs, Fees, and Interest Rates For 2012, Capital One reported earnings of $6.16 per share. This was below the Zacks Consensus Estimate of $6.43 and prior-year earnings of $6.80. Capital One‘s net revenues for the reported quarter stood at $5.62 billion, jumping 38.9% year over year. Yet, revenues were below the Zacks Consensus Estimate of $5.78 billion. Net revenues for 2012 were $21.40 billion, surging 31.4% from $16.28 billion in 2011. Also, revenues were above the Zacks Consensus Estimate of $20.86 billion. Net interest income for the quarter grew 42.3% from the previous-year quarter to $4.53 billion. However, net interest margin decreased 70 basis points (bps) year over year to 6.52%. Non-interest income surged 26.3% from $868 million in the prior-year quarter to $1.10 billion in the reported quarter. The increase was mainly driven by higher service charges and other customer-related fees as well as rise in interchange fees. Special Offer: Stocks recommended in Forbes Dividend Investor are up 12.6% since July 11, 2011, versus 7.3% for the S&P 500.  Click here for a trial subscription with instant access to all picks and the Top 25 portfolio.  Average yield is 5.7%. Capital One‘s operating expenses rose 24.3% from the prior-year quarter to $3.26 billion. The increase was largely attributable to higher salaries and associate benefits costs and merger-related expenses, partially offset by lower marketing expenses. If you are a COF investor, it may be a good time do some further research on what’s going on inside their business. It’s quite possible that analysts see something in rising costs or interest rates, or in the company’s credit quality and delinquencies that is driving this new trend of lowered expectations. Kevin Cook is a Senior Stock Strategist with Zacks.com …read more
Source: FULL ARTICLE at Forbes Latest

Medicare Cuts, Flat Pricing Dampen Quest's Outlook

By Zacks.com, Contributor

Quest Diagnostics, (DGX) a leading provider of medical diagnostic testing services, reported a lackluster fourth quarter 2012 on January 23 with adjusted EPS of $1.01, down 15.8% year-over-year, missing the Zacks Consensus Estimate by $0.05. Fourth quarter results for Quest (Analyst Report) were of particular concern when seen from the top line. Year-over-year sales declined 4% primarily due to 4.4% drop in diagnostic information services revenues that accounts for over 90% of total revenues of the company. Adjusted operating margin in the quarter contracted 232 basis points (bps) to 15.98%. Additionally, analysts are concerned about DGX‘s guidance for 2013 given market and competitive challenges. Quest’s expected revenue growth for the upcoming fiscal quarter is to remain within a band as low as 0% to 1%, missing the Zacks Consensus Estimate of $7.5 billion that represents annualized growth rate of 1.4%. Special Offer: Stock picks from Forbes Dividend Investor are up 11.7% vs. 7.4% for identically timed buys of the S&P 500 index since July. Average yield on buys is 5.8%. Click here now to try Forbes Dividend Investor free for 30 days. The current market environment continued to remain challenging for Quest Diagnostics in the form of commercial pricing pressures and Medicare cuts (including recent pathology service reimbursement reduction), which may lead to a 3% reimbursement decline in 2013. Apart from this challenging underlying market conditions, Quest is also witnessing several issues in the form of weak volume growth, flat pricing and low organic revenue. Although the last published data showed inching up of physician office visits after a consistent decline since 2008, the sustainability of this improvement is still uncertain. After analyzing the reasons behind the fourth quarter debacle and the conservative outlook, Zacks analysts downgraded the stock to Underperform on February 1 and lowered their estimates for 2013 and 2014. They also lowered their 2013 and 2014 revenue estimates by $153 million and $194 million, respectively. Correspondingly, EPS estimates were lowered for 2013 and 2014 by 45 and 37 cents to $3.96 and $4.34, respectively. These actions are consistent with the trend among other covering analysts as you can see from the Price & Consensus chart below which shows consensus EPS estimates and their changes in magnitude and direction over time. Finally, from a technical view of the chart, the stock is stuck underneath its 50- and 200-day moving averages. A break of $56 will probably bring a test of the 52-week low near $53. And even though we are talking about a company with a forward P/E of just 13X, until the revenue and earnings picture is clearer for Quest, it’s probably best to wait for another quarter before considering this name on the long side. Kevin Cook is a senior stock strategist with Zacks.com …read more
Source: FULL ARTICLE at Forbes Latest

Alabama standoff continues as officials silent about talks with alleged abductor

As a police standoff with an Alabama man accused of holding a 5-year-old boy hostage in an underground bunker entered its fifth day, authorities were saying little except that their talks with the 65-year-old loner were continuing through a ventilation pipe.

Negotiators were still trying late Friday to persuade Jimmy Lee Dykes to surrender. Police have said they believe the Vietnam-era veteran fatally shot a school bus driver on Tuesday, and then abducted the boy from the bus and disappeared into the home-made bunker.

While police were mostly staying mum about the delicate negotiations, it fell to neighbors to fill in the blanks about Dykes, described by some as a menacing figure who held anti-government views.

