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Zacks Analyst Blog Highlights: Arena Pharmaceuticals, Inc., FactSet Research Systems Inc., UST Inc., Altria Group and Joy Global Inc.
Friday, December 19, 2008 12:18 AM


(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

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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: Arena Pharmaceuticals, Inc. (NASDAQ: ARNA), FactSet Research Systems Inc. (NYSE: FDS), UST Inc. (NYSE: UST), Altria Group (NYSE: MO) and Joy Global Inc. (NASDAQ: JOYG).

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Here are highlights from Thursday's Analyst Blog:

Arena Seeking a Full BLOOM

Arena Pharmaceuticals, Inc.'s (NASDAQ: ARNA) leading pipeline candidate, lorcaserin for obesity, continues is its phase III program. Although we remain somewhat skeptical of lorcaserin's potential, Arena's stock is looking attractive on a long-term basis given the likelihood that Arena will eventually sign a commercialization partnership for the drug in 2009.

However, the lack of a partnership in 2008 has caused a significant decline in the shares and Arena's cash position is now becoming a concern. A partnership in 2009 is a must to avoid a big dilutive offering.

FactSet Beats Expectations

Headquartered in Norwalk, Connecticut, FactSet Research Systems Inc. (NYSE: FDS) is a leading provider of global online integrated data-related products and services for the investment community (primarily bankers, investment managers and brokerage firms).

FactSet reported 1Q09 revenues in line with our projection. However, operating expenses were well below our estimate as a result of the strong U.S. dollar. That, and a lower tax rate, accounted for the better-than-expected earnings.

UST a Sell Pre-Altria Buyout

UST Inc. (NYSE: UST) is the leading producer of moist smokeless tobacco products and dominates the premium sector of the domestic market. However, over the last 15 years, UST has been steadily losing market share to discounters in the sub-premium categories.

With the announced acquisition by Altria Group (NYSE: MO) of UST Inc. for $69.50 per share in cash, the potential price appreciation for UST stockholders is now limited.

Joy Global Beats the Street

Joy Global Inc. (NASDAQ: JOYG) reported earnings of $1.11 per diluted share, $0.03 above Street consensus driven primarily by strong global coal markets. Due to volatility in commodity prices and in global markets, the company has tightened its expenses and capital budget to guarantee liquidity and operational flexibility in '09.



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