KKR shares look undervalued – Barron’s

July 25 (Reuters) – Some value-attuned hedge-fund managers are dissecting KKR’s business in a way that makes it look undervalued, Barron’s reported in its July 26 edition.

The long-anticipated U.S. stock debut of Kohlberg Kravis Roberts & Co (KKR.N) had proved a disappointment in mid-July as investors shied away from the private equity firm that made its name with the leveraged buyout of RJR Nabisco in 1988. [ID:nN15209250]

KKR debuted at $10.50, and has traded lower from there, in part due to some apparent technical selling by investors unable to exit the stock when it was listed in Europe, the paper said. It closed Friday at $9.50.

The newspaper also urged investors to try valuing potential future performance fees on the $27 billion of deals housed in the company’s private-equity funds and those of deals not yet done and funds not yet raised. (Reporting by Dhanya Skariachan; Editing by Diane Craft)

Smurfit-Stone, LyondellBasell potential winners-Barron’s

July 25 (Reuters) – Shares of linerboard maker Smurfit-Stone, chemical company LyondellBasell Industries and ethanol producer Aventine Renewable are potential winners among companies emerging from bankruptcy, Barron’s reported in its July 26 edition.

The financial paper advised investors to avoid stocks of theme-park operator Six Flags, yellow-pages publisher Dex One, SuperMedia and cable-TV operator Charter Communications.

Shares of Lyondell, which cut its debt load to $7 billion from $25 billion in bankruptcy and emerged with $2 billion in cash, look appealing at current levels, down from when it came out of bankruptcy in April, the paper said.

“Smurfit-Stone offers an attractive play on the improving market for linerboard, used to make cardboard boxes. It also could benefit from industry consolidation,” the paper added. (Reporting by Dhanya Skariachan)

Buy Apple, Microsoft shares – Barron’s

July 25 (Reuters) – Shares of tech giant Apple Inc (AAPL.O) and software company Microsoft Corp (MSFT.O) are still worth buying, Barron’s said in its July 26 edition.

Despite the tepid margin outlook for the current quarter and the fact that Apple’s stock has nearly tripled over the past 18 months, Apple shares are still attractive, the financial newspaper reported.

“Apple remains the best growth story anywhere, it really isn’t expensive, the economic downturn didn’t slow it one iota and it deserves a place in every tech portfolio,” Barron’s said in its “Technology Trader” column.

The newspaper recommended shares of Microsoft, citing its “blowout” results in the latest quarter and its upcoming initiatives, including the roll-out of the first smartphone using the new Windows Phone 7 OS, and the debut of Kinect, the new hands-free interface for the Xbox 360 game console.

Like Apple, Microsoft has an enormous cash pile, the newspaper pointed out, adding that Microsoft’s shares are “super cheap.”

At around $26, Microsoft stock trades for just 11 times the Street consensus forecast for the June 2011 fiscal year, a consensus number that seems destined to rise, the paper said. (Reporting by Dhanya Skariachan, editing by Maureen Bavdek)

Barron’s sees upside for The Pantry

June 20 (Reuters) – Shares of The Pantry Inc (PTRY.O) have potential upside, Barron’s reported on Sunday, as the convenience store operator may be an attractive takeover target.

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The Pantry, which operates the Kangaroo Express convenience stores, have been trading at a much lower multiple than the one implied by a recent hostile bid for rival Casey’s General Stores Inc (CASY.O) by Canada’s Alimentation Couche-Tard Inc [ATD.UL], Barron’s said.

While it is unlikely that The Pantry could trade at the same multiple as Casey’s, it could close some of the gap, Barron’s said, adding that convenience stores have not consolidated as much as other sectors of retail. (Reporting by Martinne Geller; Editing by Marguerita Choy)

Hammered US steel stocks at attractive level-Barron’s

June 20 (Reuters) – Shares of U.S. steel companies are undervalued after being battered in recent months by global economic worries, Barron’s reported on Sunday.

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Assuming that steel demand does not collapse, Barron’s said steel stocks — such as United States Steel Corp (X.N), Nucor Corp (NUE.N), Steel Dynamics Inc (STLD.O) and AK Steel Holding Corp (AKS.N) — could rise 40 percent to 70 percent over the next year.