One of Dykes’ next-door neighbors said the suspect spent two or three months constructing the bunker, digging several feet into the ground and then building a structure of lumber and plywood, which he covered with sand and dirt.

Neighbor Michael Creel said Dykes put the plastic pipe underground from the bunker to the end of his driveway so he could hear if anyone drove up to his gate. When Dykes finished the shelter a year or so ago, he invited Creel to see it — and he did.

“He was bragging about it. He said, `Come check it out,” Creel said.

He said he believes Dykes’ goal with the standoff is to publicize his political beliefs.

“I believe he wants to rant and rave about politics and government,” Creel said. “He’s very concerned about his property. He doesn’t want his stuff messed with.”

Police have used a ventilation pipe to the bunker to talk to the man and deliver the boy medication for his emotional disorders, but they have not revealed how often they are in touch or what the conversations have been about. Authorities waited until Friday to confirm the suspect’s identity.

While much of what is going on inside the bunker remains a mystery, local officials who have spoken to police or the boy’s family have described a small room with food, electricity and a TV. And while the boy has his medication, an official also said he has been crying for his parents.

Meanwhile, Midland City residents held out hope that the standoff would end safely and mourned for the slain bus driver and his family. Candlelight vigils have been held nightly at a gazebo in front of City Hall. Residents prayed, sang songs such as “Amazing Grace” and nailed homemade wooden crosses on the gazebo’s railings alongside signs that read: “We are praying for you.”

“We’re doing any little thing that helps show support for him,” said 15-year-old Taylor Edwards said.

Former hostage negotiators said authorities must be cautious and patient as long as they are confident that the boy is unharmed. Ex-FBI hostage negotiator Clint Van Zandt advised against any drastic measures such as cutting the electricity or putting sleeping gas inside the bunker because it could agitate Dykes.

The negotiator should try to ease Dykes’ anxieties over what will happen when the standoff ends, and refer to both the boy and Dykes by their first names, he said.

“I want to give him a reason to come out,” Van Zandt said,

Police seemed to be following that pattern. At a brief news conference to release a photo of Dykes, they brushed off any questions about possible charges.

“It’s way too early for that,” said Kevin Cook, a spokesman for the Alabama state troopers.

Police have described the bunker as about 4 feet underground, with about 6-by-8 feet of floor space and the PVC pipe that negotiators were speaking through.

State Rep. Steve Clouse, who represents the Midland City area, said he visited the boy’s mother and she is “hanging on by a thread.” Clouse said the mother told him that the boy has Asperger’s syndrome as well as attention deficit hyperactivity disorder, or ADHD.

Dr. Nadine Kaslow, a family therapist and psychiatry professor at Emory University in Atlanta, said the boy’s emotional troubles might make things even more difficult for him.

“They have less way to make sense of things,” she said of children with Asperger’s and ADHD.

The normally quiet red-clay road leading to the bunker was busy Friday with more than a dozen police cars and trucks, a fire truck, a helicopter, officers from multiple agencies and news media near Midland City. The town, population 2,300, is about 100 miles southeast of Montgomery.

Police vehicles have come and gone for hours from the command post, a small church nearby.

Neighbors said Dykes was easily angered and once beat a dog to death with a lead pipe, threatened to shoot children for setting foot on his property and patrolled his yard at night with a flashlight and a firearm.

He was in the Navy from 1964 to 1969, serving some time in Japan, according to military records.

Authorities said Dykes boarded a stopped school bus filled with 21 children on Tuesday afternoon and demanded two boys between 6 and 8 years old. When the driver tried to block his way, the gunman shot him several times and took the 5-year-old boy.

The bus driver, Charles Albert Poland Jr., 66, was hailed by local residents as a hero who gave his life to protect the pupils on his bus.

Dykes had been scheduled to appear in court Wednesday to answer charges he shot at his neighbors in a dispute last month over a speed bump. Neighbor Claudia Davis said he yelled and fired shots at her and her family over damage Dykes claimed their pickup truck did to a makeshift speed bump in the dirt road. No one was hurt.

Creel said his father and Dykes are friends. Creel said that after Dykes’ arrest, Dykes wrote a 2- to 3-page letter that at least in part addressed the menacing case.

Michael Creel said he hasn’t seen the letter but that his father, Greg Creel, has. Dykes reportedly told the elder Creel he had sent the letter to the local media, politicians and Alabama’s governor.

Police on Friday took a copy of the letter from the Creels’ home, according to Michael Creel. Reached for comment, Greg Creel confirmed the existence of the letter but declined further comment and said he was cooperating with police.

A neighbor directly across the street, Brock Parrish, said Dykes usually wore overalls and glasses and his posture was hunched-over. He said Dykes usually drove a run-down “creeper” van with some of the windows covered in aluminum foil.

Parrish often saw him digging in his yard, as if he were preparing to lay down a driveway or building foundation. He lived in a small camping trailer and patrolled his lawn at night, walking from corner to corner with a flashlight and a long gun. Authorities have not disclosed what firearms Dykes might have in his possession.

Source: FULL ARTICLE at Fox US News