Zacks Bull and Bear of the Day Highlights: Schering-Plough, AMCORE Financial, Centennial Comm and Aladdin Knowledge Systems

Business Wire, July 26, 2006

CHICAGO -- Zacks Equity Research highlights Schering-Plough Corporation (NYSE:SGP) as the Bull of the Day and AMCORE Financial (Nasdaq:AMFI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Centennial Comm (Nasdaq:CYCL) and Aladdin Knowledge Systems (Nasdaq:ALDN). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for Schering-Plough Corporation (NYSE:SGP), which is engaged in the development, manufacturing and marketing of pharmaceutical products around the world. The company focuses on prescription drugs, animal health, foot-care and sun-care products. Lead products include its antihistamine franchise Claritin/Clarinex and a cholesterol-lowering joint-venture therapy treatment (Vytorin) with Merck. The turnaround is underway at SGP. The company should deliver the highest 4-year earnings growth rate in the large-cap pharmaceutical industry. Valuation becomes attractive based on recovery EPS in 2008 and 2009. We recommend investors Buy the name up to $26.

Bear of the Day:

Our Bear of the Day recommendation is for AMCORE Financial (Nasdaq:AMFI). We are reiterating our Sell rating after an in-line Q2 earnings release. Diluted EPS was consistent with our estimate and consensus, which both had come down significantly after Q1 earnings. NII was weaker than expected, on softer loan growth, while non-interest income was better than projected. Revenue was a bit lower than expected overall, while expenses were a bit higher, but the miss was much smaller than in Q1. The allowance did not quite cover NCOs. We continue to sense some mismatch between expense growth and revenue growth (owing to the branching initiative and increased compliance costs). We expect both ROE and ROA to be significantly lower in 2006. We view the $0.74 annual dividend as secure.

Analyst Blog:

We maintain our Sell rating on Centennial Comm (Nasdaq:CYCL), a regional provider of wireless and integrated communications ahead of the fiscal fourth quarter results (expected on August 10, 2006). Third quarter (ended February) results were a mixed. Although subscriber retention improved in the U.S., overall corporate performance was offset by operating weakness in the Caribbean, where lower user revenues and higher churn rates contributed to an operating loss for the quarter. In addition, the company's recent decision to resort to further leverage on the balance sheet by issuing $550 million of new debt and using proceeds to pay a special dividend has significantly raised the company's risk profile. We are concerned with net debt of approximately $2.0 billion and limited cash liquidity.

Aladdin Knowledge Systems (Nasdaq:ALDN) recently reported its second quarter results that were in-line with its pre-released range. Revenues of $20.1 million, were up 4% year over year, and well below our previous expectations due to weakness in the U.S. and Japan. While earnings were in-line with our previous results, it was primarily due to lower selling and marketing expenses and higher financial and other income, which may be related to currency fluctuations. We remain concerned about Aladdin's business as its sales are slowing, and the uncertainty in the region also may have a negative effect on growth in the near-term. We continue to rate shares of ALDN a Hold at this time.

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

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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