Hawaiian Electric rated 'buy' with $41 target

Hawaiian Electric Industries Inc., which said in October it has discontinued its international operations, has been rated a "buy" in new coverage by analyst David Schanzer of Janney Montgomery Scott LLC.

Schanzer, who has a 12-month price target of $41, is one of only two analysts listed by Bloomberg News as having a "buy" rating on the stock. Ronald Tanner of Legg Mason Wood Walker also rates it a "buy."

Of the other analysts, three have the stock rated "market perform," with the others rating the stock "hold," "near-term neutral" and "sell."

"Hawaiian Electric offers one of the most generous common-stock dividends of any of its peers with a recent yield of 6.5 percent (6.4 percent after yesterday's close), reflecting its decision to maintain a utility profile," wrote Schanzer.

"Recent stock price performance has been relatively steady given the disappointing state of the Hawaiian economy, which remains subject to the vagaries of tourism and the U.S. military presence. But total-return investors should regard the utility as having the potential to provide annual returns in the neighborhood of 12.5 percent to 13 percent and probably without the level of risk associated with comparable stateside utility/energy companies."

Hawaiian Electric's shares were down 32 cents to $38.58 at midday today. The stock is ahead 3.6 percent for the year with a total return of 17.9percent over the past 52 weeks.

Federal program to aid ailing local farmers

A joint program of the U.S. departments of Defense and Agriculture has approved $1 million to help local farmers reduce their heavy inventories.

Disrupted shipping and order reductions related to Sept. 11 have cost the industry $2 million, according to a statement from the BioSystems Technology program.

The program will share freight-forwarding and packaging costs up to $30,000 per participant.

The money will be provided through the Hawaii Farm Bureau Federation and the Hawaii Food Manufacturers Association.

Manoa firm signs deal with Chinese company

Manoa software firm Dimensia Inc. has signed a software development agreement with a high-tech incubator and a software firm in China as part of a state trade mission.

Under the three-way deal, Chinese engineers will develop custom software at competitive costs for customers of Dimensia, a start-up firm located in the state Manoa Innovation Center. The partnership has already signed its first contract to provide software for Dimensia customer FNX Ltd.

Nokia says earnings may exceed forecasts

Espoo, Finland >> Nokia Oyj, the top cellular-phone maker, said it may exceed its fourth-quarter earnings target as it cuts costs and gains market share. Earnings per share will be "at the upper end or even above" the 18 cent to 20 cent range (16 cents to 18 cents U.S.) given in October, said Chief Financial Officer Olli-Pekka Kallasvuo on a conference call. Sales are expected to rise 20 percent from the third quarter, he said.

Nokia, led by Chief Executive Jorma Ollila, has this year reduced its work force by 4,144, or 7 percent, by farming out production and cutting jobs. It also introduced three new phones last month to stay ahead of Ericsson AB, Siemens AG and Motorola Inc. Nokia is the only profitable cellular-phone company.

Jones Apparel to join S&P 500 stock index

New York >> Jones Apparel Group Inc., a maker of women's career clothing and one of Warren Buffett's recent holdings, is replacing Homestake Mining Co. in the Standard & Poor's 500 Index at the close of trading Friday, S&P said.