Thursday, June 18, 2009


AlphaNinja -

Baird downgrades YRC Worldwide (YRCW). They drop the company to underporform from neutral ->target price goes to $0 from $3, as they see bankruptcy on the horizon due to debt covenants being broken soon. Example of a company that has little concern for equity holders, as every agreement with its union has involved handing them equity (effectively swiping shares from current stockholders) in exchange for wage/benefit concessions. Baird is simultaneously upgrading Con-Way (CNW) and Old Dominion (ODFL), significantly boosting their price targets as Baird sees them as the clear beneficiaries of YRCW's troubles.

Goldman is out with an upgrade of the auto parts sector, on what they see as a "cyclical rebound" for the group. I'd tread carefully, as some of the weaker names (LEA comes to mind) could be toast without a creative new bailout.

Pali Research initiates coverage of AT&T (T) with a sell. Their $20 target implies 20% downside. Pali is concerned that inevitable long-term erosion of its wireless business has been hidden by robust iPhone results. They see 90% wireless penetration leading to tough fights for market share, in which they see T as a loser.

No comments:

Post a Comment