Changing the world, one word at a time…

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Investing & Finance - Max G Publishing

Morning Coffee Changes It Up

16/08/12 07:57
Dunkin' Brands Group (NASDAQ: DNKN) recently announced that certain stockholders will sell about 21 million shares in a secondary offering, with those investors receiving the proceeds. The chain also stated that it plans to buy back 15 million shares from certain stockholders. That is not the only good news tied to this company. The company's second quarter earnings rose 7.6%. Sales rose much faster than expected leading the company to raise its profit expectations for the year. Since the company went public in July 2011, Dunkin' Brands has been busy opening new doughnut shops and improving its U.S. Baskin Robbins business. The company has also been expanding internationally and paying down its debt. This year Dunkin' will be expanding its business both in the U.S. and abroad, making this a high growth stock.

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PepsiCo Changing the Lineup

15/08/12 17:07
Pepsico (NYSE: PEP) recently announced that it will be pulling its low-calorie “G Series Fit” line of Gatorade products from shelves after they failed to catch on with hardcore fitness buffs and athletes.  The line, which launched in April, included a pre-workout protein bar, protein drink, and low-calorie version of the sports drink.  The company hopes to redesign the products and packaging in 2013, hoping to have the line back on the shelves in 2014.  The line was pricey and did not perform to the company’s expectations.
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Brokerages Lose Volume

14/08/12 16:06
E*TRADE (NASDAQ: ETFC) recently announced that CEO Steven Freiberg is on his way out and chairman Frank Petrilli will be taking over as interim chief executive.  The board has formed a committee to oversee the process of searching for a long-term chief executive.  Raymond James analysts “believe this was a decision based on finding a different skill set at the CEO position.”  The company is searching for a new CEO to focus on strengthening its financial position as it adjusts its business strategy.  As individual consumers pull money out of the stock market, this online brokerage has been struggling.  E*TRADE’s net income dropped 16% in the second quarter year over year as there was lower trading activity.  The company is now trying to focus on managing costs and decreasing risk to strengthen earnings.
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The Effect of Slowing PC Sales

14/08/12 16:05
Nvidia (NASDAQ: NVDA) recently reported that its second quarter profit fell 21% as the chip maker logged higher operating costs, masking revenue growth.  The company actually reported revenue at the top end of its guidance for the quarter and earnings beat analysts’ expectations.  For the current quarter, the company expects revenue of $1.15 to $1.25 billion, topping average analyst estimates that predicted $1.09 billion.
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Organic Foods Take Hold

13/08/12 05:37
Recent reports from Dean Foods (NYSE: DF) showed the dairy giant swinging to a profit in the second quarter.  The company also said that it would spin off a fast-growing unit that sells organic dairy products and soy milk.  Dean Foods is planning to launch an IPO for 20% of its White Wave-Alpro unit, which makes popular brands including Horizon organic milk, Silk soy almond milks, and Alpro soy foods and drinks.  Dean Foods will retain the remaining 80% of the unit.  This news gave Dean Foods one of the largest percentage gains that day.  This move is smart as White Wave-Alpro and Dean Foods offer different products aimed at different customers.  The spin off will allow the units to be managed separately following different philosophies.
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Online Travel Falls Short

13/08/12 05:31
Priceline (NASDAQ: PCLN) recently reported a disappointing third quarter profit outlook, expecting earnings per share of between $11.10 and $12.10.  An earlier forecast had the estimate set at $12.82 per share.  The company stated that economic conditions in Europe were the main reason for its forecast.  Stifel Nicolaus analyst George Askew cut his rating on Priceline to a hold from a buy, stating the company “is transitioning from a momentum stock to a growth stock.”  The results for Priceline are certainly not good, but this company is not being singled out.  It seems the larger online travel industry is slowing down, not only losing momentum, but losing a bit of their growth as well.
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Newspapers Face Tough Transitions

