The J. M. Smucker Company (NYSE: SJM) is a leading North American maker of fruit spreads, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and health and natural foods beverages. Company brand names include Smucker's, Jif, Crisco, Eagle Brand, Hungry Jack, Laura Scudder and Robin Hood. The firm also markets Pillsbury, Pillsbury Doughboy, Carnation, Borden, and Elsie brand products under license. ConAgra Foods (NYSE: CAG) is a major competitor.
Smucker pleased investors earlier in the month, when it reported fiscal Q1 EPS of 82 cents and revenues of $663.7 million. Analysts had been looking for 77 cents and $647.2 million. Management also guided FY09 EPS to $3.45-$3.50 ($3.44 consensus) and FY09 revenues to $3.8-$4.0 billion ($3.86B consensus). The outlook figures take into account the previously announced purchase of Procter & Gamble's (NYSE: PG) Folgers coffee business.
TheStreet.com's Jim Cramer says that even in lousy markets -- and this is one of them -- you can find stocks to buy.
When nothing's working, something's working. I know sounds counterintuitive. but there is simply no reason to think, as bad as this market is -- and it is really, really bad -- that there isn't something to buy.
But are they really hurting General Mills (NYSE: GIS) (Cramer's Take)? Can I see selling Procter & Gamble (NYSE: PG) (Cramer's Take) because of them? After we know the price increases are all baked in? And don't hit me with that strong-dollar stuff, because GIS doesn't have that much overseas exposure. Same with Pepsi (NYSE: PEP) (Cramer's Take): This is a national company with an international arm that is generating oodles of cash and doesn't have as much bad commodity exposure as it did a few months ago.
Estée Lauder Companies (NYSE: EL) is a leading manufacturer and marketer of skin care, makeup, fragrance and hair care products. These are sold in over 140 countries under a variety of established brands, including Estée Lauder, Aramis, Clinique, Bobbi Brown, American Beauty and Grassroots. The firm also operates as a licensee for such fragrance and cosmetic names as Tommy Hilfiger, Kiton, Donna Karan, Daisy Fuentes and Mustang. Estée Lauder sells its products through department stores, specialty retailers, pharmacies and salons, as well as company-owned stores, spas and Web sites. Elizabeth Arden (NASDAQ: RDEN), Procter & Gamble (NYSE: PG) and Revlon (NYSE: REV) are major competitors.
The firm pleased investors earlier in the month, when it reported fiscal Q4 EPS of 61 cents and revenues of $2.01 billion. Analysts had been looking for 56 cents and $1.93 billion. The CEO noted that strategic investments have enabled the company to continue building worldwide share, as it leverages opportunities in emerging markets. Management also guided Q1 EPS to 18-25 cents (24 cent consensus), FY09 EPS to $2.57-$2.72 ($2.66 consensus) and FY09 revenues to about $8.38-$8.54 billion ($8.38B consensus).
The stock market was down yesterday and it is down again today. Bearish sentiment is roaming through Wall Street right now, so I thought I would look back on another occasion when the market was going through similar turmoil and I wrote about the following eight stocks, which I thought would be "safe havens" in such a storm.
Six of the eight did well and two did not, and of course one of those two was a disaster. Among the losers, I do not think anyone is fretting about UPS, which is still one of the few triple-A rated companies along with Berkshire Hathaway. It has been well reported that the slowing economy and higher fuel prices have been the major culprits affecting UPS's earnings. In the case of WaMu, it's demise has also been well reported, but at the time I recommended it WaMu had a stellar reputation of growth and high yield for over two decades. There is no hiding, it turned out to be a lousy pick and an ANTI-SAFE Haven
Washington Mutual(NYSE: WM) closed Monday at $4.21 down from $45.50; a 98% loss.
Fortunately the remaining six picks have done very, very well. If you had bought the pool, the average gain over the last two years would have been 7.14%. Adding the dividends over the two years would have raised this to 13.14%.
Procter & Gamble (NYSE: PG) reported its Q4 and full-year results on Tuesday. The numbers looked very good to me (save for one, which I'll get to). P&G was up over 3% on Tuesday. Granted, the Dow saw one heck of a rally yesterday, but even so, P&G deserved a bid just due to its blue-chip corporate performance.
