(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: The Coca-Cola Company (NYSE: KO), Coca-Cola Hellenic Bottling Company (NYSE: CCH), National Semiconductor Corp. (NYSE: NSM), SINA Corp. (NASDAQ: SINA), and Vodafone Group PLC (NYSE: VOD).
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Here are highlights from Wednesday's Analyst Blog:
China Denies Coke Acquisition
Today, the Chinese Ministry of Commerce announced that it has rejected The Coca-Cola Company's (NYSE: KO) proposed acquisition of China Huiyuan Juice Group Limited, a Hong Kong listed company which owns the Huiyuan juice business throughout China. Citing the anti-competitive effects of the acquisition, the decision reflects the enforcement of China's strengthened anti-monopoly law and the internal political pressure of the Chinese government related to protecting indigenous brands from foreign control.
For The Coca-Cola Company, the strong performance of future key markets, like China, has mitigated volume concerns in North America. In 2008, unit case volume in North America declined 1%. Management is extending Coca-Cola's reach in emerging markets not only through the introduction of water and juice products, but also through acquisitions.
For example, in early 2006 Coca-Cola bought a Serbian water bottler, and in March 2007 Coca-Cola, in alliance with Greece-based Coca-Cola Hellenic Bottling Company (NYSE: CCH), bought out Multon, which controls approximately 25% of the Russian juice market. On September 3, 2008, The Coca-Cola Company made a $2.3 billion cash offer to purchase China Huiyuan Juice Group.
Nat'l Semi: Buying Opportunity
National Semiconductor Corp. (NYSE: NSM) is an OEM of analog and mixed signal integrated circuits. February quarter revenue fell short of consensus expectations, although the bottom line exceeded. Forward guidance is for a revenue decline of -5% to -10% in the seasonally strong 4th quarter.
Management has refocused R&D into areas that should drive margins. It has also initiated a massive restructuring program to further lower the breakeven point. Although National has been negatively impacted by the recession, the business continues to exhibit the necessary ingredients for a strong comeback.
