Bush’s Legacy?, Obama,The Sun, Christmas
– Here is a great op-ed by Fouad Ajami about Bush.
– This is a American candidate just being naive or plain uninformed…
– Now more sun may be good for us, how long before smoking is?
– What is the most popular dining destination on Christmas?
Turns out the chief complaint against Wal-Mart (WMT) is just not true.
The Federal Reserve Bank of Minneapolis did a study of 40 counties in its district between 1986 and 2003 found that Wal-Mart slightly boosted business growth, employment and earnings compared with counties without a Wal-Mart, senior economist Terry Fitzgerald said in a paper released Tuesday.
The Fed actually found that Wal-Mart has a negligible economic influence on small counties and doesn’t destroy local businesses after all. “The biggest surprise is that Wal-Mart’s economic influence is pretty small, given how rancorous the debate is,” Fitzgerald said in an interview. “The success of local communities depends on other factors than the presence or non-presence of Wal-Mart.”
Plenty of folks out there are making a living spreading falsehoods about the retailer and have done such a fine job of it that their statements have begun to be treated as fact.
The irony is that Wal-Mart’s pay scale is equitable to retailers like Target (TGT), Kohls (KSS) and JC Penny (JCP) and its benefit package now exceeds the other retailers yet the others escape the scrutiny. One can only conclude that Wal-Mart’s scrutiny is due to its size, not it practices.
The Wal-Mart bashing has just about played itself out if for not other reason folks have grown tired of hearing the same thing over and other. When you add studies like this that get distributed on the internet rather than simply placed and buried in some report, people are beginning to see the truth…
Disclosure: Long Wal-Mart, None in any other company mentioned.
Jatropha, remember it because the stuff will grow and flourish anywhere.
Archer Daniels Midland (ADM), Daimler AG (DIA) and Bayer AG (BAY) are studying the use of the plant. Folks, this is huge. Why? ADM is going to study the conversion into biodiesel, Daimler is going to study its interaction with car engines and Bayer is going to produce herbicides, insecticides and fungicides for Jatropha plants. Essentially we have farm to engine collarborative here.
Jatropha is resistant to drought and pests, and produces seeds containing up to 40% oil. When the seeds are crushed and processed, the resulting oil can be used in a standard diesel engine, while the residue can also be processed into biomass to power electricity plants. The best part is that because it is so hardy, it can be planted on lands that currently do not have agricultural uses (barren land), bypassing the “food vs fuel” debate.
In a statement, the companies said, “Biodiesel derived from Jatropha nut kernels has properties similar to those of biofuels obtained from oilseed rapes. It is also characterised by a positive CO2 balance and can thus contribute to protecting the climate.”
Now, is this going to affect ADM in 2008? No. But the big thing is this is a plant that can be grown in the US Southwest in lands currently uncultivated due to their climate. This is a long term story and as time goes by, its significance will grow dramatically.
Disclosure: Long ADM
UPGRADES
NVIDIA NVDA AmTech Research Sell » Neutral
Great A&P Tea GAP CIBC Wrld Mkts Sector Perform » Sector Outperform
ICF International ICFI Stifel Nicolaus Hold » Buy
EXFO EXFO Roth Capital Hold » Buy
Bucyrus BUCY Robert W. Baird Neutral » Outperform
Texas Industries TXI KeyBanc Capital Mkts Hold » Buy
Enbridge ENB RBC Capital Mkts Sector Perform » Outperform
Zumiez ZUMZ Piper Jaffray Neutral » Buy
Shutterfly SFLY Jefferies & Co Hold » Buy
LDK Solar LDK CIBC Wrld Mkts Sector Underperform » Sector Perform
Fairport Comms FRP JP Morgan Neutral » Overweight
