There are some picks in this sector that have excellent valuations and strong earnings growth.
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Three familiar names in retail are fast approaching their day of reckoning.
By Jeremy Bowman
While our banks may be too big to fail, it seems that our superstores are now too big to survive. The news for several familiar big box chains has gone from bad to worse lately as a slow economic recovery, increased competition from online channels, and a failure to adapt to new market conditions have a number of retail chains teetering on the brink of collapse.
The writing's on the wall
After posting an EPS loss of $1.31 in 2011, Barnes & Noble (BKS) recently announced this year's loss would be twice as large as previously expected, between $1.10 and $1.40. The bookseller's Nook e-reader, on which the company's last hopes seem to be riding, sits in a purgatory. Company execs had toyed with the idea of spinning it off entirely before announcing a partnership with TheNew York Times (NYT), in which the Times will subsidize the Nook for readers in exchange for a full year's digital subscription to the newspaper.
The coupon site needs to get its merchant mix right, focusing more on service-based businesses that benefit from daily deals.
While Groupon can become a sustainable business, we believe that its present fundamentals do not support the stock's current market price.
Earnings could be the catalyst that drives bank stocks into high-risk buying zones, but one big bank looks like a good buy on a correction.
By Tom Aspray, MoneyShow.com
The reaction of the overseas markets to the S&P downgrades announced after Friday's close has been very positive with stock index futures actually showing nice gains. This week, of course, is an important one, with many key quarterly earnings reports.
In running a weekly scan of bank stocks, I was interested to note that over half of the 10 bank stocks that are closest to their weekly Starc+ bands have either already reported or are scheduled to report earnings this week.
While the computer giant retained its top position, the competitors are closing in.
Hewlett-Packard (HPQ) continued to lead sales, accounting for 16.3% of worldwide PC shipments in Q4, followed by Lenovo, Dell (DELL), Acer Group and Asus, in that order. However, the giant computer maker took a major hit during the quarter.
As car ownership becomes less attractive, 18- to 34-year-olds are becoming the most lucrative and influential market segment for the car-sharing company.
Zipcar competes with traditional car-rental companies like Hertz Global Holdings (HTZ), Avis Budget Group (CAR) and car-sharing services like Connect by Hertz, Enterprise's WeCar, UHaul's UCarShare and City Car Share.
The profits you earn still count, even if conventional wisdom says the trade was wrong.
There's a tremendous reluctance to ever admitting that anything better is happening in Europe.
It doesn't matter that the borrowing costs for the downgraded Spanish 12- and 18-month paper went for half of the interest rate that it sold at last month. It doesn't matter that you had a darned good trade if you bought last time. It doesn't matter, because all European countries are basket cases and in the end everything must fail.
Admit that's not the conventional wisdom -- it's the only wisdom.
US Airways, TPG Group and Delta would each bring different possibilities to the table.
The week before American Airlines' parent AMR Corp. (AAMRQ) filed for bankruptcy in November, I offered four ways for the struggling legacy airline to pull out of its tailspin. Now that it's taken the first step -- gaining Chapter 11 protection -- let's consider step two: merging with another carrier.
The company says it has new technology to keep food hot and crispy in transit.
The fast-food chain has begun delivering to homes in Washington, D.C., USA Today reports. If the test goes well, the King may expand the service to other cities.
Home delivery has always been a challenge for the food and beverage business. Pizza restaurants obviously have found success, but burgers and fries don't hold up quite as well in transit. They also lose some appeal in the microwave. Finally, the size of a fast-food order isn't normally large enough to justify the expense of delivery.
Goldman downgrades Philip Morris, while CIBC upgrades Potash Corp.
Tuesday's noteworthy upgrades include:
- Charles Schwab (SCHW) upgraded to Buy from Neutral at Goldman
- LyondellBasell (LYB) upgraded to Buy from Neutral at Goldman
- Medtronic (MDT) upgraded to Outperform from Market Perform at Wells Fargo
- Applied Materials (AMAT) upgraded to Outperform from Sector Perform at RBC Capital
- Potash (POT) upgraded to Sector Outperformer from Sector Performer at CIBC
The timing of the Costa Concordia disaster could not be worse, as many cruises are booked at this time of year.
As Bloomberg News notes, about one-third of all cruise vacations are booked between January and March. Moreover, Europe accounts for about 38% of the revenue of Carnival, the corporate parent of Costa Concordia.
For income investors with a long-term horizon, here are 10 favorite dividend-paying blue chips.
Our primary purpose is to assist investors in growing their capital and income base from which to derive cash for their current and future needs.
To that end we believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.
Pioneer Natural Resources shifts away from natural gas as a new oil boom takes hold.
The maker of USB drives and flash memory cards will derive more of its value from them in the future.
According to a report from the research firm IDC, solid-state-storage industry revenue reached $5 billion in 2011, a 105% increase from the $2.4 billion in 2010, and it's expected to expand further in 2012 and beyond. The report estimates worldwide SSD shipments will increase at a compound annual growth rate (CAGR) of 51.5% from 2010 to 2015. SanDisk competes primarily with Samsung and Toshiba in the SSD market.
However, changes in Chinese policy will likely increase capital expenditure and hurt the automaker's margins in the medium to long term.
In comparison, Ford's (F) China sales totaled 519,390 units, about one-fifth of GM's total. GM's China sales also outpaced those of Honda (HMC) and Toyota (TM), as the Japanese automakers were hobbled by the March earthquake in Japan and floods in Thailand.
A Pennsylvania company has surpassed Boston Beer to become No. 1, though it still has only 1.2% of the US market.
Anheuser-Busch, the maker of the No. 1 beer Bud Light? Nope. That's a subsidiary of Anheuser-Busch InBev (BUD), which is based in Belgium.
How about MillerCoors, which makes No. 2 beer Coors Light? Nope. MillerCoors is a joint venture of London's SABMiller (SBMRY) and Molson Coors (TAP), which operates out of Montreal and Denver.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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