10/08/12 11:39
The New York Times (NYSE: NYT) recently announced that they will be selling About.com to Answers.com for $210 million.  The About.com unit took a nearly $200 million write-down in the second quarter while revenue declined 8.7%.  The site has had difficulty coping with changes to Google’s algorithms.  The change affected online traffic, leading to a decline in display and click advertising.  Since the New York Times purchased About.com in 2005, the site has produced profits that helped bolster the company’s financial picture.  At the same time the company’s newspaper business struggled to make the transition to digital.
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Schulze Makes an Offer for Best Buy

10/08/12 09:38
Richard Schulze, the founder and former chairman of Best Buy (NYSE: BBY), recently made a purchase offer on the remaining shares of the company that he doesn’t already own.  This deal values the company at up to $8.84 billion.  The offer is worth $24 to $26 per share, representing a premium at the time of announcement of 36% to 47%.  Schulze already has a 20% ownership stake in the company and the offer appears to stem from his deep experience with the company and therefore interest in its long-term success.
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Electronics Adapt

10/08/12 07:38
Nam Tai Electronics (NYSE: NTE) recently happily announced its second quarter results for 2012.  Net sales increased 62.8% year over year to $205.2 million.  Net income increased 213% year over year to $9.4 million.  These good results are attributed to a few main factors.  The company’s profits improved likely due to a discontinuation of certain production orders that have had low sales and poor performance for the past few years.
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Home Improvement Making Deals

10/08/12 07:37
Home Depot (NYSE: HD) announced recently that they will be paying $12.50 per share to acquire US Home Systems (NASDAQ: USHS), a supplier of kitchen and bath products, representing a 38% premium for shareholders at the time.  This will allow Home Depot to boost its home service business.  The deal is expected to close by the end of the year.  US Home Systems manufactures, designs, sells, and installs custom kitchen and bathroom cabinets and organizational storage systems for closets and garages.  The company markets, sells, and installs its products and services through Home Depot.  Bringing US Home Systems under Home Depot’s roof assists in expanding its home service offerings even further.  The deal was unanimously approved by the US Home Systems board of directors.  The companies already had a long-standing business relationship, with the company already serving Home Depot in 66 markets in the U.S. plus two in Canada.
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Accessories on the Rise

10/08/12 07:35
Coach (NYSE: COH) increased 5% recently after being raised to a buy rating by a Canaccord Genuity analyst.  The analyst stated that the recent drop in the upscale handbag and accessories maker’s shares makes it an attractive investment.  Analyst Laura Champine noted that the company’s shares have fallen about 10% so far this year, while shares of similar luxury retailers have risen.  Coach has a 28% share in the U.S. handbag market, 17% in Japan, and 6% in China.  The company’s shares are currently trading at about 25% of other luxury retailers, where they have historically traded at about 15% below.  According to Champine: “We do not believe this discount is justified, given that Coach boasts industry-leading margins and returns.”  Coach does have a good track record.  The company has beaten Wall Street estimates in 85% of all quarters for the past five years.  However, in the most recent quarter, sales missed analysts’ projections in addition to the company’s own projections.  The company is facing rising competition from companies such as Michael Kors (NYSE: KORS) that are finding their way into the handbag category Coach previously dominated.
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China Online

10/08/12 07:34
Youku (NYSE: YOKU), a popular Chinese online television company, has been working to clean up its reputation and offer licensed content in an attempt to draw advertising dollars from foreign and domestic companies.  The company has faced struggles with piracy lawsuits, government censorship, and the state-owned media’s web expansion.  In the most recent quarter Youku posted a significant loss due to an increase in operating expenses, but the extra costs incurred to clean up their reputation might have been worth it.  Revenue increased 96%, which was in line with the company’s growth estimate of 90% to 100%.  For the third quarter, Youku is predicting revenue growth of 70% to 80%.  In an effort to continue that growth, Youku agreed to acquire competitor Tudou Holdings (NASDAQ: TUDO) to create the largest Chinese online-video company by advertising revenue.
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Defense Holding Their Ground

