Technical Trade Alerts on Recent Analyst Upgrade Notables: CHS, PCS, DIS, CQB, AVAV, IIIN for Nov. 19

Chico's FAS Inc. (CHS) Trade Alert – UBS Upgrades CHS on Limited Downside, Raises Price Target to $2.80

Chico's FAS Inc. (CHS) shares fell 2.63% to $1.85 Wednesday mid-morning. Chico's FAS, together with its subsidiaries, operates as a specialty retailer of casual-to-dressy clothing, intimates, complementary accessories and other non-clothing gift items.

UBS recently upgraded Chico's FAS from Sell to Neutral, and raised the 12-month price target to $2.80 from $2.10. This new rating expects the stock to perform in line with the average total return of stocks in analyst's or analyst's team's coverage universe over the next six to 12 months.

UBS analyst Roxanne Meyer said she remains cautious on the "boomer" niche and said Chico's FAS' core demographic of women will likely be the segment to cut spending the most in the next year. Further, she said "the stock reflects continued deteriorating fundamentals, and is now trading at just a small premium to cash."

However, she wrote, "While we do not see fundamental catalysts near term, we see limited downside."

Chico's FAS also recently reported its net sales for the four-week period ended November 1, 2008, decreased 2.2% to $118.5 million from $121.2 million reported for the four-week period ended November 3, 2007. The company's comparable store sales also decreased 13.4% for the four-week period ended November 1, 2008, compared to the same four-week period last year ended November 3, 2007.

The company's net sales for the 13-week period ended November 1, 2008, decreased 5.2% to $394.2 million from $415.9 million reported for the 13-week period ended November 3, 2007. Comparable store sales decreased 13.4% for the 13-week period ended November 1, 2008 compared to the same 13-week period last year ended November 3, 2007.

The company also announced it is scheduled to release its third quarter and year-to-date fiscal 2008 earnings results before the opening of the market November 25, 2008. A conference call to discuss results will be held at the same day. The call will be hosted by Scott A. Edmonds, chairman, president and CEO.

Chico's FAS offers its products under Chico's, White House|Black Market (WH|BM) and Soma Intimates brand names. The Chico's brand includes clothing focused on women, who are 35 years old and over. Its products include clothing made from natural fabrics and fabric blends, including cotton, linen and silk; sophisticated synthetics; and synthetic blends. The Chico's brand products also include accessories, such as handbags, belts and jewelry, including earrings, watches, necklaces and bracelets.

The WH|BM brand focuses on women, who are 25 years old and over. Its products comprise clothing made from various natural and synthetic fabrics, such as cotton, rayon, silk, polyester, microfibers, and matte jersey white and black and related shades; and accessories, such as handbags, shoes, belts and jewelry, including earrings, necklaces and bracelets.

The Soma Intimates brand offers private branded intimate apparel, including bras, panties and shape wear, active wear, sleepwear, robes and loungewear.

As of March 17, 2008, the company operated 1,045 retail stores in 49 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico under Chico's, The WH|BM and Soma Intimates names.

Chico's FAS also had 37 Chico's outlet locations, 19 WH|BM outlet locations and one Soma outlet location that provide clearance activities for each of the brands. In addition, it sells its products through catalogs and Internet.

In today's daily chart, CHS's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

MetroPCS Communications Inc. (PCS) Trade Alert – PCS Receives Analyst Upgrade, Introduces MetroPCS Unlimited NationwideSM

MetroPCS Communications Inc. (PCS) shares fell 2.08% Wednesday mid-morning, trading at $11.75. MetroPCS, a wireless telecommunications carrier, offers wireless broadband personal communication services in the metropolitan areas of San Francisco, Miami, Los Angeles, Atlanta, Sacramento, Tampa/Sarasota/Orlando, Dallas/Ft. Worth and Detroit.

RBC Capital recently upgraded MetroPCS from Sector Perform to Outperform. This new rating expects the stock to materially outperform the sector average over 12 months.

The analyst firm predicts the cell phone company will be in a better position to take advantage of bargain-hunting customers in a worsening economy.

RBC Capital Markets analyst Jonathan Atkin upgraded the stock to Outperform from Sector Perform, writing in a note to investors that MetroPCS may "withstand or even benefit from a weakening economy" as consumers "increasingly look for more affordable options."