Even though steel stocks are volatile, Barron’s said they look tempting for long-term investors who think the economy is slowly healing. (Reporting by Martinne Geller; Editing by Marguerita Choy)

Fujitsu shares could fall another 10 pct-Barron’s

June 13 (Reuters) – Fujitsu Ltd’s (6702.T) shares could fall another 10 percent unless it is able to end a lingering dispute over the ouster of former President Kuniaki Nozoe, Barron’s reported on Sunday.

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Fujitsu, Japan’s top IT services company, has seen its shares fall more than 16 percent since it reported upbeat expectations for the year on April 30, Barron’s reported.

Nozoe was threatening to sue the company’s directors and he told Barron’s he was considering launching a proxy fight to win representation on the board.

Nozoe is fighting Fujitsu executives over his claim that he was improperly forced to step down as president in September because of allegations of dealing with a company with suspected links to organized crime. [ID:nTOE63T06L]

The controversy may have been baked into Fujitsu’s share price, analyst Damian Thong at Macquarie Research in Tokyo, told Barron’s.

But analyst Takeo Miyamoto at Deutsche Bank in Tokyo said optimism over Fujitsu’s positive outlook on 2010 may have been overdone to assuage investors’ concerns, according to Barron’s June 14 issue.

Miyamoto has a $30, 12-month target for Fujitsu’s American depositary receipts (FJTSY.PK), which closed at $30.75 on Friday.

The analyst said Fujitsu needs to make additional management changes to become a top-tier global player, according to Barron’s. The newspaper said that kind of reform was unlikely, making Fujitsu’s shares similarly unlikely to see any big rally. (Reporting by Elinor Comlay, editing by Maureen Bavdek)

AVI BioPharma shares could rise: Barron’s

(Reuters) – Shares in biotechnology company AVI BioPharma (AVII.O) could rise significantly in the next 12 months if it continues to report favorable results from trials of its drugs, Barron’s reported on Sunday.

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AVI BioPharma is working on treatments for high-profile diseases such as swine flu, according to Barron’s.

The company earlier this month reported positive results from a study of a drug it designed to treat a genetic muscle-wasting disease.

But AVI shares have seen little recognition from Wall Street, in part because the company has no drugs on the market, it is in the early stages of testing its treatments and it has little revenue outside of government grants, the newspaper reported.

The company is seeking a large investment partner that could help finance its drug development and help validate the company, Barron’s said. If it is able to do such a deal, AVI shares could jump significantly, the newspaper said.

AVI shares closed at $1.45 on Friday. The shares were at $1.46 at the end of 2009.

(Reporting by Elinor Comlay; Editing by Diane Craft)

ATM inventor John Shepherd-Barron, 84, dies after short illness

London, May 20(ANI): John Shepherd-Barron, the Scotsman credited with inventing the world’s first automatic teller machine, now known as ATMs, has died after a short illness. He was 84.

Shepherd-Barron died in Scotland’s Raigmore Hospital on Saturday.

He had come up with the concept of a self-service cash dispenser in 1965 while lying in a bath after getting to his bank too late to withdraw money.

The businessman, who worked for the printing firm De La Rue Instruments at the time, said he was inspired by chocolate vending machines and put the idea to the head of Barclays Bank “over a pink gin”, The Telegraph reported.

The first ATM was installed at a Barclays’ branch in London in 1967.

Shepherd-Barron did not patent his system and did not make any money from his invention, but was made an OBE in 2005 for his services to banking. (ANI)

Amateur Barron banks hopes on All Whites selection

While New Zealand’s central bank was leaving the official cash rate unchanged at a record low on Thursday, Westpac senior operations administrator Andy Barron was stretching at a sun drenched North Harbour Stadium.

The 29-year-old, who works for the bank’s wealth division and helps manage about NZ$1 billion ($718.4 million) of “high net-worth” customers’ investment portfolios, was instead pinning his hopes on making the All Whites team for the World Cup finals.

“To be on that plane would be fantastic,” the midfielder told reporters at the All Whites’ pre-World Cup training camp for Australasian-based players in Auckland. “Obviously the next two weeks are crucial.

“It’s about personal performance and making sure that I bring quality to the training and hopefully I will be on the plane.”

Barron made his international debut in 2006 and has accumulated 14 caps.

“I have thought about that. I can’t imagine there will be too many others there,” Barron said when asked how he felt being one of the few amateurs in South Africa.

