For Immediate Release
Chicago, IL – April 18, 2013 – 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 Verizon Communications Inc. (VZ), Clearwire Corporation (CLWR), Sprint Nextel Corp. (S), AT&T, Inc. (T) and Rio Tinto Plc. (RIO).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
Verizon Eyes Clearwire Airwaves
Verizon Wireless, a unit of Verizon Communications Inc. (VZ) reportedly has plans to acquire airwave licenses for major cities in the U.S. from Clearwire Corporation (CLWR). On Apr 8, Verizon made an offer of approximately $1 billion to $1.5 billion, excluding the present value of airwaves leased. We believe the odds against this deal remains much higher given the intervention of Sprint Nextel Corp. (S), which is a major shareholder in Clearwire and proposes to acquire the latter.
However, if Verizon acquires these airwaves from Clearwire it would add to the company’s current network expansion plans. The company is trying to enhance its existing network capabilities to offer uninterrupted wireless experience to its customers. In this context, the company is working over spectrum acquisition that can support expansion plans in data services.
The company has already received approval from the Federal Communications Commission (:FCC) to buy wireless spectrum from Spectrum Co., which is a joint venture between Comcast Corporation, Time Warner Cable Inc. and Bright House Networks in Aug 2012. The deal is priced at $3.9 billion.
To raise funds for this transaction, Verizon struck a deal with AT&T, Inc. (T) to sell 39 lower 700 megahertz (MHz) licenses to the latter. In exchange, Verizon will receive $1.9 billion and Advanced Wireless Services (:AWS) spectrum licenses in five markets.
Additionally, Verizon planned the sale of three separate 700MHz spectrum blocks to small rural telecommunication firms. We believe the sale of lower spectrum assets and the consequent purchase of new AWS spectrum will work in favor of Verizon. The AWS spectrum holdings will double Verizon’s capacity as well as enable services at a much higher speed and expedite the LTE rollout, thereby driving data revenues and boosting its competitive position.
RIO Witnesses Enhanced Volume
Mining giant Rio Tinto Plc. (RIO) reported improved first-quarter 2013 production data on Apr 16. Despite seasonal instability over the last year resulting especially from cyclones, this processor of mineral resources was able to operate well enough to deliver better production.
Rio saw a year-over-year increase in production across most of its business segments including aluminium, bauxite, thermal coal, mined coal, iron ore, uranium and salt. However, products like alumina, diamonds and gold experienced a year-over-year decline.
Rio’s iron ore shipments increased 7.0% year over year, whereas iron ore production moved up 4.0% in the quarter ending March 2013. This was due to de-bottlenecking and productivity improvements in the company’s Australian operations, Pilbara, which helped Rio overcome the disruptions caused by the cyclones.
Also, Rio’s initiative to increase the Pilbara production capacity to 290 million tonnes per year seems to be in a positive direction, and it expects to produce the estimated yield in the third quarter of 2013.
Kennecott Utah Copper mine significantly increased its copper production in the quarter, compared with the year-ago quarter. However, the wall slide experienced at the Kennecott Utah Copper’s Bingham Canyon Mine has turned out to be a major hindrance to its future production expectations. In view of the same, Rio has reduced the mine’s expected mined copper production by 125,000 tons to 540,000 tons in 2013. Likewise, the expected production for refined copper is also reduced by 100,000 tons to 205,000 tons in 2013.
Rio has a number of projects which are currently either underway or have recently started operations. These projects are scattered over regions such as Canada, Namibia, Australia, USA, Chile and Uzbekistan, to name a few. We expect Rio to increase its production in the coming quarters through the completion of its planned strategic moves.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: https://twitter.com/zacksresearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com