May 2012
Seeking Alpha "Will Tokyo Take The Gold?"
31/05/12 16:04 Filed in: Seeking Alpha | Japan
Tokyo, Japan, will be competing against Istanbul, Turkey, and Madrid, Spain, to host the 2020 Olympic Games. The winner will be selected by the International Olympic Committee (IOC) on September, 20, 2013. These three short-listed candidates have 15 months to lobby for votes and impress the committee. This is Tokyo's second bid to host the Olympic Games and they are already a favorite. Tokyo has put aside 400 billion yen to ensure funding and would build 20 new venues to accommodate the event. Doha, Qatar, and Baku, Azerbaijan, were recently dropped from the list of applicants. The IOC determined that Baku's infrastructure and experience were not sufficiently developed at this point in the process.
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Seeking Alpha "Buy Low, Buy Brazil"
31/05/12 16:03 Filed in: Seeking Alpha | Brazil
Brazilian stocks took a tumble this past Thursday and equities pushed toward their third consecutive loss. The Ibovespa Index (BVSP) fell 1.8%, bringing it to a loss of 14% this month. It is not at its lowest level since October. In addition, Vale S.A. (NYSE: VALE), Petrobas (NYSE: PBR), and Banco Santander Brasil S.A. (NYSE: BSBR) experienced declines. Vale fell by 1.1%, Petrobas fell by 2.2%, and Banco Santander fell by 7%. This was Banco Santander's first loss in five sessions. In addition to stocks declining, the Real pared losses against the U.S. dollar.
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Motley Fool Blog Network "New Investment Could Secure Long-Term Competitive Advantage"
30/05/12 14:08 Filed in: Motley Fool Blog Network | Financial Services
Online securities firm SecureKey Technologies announced Friday that it has received an investment of $30 million into the company. This investment came from a group led by Intel's (NASDAQ: INTC) investment unit. The group included Mastercard (NYSE: MA), Visa, (NYSE: V), and Discover Financial Services (NYSE: DFS). SecureKey Technologies is a privately-owned company. It addresses online security issues for banks, governments, and businesses around the world. Their technology is unique in that it uses cryptographic authentication to leverage existing investments in smartcard and NFC technologies, making SecureKey's technology an easily integratable solution.
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Motley Fool Blog Network "Fine Jewelry Will Prevail"
30/05/12 09:35 Filed in: Motley Fool Blog Network | Retail
Global economic crisis might keep Wall Street bankers and Europe's elite from spending money on high dollar jewelry for not, but in the long-term the sparkly jewels will call their names again. Shares of both Tiffany & Co. (NYSE: TIF) and Signet Jewelers Limited (NYSE: SIG), which owns Kay Jewelers and Jared the Galleria of Jewelry, declined just last week. Both jewelers provided disappointing profit forecasts for the coming months. Tiffany & Co. also noted a weaker first quarter profit, noting a loss of sales at its New York location. There are several factors that are currently weighing heavily on the jewelers causing these disappointing forecasts. Europe's debt crisis is one of them. Both companies do significant business in Europe. They also do significant business in China, which is showing signs of a slowing economy. The U.S. is not faring much better for their business. Wary shoppers, waning consumer appetites, and decreased spending by financial sector employees continues to eat away at jewelers' profits.
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Seeking Alpha "Guess Cash May Lure Buyers"
28/05/12 05:22 Filed in: Seeking Alpha | Retail
On Tuesday Guess (NYSE: GES) slumped to nearly a three-year low. The designer/retailer was valued at almost 3.5 times earnings before interest, taxes, depreciation, and amortization. That is the lowest of any apparel retailer in the U.S. and less than half of the median. This is Guess' first consecutive drop in profit in eight years. The global economic slump has done little to help in this area. Also, stiff competition is eroding the profit margins. Guess has sank 41% in the past year as the eurozone crisis undercut consumer demand and lower-priced brands pushed its operating margins to a six year low. This does not bode well for the company.
