BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Earnings highlights: BP, Discover, Corel, Citigroup, WD-40, MSCI and othershttp://www.bloggingstocks.com/2008/07/05/earnings-highlights-bp-discover-corel-citigroup-wd-40-msci/http://www.bloggingstocks.com/2008/07/05/earnings-highlights-bp-discover-corel-citigroup-wd-40-msci/http://www.bloggingstocks.com/2008/07/05/earnings-highlights-bp-discover-corel-citigroup-wd-40-msci/#commentsFiled under: , , , , , , ,

Here are some highlights from this past week's earnings coverage from BloggingStocks:

More highlights from this past week: Apollo Group, Family Dollar, Kroger, Deutsche Bank and others

Also, while Jim Cramer ponders what will signal the bottom, many investors will be looking at next week's earnings results for General Electric (NYSE: GE), the world's largest conglomerate, as a sign of the direction of the global market. And BusinessWeek reminds us that cheap stocks -- even with big names such as Ford Motor Co. (NYSE: F), Sprint Nextel Corp. (NYSE: S), and Northwest Airlines (NYSE: NWA) -- are no bargain if they have no earnings.

Upcoming results to watch for include Alcoa (NYSE: AA), Pepsi Bottling Group (NYSE: PBG), Marriott International (NYSE: MAR), and General Electric (NYSE: GE).

Visit AOL Money & Finance for more earnings coverage.

 

Permalink | Email this | Linking Blogs | Comments

]]>AAAlcoaANDEAndersonsBPCitigroupCorelCRELDFSDiscoverearningsearnings reportsFOFordFortune BrandsGEGeneral ElectricGoldfish CardISLEIsle of CapriJim CramerMARMarriottMorgan StanleyMSMSCIMXBNorthwest AirlinesNWAParexelPBGPepsi BottlingPlant Nutrient GroupPRXLSociete GeneraleSprintSprint NextelTaleoTexas IndustriesTLEOVector CapitalWD-40Trey Thoelcke2008-07-05T14:40:00+00:00Constellation Brands (STZ): Share price defining bullish 'pennant'http://www.bloggingstocks.com/2008/07/03/constellation-brands-stz-share-price-defining-bullish-pennan/http://www.bloggingstocks.com/2008/07/03/constellation-brands-stz-share-price-defining-bullish-pennan/http://www.bloggingstocks.com/2008/07/03/constellation-brands-stz-share-price-defining-bullish-pennan/#commentsFiled under: , , , ,

Constellation Brands (NYSE: STZ) produces and markets more than 250 brands of wine, spirits and beer, in about 150 countries. The Wines division, the largest maker of wine by volume in the world, is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Tsingtao, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.

The company pleased investors earlier in the week, when it reported fiscal Q1 EPS of 34 cents and revenues of $931.8 million. Analysts had been looking for 31 cents and $906.1 million. The highlight of the quarter was a 24% year over year rise in branded wine net sales. Management also guided FY09 EPS to $1.68-$1.76, versus consensus of $1.70.

STZ shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", eight "holds" and one "underperform". The STZ P/E ratio (11.29), PEG ratio (1.00), Price to Sales ratio (1.15), Price to Book ratio (1.55), Price to Cash Flow ratio (12.05) and Price to Free Cash Flow ratio (11.49) compare favorably with industry, sector and S&P 500 averages. Institutions own about 85% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $17.21 and $26.46. A stop-loss of $18.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

 

Permalink | Email this | Linking Blogs | Comments

]]>Constellation BrandsConstellationBrandsfundamental analysisFundamentalAnalysismomentumpennantSTZtechnical analysisTechnicalAnalysisLarry Schutts2008-07-03T10:34:00+00:00Closing Bell: Bulls drive autos, yes autos, to win the dayhttp://www.bloggingstocks.com/2008/07/01/closing-bell-bulls-drive-autos-yes-autos-to-win-the-day/http://www.bloggingstocks.com/2008/07/01/closing-bell-bulls-drive-autos-yes-autos-to-win-the-day/http://www.bloggingstocks.com/2008/07/01/closing-bell-bulls-drive-autos-yes-autos-to-win-the-day/#commentsFiled under: , , ,

The bulls got to lead the first day of the quarter, although we would note that if today was the norm that trading volatility isn't slowing down regardless of the direction. Oil rose again toward session highs on tensions and the usual myriad of reasons we cite for oil rising (yes, it's that routine). Here are today's unofficial closing levels:
  • DJIA 11,381.77 (+31.51)
  • S&P500 1284.89 (+4.89)
  • NASDAQ 2304.97 (+11.99)
  • 10YR T-Note 3.992% (+0.013%)
  • 52-WEEK LOWS
We actually saw many financial sector upgrades from research firms today, which sent many of the corresponding shares higher in what feels like a "for once" statement. We would caution that later in the day an analyst report did note other banks would need more capital (again).

In the land of booze, we had two conflicting reports. For starters, Fortune Brands Inc. (NYSE: FO) shares were down almost 13% at $54.40 to new 52-week lows in the final minutes after the company's earnings warning for 2008. But rival Constellation Brands Inc. (NYSE: STZ) shares were up almost 4% at $20.59 at the end of the day after this wine and spirits maker posted better than expected earnings.

