Pfizer Announces Job Cuts
has just announced it will be cutting 700 jobs in France.
The move will affect the company's Paris headquarters. Management believes the cost-cutting move is necessary to offset the rising cost of developing drugs. Stricter regulations are also leading to fewer products making it to the market.
We had removed the shares of Pfizer from our "Recommended" list on Nov. 12, when the stock was trading at $16.77. The company has a 7.73% dividend yield. With a sparse pipeline, we have been cautious about the future for Pfizer shares. The yield is very attractive, but we want to see the company produce a catalyst that can make us comfortable to believe the payout can be sustained. We prefer
at this point.
Pfizer is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Steel Dynamics Takes Profit Guidance Lower
just announced it is cutting EPS guidance for 2008.
The company now expects to report 2008 EPS in the range of $2.35 to $2.40, compared with its previous estimate of about $3.25. The company is simply seeing lower demand for steel and recycled metal.
We had removed shares of Steel Dynamics from our "Recommended" list back on July 18, when the stock was trading at $30.86. The company has a 3.71% dividend yield, based on last night's closing stock price of $10.77. The steelmakers have been rallying since the end of last week, and the stock is actually bouncing off of today's open. We are not optimistic on the sector from a long-term perspective, but short term
is the name we would prefer to focus on. The "January effect" has helped lift shares in the heavily beaten down group.
Steel Dynamics is not recommended at this time, holding a Dividend.com Rating of 2.6 out of 5 stars.
Waters Down 15% Today After Cutting Outlook
announced late Thursday it is cutting its fourth-quarter outlook, citing weaker than expected orders for new instruments due to the deteriorating global economy.
The company, which makes research tools for the life sciences industry, expects fourth quarter EPS in a range of 94 to 99 cents on revenue of $410 million to $420 million. This is below its previous guidance for earnings of $1.08 to $1.12 per share. The current consensus earnings estimate is at $1.09 per share on revenue of $451.2 million.
Shares of Waters have been cut nearly in half from August levels. The company is approaching technical support in the $30 area. If that fails to hold, we may possibly see the stock test the next major support levels in the $18 to $20 price area. We would look elsewhere for better investment opportunities.
Waters does not currently pay a dividend.
Harsco Sticks by 2009 Numbers
is bouncing off of earlier lows as the company shaved 2008 earnings estimates a bit, but reaffirmed 2009 numbers.
The company has exposure to infrastructure, metals, minerals, rail and a broad range of industrial markets. Management said global steel production has been cut by unprecedented rates in the current quarter and that many near-term uncertainties remain due to the ongoing global financial and economic crisis and the adverse effects of the strong U.S. dollar.
On the bright side, management believes headwinds should begin to subside by mid-year 2009, enabling the company to meet RPS targets of $3.20 to $3.30 a share.
We have avoided shares of Harsco since our early June coverage began, when the stock was trading at $61 a share. The company has a 3.31% dividend yield, based on last night's closing stock price of $23.53. There is technical support for the stock in the $18 to $22 price range, but if that fails to hold then we may see the shares revisit the $10 area it last hit in 2000. We would look elsewhere for better investment opportunities.
Harsco is not recommended at this time, holding a Dividend.com Rating of 2.9 out of 5 stars.
Be sure to visit our complete
recommended list of the Best Dividend Stocks
as well as a
detailed explanation of our ratings system
At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.