Tuesday, June 20, 2006

Calls of Note Part 3

- Wachovia notes that at their 16th Annual Nantucket Equity Conference, Crown Holdings (NYSE:CCK) management seemed a bit more bullish on the near-to-medium term outlook, especially in terms of pricing.

Net:net then, with management reiterating on $300+ mil of free cash flow for '06, volumes relatively robust across their major businesses, and increased visibility into their ongoing pricing initiatives, they reiterate Outperform rating on the stock-noting that the shares should see a relief rally on the 2Q report.

While the market seems to be preoccupied with the health of the economy and inflationary pressures, the firm notes that Crown has a defensive end-market profile (beverage & food are key markets), along with effective pricing power, in firm's opinion--underlying Outperform rating. Valuation Range: $21 to $22.

Notablecalls: Not actionable but good to know category.

- FBR is positive on Secure Computing (NASDAQ:SCUR) saying recent onversations with resellers indicate that SCUR is seeing "very good" demand for its solution set on the heels of heightened security concerns, a broader product roadmap, and its differentiated unified threat management (UTM) vision. Firm believes the integration of CyberGuard is also proceeding at or "ahead of schedule," which should bode well for the remainder of FY06.

In sum, they believe so far (roughly two weeks left until finishing a traditional back-end-loaded quarter), SCUR is seeing normal 2Q spending patterns that are proceeding "according to plan." Believes shares at current levels (11x FY07 EPS) present a compelling risk/reward ratio that is hard to ignore, as they encourage investors to revisit this name heading into 2H06. Maintains Outperform rating and $15 price target, which represents 21x CY07 EPS estimate of $0.70.

Notablecalls: Nice piece of research from FBR's Daniel Ives. I don't think it's actionable yet but I'd be buyer at lower levels. Probably the best way to play this one would be to buy after earnings.

- Stanford notes Insituform (NASDAQ:INSU)'s stock price is down more than 20% in the past month, even after rebounding somewhat last week, on no news other than the broader small cap market correction. Firm thinks it's time for another look at this stock now, as in fact they see several positive developments ongoing at the company.

The company said when it reported earnings in late April that bidding activity had picked up sharply after a winter lull. From firm's recent conversation with management, it appears that new wins are now coming in. Also, last week, at the largest annual drinking water trade show in the U.S., the company quietly launched Insituform Blue , its new product for the rehabilitation of drinking water pipes.

Firm's estimates remain unchanged, at $1.01 for 2006 and $1.52 for 2007 (or $0.95 and $1.47, including stock option expense), and price target remains $30. Maintains Buy.

Notablecalls: Not actionable but good to know category

- Deutsche Bank notes their discussions with solar cell and module manufacturers in Taiwan and China last week reinforce their view of a continued, intensified silicon shortage until at least 2008. The first priority of solar cell and module manufacturers is, and will continue to be silicon feedstock supply. Firm believes that companies such as MEMC Electronics (NYSE:WFR), a primary producer of silicon feedstock should continue to benefit from the solar silicon demand secular trend. Reiterates Buy rating. Firm's price tgt stands at $45.

Notablecalls: I'm not entirely sure DB has the following to move WFR.

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