BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Fannie and Freddie and executive pay, oh my]]>http://www.bloggingstocks.com/2008/07/23/fannie-and-freddie-and-executive-pay-oh-my/http://www.bloggingstocks.com/2008/07/23/fannie-and-freddie-and-executive-pay-oh-my/http://www.bloggingstocks.com/2008/07/23/fannie-and-freddie-and-executive-pay-oh-my/#commentsFiled under: , ,

Both Republican and Democratic members of Congress agree that Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) may need a taxpayer-funded bailout. Amounts of the bailout have ranged as high as $25 billion.

While this is a whopping big bucket of money, it pales in comparison to the $217 billion worth of non-agency securities that have fallen in value and the $1.5 trillion in debt downgrades in 2Q alone. In order to mitigate objections from taxpayers opposed to using public monies to bail out a quasi-private industry, those bulwarks of fiscal responsibility in Congress are beginning to draw up plans to curb executive compensation for those who will help Fannie and Freddie crawl out of the hole.

In 2007, Fannie Mae President Daniel Mudd earned a $2.2 million bonus on top of his $10 million salary. Members of Congress want to know why the executives who ran the ship aground were rewarded handsomely for doing so. Some members of Congress have suggested that previous executive bonuses should be given back to the companies. I bet some taxpayers might want to apply this same reasoning to Congressional salaries and perks.

Fannie and Freddie and executive pay, oh my originally appeared on BloggingStocks on Wed, 23 Jul 2008 17:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutDaniel MuddDanielMuddexecutive compensationexecutive payExecutiveCompensationExecutivePayFannie MaeFannieMaeFNMFREFreddie MacFreddieMacU.S. CongressU.s.CongressWed, 23 Jul 2008 17:10:00 EST<![CDATA[A&P (GAP) grocery stores on path to profitability]]>http://www.bloggingstocks.com/2008/07/23/aandp-gap-grocery-stores-on-path-to-profitability/http://www.bloggingstocks.com/2008/07/23/aandp-gap-grocery-stores-on-path-to-profitability/http://www.bloggingstocks.com/2008/07/23/aandp-gap-grocery-stores-on-path-to-profitability/#commentsFiled under: , ,

The Great Atlantic & Pacific Tea Company (NYSE: GAP), better known as SuperFresh and Pathmark grocery stores, is in the midst of a remodel and turnaround that seems to be working.

It is, however, a bit difficult to parse an earnings release that states "our annualized run-rate of synergies is approximately $100 million." Good thing that the "format driven capital investment program" continues to improve. Clearly, CEO Eric Claus wants investors to believe these factoids are positive and meaningful pieces of information.

In more concrete terms, same store sales are up 3% and the company is remodeling many of its locations in the New York-New Jersey area in order to expand its market share. Sales increased $1.2 billion to $2.9 billion, so the trend is in the right direction. Quarterly adjusted income from operations was $16 million, compared to an $8 million adjusted loss from operations one year ago. 1Q loss per share was $0.51 compared to $1.54 loss per share one year ago.

Given the steep rise in food prices, forecast to worsen into the winter, A&P is well positioned to attract value-driven grocery shoppers. The stock has recently fallen under $18, though it is inching back up today.

A&P (GAP) grocery stores on path to profitability originally appeared on BloggingStocks on Wed, 23 Jul 2008 13:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>APGAPgrocery chainsgrocery storesGroceryChainsGroceryStoresPathmark gorcery storesPathmarkGorceryStoresSuperFresh grocery storesSuperfreshGroceryStoresThe Great Atlantic Pacific Tea CompanyTheGreatAtlanticPacificTeaCompanyWed, 23 Jul 2008 13:48:00 EST<![CDATA[Rockwell Collins (COL) flying high]]>http://www.bloggingstocks.com/2008/07/18/rockwell-collins-col-flying-high/http://www.bloggingstocks.com/2008/07/18/rockwell-collins-col-flying-high/http://www.bloggingstocks.com/2008/07/18/rockwell-collins-col-flying-high/#commentsFiled under: ,

Rockwell Collins Incorporated (NYSE: COL) provides flight deck avionics, aircraft electronics, and aviation simulation equipment for commercial, government and regional aircraft. The company is currently flying high. Recently released 3Q earnings indicate net income increased 19% to $174 million. EPS gained 24% to $1.07, beating Wall Street estimates by $0.05. 3Q sales increased 7% to $1.2 billion, which translated into a $12 million increase in operating cash flow to $310 million.

While many economic sectors are facing a great deal of uncertainty, Rockwell Collins has locked in a number of government and commercial contracts that will translate into steady revenue growth well into the future. Defense spending increases annually and Rockwell Collins was recently awarded contracts by BOC to equip 47 new Airbus A320s, as well as another contract from Bombardier to supply avionics for its C series commercial aircraft.

