Zacks Analyst Blog Highlights: Lan Airlines S.A., Sierra Wireless Inc., Grey Wolf, Inc., Precision Drilling Trust and Arena Pharmaceuticals, Inc.

CHICAGO--(BUSINESS WIRE)--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: Lan Airlines S.A. (NYSE: LFL), Sierra Wireless Inc. (Nasdaq: SWIR), Grey Wolf, Inc. (NYSE: GW), Precision Drilling Trust (NYSE: PDS) and Arena Pharmaceuticals, Inc. (Nasdaq: ARNA).

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 Friday’s Analyst Blog:

Lan Airlines Not Exactly Taking Off

We currently have a Hold recommendation on Lan Airlines S.A. (NYSE: LFL), with a target price of $10 per share. Lan Airlines is the main provider of domestic and international passenger and cargo air services in Chile and one of the leading airlines in Latin America.

The company’s operating results for the third quarter of 2008 were positive. In the third quarter, total operating revenue was US$1,204.6 million, a 37.7% increase over the same period of 2007, representing a 36.1% year-over-year increase in passenger revenues and a 51.4% year-over-year rise in cargo revenues. Passenger and cargo revenues accounted for 63% and 34% of total revenues, respectively, while other revenues were responsible for the balance.

Sierra Wireless Misses Estimates

Sierra Wireless Inc. (Nasdaq: SWIR), a leading developer of OEM wireless modem cards and access solutions, declared third quarter 2008 financial results below our estimates.

The company continues to be challenged with intensifying competition in the PC OEM market, coupled with unfavorable economic conditions. We remain concerned that a severe global economic downturn may reduce demand for wireless data cards and USB modems moving forward.

Grey Wolf a Buy on Merger

Grey Wolf (NYSE: GW) reported solid third quarter results on the back of still-strong dayrates and the highest number of average rig count in its history. The company averaged 112 operational rigs during the quarter, up from 105 rigs in the previous quarter.

Importantly, the pending merger with Precision Drilling Trust (NYSE: PDS) remains on track. The combined entity, to be called Precision Drilling, will be a North American land drilling powerhouse with 371 rigs.

Arena: No Near-Term Relief

Arena Pharmaceuticals (Nasdaq: ARNA) reported financial results for the third quarter 2008. Although results were largely in-line with expectations, investors are starting to take notice of Arena’s cash position. Despite the $212.1 million still on the books at the end of September 2008, management has reduced its year-end cash balance guidance from $160 million to $115 million due to the planned redemption of $55.8 million in Series B1 and B2 convertible preferred stock in November 2008.

This is an unfortunate use of funds, in our view, because it puts Arena’s cash position in danger of running out late in 2009 unless the company either signs a development partner for pipeline candidates lorcaserin or APD-125, or undertakes a significant dilutive offering. Management does have some additional cash-generating opportunities with its early-stage pipeline and research capabilities, but nothing that would be meaningful enough to put off raising funds to support lorcaserin in 2010.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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=2677

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.

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.