Zacks Bull and Bear of the Day Highlights: Cadbury Schweppes, Kimberly-Clark, Micromet and Embratel Participacoes S.A

Business Wire, May 31, 2006

CHICAGO -- Zacks Equity Research highlights Cadbury Schweppes (NYSE:CSG) as the Bull of the Day and Kimberly-Clark Corporation (NYSE:KMB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micromet, Inc. (Nasdaq:MITI) and Embratel Participacoes S.A. (NYSE:EMT). 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 Cadbury Schweppes (NYSE:CSG), whose management is improving organizational performance, specifically through the implementation of Fuel for Growth and Smart Variety Plans, in order to improve margins. Also, the company is more focused: in last few months, the integration of Adams Confectionery acquisition has been completed, and the non-core European Beverage business was divested. In addition, the savings from the Fuel for Growth program and price increases have more than offset the negative effect from rising input costs.

Bear of the Day:

Our Bear of the Day recommendation is for Kimberly-Clark Corporation (NYSE:KMB). Kimberly-Clark has strong consumer brands and is well respected for product innovation, especially in the diaper category. Despite progress on the company's three cost savings programs (FORCE, the Global Business Plan, and the Competitive Improvement Initiatives), rising raw material costs, weak European operations, and competitive pressures are negatively impacting results.

Analyst Blog:

Micromet, Inc. (Nasdaq:MITI) was formed through the merger of U.S.-based CancerVax and privately held Munich-based European biopharmaceutical company Micromet AG. The company reported a 1Q06 net loss of $8M, or $0.29 per share, reflecting the financial results of CancerVax prior to the merger, which was completed in May 2006. Given the depth of the now expanded product pipeline, we anticipate several milestone announcements in 2H06, which we believe represent potential share price catalysts. We remain positive with the company's strategic direction and retain our Hold at current levels given the integration risk associated with the merger.

We maintain our Hold recommendation on Embratel Participacoes S.A. (NYSE:EMT). On May 9, Telmex surprised the market announcing its intention to make a cash tender offer to acquire all the free float of the Brazilian company. We believe that the deal is positive for the stockholders, and that Telmex should have no problem getting approval for the deal from Brazilian authorities. However, the ADR has been losing value due to the depreciation of the Brazilian real and concerns related to higher U.S. interest rates.

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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