CIT Group Inc. (NYSE: CIT) saw a surge today after the company announced it had sold off its last consumer units to be a pure-play in the commercial finance sector. Shares were up 25% at $8.53 in today's final minutes of trading.

General Motors Corp. (NYSE: GM) was the key winner today and you could almost point to this being the key news that drove an oversold market much higher today. Even with -18% sales, this was far "less bad" than expected. Shares were up 3% at $11.92 in today's final minutes with some 81 million shares trading hands.

SanDisk Corp. (NASDAQ: SNDK) was the strange mover today as the company's stock was down big on unusual call option activity. Shares were down over 5.7% at $17.75 in today's final minutes.

 

Permalink | Email this | Linking Blogs | Comments

]]>alcoholconstellation brandsConstellationBrandsfinancialfortune brandsFortuneBrandssandiskJon Ogg2008-07-01T16:23:00+00:00Option Update; Fortune Brands volatility Flat into lower financial outlookhttp://www.bloggingstocks.com/2008/07/01/option-update-fortune-brands-volatility-flat-into-lower-financi/http://www.bloggingstocks.com/2008/07/01/option-update-fortune-brands-volatility-flat-into-lower-financi/http://www.bloggingstocks.com/2008/07/01/option-update-fortune-brands-volatility-flat-into-lower-financi/#commentsFiled under: ,

Fortune Brands (NYSE:FO) is recently trading at $58.16 in pre-open trading, below its close of $62.41. FO announced a reduction to its Q2, 2008 earnings outlook on challenging consumer environment. Wachovia has a valuation range of $55 to $60. FO over all option implied volatility of 25 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

 

Permalink | Email this | Linking Blogs | Comments

]]>option implied volatilityOptionImpliedVolatilityPaul Foster2008-07-01T10:26:00+00:00Is Absolut worth $8.9 billion? Absolutely!http://www.bloggingstocks.com/2008/03/31/is-absolut-worth-8-9-billion-absolutely/http://www.bloggingstocks.com/2008/03/31/is-absolut-worth-8-9-billion-absolutely/http://www.bloggingstocks.com/2008/03/31/is-absolut-worth-8-9-billion-absolutely/#commentsFiled under: ,

When the Swedish government put Vin & Spirit, parent company of Absolut Vodka, up for sale more than a year ago, industry experts estimated it would fetch over $4 billion.

Now, Pernod Ricard, a French liquor company, is buying the brand for $8.89 billion. Absolut is the third largest spirit brand in the world, and the sale attracted the interest of many of the industry's top players: Fortune Brands (NYSE: FO), Diageo and Bacardi.

What makes the high valuation afforded to Absolut so interesting is that Pernod Ricard is paying nearly $9 billion for a brand that only really came to prominence in its current form in the 1980s.

With its racy and provocative ads (like the one on this post), Absolut was one of the first mainstream brands to aggressively target the gay community. Back when the sale effort was first announced, I opined that targeting gay media outlets was a decision that paid off, as this large, and often affluent population group, now counts Absolut as its vodka of choice. Perhaps a company like Budweiser, which has been widely criticized for spending money on ads (such as the Super Bowl) that have done little for the brand, could learn something from Absolut's edgy marketing.

The M&A field is in a rough patch right now, struggling from a tough debt market and general economic malaise. But apparently, strategic buyers are still able to pay up for strong brands.

 

Read | Permalink | Email this | Linking Blogs | Comments

]]>Absolutalcoholfofortune brandsFortuneBrandsinthenewspernod ricardPernodRicardvodkaZac Bissonnette2008-03-31T09:31:00+00:00Cramer on BloggingStocks: This market is rough http://www.bloggingstocks.com/2008/03/31/cramer-on-bloggingstocks-this-market-is-rough/http://www.bloggingstocks.com/2008/03/31/cramer-on-bloggingstocks-this-market-is-rough/http://www.bloggingstocks.com/2008/03/31/cramer-on-bloggingstocks-this-market-is-rough/#commentsFiled under: , , , ,

TheStreet.com's Jim Cramer says the bad news is relentless, and people are discouraged.

Each day seems to be filled with so much disappointment. The American Axle (NYSE: AXL) (Cramer's Take) strike, for example, has now pretty much shut down General Motors (NYSE: GM) (Cramer's Take), and I see no signs that AXL can defeat the union. Given how heavily dependent the Midwest region is on GM for steady income, this one can only exacerbate the terrible real estate market and hence the terrible mortgage delinquencies that pockmark Indiana, Michigan and Ohio.

Or the loss of the Absolut brand for Fortune Brands (NYSE: FO) (Cramer's Take). Fortune needed to win this one because its home improvement business is falling off a cliff. This was a vain attempt to diversify a division that has always helped the company in tough times.

Or the Vytorin studies, nothing new, as we knew that parts of the medical community doesn't approve of the drug, but the analysts had held out hope and we have and are going to see repeated downgrades of the stock. I am telling subscribers of Action Alerts PLUS that Schering (NYSE: SGP) (Cramer's Take) stock, at $16 -- where it is surely headed -- has now lost more than half its value, which reflects the pulling of the drug. As 50% of the company's earnings are reportedly from the drug, perhaps that's a fitting decline. I think SGP is worth a lot more because of the purchase of Oraganon. I have been very wrong. My solace: So many others have been, too.

