News

LDK Solar Co., Ltd. (NYSE:LDK) has announced 2Q 09 revenue guidance of US$215 mn-US$225 mn, lower than market expectations. The company has, however, revised upwards its guidance for solar wafer shipments. In light of robust solar wafer shipments, the company plans to ramp up the annualized production capacity of its wafer plant to 2.0 gigawatts (GW) by the end of FY 2009. The company has also secured approximately US$146 mn financing for polysilicon plant construction. Although the upward revision of solar wafer shipments expectations is a good sign, we are concerned by the impact of declining ASP on top-line. Consequently, we maintain our SELL rating and will reassess our target price and rating in our next update report. We now anticipate a significant negative currency impact on the European stock over our 6-12 month investment horizon. As a result, and given our fundamental outlook, we reiterate our SELL rating for the European stock. We will reassess the European stock rating for LDK Solar in our next full update report.

On 03 July 2009, The Governor and Company of the Bank of Ireland (NYSE:IRE) issued an interim statement, in which Management reiterated its previous guidance for impairment charges through FY 2011. Management also raised concerns about weak demand for credit and a decline in margins due to rising funding costs. We are concerned about the impact these trends will have on the firm's bottom-line, although we are encouraged by ongoing efforts to cut costs. In light of this, we believe the recent sharp sell-off has exhausted the company's fundamental downside potential over our 6-12 month investment horizon. Therefore, we upgrade the common stock from a SELL to a HOLD. We will reassess our rating after the company announces its 1H 10 results. Although we continue to anticipate a significant positive currency impact on the ADR (1 ADR = 4 common shares) over the coming 6-12 months, we maintain our HOLD rating based on our fundamental outlook. We will reassess our ADR rating after the company announces its 1H 10 results.

On 02 July 2009, Johnson and Johnson Ltd.(J&J) announced the acquisition of Elan corporation PLC's (NYSE:ELN) assets related to the development of drug used for treating neurodegenerative conditions. Moreover, Elan is receiving an investment of US$1 bn for its rights and assets and will also receive a share in future profits and royalty revenues from the commercialisation of those drugs. With this development, we now hold a positive outlook for the company and, consequently, we upgrade our ADR rating from a HOLD to a BUY. We will reassess our target price and rating in our next update report, once company announces its 2Q 09 and FY 2009 results. Despite our anticipation of a significant negative currency impact on the European stock over the medium term, we upgrade the European stock from a HOLD to a BUY based on our fundamental outlook. We will reassess our target price and rating in our next update report, once company announces its 2Q 09 and FY 2009 results.

New Valuations

Microsoft Corporation (NASDAQ:MSFT) The economic slowdown has significantly impacted PC shipments in developed and emerging markets (EM), leading to lower Client revenues. Concerns such as declining Average Selling Prices (ASPs) and weak economic figures remain a threat to long term performance of the company, forcing Microsoft to adopt cost cutting measures. However, we believe an anticipated global economic recovery by 2H 10 will improve PC shipments and, therefore, Windows 7 shipments. Greater PC shipments and the lower pricing of Windows 7 are expected to fuel Client revenue growth over the long term. Moreover, Microsoft has a strong cash position in the current weak credit market conditions in the US, which is likely to allow the company to adopt an inorganic growth path. Hence, at current price levels, we reiterate our BUY rating for Microsoft’s NASDAQ stock.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward

Read the full reports free of charge with free to view access to institutional-quality research on 400 companies and over 700 stocks at www.researchoracle.com

Important information for US investors.

With the ending of the Spitzer settlement in July 2009 there will be a dramatic reduction of free independent research available to investors like yourself. Although this will not impact the Research Oracle, we believe that freely available independent research is crucial for a healthy market to function. Ask your broker a/e what plans they expect to implement to continue to provide you with independent research. You may wish to read this recent coverage from TIME Magazine for more information.
Copyright © 2009 Independent International Investment Research PLC. All rights reserved.

http://www.time.com/time/business/article/0,8599,1893519,00.html