Calgon Carbon "Wait & CCC"

Calgon Carbon Corporation (CCC) is a Pittsburgh, Pennsylvania based company that offers products and services that remove contaminants and odors from liquids and gases. About 62% of sales are to the Americas and 31% are to Europe. Its Activated Carbon chemicals remove and absorb organic compounds from liquids and gases, especially useful in the process of water purification.

Calgon is a leader in this segment, an area benefitting from higher prices and significant growth opportunities. However, the company is facing higher raw material costs, the risk of weakness in the equipment segment and high valuation. As a result, we rate the shares a HOLD. We have set a forward P/E multiple of 38.2x to arrive at our six-month target price of $21.00.

The Equipment segment generally has a long project life cycle from bid solicitation to project completion and often requires customers to make large capital commitments well in advance of project execution. In addition, this business is usually affected by the general health of the overall economy. As a result, sales and earnings from this segment could be volatile.

Weatherford Raised to Buy Rating

Houston, Texas-based Weatherford International, Ltd. ( WFT) is a leading manufacturer and provider of equipment and services used in drilling, completion, and production of oil and natural gas wells.

We are upgrading Weatherford shares to Buy from Hold following the recent commodity-price induced weakness in the stock, which has made valuation very compelling for this quality oilfield name. The stock is down roughly 35% in the last 12 weeks, compared to the peer group's average of a 26% pullback and the roughly 4% decline in the broader S&P 500.

Concerns about the company's over-exposure to North American onshore drilling in a tentative natural gas price environment are overdone, in our view. The company has a growing international footprint, where the outlook for its integrated project management expertise remains very favorable. Our unchanged $37 price objective reflects 2009 P/E and EV/EBITDA multiples of 12.8x and 7.5x, respectively, well within historical trading ranges.

Scientific Games a Good Bet

Scientific Games (SGMS) has a leading position in several markets, including the instant ticket and online lottery markets. In addition, Scientific Games continues to win significant contracts in both the instant ticket and online lottery markets from both domestic and international lottery authorities.

Also, the company has made several acquisitions that have accelerated top line growth. Ron Perelman, a world-renowned private investor, owns 28.1% of the company's stock.