(Source: Business Wire)
Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors Corp. (NYSE: GM), GameStop Corp. (NYSE: GME), Web.com (Nasdaq: WWWW), Vivo Participacoes SA (NYSE: VIV) and Telemig Celular Participacoes SA (NYSE: TMB).
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Here are highlights from Monday's Analyst Blog:
GM May Face Bankruptcy
General Motors Corporation (NYSE: GM) is one of the largest automobile manufacturers in the world. But weak North American sales, falling production volumes and rising raw material costs are increasing our concern for the stock. The company might face bankruptcy if it does not receive any government aid. These issues compel us to rate the shares a Sell with a six-month target price of $2.
GM states that despite implementing the planned operating actions, the company's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions improve significantly.
GameStop Adjusted, Still a Buy
GameStop Corp. (NYSE: GME) sells software, hardware and game accessories for video game systems and personal computers. While we remain long-term bulls on video game sales and GameStop, we believe that macro headwinds are beginning to take a bite out of the company's near-term results.
The worsening economic conditions appear to be picking up steam as we approach the important holiday shopping season. As a result, we are lowering our estimates for GameStop ahead of its third-quarter results.
Web.com a Real Winner
Web.com (Nasdaq: WWWW) is a leading provider of website services for small and medium businesses (SMBs). The company uses a factory approach that it can leverage over thousands of customers.
Although the company is currently feeling a pressure from a slowing consumer market, which many of its customers cater to, the long-term outlook still looks bright.
Vivo a Brazilian Wireless Play
We are keeping our Buy recommendation on Vivo Participacoes SA (NYSE: VIV). The company has a dominant position and a strong brand in the fast-growing Brazilian wireless business.
