Zacks Bull and Bear of the Day Highlights: Votorantim Celulose, Playtex Products, Marchex and The Coca-Cola Company

Business Wire, Oct 12, 2006

CHICAGO -- Zacks Equity Research highlights Votorantim Celulose (NYSE: VCP) the Bull of the Day and Playtex Products (NYSE: PYX) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Marchex, Inc. (Nasdaq: MCHX) and The Coca-Cola Company (NYSE: KO). 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 Votorantim Celulose (NYSE: VCP). We were particularly encouraged by solid second quarter results, and also expect good results for the third quarter thanks to the continued high prices of pulp and paper. We find it particularly interesting that the company has been achieving solid results within a challenging business environment. Additionally, the positive outlook for domestic interest rates in Brazil, the company's high dividend payout, and the attractive valuation should continue to drive the stock higher in the short term.

Bear of the Day:

Our Bear of the Day recommendation is for Playtex Products (NYSE: PYX). Management is investing in new product innovations to enhance market share and top-line performance. However, Playtex competes against companies with large resources, such as Proctor & Gamble and Johnson & Johnson; hence, investments in marketing and a heavy debt burden restrain profit growth. In February 2006, management reduced long term growth targets for sales and operating income. Despite the recent acquisition of a position in Playtex by Harbert Management, the high valuation level compels us to initiate a Sell recommendation.

Analyst Blog:

As a relatively new entrant in the Internet advertising market, Marchex, Inc. (Nasdaq: MCHX) has demonstrated impressive top-line growth as it attempts to consolidate the market for local advertisers. The company passed the inflection point towards profitability and we believe that spending on Internet advertising is poised to accelerate. However, as growth in the U.S. economy slows, we are concerned that advertisers in some industries will also slow spending. We therefore cut our rating on MCHX to Hold with a price target of $16.50.

The Coca-Cola Company (NYSE: KO) has strong soft drink brands, leading market shares, and generates solid cash flow. The company's CEO, E. Neville Isdell, announced a revitalization plan in November 2004 to deal with the challenges of sluggish volume trends. The plan includes a reduction in the long-term earnings per share growth target from the 11% to 12% range to high single-digits. Though worldwide volume growth has begun to improve, it has required incremental marketing spending of $400 million annually. In addition, volumes continue to decline in several markets, e.g. the Philippines and India. The Hold recommendation is re-initiated.

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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