Benzinga's Top Downgrades With Color for April 24, 2012
Listed below are today's Benzinga's Top Downgrades with analyst color:
"We are downgrading shares of B.I.G to Hold from Buy following its negative update on 1Q SSS. While we walked away concerned following our management meetings last month in Boston (see our 3/29 FC note entitled, “Not All Is Good in Buckeye Land, Meeting Notes”), the magnitude of the shortfall (given the compare) and the category of weakness (i.e. consumables) raises structural issues (again, ala 3Q10). Exacerbating the company's credibility issues – the team at BIG is no longer attending a competitor's conference tomorrow, which only deepens our concerns."
"After the close on Friday, RVSB issued an earnings warning in which it projected a loss per share ranging from $0.55 to $0.60 for 4Q12, which implies a TCE ratio of roughly 6.4%. Combined with 3Q12, the 2-quarter combined loss per share will exceed the amount of equity raised in RVSB's most recent offering in 3Q10, making a recapitalization from here extremely difficult. Thus, we believe the only good option remaining is a sale of the company, and we believe there are multiple parties that could be interested in acquiring RVSB."
"We believe CMG remains one of the best growth stories in consumer, and 25%-plus EPS growth remains a tailwind to the share price. However, we see less near-term opportunity for positive EPS revisions to serve as a catalyst, and also believe slowing 2-year comp momentum limits room for multiple expansion, if not raises the risk of some multiple compression. As such, we believe a Neutral rating is more appropriate at this time."
"In our view, while the asset value of CLWR's spectrum remains the same, near-term bandwidth availability from VZ, and potentially DISH, could delay CLWR's spectrum sale. We believe CLWR funding gap of $2.5 billion could become a challenge as early as 2Q13 in the absence of an asset sale."
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