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Seeking Alpha "Big Lots Reports Earnings Miss"
28/05/12 05:20 Filed in: Seeking Alpha | Retail
Big Lots (BIG) posted some disturbing numbers for Q1 2012 when it reported earlier this week. The closeout retailer posted a net income decline of 22% on 5.5% higher sales. Earnings per share and adjusted earnings from continuing operations were both down. For Q2 2012, Big Lots expects to earn a mere 37 cents to 42 cents per share from continuing operations. Same-store sales are expected to range from slightly positive to slightly negative. This is a bit disconcerting, given that consumer spending is up and other retailers fared much better in the first quarter of this year.
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Seeking Alpha "MetLife To Increase Emerging Markets Sales"
28/05/12 05:18 Filed in: Seeking Alpha | Financial Services
MetLife (NYSE: MET) is planning, among other things, to increase sales in emerging markets. The New York-based insurer is looking to increase sales in emerging markets to approximately 20%. It has stated that the opportunity to earn higher returns is greater in emerging markets. It expects this plan to leverage its global footprint and capitalize on trends and opportunities in key markets. This is a great plan for MetLife. It wishes to continue this growth pattern until 2015, increasing sales in emerging markets 20% each year. That is a sensible plan. Not too fast, but not slow enough to miss out on the opportunities either.
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Seeking Alpha "Motel 6 Has Been Sold"
25/05/12 08:11 Filed in: Seeking Alpha | Hospitality
French hotel company Accor announced Tuesday that it has plans to sell its low-cost chain Motel 6 to Blackstone Group (BX) for $1.9 billion. This sale is an effort for Accor to cut debt and shift their efforts away from the U.S. toward high-growth emerging markets. They plan to use a portion of the proceeds from the sale to cut the company's debt by approximately EUR330 million. Other proceeds will be used to expand into growing markets such as the Asia-Pacific region and Latin America. Accor is also seeking to shift to a franchise model similar to that of competitor InterContinental Hotels Group (IHG). They expect this move to result in fewer revenue swings by partnering with the owners of the hotels as opposed to owning them directly.
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Seeking Alpha "Best Buy Gets Mixed Reviews"
25/05/12 08:10 Filed in: Seeking Alpha | Retail
Best Buy (BBY) posted its Q1 2012 financial figures Tuesday morning. Its Q1 2012 profit fell to $158 million from $212 million in the same quarter the year prior. However, revenue saw a slight increase to $11.61 billion from $11.37 billion in the same quarter the prior year. This could be a double-edged sword for the company. Profit slipped, but revenue topped estimates. One could interpret this to mean several things.
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Motley Fool Blog Network "The Vices"
25/05/12 08:08 Filed in: Motley Fool Blog Network | Retail
I remember when I first stumbled across The Vice Fund (VICEX). My first reaction was that there must be some very cynical people in this world. My second reaction was that they are probably right. Several socially responsible investing funds began popping up in response to this fund. They were all outperformed by bad habits. Giving up any bad habit such as drinking or smoking takes quite an emotional toll on a person. When they have no job, their home is getting foreclosed on, and their car repossessed, the success rate for quitting smoking at the same time is pretty much zero. The stress of quitting on top of financial worries does not mesh well. Any good psychiatrist would agree with that. So The Vice Fund, though cynical, had a point.
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Motley Fool Blog Network "Krispy Kreme Wins On Wall Street"
24/05/12 14:50 Filed in: Motley Fool Blog Network | Retail
Krispy Kreme's (NYSE: KKD) Q1 2012 earnings beat out Wall Street expectations, proving that despite how much weight loss or obesity epidemic media is thrown at us, the U.S. still has a sweet tooth. In addition to surpassing analysts' earnings per share Krispy Kreme also reported a revenue increase of 3.7% from Q1 2011. The company reported higher consumer traffic and price increases as some of the major contributors to these better-than-expected numbers.
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Seeking Alpha "Paulson Recommends AngloGold Ashanti"
24/05/12 13:59 Filed in: Seeking Alpha | Minerals
AngloGold Ashanti (AU) has gained some attention lately as one of John Paulson's top picks. He notes that gold stocks have badly trailed metal prices and AngloGold Ashanti is at its lowest valuation in 10 years. Paulson is a big name in American hedge funds and has a multitude of followers in the investing world. His picks are widely watched and accepted.