Fed Investors FII JP Morgan Neutral » Overweight
Delta Air Lines DAL Bear Stearns Peer Perform » Outperform
Forward Air FWRD Bear Stearns Underperform » Peer Perform
AU Optronics AUO Lehman Brothers Equal-weight » Overweight
Tenaris TS Citigroup Hold » Buy
PPD Inc. PPDI UBS Neutral » Buy
Weingarten Realty WRI UBS Sell » Neutral
AMR Corp AMR UBS Sell » Neutral
Continental Air CAL UBS Neutral » Buy
Northwest Airlines NWA UBS Neutral » Buy
US Airways LCC UBS Neutral » Buy
UAL Corp. UAUA UBS Neutral » Buy
Delta Air Lines DAL UBS Neutral » Buy
Supervalu SVU UBS Sell » Neutral
Reynolds American RAI UBS Neutral » Buy
Shire Pharm SHPGY Robert W. Baird Neutral » Outperform
DOWNGRADES
LSI Industries LYTS Canaccord Adams Buy » Hold
Petrobras Energia Participaciones S.A. PZE Citigroup Hold » Sell
Goldcorp GG RBC Capital Mkts Outperform » Sector Perform
Lamar Advertising LAMR Stanford Research Buy » Hold
Saba Software SABA Brean Murray Buy » Hold
First Potomac Realty FPO BMO Capital Markets Outperform » Market Perform
PS Business Parks PSB BMO Capital Markets Outperform » Market Perform
Equity Res EQR BMO Capital Markets Outperform » Market Perform
Astec Industries ASTE Robert W. Baird Outperform » Neutral
Freightcar America RAIL KeyBanc Capital Mkts Buy » Hold
Alliant Tech ATK Friedman Billings Outperform » Mkt Perform
Hythiam HYTM RBC Capital Mkts Outperform » Sector Perform
Petrobras Energia Participaciones S.A. PZE Bear Stearns Peer Perform » Underperform
IberiaBank IBKC Keefe Bruyette Mkt Perform » Underperform
Red Lion Hotels RLH JMP Securities Strong Buy » Mkt Outperform
Morgans Hotel Group MHGC JMP Securities Strong Buy » Mkt Outperform
Garmin GRMN Deutsche Securities Buy » Hold
Express Scripts ESRX Wachovia Outperform » Mkt Perform
Air Tran Holdings AAI Bear Stearns Outperform » Peer Perform
Tesoro TSO Bear Stearns Peer Perform » Underperform
Family Dollar FDO Bear Stearns Peer Perform » Underperform
Centene CNC Bear Stearns Outperform » Peer Perform
ArQule ARQL Banc of America Sec Buy » Neutral
NCR Corp NCR Robert W. Baird Outperform » Neutral
Thursday’s Picks
Tim Seymour recommends Titanium Metals (TIE) $22.76
Guy Adami prefers NYSE Euronext (NYX) $79.80
Karen Finerman says get long American Eagle (AEO) $17.72
Pete Najarian thinks Alexander & Baldwin (ALEX)$45.31
Wednesday’s Results
Jeff Macke says short the Dow with Short Dow30 ProShares (DOG) $62.51 Close $61.85 LOSS
Guy Adami likes AT&T (T)$39.16 Close $39.00 LOSS
Karen Finerman says long SPDR (SPY) $138.91 Close $140.76 and short iShares Russell 2000 Index (IWM)$70.02 Close $70.95 GAIN & LOSS
Pete Najarian recommends owning puts in Countrywide Financial (CFC). $5.37 Close $5.10 GAIN
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 3-1
Jeff Macke= 3-2
Tim Seymore= 1-1
Guy Adami= 2-3
Pete Najarian= 2-1
Karen Finerman= 1-2
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
Karen Finerman= 40-30 = 57%
YHOO Yahoo! Inc 21.95
WM Washington Mutual Inc 12.04
WFMI Whole Foods Market Inc 34.96
WAG Walgreen Co. 33.50
USG USG Corporation 30.68
SYY Sysco Corporation 28.57
SVU Supervalu Inc 26.89
SHLD Sears Hldgs Corp 95.08
RMIX U S Concrete Inc 2.48
RL Polo Ralph Lauren Corp 55.82
OMX Officemax Inc Del 17.70
OFC Corporate Office Pptys Tr 26.64
ODP Office Depot, Inc 11.80
OC Owens Corning New 18.15
MAT Mattel, Inc 17.08
LOW Lowe’s Companies, Inc 20.27
LF Leapfrog Enterprises Inc 5.00
HSY Hershey Co 37.53
HD Home Depot, Inc 24.39
HAS Hasbro Inc 22.73
FDX Fedex Corp 82.08
DWA Dreamworks Animation … 22.51
DOW The Dow Chemical Company 36.19
DOV Dover Corporation 38.04
DNB Dun & Bradstreet Corp … 81.97
DIS Walt Disney Company 29.86
CPB Campbell Soup Company 34.17
COLM Columbia Sportswear Co 37.97
COH Coach Inc 27.04
BX Blackstone Group L P 17.81
BA Boeing Co. 79.60
Disclosure:
Scary, Bloggystyle, Jurors, Jim Rice
-This article actually frightened me..