Or the newspaper advertising business, with declines of historic proportions. It is such a bad business and is so glaring in its decline that, with the demise of private equity, you can't own any stock in the group.

It goes on and on.

Relentless.

And I understand how people are leaving this market in droves. It's just too darned hard. I understand that $100 billion in outflows -- the number that the Financial Times says have been pulled out -- has gone to the sidelines even though the sidelines make almost nothing. It's just that bad of a market.

I do believe that there is a level where it is going to bottom and it's that level we hit several times this year. But it is the least fun, least opportunistic, least attractive moment in years. Only a portfolio with massive and fundable dividends has even a chance to not lose you that money.

What a miserable time. Maybe this is what this bottom feels like. Just a maximum amount of pain.

RELATED LINKS:

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Schering-Plough.

 

Permalink | Email this | Linking Blogs | Comments

]]>American AxleAmericanAxleaxlfeaturedfofortune brandsFortuneBrandsgeneral motorsGeneralMotorsgmjim cramerJimCramerschering-ploughsgpJim Cramer2008-03-31T09:20:00+00:00Cramer on BloggingStocks: Someone will lead the inevitable turnaround http://www.bloggingstocks.com/2008/02/21/cramer-on-bloggingstocks-someone-will-lead-the-inevitable-turna/http://www.bloggingstocks.com/2008/02/21/cramer-on-bloggingstocks-someone-will-lead-the-inevitable-turna/http://www.bloggingstocks.com/2008/02/21/cramer-on-bloggingstocks-someone-will-lead-the-inevitable-turna/#commentsFiled under: , , , , ,

TheStreet.com's Jim Cramer says these are the stocks that you should watch.

Some stocks have just been totally given up on, as if nothing good can ever happen to them. Check out Masco (NYSE: MAS) (Cramer's Take) , for example. Masco's a great company, always has been -- a dominant supplier to the housing industry, both remodel and original. This company, which MAKES money, is selling at almost a 5% yield and no one cares.

Or how about Fortune Brands (NYSE: FO) (Cramer's Take)? It has a terrific housing component -- dominant player -- and one of the best spirits businesses. We found out from Diageo (NYSE: DEO) recently that they have a great business in spirits, and the company may be on the verge of getting Absolut, a fantastic brand. The stock trades at an amazingly low multiple. Or consider Black & Decker (NYSE: BDK) (Cramer's Take) , one the great innovators with a classically pro-shareholder bias.

These companies are making good money in the worst environment imaginable. They have decent balance sheets. When this period ends, they will be dominant players, taking share from everyone.

But the next quarter will be atrocious for all of them, and the comparisons don't get good until the end of the year. If you think that we are going to be out of this mess by year-end or even by next year, you would consider Masco with its great yield. You would have to realize that BDK, if it goes down more, could be something worth just $3 billion and change to a European. If Fortune gets Absolut, the amount of business that is non-housing goes up dramatically.

Of course, no one wants to hear any positives on these stocks. But it is important to point out that when the Fed cuts and cuts you have winners here.

Random musings: I am aghast that people hate Inverness Medical (NYSE: IMA) (Cramer's Take) here, which is a quintessential long-term growth diagnostic stock that has simply made too many acquisitions and needs to rationalize which it will. But the momentum guys are showing NO MERCY! I like stocks that are cut in half. I sold some much higher for Action Alerts PLUS, and I want to buy that stock back (as I told subscribers), but, alas, I am restricted. I am a making a bunch of moves that could be interesting to you here. ...

--------------------------------------------------------------------------------
RELATED LINKS:
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long IMA.

 

Permalink | Email this | Linking Blogs | Comments

]]>bdkblack and deckerBlackAndDeckerdeodiageofeaturedfoturne brandsFoturneBrandsimajim cramerJimCramermasmascoJim Cramer2008-02-21T12:29:00+00:00Analysts see BHP revising offer for Rio Tintohttp://www.bloggingstocks.com/2007/11/08/analysts-see-bhp-revising-offer-for-rio-tinto/http://www.bloggingstocks.com/2007/11/08/analysts-see-bhp-revising-offer-for-rio-tinto/http://www.bloggingstocks.com/2007/11/08/analysts-see-bhp-revising-offer-for-rio-tinto/#commentsFiled under: , , , , , , , , ,

Mining giant BHP Billiton (NYSE: BHP)'s $110 billion offer for Rio Tinto (NYSE: RTP) has been rejected by the latter, with Rio indicating that the all-share offer was too low.

Further, talk on Wall Street Thursday tended to side with BHP making a better offer for Rio, amid chatter that Rio may seek an alternate offer from Brazilian rival, Vale.

BHP's shares fell $2.70 to $77.65 Thursday morning, while Rio's surged $94.70 to $452.20.

Analysts had projected that a BHP/Rio deal could have become the largest acquisition in history. Thursday's offer, however, was not high enough for Rio's directors apparently.

Is Rio worth more?

"It significantly undervalues Rio Tinto and its prospects,'' Rio said in a statement. "The boards have unanimously rejected the proposal as not being in the best interests of shareholders.''

Still, one analyst was prepared to predict an eventual BHP/Rio union, with each company's impressive size driving any potential deal:

"If the name of the game at the moment is resources in the ground, then why [delay] with junior or medium-size miners when you can go to the top?'' Stephen Pope, chief global market strategist at Cantor Fitzgerald Europe in London, told Bloomberg News. "This deal will happen, it's just a question of time.''

