Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Friday, June 20, 2008

Zacks Analyst Blog Highlights: Benchmark Electronics, Celestica, Jabil Circuit, Sanmina SCI and Pfizer

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Comtex

CHICAGO, Jun 20, 2008 (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: Benchmark Electronics, Inc. (NYSE: BHE), Celestica (NYSE: CLS), Jabil Circuit (NYSE: JBL), Sanmina SCI Corporation (Nasdaq: SANM) and Pfizer, Inc. (NYSE: PFE).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Thursday's Analyst Blog:

Benchmark Sets an Even Bar

Benchmark Electronics, Inc. (NYSE: BHE) should make progress with new programs in 2008 despite pressure in the high-end Computing segment, regulatory headwinds in the Medical segment, and some softness in the Test & Instrumentation segment. Most notably, the Medical segment has been positive in an otherwise lackluster environment. We therefore maintain a Hold rating on the shares.

However, BHE does appear to have more short-term challenges than its peer group and we remain concerned about the economy in 2008. Benchmark operates in an intensely competitive environment and faces competition from Celestica (NYSE: CLS), Jabil Circuit (NYSE: JBL), and Sanmina SCI Corporation (Nasdaq: SANM). In addition, Benchmark is exposed to significant customer and sector (Computing) concentration risks.

Where Will Pfizer Spend Cash?

We believe Pfizer, Inc. (NYSE: PFE) continues to face an uphill battle in growing its top-line given the company's sheer size and lack of a significant pipeline. While near-term earnings growth will come in the form of cost-cutting and share repurchases, the company lacks a catalyst to increase revenues once cholesterol drug Lipitor loses patent exclusivity.

At the current level, Pfizer is trading at only 7.5x our 2008 EPS estimate of $2.37. This is significantly below the peer-group currently trading at around 13.6x 2008 EPS. The wildcard with Pfizer and part of the reason for its cheap valuation, however, is the question of what they will do with their mountain of cash.

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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=2677

About Zacks

Zacks.com 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 http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance 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: Zacks.com

Zacks.com Mark Vickery Web Content Editor 312-265-9380 Visit: www.zacks.com

Copyright
   Business Wire 2008 ********************************************************************** As of Monday, 06-16-2008 23:59,
   the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 04-16-2008 for BHE @
   $17.06. As of Monday, 06-16-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated
   an UPTREND on 02-01-2008 for CLS @ $6.25. As of Monday, 06-16-2008 23:59, the latest Comtex SmarTrend Alert, an automated
   pattern recognition system, indicated an UPTREND on 05-29-2008 for JBL @ $11.94. For more information on SmarTrend, contact
   your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright
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