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Seeking Alpha "Barclays Sells its 20% BlackRock Stake"
24/05/12 13:58 Filed in: Motley Fool Blog Network | Financial Services
Well, it appears that a couple of long-time buds will be going their separate ways. Barclays PLC (BCS) announced Monday that it will be selling its entire stake in BlackRock, Inc (BLK). The market value of Barclays investment in BlackRock, based on the closing price on May 18 of $171.91, was $6.1 billion. Barclays current holdings represent a 19.6% ownership interest in BlackRock. Barclays, Morgan Stanley, and Bank of America will jointly oversee the sale of shares. This is a mammoth deal between two large financial institutions. Pricing terms for this transaction were expected to be determined on May 23.
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Seeking Alpha "Regal Entertainment, Carmike, and AMC Should Have a Great Summer"
24/05/12 13:56 Filed in: Seeking Alpha | Recreation
The movie theater business has been around for more than 100 years and continues to increase in popularity and technological innovation. Today's theaters offer a variety of options catering to different tastes. Most theaters today also have additional revenue sources, such as concessions, arcade style video games, or a full dining experience while you enjoy the movie of your choice.
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Motley Fool Blog Network "The Intangibles"
24/05/12 13:54 Filed in: Motley Fool Blog Network | Tech
Facebook's (NASDAQ: FB) IPO has not quite been the success story its loyal followers must have imagined. This social media empire has fallen nearly 10% since its inception, remaining below its initial IPO price. This was a much anticipated IPO, and it has fizzled out before it even gained any traction. Demand was so weak, in fact, that the IPO's underwriters had to step in and support the shares. More than 35 million shares of this global network have been traded.
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Motley Fool Blog Network "Smith & Wesson Arms Us Right"
24/05/12 13:51 Filed in: Motley Fool Blog Network | Recreation
Smith & Wesson (NASDAQ: SWHC) announced on Monday that its preliminary fourth quarter sales of $129 million exceeded its own estimate of $113-$118 million. Also, Smith & Wesson's firearm backlog order increased to $439 million from $252 million. Smith & Wesson has also reported steady sales growth in the prior three quarters. The company stated that these figures were due to continued strength across its product line, namely its M&P brand weapons and the new concealable Shield 9mm. Shares of the gun maker's stock spiked 6% Monday after these figures were released. Prior to these new figures shares had fallen a sharp 28% this month.
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Motley Fool Blog Network "Cable Learns To Share"
23/05/12 12:06 Filed in: Motley Fool Blog Network | Telecommunications
Several major U.S. cable companies have agreed to work together to enable each other's high-speed internet customers to access metro wireless hotspots outside of their home markets. Some of the larger companies involved include Comcast (NASDAQ: CMCSA), Time Warner Cable (NYSE: TWC), and Cablevision (NYSE: CVC). They created a new network name "CableWiFi" to allow subscribers to access more than 50,000 WiFi hotspots. This is the largest WiFi sharing effort among companies to date and should all fall into place over the next few months.
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Motley Fool Blog Network "Summer Means Home Improvement"
23/05/12 12:04 Filed in: Motley Fool Blog Network | Retail
The first day of summer is only about a month away. The kids will be out of school, the sun will be shining, trips will be taken, and some will be faced with a long list of home improvement tasks that has been carefully and thoughtfully compiled through the winter. Landscaping, carpentry, and overall upkeep will make some of us look forward to fall. Home improvement is a pretty hefty industry in the U.S. Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) are two of the largest home improvement stores in the nation. They are gearing up for a big season.
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Motley Fool Blog Network "Have We Forgotten How To Yahoo?"
23/05/12 09:56 Filed in: Motley Fool Blog Network | Tech
Yahoo! (NASDAQ: YHOO) used to do so well with advertising. Their television commercials and billboards were just about shoved down our throats, reminding us that this search engine exists. Recently, however, they seem to have been lost in the shuffle. Their commercials are not so prevalent (not that anyone really watches commercials anyway, thanks to DVRs and TiVO). Their billboards are very scarce as well. One of the most successful forms of advertising that currently exists is product placement. In that arena, Google (NASDAQ: GOOG) seems to prevail.
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Motley Fool Blog Network "Hotels Are Hiring"
22/05/12 14:56 Filed in: Motley Fool Blog Network | Hospitality
The lodging industry is bouncing back and seeking more workers. Hotels and motels are getting busier as Americans feel a little more secure economically and are taking vacations. The Federal Reserve has confirmed this shift in travel in its most recent survey of current economic conditions. Additionally, business travel has rebounded enough to restore hotel occupancy levels to 63.6%, close to the historic average. This is good news for the hospitality industry. It will weight especially well on some of America's favorite hotel chains.
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Motley Fool Blog Network "Siemens Is Going For The Green"
22/05/12 14:06 Filed in: Motley Fool Blog Network | Tech
Siemens (NYSE: SI) just got in its first wind-turbine order from Chile. The order encompasses delivery, installation, and commissioning of 50 wind turbines. Each turbine will have a capacity of 2.3 megawatts, giving the order a total capacity of 115 megawatts. The order includes a five-year service and maintenance contract. The order is for the El-Aryan wind project, which is slated to become the largest wind farm in Chile and will provide power for up to 200,000 households.
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Motley Fool Blog Network "Banking On The Rise In London"
22/05/12 13:42 Filed in: Motley Fool Blog Network | Financial Services
Several bank shares were on the rise in London, driving positive sentiments heading into the U.S. market opening on Tuesday. Lloyds Banking Group (NYSE: LYG), Barclays (NYSE: BCS), and The Royal Bank of Scotland (NYSE: RBS) were all participants in these gains. Shares of both Lloyds and Barclays increased by 1%. Shares of RBS increased by 2.2%.
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Motley Fool Blog Network "Embraer Will Rally"
22/05/12 13:39 Filed in: Motley Fool Blog Network | Transportation
Embraer (NYSE: ERJ) is the world's top manufacturer of midsize aircraft. Production of regional jets has been strained lately by high fuel costs and slow global recovery, but eventual uptick could lead to a rally point for the company and its shares. ADR's of Embraer have increased 29% already this year. Embraer is the world's third largest commercial aircraft maker, trailing behind Boeing (NYSE: BA) and EADS' Airbus. But the fact that it is trailing simply means that it has more room to expand and grow. Embraer appears to be seizing the opportunities that lay ahead.
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Motley Fool Blog Network "Emerging Market Oreos"
22/05/12 07:15 Filed in: Motley Fool Blog Network | Emerging Markets
Have you ever heard had a craving for green tea, banana and dulce de leche, or mango and orange Oreo cookies? Well, Kraft Foods (NYSE: KFT) can satisfy that craving. If you are in China you can find the green tea oreos. Banana and dulce de leche can be found in Argentina. Whatever the local taste buds, Kraft has developed an Oreo to suit. Emerging markets will account for about half of Oreo sales this year. Over the past five years emerging markets including Asia and Latin America have been the major drivers of the brand's growth. Thanks to Kraft's overseas push, overall Oreo sales grew nearly 25 percent in 2011.
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Motley Fool Blog Network "International Telecom Still Has Growth Potential"
14/05/12 06:44 Filed in: Motley Fool Blog Network | Telecommunications
International telecommunications is a massive growth industry. The use of mobile phones and data services is expanding even ahead of other basic utilities such as electricity. Yet still countries exist wherein owning a mobile phone is not the norm. There are a few international telecommunications providers that are striving to grow their business and reach a wider audience.
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Seeking Alpha "Japan's Market is Looking Up"
09/05/12 07:18 Filed in: Seeking Alpha | Japan
Japan's market took a nose dive following last year's earthquake and nuclear disaster. But Japanese stocks may already be poised for a comeback. Consumer spending is already improving and corporate earnings are expected to rise 69% this year. Currently, Japan's equities are the most expensive among the world's 60 biggest markets. The Nikkei 225 is up 35% since March 2009. Policy makers in Japan have committed to spend 20 trillion yen to rebuild and spur economic growth. Also, the Bank of Japan pledged in April to continue adding monetary stimulus.