Sector Analysis: BHP's overture underscores two mining trends: the secular, ongoing, strong demand for mining products and the drive to create companies with greater economies of scale to meet rising mining demand. Even as housing / residential construction conditions continue to soften in the United States, the construction and infrastructure building boom in emerging markets, particularly in Asia and Latin America, continues. As was the case with the Freeport (NYSE: FCX) / Phelps Dodge merger, the potential BHP / Rio deal is part of a trend to create companies with deeper resource capabilities to meet the likely continued strong demand for mining products for highways, schools, utilities systems, transit systems, facilities, offices, dams, etc. in the developing world in the years ahead.

 

Read | Permalink | Email this | Linking Blogs | Comments

]]>AsiaBHPbhp billitonBhpBillitonBrazilChinaemerging marketsFCXFreeportGDPinfrastructureinthenewsLatin AmericaminingRio TintoRioTintoRTPValeJoseph Lazzaro2007-11-08T12:15:00+00:00Newell Rubbermaid (NWL): Products you knowhttp://www.bloggingstocks.com/2007/09/21/newell-rubbermaid-nwl-products-you-know/http://www.bloggingstocks.com/2007/09/21/newell-rubbermaid-nwl-products-you-know/http://www.bloggingstocks.com/2007/09/21/newell-rubbermaid-nwl-products-you-know/#commentsFiled under: , , , ,

Getting and keeping brand recognition is a critical part of any business endeavor. There is an outfit in Atlanta that ranks among the best in achieving those goals. The company's product list is one of the best recognized anywhere.

Newell Rubbermaid (NYSE: NWL) manufactures and distributes a wide variety of consumer and commercial products. Offerings include a long list of well-known home and office brands, including Levolor blinds, Lenox hand tools, Sharpie pens, Rolodex record holders, Amerock cabinet hardware, DYMO label makers, Graco children's products and Rubbermaid items. Competitors include Avery Dennison (NYSE: AVY) and Fortune Brands (NYSE: FO).

The firm pleased investors earlier in the week, when it raised Q3 guidance. Management now sees EPS of 48-50 cents (45 cent consensus) and revenue growth near the high end of the previously estimated 5-7% range. Strength in the Home & Family and Tools & Hardware segments were cited in support of the adjustment. The company also boosted Y07 EPS guidance to $1.74-1.78 ($1.76 consensus).

The stock popped on the news and then began defining a bullish "flag" consolidation pattern. Stocks often leave flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys," three "buys" and three "holds." Recent price targets are in the mid-$30s. The NWL P/E ratio (19.63), Price to Sales ratio (1.29), Price to Book ratio (3.96), Price to Cash Flow ratio (13.64), Price to Free Cash Flow ratio (23.81) and Return on Equity (22.02%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Through the past 12 months, it has traded between $24.22 and $32.19. A stop-loss of $24.95 looks good here. Note that the firm is expected to report Q3 results in late October.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

 

Permalink | Email this | Linking Blogs | Comments

]]>flagfundamental analysisFundamentalAnalysismomentumNewell RubbermaidNewellRubbermaidNWLtechnical analysisTechnicalAnalysisLarry Schutts2007-09-21T14:55:00+00:00Analyst initiations: JAVA, FTI, TPTX and EXELhttp://www.bloggingstocks.com/2007/09/14/analyst-initiations-java-fti-tptx-and-exel/http://www.bloggingstocks.com/2007/09/14/analyst-initiations-java-fti-tptx-and-exel/http://www.bloggingstocks.com/2007/09/14/analyst-initiations-java-fti-tptx-and-exel/#commentsFiled under: , , , ,

MOST NOTEWORTHY: Sun Microsystems (JAVA), FMC Technologies (FTI), TorreyPines (TPTX), and Exelixis (EXEL) were today's noteworthy initiations:
  • Sun Microsystems Inc (NASDAQ: JAVA) was initiated with a Market Perform at BMO Capital, which views the shares' risk/reward as favorable around $5.
  • FMC Technologies Inc (NYSE: FTI) was initiated with a Buy by Jefferies, which believes strong subsea fundamentals will drive strong earnings by the company.
  • TorreyPines Therapeutics Inc (NASDAQ: TPTX) was initiated with a Strong Buy at JMP Securities, which said PhIIb data in Q4 on the company's tezampanel drug could increase investor conviction on the first in-class drug.
  • Exelixis Inc (NASDAQ: EXEL) was initiated with a Buy by Lazard, which believes Exelixis has a promising pipeline.
OTHER INITIATIONS:

 

Permalink | Email this | Linking Blogs | Comments

]]>ESLREvergreen SolarEvergreenSolarEXELExelixisFMC TechFmcTechFOFortune BrandsFortuneBrandsFTIJAVAResearch in MotionResearchInMotionRIMRIMMSun MicrosystemsSunMicrosystemsTorreyPinesTPTXEric Buscemi2007-09-14T10:35:00+00:00Constellation Brands: A mighty big beverage portfoliohttp://www.bloggingstocks.com/2007/07/11/constellation-brands-a-mighty-big-beverage-portfolio/http://www.bloggingstocks.com/2007/07/11/constellation-brands-a-mighty-big-beverage-portfolio/http://www.bloggingstocks.com/2007/07/11/constellation-brands-a-mighty-big-beverage-portfolio/#commentsFiled under: , , , ,

If your Final Jeopardy question read "What U.S. state is home to the biggest wine producer in the world?", would you answer California? You'd be wrong. It's New York! In fact, the Fairport, N.Y. firm in question sells more than 250 brands of flavored ethanol.

