Zacks Bull and Bear of the Day Highlights: CNOOC, Amazon.com, Molson Coors and The Coca-Cola Company

Business Wire, Feb 6, 2007

CHICAGO -- Zacks Equity Research highlights CNOOC, Ltd. (NYSE: CEO) as the Bull of the Day and Amazon.com (Nasdaq: AMZN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Molson Coors Brewing Company (NYSE: TAP) 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 CNOOC, Ltd. (NYSE: CEO). CNOOC has reported positive results in recent quarters, primarily due to high oil prices and increased production. The company continues to achieve steady growth in oil and gas production and reserves. Although there are concerns related to the volatility in global oil prices, higher operating costs, and regulatory changes, we think that the company's current valuation does not fairly reflect its positive production growth profile and leverage to the Chinese natural gas market. Therefore, we maintain our Buy rating on the stock.

Bear of the Day:

Our Bear of the Day recommendation is for Amazon.com (Nasdaq: AMZN). Amazon reported solid results for the fourth quarter and indicated that it would produce strong sales in 2007 as well. Even so, we believe that investors should avoid owning AMZN shares. Our negative view comes from our opinion that Amazon's strong top-line growth will continue to come at the expense of lower profit margins. And if Amazon begins to focus on increasing its margins, its sales growth will slow dramatically. What's more, the stock trades at a rich valuation of 62.4 times our 2007 GAAP-based EPS estimate. All told, we expect the stock to experience a severe P/E multiple contraction over the next several quarters, as its stock price moves to a more reasonable valuation.

Analyst Blog:

Molson Coors Brewing Company (NYSE: TAP), formed through the 2005 merger between Molson and Adolph Coors, has greater scale and financial strength so that the company can compete better with major brewers. Though soft volume trends, especially in Europe, produced a few disappointing earnings reports, the subsequent dramatic decline in the stock's price discounted much of investors' disappointment. Despite the sale of the majority interest of Cervejarias Kaiser, we maintain the Hold recommendation due to the continuing competitive uncertainties in Europe.

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 world-wide 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 maintained.

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.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2650.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.