31/07/12 17:39
Raytheon (NYSE: RTN) recently reported that their second quarter earnings rose 7.5%.  The company slated this increase as a result of lower costs and a widened profit margin.  As a result of the increase, Raytheon raised its earnings outlook for the year.  Per-share earnings of $5.70 to $5.85 are now expected, up from $5.55 to $5.70.  As Pentagon spending remains a topic for debate, Raytheon and its peers have been expanding into new markets and territories.  Raytheon is considered one of the most resilient U.S. Defense contractors, due in large part to its diversification and limited reliance on big-budget projects.  Raytheon is currently bidding on a project to provide Turkey with a missile defense system.
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Telefonica Cancels Dividend

31/07/12 17:37
Telefonica (NYSE: TEF) recently canceled its dividend and share-buyback policy for the year.  According to the company, there is no sign of significant sales growth in 2012.  The company plans to resume dividends in 2013, but at a reduced rate.  This might be cause for concern for some investors.  However, analysts at Goldman Sachs praised the company for this move, saying, “Our analysts believe that prioritizing liquidity and de-leveraging is the right step for Telefonica to take in the current environment, and may help the company avoid the loss of its investment grade credit rating even if the sovereign credit outlook deteriorates.”  In the long run, this move will prove positive for investors and for the valuation of the company as a whole.
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VMware Purchases Nicira

26/07/12 15:29
Recently VMware (NYSE: VMW) agreed to purchase Nicira for $1.26 billion in cash and equity.  Nicira is considered the pioneer in software-defined networking and will be adding to VMware’s lineup of server virtualization software.  Similar to the way VMware’s virtualization partitions operating systems to perform the tasks of multiple computers, Nicira subdivides a network to operate like a dozen networks.  VMware expects Nicira’s software will help it improve the efficiency of computers in a data center.
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Under Armour Resonates with Customers

26/07/12 15:27
Under Armour (NYSE: UA) recently reported a second quarter profit increase of 6.8%.  This increase was the result of sales growth across all segments, led by footwear, which experienced a 44% surge.  Accessories and apparel also experienced double-digit gains, which led to sales and earnings exceeding Wall Street’s expectations, although higher marketing expenses did have an effect on bottom-line growth.  The company is continuing to build on its 2011 success when net sales climbed 40% to $1.44 billion.
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The Growth of Lithium

23/07/12 11:58
The growing popularity of devices that use Lithium batteries is turning into a boom for miners.  Prices for lithium have tripled since 2000 as more products, such as the iPad and Toyota’s Prius, are using the technology.  Lithium’s use in technology has been growing about 20% a year since 2000, and today accounts for 30% of global lithium demand.  Approximately 95% of the lithium market is controlled by four companies: Talison Lithium, Rockwood Holdings (NYSE: ROC), Sociedad Quimica y Minera de Chile (NYSE: SQM), and FMC (NYSE: FMC).
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Housing Gets a Boost

23/07/12 08:32
The housing market in general has seen signs of improvement recently.  The National Association of Home Builders reported recently that its confidence index experienced the biggest monthly jump in July in almost a decade.  Builders are expecting to sell more homes and the Commerce Department also reported that home building in June rose to the highest level in almost four years.
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JC Penney Redesigns

18/07/12 14:43
J.C. Penney (NYSE: JCP) recently made a bold move when it hired former Apple retail chief Ron Johnson last November.  Then, this April, the company also snagged Benjamin Fay, former Apple Senior Director of Retail Real Estate and Development.  The company is trying to re-brand itself and is already making plans to face lift several of its stores throughout the U.S.  J.C. Penney currently operates 1,100 stores.  According to its website, the company is “re-imagining every aspect of its business in order to reclaim its birthright and become America’s favorite store.  The company is transforming the way it does business and remaking the customer experience.”  However, the company may be facing resistance from within its own walls.
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Honeywell Lifts Outlook