Constellation Brands (NYSE: STZ) produces and markets wine, spirits and beer. The Wines division is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers in some 150 countries. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.

The company pleased investors late last month, when it reported solid Q1 results and guided FY08 EPS in-line with the average Street estimate. The CEO announced an acquisition strategy focused on European expansion, premium spirits and niche wines. Banc of America Securities subsequently reiterated its "buy" rating on the issue and boosted its price target to $27. The news kept STZ shares cycling through a positive 10-week trading channel. The price is currently moving near the base of that channel, where oversold CCI, Stochastic and Momentum technical parameters suggest the potential for a rise back toward the top.

Altogether, brokers recommend the issue with two "strong buys," one "buy," eleven "holds" and one "sell." Analysts see a 22% growth rate through the next year. The STZ P/E ratio (20.60), Price to Sales ratio (1.02), Price to Book ratio (1.73) and Price to Cash Flow ratio (11.93) compare favorably with industry, sector and S&P 500 averages. Institutions own about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $18.83 and $29.17. A stop-loss of $20.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the vice president of Stockwinners.com.

 

Permalink | Email this | Linking Blogs | Comments

]]>alcoholbeverage importersBeverageImportersbeveragesConstellation BrandsConstellationBrandsfundamental analysisFundamentalAnalysisspiritsSTZtechnical analysisTechnicalAnalysistrading channelTradingChannelwine importersWineImportersLarry Schutts2007-07-11T14:33:00+00:00Analyst initiations 7-11-07: BAY, DHI, FO and JNJhttp://www.bloggingstocks.com/2007/07/11/analyst-initiations-7-11-07-bay-dhi-fo-jnj/http://www.bloggingstocks.com/2007/07/11/analyst-initiations-7-11-07-bay-dhi-fo-jnj/http://www.bloggingstocks.com/2007/07/11/analyst-initiations-7-11-07-bay-dhi-fo-jnj/#commentsFiled under: , , , , ,

MOST NOTEWORTHY: HouseValues, Inc (SOLD), Fortune Brands (FO), D.R. Horton (DHI), Dicks Sporting Goods (DKS) and USG Corp (USG) were some of today's noteworthy initiations:
  • Cantor believes HouseValues (NASDAQ: SOLD) may be a lagging indicator of the broader real estate market. As such, it may see its customer and revenue bases contract further in the face of still-sluggish housing data and started shares with a Hold rating.
  • Pali Research initiated Fortune Brands (NYSE: FO) with a Neutral rating based on valuation.
  • The firm also believes D.R. Horton's (NYSE: DHI) risk to book value and profitability is higher than some of the competition since the company has taken significantly less land charges. Shares were initiated with a Hold rating.
  • Dick's Sporting Goods (NYSE: DKS) was initiated with an Outperform at Baird and is positive on Dick's store expansion, market leadership, margin opportunities and fundamentals.
  • USG (NYSE: USG) was initiated with a Sell rating at Banc of America, believing wallboard price and profit declines will be worse than expected due to lower housing starts and less spending on remodeling. Their analysis suggests another leg down for housing...
OTHER INITIATIONS:
  • Merrill Lynch initiated Bayer AG (NYSE: BAY) with a Buy rating and UBS initiated QLogic (NASDAQ: QLGC) with a Neutral rating.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

 

Permalink | Email this | Linking Blogs | Comments

]]>analystbaybayerdhidicksdksfofortune brandsFortuneBrandsgolfgolfsmithhortonhousevaluesinitiationjambajmbajnjjohnsonqlgcqlogicratingsoldtheflyonthewall.comusgKevin Shult2007-07-11T11:07:00+00:00Newspaper wrap-up 6-13-07: Apple embeds iTunes in Bebohttp://www.bloggingstocks.com/2007/06/13/newspaper-wrap-up-6-13-07-apple-embeds-itunes-in-bebo/http://www.bloggingstocks.com/2007/06/13/newspaper-wrap-up-6-13-07-apple-embeds-itunes-in-bebo/http://www.bloggingstocks.com/2007/06/13/newspaper-wrap-up-6-13-07-apple-embeds-itunes-in-bebo/#commentsFiled under: , , , , ,

MAJOR PAPERS:
OTHER PAPERS:

 

Permalink | Email this | Linking Blogs | Comments

]]>aaplabnabn amroAbnAmroapplebarclaysbarneysbcsbebocallawaycenceridiandubaielyfidelityfinancial timesFinancialTimesfnffofortune brandsFortuneBrandsftgolfjnyjonesla timesLaTimeslos angeles timesLosAngelesTimesnew york postnew york timesnewspaperNewYorkPostNewYorkTimesny postny timesNyPostNyTimespaperperiodicalwall street journalWallStreetJournalwsjEric Buscemi2007-06-13T09:15:00+00:00Serious Money: Buffett should buy these five companieshttp://www.bloggingstocks.com/2007/05/09/serious-money-buffett-should-buy-these-5-companies/http://www.bloggingstocks.com/2007/05/09/serious-money-buffett-should-buy-these-5-companies/http://www.bloggingstocks.com/2007/05/09/serious-money-buffett-should-buy-these-5-companies/#commentsFiled under: , , , , ,

Warren Buffett, Chairman and CEO of Berkshire Hathaway (NYSE: BRK.A) has been doing some big time cogitating about the future. He plans to donate the lion's share of his wealth to the Gates Foundation. Recently, he said he was looking for an understudy with the right investing temperament and wisdom to lead Berkshire. There are reports that his office has been swamped with resumes. Some are reaching to the bottom of the barrel in suggesting that I seek an audience. Perhaps they were stimulated by another Serious Money: Freight Railroads - BNI, CSX, UNP & more story which I posted the day before Berkshire Hathaway announced it had become BNI's largest shareholder.

