http://www.zacks.com/ Zacks.com: Bear of the Day en-us Copyright 2005 Zacks.com Sun, 22 Nov 2009 23:53:00 GMT Sun, 22 Nov 2009 23:53:56 -0600 crotblut@zacks.com(Managing editor) webmaster@zacks.com(Webmaster) http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12805 http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12805 While Sohu.com's (<a href=http://www.zacks.com/stock/quote/Sohu>SOHU</a>) third-quarter earnings beat the Zacks Consensus estimate and were in line with the company s own guidance, the outlook for the fourth quarter was far below expectation. The company's operating expenses have been steadily going up, which we fear could limit the growth in earnings. <p> Moreover, recent delays in game launches, weak ad spending, which is hurting the brand advertising revenue and intense competition pose a threat. Strength in its online games and portal business are expected to be the strongest drivers for growth beyond 2010. <p> Currently, we see limited upside for Sohu's revenue and earnings growth in the near term. We downgrade the stock to Underperform from our previous Neutral rating and set a six-month price target of $45.00. Sun, 22 Nov 2009 23:53:01 GMT http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12794 http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12794 The Medicines Company's (<a href=http://www.zacks.com/stock/quote/mdco>MDCO</a>) third-quarter loss per share of 6 cents missed the Zacks Consensus Estimate of a loss of 5 cents. Although Angiomax continues to contribute significantly to revenues, we are concerned about the product losing exclusivity in the U.S. in September 2010. <P ALIGN="left"> The entry of generics would be devastating for the company. Therefore, the onus is on management to acquire and develop the next generation of products to drive the top-line. One of those products was expected to be Cangrelor. However, the failure of the phase III CHAMPION program was a significant setback. <P ALIGN="left"> Meanwhile, the Cleviprex sales ramp has also been slow. We recommend avoiding the name until we gain more visibility on the Angiomax patent situation, the Cleviprex ramp and the future of Cangrelor and Oritavancin. Sun, 22 Nov 2009 23:53:02 GMT http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12774 http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12774 Sears Holdings' (<a href=http://www.zacks.com/stock/quote/shld>SHLD</a>) vulnerability to continued economic downturn is adversely affecting its top-line growth. The company recorded an 8.6% decline in same-store sales and closed 28 non-performing stores during fiscal 2009 second quarter amid a slump in the housing sector and sluggish apparel sales. <p> Moreover, intense competition from giant discounters, mass merchants and regional stores coupled with the seasonality of business and exposure to foreign currency fluctuations severely undermine the company's future growth prospects and sustainability. <p> Consequently, we have changed the recommendation for the company from Neutral to Underperform as we anticipate it to perform well below the broader market. Sun, 22 Nov 2009 23:53:03 GMT http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12762 http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12762 Hologic, Inc. (<a href=http://www.zacks.com/stock/quote/holx>HOLX</a>) reported fourth quarter earnings of 28 cents per share, above the Zacks Consensus Estimate of 26 cents, but a couple of cents below the year-ago earnings. For fiscal 2009, the company earned $1.17 per share, a cent below the year-ago earnings. <p> Revenues declined 8.9% in the reported quarter and 2% in fiscal 2009. We remain concerned about the decline, which is largely attributable to the stringent economic and capital spending environment. <p> Furthermore, Hologic's strategy to grow by acquisitions has inherent risks. Strong competition confronting the company's products also concerns us. Consequently, we downgrade the stock to Underperform with a price target of $14. Sun, 22 Nov 2009 23:53:04 GMT http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12753 http://www.zacks.com/newsroom/commentary/index_pdf.php?id=12753 Myriad Genetics Inc. (<a href=http://www.zacks.com/stock/quote/mygn>MYGN</a>) reported first quarter fiscal 2010 earnings of 31 cents per share, which was below the Zacks Consensus Estimate by a penny. The company had earned 25 cents per share in the year-ago period. <p> Myriad Genetics spun off its therapeutics business in July 2009 to focus on molecular diagnostics going forward. Although the molecular diagnostics business is performing well, we remain concerned about the slowdown in revenue growth in recent quarters. <p> The competition confronting Myriad Genetics products in the biotechnology and genetics testing field is also a concern. We have an Underperform rating on the stock. Sun, 22 Nov 2009 23:53:05 GMT