Both the Commercial Systems and the Government Systems segments increased sales 7-8%. The company spent $81 million to buy back 1.4 million shares, with another quarter billion authorized for share repurchases. In view of all the contracts in the pipeline, the company has revised and improved its FY2008 guidance. FY2008 total sales are forecast at $4.75 billion, with FY EPS in the $4.05-$4.10 range. The stock is currently trading under $47, near its 52- week low of $44.53.

Rockwell Collins (COL) flying high originally appeared on BloggingStocks on Fri, 18 Jul 2008 14:47:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Airbus A320AirbusA320aircraftavaitionavionicsCOLdefense spendingDefenseSpendingflight deckFlightDeckinthenewsRockwell Collins IncorporatedRockwellCollinsIncorporatedFri, 18 Jul 2008 14:47:00 EST<![CDATA[Self-storage sector not glamorous, just profitable]]>http://www.bloggingstocks.com/2008/07/18/self-storage-sector-not-glamorous-just-profitable/http://www.bloggingstocks.com/2008/07/18/self-storage-sector-not-glamorous-just-profitable/http://www.bloggingstocks.com/2008/07/18/self-storage-sector-not-glamorous-just-profitable/#commentsFiled under: ,

Despite large and growing declines in both the commercial and residential real estate markets, one part of the real estate sector is having a good year. Self-storage companies, which are often structured as REITs, are posting some good numbers. Face it, American's have way too much stuff and not enough space to store it at home. Americans move, go away to college, get divorced, join the military and/or lose their homes in foreclosure with alarming regularity. All of these life events require short-term storage. According to a survey in Investment News, self-storage REITs have generated total returns of 20% or more YTD. This compares very favorably with the 5% or more drop in the S&P 500 stock index YTD.

A snapshot of the sector shows four of the largest self-storage companies on the upswing. Sovran Storage Incorporated (NYSE: SSS) at $40.88 is up 1.95% YTD. Most other self-storage REITs have more impressive returns. Extra Space Storage (NYSE: EXR) at $15.11, up 6.90% YTD. Public Storage Incorporated (NYSE: PSA) at $83.55 is one of the most expensive self-storage stocks. It is up 7.59% YTD. The bargain in the self-storage sector is U Store It Trust (NYSE: YSI). At $11.54 the stock is up a whopping 28.82% YTD. Investors should call around to self-storage companies in their areas. Chances are they will not find many vacant units.

Self-storage sector not glamorous, just profitable originally appeared on BloggingStocks on Fri, 18 Jul 2008 13:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>EXRExtra Spave StorageExtraSpaveStorageinthenewsPSAPublic Storage IncorporatedPublicStorageIncorporatedreal estateRealEstateREITsself-storageSovran Storage IncorporatedSovranStorageIncorporatedSSSU Store It TrustUStoreItTrustYSIFri, 18 Jul 2008 13:33:00 EST<![CDATA[U.S. Supreme Court says: OK for individual investors to sue 401(k) plan administrators]]>http://www.bloggingstocks.com/2008/07/17/u-s-supreme-court-says-ok-for-individual-investors-to-sue-401/http://www.bloggingstocks.com/2008/07/17/u-s-supreme-court-says-ok-for-individual-investors-to-sue-401/http://www.bloggingstocks.com/2008/07/17/u-s-supreme-court-says-ok-for-individual-investors-to-sue-401/#commentsFiled under:

The U.S. Supreme Court in LaRue vs. DeWolff, Boberg & Associates has just given individual investors the right to sue under ERISA for breach of fiduciary duty to recover individual losses to an individual 401(k) or other defined contribution plans. Previous Supreme Court decisions had pertained to defined benefits plans. Prior to LaRue v. DeWolff, individuals were limited to participating in class action suits for relief for the plan as a whole. Now, individual investors can sue to be "made whole" as individuals, and do not have to settle for equitable relief among all plan investors.

Mr. LaRue had sued his former employer DeWolff, Boberg & Associates for breach of fiduciary duty when it failed to follow his instructions to move some of his 401(k) money to different investments. His initial suit was to recoup a personal loss to be paid into his individual account. Having been denied by the Fourth Circuit Court under two different statutes of ERISA sec. 502, Mr. LaRue appealed to the U.S. Supreme Court, thus doing an untold number of individual investors a great service.