So with this and other prescient commentary I recently posted, I was asked to present some ideas on what acquisitions Berkshire might consider given Buffett's eagerness to find a good deal. It is likely that Buffett will bring several people on board to play the role of Chief Investment Officer for different segments of the company. Nobody in their right mind believes that Buffett is replaceable.

In any event here are some of my ideas on the subject. All of my ideas follow a pattern favored by Buffett including low P/E, P/S, P/B, and P/CF's, as well as a high return on equity and low debt.

Allstate Corp (NYSE: ALL) I have already posted Hot tips for Warren: Allstate & Mercury Insurance and made it known that I think this would be a good fit and a good value for acquisition. Allstate sells insurance through its own agents in local storefronts throughout the country. It could be combined with H&R Block (NYSE: HNR) in one storefront. Berkshire owns 9% of H&R. Tax consulting and insurance can be integrated and would create a synergy improving the bottom line of both companies. The closure of storefronts, the recapturing of the Allstate dividend, the increased sales and the currently low price of Allstate shares make this my favorite Berkshire play. Allstate's closing price yesterday was $63.28. It is capitalized at $38 billion, approximating the mountain of cash Buffett is sitting on. The 14% net profit margins would more than double the return Berkshire Hathaway is getting on the cash and the insurance premium float from Allstate being invested by Buffet would increase profits at the company as well. This is the deal Buffett should make, and soon.

  • Price/Earnings (TTM) 7.79
  • Price/Sales (TTM) 1.11
  • Price/Book (MRQ) 1.87
  • Price/Cash Flow (TTM) 7.89

Pulte Homes (NYSE: PHM) has suffered along with the rest of the homebuilders as sales of condominiums and single family residences has tanked. Pulte has reported a major reduction in earnings and would not even hazard a guess as to the outlook for the next few quarters. I say perfect, buy it now Warren. This company is one of the premier homebuilders in the United States. It has major interests in the southeast region of the county and is heavily into senior living developments. That is a growing business and will continue to grow. Berkshire Hathaway already owns manufactured home assets and these together could play a major role in changing how housing is designed, built, and managed as a resource. Pulte's closing price yesterday was $26.15 and it is capitalized at $6.6 billion meaning that Berkshire Hathaway could acquire it with its lunch money.

  • Price/Earnings (TTM) 21.02
  • Price/Sales (TTM) 0.49
  • Price/Book (MRQ) 1.14
  • Price/Cash Flow (TTM) 10.51

Fortune Brands (NYSE: FO) Buffett should buy this company just for the name alone. It seems to me that the conglomerate he has assembled over the last 40 years is the real fortune brands and he has made a greater fortune with his companies than anybody else including this one. Fortune, like Berkshire Hathaway, is a holding company. According to AOL Money and Finance, it is a leading US producer and distributor of distilled spirits (Jim Beam, DeKuyper, Knob Creek, Maker's Mark) and golf equipment (Titleist, Cobra, FootJoy, Pinnacle).

However, Fortune's largest segment is home products and hardware, where its holdings include Moen faucets, MasterBrand cabinets, Master Lock padlocks, and Therma-Tru doors. In 2005 it acquired former Allied Domecq brands Sauza, Courvoisier, Canadian Club, and Clos du Bois. The home products tie into Berkshire's existing businesses and my suggestion that it acquire Pulte. The golf equipment does as well given the leisure activities of seniors and how this might be integrated into new community development. Perhaps a new business -- Berkshire Hathaway 'Pro-Shops'...and it could put an H & R Block / Allstate office adjacent to it...now I'm getting really creative. The alcohol business is booming internationally and will continue to do so, given there are very few players in the market. Fortune's closing price yesterday was $80.37 and it is capitalized at $12.3 billion. This is a good fit and a good use of capital.

  • Price/Earnings (TTM)15.94
  • Price/Sales (TTM) 1.48
  • Price/Book (MRQ) 2.55
  • Price/Cash Flow (TTM) 11.76

Emerson Electric (NYSE: EMR) is a company that has reported strong growth for decades, is well managed, has worldwide manufacturing and distribution plants and makes the kind of products that are used every day at home and in industry, including a host of electrical, electromechanical, and electronic products. Emerson's closing price yesterday was $46.43 and it is capitalized at $37.1 billion, not small change. But if Berkshire Hathaway wants to make a major acquisition, this stable company would be a great buy with low risk and high returns plus the 2.25% yield would go straight to the bottom line of Berkshire which does not pay a dividend.

