Once you get past the hype, there's little chance for long-term gain with this stock.
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The Street's 'corrective action' made an attractive company that is growing profitability even more appetizing.
By Richard Saintvilus
NEW YORK (TheStreet) -- With earnings results in hand from the likes of Kellogg (K), Kraft Foods (KRFT) and Nestle (NSRGY), I started to think analysts had finally developed more realistic expectations about the packaged food industry. Especially given the applause these companies received for results that were (at best) decent compared to historical norms. But that sentiment didn't last.
In disappointing fashion, the Street's irrationality resumed following J.M. Smucker's (SJM) 8 percent stock decline, which I can describe only as an overreaction to the company's fiscal second-quarter results. Although the stock has since recovered some of those losses, I believe the fact that shares are still off 7 percent from their October high of $112.92 presents an opportunity for investors looking for sweet gains.
Shares that have taken a beating and are most oversold won't necessarily be the first to recover.
Here's the way the bulls could frame this one. The part of the market that has been horrendous of late is the part that's represented by social, mobile and the cloud. The weirdly disliked last quarter from Salesforce.com (CRM), heavy selling in Facebook (FB) after a good quarter, and the over-exuberance surrounding the Twitter (TWTR) IPO is a combination that feels like a hangover has been weighing on this group for several weeks.
These were the first stocks that went down. Now I am sure you will be hearing that these are the first stocks that can take us back up. I don't want to buy into this thesis, because the cohort is too narrow. And it seems a little circumstantial, aided by the bizarre all-day rumor that Facebook was going into the S&P 500 ($SPX). The stock got clocked after hours yesterday, but it didn't quite give up all the gains.
The stock has soared by 76% over the past 2 years and is testing long-term resistance levels.
By Neal Rau
FedEx (FDX) shares have had a great year so far, and the company stands to benefit from the boost in online sales this holiday season.
Shoppers are hunting for bargains and hoping to find them while avoiding crowded shopping malls, so it's easy to understand why so many analysts have optimistic forecasts for online retail sales, but is it too late to buy shares of the company?
Post-earnings release dips have proven to be buying opportunities in FedEx. When the company reported in mid-June, shares initially jumped to $104, but following the report the stock quickly sold off as the revenue miss and poor guidance led to profit taking.
Security researchers have stumbled upon a huge file of stolen user names and passwords.
Daniel Chechik and his fellow researchers at Trustwave SpiderLabs found a cache of user names and passwords for 2 million accounts that gives hackers access to accounts on popular websites like Facebook (FB), Google (GOOG), Yahoo (YHOO), Twitter (TWTR), LinkedIn (LNKD) and others.
This stash of 2 million passwords follows a massive hack on Adobe Systems (ADBE) revealed in October in which a jaw-dropping 38 million user accounts and passwords were nabbed and posted online.
Some companies hit all-time records in November, while others came in below expectations.
Many auto companies have released their U.S. sales figures for November.
Investors closely follow these monthly data releases as an indication of the strength of the macro-economic environment, the entire auto sector and individual companies. Barclays economists cited an overall solid November auto sales data.
Companies that reported Tuesday included Hyundai, Chrysler, Ford (F), General Motors (GM), Volkswagen (VLKAY), Subaru, Tata Motors (TTM)-owned Jaguar Land Rover, Toyota Motors (TM), Honda Motor Co (HMC) and Nissan.
Hyundai: All-time record
Hyundai reported all-time record November sales of 56,005 units, a gain of 5 percent from a year ago. The company's Santa Fe and Accent brands provided the most growth at 43 percent and 42 percent, respectively.
Omnivision was down today on poor earnings. Does a cheaper price tag make it a smart investment?
The numbers came in above analyst expectations, but according to Tech and Telecom Bureau Chief Evan Niu, the real kicker was the lowered expectations. Part of the reason for the lower expectations is the slower smartphone market, as 60% of Omnivision’s sales come from the mobile phone market.
Analysts are looking for strong revenue and profit growth from the grocer.
By Nelson Hem
Kroger (KR), which has announced some management changes since naming its next CEO in September, is scheduled to report its third-quarter results Thursday before the opening bell.
Investors will be looking for news on the progress of the Harris Teeter takeover, expected to close in January, and any hints of future acquisitions. The company has also been studying methods for ordering groceries online, and no doubt will continue to track customer patterns and push its private label brands.
Analysts on average predict that Kroger will say that its revenue for the quarter grew more than 4 percent year-over-year to $22.77 billion. Earnings of $0.53 per share are also in the consensus forecast. That would be up from $0.46 per share in the same period of last year.
For years, Todd Mills pushed Frito-Lay to make taco shells from Doritos. He died from a brain tumor on Thanksgiving.
Todd Mills, 41, never made any money from his multimillion-dollar idea, his wife, Ginger, told USA Today.
Instead, Mills was just happy to have his "cool idea" come true, Ginger told the paper.