U.S. Supreme Court says: OK for individual investors to sue 401(k) plan administrators originally appeared on BloggingStocks on Thu, 17 Jul 2008 15:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>401kdefined contribution planDefinedContributionPlanERISAindividual investorsIndividualInvestorsLaRue v. DewolffLarueV.Dewolfflaw suitsLawSuitsU.S. Supreme CourtU.s.SupremeCourtThu, 17 Jul 2008 15:44:00 EST<![CDATA[Fastenal (FAST) nails earnings]]>http://www.bloggingstocks.com/2008/07/17/fastenal-fast-nails-earnings/http://www.bloggingstocks.com/2008/07/17/fastenal-fast-nails-earnings/http://www.bloggingstocks.com/2008/07/17/fastenal-fast-nails-earnings/#commentsFiled under: , ,

Sectors of the economy may be coming apart at the seams, but Fastenal Company (NASDAQ: FAST), distributor of nuts, bolts and all kinds of tools, is holding together nicely. Fastenal reported strong numbers for 2Q 2008. Net sales increased 16% to $604,000. (Hey, I never said this stock would topple Home Depot). More importantly, net earnings increased 26% to $76,000 and diluted EPS increased 25% to $0.51. As part of its "Pathway to Profit Initiative," Fastenal opened 112 new stores in Q1 & Q2, bringing total store locations to over 2100.

Like most other businesses, Fastenal has been hit by both the slowdown in the construction industry and the rapid rise in fuel costs. The company is reorganizing its freight service to take advantage of fuel and cost savings by using its own trucking network rather than external service providers. Additionally, the company established a centralized call center to manage accounts receivable company-wide. As a result, accounts receivable increased 14% at the same time the company reduced its bad debt expense. Fastenal repurchased 200,000 shares with plans to buy back more. The company also declared a quarterly dividend of $0.27 per share. YTD the stock has gained 14% and currently trades around $46. This one is worth a look.

Fastenal (FAST) nails earnings originally appeared on BloggingStocks on Thu, 17 Jul 2008 13:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>boltscall centerCallCenterearningsFASTFastenal CompanyFastenalCompanyfastenershardwareinthenewsnutstoolsThu, 17 Jul 2008 13:48:00 EST<![CDATA[Grainger (GWW) gets the job done]]>http://www.bloggingstocks.com/2008/07/17/grainger-gww-gets-the-job-done/http://www.bloggingstocks.com/2008/07/17/grainger-gww-gets-the-job-done/http://www.bloggingstocks.com/2008/07/17/grainger-gww-gets-the-job-done/#commentsFiled under: , , ,

Grainger (NYSE: GWW) supplies all manner of facilities maintenance products to all types of businesses. The company just posted great 2Q numbers. Sales gained 10% to $1.8 billion. Net earnings increased 8% to $113 million and EPS turned out a healthy $1.43. Grainger posted these good numbers and gained market share in a slowing economy. Nice work.

Grainger operates in the U.S., Mexico and is beginning to establish a footprint in China. The company is expanding both its product line and its market reach in each of these markets. Sales in the U.S. grew 9% and the company opened 6 new full service locations. Sales in Mexico grew 25% and the company opened one new full service location. China sales doubled to $2 million from the company's one location, with big expansion plans for the future. Grainger has added another 100,000 products to its catalog and repurchased 800,000 shares of stock for $75 million. CEO James Ryan forecasts FY2008 EPS in the $5.80-$6.10 range, not a bad return on a stock that currently trades right around $86.

Grainger (GWW) gets the job done originally appeared on BloggingStocks on Thu, 17 Jul 2008 13:23:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>GWWhardwareindustrial suppliesIndustrialSuppliesinthenewsJames RyanJamesRyanW.W. Grainger IncorporatedW.w.GraingerIncorporatedThu, 17 Jul 2008 13:23:00 EST<![CDATA[Eaton (ETN) stock drops 8% on good news]]>http://www.bloggingstocks.com/2008/07/17/eaton-etn-stock-drops-8-on-good-news/http://www.bloggingstocks.com/2008/07/17/eaton-etn-stock-drops-8-on-good-news/http://www.bloggingstocks.com/2008/07/17/eaton-etn-stock-drops-8-on-good-news/#commentsFiled under: , , , ,

Diversified industrial manufacturer Eaton Corporation (NYSE: ETN) posted some great numbers for 2Q 2008. Investors responded by pushing the stock down 8% as a result. Go figure. With the exception of its automotive segment, which saw a modest 2% decline in sales, all other divisions posted double digit sales increases with demand remaining strong going forward. 2Q sales increased 32%, net income increased 35%, while net income on a per share basis increased 24% The company posted these results despite the fact that oil prices increased 40% during the quarter.