His employers had been “fantastic” giving him time off work for international duty. Last year he had 10 weeks off as the All Whites played in the Confederations Cup.

“Thankfully Westpac have come to the party (and given me) two weeks special leave (for the camp).

“If it all works out (and he is selected) then it could be potentially for another seven to eight weeks, but we will cross that bridge when we get to it.”

Barron, who normally plays in front of hundreds of people for Wellington in the domestic league, said he was not unnerved by playing in front of 35,000 like he had when he came off the bench in the Asia/Oceania qualifier against Bahrain last November.

“I have been involved with the All Whites for four years now, so I am used to it and feel comfortable in that environment.

“The more you play, the more you come into the environment the more you lift your quality.

“You just forget they’re (the crowd) there. I’ve played a few times now and all you do is get in there and do your job.”

Barron, who has been mainly used as a replacement for central midfielders Simon Elliott or Tim Brown, said if selected he would not be going to South Africa to make up the numbers.

“I think that when I came on against Bahrain (it showed) that I can do that job,” he said.

“I don’t just want to be there to make up the 23. It’s about getting there, then getting on the park and playing against the best teams in the world. I will be pushing for that as much as I can.”

New Zealand have been drawn in Group F of the June 11-July 11 finals alongside holders Italy, Slovakia and Paraguay.

Amateur Barron banks hopes on All Whites selection

While New Zealand’s central bank was leaving the official cash rate unchanged at a record low on Thursday, Westpac senior operations administrator Andy Barron was stretching at a sun drenched North Harbour Stadium.

The 29-year-old, who works for the bank’s wealth division and helps manage about NZ$1 billion ($718.4 million) of “high net-worth” customers’ investment portfolios, was instead pinning his hopes on making the All Whites team for the World Cup finals.

“To be on that plane would be fantastic,” the midfielder told reporters at the All Whites’ pre-World Cup training camp for Australasian-based players in Auckland. “Obviously the next two weeks are crucial.

“It’s about personal performance and making sure that I bring quality to the training and hopefully I will be on the plane.”

Barron made his international debut in 2006 and has accumulated 14 caps.

“I have thought about that. I can’t imagine there will be too many others there,” Barron said when asked how he felt being one of the few amateurs in South Africa.

His employers had been “fantastic” giving him time off work for international duty. Last year he had 10 weeks off as the All Whites played in the Confederations Cup.

“Thankfully Westpac have come to the party (and given me) two weeks special leave (for the camp).

“If it all works out (and he is selected) then it could be potentially for another seven to eight weeks, but we will cross that bridge when we get to it.”

Barron, who normally plays in front of hundreds of people for Wellington in the domestic league, said he was not unnerved by playing in front of 35,000 like he had when he came off the bench in the Asia/Oceania qualifier against Bahrain last November.

“I have been involved with the All Whites for four years now, so I am used to it and feel comfortable in that environment.

“The more you play, the more you come into the environment the more you lift your quality.

“You just forget they’re (the crowd) there. I’ve played a few times now and all you do is get in there and do your job.”

Barron, who has been mainly used as a replacement for central midfielders Simon Elliott or Tim Brown, said if selected he would not be going to South Africa to make up the numbers.

“I think that when I came on against Bahrain (it showed) that I can do that job,” he said.

“I don’t just want to be there to make up the 23. It’s about getting there, then getting on the park and playing against the best teams in the world. I will be pushing for that as much as I can.”

New Zealand have been drawn in Group F of the June 11-July 11 finals alongside holders Italy, Slovakia and Paraguay.

Even without iPhone, AT&T can thrive-Barron’s

NEW YORK, April 25 (Reuters) – Concerns over the loss of AT&T’s (T.N) exclusive pact with Apple Inc (AAPL.O) are overshadowing AT&T’s ability to sell other services to its customers, Barron’s reported in its April 26 edition.

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The telecom company, which posted better-than-expected quarterly earnings last week, is the exclusive carrier for the iPhone. Most analysts expect this to continue until 2011.

In the meantime, investors should not overlook the company’s ability to sell data, broadband, voice and other services to home and wireless customers, the financial newspaper reported in its “Plugged In” column.

AT&T and other phone companies have also been hurt by the slowdown in the number of customers buying lucrative, long-term contracts. But AT&T said its revenue per user from data and other services continues to rise, which will compensate for slower contract growth.

