(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: deCODE Genetics (NASDAQ: DCGN), The St. Joe Company (NYSE: JOE), General Motors Corp. (NYSE: GM), Daimler AG (NYSE: DAI) and American Electric Power Co., Inc. (NYSE: AEP).
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Here are highlights from Wednesday's Analyst Blog:
Can deCODE Genetics Survive?
deCODE Genetics (NASDAQ: DCGN) believes it has sufficient resources to sustain operations only into the second quarter of this year. Due to the shortage of cash, the company unfortunately has entered into survival mode. The company's ability to continue as a going concern is doubted if it cannot obtain immediate liquidity resources.
Due to the deteriorating financial position, in October, 2008, deCODE genetics announced that the company is carrying out a review of its long-term business strategy. The goal of this strategic review is to optimize the value of these assets for its shareholders by sharpening the focus of its business, selling non-core assets, securing strategic partnerships, and utilizing the resources generated to underpin product development and marketing efforts in its core business.
St. Joe May See Market Worsen
The St. Joe Company (NYSE: JOE), a publicly held, operationally diverse real estate company, is based in Jacksonville, Florida. It is one of Florida's largest real estate developers.
Operations are getting worse at JOE. The company reported a net loss of $27.9 million or ($0.31) per share in 4Q08. 4Q earnings included impairments and write downs of $0.34 per share. While operations continue to deteriorate, the company is currently focused on maintaining liquidity and cutting expenses.
The Next Bailout?
The Administration has given both General Motors Corp. (NYSE: GM) and Chrysler a very short leash to avoid bankruptcy. Chrysler has just 30 days to merge with Fiat, and GM 60 days to come up with yet more cuts and concessions from its stakeholders. GM CEO Rick Wagoner, who was opposed to the idea of going into Chapter 11, was pushed out and replaced with Fritz Henderson, who seems more open to the idea.
I doubt the Chrysler merger will happen -- or that if it does happen, it will be successful. On paper, there does seem to be a good fit, but that was true of Chrysler and Mercedes as well, and just look at how well that turned out.