The FAA recently awarded a $40 million contract for power quality equipment. The company's Hydraulic Launch Assist technology performed very well in tests on trash trucks. It reduced fuel costs by 25% and significantly reduced brake service costs. With diesel prices showing no signs of decline, demand for this technology will be very strong when it becomes commercially available in late 2008. CEO Alexander Cutter forecasts FY sales growth to be 3% in the U.S. and 5% internationally. FY operating EPS are forecast to grow 12-16%, resulting in EPS of $7.70-$8.00. At this rate of return, the stock is currently bargain-priced around $73.00

Eaton (ETN) stock drops 8% on good news originally appeared on BloggingStocks on Thu, 17 Jul 2008 12:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aerospaceAlexander CutlerAlexanderCutlerEaton CorporationEatonCorporationETNFAAhydraulicsindustrialsinthenewspower trainPowerTrainThu, 17 Jul 2008 12:17:00 EST<![CDATA[Cintas (CTAS) jumps on good earnings]]>http://www.bloggingstocks.com/2008/07/17/cintas-ctas-jumps-on-good-earnings/http://www.bloggingstocks.com/2008/07/17/cintas-ctas-jumps-on-good-earnings/http://www.bloggingstocks.com/2008/07/17/cintas-ctas-jumps-on-good-earnings/#commentsFiled under: , ,

Both 4Q and FY 2008 numbers from Cintas Corporation (NASDAQ: CTAS) were uniformly good. For the first time in company history, Cintas booked more than $1 billion in revenue for a single quarter. FY2008 revenue totaled $3.9 billion, up 6%. 4Q net income hit $90 million, $355 million for the year. Diluted EPS totaled $0.58 for 4Q and $2.15 for the year. Cintas had its best quarter for the year while the economy slowed the most. Good job.

All operating divisions recorded profits for FY2008, and the company completed its 39th straight year of growth in revenues and earnings. Cintas generated free cash flow at 9% of revenue or $354 million, which it used in part to repurchase $191 million worth of company stock.

Cintas manufactures uniforms, company apparel, restroom supplies and commercial fire and safety products. Nothing fancy, but all items necessary to run any type of business. The stock currently trades at $26.77, near its 52- week low of $25.15.

Cintas (CTAS) jumps on good earnings originally appeared on BloggingStocks on Thu, 17 Jul 2008 12:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>apparel logoApparelLogoCintas CorporationCintasCorporationCTASinthenewsuniformsThu, 17 Jul 2008 12:02:00 EST<![CDATA[Helen of Troy (HELE) launches great earnings but ...]]>http://www.bloggingstocks.com/2008/07/11/helen-of-troy-hele-launches-great-earnings-but/http://www.bloggingstocks.com/2008/07/11/helen-of-troy-hele-launches-great-earnings-but/http://www.bloggingstocks.com/2008/07/11/helen-of-troy-hele-launches-great-earnings-but/#commentsFiled under: ,

Household and personal care products manufacturer Helen of Troy Limited (NASDAQ: HELE) posted record 1Q sales and earnings up 29%. Great news, until one reads these earnings exclude "significant items" such as $7.6 million in write-down of intangible assets, and $2.5 million bad debt charge for a customer bankruptcy. Take $10+ million off the top and the results, thought still favorable, are considerably less impressive. The company did set 1Q sales, up 3.4% overall, driven primarily by a 15% increase in sales in the Household Products segment which includes OXO and Dr. Scholl's brands. Sales in the Personal Care segment, which includes Vidal Sassoon, Brut and Revlon, were flat. Operating income and gross margins are headed up. Administrative expenses and inventory levels are headed down, all good news.

If all the "significant items" are out in the open and have been taken out of earnings, Helen of Troy is worth some due diligence. The stock currently trades under $19, up from its 52-week low of $14.56.

Helen of Troy (HELE) launches great earnings but ... originally appeared on BloggingStocks on Fri, 11 Jul 2008 14:12:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BrutDr. SchollsDr.Schollshair care productsHairCareProductsHELEHelen of Troy Limited IncorporatedHelenOfTroyLimitedIncorporatedOXOpersonal care productsPersonalCareProductsRevlonVidal SassoonVidalSassoonFri, 11 Jul 2008 14:12:00 EST<![CDATA[Rocky Mountain Chocolate Factory (RMCF) provides some sweet relief]]>http://www.bloggingstocks.com/2008/07/11/rocky-mountain-chocolate-factory-rmcf-provides-some-sweet-reli/http://www.bloggingstocks.com/2008/07/11/rocky-mountain-chocolate-factory-rmcf-provides-some-sweet-reli/http://www.bloggingstocks.com/2008/07/11/rocky-mountain-chocolate-factory-rmcf-provides-some-sweet-reli/#commentsFiled under: , , ,

While big ticket luxury may be a bit of a stretch for many investors right now, small luxuries are still within reach. Rocky Mountain Chocolate Factory (NASDAQ: RMCF) stands ready to provide sweet relief from bitter financial news. RMCF manufactures an extensive line of premium chocolates, fudge and other confectionary marvels. It also franchises stores to spread temptation far and wide. The company reported 1Q 2009 record sales of $26.6 million, up 2.4%. Net earnings declined by slightly more. The end results is flat diluted EPS of $0.16.

RMCF continues to expand its franchise model. The company opened 8 new franchise locations in 1Q alone, and plans to open a total of 35-40 new franchise locations in FY2009. Franchise, royalty and marketing fees helped counteract the negative effects of sharp cost increases for chocolate and sugar. The company has no current plans to increase franchise fees given the tough times in the retail sector. Nor will the company provide FY2009 guidance, citing macroeconomic uncertainties. The company did declare its 20th straight quarterly dividend of $0.10. The stock trades right around $9, down 50% from its 52-week high of $18.04. RMCF may be a viable stock for bargain investors. No matter the state of the economy, chocolate is NOT a discretionary purchase for some people. Just make certain that due diligence includes extensive sampling of the entire product line. Expand your portfolio and your waistline at the same time.

Rocky Mountain Chocolate Factory (RMCF) provides some sweet relief originally appeared on BloggingStocks on Fri, 11 Jul 2008 13:37:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chocolatesconfectionsdessertsfranchisefudgeluxuryRocky Mountain Chocolate FactoryRockyMountainChocolateFactorysugarsweetsFri, 11 Jul 2008 13:37:00 EST<![CDATA[Wolverine (WWW) stepping out]]>http://www.bloggingstocks.com/2008/07/11/wolverine-www-stepping-out/http://www.bloggingstocks.com/2008/07/11/wolverine-www-stepping-out/http://www.bloggingstocks.com/2008/07/11/wolverine-www-stepping-out/#commentsFiled under: ,

Wolverine World Wide, Inc. (NYSE: WWW), famous for its work boots, posted its 24th straight quarter of record profits. Revenue for 2Q2008 totaled $267.4 million, up 6.8%. EPS increased 17.9% to $0.79. More importantly, sales revenues increased in all global regions. The company's order backlog increased, indicating demand for its products outstrips supply. Inventory levels decreased 7% due to company efforts to control expenses and improve operational efficiencies. Accounts receivables increased 13%, so more money is moving through the pipeline. The company repurchased 200,000 shares of stock. Operating margins were squeezed a bit given the recent run up in raw material costs.

CEO Blake Krueger forecasts a growth rate in the 7.6-11.8% range, truly impressive when so many other retailers are struggling. This growth rate would translate into revenues in the $1.23-$1.26 billion range and EPS in the $1.83-$1.90 range. Inexplicably, the stock dropped 11.5% to $23.50 on the earnings release, despite the fact that 2Q EPS beat estimates by $0.02. The stock began to climb back a bit yesterday to close at $23.33, down from its 52-week high of $31.21, but it is dropping again this morning.

Wolverine (WWW) stepping out originally appeared on BloggingStocks on Fri, 11 Jul 2008 11:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Blake KruegerBlakeKruegerfootwearretailshoesWolverine World Wide IncorporatedWolverineWorldWideIncorporatedwork bootsWorkBootsWWWFri, 11 Jul 2008 11:15:00 EST<![CDATA[Lady Luck deserts gambling stocks]]>http://www.bloggingstocks.com/2008/07/05/lady-luck-deserts-gambling-stocks/http://www.bloggingstocks.com/2008/07/05/lady-luck-deserts-gambling-stocks/http://www.bloggingstocks.com/2008/07/05/lady-luck-deserts-gambling-stocks/#commentsFiled under: ,

There is something rotten in Denmark, to quote from Hamlet, Act I, as well as in Las Vegas, Louisiana, Mississippi, Colorado, Iowa, and Florida. Gambling havens, once thought recession proof, are in trouble. Customer numbers are down, as are gambling, gift shop, hotel, and restaurant revenues. Casinos in Las Vegas have been hard hit, according to a recent article in the Wall Street Journal, because of billions of dollars of debt to finance overambitious expansion plans. Tropicana Entertainment filed for Chapter 11 in May, defaulting on $2.67 billion in bank and bond debt. But smaller casinos are also feeling the pain.

Isle of Capri Casinos Inc. (NASDAQ: ISLE) recently reported 4Q and FY2008 results. Snake eyes. Investors know they are not in for good news when the CEO spends the first few paragraphs of an earnings release discussing what a "transformational period" the last year has been. That's corporate-speak for "money losing," beginning with a $78.7 million write down in the value of some of the company's international assets and ending with a $51.3 million loss from continuing operations in 4Q 2008. All told, Isle of Capri Casinos lost $96.9 million from continuing operations in FY2008.The company cited increased competition in riverboat gambling in Biloxi, a smoking ban in casinos in Colorado, and a flood in Natchez as reasons for the lackluster performance. The company admits it needs to renovate 1,200 of its hotel rooms in order to attract customers back to the slots and tables.

The stock is currently trading at $4.23, near its 52-week low of $3.97.

Lady Luck deserts gambling stocks originally appeared on BloggingStocks on Sat, 05 Jul 2008 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>casinosgamblinggambling stocksgames of chancegaminginthenewsISLEIsle of CapriIsle of Capri Casinos IncorporatedLas Vegasriverboat gamblingTropicana EntertainmentSat, 05 Jul 2008 11:40:00 EST<![CDATA[Corel earnings drop 60%]]>http://www.bloggingstocks.com/2008/07/05/corel-earnings-drop-60/http://www.bloggingstocks.com/2008/07/05/corel-earnings-drop-60/http://www.bloggingstocks.com/2008/07/05/corel-earnings-drop-60/#commentsFiled under: ,

Anybody who does much in the way of graphics or design knows Corel Corp. (NASDAQ: CREL) and its products -- Corel DRAW and Corel Paint Shop. No question they are good products. But that does not mask the fact that 2Q 2008 numbers do paint paint a pretty picture. Interim CEO Kris Hagerman states that "Corel performed well in the second quarter." Given that revenues were up less than 3% and GAAP net income, another word for earnings, dropped 60% to $930,000, what would qualify in Hagerman's book as a bad quarter? It isn't necessarily how much a company makes that is most important, it is how much of that amount it gets to keep.

EBITDA is heading south and Hagerman admits the company needs to pursue "opportunities in faster growing markets." The company issued 3Q 2008 guidance of GAAP earnings per share of zero to $0.06, in line with 2Q results. Time for senior management to paint a prettier picture.

Shares closed Thursday at $10.75. The stock is up about 4% year to date.

See also: What's going on with the Corel buyout?

Corel earnings drop 60% originally appeared on BloggingStocks on Sat, 05 Jul 2008 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CorelCorel CorporationCRELearningsgraphics softwareKris HagermansoftwareSat, 05 Jul 2008 08:40:00 EST<![CDATA[WD-40 (WDFC) greases its own wheels]]>http://www.bloggingstocks.com/2008/07/03/wd-40-wdfc-greases-its-own-wheels/http://www.bloggingstocks.com/2008/07/03/wd-40-wdfc-greases-its-own-wheels/http://www.bloggingstocks.com/2008/07/03/wd-40-wdfc-greases-its-own-wheels/#commentsFiled under: , , ,

The lubricant with thousands of uses, WD-40 is found in just about every toolbox in the nation. WD-40 Company (NASDAQ: WDFC) released 3Q 2008 results that show solid sales figure increases in all divisions around the globe. Net sales for the quarter increased 5.8% to $82 million. Net income was up by the same amount to $8 million. EPS increased 10% to $0.49. The story is much the same for YTD figures. WD-40 posted these numbers despite a tremendous run-up in the prices of raw materials. Senior management is being conservative and has, therefore, reduced FY2008 guidance. The company now expects net sales to increase 4-8% to $320-$332 million. Net income will be in the $30 to $31 million range and EPS in the $1.78-$1.85 range.

The company is rolling out its Smart Straw initiative globally. No more looking for the stupid little red straw that always got separated from the spray can. Now all aerosol cans of WD-40 have a built-in applicator. What a relief.

WD-40 also owns 3-in1 oil, Lava soap, X-14 and Carpet Fresh. None of these products are environmentally friendly by any stretch of the imagination. To counteract the perception that its products are not environmentally sensitive, WD-40 has launched a new product line, Spot Shot, comprised of an environmentally safe carpet stain remover and pet odor remover.

The stock is trading at just over $27, near its 52-week low of $26.50, and pays $0.25 in quarterly dividend.

WD-40 (WDFC) greases its own wheels originally appeared on BloggingStocks on Thu, 03 Jul 2008 13:22:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Carpet freshCarpetFreshhand cleansersHandCleansersinthenewslubricantsWD-40 CompanyWd-40CompanyWDFCX-14Thu, 03 Jul 2008 13:22:00 EST<![CDATA[Booze a defensive play in a bear market]]>http://www.bloggingstocks.com/2008/07/03/booze-a-defensive-play-in-a-bear-market/http://www.bloggingstocks.com/2008/07/03/booze-a-defensive-play-in-a-bear-market/http://www.bloggingstocks.com/2008/07/03/booze-a-defensive-play-in-a-bear-market/#commentsFiled under: ,

Bad news in the market means good news for Constellation Brands Inc. (NYSE: STZ) which manufactures and markets spirits, wines and beers under a variety of labels. Brands include Robert Mondavi wines, Corona beer and Black Velvet whiskey. When the economy is good, folks drink to celebrate. When the economy starts to tank, people drink to commiserate. Constellation benefits either way. The company just released 1Q 2009 results. Profits jumped 50%! Diluted (no pun intended) EPS was $0.20, up from $0.13 in 1Q 2008. Consoldiated net sales increased 3%, with wine sales up 15% and spirit sales, led by vodka, up 9%. Constellation offloaded several lower profit margin lines including Almaden and Inglenook wines, and added higher product margin line wines Clos du Bois and Wild Horse.

Investors, whether drinkers or tea-totalers, like the numbers. The stock is up over 5% in the last two days, closing on July 2nd at $21.22

Booze a defensive play in a bear market originally appeared on BloggingStocks on Thu, 03 Jul 2008 12:21:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alcoholbeerBlack velvet whiskeyBlackVelvetWhiskeyboozeConstellation Brands IncoropratedConstellationBrandsIncoropratedCorona beerCoronaBeerinthenewsliquorRobert Mondavi wineRobertMondaviWinespiritsSTZvodkaThu, 03 Jul 2008 12:21:00 EST<![CDATA[General Motors (GM): Electro-Shock Therapy]]>http://www.bloggingstocks.com/2008/07/02/general-motors-gm-electro-shock-therapy/http://www.bloggingstocks.com/2008/07/02/general-motors-gm-electro-shock-therapy/http://www.bloggingstocks.com/2008/07/02/general-motors-gm-electro-shock-therapy/#commentsFiled under: , , , ,

General Motors Corporation (NYSE: GM) investors, as well as auto industry trackers, will want to read Jonathan Rauch's "Electro-Shock Therapy" in the July 2008 issue of Atlantic Magazine. Mr. Rauch was given unprecedented access to all personnel involved in GM's company-wide commitment to have a market-ready electric car by late 2010. GM personnel note the Chevy VOLT, as the car is named, will not be a hybrid per se, but will be the first mass market electric car with a range of 40 miles per charge, enough to cover the daily commute of 75% of American workers. The car's small gasoline engine will be used to recharge the battery, while only electricity will be used to power the wheels. GM is trying to wow consumers by manufacturing an affordable electric car that will sever the connection between driving and the gas pump.

GM lost the engineering and publicity wars on electric cars to Toyota's Prius years ago. Toyota has been eating GM's lunch ever sense. According to GM's VP Bob Lutz, it's payback time. Using the same rhetoric President Kennedy used to launch the Apollo space program and race to land on the moon, GM has sectioned off the Volt division and given it complete decision-making and spending authority to reinvent not only the electric automobile, but also the company itself. In one Volt engineer's words: "Go big or go home."

Yes, there are problems with the weight to power ratio in the battery. And yes, production of both the battery and the car body are being rushed towards production without the normal period of evaluation. But GM has staked its future on the Volt, and unlike my colleague Michael Rainey who isn't that positive on the Volt, there's reason for at least cautious optimism, a quality currently in short supply coming out of Detroit.

General Motors (GM): Electro-Shock Therapy originally appeared on BloggingStocks on Wed, 02 Jul 2008 16:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bob LutzBobLutzcar batteryCarBatteryChevroletChevyelectric carelectric carsElectricCarElectricCarsGeneral Motors CorporationGeneralMotorsCorporationGMhybrid carsHybridCarsPriusToyotaVoltWed, 02 Jul 2008 16:35:00 EST<![CDATA[America's Car-Mart (CRMT) lets customers pay by pig]]>http://www.bloggingstocks.com/2008/07/02/americas-car-mart-crmt-lets-customers-pay-by-pig/http://www.bloggingstocks.com/2008/07/02/americas-car-mart-crmt-lets-customers-pay-by-pig/http://www.bloggingstocks.com/2008/07/02/americas-car-mart-crmt-lets-customers-pay-by-pig/#commentsAmerica's Car-Mart Incorporated (NASDAQ: CRMT) has taken a page from master marketer Sam Walton.

America's Car-Mart will make it possible for just about anyone with weak or limited credit history to purchase a basic, reliable used car. No money for the down payment? No problem. America's Car-Mart will accept anything of value, including furniture, electronics and even livestock, as part of the down payment. This approach seems to be working. At a time when Car-Max (NYSE: KMX) posted a 55% drop in earnings, America's Car-Mart posted 4Q 2008 revenue gain of 29% to $76.5 million. Gross margins are up, past due accounts are down (surprising in a tight rural economy), net income is way up, and the company's debt level is down. Retail sales by unit volume increased 25% despite the fact the company closed three underperforming dealerships in the quarter. The average retail sales price increased 7% and the company has worked hard to improve the quality of the used vehicles in its inventory.