– Adam finds the only thing that might actually cause me to consider a vote for Obama.
– Jurors asking questions, what an idea…
– How can Rice not be in the Hall? Travesty
Eddie Lampert continues to stock Sears (SHLD) with well-known quality brands.
Beginning this spring, Sears becomes the exclusive national retailer to sell the Snapper brand of lawn equipment.
From the Press Release:
“As the leading retailer of powered lawn and garden equipment, we’re very pleased to add another all-star brand to our roster,” said Jeff Rothe, vice president and general merchandise manager for Sears Holdings. “Now consumers have both Craftsman, the nation’s leading and most trusted brand, and Snapper — to select from when shopping at Sears for their lawnmower and tractor needs.
“With these two powerhouse brands, plus our existing brands, Sears offers the largest powered lawn and garden assortment to our customers. Additionally, Snapper’s spokesperson Brett Favre will introduce the new mowers, tractors and their availability at Sears in a new national ad campaign set to appear in late February,” Rothe said.
The Snapper line of products will be available in all Sears Full-line stores, Sears Hardware stores and Sears Dealer stores. In addition, look for a new interactive Snapper site on the lawn and garden page sears.com.
Back in November I posted my thoughts that Lampert was attempting to assemble a “store of brands” that could then be advertised to people. This snapper move in another important step in that direction.
The best part is getting Brett Farve in the deal. His promotional activities for both Snapper and Sears are sure to pay off. Farve is a respected name and to witness his effect, the Wrangler Jeans division of VF Corp (VF) experienced record profits in 2006 and 2007 as Farve became the spokes person for them. In short, what he pushes sells.
Lampert is assembling a great brand lineup and it will payoff. In the meantime the cash position of the company remains strong, the share count is evaporating and the balance sheet is the strongest in the industry.
Disclosure: Long Sears
Ackman is no dummy I will admit but can anyone tell me what he sees in Borders (BGP)?
In an SEC filing late Tuesday Ackman’s Pershing Square followed last week’s total return swap transaction in Borders shares with another.
The Details:
. Pershing Square International, Ltd. (“PSIL”), entered into a cash-settled total return swap with a broker-dealer counterparty for a commission equal to $0.03 per notional share subject to such swap. The swap was entered into on January 8, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSIL is obligated to pay to the counterparty any negative price performance under $9.7239 for each of the 1,770,100 notional BGP common shares subject to the swap (the “Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSIL any positive price performance over $9.7239 for each of the Swap Reference Shares, plus any dividends paid during the life of the swap.
I just don’t get it. Ideas anyone?
Disclosure: None
UPGRADES
Gold Fields GFI CIBC Wrld Mkts Sector Underperform » Sector Perform
Yamana Gold AUY CIBC Wrld Mkts Sector Perform » Sector Outperform
Agnico-Eagle Mines AEM CIBC Wrld Mkts Sector Perform » Sector Outperform
Kinross Gold KGC CIBC Wrld Mkts Sector Perform » Sector Outperform
Avocent AVCT Needham & Co Hold » Buy
Dime Community DCOM Stifel Nicolaus Sell » Hold
Baxter BAX Citigroup Hold » Buy
Helen of Troy HELE Jefferies & Co Hold » Buy
Western Refining WNR Deutsche Securities Sell » Hold
Dassault Systems DASTY Deutsche Securities Hold » Buy
Hutchison Telcom HTX Citigroup Sell » Buy
Satyam Computer SAY Lehman Brothers Underweight » Overweight
Wipro WIT Lehman Brothers Underweight » Overweight
Infosys INFY Lehman Brothers Equal-weight » Overweight
Avocent AVCT Robert W. Baird Neutral » Outperform
Fed Investors FII UBS Neutral » Buy
Starbucks SBUX Banc of America Sec Sell » Neutral
DOWNGRADES
Teradyne TER AmTech Research Buy » Neutral
Novellus NVLS AmTech Research Buy » Neutral
Lam Research LRCX AmTech Research Buy » Neutral
Kulicke & Soffa KLIC AmTech Research Buy » Neutral
KLA-Tencor KLAC AmTech Research Buy » Neutral
Intevac IVAC AmTech Research Buy » Neutral
FEI Company FEIC AmTech Research Buy » Neutral
Applied Materials AMAT AmTech Research Buy » Neutral
MIPS Techs MIPS Longbow Buy » Neutral
ViaSat VSAT Collins Stewart Buy » Market Perform
Western Digital WDC Caris & Company Buy » Average
Seagate Tech STX Caris & Company Above Average » Below Average
Pharmasset VRUS Stifel Nicolaus Buy » Hold
Circuit City CC Cowen & Co Outperform » Neutral
Best Buy BBY Cowen & Co Outperform » Neutral
Brinker EAT KeyBanc Capital Mkts Hold » Underweight
Intuitive Surgical ISRG Wachovia Outperform » Mkt Perform
Shoretel SHOR Janney Mntgmy Scott Buy » Neutral
Disclosure:
Wednesday’s Picks
Here’s our Fast Money final trade. Our gang gives you tomorrow’s best trade, right now!
