FeedPosted Jul 26th 2010 4:40PM by Jason Raznick (RSS feed)
Filed under: Industry, Competitive Strategy

The Chinese automobile market has been rapidly growing, and the growth of the auto modified plastic space is growing at an even faster rate. Between 2005 and 2009, automobile production volume has gone from 5.7 million to 13.8 million, which implies a CAGR of 25%, and the growth of this sector's sales volume has an estimated CAGR of 27%. One company which benefits from these trends is China XD Plastics Co. (
CXDC).
On July 21st, the company signed an exclusive product development agreement with Hafei Dongyang, which is one of the leading automotive parts suppliers in Northeast China, to deliver 3 tons of specialized plastic compounds. These compounds will be used in the battery casing during a pilot production for electric vehicles. According to the press release, China XD Plastics will have the opportunity to receive additional exclusive product development rights for a period of five years upon the successful design of new specialized plastic products to be used in HD's plastics parts in electric vehicles.
Continue reading A Way to Play Electric Vehicle Growth in China
Posted Jul 22nd 2010 9:00AM by Connie Madon (RSS feed)
Filed under: International Markets, Earnings Reports, Internet, Competitive Strategy, Technology

Baidu (
BIDU), China's most popular search engine, reported
net income of 837.4 million yuan or 2.40 yuan per American depositary receipt, in the June quarter. Analysts' estimates compiled by Bloomberg had projected net income of 710.4 million yuan. Last year Baidu reported profit of 383.3 million yuan or 1.10 yuan per ADR for the same period.
The main reason for the spectacular gain was that Baidu's biggest competitor, Google
(GOOG), had disputes with Chinese censors over Internet content. Google opted for open access to the Internet. This move clashed with China's policy of having content pass through official censors for approval. Google redirected traffic to its Hong Kong site and, in doing so, lost market share to Baidu.
Continue reading Baidu Earnings Soar
Posted Jul 21st 2010 4:00PM by Brian White (RSS feed)
Filed under: Bad News, Competitive Strategy, Sirius Satellite Radio (SIRI)

When XM Radio and Sirius radio
decided to merge a few years ago, it was most likely the only survival strategy left for long-term viability of both companies. Satellite radio subscriptions were not growing at a pace needed for consistent growth, and having a unified front to partner with automakers for satellite radio in new cars was becoming all-important. Fast forward to 2010, and smartphones are taking over from standard cellphones. Herein lies a huge problem for Sirius moving forward: competing with internet radio that's personalized and on-demand.
If you own an iPhone or Google-powered Android phone, the amount of customized radio-type listening services is almost limitless. For iPhone and Android, the ever-popular Pandora becomes your own radio station with only the artists you like. Download the Stitcher app for Android or iPhone and you have popular radio programs (Fox Radio, CNN, more) and podcasts available at any time. Even though Sirius has apps for its satellite radio service on popular smartphone platforms, will customers pay for it with so many other options only a download away?Continue reading Should Sirius XM Radio Be Worried About Internet Radio On Smartphones?
Posted Jul 16th 2010 9:00AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Bad News, Competitive Strategy

Pharmaceutical company Vivus (
VVUS) has
lost more than half of its value in pre-market trading Friday. Unfortunately for VVUS, the Food and Drug Administration (FDA) rejected the company's Qnexa weight-loss drug late Thursday -- citing a lack of long-term safety data.
The news triggered a glut of downgrades and target price cuts, including downgrades from Brean Murray, Needham, JP Morgan, and Jefferies.
The drop for VVUS is understandable when considering that Qnexa is the company's main drug. There is a slight (ever-so-slight) glimmer of hope for VVUS, as the FDA is not obliged to follow the recommendations of its panels. Of course, the agency usually does follow the recommendations of its panels.
Continue reading FDA Rejection Crushes Vivus
Posted Jul 12th 2010 2:30PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Competitive Strategy, Berkshire Hathaway (BRK.A), Market Matters, Amer Intl Group (AIG), Serious Money, Stocks to Buy, MetLife Inc. (MET)

To continue the saga of what might be on Warren Buffett's foreign wish list, consider the current holdings of Berkshire Hathaway (
BRK.A/
BRK.B), the largest of which is insurance. The insurance industry has been hard hit by the economy, but it also has the greatest potential to rebound of any industry. Insurance companies have huge cash flow and a large float (mandated by government regulation) that can be used for investments. This has been a major contributing factor in Buffett's success.
Unlike the construction, automobile or financial sectors that have been met with an economic tidal wave that destroyed demand, there is no lack of demand in the insurance industry. The insurance companies have been hurt by the shrinking of their investment portfolios more than loss of demand or even claims, accepting companies that wrote swaps, like American International Group (
AIG).
When next
"my pal Warren" invests abroad he may not have to go very far.
Continue reading Serious Money: Buffett Going Global -- Part 5
Posted Jun 29th 2010 10:40AM by Beth Gaston Moon (RSS feed)
Filed under: Magazines, Competitive Strategy, Marketing and Advertising, Abercrombie and Fitch (ANF), Media World

Ooh la la! Fans of the old-school Abercrombie & Fitch (
ANF) catalog have something to giggle about. After seven long years, the risque quarterly featuring scantily clad young adults is
being reinstated. And even though the catalog is ostensibly just marketing itself -- advertising the clothes that the models are barely wearing -- it will cost you $10 (it is available for pre-order now at the Abercrombie website and will hit shelves July 17).
When the recession hit and allowances dried up, ANF suffered even more than most of its peers as teens and young adults offered for similarly trendy fashion at cheaper prices, turning to the Gap's (
GPS) Old Navy, Aeropostale (
ARO), and American Eagle (
AEO) as substitutes. After months of resistance (or denial), ANF finally cut the prices on some items, but it is still facing lackluster sales and revenue numbers. The shares, meanwhile, are down 50% over the last two years.
Continue reading Sex(y) Sells: Abercrombie Bringing Back Controversial Catalog
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