  • Price/Earnings (TTM) 20.73
  • Price/Sales (TTM) 1.92
  • Price/Book (MRQ) 3.76
  • Price/Cash Flow (TTM) 14.63

Nucor Corp (NYSR: NUE) is one of the leading steel producers in the country and every billionaire should own a steel company. Just look at the Mittel family of India. They are major players on the world market having taken over Arcelor and it is not likely they will stop there. They own steel companies everywhere including the United States. This is an industry that has undergone major disruption and change over the last twenty years. It has enjoyed stronger-than-average pricing power over the last few years, but the share prices still reflect fears of a downturn. Nucor's closing price yesterday was $65.93 and it is capitalized at $19.8 billion. I say strike while the iron is hot and acquire Nucor before a bidding war takes place.

  • Price/Earnings (TTM)11.31
  • Price/Sales (TTM) 1.33
  • Price/Book (MRQ) 3.91
  • Price/Cash Flow (TTM) 8.69

These companies are listed in the order of my preference for Mr. Buffett's consideration. Warren, if you want to discuss any of my ideas over lunch, I am available to meet at any time.

Disclosure: I own BRK.B shares and all of the other companies are on my watchlist.

Those of you who are new to Bloggingstocks.com can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.

Sheldon Liber is the CEO of a small private investment company and the vice president

 

Permalink | Email this | Linking Blogs | Comments

]]>2007 stock picks2007StockPicksAllstate Corp (ALL)AllstateCorp(all)Berkshire Hathaway (BRK.A)BerkshireHathaway(brk.a)Fortune Brands (FO)FortuneBrands(fo)great companiesGreatCompaniesH and R Block (HRB)HAndRBlock(hrb)Nucor Corp (NUE)NucorCorp(nue)Serious MoneySeriousMoneySheldon LiberSheldonLiberstock pickingStockPickingSheldon Liber2007-05-09T16:30:00+00:00Cramer pans housing and goes for weak dollar tradehttp://www.bloggingstocks.com/2007/04/10/cramers-pans-housing-and-goes-for-weak-dollar-trade/http://www.bloggingstocks.com/2007/04/10/cramers-pans-housing-and-goes-for-weak-dollar-trade/http://www.bloggingstocks.com/2007/04/10/cramers-pans-housing-and-goes-for-weak-dollar-trade/#commentsFiled under: , , , ,

On today's STOP TRADING! on CNBC, Cramer said that American Standard Companies, Inc. (NYSE: ASD) is a stealth housing play where it is splitting itself up at the bottom. Cramer thinks this one is good, but he wants to avoid the other housing stocks and other homebuilders. This is one that will benefit from remodeling as it is big into bathrooms. Cramer thinks American Standard sells very well at Lowe's Companies. Inc. (NYSE: LOW) and LOW hasn't gone back to recent stock lows. He thinks this home weakness is still weighing on Fortune Brands, Inc. (NYSE: FO).

If the weak dollar persists, Cramer said the best play for this is The Coca-Cola Company (NYSE: KO). He thinks the numbers ahead will drive the stock up to $55 or even potentially $60.

Cramer also noted that MasterCard Inc. (NYSE: MA) is signaling that its problems are behind it. He thinks it is cheap and it is one of his favorite names right now.

 

Permalink | Email this | Linking Blogs | Comments

]]>ASDFOKOLOWMAJon Ogg2007-04-10T15:36:00+00:00Analyst downgrades 1-19-07: Fortune Brands lowered to Neutralhttp://www.bloggingstocks.com/2007/01/19/analyst-downgrades-1-19-07-fortune-brands-lowered-to-neutral/http://www.bloggingstocks.com/2007/01/19/analyst-downgrades-1-19-07-fortune-brands-lowered-to-neutral/http://www.bloggingstocks.com/2007/01/19/analyst-downgrades-1-19-07-fortune-brands-lowered-to-neutral/#commentsFiled under: , , , ,

MOST NOTEWORTHY: Fortune Brands (FO) and Altria Group (MO) were today's more notable downgrades:
  • JP Morgan downgraded Fortune Brands (NYSE: FO) to Neutral from Overweight on valuation and the weak outlook for home and hardware sales.
  • Altria Group (NYSE: MO) was downgraded by Deutsche Bank to Hold from Buy with a $95 target, citing its valuation, ex-Kraft, is more in line with its tobacco peers.

OTHER DOWNGRADES:
  • CheckPoint Software Tech (NASDAQ: CHKP) was downgraded to Underperform from Market Perform with a $19 target at Freedman Billings, with expectations that 2007 will be a difficult transition year.
  • Matrix USA downgraded shares of Boyd Gaming (NYSE: BYD) to Hold from Buy on valuation.
  • Goldman Sachs downgraded TRW Automotive Hldg (NYSE: TRW) to Sell from Neutral and was added to the America's Sell List; they believe rising costs, a less favorable product mix and commercial steering business headwinds will weigh on revenue growth and margins in 2007.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

 

Permalink | Email this | Linking Blogs | Comments

]]>AltriaanalystBoydbydCheckpointchkpdowngradefoFortune BrandsFortuneBrandsmoratingstheflyonthewall.comtrwTRW AutomotiveTrwAutomotiveKevin Shult2007-01-19T11:21:00+00:00Cramer likes Graco, Lowe's, Target; but ring register on Fortune Brandshttp://www.bloggingstocks.com/2006/11/14/cramer-likes-graco-lowes-target-but-ring-register-on-fortune/http://www.bloggingstocks.com/2006/11/14/cramer-likes-graco-lowes-target-but-ring-register-on-fortune/http://www.bloggingstocks.com/2006/11/14/cramer-likes-graco-lowes-target-but-ring-register-on-fortune/#commentsFiled under: , , , , , ,

On today's STOP TRADING segment on CNBC, Jim Cramer reviewed a couple of ideas to make money.

