Markets & Finance

Still Buy Williams Cos. after Upbeat Earnings Forecast

Williams Cos. (WMB): Reiterate 5 STARS (buy)

Analyst: Ephraim Juskowicz

WMB says '01 EPS will meet or exceed consensus for consolidated, energy-only results... Trading division benefiting from arbitrage opportunities associated with having large asset base... Processing and storage benefiting from increased exploration activity amid high commodity prices.. Upping slightly our energy-only '01 EPS est. from $1.72 to $1.75... Stripping out market value of Communications segment, to be spun off by mid-'01, energy trading PE/growth just 1.1X vs. peer average 1.8X... Using conservative 1.3X, stock worth $44.50.

General Electric (GE): Reiterate 3 STARS (hold)

Analyst: Robert Friedman

Stock still no bargain despite 3-month, 25% price drop... Continue to have serious questions about EPS quality... Besides 10%+ of EPS from $25 bil. overfunded pension plan, think GE's decision to take $4 bil. pretax Honeywell charge in '01 will further cloud true GE operating income power... Also, expect $1 bil. pretax gain from sale of PaineWebber stock to offset almost $1 bil. of pretax charges from GE Capital's ownership of bankrupt Montgomery Ward... GE/HON merger pact boosts GE's risk profile... Cash flow models indicate GE at low end of fair value range.

Race, Class, and the Future of Ferguson

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus