(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: ViroPharma, Inc. (NASDAQ: VPHM), TOTAL S.A. (NYSE: TOT), ReneSola Ltd. (NYSE: SOL), AFLAC (NYSE: AFL) and Vale do Rio Doce (NYSE: RIO).
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Here are highlights from Tuesday's Analyst Blog:
VPHM: 1-Trick Thoroughbred?
We have been long-time bulls on ViroPharma, Inc. (NASDAQ: VPHM). Over the past year, ViroPharma's stock had been reacting well to the uptick in Vancocin sales, and the Citizen's Petition strategy to delay a generic alternative has worked beautifully to maintain an exclusive market in 2007 and 2008.
Paramount to our investment thesis was that the continued strong sales in Vancocin would allow for management to fully develop the next wave of products, including HCV-796 and maribavir, as well as in-license new candidates such as Cinryze. With HCV-796 and now maribavir gone, and generic Vancocin most likely coming in mid-2009, too many questions remain for us to recommend the shares.
TOTAL S.A. a Total Value
France-based TOTAL S.A. (NYSE: TOT), previously known as TOTAL Fina Elf S.A., is among the top 5 publicly traded global integrated oil and gas companies based on production volumes, proved reserves, and market capitalization. The company's operations can be divided into upstream (exploration and production), downstream (refining and marketing) and chemical businesses.
We maintain our Buy rating on TOTAL ADRs, and we continue to like the company for its positive production-growth profile, attractive returns and an improving outlook for the refining and chemical businesses. We also like the company's active share buyback program and the recent increases in the dividend.
ReneSola Outlook Dimmer
With a predominantly bearish outlook, we maintain a Hold recommendation for ReneSola Ltd. (NYSE: SOL). The company is dogged with pressure on wafer ASPs, rising feedstock costs, and fissures in its Chinese customer base, all of which will adversely affect its performance in the short run.
However, the company divested its stake in its polysilicon joint venture [JV] with Zhongsheng Steel at almost twice its investment and secured additional credit lines to finance its expansion plans. However, in light of a tepid demand scenario, the company is planning to postpone part of its expansion plans.
