CHICAGO -- Zacks Equity Research highlights NTT DoCoMo (NYSE: DCM) as the Bull of the Day and MBIA Inc. (NYSE: MBI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on China Mobile (NYSE: CHL), EnCana (NYSE: ECA) Body Glove Replica Watch and Energy Transfer Partners (NYSE: ETP).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
We maintain an Outperform rating for NTT DoCoMo (NYSE: DCM), the largest mobile service provider in Japan. The company currently maintains a leading 50% share of the Japanese wireless market.
DCM upgraded 98% of its total coverage area with 3G-HSDPA, while emerging 4G LTE networks are planned for deployment through 2010. NTT DoCoMo's decisions to focus on mobile content, along with a renewed geographic expansion drive outside Japan, are positive indicators.
Furthermore, the company is launching an innovative on-line money transfer service. We consider NTT DoCoMo an attractive long-term investment opportunity.
Bear of the Day:
We are downgrading our recommendation on the shares of MBIA Inc. (NYSE: MBI) to Underperform as macroeconomic conditions continue to contribute to losses on the company's structured finance products.
MBIA's third quarter results missed the Zacks Consensus Estimate abysmally. Results were dragged down by higher losses on MBI's coverage of mortgage-related securities and complex investments, which weighed down income from investments and premiums.
With ratings cut to junk status, MBI has also lost major market share. However, the company's long-tailed business model is generating scheduled premiums. Though MBIA has undertaken its business restructuring, the legal challenges are expected to act as an impediment Spazio24 Watch Replica to business prospects and capital-raising efforts.
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Trade Deficit Deteriorates
For us to really make progress on curing the chronic trade deficit problem we have, 2 things need to happen: The first is that China needs to start letting its currency appreciate. This would actually be very good for the ordinary Chinese, who could afford many more foreign goods if it were to happen. It would also be great for investors who own Chinese stocks like China Mobile (NYSE: CHL).
The second thing that needs to happen is that the U.S. has to cure its addition to foreign oil. While U.S. reserves of oil are mostly already depleted, we have lots and lots of natural gas from the shale plays. In the short term, it is hard to substitute natural gas for oil, particularly as a transportation fuel. The problem stems mostly from the lack of an installed infrastructure for refueling vehicles with natural gas, but that is certainly not an insurmountable problem (mostly adding compressors; we have natural gas pipelines running through most of the country).
Technically it is not hard to build a car that runs on natural gas. There would also be subst
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