Renewable Energy Stock Heads IIR Group's List of Top Global Picks for May 2008


IIR Group plc (LSE: IIR.L) has recommended the top five buys across the top 400 global stocks for the month of May, headed by LDK Solar in the renewable energy sector, with a potential upside of 135% over the next 6-24 months.


[PressFlow.co.uk, Apr 29 2008] IIR Group plc (LSE: IIR.L), the UK's leading source of impartial research and strategy for global equities and currencies, has recommended the top five buys across the top 400 global stocks for the month of May, headed by LDK Solar in the renewable energy sector, with a potential upside of 135% over the next 6-24 months.

Research published by IIR Group on the Research Oracle, an online tool available to institutional and retail investors which provides institutional-grade research analysis on 400 global stocks completely free of charge, has highlighted LDK Solar Co Ltd, the Solar Technology manufacturer as the premier market buy for May 2008. Recent falls in the global market have led to many stocks being undervalued, with a number of stocks subsequently recommended as strong buying opportunities.

Vinh Cam, Chief Operating Officer for IIR Group said: "LDK Solar registered strong revenue growth in FY 2007 driven by strong demand for solar wafers. IIR research indicates LDK Solar will continue to register solid growth in revenues as a result of increased demand for renewable energy worldwide and a planned increase in production capacity".

In addition to LDK Solar, other stocks making up the top five buys for May 2008 include Speadtrum Communications Inc, the semiconductor firm, Ultrapar Participacoes (Oil & Gas), Companhia de Bebidas das Americas, the brewery and Companhia Energetica de Minas Gerais (Power & Utilities).

Information available via Research Oracle is published simultaneously on Reuters, Bloomberg, Thomson, Capital IQ, Factset, Jaywalk and our other distribution channels. Users can set up alerts to know when an update is published on a company of interest to them.

A full schedule of companies covered by the Research Oracle is available here: http://www.iirgroup.com/products/GER/researchuniverse/. The research can also be embedded as a widget on third party websites by downloading and embedding a link from : www.iirgroup.com/index.php/researchoracle/link

Appendix

All recommendations are over a 6-24 month investment horizon

LDK Solar (NYSE: LDK)
The company has established a number of contracts to supply solar wafers and the company's total contracted supply volume accounts for a majority of its planned production for FY 2008 and FY 2009. The company expects margins to remain under pressure in the near term, however with its new polysilicon plant scheduled to commence production from FY 2009, LDK Solar is expected to witness significant expansion in margins as this will enable the company to secure its polysilicon supplies and achieve economies of scale resulting from downward vertical integration. As a result, IIR expects the company to display strong fundamentals going forward and maintain a positive outlook for the LDK Solar NYSE stock. LDK Solar is rated a Strong Buy with a target price of USD74.11.

Spreadtrum Communications, Inc. (NYSE: SPRD)
Although the company is expected to experience a seasonal slowdown in 1Q 08, IIR Group anticipates healthy growth in revenue for Spreadtrum for FY 2008 and FY 2009 as its 2G and 2.5G products continue to perform strongly and further growth is fuelled by increasing demand for 3G baseband shipments and the launch of new products such as chips for Mobile TV. The company has successfully reduced the contribution of Turnkey Solutions to total revenues as this segment generates lower margins for the company. In FY 2007, this segment experienced a y-o-y decline of 64.7%, contributing 12.6% of total revenues. Going forward, Spreadtrum expects revenues from Quorum to offset the decline in revenues from the Turnkey Solutions segment. Moreover, IIR Group expects the acquisition of Quorum to enhance Spreadtrum's competitive edge as a result of the anticipated expansion of the market and widening customer base. IIR Group expects Spreadtrum to experience high growth in the coming years proving this stock with high-upside potential. Spreadtrum is rated a Strong Buy with a target price of USD15.18.

Ultrapar Participacoes S.A. (NYSE:UGP)
Ultrapar's revenues grew sharply on a y-o-y basis in 4Q 07 as a result of the acquisition of Ipiranga in April 2007. IIR Group is encouraged by the company's efforts to increase its chemical production capacity (especially ethylene oxide) and strengthening of its retail fuel distribution network. In addition, increased free float on the IBOV Index will improve the company's daily trading volumes. Ultrapar's inclusion in the Bovespa and MSCI index are further positives, improving access to global financial markets and making it easier for the company to raise capital at cheaper rates from the international market. Although the appreciation of the Brazilian real against the US dollar is expected to partially limit top-line growth for Ultrapar in the medium term, IIR Group's positive outlook for crude oil prices over the investment horizon indicates healthy growth in the company's top and bottom-line, going forward. Furthermore, the anticipated appreciation of the Brazilian real against the US dollar is expected to provide an additional 40% upside on the NYSE stock for US investors. Ultrapar is rated Strong Buy with target price of USD65.93.

Companhia de Bebidas das Americas (NYSE:ABV)
AmBev experienced strong revenue growth in 4Q 07 driven by strong volume growth from its major segments. The company has been successful in promoting its beer products in the Latin American region, particularly in Brazil, which experienced a 70 bps q-o-q increase in its market share to 68.4% in 4Q 07. Going forward, we anticipate an increase in revenues, supported by the growing youth population and a stable economic environment. Coupled with our expectations of the company's ability to continue its effective cost management strategies, we maintain a positive outlook for the AmBev stock. Further upside potential on the NYSE stock will be enhanced by the appreciation of the Brazilian real against the US dollar. AmBev is rated a Stong Buy with a target price of USD128.46.

Companhia Energetica De Minas Gerais - CEMIG (NYSE:CIG)
Companhia Energetica de Minas Gerais - CEMIG (CEMIG) reported strong top-line growth and operating margin improvement in FY 2007, broadly in line with IIR Group estimates. However, adjusted net income was below expectation due to higher than anticipated financial expenses coupled with employee and manager profit share during FY 2007. Revenue growth was supported by strong growth in sales to end customers and supply to wholesalers. Going forward, strong economic growth in Brazil due to increased industrial and commercial activities in its region of operation is expected to lead to higher levels of electricity consumption. In light of this, IIR Group expect CEMIG will continue to witness healthy top-line growth. Although cautious of rising fuel prices in FY 2008 and FY 2009, which are likely to impact margins in the medium term, from FY 2010 IIR Group expect a decline in fuel prices which will assist margin expansion. Furthermore, the company is focused on reducing its personnel and administration costs which will assist margin expansion in the long term, which supports a positive outlook for CEMIG. Furthermore, the anticipated strengthening of the Brazilian real against the US dollar is expected to have a significant upside impact on the value of the CEMIG NYSE stock for US investors. CEMIG is rated a Strong Buy with a target price of USD34.34.



About IIR Group
IIR Group plc was established in 1996 and is the UK's leading source of impartial research and strategy for global equities and currencies for broker-dealers, investment banks and asset managers. The company is headquartered in London and traded on AIM (LSE: IIR.L). The Group has no research conflicts - as it does not offer brokerage, investment banking or asset management services. IIR's research activities are regulated and authorised by the FSA and registered as an investment advisor with the SEC.

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