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Thursday’s 52 Week Lows

Blood on the street today… Time to buy!!

WWE World Wrestling Entmt Inc
WON Westwood One Inc
UWN Nevada Gold & Casinos Inc
TZOO Travelzoo Inc
TWC Time Warner Cable Inc
TDA Telephone & Data Sys Inc
TBL The Timberland Company
SHOO Steven Madden Ltd
SGA Saga Communications, Inc
PZZA Papa John’s International
OGE Oklahoma Gas and Elec
NAPS Napster Inc
MKV Markel Corp
KEM KEMET Corp
INTU Intuit Inc
INSP Infospace Inc
GPS The Gap, Inc
DTG Dollar Thrifty Automo
BKS Barnes & Noble, Inc

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Google Steps In It

What is Google (GOOG) thinking?

Google announced they are going to start allowing people cited in news stories to respond and have their response posted to the news story. What? How many people are they going to have to hire to make sure the “responder” is actually the person cited in the article? How much time will lapse between the news story and the time the response hits? With our lives at a story a minute pace, if the response is not posted fast, the story become old news and the service almost irrelevant. Will they be editing the posts for vulgarity or other “unwanted content” and if they are, how many more people will be needed to do that?

Will Google be held liable if a fake responder gets by them and trashes someone and creates another whole story or disastrous events unfold due to the fake response? I guess the question to be asked is, “what good for Google can come out of this?”

They already have message boards for people who like to engage in the online back and forth so there won’t be the additional page views generated to justify the tremendous costs this will entail.

Maybe they are trying to save Whole Foods (WFMI) CEO Mackey some time?

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The Home Depot Buyback: My Question Answered.

Earlier this week I asked the question, “Is Home Depot’s Buyback At Risk?”. Well, Home Depot (HD) today said it is in talks with the three private equity firms that agreed to buy its supply unit and the subject will not please shareholders. The discussions will lead to a lower price than the previously announced $10.325 billion. The nation’s largest home-improvement retailer is talking to Bain Capital, the Carlyle Group and Clayton Dubilier and Rice about “material changes to the terms and financing of the transaction.”

In an anticipated (at least at Valueplays) kick in the chops for shareholders, citing the current market for financing, The Depot said that it would cut the price it will pay for its $250 million share tender offer to between $37 and $42 a share. When the buyback was first announced last month, they said they would pay between $39 and $44 a share. The offer was extended to Aug. 31 at 5 p.m. Why are they doing this? Easy, a lower price will lead to fewer shares being tendered. The fewer shares tendered, the lower total cost of the offer.

None of this should be a surprise, hopefully. The Depot has been misfiring for a while now and there is no reason this unprecedented buyback should be any different. If anything it should teach us a lesson about the ambiguous open ended share buyback announcements that do not commit management to anything but do make for a neat little headline. In short, they are meaningless.

Here is the worst part. This was to be the “cash” portion of the share buyback program. Home Depot has not even broached the “debt” part. Let’s not forget, a large portion of this buyback was to be funded by debt and if they can’t get the cash part due to current conditions, anyone want to bet the debt part will not happen anytime soon?

Like almost everything else they have done recently, the huge share repurchase announcement by Home Depot will end up making them look bad.

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Wal-Mart and Facebook: Great idea

When I first read this last night I thought “great idea”. After talking to some parents and kids going to college this fall this morning, I am thinking “really great idea”. Wal-Mart (WMT) really nailed this one.

Here is the skinny. Wal-Mart has teamed op with Facebook to allow college student to team up online to design and stock their room. Now, the initial impulse may be “why would college kids shop at Wal-Mart? They may not, but who does the most back to school shopping? Mom and Dad and they love the idea of saving some bucks at Wal-Mart and having the goods delivered by Wal-Mart to the school (dads really like this idea). Let’s be honest here, does junior really care where most of the staple items in their room come from? No, after all a microwave is a microwave.

The kids can go online a figure out who will buy the computer printer, microwave, TV, DVD player, futon etc. and then go the Walmart.com and purchase the items. In one swoop they save mom and dad a shopping trip, stop the inevitable multiple items in a room problem that always happens and help dad in reducing stuff to pack in the car for the move. Brilliant.

