Jim Cramer asks, why pay any attention to letters from a manager who lost money in the first quarter?
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Tuesday's sell-off, driven by political turmoil in Europe and weak economic data, knocks out major technical support levels.
Stocks dropped Tuesday as investors belatedly reacted to weekend electoral victories by anti-bailout, left-leaning politicians in Greece and France -- wins that threaten the German-led austerity-focused status quo in the eurozone. The losses would have happened on Monday, but chatter of a potential bailout of the Spanish banking system tempered the selling pressure.
No matter. They happened Tuesday as the leader of a potential far-left Greek coalition government chafed against the German-led austerity-for-bailouts status quo that has plunged Greece into its fifth year of recession and pushed the unemployment rate to a record 22%. Markets are not happy and have taken out critical support levels in the process. As a result, stocks are threatening to return to levels not seen since December.
To counter weak global sales, the company plans to reduce supply-chain inefficiencies and streamline its manufacturing process.
Global panel sales are expected to show a yearly drop in 2012 as leading markets like Germany see a pullback in government subsidies.
Arcos Dorados, the largest McDonald's franchisee in the world, has seen shares fall 45% from August 2011.
For the first quarter, the retailer reported a rise in comparable store sales versus a decline a year ago.
While the company's performance dipped in April with a 2% decline in comparable sales, Gap ended its first-quarter of 2012 on a positive note with a 4% increase in comps and a 6% increase in net sales.
Finding solid income means turning over every rock.
By Marilyn Cohen, Bond Smart Investor
It's always difficult going against the investment grain.
That's exactly what's happening with our recommendation of Buckeye Partners LP (BPL), a master limited partnership.
Stocks falter amid renewed worries about Greece and its potential exit from the eurozone.
McDonald's (MCD) reported weaker than expected same-store sales growth, saying its global 3.3% increase was comprised of U.S. sales up 3.3%, European sale up 3.5%, and Asia/Pacific, Middle East, and Africa sales up 1.1%. Rival Wendy's (WEN) reported earnings that missed expectations, saying its profit margin was hurt by higher commodity costs, especially fresh beef.
Both fast food companies traded lower on their news, with McDonald's shares sliding almost 2% and Wendy's falling over 5%.
This tech aims to be the eBay or Amazon of business-to-business commerce.
Even in today's world of smartphones, tablets and high-speed networks, most business commerce is still conducted manually and with paper invoices and payments.
Ariba (ARBA) is changing all that, aiming to be something of a business-to-business eBay (EBAY) or Amazon (AMZN). The company bills itself as the world's leading business commerce network where ﬁrms of all sizes can connect to their suppliers online.
The social network's coming IPO offers what Buffett's company doesn't -- huge growth potential and value.
Facebook and Berkshire Hathaway (BRK.A). Could there be two more opposite companies? One is run by a fast-moving, young, hard-charging entrepreneur who is filled with ideas that only true visionaries can think of. The other is run by older management that has taken a hands-off view of its assets and talks a bigger game than it has.
I didn't want to write this piece. I think the world of Warren Buffett, and he has made money for hundreds of thousands of people, including many who are now millionaires. It's been a fabulous run. But right now the company has neither growth nor dividend and is, alas, worth more dead than alive. That's right, the breakup value of Berkshire Hathaway well exceeds its current value. Without a breakup, which is clearly not in the cards right now, there's not much hope for appreciation. The stock has underperformed the market drastically, and judging by the talks this weekend, it will continue to do so, because management is content with its current stance.
Vertex is upgraded at several firms, and Electronic Arts is both upgraded and downgraded.
Tuesday's noteworthy upgrades include:
But the burger chain will weather the uncertain economy better than most.
Shares of McDonald's Corp. (MCD) opened lower Tuesday after the world's largest hamburger chain reported April sales figures that were below Wall Street's expectations. But now is not the time to panic.
Sales at restaurants opened at least 13 months rose amid what CEO Jim Skinner called a "challenging global economic environment." Same-store sales gained 3.3% in the U.S., 3.5% in Europe and 1.1% in the Asia/Pacific, the Middle East and Africa. Growth has slowed from earlier this year, when McDonald's reported global comparable sales of 6.7% in January and 7.5% in February.
Arcos Dorados, Latin America's largest restaurant operator, could be months away from a rebound.
By Jim Jubak, MoneyShow.com
I put Arcos Dorados (ARCO), the largest McDonald's (MCD) franchisee in the world and the largest restaurant operator in Latin America, on my watch list on Aug. 16, 2011. Back then I said I loved the stock, but would sure like to buy it a bit lower.
Well, it's down 45% from that August price -- having tumbled 17% on Friday, when its first-quarter earnings missed estimates by 6 cents a share. The company reported earnings of 12 cents a share when analysts were expecting 18 cents. Earnings for the first quarter of 2011 were 15 cents a share.
Is it time to bite into a Latin American Big Mac? (The stock continued to drop Monday and Tuesday.)
Its operations are diversified in both equipment and geography.
By Lawrence Meyers
I'm big on oil. I love oil. Forget all this nonsense about peak oil and all the green-energy freaks. While solar stocks crater and the federal government blows taxpayer money guaranteeing loans to loser companies like Solyndra, oil marches on.
The only stocks almost as good as a direct oil play are oil service companies. I've come across a Bermuda operation known as SeaDrill (SDRL) that is in sound financial shape and pays a mammoth 8.5% dividend.
The No. 1 broadcasting network in the US is seen as big turbo-charged winner.
Media and entertainment giant CBS (CBS) isn't the new whiz kid on the block, but Wall Street raves about it as if it is. A number of near-term catalysts and long-term positives are driving the highly bullish appraisal of the entertainment company.
"CBS's dominance of TV, both on the core broadcast network and at Showtime, can be characterized as juggernaut," says analyst Laura Martin of investment firm Needham, especially as local advertising revenues for TV, radio and outdoor advertising have been "growing faster than national advertising, especially auto and retail."
The entertainment giant is expected to post a profit. Wendy's falls short of Wall Street estimates.
Updated at 8:45 a.m. ET
Walt Disney (DIS) is expected by analysts Tuesday to post fiscal-second-quarter earnings of 55 cents a share on revenue of $9.56 billion. Deutsche Bank has a "buy" rating on the media and entertainment giant and recently raised its price target to $56 from $53. The stock has risen nearly 15% year to date, helped in part by the box-office success of "The Avengers."
Wendy's (WEN) returned to a profit, but barely, reporting first-quarter earnings excluding items of 1 cent a share on revenue of $592.3 million. Analysts were looking for profit of 3 cents a share on sales of $608 million. The company lowered its forecast for the rest of 2012.
Such formations in these leveraged stock funds could foretell a substantial market correction.
By Tom Aspray, MoneyShow.com
The stock market's sell-off on Friday -- thanks to the unimpressive monthly jobs report -- has encouraged investors who are negative on the stock market.
The advance/decline (A/D) lines, which turned slightly positive early last week, are now back to neutral since the A/D numbers have been quite negative.
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[BRIEFING.COM] Equity indices have spent the past 30 minutes in a slow climb towards their opening highs. The S&P 500 now trades about three points below its session high, while the Nasdaq hovers roughly 20 points below its best level of the session.
With the major averages fighting their way back from session lows, eight sectors now trade in the green, while two of the smallest groups-telecom services (-1.5%) and materials (-0.2%)-remain in negative territory.
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