The Zacks Analyst Blog Highlights: Tesla Motors, Honda Motor, Fuji Heavy Industries, Ford Motor and Zions Bancorp.
by PR Newswire
CHICAGO , Dec. 18, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Tesla Motors, Inc. (Nasdaq: TSLA - Free Report ), Honda Motor Co., Ltd. (NYSE: HMC - Free Report ), Fuji Heavy Industries Ltd . (OTC: FUJHY - Free Report ), Ford Motor Co. (NYSE: F - Free Report ) and Zions Bancorp. (Nasdaq: ZION - Free Report ). (Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO ) Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free . Here are highlights from Tuesday's Analyst Blog: Tesla Unveils Chinese Website Tesla Motors, Inc. (Nasdaq: TSLA - Free Report ) has set its sights on capturing the world's largest automobile market: China . About a month after opening it first showroom in the nation, the electric car maker has launched its Chinese website, Tousule.cn. Chinese consumers can book the Tesla Model S through the site by paying a reservation fee of RMB 250,000 ($41,000) . Deliveries of the car in China are expected to begin in the first quarter of 2014. Tesla is also offering reservations of Model X in China through the new website. Deliveries of the car are projected to start in the U.S. from 2014. Tesla started reservations of Model S in China in Aug 2013 . Last month, the company opened its first Chinese showroom at the exclusive Parkview Green mall in Beijing . The company also has a page on the Chinese microblogging platform Sina Weibo. According to the China Daily, Tesla Model S will be priced in the range of $146 ,000–$200,000 in China , compared with $71 ,000–$120,000 in the U.S. and $98 ,000–$162,000 in Europe . This significant difference in pricing is the result of high taxes imposed on imported goods in China . However, Tesla plans to offer various incentives to Chinese consumers to counter the steep pricing. The efficient safety features and environment friendly nature of Tesla's cars are expected to attract consumers in China . Some of the largest cities in the nation, such as Shanghai and Beijing , are very polluted and the Chinese government is trying to reduce sales of vehicles that emit greenhouses gases. Moreover, the country witnesses huge demand for luxury vehicles, which is expected to benefit Tesla. However, the Chinese government is providing support to Chinese manufacturers like BYD and Kandi to build electric cars, which will provide competition to Tesla. Moreover, the nation does not have adequate charging infrastructure, which will affect the sale of electric cars. Nevertheless, Tesla expects to sell about 5,000 cars per annum in Asia . Apart from China , the automaker recently opened the booking for Model S and Model X in Japan . However, sales in the continent can be much higher if the cars become popular in China . Tesla estimates delivery of a little less than 6,000 Model S vehicles in the fourth quarter of 2013 and 21,500 vehicles globally in 2013. The automaker expects Model S sales to cross 40,000 by 2014, assuming the demand in Asia and Europe meet expectations. Tesla currently has a Zacks Rank #4 (Sell). Better-ranked automobile stocks include Honda Motor Co., Ltd. (NYSE: HMC - Free Report ), Fuji Heavy Industries Ltd . (OTC: FUJHY - Free Report ) and Ford Motor Co. (NYSE: F - Free Report ). All these stocks carry a Zacks Rank #2 (Buy). Volcker Rule Weighs on Zions Zions Bancorp. (Nasdaq: ZION - Free Report ), which is one of the premier financial services companies in the U.S., is recently faced with the pressure of the revised Volcker Rule released last week. As per the rule, most of Zions' bank and insurance trust preferred collateralized debt obligation (CDO) securities and other asset-backed CDO securities come under the category of restricted investment and thus cannot be held until they mature. Zions has to divest these disallowed investments by Jul 21, 2013 . The deadline would be extended to Jul 21, 2017 if the bank fails to meet it. Though Zions does not plan any immediate material divesture, it intends to convert the CDOs from "Held to Maturity" into "Available for Sale" during the fourth quarter 2013. This will entail a one-time after tax cost of $387 million . Zions has a significant portfolio of CDO securities. In the recent past, with the overall improvement in the market, the trading prices of these securities were increasing and going forward could have driven the company's growth. The recent development, therefore, is a setback for Zions, wherein it has to bear one-time non-cash charges as well as damages to its capital ratios. Notably, Zions' common equity Tier 1 ratio under Basel I rules will decline by 73 bps from the reported figure as of Sep 30, 2013 . Tangible common equity ratio will fall 6 bps to 7.84%. The intraday price movement reflected depreciation in the stock price after the news release. However, the company's shares later gathered momentum and closed at $28.56 . This marked slight improvement from prior day closing figure of $28.47 . The initial market reaction was mixed and indicates nothing conclusive. However, we may expect the Zions' share price to tread downwards as the Volcker Rule will likely drag its fourth-quarter earnings. Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free . 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 . About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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 . Get the full Report on TSLA - FREE Get the full Report on HMC - FREE Get the full Report on FUJHY - FREE Get the full Report on F - FREE Get the full Report on ZION - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 firstname.lastname@example.org http://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release. SOURCE Zacks Investment Research, Inc.