Pacific Crest analyst Steve Clement has an outperform rating on the stock, with a $30 target. AT&T shares slipped 2 cents to $26.25 on Friday on the New York Stock Exchange. (Reporting by Deepa Seetharaman, editing by Maureen Bavdek)

Global growth, ‘jeggings’ to spur Guess stock-paper

NEW YORK, April 25 (Reuters) – A rapid expansion in Asia and Europe and of-the-moment fashions — like blue-jean leggings or “jeggings” — could propel Guess Inc’s (GES.N) shares as much as 25 percent higher, Barron’s said in its April 26 edition.

Stocks | Cyclical Consumer Goods

The retailer’s sales could hit a record $2.4 billion this year, the financial newspaper said. The company could see its best growth in Europe and Asia, two regions that accounted for 42 percent of total revenue last year.

Guess shares closed 57 cents higher on the New York Stock Exchange on Friday at $49.62. Its shares have surged 273 percent since March 2009. (Reporting by Deepa Seetharaman, editing by Maureen Bavdek)

Rambus Inc’s stock driven by lawsuit outcome-Barron’s

NEW YORK, April 25 (Reuters) – Chip designer Rambus Inc’s (RMBS.O) future stock performance hinges on the outcome of its $12 billion lawsuit against Micron Technology (MU.O) and Hynix Semiconductor Inc (000660.KS), Barron’s said in its April 26 edition.

Stocks | Technology

With a victory, analysts said the company’s stock could surge to $50 from around $25, the financial newspaper reported. But without a “juicy settlement or court award” the company’s shares could stumble.

Barron’s said for Rambus shares to leap, the outcome of its suit against Micron and Hynix would have to be more lucrative than its settlement with Samsung. Without a rich settlement, the stock could slide to as low as $15.

Rambus shares closed 6.4 percent higher Friday to $25.04 on the Nasdaq. (Reporting by Deepa Seetharaman, editing by Maureen Bavdek)

Abercrombie, teen stores may be overvalued-Barron’s

NEW YORK, April 11 (Reuters) – Teen clothing retailer Abercrombie & Fitch Co (ANF.N) may be overvalued by investors who expect new foreign stores to offset losses at a fifth of its U.S. stores, and have also overrated teenagers’ appetites for buying new outfits, financial weekly Barron’s said.

Stocks | Cyclical Consumer Goods

The paper reported in its April 12 edition that some investors believe the opening of higher-margin international stores will grow to 20 percent of operating income by 2011.

It said Abercrombie trades at $50 a share, or 28 times 2010 profits, its highest multiple in a decade and one of the highest among the “overpriced” teen retailers.

The paper quotes Brian Sozzi of Wall Street Strategies saying of Abercrombie stock: “In our view the product is just not turning the corner as quickly as management wishes.”

Barron’s said other teen retailers like Hot Topic (HOTT.O) and Zumiez (ZUMZ.O) are trading at 30 and 36 times projected profits.

It expects that the high price-earnings ratios will come down as profits rebound and teens start buying again though Barron’s is not sure that will be enough.

“How many plaid shirts and skinny destroyed jeans can (teens) buy?” the paper asked. (Reporting by Yinka Adegoke, editing by Maureen Bavdek)

Bruker stock could climb on rising sales-Barron’s

NEW YORK, April 11 (Reuters) – Biotech toolmaker Bruker Corp’s (BRKR.O) shares could climb as business and the economy improves this year, financial weekly Barron’s said.

Stocks | Healthcare

The paper reported in its April 12 edition that Bruker shares could rise from a current $14.50, to $18 as its sales rise 10 percent a year — twice as fast as its rivals.

Bruker, which is based in Billerica, Massachusetts, is receiving a boost from a pick-up in government, academic and corporate research spending as the economy improves.

Brean Murray Carret analyst Jose Haresco is quoted in the article as saying Bruker stocks may rise 33 percent within the next 12 months to about $18.

“Bruker has a loyal customer base, its high-tech equipment allows it to charge a premium,” Haresco said. (Reporting by Yinka Adegoke, editing by Maureen Bavdek)

Pickens’ Clean Energy shares set for a fall -Barron’s

NEW YORK, April 11 (Reuters) – Shares in Clean Energy Fuels (CLNE.O), the natural gas company controlled by energy tycoon T.Boone Pickens, are likely to drop at least 30 percent due to its high valuation and an upcoming dilution of its share base, according to financial weekly Barron’s.

