Zacks Bull and Bear of the Day Highlights: CF Industries, Charlotte Russe, Genta, DPL, Inc. and AXA Group

Business Wire, July 31, 2008

CHICAGO -- Zacks Equity Research highlights CF Industries (NYSE: CF) as the Bull of the Day and Charlotte Russe (Nasdaq: CHIC) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Genta, Inc. (Nasdaq: GNTA), DPL, Inc. (NYSE: DPL) and AXA Group S.A. (NYSE: AXA).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: CF Industries (NYSE: CF)

CF Industries has leading market shares in many key fertilizers. Strong domestic and international grain markets have produced an exceptionally high global demand for fertilizer, translating into substantially higher selling prices for all the products. The company is optimistic about its phosphate business where the market is expected to remain tight near term due to healthy offshore demand growth in India and Brazil as well as higher application rates in the US. This is likely to lead to higher prices and cash margins for various fertilizers.

In addition, the company is likely to benefit from the proposed nitrogen facility in Peru, which will address the nitrogen demand on the west coast of Central and South America as well as Mexico where there is no existing nitrogen facility. As a result, we rate the shares a Buy with a target of $175.00.

Bear of the Day: Charlotte Russe (Nasdaq: CHIC)

Charlotte Russe reported disappointing fiscal third quarter results, and management indicated that the problems will continue into the fourth quarter. The company expects to earn $0.15-$0.23 per share, which was well below the previous consensus of $0.30 and our previous estimate of $0.28.

CHIC shares may look cheap at these levels, but we expect further deterioration in its business. That, combined with its CEO retiring, the company's new store openings, and macro headwinds will continue to pressure Charlotte Russe's profit margin. We are reducing our fiscal 2008 EPS estimate from $1.30 to $1.18 and our fiscal 2009 EPS from $1.40 to $1.00. Our estimates are well below the consensus view, and we expect the consensus estimates to continue falling over the next few months.

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Genta, Inc. (Nasdaq: GNTA)

After getting a "non-approvable" notice for its leading candidate, Genasense, in 2006, Genta filed an appeal with the Food and Drug Administration in April last year and got a positive response this March. Positive results from the AGENDA trial will support the worldwide filing of Genasense as a treatment for melanoma. However, results from the phase III trial are not expected before end of 2008.

The future of Genasense still remains uncertain. In July 2007, the European Medicines Agency (EMEA) indicated that approval of Genasense in melanoma will require the conduct of another clinical study. Genta believes that the AGENDA trial will be able to address the EMEA's requirement adequately.

DPL, Inc. (NYSE: DPL)

DPL continues to benefit from its stable regulated electric power operations. The first half of 2008 saw gains on sale of emission allowances, successful completion of the scrubber project, higher rates, mainly in the retail and wholesale segments, focus on debt reduction and higher generation output.

However, increased purchased power and fuel costs, renewable energy thrust in the new Ohio electric energy bill and uncertainty over the successful allocation of new capital towards greater earnings power remain concerns. We maintain a Buy recommendation on DPL common stock with a six-month target price of $28.25.

AXA Group S.A. (NYSE: AXA)

AXA Group, through its subsidiaries provides financial protection and asset management, services primarily in Western Europe, North America, the Asia-Pacific region, the Middle East and Africa.

The company has positive cash flow in all of its operations, and an increase in interest rates will be positive for the reinvestment of its cash flow. In addition, higher interest rates will lead to higher profit margins in the company's guaranteed insurance products. We are forecasting a 5% equity return for the market for the next six months. If there is a slight improvement in equity markets, this would feed into stronger earnings for AXA's asset management, life insurance, and property and casualty (P&C) insurance segments, as the value of its equity portfolios would rise.

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About the Bull and Bear of the Day

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