18/07/12 14:01
Recently there has been concern and talk of the defense sector drying up due to the coming November elections.  True to form, defense spending is seen to slow as it gets closer to election time.  Understandably, the sector is nervous about the policies of the new administration.  Government spending and policies are a major part of this sector.  However, even with tensions running high, Honeywell (NYSE: HON) recently lifted its outlook for the year.  The company added 5 cents to its 2012 earnings outlook, putting together a new estimate of $4.40 to $4.55 per share.  The company cited continued investment in new products, technologies, and initiatives as reasons for the change.  In addition to this lifted outlook, Honeywell also posted an 11% higher second quarter profit in its earnings report.
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The Cereal Wars

18/07/12 13:59
Food may be a necessity.  However, brand names are not.  As budgets become tighter, families start looking for ways to cut costs.  They trade in their brand names for generics as the main focus becomes pricing, which becomes a problem for those companies that rely on their branding for market position.  This is clearly evident when it comes to cereal companies.
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Premium Furniture Heats Up

18/07/12 10:33
Though the numbers show that American consumers are spending less on furniture than they have previously, that does not go to say that all furniture companies are losing ground.  Similar to general retail and automotive, the high-end and luxury brands are still proving to be desired products.
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Micron Makes Acquisitions

18/07/12 09:56
Micron Technology (NASDAQ: MU) has agreed to buy troubled Japanese rival Elpida Memory Inc. through an agreement that will see the chipmaker spend about $2.5 billion to buy the company’s equity and pay some of its creditors.  Micron became Elpida’s financial sponsor in May after the company filed for bankruptcy protection.  Micron will acquire the company’s equity for $750 million and pay a total of $1.75 billion in future annual installment payments.  All pre-petition debt obligations of Elpida will be discharged under the corporate reorganization proceedings.  The agreement also calls for Micron to provide certain financing support for Elpida capital spending and to maintain the company’s operations and employees.  Micron Technology has also agreed to acquire Taiwan-based Powerchip Technology Corporation’s 24% interest of Rexchip Electronics Corporation for around $334 million, meaning that Micron will now control approximately 89% of Rexchip’s outstanding shares.
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Linn Energy Acquires Jonah Field

18/07/12 08:58
Linn Energy, LLC (NASDAQ: LINE) recently announced the acquisition of Wyoming’s Jonah Field from BP PLC (NYSE: BP) for $1.025 billion.  The acquisition will add approximately 145 million cubic feet equivalent per day of liquids-rich natural gas production.  The deal will also add immediately to Linn’s distributable cash flow per unit.  Plus, it offers significant drilling inventory.  According to Linn Energy CEO Mark Ellis, “The long-life, low-decline characteristics of the Jonah Field make this asset an excellent fit for us.”  Some of the significant characteristics expected from this acquisition are proved reserves, maintenance capital, and potential for production optimization and cost savings.  The deal is expected to close by July 31.
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Agua Caliente Nears Completion

18/07/12 08:42
The 290 megawatt Agua Caliente solar project, currently under construction in Yuma, AZ, is now more than two-thirds of the way complete.  It is delivering more than 200 megawatts to the electric grid.  Agua Caliente is the world’s largest operating photovoltaic power plant.  It uses industry-leading solar plant controls and forecasting capabilities to integrate its output with the power grid.  The project is expected to reach completion in 2014.  It is being financed via a loan guarantee from the U.S. Department of Energy.
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Target and Neiman Marcus Join Forces

10/07/12 16:02
Target (NYSE: TGT) and Neiman Marcus have joined forces to unveil a collection featuring more than 50 limited-edition gifts from 24 designers on December 1 this year, just ahead of the Christmas season.  The products will sell at prices from $7.99 to $499.99, with most costing less than $60.  Neiman Marcus held talks with Target for several years before it approached the company again in December about a potential partnership.  Target has introduced its own designer collections that have helped it increase store and online traffic.  Neiman Marcus has now introduced Target to its designers.  Target will oversee the sourcing and manufacturing for the collection.  The collaboration allows both companies to broaden their customer base and add to its selection of holiday gift items under $100.
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Educator Regulations Heat Up

