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: Metabasis Therapeutics Inc., Schering-Plough, ASM International, Applied Materials Inc. and Beacon Roofing Supply, Inc.

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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: Metabasis Therapeutics Inc. (Nasdaq: MBRX), Schering-Plough (NYSE: SGP), ASM International (Nasdaq: ASMI), Applied Materials Inc. (Nasdaq: AMAT) and Beacon Roofing Supply, Inc. (Nasdaq: BECN).

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:

Partner-Seeking for Metabasis

Although Metabasis Therapeutics Inc. (Nasdaq: MBRX) reported positive results on core pipeline candidate, MB07803 for type-II diabetes, we believe that investor confidence is not likely to return until the company enters into suitable partnership deals for its candidates. We maintain our Hold rating on the stock.

Although Metabasis is currently seeking a partner for the continued development of pradefovir, after termination of the agreement with Schering-Plough (NYSE: SGP), we remain skeptical on the future of the hepatitis B candidate. Even if Metabasis is able to progress with the development, the continued delay in the initiation of phase III trials has provided competitors such as with ample time to progress their candidates through clinical trials and capture significant market share.

Newly Favorable on ASM International

ASM International (Nasdaq: ASMI) is an OEM (original equipment manufacturer) of both front-end and back-end semiconductor manufacturing equipment. The back-end business has gained significant momentum in the past two years, while the front-end business has struggled to become profitable.

On June 6, 2008, Applied Materials Inc. (Nasdaq: AMAT) offered to buy two of ASM's units for $400 million to $500 million. ASM plans to respond to the bid by June 14. The break-up value of the firm could be $30.00 per share. We rate the shares of ASMI a Buy.

Beacon Roofing Covered as a Hold

Beacon Roofing Supply, Inc. (Nasdaq: BECN) reported a second quarter loss of $0.18 per share, greater than our estimate of a loss of $0.15 per share and the prior-year level of $0.14 per share. This is due to lower margins and high operating expenses.

Going forward, while BECN benefits from market share gains, product mix, acquisitions, a scale driven reduction in purchasing costs, and other cost-reduction efforts; a slowing housing industry in the U.S. will adversely impact its sales and margins. Moreover, the stock already trades at a premium to the industry median multiple, which adequately reflects the overall positive fundamental outlook. Hence, we retain our Hold rating on shares of BECN.

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.

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.

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,
   the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated an UPTREND on 04-30-2008 for MBRX @
   $2.68. As of Thursday, 06-12-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated
   an UPTREND on 05-30-2008 for SGP @ $20.22. 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 � 2004-2008 Comtex News Network, Inc. All rights
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