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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Monday, June 16, 2008

Zacks Analyst Blog Highlights: Merck, Alexza Pharmaceuticals, Eastman Chemical, Stoneridge and Abbott Laboratories

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CHICAGO, Jun 16, 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: Merck (NYSE: MRK), Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA), Eastman Chemical (NYSE: EMN), Stoneridge (NYSE: SRI) and Abbott Laboratories (NYSE: ABT).

See the latest posts to the Analyst Blog: http://www.zacks.com/blog/post_info.html?g=6

Here are highlights from Wednesday's Analyst Blog:

Merck Looking to Cut Costs

Merck & Co. Inc.'s (NYSE: MRK) results for the past several quarters were far above consensus expectations. Analysts have clearly under-estimated the power of what three new big drugs such as Vytorin (cholesterol), Januvia (diabetes), and Gardasil (cervical cancer vaccine) can do.

The slide in sales of osteoporosis drug Fosamax and cholesterol fighter Zocor in 2008 will be offset by the growth in the vaccine business and the continued strong ramp of mega-blockbuster asthma treatment Singulair and Januvia/Janumet.

The issues surrounding cardiovascular drugs Vytorin and Zetia will slow revenue growth. We, however, look towards the second quarter for a clearer picture. Merck's very recent pipeline troubles are also of concern. We believe the uncertainty surrounding sales of the cholesterol business will limit the upside to the stock.

Alexza Pharma Outlook Cautious

We are enthusiastic on Alexza Pharmaceuticals, Inc.'s (Nasdaq: ALXA) proprietary novel Staccato system that reformulates oral or injectable small molecule compounds into an inhalable aerosol. Preliminary data on AZ-001 (migraine) and AZ-004 (agitation in schizophrenia) looks encouraging, but the company still has to complete phase III trials before we proclaim either a success. Our rating is Hold.

Funding operations doesn't seem to be an issue for now. Alexza probably has enough cash to fund its development programs into the first quarter of 2010. But the only clinical stage candidate we expect to be on the market in 2011 is AZ-001. The company could be in position to file with AZ-004 in 2010 / 2011, so by 2012 both AZ-001 and AZ-004 could be on the market.

Right Mix for Eastman Chemical

Eastman Chemical (NYSE: EMN) has a strong fibers business and solid financials. The company had an impressive first quarter 2008, marked by increasing prices, volume gains, and strength in several end markets.

We are also enthused by the company's cost cutting and restructuring programs, in which Eastman plans to sell unprofitable units and close down businesses, particularly in its CASPI segment. The company is likely to benefit from its recent focus on the industrial gasification business.

Stoneridge Looking Solid to $21

Stoneridge (NYSE: SRI) is aggressively cutting costs and benefiting from the growth of the commercial vehicle market. Increased use of electronics in vehicles is also benefiting the company. We rate the shares a Buy with a target of $21.00.

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, medium and heavy-duty truck as well as agricultural vehicle markets. The company's primary products include power distribution components and systems, electrical switches and sensors, and other modular assemblies.

Risk/Reward Good for Abbott Labs

We feel despite a few challenges ahead for Abbott Laboratories (NYSE: ABT), there is significantly more to look forward to than there is to worry about. We expect double-digit EPS growth through the end of 2012, driven by strong sales of key drug Humira, for inflammatory diseases, and the company's rapidly growing vascular business. We remain excited about the company's late-stage line-up, of which a number of candidates should make it to market in 2008.

Humira is quickly becoming the anti-TNF drug of choice, gaining sizable market share and we believe the drug could eclipse $7 billion in sales by 2012. Also, Abbott is now a major player in the drug-eluting stent space with XIENCE V, which should eventually command significant market share. Abbott has made a slew of transactions over the past 18 months that should contribute meaningfully to growth in 2008 and beyond.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

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.

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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.

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 312-265-9380 Visit: www.zacks.com

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   Business Wire 2008 ********************************************************************** As of Thursday, 06-12-2008 23:59,
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