09/07/12 13:31
Higher education has been facing increased scrutiny and regulation from the Obama administration. For-profit institutions such as Bridgepoint Education (NYSE: BPI), Apollo Group’s (NASDAQ: APOL) University of Phoenix, and DeVry (NYSE: DV) have felt the pressure mounting recently. The increased monitoring is aimed at ensuring that students are being properly educated. However, the exposure has also opened up these institutions for criticism of their recruiting process as well as tuition prices and financial aid policies.
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Chinese Ads Shift from TV to Internet

09/07/12 10:52
JP Morgan recently started coverage on Chinese internet television company Youku (NYSE: YOKU). The firm currently views Youku as overweight and set a price target at $30. Morgan is bullish on a general shift in Chinese ad spending from TV to online video. Upcoming ad rate hikes, inventory expansions, a favorable content amortization schedule, and the achieving of quarterly profitability in 2013 are all viewed as positive catalysts.
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Boeing Wins at Air Show

09/07/12 10:42
The Farnborough International Air Show is an iconic global aviation event. The event is held every two years and lasts for two weeks. The first week consists of the event’s trade exhibition and then moves on to a public air show. The true value of this event is realized within the week’s trade exhibition. In 2010, $47 billion worth of orders were announced during the event. The 2012 event got off to a promising start. On the first day Boeing (NYSE: BA) announced an order for 75 planes worth $7.2 billion from Air Lease Corp. (NYSE: AL).  The order is for the new, fuel-efficient 737 MAX, 60 of the MAX 8 version and 15 of the MAX 9 version.
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PepsiCo Seeking to Expand its Dairy Business

09/07/12 10:30
PepsiCo (NYSE: PEP) is home to hundreds of brands across the globe. These brands include Pepsi-Cola, Frito Lay, Gatorade, Tropicana, and Quaker. The company is separated into four major divisions: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, and PepsiCo Asia, Middle East, and Africa. Currently, beverages make up the majority of PepsiCo’s revenue and brand recognition. With revenues of $60 billion, PepsiCo owns some of the world’s most popular brands available worldwide through a variety of go-to market systems. Recently, the company has been working toward diversifying even further, aiming to grow its global nutrition portfolio to $30 billion in revenue by 2020.
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Petrobas Buys Remaining Stake in Pasadena

03/07/12 13:19
Petrobas (NYSE: PBR) recently announced that it will pay a total of $820.5 million to acquire a 50% stake in Pasadena Refining Systems Inc, assuming full control of the company. Petrobas acquired its first 50% stake in Pasadena in 2006 for $360 million. It will be purchasing the remaining stake from Belgium Transcor Astra.  According to the company, “Petrobas executed an agreement to end all existing lawsuits between the companies in the Petrobas System and the Belgian group Transcor Astra, controller of Astra Oil Trading. The lawsuits stemmed from the partnership period between Astra and Petrobas America Inc., a subsidiary of Petrobas, in the Pasadena Refining System, Inc., owner of the Pasadena Refinery in Texas and the Trading Company.”
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The Rise of Digital Wallets

03/07/12 13:17
A digital wallet, or e-wallet, allows users to make e-commerce transactions quickly and securely. The digital wallet has evolved into a service that provides mobile, online users with a convenient way to store and use online shopping information as well as a way to make and receive payments. With the ever-increasing popularity of smartphones, digital wallets have evolved even further as readily available applications to mobile phone subscribers.
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Dell Enters IT Game

02/07/12 14:58
Dell (NASDAQ: DELL) is widely known for its PCs. However, Dell provides a diverse range of products and services for its customers. Dell provides computing hardware and software for consumers, small and large businesses, and the government. Dell prides itself on the built-to-order facet of its computers. However, the manufacturer has had a hard time competing with brands such as Hewlett-Packard (NYSE: HPQ). In addition to personal computers and accessories, HP is also very well known for its enterprise solutions. HP operates in over 170 countries around the world and is the world’s largest IT company.
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Integral Argentinean Companies

23/06/12 10:32
Argentina is well known for both its mining potential and its intervening government. However, Argentina’s government has been working hard to loosen its grip and move away from strict and often crippling regulations. This has opened up the Argentinean market and a number of companies that provide good value for the long-term buyer. Below are three such companies, each operating in a different sector, that share in Argentina’s potential for growth.
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Chinese Companies with No Debt

