CHICAGO, March 9, 2011 /PRNewswire/ -- Zacks.com Analyst Blog features: SK Telecom (NYSE: SKM), Apple Inc. (Nasdaq: AAPL), KT Corp. (NYSE: KT), The Macerich Company (NYSE: MAC) and J.C.Penney Company, Inc. (NYSE: JCP).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Tuesday's Analyst Blog:
iPhone Prospects Excite SK Telecom
Starting March 16, South Korean wireless kingpin SK Telecom (NYSE: SKM) will offer Apple Inc.'s (Nasdaq: AAPL) iPhone 4. This will mark an end to the exclusivity enjoyed by its major rival, KT Corp. (NYSE: KT) since late 2009.
This move will allow SK Telecom to make up for lost revenues and profits as the anticipated strong adoption of smartphones will boost its growth in the wireless market. Smartphones are gaining popularity by the day, in turn driving demand for wireless data.
SK Telecom is pursuing various business opportunities in advanced technology given limited growth prospects in the highly matured domestic wireless market. The company continues to invest in new areas of growth such as wireless Wi-Finetworks and data femtocell, 3G network expansion, introduction of 4G Long Term Evolution (LTE) network, smartphone service and mobile software business. These are expected to boost long-term growth for the company.
SK Telecom is expected to increase Wi-Fi zones to 62,000 by deploying 45,000 more Wi-Fi zones by the end of 2011, as well as expand the 1,000 femtocells deployed last year to 10,000 femtocells. The company will offer data modems for the first time in Korea in July 2011 and plans to roll out commercial LTE services in Seoul in the third quarter of 2011. The launch of diverse LTE devices including smartphones and tablet PCs is also underway. These efforts should augur well for wireless revenue growth in the upcoming quarters.
Moreover, telecom carriers in Korea are very enthusiastic about entering the cloud computing market in an attempt to tap the growing demand for software, platform and data storage in service. SK Telecom is set to spearhead this market though its differentiated cloud services as well as customized and specialized solutions.
While the company's aggressive smartphone strategy will open up opportunities in wireless data, associated promotional expenses and heavy handset subsidies may drag its earnings in the near future. Hence, we are currently maintaining our long-term Neutral recommendation on SK Telecom.
Despite being the leader in the domestic wireless market, SK Telecom is facing greater challenges in retaining its market position. We remain cautious on tariff reductions, which are hurting revenues, intense competition and austere regulation by the Korean ministry. Hence, for the short term (1–3 months), Zacks recommends a Sell rating with a Zacks #4 Rank.
Macerich Buys Desert Sky
The Macerich Company (NYSE: MAC), a real estate investment trust recently purchased the remaining 50.0% ownership of the Desert Sky mall in Phoenix from J.C.Penney Company, Inc. (NYSE: JCP).
Macerich bought the remaining half of the Desert Sky mall for $ 27.6 million assuming a portion of the loan on the property. Concurrent with the acquisition, the $51.5 million loan was paid off.
Desert Sky is a shopping center spanning 900,000 square feet featuring a unique merchandise mix, mainly focusing on the Latino community. With the recently announced increased stake in Kierland Commons and this transaction, Macerich is strengthening its position in Arizona considering long-term growth opportunities.
In December 2010, Macerich launched a new concept in the former Mervyns department store at Desert sky converting it into a new Latin market place, which consists of rooms and spaces for more than 200 tenants to expand its efforts and connect with Latin American businesses and consumers. The demand is increasing for such a concept which could groom retailers to rent more space.
With the acquisition of the mall, Macerich continues to innovate itself with a customized merchandising strategy thereby making itself more attractive to the Latin American consumers.
Macerich is one of the largest operators of regional and community shopping centers in the U.S. with assets in high barrier-to-entry markets that have fared relatively well despite a challenging market. Macerich currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5514.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5516
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: |
|
Mark Vickery |
|
Web Content Editor |
|
312-265-9380 |
|
Visit: www.zacks.com |
|
SOURCE Zacks Investment Research, Inc.
Share this article