Zacks Bull and Bear of the Day Highlights: SINA Corporation, MBIA, Wonder Auto Technology, Cyclacel Pharmaceuticals and Nordstrom

Business Wire, May 19, 2008

CHICAGO -- Zacks Equity Research highlights SINA Corporation (Nasdaq: SINA) as the Bull of the Day and MBIA, Inc. (NYSE: MBI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wonder Auto Technology (Nasdaq: WATG), Cyclacel Pharmaceuticals, Inc. (Nasdaq: CYCC) and Nordstrom (NYSE: JWN).

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: SINA Corporation (Nasdaq: SINA)

For the first quarter of 2008, its revenue exceeded the market consensus while EPS met the market's expectations. This was in spite of the abnormally bad weather in China. SINA continued to do well in its online brand advertising and increased the gap between it and its closest competitor in the online brand ad market. SINA is still one of the most well-known online brands in China. Moreover, the Beijing Olympic Games can significantly stimulate the online advertising business in China in the next several quarters. Therefore, we are maintaining our Buy rating for SINA.

Bear of the Day: MBIA, Inc. (NYSE: MBI)

Core 1Q08 operating results were a loss of $3.01 per share, substantially worse than our estimate for a loss of $0.30 per share. The bulk of the loss came through the unrealized pretax loss of $3.6 billion on the company's credit derivative portfolio and CDO. The company also experienced a 43.1% drop in net premium written, the entry of Berkshire Hathaway will further intensify the competition. Though the company has managed to hold on to its AAA credit rating with a negative outlook, we remain concerned for further rating downgrade. Also, continued concerns for further deterioration in the mortgage markets should not bode well for results over the next several quarters.

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Wonder Auto Technology (Nasdaq: WATG)

Wonder Auto Technology is a beneficiary of a high market share in alternator and starter production in China, along with strategic positioning in the faster growing sub-segments in these markets. However, weak product pricing, high customer concentration, and an unusually low tax rate force us to rate the stock a Hold with a target of $9.50.

Wonder Auto, located in Liaoning, China, designs, develops, manufactures and sells automotive alternators, starters and suspension products through its Chinese subsidiaries. Wonder was founded in 1996 and has grown from sales of $15 million in 2001 to become China's second-largest manufacturer of alternators and starters, with a market share of 13%.

Cyclacel Pharmaceuticals, Inc. (Nasdaq: CYCC)

Cyclacel is a clinical-stage company dedicated to the discovery, development and commercialization of small molecule cell cycle inhibitors for the treatment of cancers and other serious disorders. The company's lead pipeline candidate, CYC202, is being developed for the treatment of non-small cell lung cancer.

The recent acquisition of Align has bolstered the company's oncology/hematology programs and provided it with a revenue stream. However, CYC202, as well as other pipeline candidates, are still in early to mid-stage clinical development process and several years away from commercialization. As such, we maintain a Hold rating on the stock with a price target of $3.00.

Nordstrom (NYSE: JWN)

Nordstrom reported first quarter earnings per share of $0.54, which matched our estimate, but was $0.05 ahead of consensus estimates. The upside was due to better-than-expected expense controls and share repurchases. Even so, the company issued guidance that was below its previous outlook. Nordstrom now expects second quarter EPS of $0.65-$0.70 vs. our prior estimate of $0.72 and full-year EPS of $2.65-$2.80 vs. its previous guidance of $2.75-$2.90.

We are lowering our 2008 and 2009 EPS estimates accordingly. While we think JWN is one of the better ways to invest in retail, its stock is likely to be range bound for the next few quarters. As a result, we maintain our Hold rating and $39 target price, which is 14x our fiscal year 2008 EPS estimate.

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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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