On Graco Inc. (NYSE:GGG), Cramer thinks the CEO is great. He said if it wasn't for The Home Depot, Inc. (NYSE:HD) the stock would be up. The CEO reportedly said the worst drop in housing was behind. Cramer said the Home Depot is its own problem and its own worst enemy. Cramer said he thinks Lowe's Companies, Inc. (NYSE:LOW) will be able to climb from here.

Cramer said Target Corporation (NYSE:TGT) can go higher as well.

He said American Standard Companies Inc. (NYSE:ASD) and Fortune Brands, Inc. (NYSE:FO) have bottomed.

Cramer also said the Big 3 even after meeting with Bush are just a trying situation and Toyota Motor Corporation (ADR) (NYSE:TM) is the play there.

Cramer said to take the profit on Express Scripts, Inc. (NASDAQ:ESRX), so ring the register according to him.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

 

Permalink | Email this | Linking Blogs | Comments

]]>Jon Ogg2006-11-14T15:10:00+00:00Daily Options Update: Clear Channel rallies, Red Hat sinkshttp://www.bloggingstocks.com/2006/10/26/daily-options-update/http://www.bloggingstocks.com/2006/10/26/daily-options-update/http://www.bloggingstocks.com/2006/10/26/daily-options-update/#commentsFiled under: , , , , , , ,

U.S. stocks rallied today as traders and investors reacted to positive earnings and outlooks from Exxon Mobil (XOM), Aetna (AET), Sprint Nextel (S) and Comcast (CMCSK). The S&P 500 was up .50%, NASDAQ 100 rallied .96%, The Dow was up .24% and the 10 year bond rate declined to 4.72%. The CBOE VIX sold off .10 to 10.56.

Clear Channel Communications(CCU) rallied $3.13 to $35.48 after announcing the hiring of Goldman Sachs as its investment bank to help it evaluate strategic alternatives. CCU will report EPS on 10/30. CCU call option volume of 29,144 contracts compared to put volume of 4,156 contracts. CCU option implied volatility of 24 is below yesterday's level of 33 suggesting decreasing price fluctuations.

Red Hat (RHAT), a leading open source and Linux operating system provider, declined 24% to $14.83 after ORCL announced support for Red Hat Linux. RHAT
call option volume of 73,780 contracts compared to put volume of 60,451 contracts. RHAT November option implied volatility rose to 55, above its 26-week average of 47, suggesting larger price risks.

Fortune Brands (FO) is expected to report EPS of $1.33 on 10/27. FO November 80 calls have traded 337 times on transaction volume of 9,770 contracts, above its open interest of 654 contracts, suggesting increased hedging.

Microsoft Corporation (NASDAQ: MSFT) 1st quarter earnings rose 11% to $3.48 billion, r .35 cents a share. MSFT options were active on call volume of 210,869 contracts and 118,018 puts. MSFT November option implied volatility of 21 is near its 26-week average, suggesting non-directional price risks.

Options Update is provided by Paul Foster and TheFlyOnTheWall.com (subscription required).

 

Permalink | Email this | Linking Blogs | Comments

]]>CBOEClear ChannelClearChannelComcastMicrosoftOptionsSprintVIXAmey Stone2006-10-26T19:21:00+00:00Analyst initiations 10-23-06: AMD and Fortune Brands initiatedhttp://www.bloggingstocks.com/2006/10/23/analyst-initiations-10-23-06-amd-and-fortune-brands-initiated/http://www.bloggingstocks.com/2006/10/23/analyst-initiations-10-23-06-amd-and-fortune-brands-initiated/http://www.bloggingstocks.com/2006/10/23/analyst-initiations-10-23-06-amd-and-fortune-brands-initiated/#commentsFiled under: , ,

MOST NOTEWORTHY: Fortune Brands (FO) and Advanced Micro Devices (AMD) top today's small list of initiations.

  • Fortune Brands, Inc. (NYSE:FO) was initiated with a Neutral rating and $86 target. The firm expects the weak housing market to put pressure on the shares.
  • Morgan Stanley resumed coverage on Advanced Micro Devices, Inc. (NYSE:AMD) with a Equal Weight, citing risk to the ATI Technologies (ATYT) acquisition.

OTHER INITIATIONS:

  • Morgan Stanley initiated Toll Brothers, Inc. (NYSE:TOL) with an Overweight rating and $23 target. The firm expects the high-end single-family market to outperform the group.
  • Benihana, Inc. (NASDAQ:BNHNA) was initiated with an Outperform at Ryan Beck. The firm is positive on Benihana's accelerated remodeling program and potential growth from the company's RA Sushi concept.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

 

Permalink | Email this | Linking Blogs | Comments

]]>advanced micro devicesAdvancedMicroDevicesamdfofortune brandsFortuneBrandsMelly Alazraki2006-10-23T11:27:00+00:00