Stocks | Utilities

The paper, in its April 12 edition, said that Clean Energy’s healthy business prospects have already been more than priced into the company’s recent valuation at 45 times 2010 cash flow and 20 times average forecasts for 2011 — about double the multiples of some rival companies.

Shareholders of Clean Energy can expect to get massively diluted as management has plenty of stock options and warrants hanging over the company will dilute earnings almost 30 percent.

The warrants include some that Pickens must exercise before 2012 or lose a profit of $150 million.

(Reporting by Yinka Adegoke; editing by Gunna Dickson)

Lazard stock could get bump if it cuts pay -Barron’s

NEW YORK, April 11 (Reuters) – Shares in Lazard Ltd (LAZ.N) could rise more than 35 percent if the financial advisory and asset management firm lowers the compensation it pays to employees, said financial weekly Barron’s.

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The paper, in its April 12 issue, said the firm paid 86 percent of its revenue into compensation and benefits in 2009, compared with 36 percent at Goldman Sachs (GS.N) and above the industry standard of around 50 percent.

It said Lazard shares recently trade around 16 times 2010 earnings of $2.25 a share, which the paper said was at a discount to the stocks of rival financial advisory specialists Evercore Partners (EVR.N) and Greenhill (GHL.N) because investors doubt that Lazard is serious about trimming compensation.

Barron’s said at a 50 percent compensation ratio Lazard 2010 earnings could hit $3.34 a share. (Reporting by Yinka Adegoke; editing by Gunna Dickson)

Bruker stock could climb on rising sales-Barron’s

NEW YORK, April 11 (Reuters) – Biotech toolmaker Bruker Corp’s (BRKR.O) shares could climb as business and the economy improves this year, financial weekly Barron’s said.

Stocks | Healthcare

The paper reported in its April 12 edition that Bruker shares could rise from a current $14.50, to $18 as its sales rise 10 percent a year — twice as fast as its rivals.

Bruker, which is based in Billerica, Massachusetts, is receiving a boost from a pick-up in government, academic and corporate research spending as the economy improves.

Brean Murray Carret analyst Jose Haresco is quoted in the article as saying Bruker stocks may rise 33 percent within the next 12 months to about $18.

“Bruker has a loyal customer base, its high-tech equipment allows it to charge a premium,” Haresco said. (Reporting by Yinka Adegoke, editing by Maureen Bavdek)

Pickens’ Clean Energy shares set for a fall -Barron’s

NEW YORK, April 11 (Reuters) – Shares in Clean Energy Fuels (CLNE.O), the natural gas company controlled by energy tycoon T.Boone Pickens, are likely to drop at least 30 percent due to its high valuation and an upcoming dilution of its share base, according to financial weekly Barron’s.

Stocks | Utilities

The paper, in its April 12 edition, said that Clean Energy’s healthy business prospects have already been more than priced into the company’s recent valuation at 45 times 2010 cash flow and 20 times average forecasts for 2011 — about double the multiples of some rival companies.

Shareholders of Clean Energy can expect to get massively diluted as management has plenty of stock options and warrants hanging over the company will dilute earnings almost 30 percent.

The warrants include some that Pickens must exercise before 2012 or lose a profit of $150 million.

(Reporting by Yinka Adegoke; editing by Gunna Dickson)

Lazard stock could get bump if it cuts pay -Barron’s

NEW YORK, April 11 (Reuters) – Shares in Lazard Ltd (LAZ.N) could rise more than 35 percent if the financial advisory and asset management firm lowers the compensation it pays to employees, said financial weekly Barron’s.

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The paper, in its April 12 issue, said the firm paid 86 percent of its revenue into compensation and benefits in 2009, compared with 36 percent at Goldman Sachs (GS.N) and above the industry standard of around 50 percent.

It said Lazard shares recently trade around 16 times 2010 earnings of $2.25 a share, which the paper said was at a discount to the stocks of rival financial advisory specialists Evercore Partners (EVR.N) and Greenhill (GHL.N) because investors doubt that Lazard is serious about trimming compensation.

Barron’s said at a 50 percent compensation ratio Lazard 2010 earnings could hit $3.34 a share. (Reporting by Yinka Adegoke; editing by Gunna Dickson)