This was just announced so the results this year may be limited but this will gain traction big time in the future. This may be the reason Wal-Mart is one of the few retailers with positive same store sales results this summer?

The parents I spoke to though it was a wonderful idea and the kids thought it was very “cool” because they will eliminate the anxiety of “missing” something they will really need in their room and the Wal-Mart site gives them ideas they may not have thought of..

Kudos to whoever came up with this one..

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More Acquisitions for Sherwin Williams In India Soon

Having said they plan to “aggressively pursue” a “very fragmented” China and India paint and coating market for opportunities to expand, it appears Sherwin Williams (SHW) may be close to announcing another acquisition.

Already planning to build a production facility in India, it appears further acquisitions, namely that of a Bangalore-based company, are progressing. When asked recently whether the company is in talks with Surfa Coats Bangalore Ltd, Sanjiv Batra, CEO, Sherwin Williams India replied “It is all in the air and there is no plan of acquisition of any kind at present.” He then gave the standard denial, “I am not privy to any such plan where we could be engaged in acquisitions.”

But he then continued, “But we are very much on the consolidation mode and the company is thinking on an India-specific business model. We are in the process of engaging external agencies to undertake a marketing survey to do a due diligence of the Indian market. Specific customer tastes and preferences, types of products, price bands and distribution channels will be decided.” Uh huh… so it is the old “I do not know but we are” double talk..

Sherwin Williams now has the Nitco exterior paints portfolio in India but has yet to bring in its huge range of interior decoratives to the country. “We cannot have a business model based on imports and hence may think of a suitable manufacturing facility over the next few months. Moreover, Sherwin would be keen to bring in its expertise state-of-the-art plant and processes in India”, he added. Translation: A factory will be built soon.

How much growth is there in the Indian market? Consider the per capita consumption of paint in India is just 1.2 kg per person against 7-8 kg in Malaysia and around 4 kg in China.

India is a massive market for Sherwin and they seem to be racing to dominate it. The Nitco purchase gave then a toehold there and they have both illustrated buy the statements and their actions to date they plan on doing much more.

Look for something to be announced before Columbus Day..

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"Fast Money" for Thursday

Here are Thursday’s picks

No “first trades” for today…

Wednesday’s Results

Jeff Macke recommended getting long Target (TGT). Open $62.66 Close $65.21 Gain $2.55

Pete Najarian said jump on Juniper (JNPR). Open $33.66 Close $34.39 Gain $.73

Guy Adami preferred Micron (MU).Open $11.59 Close $12.07 Gain $.48

Eric Bolling liked Google (GOOG) Open $516.02 Close $535.78 Gain $19.24

Since my tracking began on 6/21 (1-1 means one up pick and one down pick and no results from my vacation week)

Adami= 12-10 Gain $24.16
Bolling= 9-9 Loss $15.08
John Najarian= 13-3 Gain $15.54
Macke= 19-12 Gain $7.08
Pete Najarian= 7-6 Gain $17.71
Seymore= 2-1 Gain $1.09
Finerman= 2-2 Gain $.88
Gilbert= 1-0 Gain $.29

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Upgrades / Downgrades

Here are the late Wednesday and early Thursday calls.

UPGRADES

Mattel MAT Piper Jaffray Market Perform » Outperform
Interdigital Comm IDCC Piper Jaffray Underperform » Market Perform
LTX Corp LTXX Citigroup Hold » Buy
Xenoport XNPT Citigroup Hold » Buy
NBTY Inc NTY JP Morgan Underweight » Neutral
Methode Electronics METH Robert W. Baird Underperform » Neutral $13
Knology KNOL Robert W. Baird Neutral » Outperform
Centene CNC Jefferies & Co Underperform » Hold
1-800-FLOWERS FLWS JMP Securities Mkt Perform » Mkt Outperform
Watson Wyatt WW Deutsche Securities Hold » Buy
Alcoa AA Friedman Billings Mkt Perform » Outperform
Tenet Healthcare THC Stifel Nicolaus Sell » Hold
PG&E PCG RBC Capital Mkts Sector Perform » Outperform
Best Buy BBY Pali Research Neutral » Buy
AuthenTec AUTH Morgan Keegan Mkt Perform » Outperform
Cross Country CCRN BMO Capital Markets Market Perform » Outperform
Harris HRS Oppenheimer Neutral » Buy
Public Service PEG Matrix Research Hold » Buy
OM Group OMG Matrix Research Strong Sell » Strong Buy
Getty Images GYI Kaufman Bros Sell » Hold
Nuance Communications NUAN Needham & Co Hold » Buy
Golden Star Resources GSS UBS Neutral » Buy
W&T Offshore WTI Calyon Securities Neutral » Add
Noven Pharma NOVN Soleil Sell » Hold