MetroPCS recently introduced its expanded network, the MetroPCS Unlimited NationwideSM with coverage available in more than 300 cities in the contiguous United States. This new network is included at no additional charge in MetroPCS’ current $45 and $50 service plans and can be added for $5 per month on other qualified service plans.

With more than 5 million subscribers nationwide, the expanded coverage offering underscores MetroPCS’ commitment to providing personalized, affordable, unlimited, flat-rate wireless service with no signed contract, to its customers. MetroPCS customers now have the freedom to use their wireless service for an unlimited basis in more than 300 cities in the contiguous United States for one flat rate.

As stated by Roger Linquist, chairman, president and CEO of MetroPCS, "This offering is a major benefit and value to consumers. It takes our existing predictable, affordable wireless service platform and extends it to our customers nationwide. Our customers can now seamlessly use their MetroPCS wireless service while they travel throughout the expanded service area."

The company recently recorded a net income of $45 million, or 13 cents per share, down from $53 million, or 15 cents per share, during the same period last year. It also reported revenue of $687 million, a 25% increase from $557 million in the year-ago period.

The company said it has added 1.2 million subscribers during the last four quarters and 249,000 new subscribers in the most recent third quarter.

It also announced Braxton Carter, executive vice president and CFO of MetroPCS, will speak November 21 at the Bank of America 2008 Credit Conference in Orlando.

MetroPCS offers unlimited long distance calling, unlimited voicemail, caller ID, call waiting, directory assistance, text messaging, mobile Internet browsing, push e-mail, mobile instant messaging, and picture and multimedia messaging.

The company also provides international long distance and text messaging, ring tones, ring back tones, downloads, games and content applications, and unlimited directory assistance, as well as nationwide roaming.

In addition, it sells various mobile handsets for use on its network, including models that provide color screens, camera phones and other features facilitating digital data.

The company sells its products and services to customers indirectly through independent retail outlets under the MetroPCS brand, as well as directly through the company-operated retail stores. As of December 31, 2007, it operated approximately 100 retail stores.

In today's daily chart, PCS' Bollinger Bands indicate above normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

Walt Disney Company (DIS) Trade Alert – DIS Obtains Analyst Upgrade, Teams Up with JCB Co. to Issue Disney-JCB Card

Walt Disney Company (DIS) shares dropped 1.60% Wednesday mid-morning, trading at $20.35. Walt Disney operates as a diversified entertainment company worldwide.

Pali Research recently upgraded Walt Disney from Neutral to Buy, with price target of $25. This new rating expects the stock to outperform its peer group over the next 12 months due to superior fundamentals, low valuation and/or positive catalysts.

As stated by Pali analysts, "Investors Expecting Consensus to Come Down Now – A LOT. Disney had substantially exceeded expectations over the past several years ending with third quarter fiscal year (June) 2008, when Disney only modestly exceeded street expectations and followed that with a significant miss in the fourth quarter of fiscal year 2008. In turn, we believe investors are heavily discounting a substantial earnings miss from Disney in fiscal 2009, especially within its Theme Park division – our revised estimates assume Theme Parks OI declines 35% year-over-year. If Theme Parks collapse as investors fear, Disney will head into 2010 as an even more focused Cable Network/Content Company. 2010 Theme Park view feels overly pessimistic. We simply do not believe that consumers will abandon vacations to Walt Disney World long-term."

Walt Disney and JCB Co. Ltd., a pioneer of Japan's credit card business and brand holder of Japan's only international credit card brand, have recently teamed up to develop and issue Japan's first Disney-branded credit card, the Disney-JCB Card.

The Disney-JCB Card offers a generous package of attractive, exclusive cardmember benefits to help make cardmembers dreams come true through membership in the Disney Card Club. Membership entitles cardmembers to a number of special offers at Tokyo Disney Resort courtesy of Urayasu, Chiba-based Oriental Land Co. Ltd.

Walt Disney Parks and Resorts and Verizon are also teaming up for a multi-year relationship designed to enhance the guest experience – before, during and after guests arrive at Walt Disney World Resort and Disneyland Resort. This alignment allows guests to have a personal tour guide right in their wireless phones along with reliable new services at the parks.