Jeff Macke says short the Dow with Short Dow30 ProShares (DOG) $62.51
Guy Adami likes AT&T (T)$39.16
Karen Finerman says long SPDR (SPY) $138.91 and short iShares Russell 2000 Index (IWM)$70.02
Pete Najarian recommends owning puts in Countrywide Financial (CFC). $5.37
Tuesday’s Results
Jeff Macke recommends getting long Starbucks (SBUX) on the news that Howard Schultz is returning as CEO. $18.38 Close $20.00 GAIN
Guy Adami likes Johnson & Johnson(JNJ) $66.86 for valuations. Close $66.94 GAIN
Karen Finerman prefers Comcast (CMCSA) $17.0 Close $16.62 LOSS
Pete Najarian thinks Millennium Pharmaceuticals is a buy (MLNM) $14.84 Close $15.21 GAIN
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 3-1
Jeff Macke= 3-1
Tim Seymore= 1-1
Guy Adami= 2-2
Pete Najarian= 1-1
Karen Finerman= 0-1
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
Karen Finerman= 40-30 = 57%
USG USG Corporation 33.11
USB US Bancorp Del 28.99
RUTH Ruths Chris Steak Hse Inc 7.95
RT Ruby Tuesday, Inc. (G … 8.17
PNBK Patriot Natl Bancorp Inc 15.16
PII Polaris Industries Inc 41.86
PFGC Performance Food Group Co 24.11
MTG MGIC Investment Corpo … 16.08
MTB M & T Bk Corp 74.88
MSO Martha Stewart Living … 7.18
MS Morgan Stanley 47.23
JCP Penney (J.C.) Company … 35.42
JBLU Jetblue Awys Corp 5.07
CAL Continental Airlines Inc 18.81
C Citigroup, Inc 27.55
BSC The Bear Stearns Comp … 73.99
BAC Bank Of America Corpo … 39.07
BA Boeing Co. 81.05
ABK AMBAC Inc 19.88
These stats represent the post Christmas rush.
1. www.walmart.com (WMT)= 7.56%
2. www.bestbuy.com (BBY)= 4.76%
3. www.target.com (TGT)= 4.33%
4. www.circuitcity.com (CC) = 3.07%
5. www.sears.com (SHLD)= 2.25%
6. www.jcpenney.com (JCP)= 2.02%
7. www.macys.com (M) = 1.5%
8. www.kohls.com (KSS)= 1.35%
9. www.homedepot.com (HD) = 1.21%
Couple points. Wal-Mart is still the king and actually gained ground on Amazon (AMZN) who saw a significant decline post Christmas (almost two percentage points).
I am still t a lost to understand how Circuit City can be losing money. The traffic was there all season, they had eyes on their products. They just could not sell them. It is not a “sales associate” problem because they do not come into play online, it was a pricing issue. When online, price win because comparative shopping is easy to do. Circuit City just had their items mis-priced. Simple.
Home Depot made the list for the first time since I began tracking which may mean people began their winter indoor projects. This bears watching as a Home Depot climb up the chart is good for the economy as a whole. It would also be a good omen for the housing markets.
Date from Hitwise
Rocket,CNN, Crain’s NY Business, RI Legislature
– Will he pull a Palmero or a McGwire?
– Another thank you is in store for this mention.
– Another thank you to Aaron Elstein at Crain’s NY for both this interview and mention.
– Now the infighting begins on money they will not even ever see..
Disclosure:
Donate to the ValuePlays Project for KIVA
A special thank you to Aaron Pressman for this mention today on my Starbucks (SBUX) post yesterday.
Disclosure:
