Hot Stocks: Chemtura Corporation (NYSE:CHMT), Oneok Partners LP (NYSE:OKS)

Lakeway, NY -- (SBWIRE) -- 02/26/2013 -- ThePennyStockProfiler.com, an investment community with a special focus on updating investors with recent news on the U.S. stock market, issues news alert on the following stocks:-

Shares of Chemtura Corporation (NYSE:CHMT) fell by $2.39 or 10.88% to $19.57 in the afternoon session following a downgrade in its crating by Oppenheimer from Outperform to Perform and removal of price target o $24 per share.

Is CHMT a Buying Opportunity After The Recent Slump? Let’s Find out Here

Oppenheimer noted, "CHMT continues to take significant strides structurally upgrading its business, the reason for our original Outperform, but things have changed to warrant a downgrade to Perform: 1) 2012 EPS growth of 29% was despite volume down 1%, and 4Q12 results showed that the company may be approaching the limits to further margin improvement without a healthier economy, thus we pare back estimates for 2013; 2) stock comp expense was previously understated, and 4Q saw a large $6M catch-up; 3) legacy overhead costs from the antioxidants sale will hamper margin; 4) mix deteriorated in petroleum additives; 5) 2013 capex needs are higher than expected; and 6) the stock was up 87% last year (vs. 13% for the S&P 500) and 3% YTD (vs. 4%)."

Credit Suisse downgraded Oneok Partners LP (NYSE:OKS) to Neutral from Outperform lowering its price target by 13% to $58 per share.

How Should Investors Trade OKS Now? Find out Here

Credit Suisse commented “OKS posted Q4:12 results slightly ahead of our estimates [but] that is not the story. EBITDA was $314mm slightly besting our $296mm estimate as was the $0.72/unit DCF result, slightly ahead of our $0.70/unit. DCF/unit was roughly in line with the Street while a good bit above consensus on EBITDA. Stronger volumes in the Natural Gas Liquids Segment led the beat offset by a miss in the Natural Gas Gathering and Processing segment which was hurt by the weak commodity price environment, especially for ethane. The Natural Gas Pipelines segment was in line.”

Going forward, we have cut our distribution growth forecast, to 9% from the prior 10-12% range over the next three years. “We have cut our 2013E DCF and EBITDA estimates owing to much lower assumptions on Belvieu-Conway spreads (we were at $0.19/gallon the OKS prior guidance and are coming down to midsingle digits, consistent with the revised $0.05/gallon guidance and consistent with the collapse in the spread in futures prices). Given ethane rejection we are also assuming lower volumes which comes through in the out years in 2014 and 2015. For 2014 and beyond we are assuming a Belvieu-Conway NGL spread at approximately the cost to build or $0.09/gallon, causing us to slightly trim in 2014 and beyond.”

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