These good numbers are not just a fluke for 4Q 2008. FY 2008 revenues are up 14% to $275 million. Net income totaled $15 million or $1.26 per diluted share. The company has invested in software to track loan delinquencies and has developed its own proprietary credit scoring method to serve its non-traditional client base. Investors are happy with the news. They bid the stock up more than 5% to close at $18.86, closing in on the stock's 52 week high.

America's Car-Mart (CRMT) lets customers pay by pig originally appeared on BloggingStocks on Wed, 02 Jul 2008 13:07:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Americas Car-Mart IncorporatedAmericasCar-martIncorporatedCRMTinthenewsused carsUsedCarsWed, 02 Jul 2008 13:07:00 EST<![CDATA[Thornburg Mortgage (TMA) posts $3 billion quarterly loss]]>http://www.bloggingstocks.com/2008/07/02/thornburg-mortgage-tma-posts-3-billion-quarterly-loss/http://www.bloggingstocks.com/2008/07/02/thornburg-mortgage-tma-posts-3-billion-quarterly-loss/http://www.bloggingstocks.com/2008/07/02/thornburg-mortgage-tma-posts-3-billion-quarterly-loss/#commentsFiled under: , ,

June 30 was the day when Thornburg Mortgage Inc. (NYSE: TMA) had hoped to complete at least 90% of its preferred stock repurchase as part of a last ditch effort to save the company from bankruptcy and return it to viability. CEO Larry Goldstone continues to state that bankruptcy is not an option.

Well, when the stock has lost 99% of its value, the company posted a $3 billion quarterly loss, no one will buy what you have to sell, shareholders who have lost just about everything don't want to play anymore, and Moody's handed the company a C (for crap) rating.

Bankruptcy looks like a realistic scenario. And just to keep things interesting, the SEC is investigating the company's 2007 financial results, the timing of margin calls, as well as accounting practices for the company's mortgage-backed securities.

Thornburg's problems have nothing to do with the sub-prime mortgage debacle, at least not directly. Thornburg specializes in jumbo mortgages to those with impeccable credit. Its default rate is the envy of the mortgage industry. So the problem is not creditworthiness, but liquidity. Investors simply are not interested in purchasing mortgage-backed securities of whatever quality in the secondary market.

Thornburg's latest last ditch effort calls for the company to purchase 90% of its preferred stock in exchange for $5 and 3.5 shares of common stock for each share of preferred stock. Shareholders recently gave the company permission to increase the number of shares outstanding from 500 million to four billion in order to make the tender offer possible. The deadline for tendering preferred shares has been extended to September 30. The stock is currently trading at $0.22 per share, way down from its 52 week high of $27.82.

Even a contrarian speculator will have to work very hard to find value in this one.

Thornburg Mortgage (TMA) posts $3 billion quarterly loss originally appeared on BloggingStocks on Wed, 02 Jul 2008 12:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>inthenewsLarry GoldstoneLarryGoldstoneMBSmortgage backed securitiesMortgageBackedSecuritiespreferred stockPreferredStocksub-prime mortgageSub-primeMortgageThornburg Mortgage IncorporatedThornburgMortgageIncorporatedTMAWed, 02 Jul 2008 12:18:00 EST<![CDATA[GAAP vs. IFRS: New accounting rules could mean trouble]]>http://www.bloggingstocks.com/2008/06/26/gaap-versus-ifrs-new-accounting-rules-could-mean-trouble/http://www.bloggingstocks.com/2008/06/26/gaap-versus-ifrs-new-accounting-rules-could-mean-trouble/http://www.bloggingstocks.com/2008/06/26/gaap-versus-ifrs-new-accounting-rules-could-mean-trouble/#commentsFiled under: , ,

As if investors do not have enough to worry about, along comes another problem. There is a growing movement to allow, perhaps eventually require, American companies and foreign companies trading in ADRs, to keep their books according to International Financial Reporting Standards, IFRS, instead of the venerable GAAP method we all know and love.

The move to IFRS makes a fair amount of sense given the global nature of capital markets. American investors will simply have to learn to read a balance sheet constructed using different rules. The problem looming on the horizon is, who will construct the IFRS balance sheets?

Continue reading GAAP vs. IFRS: New accounting rules could mean trouble

GAAP vs. IFRS: New accounting rules could mean trouble originally appeared on BloggingStocks on Thu, 26 Jun 2008 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>accountingbalance sheetBalanceSheetGAAPIFRSInternational Financial Reporting StandardsInternationalFinancialReportingStandardsThu, 26 Jun 2008 16:30:00 EST