- 10 -
report also noted slightly increased sales for the first 9 months
of Applied Power's 1993 fiscal year and higher pretax income.
On November 19, 1993, Baird issued another research note on
Applied Power (the Baird November report), captioned "Story
Improving, But Earnings Aren't". This report gave a rating of
"Hold-3, higher risk" (again, a recommendation to hold the stock)
for the Applied Power stock.2 The Baird November report stated
"Positive Developments Are Emerging" and cited six points as "good
news" to support a belief that "Applied Power will see its day."
On January 4, 1994, Baird issued yet another research note
(the Baird January report) for Applied Power, raising Applied
Power's stock's rating to a "Buy-2" rating.
2 The research note stated in pertinent part:
current business trends are still weak, not
yet suggesting annual top-line growth of even
2-3%. Given that the first quarter will most
likely fall short of consensus estimates of
$0.25-$0.26 and the lack of visibility as to
any meaningful recovery, we are reducing our
fiscal year 1994 earnings estimate to $1.15
and maintaining our Hold-3 rating.
* * * * * * *
Quite simply, Applied Power will not recover
until Europe and Japan improve, and Aerospace
markets at least stabilize. Applied Power is
hoping for stability in Europe and Japan by
the end of this year, but sees substantial
recovery postponed until the 1995-96 period.
Thus, Applied Power, while not extremely
expensive, is not a compelling value. While
the time to buy Applied Power will occur
before these recoveries actually begin, it
remains too early.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011