DOWNGRADES

Cablevision CVC Wachovia Outperform » Mkt Perform
Chesapeake Energy CHK Wachovia Outperform » Mkt Perform
Green Mtn Coffee GMCR Piper Jaffray Outperform » Market Perform
Casual Male CMRG JP Morgan Overweight » Neutral
Novo-Nordisk A/S NVO Lehman Brothers Overweight » Equal-weight
Kenexa KNXA JMP Securities Mkt Outperform » Mkt Perform
The Knot KNOT Merriman Curhan Ford Buy » Neutral
Blue Nile NILE RBC Capital Mkts Outperform » Sector Perform
Unica UNCA Ferris Baker Watts Neutral » Sell
NMT Medical NMTI Needham & Co Buy » Hold
Allscripts MDRX Needham & Co Buy » Hold
Heelys HLYS Brean Murray Buy » Hold
Echelon ELON Nollenberger Capital Buy » Neutral
Heelys HLYS Wachovia Outperform » Mkt Perform
AEGON N.V. AEG Bear Stearns Outperform » Peer Perform
CBRE Realty Finance CBF Citigroup Buy » Hold

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Today’s 52 Week Lows

Here are companies that hit a yearly bottom today. No homebuilders and no financials as they all rallied big time again.

XJT Expressjet Holdings Inc
SSP The E.W. Scripps Company
SCVL Shoe Carnival Inc
RURL Rural/Metro Corp
RNWK RealNetworks Inc
NUVO Nuvelo Inc
NOOF New Frontier Media Inc
MYL Mylan Laboratories Inc
MTEX Mannatech Inc
IKN Ikon Office Solutions Inc
HRL Hormel Foods Corporation
HLYS Heelys Inc
ELNK Earthlink Inc
ADSX Applied Digital Solutions
ACTL Actel Corp

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Sprint’s Downward Spiral Continues

Maybe Sprint (S) will recognize soon that those “pain in the ass” people who keep calling them are called customers and the more of them they have, the better their financial performance will be?

Let do the basics first, Sprint Nextel reported its net income nose-dived 95% as its balance sheet was banged up by costs associated with the launch of its WiMax network. For the quarter ended June 30, it said it earned $19 million, or 1 cent per share, versus $370 million, or 10 cents per share, for a similar period a year ago. In the quarter, Sprint added nearly 400,000 subscribers and ended the period with a total subscriber base of 54 million, a 5% increase from a year ago. You know it has been really bad when shown these numbers Stanford Group Co.’s Michael Nelson said “At least they managed to retain customers.”

But, Sprint’s monthly subscriber growth trailed the performance at AT&T (T) and Verizon (VZE). AT&T added more than 900,000 customers who committed to monthly contracts, while Verizon added 1.5 million.

In short, when the best you can say is “at least we did not lose any more customers”, that does not bode well for shareholders down the road. Sprint is falling farther behind what is rapidly becoming a two horse race with Verizon and AT&T slugging it out for the crown. The shame of it really is that Sprint’s problem and current it’s state are totally of their own doing.

I really loved being a Nextel customer, they were different, Sprint, not so much.

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Note To Lampert: Let People Know About Land’s End

Land’s End has great, stylish products at great prices. Why don’t more people know they can go to their local Sears (SHLD) to buy them?