23/06/12 10:30
There has been a lot of talk lately about the slowing of China’s economy.  Most of this talk comes from China’s lessened manufacturing output.  However, China has more to offer than just manufacturing.  The following five companies all target different sectors of the Chinese market and they all hold zero debt, making them a great investment value.
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OpenTable Integrates

22/06/12 10:44
It was recently announced that OpenTable (NASDAQ: OPEN) would by integrated with Siri in Apple’s iOS 6.  This integration has the potential to be a strong catalyst for the company. The integration of the two should drive downloads of OpenTable’s mobile application; combined with recent Google+ integration, this could potentially create high competitive barriers for its peers, despite innovative functionality and more aggressive price points from smaller competitors.
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Moving China Out of Africa

18/06/12 16:49
Investing in Africa is normally thought of as an extreme alternative investment, something reserved for the Chinese.  However, more and more African nations are starting to warm to the idea of capitalism and are growing dissatisfied with China’s dominant presence.  This leaves an opening for the alternative investor not afraid to assume some risk for the potential growth and profits that exist there.  South Africa was the last country to be added to the BRICS and it still carries value as a growth investment.  But there are other countries such as Mozambique and Nigeria that are emerging as potential investments.
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Citigroup and HSBC Take on China

18/06/12 13:00
Stifled by regulation in China, foreign banks are missing out on an epic lending boom.  Five years after China said it fully met World Trade Organization obligations to open its economy to global financial firms, Citigroup (NYSE: C) and HSBC (NYSE: HBC) are among banks still largely shut out of China, the world’s biggest banking market.  Foreign financial companies hold less than 2% of assets in China.  This represents the lowest market share among the major emerging markets.  Meanwhile state-owned firms such as the Industrial and Commercial Bank of China have been transformed from insolvent into profitable firms with the assistance of large government bailouts.  The Chinese market is simply dominated by Chinese lenders.
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Creative Ways to Cut Airline Fuel Costs

15/06/12 12:27
One of the largest costs for airline operators is fuel.  Southwest Airlines (NYSE: LUV) was able to offset this large cost for years by hedging contracts for their fuel.  This is partly what allowed them to maintain their status as the low-cost operator and forced competitors to lower their prices below operating costs just to compete.  Back before Southwest’s fuel contracts expired, I worked for their competitor American Airlines at a regional airport.  American Airlines lost money on every flight that they sent to the hub because they were forced to price competitively with Southwest.  When Southwest was nearing the end of their fuel contracts they began to make cuts elsewhere, refusing to give up their competitive advantage.
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Tesla Beating California's Regulations

14/06/12 19:29
In 2011 approximately 18,000 electric vehicles were sold in the U.S.  This number is up from just under 500 in 2010.  With fuel costs continually rising and declining, then rising some more, more consumers are seeing the long-term value in electric cars.  And though sales of these vehicles are picking up the numbers are still a far cry from what policy makers in heavily regulated states such as California are requiring.  Honda (NYSE: HMC) sold fewer of its FCX Clarity sedans than it anticipated, leaving it far from reaching the targeted number.  And this is from a company whose lineup ranks among the most fuel-efficient in the U.S.
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2 Overlooked Oil IPOs

13/06/12 16:23
There have been several great IPOs already in 2012.  Although, some of the more recent ones have had to live under Facebook’s shadow.  As a result, they have gotten lost in the headlines, research, and analysis.  Which is a shame, because there are some great ones out there.  However, for the investor willing to see past Facebook, the situation has created some potetnial buying opportunities.  IPOs such as Pacific Coast Oil Trust (NYSE: ROYT) and Midstates Petroleum Company, Inc. (NYSE: MPO) have simply become lost in the shuffle.  For investors in the know, they provide great value.
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Latin America Ablaze