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Motley Fool Blog Network "Low-Volatility ETFs: Good for the Risk-Averse
07/05/12 15:54 Filed in: Motley Fool Blog Network | ETFs
One of the newest things on the market is low-volatility ETFs. They are nice for squeamish investors looking to get in on emerging markets or in Europe's current economic crisis. Emerging markets have long been thought to be exclusive to the investor with a strong appetite for risk. With the current economic crisis in Europe, the same could be said for them as well. The volatility in the global markets can make one wary of opening themselves up to too much risk. This can lead to some highly limited, low diversification portfolios. Low-volatility ETFs provide a solution to that problem. There are already several out there that are performing fairly well.
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Motley Fool Blog Network "PVH: A Cheap Retail Buy"
05/05/12 09:37 Filed in: Motley Fool Blog Network | Retail
PVH Corp. (NYSE: PVH) licenses, merchandises, distributes, and sells apparel lines such as Calvin Klein, Izod, Van Heusen, Chaps, Kenneth Cole, and Tommy Hilfiger. PVH is the largest shirt company in the world and sells its products through 17,000 retail venues, including department stores and 1,000 stores of its own.
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Motley Fool Blog Network "Spain Is A Long-Term Bet"
04/05/12 10:54 Filed in: Motley Fool Blog Network | Spain
Despite its current economic position the Spanish market offers potential in long-term value. Its standing in the international community has taken some blows recently, but Spain is adhering to strict austerity measures in an effort to reign in its budget deficit. Spain's austerity measures are aimed at corporations as opposed to consumers, which is encouraging to many economists.
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Motley Fool Blog Network "Opening Access To Saudi Arabia"
04/05/12 07:56 Filed in: Motley Fool Blog Network | Saudi Arabia
Saudi Arabia is known for being the largest, most liquid, and least accessible market in the Arab world. Monday Saudi Arabia's Capital Market Authority (CMA) signed an agreement that would allow index compiler MSCI Inc (NYSE: MSCI) to use stock market data to create and issue indexes on the kingdom's equity markets. This agreement will go a long way toward Saudi Arabia attaining MSCI Frontier or Emerging Market status. It will also open the kingdom up to global trade. Currently there is a widespread dominance of local investors. The MSCI Saudi Arabia Domestic Indices, and related regional indices, will be available come June 2012. The reintroduced Saudi Arabia Domestic Indices will include large cap, mid cap, and small cap indices aimed at institutional investors who aren't constrained by foreign ownership requirements.
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Motley Fool Blog Network "Airlines Are Off To A Great Start in 2012"
04/05/12 07:36 Filed in: Motley Fool Blog Network | Transportation
Airlines have long been consider a dismal investment opportunity by most investors. High regulations increase already high costs of operation, which in turn reduces any profit there might have been. Profit is scarce in this industry. This makes industry-wide competition pretty fierce. This competition is more often a disservice to the airlines, as it shrinks profits even further. I worked for a regional airline once. Due to competition we did not make a single dime on flights into our hub. We actually lost money on every flight. But we had to keep ourselves in the competition, hoping that the connecting flights they took from the hub would make up for the initial loss. Maybe some airlines are beginning to figure out how to make a profit.
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Motley Fool Blog Network "Traditional Booksellers: Time to Evolve or Dissolve
03/05/12 17:50 Filed in: Motley Fool Blog Network | Retail
Barnes & Noble (NYSE: BKS) is evolving to compete with its digital counterparts. It developed the nook, its digital e-reader, to compete with the likes of the iPad and Amazon's Kindle. Now B&N is entering a partnership with software giant Microsoft (NASDAQ: MSFT). The companies will form a subsidiary, 84% of which is to be held by B&N. One of their first plans for the subsidiary will be a nook application for the Windows 8 operating system. Also, both companies stated that any patent litigation between them had been settled. This new partnership is a great value for Barnes and Noble shareholders. Especially, since the share price has pretty much doubled since the news of this partnership. It seems like there are more good things to come for Barnes and Noble.
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