At first I thought they just were not paying attention (or reading my blog) but then I began to look around. Not a single Sears commercial I have seen tells us Land End merchandise is available at stores. When I get my flyer in the newspaper each week, there isn’t anything special telling me that I can buy Lands End clothing at Sears. When I get my Land’s End catalog in the mail, nothing tells me to go to my local Sears in the Solomon Pond Mall to buy Land end clothing. Why the secret?

Land’s End has fantastic stuff and the stores that have it according the the salespeople I spoke to yesterday have a huge advantage over those that do not. If you sit in a Sears that sells Land’s End, there is a constant stream of traffic to the areas of the store that have the Land’s End merchandise. This is probably the reason Lampert announced he plans to double the locations that offer the products this year. But, Eddie, tell people about it!!

I do not want the local Sears that sells Land End clothing to be the best kept shopping secret in the area. I want it to be mobbed.

Some Ideas

– Create a Land’s End commercial and run it in those areas that sell it in the stores with the big tag line “Available at Sears”

– Run Land’s End flyers in Sunday papers that prominently display the Sears logo

– Ever hear of a billboard? They have been around so long because they work…

– Forget Radio

Telling people about Land’s End will drive traffic to your stores and they will by other merchandise there. If nothing else, it will create the “relevance in the shopper’s mind” Lewis spoke of after the latest earnings were released.

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McDonald’s Crushes Estimates

I wonder if executives at Starbucks (SBUX) feel like a deer in the headlights of the freight train that is McDonalds (MCD).

McDonald’s announced today that global comparable sales rose 6.5% in July, well ahead of the 4% estimates. Systemwide sales for all McDonald’s restaurants (this number includes franchises) worldwide increased 11.7% for the month.

McDonald’s Chief Executive Officer Jim Skinner said, “We continue to connect with customers through our menu variety and value, innovative marketing and contemporary restaurants. These combined initiatives have powered our ongoing momentum and delivered our best sustained sales performance in more than 25 years.”

U.S. comparable sales rose 4.3% in July due to the enduring appeal of McDonald’s popular breakfast menu (COFFEE), new food offerings, value and convenient late night hours.

Comparable sales were up 9.9% in Asia/Pacific, Middle East and Africa, driven by ongoing sales strength in Japan, Australia and China. Breakfast (COFFEE) and extended hours contributed to the segment’s July performance.

Year to date system wide sales for McDonald’s are up 11%. No excuses about rising coffee and milk prices, no new recording labels or free t-shirt giveaways, just performance quarter after quarter by focusing on what they do best..

Novel idea…

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Upgrades / Downgrades

Here are the late Tuesday and early Wednesday calls.
>

UPGRADES

Warner Music Group WMG Citigroup Sell » Buy
priceline.com PCLN Susquehanna Financial Neutral » Positive
Natural Resource NRP Friedman Billings Mkt Perform » Outperform
True Religion TRLG Friedman Billings Mkt Perform » Outperform
Computer Sciences CSC Jefferies & Co Underperform » Hold
Nuance Communications NUAN Friedman Billings Mkt Perform » Outperform
Parkway Prop PKY Robert W. Baird Neutral » Outperform
Equity Inns ENN Robert W. Baird Neutral » Outperform
F5 Networks FFIV CE Unterberg Towbin Market Perform » Buy
TETRA Tech TTI CapitalOne southcoast Hold » Buy
Pactiv Corp PTV KeyBanc Capital Mkts / McDonald Hold » Buy
Silgan Holdings SLGN KeyBanc Capital Mkts / McDonald Buy » Aggressive Buy
Greif Brothers GEF KeyBanc Capital Mkts / McDonald Buy » Aggressive Buy
Gap Inc GPS CL King Underperform » Neutral
TeleTech TTEC Janco Partners Accumulate » Buy
Brinker EAT Sanders Morris Harris Neutral » Buy
Halliburton HAL Calyon Securities Add » Buy
Baker Hughes BHI Calyon Securities Neutral » Add
JA Solar JASO Needham & Co Hold » Buy
AC Moore ACMR BB&T Capital Mkts Hold » Buy
Blackbaud BLKB Jefferies & Co Hold » Buy
Martha Stewart MSO Bear Stearns Peer Perform » Outperform

