Zacks Bull and Bear of the Day Highlights: Coca-Cola FEMSA, Acorda Therapeutics, XTO Energy, SiRF Technology and Hallmark Financial Services

Business Wire, June 5, 2008

CHICAGO -- Zacks Equity Research highlights Coca-Cola FEMSA (NYSE: KOF) as the Bull of the Day and Acorda Therapeutics (Nasdaq: ACOR) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on XTO Energy (NYSE: XTO), SiRF Technology (Nasdaq: SIRF) and Hallmark Financial Services (Nasdaq: HALL).

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: Coca-Cola FEMSA (NYSE: KOF)

We are keeping our Buy recommendation on Coca-Cola FEMSA S.A. de C.V. The company posted better-than-expected results for the first quarter of 2008. The results in the Mercosur division were particularly impressive, and its Mexican results also showed a considerable improvement. Additionally, the short-term outlook for Latin American economic growth remains positive, despite the difficult economic environment in the U.S. and its effects on Mexico.

Bear of the Day: Acorda Therapeutics (Nasdaq: ACOR)

Acorda Therapeutics released top-line results from its phase III MS-F204 clinical trial and the stock soared 30% on the news. Now, with two positive phase III trials designed under an SPA under its belt, the odds are very good that Fampridine-SR receives FDA approval late 2009 or early 2010.

However, despite the fact that the MS-F204 trial offered up positive results, we remain unconvinced that Fampridine-SR will see significant use upon approval. And, at the current level, we believe Acorda's stock is significantly overvalued and expectations for profitability and future cash flow are entirely too high.

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XTO Energy (NYSE: XTO)

XTO Energy, Inc. is expected to maintain its impressive production-growth momentum in 2008. The company's move into the oil-rich Bakken Shale area of North Dakota and Wyoming with a $1.85 billion purchase of producing properties and undeveloped acreage has now established the company as a leading producer and leasehold owner in this emerging oil shale play.

We have increased our 2008 and 2009 EPS estimates to reflect increased production volumes and a higher price deck. However, we believe that the stock's current valuation already reflects XTO's strong production-growth profile and competitive cost structure.

SiRF Technology (Nasdaq: SIRF)

We maintain our Hold recommendation on SiRF Technology Holdings, Inc., as the current market valuation appears reasonable. Several end-markets that have the potential to significantly revise expectations upwards don't appear to be near-term catalysts. A number of SiRF's customers and several providers into the Personal Navigation Devices (PNDs) market have indicated softness in the marketplace.

SiRF is the leading supplier of Global Positioning System, or GPS, semiconductor solutions designed to provide location awareness capabilities in high-volume mobile consumer and commercial systems. Its problems over the past three quarters stem from its inability to compete in the cellular handset market.

Hallmark Financial Services (Nasdaq: HALL)

We maintain our Hold rating on Hallmark Financial Services Inc., as we anticipate the company to leverage its suite of products by broadening its geographical niches as well as its current product offerings within its existing markets in the coming years. However, it is difficult to expect the shares to retest their recent priced-to-perfection level over the near-to-medium term.

Given the soft market conditions, we expect HALL to experience a reduction in writing premium, thereby causing a reduction in profit margins and revenues. Accordingly, increased competition and rate pressure have challenged premium volume growth by the Standard Commercial Segment and really do not see the potential for premium volume improvement in 2008.

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