Thursday, January 8, 2009

Zacks Analyst Blog Highlights: Pfizer, Biogen Idec, Amgen, Intel and AMD 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: Pfizer Ltd. (NYSE: PFE), Biogen Idec (Nasdaq: BIIB), Amgen (Nasdaq: AMGN), Intel Corp. (Nasdaq: INTC) and Advanced Micro Devices, Inc. (NYSE: AMD).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Wednesday’s Analyst Blog:

9 Possible Pharma Deals for ‘09

With everyone reporting and blogging over the past few weeks that Pharma M&A activity should heat up in 2009, we've decided to make nine bold predictions on deals that could get done -- or that at least make sense to us -- in 2009.

1.) Pfizer Ltd. (NYSE: PFE) is sitting on over $30 billion in cash and the Lipitor patent expiration in 2012 is bearing down like a freight train. Management needs to find new areas of growth. Pfizer has also mentioned in the past that they are keen on expanding the biologic business.

With "all deal sizes" on the table, the best move we see for Pfizer in 2009 is to acquire big-cap biotech firm Biogen Idec (Nasdaq: BIIB). We have heard rumors of a Pfizer-Amgen (Nasdaq: AMGN) combination, but Biogen would be a lot easier to swallow. The deal would give Pfizer several new revenue drivers and an enormous biologic pipeline for about a fourth of the price of Amgen. Biogen's core focus in central nervous system disorders, oncology, and inflammatory disease is just what Pfizer is looking for. Biogen also bring a massive biologic manufacturing footprint that will help Pfizer commercialize its next-generation portfolio.

Intel: 3 Concerns Plus Another

Intel Corp. (Nasdaq: INTC) has experienced very slow growth over the last four years. This was mainly due to Advanced Micro Devices, Inc. (NYSE: AMD) emerging as a competitor in the microprocessor, motherboard and chipset markets.

Costs have continued to outpace revenue growth. Against the 12.1% revenue increase in the 2004-2007 period, COGS [cost of goods sold] increased 24.9%, while operating expenses (R&D and SG&A) increased 10.8%. This brought down the operating margin from 30.1% in 2004 to 25.6% in 2007. While 2008 could develop into a good year in terms of operating margins, we expect margins to decline again in 2009.

Although notebooks are growing strongly, the company is seeing increasing demand for the lower-end variety. This is mainly due to the increasing demand from several emerging economies.

It now appears as though you can add macro economic and inventory concerns to the mix, as the firm warned for the 2nd time this quarter that revenue would be falling to levels not seen since the June of 2006 quarter. ($8.2 billion).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

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:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics 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

Visit for information about the performance numbers displayed in this press release.

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.


Source :