Walt Disney's Media Networks segment comprises a domestic broadcast television network, television production and distribution operations, domestic television stations, cable/satellite networks, domestic broadcast radio networks and stations, and the Internet and mobile operations. It operates the ABC Television Network and 10 owned television stations, the ESPN Radio and Radio Disney networks, and 46 owned radio stations. This segment also produces, licenses and distributes cable and animated television programming; and operates ABC-, ESPN-, ABC Family-, SOAPnet- and Disney-branded Internet Web site businesses, as well as Club Penguin, an online virtual world for kids.

The company's Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation ownership units; a retail, dining and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; and water parks. This segment also owns and operates Disneyland Resort in California, Disney Vacation Club, Disney Cruise Line and ESPN Zone facilities; manages Disneyland Resort Paris and Hong Kong Disneyland Resort; licenses the operations of the Tokyo Disney Resort in Japan; and designs and develops new theme park concepts, attractions and resort properties.

The company's Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video programming, musical recordings and live stage plays.

The company's Consumer Products segment licenses Disney characters, and visual and literary properties to manufacturers, retailers, show promoters and publishers; and publishes books and magazines, computer software and video game products. This segment markets its products through its own and licensed retail stores and through a Web site.

In today's daily chart, DIS' Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

Chiquita Brands International Inc. (CQB) Trade Alert - BB&T Capital Upgrades CQB on Strong Banana Demand

Chiquita Brands International Inc. (CQB) shares slipped 1.72% to $10.87 Wednesday mid-morning. Chiquita Brands and its subsidiaries engage in the distribution and marketing of bananas and fresh produce under the Chiquita and other brand names worldwide.

BB&T Capital Markets recently upgraded Chiquita Brands from Hold to Buy. This new rating expects the stock to outperform its peer group over the next 12 months due to superior fundamentals, low valuation and/or positive catalysts.

BB&T Capital analyst Heather Jones wrote in a note to clients that she upgraded Chiquita to Buy from Hold since the company is well positioned even as economies worldwide slump. She said banana demand has been strong and "remains the best value in the produce aisle."

She said the pressure on the stock is likely from funds selling their stakes, and data on the business is positive. She further said a drop in fuel costs will help the company, and although there will be higher purchased fruit costs next year.

Chiquita Brands recently said its third quarter loss narrowed, beating expectations, on gains from higher prices and strong banana sales. It recorded a net loss of $5.6 million, or 13 cents a share, compared with a loss of $28.2 million, or 61 cents a share, in the year-earlier period. The company also said its revenue rose 7% in the quarter to $840 million, from $785.2 million last year. Banana sales rose 13% to $473.5 million, from $417.5 million a year earlier, and within that segment saw a 33% increase in pricing in North America in the quarter.

The company also announced Jeffrey M. Zalla, its chief financial officer, will present at the 13th Annual Morgan Stanley Global Consumer and Retail Conference today in New York City.

Chiquita Brands operates in three segments: Bananas, Salads and Healthy Snacks and Other Produce. The Banana segment sources, transports, markets and distributes bananas to retailers and wholesalers, and chain stores. It also engages in the cultivation and production of bananas.

The Salads and Healthy Snacks segment offers value-added salads under the Fresh Express and other labels; and fresh vegetable and fruit ingredients used in foodservice, healthy snacks and processed fruit ingredient products. This segment also provides fresh-cut products, such as lettuce, tomatoes, spinach, cabbage, broccoli, cauliflower, onions and peppers to foodservice distributors who resell these products to foodservice operators. It distributes Fresh Express branded products to food retailers, foodservice distributors and operators, and quick-service restaurants; and fresh produce foodservice offerings primarily to third-party distributors for resale primarily to quick-service restaurants in the United States.

The Other Produce segment engages in sourcing, marketing and distributing fresh fruits and vegetables other than bananas primarily in Germany and Austria. It offers grapes, pineapples, melons, stone fruit, apples, kiwi and tomatoes.

In today's daily chart, CQB's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently above the stock's 13-day moving average, a bullish trend is generally indicated.

AeroVironment Inc. (AVAV) Trade Alert – AVAV Receives Analyst Upgrade, Reports Higher Q1 2009 Revenue and Net Income

AeroVironment Inc. (AVAV) shares declined 1.66% Wednesday mid-morning, trading at $30.75. AeroVironment engages in the design, development and production of unmanned aircraft systems and energy technologies for various industries and governmental agencies.

Stanford Group recently upgraded AeroVironment from Hold to Buy. This new rating expects the stock to outperform its peer group over the next 12 months due to superior fundamentals, low valuation and/or positive catalysts.

