Zacks Bull and Bear of the Day Highlights: Verisign, MannKind, Ford and Lamar Advertising

Business Wire, Jan 4, 2008

CHICAGO -- Zacks Equity Research highlights Verisign, Inc. (Nasdaq: VRSN) as the Bull of the Day and MannKind Corp. (Nasdaq: MNKD) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (NYSE: F) and Lamar Advertising Company (Nasdaq: LAMR). Full analysis of all these 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 Verisign, Inc. (Nasdaq: VRSN). We think VRSN is well positioned while dealing with the management change and in spite of the weak Q4 guidance. The main catalysts going forward are the expectation of margin improvements and the prospect of restructuring to divest non-synergistic business segments. The company's core business remains robust with its DNL and SSL franchises expected to benefit from a few key drivers over the next few years (extension of its .com registry, with ICANN though 2012 and 10% price increases annually). Cash-flow metrics continue to be encouraging.

Bear of the Day:

Our Bear of the Day recommendation is for MannKind Corp. (Nasdaq: MNKD). MannKind is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diabetes, cancer, and inflammatory diseases. Its lead product, the Technosphere Insulin System for the treatment of diabetes, is in phase III trials in the U.S. We believe Technosphere has certain intriguing beneficial characteristics that could make the product a success. However, the company has been unable to find a partner for the drug, competition is fierce in this field, commercialization is still at least two years away and the company is burning cash at too high a rate. We maintain our Sell rating for the stock with a revised target price of $6.50.

Analyst Blog:

Ford's (NYSE: F) 'Way Forward Plan,' undertaken to restore profitability of the North American automotive business, its new products, profitable financial services business, and cost reduction efforts are some of the positive factors affecting the company. However, an anticipated difficult operating environment is our main concern. The ongoing negotiation with the labor union, if successful, will be a sigh of relief for the company. The stock is trading at 13.2x 2008 earnings estimate of $0.50 per share. Although the company's new product launches, cost-cutting efforts and the appointment of a new CEO make us optimistic, its continued market share loss, lowered credit ratings, waning SUV sales, and a tougher operating environment concern us. The company reported third quarter earnings of -$0.01 before unusual items, compared to -$0.45 in the year-ago quarter. Revenue was $41.1 billion, compared to $37.1 billion last year.

Lamar Advertising Company (Nasdaq: LAMR) is benefiting from the rebound in pricing for local advertising and a stronger billboard business. Despite increased capital expenditures in the effort to digitize signs, higher expenses related to the recently acquired outdoor advertising assets, and higher interest expense from the increased debt level, free cash flow continues to expand. Interestingly, beneficial owner SPO Advisory Corporation has acquired an additional 1.5 million shares over the last few months, bringing its total holding to 9.5 million shares of the company. Lamar's stock has traded in a wide price-to-cash flow (P/CF) multiple range of 10 to 22 over the last five years.

Get the full analysis of all these 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.