Here are some of the numbers behind the effort, plus the current dynamics at 3 industry giants.
By Karen Riccio
Fast-food workers are going on strike Thursday for the second time this year with hopes that the likes of McDonald’s (MCD), KFC, Taco Bell, Pizza Hut (YUM) and Wendy’s (WEN) will raise their pay from an average $9 hourly to $15 an hour.
The united effort in 100 cities is indeed admirable but unlikely to spur changes in this thinly margined industry. The August version certainly didn’t.
This isn’t a matter of whether fast food workers deserve to be paid more, rather its whether the industry at large would or could survive paying employees $15/hour. And, if companies were forced to do so, what would the impact be on jobs and food prices?
People snapped up 600,000 of the iconic cars a year in the 1960s, but fewer than 72,000 have been delivered in 2013. A new version debuts Thursday.
Here's a bit of startling news, especially if you're a Baby Boomer: the Ford (F) Mustang turns 50 next year.
Ford is launching a full-court press campaign for its iconic pony car starting on Thursday, when the new, sixth-generation Mustang is unveiled on ABC's "Good Morning America" program.
There are currently more than 600 Mustang owner clubs around the world -- and as part of the anniversary Ford is inviting people to talk about the car on Facebook (FB) and other social media platforms.
“Everybody has a Mustang story,” Jim Farley, executive vice president of Ford global marketing, sales and service and Lincoln, noted in a press statement, “and the emergence of social media has helped the Mustang community share and connect these personal moments in not just words, but photography and video.”
There's more than the taste of Coke or Pepsi to consider when deciding which brand is the better investment.
The debate has raged for decades now about which is the better tasting cola – Coke or Pepsi.
Pepsi even created an advertising campaign out of it during the 1980s, known as the Pepsi Challenge. But while the argument about which soft drink tastes better will probably never be settled, there may be some agreement about which company has the better stock value.
Forget the gloom-and-doomers. Here's what will drive the ascent in the new year.
By Jamie Dlugosch
It has been a glorious time for investors, at least those that believed in the market.
I’ll admit to having some skepticism heading into 2013. When I offered my Top Stocks to Own in 2013, it was on the heels of my 2012 picks generating 40% for the year. I have enough respect for the market to know how difficult it would be to repeat that performance. So, I hedged by suggesting that I would do only half as well in 2013.
Now, 11 months later, that list of 10 stocks for 2013 stands at an aggregate gain of 57%. It’s enough to make your head spin. More importantly, one can rightly question if such good fortune can continue.
If I was hedging my bets in 2013, I will surely hedge my bets for 2014, right? Not so fast. The animal spirits are stirring and one can easily conjure a scenario for more gains ahead.
People are drinking more of it -- and they're buying the fancy stuff, too. Here are some ways to cash in on the trend.
Yeah, the holidays. The wonderful time of the year when we force ourselves to have conversations with family and artificially act like we care. Other than hearing the occasional entertaining tale about a cousin sleeping with his secretary, most stories are a dud.
But, thank God we have booze to get through it!
Alcohol aficionados like to point out the celebratory mood of many as being the reason for a pop in consumption as we close out the year; and that may very well be. But one thing is for certain: Regardless of the reasons, people love to drink during the holidays, and wine seems to be the beverage of choice.
For example, in the weeks leading up to Christmas last year, wine sales increased by 67 percent. But for wines priced between $15 and $20, wine sales more than doubled. And, for the fine quality bottles priced greater than $20, sales nearly tripled.
Shareholders roar with approval as an activist fund calls for Michael Jeffries' ouster, sending the stock up.
By Kyle Woodley
"Off with his head!" So proclaimed activist fund Engaged Capital on Tuesday, asking for the ouster of Abercrombie & Fitch (ANF) CEO Michael Jeffries.
Investors roared with approval, sending the stock 6% higher in hopes of something that might turn around the struggling retailer. The stock was unchanged Wednesday.
If you already hold Abercrombie shares, you likely agree with the sentiment.
Michael Jeffries, who took over in 1988 to put a spark into Abercrombie & Fitch, has led the teen-focused retailer on a roller-coaster ride ever since ANF hit the markets in September 1996. Abercrombie, which priced at $16, reached as high as $84 and change during its pre-crisis heyday.
If you want to invest long-term in J.C. Penney, just make sure you understand what you're buying.
By Rocco Pendola
NEW YORK (TheStreet) -- While everybody else was tied up fangirling over J.C. Penney's (JCP) increase in comparable store sales, TheDeal's Richard Collings was busy providing much-needed context via Twitter. "$JCP Q4 sales last year dropped by 28.4% from $5.43 billion to $3.88 billion, and comps were down 31.7%. November comps up 10.1%."
For JCP management to put out an announcement that basically says -- "We don't suck quite as bad as we did when we hit rock bottom" -- was, in and of itself, absurd. But the way the company colored its press release further illustrates why long-term investors should read nothing into this so-called news:
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[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
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