AeroVironment recently reported financial results for its first quarter ended August 2, 2008. Revenue for the first quarter of fiscal 2009 was $53.6 million, up 9% over first quarter fiscal 2008 revenue of $49.2 million. The increase in revenue was attributable to increased sales in its Unmanned Aircraft Systems (UAS) segment of $4.2 million and Efficient Energy Systems (EES) of $0.2 million.

The company's net income for the first quarter of fiscal 2009 was $4.8 million, up 25% from first quarter fiscal 2008 net income of $3.8 million. Its earnings per diluted share for the first quarter of fiscal 2009 was 22 cents, up 22% over first quarter fiscal 2008 earnings per diluted share of 18 cents.

For fiscal year 2009 the company maintains its guidance of revenue growth of between 20% and 25% over fiscal year 2008, with an operating income margin of between 12% and 14%.

AeroVironment offers small unmanned aircraft systems (UAS) that provide intelligence, surveillance and reconnaissance, including tracking, combat assessment and geographic data to the small tactical unit or individual war fighter.

The small UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors, enabling the operator to view and capture images on a hand-held ground control unit.

It also provides spare equipment, alternative payload modules, batteries, chargers, Internet-enabled customer support, and refurbishment and repair services for small UAS.

In addition, the company offers PosiCharge fast charge systems that recharge industrial vehicle batteries while they remain in the vehicle during scheduled breaks and other times when the vehicle is not in use; electric load and sink systems used to test batteries, electric motors and fuel cell systems; and contract engineering services to internal and external customers.

It sells its products to organizations within the Department of Defense, government customers and commercial customers.

In today's daily chart, AVAV's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

Insteel Industries Inc. (IIIN) Trade Alert – IIIN Obtains Analyst Upgrade, Reports 200% Q4 Profit Increase

Insteel Industries Inc. (IIIN) shares climbed 4.84% Wednesday mid-morning to $8.01. Insteel manufactures steel wire reinforcing products for concrete construction applications in the United States.

Sidoti & Co. upgrades Insteel from Neutral to Buy. This new rating suggests capital appreciation of at least 25% over the next 12 months.

Insteel recently announced financial results for the fourth quarter and fiscal year ended September 27, 2008. Its fiscal fourth-quarter profit more than tripled to $15.7 million, or 89 cents per share, from $5.2 million, or 28 cents per share, in the same quarter last year.

For the year ended September 27, 2008, earnings from continuing operations were $43.7 million, or $2.47 per diluted share compared with $24.3 million, or $1.33 per diluted share in the prior year. Net sales for the year increased 18.8% to $353.9 million from $297.8 million last year. Average selling prices rose 28.7% while shipments decreased 7.7%.

The company's revenue rose 43% to $106.3 million from $74.4 million in the year-ago quarter. The company said a 66.6% increase in average selling prices, driven mainly by dramatically higher raw material costs, more than offset 14.2% decrease in shipments.

Insteel also recently announced its board of directors has authorized the company to repurchase up to $25 million of its outstanding common stock. It also announced its board of directors declared a quarterly cash dividend of 3 cents per share on the company's common stock payable January 6, 2009, to shareholders of record as of December 19, 2008.

Its board of directors has also authorized the company to repurchase up to $25 million of its outstanding common stock. The new authorization is effective immediately and permits repurchases in the open market or in privately negotiated transactions.

Insteel offers prestressed concrete strand (PC strand) and welded wire reinforcement (WWR) products. PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures, which may be either pretensioned or posttensioned, providing reinforcement for bridges, parking decks, buildings and other concrete structures.

WWR is produced as either a standard or a specially engineered reinforcing product for use in nonresidential and residential construction. The company offers a range of WWR products, including concrete pipe reinforcement (CPR), standard welded wire reinforcement (SWWR) and engineered structural mesh (ESM).

CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts and precast manholes for drainage and sewage systems, water treatment facilities and other related applications.

SWWR is a secondary reinforcing product that is produced in standard styles for crack control applications in residential and light nonresidential construction, including driveways, sidewalks and various slab-on-grade applications.

ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures.

Insteel sells its products to the manufacturers of concrete products, distributors and rebar fabricators in the United States, Canada, Mexico, and central and South America.

In today's daily chart, IIIN's MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

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