Zacks Analyst Blog Highlights: The Potash Corporation of Saskatchewan, Inc., Freddie Mac, Fannie Mae, OSI Pharmaceuticals, Inc. And Stoneridge, Inc.
Thursday, October 09, 2008 12:19 AM
Symbols: FNM, FRE, OSIP, POT, SRI
(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

312-265-9380

Visit: www.zacks.com

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: The Potash Corporation of Saskatchewan, Inc. (NYSE: POT), Freddie Mac (NYSE: FRE), Fannie Mae (NYSE: FNM), OSI Pharmaceuticals, Inc. (Nasdaq: OSIP) and Stoneridge, Inc. (NYSE: SRI).

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 Wednesday's Analyst Blog:

Potash Corp. Fair Around $90

The Potash Corporation of Saskatchewan, Inc. (NYSE: POT), a Canadian corporation based in Saskatoon, Saskatchewan, is the world's largest fertilizer enterprise producing three primary plant nutrients potash, phosphate and nitrogen. The company was created by the government of Saskatchewan in 1975.

Potash Corp. has benefited from higher fertilizer application rates, higher crop plantings, increasing demand for biofuels and rising crop prices. Rising fertilizers prices, especially potash, will expand POT's margin.

Freddie Sell Rec Unchanged

The shares of Freddie Mac (NYSE: FRE) have been extremely volatile over the past few weeks, since the U.S. federal regulators outlined their takeover plans for the two GSEs, trading between $0.25 per share and $2.95 per share.

Valuation remains a messy exercise in the absence of good financial information for both FRE and Fannie Mae (NYSE: FNM), its closest peer. Our ultimate goal is to value FRE based on a core version of operating earnings (avoiding the numerous mark-to-market adjustments for hedge instruments that fail to qualify for hedge accounting treatment), but as yet we have none to use. In our view, however, several things continue to argue for an average valuation.

OSI Pharma Gets Bad News

Biotechnology company OSI Pharmaceuticals, Inc. (Nasdaq: OSIP) announced that a randomized phase III study evaluating Avastin in combination with Tarceva in patients with advanced non-small cell lung cancer failed to meet its primary endpoint of improving overall survival compared to Tarceva in combination with a placebo. We believe the data will have a negative effect on the share price in the short term and since the price has already achieved our target, we are downgrading the shares from Buy to Hold.


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