ValueClick Worth Around $10

We maintain a Hold rating on the shares of ValueClick, Inc. (VCLK), a Westlake Village, California-based online marketing services company.

VCLK is currently trading at a P/E multiple of 13.5x our 2008 earnings per share estimate of $0.71, a discount to the industry median. Although over the long-term we are very positive on online advertising growth, current economic conditions are creating significant headwinds for ValueClick and others in the industry.

Rising energy prices and falling housing prices have caused consumer confidence to drop, and consumer spending has fallen as a result. With decreased consumer spending, advertisers are cutting back budgets. This has caused what we consider a cyclical decline in Internet advertising dollars.

Although there is likely upside to VCLK shares over the longer-term, we believe it is too early to get involved with the stock for our six month time frame. We lower our target price to $10.00, a multiple of 14.1x our EPS estimate.

Nissan Motors Stays a Sell

Nissan Motor Company (NSANY) manufactures and sells about 3.5 million cars and commercial vehicles annually in more than 190 countries. The company's major production sites are located in Japan, with additional facilities located in the U.S. and elsewhere. Some of its key brands include Altima, Sentra, Maxima, Quest, Pathfinder, Xterra, Frontier, Titan, and its luxury brand, Infiniti.

Increasing prices of energy and raw material including steel, aluminum and precious metal are eroding profits of Nissan. Moreover, the company is offering higher incentives to entice buyers. This is making it difficult for Nissan to pass on rising raw material and energy prices to the ultimate consumers.

In addition, there are concerns about the new product launch costs that the company is planning. Also, the overall automotive industry environment is a challenging one, with volumes going down.

The company anticipates a 29.5% drop in earnings for fiscal 2008. Thus, we rate the stock a Sell with a target price of $11.50.

First Solar Shines a Way Forward

First Solar, Inc. (FSLR) designs, manufactures, and sells solar electric power modules using a proprietary thin' film semiconductor technology. It sells its products to project developers,' system integrators, and operators of renewable energy projects primarily in Europe. First Solar also focuses on designing and deploying commercial solar projects for utilities in the United States.
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Buoyed by higher capacity online from full production ramp-up of First Solar's German facility and initial production at its Plant One facility in Malaysia registered 36% and 49% sequential growth in the 2nd quarter of 2008 on its top- and bottom-line, respectively. Looking forward, the growth story will continue through three more facilities under construction in Malaysia, declining cost per watt, rising ASPs, an emerging market in Italy and new utility scale PV system deployments in the United States.

FSLR's reliance on low cost thin-film cells helped the company avert a silicon shortage which ravaged the bottom lines of other solar peers. As a result, the company was able to register consistent improvement in its bottom-line in stark contrast to its silicon cell peers. Accordingly, we maintain our BUY recommendation on FSLR with a six-month target price of $300.00. Price appreciation to our near-term valuation target represents 24.0% upside potential.

Kellogg Not Flaking Out

Kellogg Company (K), the leader in ready-to-eat cereals, has successfully executed the Volume to Value and Manage for Cash strategies. In 2006, management adopted additional programs, namely, "Sustainable Growth" and "People Passion and Pride."

By focusing on brand building and profitability, Kellogg is reporting consistent sales and earnings growth, reducing debt, and repurchasing shares. However, the recent commodity inflation is pressuring margins and the trend is expected to continue at least through 2008.

The Hold rating is maintained. During the last five years, a period of relatively stable and modest earnings growth, Kellogg's stock has traded in a narrow P/E range of 16.6 to 21.7. The stock is currently trading at a P/E multiple of 18.2. Given that cash flow has been increasing consistently and EPS have exhibited modest growth, the stock is expected to trade at the top-end of the historical valuation range. Hence, the target price is $60.75 based on a 21.5 P/E multiple on trailing 12-month earnings.

AK Steel Solid to Build On

As a large percentage of AK Steel's (AKS) sales come from the automotive sector, its steel volumes are inextricably linked to this industry. The steel products include aluminum-coated stainless steel, coil-coated steel, cold-rolled coated steel, electrogalvanized steel, hot-dipped galvanized steel, and hot-rolled steel.