- 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