11/06/12 13:44
The prospect of continued interest rate reductions in Latin America’s largest economy has buoyed Brazilian stocks recently.  Brazil’s inflation rate is now at its lowest level since September 2010.  Brazil’s Finance Minister Guido Mantega said the current level of inflation provides “a degree of liberty to have more flexible monetary policy,” presumably to include lowering interest rates and expanding credit.
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Motley Fool Blog Network "Sony is Losing the Game"

05/06/12 17:00
Can Sony’s (NYSE: SNE) Playstation3 keep up with Microsoft’s (NASDAQ: MSFT) XBox or Nintendo’s (NASDAQOTH: NTDOY.PK) Wii?  Sony’s share price has recently hit record lows in Japan and is faring no better in U.S. Trading with its price bringing down the 52-week low.  Sony has posted four consecutive annual losses.  Investors are more than concerned about their weak earnings.  One of the major places that they are losing out on profits is with their video game console.
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Motley Fool Blog Network "New Investment Could Secure Long-Term Competitive Advantage"

30/05/12 14:08
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
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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Motley Fool Blog Network "The Vices"

25/05/12 08:08
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
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 "Barclays Sells its 20% BlackRock Stake"

24/05/12 13:58
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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Motley Fool Blog Network "The Intangibles"

24/05/12 13:54
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
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
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
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
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
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
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
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
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
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
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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Motley Fool Blog Network "Low-Volatility ETFs: Good for the Risk-Averse

07/05/12 15:54
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
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
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
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
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
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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Motley Fool Blog Network "The Trending Clouds"

30/04/12 13:26
Cloud computing has become a revolution, or revelation to some, in the way we think about purchasing technology.  No longer do you need the larger hard drives.  What is smaller than a flash drive?  Air.  Flash drives are truly going the way of the floppy disk. 
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Motley Fool Blog Network "Retail REITs Are Cyclical At Best"

30/04/12 08:54
Simon Property Group (NYSE: SPG) is the largest real estate company in the world.  You know those shopping malls where your teenage kids hang out and where your wife spends all of your money?  Chances are, SPG owns it.  They own or have interest in 337 retail real estate properties in North America and Asia.  They also have a 29% stake in 270 shopping centers across Europe through publicly traded French REIT Klepierre.  Klepierre recently posted a 3.1% rise in rental income for Q1 2012.  Their shopping centers in Northern Europe offset the 4.4% rental income loss in Spain.
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Motley Fool Blog Network "Why Nike Is Still Fundamentally A Great Buy"

27/04/12 18:42
Nike (NYSE: NKE) is one of the world's largest manufacturers of athletic apparel.  They are also one of the most popular.  However, Nike is so much more than a manufacturer.  They are engaged in design, development, and marketing.  What is great about this company is that it evolves.  They will always be old school with the Air Jordan's and hi-top sneakers,  but they have realized that the morning runner or the late-night gym-goer are just as important as the team athletes.  That is the new school, catering to the individual athlete.  But they have been able to do so without losing their old customer base. Their newly acquired contract with the NFL doesn't seem to hurt things, either.
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Motley Fool Blog Network "Debt-Free Dividend-Paying Trusts"

27/04/12 18:41
Being debt free is something that the long-term thinking, financially savvy among us strive for.  So why not look for that in an investment? Also, most people do not look to investing as a source of income.  But that is still no reason to discount a high dividend yield.  Dividend reinvestment is a great thing, especially if you are looking to build a long-term portfolio that you can grow old on.  Listed here are a few trusts that share these qualities and would make a nice, calm addition to a retirement portfolio.
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Motley Fool Blog Network "Is Northrop Just Putting On A Brave Face?"

27/04/12 18:39
Northrop Grumman (NYSE: NOC) raised their profit forecast for 2012.  Are they really that confident?  The newfound confidence came after a better than expected first quarter.  In their defense, their first quarter income did increase by a whopping 2%, mostly aided by sales in Electronics.  Net income from continuing operations totaled $506 million, compared with $496 million the year prior.  Also, sales declined 8%.  Does that truly add up to a case for raising their outlook for the entire year?
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