Wunderlich's AM Call Summary

Wunderlich Securities has published an AM call summary on three sectors: Diversified Industrials, Energy, and New Energy Economy, for which it reports: Diversified Industrials: Republic Services, Inc., RSG has its Buy rating and $37 price target reiterated, with 2Q results better than expectations with an increased dividend, and raised guidance, all of which is expected to begin the share buyback. Margins continue to expand, even if the absolute price is low, and the real spread remains 100bps better than costs. ($29.66) Energy: Abraxas Petroleum Corporation AXAS reported a 2Q below estimates, as production did not see the ramp up as much as was expected. An uneventful quarter was observed as Abraxas prepares to introduce its Bakken/Three Forks well and new operations in Canada. These two areas should initiate fair production growth and cash flow. Buy rating and $4 price target maintained. ($2.52) New Energy Economy Cree, Inc. CREE Wunderlich reports that according to energy experts, installation of solid-state light emitting diodes (LED)-based lighting in place of traditional lighting is the single best and fastest payoff of any alternative energy investment. The product is non-toxic and will last decades in many instances. Cree is an industry leader, despite the recent decline in shares. Buy rating reiterates and $85 price target. ($58.31)