DOWNGRADES

Dick’s Sporting Goods DKS Citigroup Buy » Hold
Heelys HLYS JP Morgan Overweight » Neutral
Alexion Pharm ALXN Credit Suisse Outperform » Neutral
Heelys HLYS CIBC Wrld Mkts Sector Outperform » Sector Perform
MetroPCS PCS Wachovia Outperform » Mkt Perform
Leap Wireless LEAP Wachovia Outperform » Mkt Perform
Heelys HLYS Robert W. Baird Outperform » Neutral
AMN Healthcare Services AHS CL King Strong Buy » Neutral
Mobile Mini MINI Robert W. Baird Outperform » Neutral
F5 Networks FFIV Wedbush Morgan Buy » Hold
Myers Industries MYE KeyBanc Capital Mkts / McDonald Buy » Hold
Ball Corp BLL KeyBanc Capital Mkts / McDonald Aggressive Buy » Buy
U-Store-It YSI Wachovia Mkt Perform » Underperform
NGP Capital Resources NGPC Ferris Baker Watts Buy » Neutral
Luminent Mortgage Capital LUM UBS Neutral » Sell

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"Fast Money" for Wednesday

Here are Tuesday’s results and Wednesday’s picks.

WEDNESDAY’S PICKS

Jeff Macke recommended getting long Target (TGT). Open $62.66

Pete Najarian said jump on Juniper (JNPR). Open $33.66

Guy Adami preferred Micron (MU).Open $11.59

Eric Bolling liked Google (GOOG) Open $516.02

TUESDAY’S RESULTS

Jeff Macke recommended selling Goldman Sachs (GS). Open $187.70 Close $191.25 Loss $3.45

Guy Adami preferred Juniper (JNPR). Open $33.46 Close $33.66 Gain $.20

Tim Seymour liked iShares MSCI Brazil Index (EWZ). $61.10 Close $62.18 Gain $1.08

Eric Bolling did not have a stock pick.

Since my tracking began on 6/21 (1-1 means one up pick and one down pick and no results from my vacation week)

Adami= 11-10 Gain $23.68
Bolling= 8-9 Loss $4.16
John Najarian= 13-3 Gain $15.54
Macke= 18-12 Gain $4.53
Pete Najarian= 6-6 Gain $16.98
Seymore= 2-1 Gain $1.09
Finerman= 2-2 Gain $.88
Gilbert= 1-0 Gain $.29

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Bernanke Nails It.

“The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.” announced the Fed today.

They continued “Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.”

“Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.”

Finally, “Although the downside risks to growth have increased somewhat, the Committee’s predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.”

For those interested in how this statement is similar to everything they have said up until this point, go here

Inflation, inflation and inflation. Until it’s ebbs, rates will not drop. Big Ben has been saying this since he took office repeatedly and hopefully the street gets it soon so we do not have all the speculation before each meeting. It will also be good for stocks as things will level out once they come to the reality that Bernanke is telling them what to expect from the Fed. It seems they may be beginning to get it as today the DOW, S&P and Nasdaq were essentially unchanged.

The Fed will not bail out lenders that made dumb loans and now are in trouble. Bernanke is going to let the market work (as he should) and it is already taking care of things. Bad credit is harder to get, and hopefully credit standards return to what they should be. Both of these are good things long term.

Even if growth slows, that is ok as long as inflation stays contained. Given the choice between slowing growth and high inflation, high inflation should always be fought because it always is a economy killer.

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52 Week Low List

Here are today’s cellar dwellers.. no homebuilders or financials today as they all rallied big time

WON Westwood One Inc
WMG Warner Music Group Corp
TVE Tennessee Valley Auth
TUTR Plato Learning Inc
TGEN Targeted Genetics Corp
TARR Tarragon Corp
SWX Southwest Gas Corporation
NAII Natural Alternatives
NABI Nabi Biopharmaceuticals
MYL Mylan Laboratories Inc
IKN Ikon Office Solutions Inc
DF Dean Foods Co New
DDS Dillard Department St
CC Circuit City Stores
BAMM Books-A-Million Inc