Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

• American International Group, Inc (AIG)
• Atlas Air Worldwide Holdings, Inc (AAWW)
• The Black & Decker Corp (BDK)
• BlackRock, Inc (BLK)
• Carlisle Companies, Inc (CSL)
• Comtech Telecommunications Corp (CMTL)
• EnerSys (ENS)
• Invacare Corp (IVC)
• Lennox International Inc (LII)
• Macy's, Inc (M)
• Maximus, Inc (MMS)
• Minerals Technologies Inc (MTX)
• MoneyGram International, Inc (MGI)
• Ness Technologies, Inc (NSTC)
• Perrigo Co (PRGO)
• PetroChina Company Ltd (PTR)
• Travelzoo Inc (TZOO)
• Unisys Corp (UIS)
• Warner Chilcott Plc (WCRX)

View the entire Zacks #1 Rank List.
"AIG" Free Stock Analysis: Buy? Sell? Hold?
"AAWW" Free Stock Analysis: Buy? Sell? Hold?
"BDK" Free Stock Analysis: Buy? Sell? Hold?
"BLK" Free Stock Analysis: Buy? Sell? Hold?
"CSL" Free Stock Analysis: Buy? Sell? Hold?
"CMTL" Free Stock Analysis: Buy? Sell? Hold?
"ENS" Free Stock Analysis: Buy? Sell? Hold?
"IVC" Free Stock Analysis: Buy? Sell? Hold?
"LII" Free Stock Analysis: Buy? Sell? Hold?
"M" Free Stock Analysis: Buy? Sell? Hold?
"MMS" Free Stock Analysis: Buy? Sell? Hold?
"MTX" Free Stock Analysis: Buy? Sell? Hold?
"MGI" Free Stock Analysis: Buy? Sell? Hold?
"NSTC" Free Stock Analysis: Buy? Sell? Hold?
"PRGO" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

MoneyGram International Inc. (MGI) reported a fourth-quarter loss per share of 4 cents, worse than the Zacks Consensus Estimate of a loss of 2 cents. Results included a curtailment gain on the company’s benefit plans ($15.5 million) that was partially offset by other one-time costs such as stock-based compensation and severance costs ($7.1 million) and asset [...]

(MGI) MoneyGram’s Earnings Missed Expectations

MoneyGram International Inc. (MGI) reported a fourth-quarter loss per share of 4 cents, worse than the Zacks Consensus Estimate of a loss of 2 cents. Results included a curtailment gain on the company’s benefit plans ($15.5 million) that was partially offset by other one-time costs such as stock-based compensation and severance costs ($7.1 million) and asset ...

MoneyGram International Inc. (MGI) reported a fourth-quarter loss per share of 4 cents, worse than the Zacks Consensus Estimate of a loss of 2 cents.

Results included a curtailment gain on the company's benefit plans ($15.5 million) that was partially offset by other one-time costs such as stock-based compensation and severance costs ($7.1 million) and asset write-downs ($6.1 million). Net income included a $20.3 million tax benefit related to net securities losses in 2007 and 2008.

Including the above-mentioned one-time costs and benefits, net loss for the quarter was $3.6 million or 4 cents per share, compared to net income of $18.6 or 22 cents per share in the fourth quarter of 2008.
 
Total expenses decreased 7.4% to $159.9 million against $172.6 million in the year-ago quarter. Higher money transfer transaction volumes and decreased operating expenses were offset by declining bill payment transaction volumes and continued weakness in Mexico and Spain.

MoneyGram’s total revenue for the quarter was $296.4 million, down 7.1% from $319.0 million in the year-ago period. Fourth quarter 2008 total revenue included net securities losses of $10.2 million compared to $0.7 million in the reported quarter, and investment revenue that was $27.6 million more that in 2009.

Segment Results

In the Global Funds Transfer segment, MoneyGram’s revenue rose by 4.6% to $263.8 million versus $252.2 million in the year-ago period. Money transfer transaction volume excluding bill payment increased 7%, while money transfer fee and other revenue increased 6% to $230.6 million versus $217.0 million in the prior-year period.

On a constant currency basis, money transfer fee and other revenue excluding bill payment increased 3% on a year-over-year basis. Bill payment transaction volume decreased 3% and revenue declined 5% to $33.1 million from $34.7 million in the prior-year quarter.

Results were negatively affected by currency valuation changes and a decline in average money transfer fees during the quarter. Global agent locations reached 190,000, an increase of 8% over the prior-year quarter.

The economic downturn in Spain continues to impact MoneyGram's non-U.S. transaction growth. Excluding Spain, transactions originating outside the U.S. saw healthy growth of 20% from the prior year. Transaction volume to Mexico decreased 13% year-over-year in the reported quarter.

In the Financial Paper Products segment, MoneyGram’s total revenue declined 43.1% to $30.1 million from $52.9 million in the prior-year quarter. Net revenue in the fourth quarter of 2009 and 2008 reflects investment revenue of $5.7 million and $33.4 million, respectively.

For full-year 2009, MoneyGram’s total revenue increased 26.4% to $1.17 billion from $927.1 million in 2008. Total revenue in 2008 included net securities losses of $340.7 million and investment revenue that was $128.9 million more favorable compared with 2009. Net loss, including one-time costs, was $102.1 million or $1.24 per share, down from a net loss of $345.7 million or $4.19 per share in 2008.

As of October 31, 2009, MoneyGram had cash and cash equivalents of $3.8 billion, net receivables of $1.05 billion and investments of $298.6 million.

Liquidity

The company ended the quarter with assets in excess of payment service obligations of $313.3 million and also paid down the remaining $45.0 million balance on its revolving credit facility. On Dec 22, 2009, MoneyGram made an optional repayment of $40 million on its tranche B term loan under the senior secured credit facility, thereby lowering its total outstanding debt by 19.0% to $187 million since Jan, 2009.

Read the full analyst report on "MGI"
Zacks Investment Research

MoneyGram International, Inc. (MGI)

Q4 2009 Earnings Call

February 4, 2010 09:00 am ET

Complete Story »

MoneyGram International, Inc. (MGI)

Q4 2009 Earnings Call

February 4, 2010 09:00 am ET

Complete Story »

Question-and-Answer SessionOperator Thank you, Miss Patsley. Operator Instructions. And our first question comes from Josh Elving with Feltl Investments. Josh Elving - Feltl Investments Just trying to understand the operating expenses a little bit better. I guess they were a little bit higher than what I was expecting...

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Market-trouncing returns could be written in these five stars.

International consulter Mc Kinsey is another mainstream thinking business that takes a seat in the orchestra of doom, fearing years of gloom:

The specter of deleveraging has been haunting the global economy since the credit crunch reached crisis proportions in 2008. The fear: an unwinding of unsustainable debt burdens will drag down growth rates for years to come. So far, reality has been more benign, with economic growth recovering sooner than expected in some countries, even though the financial sector is still cleaning up its balance sheets and consumer demand remains weak.
New research from the McKinsey Global Institute (MGI), though, suggests that the deleveraging process may just be getting under way and is likely to exert a significant drag on GDP growth.1 Our study of debt and leverage2 in ten mature and four emerging economies3 indicates that some sectors of the economies of five countries—Canada, South Korea, Spain, the United Kingdom, and the United States—will very probably experience deleveraging.
What’s more, our analysis of deleveraging episodes since 1930 shows that virtually every major financial crisis after World War II was followed by a prolonged period in which the ratio of total debt to GDP declined significantly. The one exception was Japan, whose bursting asset bubbles in the early 1990s touched off a financial crisis followed by many years... (register to read the rest)

GRAPH: Sovereign debt growth explodes on a worldwide scale. Save money, get out of government vonds as yields will rise in a process of countries competing against each other. (Click to enlarge)

Still betting on a swift recovery? I am taking bets.

40 money-transfer agents currently operating in earthquake-stricken nation

Expanding its presence in China, on Jan 19, MoneyGram International Inc. (MGI) has announced its partnership with Bank of China, to enhance its money transfer service business by extending its service to the bank’s 10,000 domestic branches across the country, over a period of time. Through this alliance, MoneyGram has added yet another strong Fortune [...]

(MGI) MoneyGram International Announces Partnership With The Bank of China

Expanding its presence in China, on Jan 19, MoneyGram International Inc. (MGI) has announced its partnership with Bank of China, to enhance its money transfer service business by extending its service to the bank’s 10,000 domestic branches across the country, over a period of time. Through this alliance, MoneyGram has added yet another strong Fortune ...

Expanding its presence in China, on Jan 19, MoneyGram International Inc. (MGI) has announced its partnership with Bank of China, to enhance its money transfer service business by extending its service to the bank’s 10,000 domestic branches across the country, over a period of time. Through this alliance, MoneyGram has added yet another strong Fortune 500 company to its global network. The partnership was confirmed after MoneyGram passed the six-month trial project that was carried across 240 branches of the bank. 

Money transfer business remains the driving force for MoneyGram and going forward, management projects a strong remittance market in China. Management estimates an annual remittance market of $25 billion in 2010 for China. Through this deal, MoneyGram expects to sow the seeds of further expansion of its money transfer services in several other countries in the Asia Pacific region. Beginning in Jan, 2010, MoneyGram will start operating through the bank’s key territories across the southern and eastern coast of China and will continue to increase its operational size in the next couple of years. 

Hence, the company is in the process of evolving advanced ways for establishing itself across the region. Through its alliance with Bank of China, MoneyGram will be able to support its regional strategy of constant improvement of the money transfer services and expand its presence by more than three-fold in China. 

However, the global financial crisis has dampened the growth structure across the money transfer service industry and MoneyGram did not escape unscathed. The company’s operating earnings have been marred by several one-time charges and fixed overheads. Moreover, a weak demand growth in highly exposed markets such as Mexico and Spain adversely affects the average fees for money transfer services. Even the fiscal and monetary regulations that are expected to come up in China can cause stringency in the foreign company operations. 

Nevertheless, MoneyGram continues to realign its investment portfolio, expand its market exposure globally and restructure its operations from time to time to adapt to the crisis period. Yet the company has several issues to deal with in the near term, such as cost-cutting initiatives, debt-repayment strategy, utilization plans for cash and equivalents and generating sufficient cash flow for its operations. Unless these concerns are addressed, the company may continue to generate loss in its business. Hence, we recommend a Neutral stance on the stock.
Read the full analyst report on "MGI"
Zacks Investment Research