Revenues for the quarter increased 10%, and adjusted earnings per diluted share jumped over 19% to $0.80. For the year, revenues increased 9% and adjusted earnings per diluted share rose 15% to $3.50. As I stated in my earnings preview from the other day, Wall Street was looking for adjusted earnings to be around $0.78 per share. So P&G beat by two pennies.
Of course, the earnings beat is nice, but cash flow is even nicer. In fact, management likes to evaluate itself by comparing its free cash flow to net earnings. P&G would like the so-called "free cash flow productivity" metric to equal at least 90%. Well, shareholders need not worry, since productivity in these terms was 96% for the quarter and 106% for the fiscal year. Free cash flow for the year expanded by 21%, and it was more than enough to power P&G's great dividend.
Today's markets started out strong and got stronger.
If you were a conspiracy theorist you might even make a crack noting that Wall Street had already seen the dovish FOMC comments which signaled that rate hikes are not a certainty until after the election. Throw in a substantial drop in oil to new recent lows of under $119.00 per barrel, and the rest is all gravy.
Here are today's unofficial closing bell levels: D.J.I.A. 11,615 (+331) S&P500 1,283.28 (+34) NASDAQ 2,347.36 (+62) 10YR T-NOTE 4.007% (+0.035%) 52-Week Lows Top Analyst Downgrades Top Analyst Upgrades
Archer-Daniels Midland Company (NYSE: ADM) saw shares down over 5% in today's final minutes. Despite the stock being close to new fresh lows, traders were very unenthusiastic after the company missed earnings expectations.
Falling Oil Prices May Not Be as Good as You Think Oil prices are falling sharply, and that's good news. But not nearly as good as you might think. Lower prices mean less pain at the pump - but tougher times ahead for the economy. Falling oil prices suggest that the recession the U.S. has so far avoided is well on its way, as consumers pull back from the spending spree that drove economic growth earlier this decade. A weakening economy will mean more layoffs, further pressuring already reduced spending. Lower oil prices: a mixed blessing - FORTUNE
What Now for Bennigan's Franchisees? What happens to franchisees when a franchisor goes bankrupt? Bennigan's owners are about to find out. The pub-themed casual dining chain filed a Chapter 7 bankruptcy on July 29, meaning it chose to cease operations and liquidate its assets rather than attempt to reorganize under Chapter 11. Bennigan's closed all company-owned locations and announced plans to sell off the assets. The remaining 138 franchisees are still operating, but they face a tough road ahead. After a Franchisor Files for Bankruptcy - BusinessWeek In Photos: 11 Big Brands That Went Bankrupt & What Handppened Next to Franchisees
U.S. stock futures were lower Tuesday morning as oil prices continued to decline, with crude falling below $120 a barrel on demand concerns due to the economic slowdown in the U.S. Commodities in general have been declining. Also today, the Federal Reserve will announce its decision regarding interest rates and it is widely expected they will remain unchanged. Similarly, the Fed's outlook statement about outlook and focus may also remain largely the same according to expectations. Meanwhile, overseas, both the ECB and BoE are expected to leave rates unchanged.
One of Yahoo! Inc. (NASDAQ: YHOO)'s largest shareholders, Capital Research Global Investors, had asked to review the vote in last week's re-election of the Internet giant's board. Specifically, I guess, it was surprising the vote showed strong support -- 85% -- for CEO Jerry Yang. There's no sense dancing around this issue; basically the shareholder implies suspicions of wrongdoings (or really really incompetent tallying of votes).
Bloomberg reports that analysts now expect Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) to report net losses through the first quarter of 2009 as home-loan delinquencies rise to the highest on record. The the biggest U.S. mortgage-finance companies report tomorrow and according to estimates will show a loss of 74 cents and 60 cents per share respectively. The losses may be greater than expected as we've seen before analysts underestimating the credit losses. It will not be pretty.
The company that brings you Ivory Soap, Procter & Gamble (NYSE: PG), is set to divulge its Q4 numbers on Tuesday. So, what should shareholders expect from this consumer-products behemoth?
Well, I don't think it's going to be much of a surprise. Data at Earnings.com suggest that analysts believe P&G will do $0.78 per share in terms of the bottom line. Management actually expects around that number, as well. A recent piece I wrote about P&G reiterating its guidance shows that between $0.76 and $.78 per share is the range being looked at. So, I think we'll see the top end of the range reported tomorrow. P&G has a solid recent history of slightly beating expectations. Perhaps there will be a beat, but it most likely won't be by more than a penny.
This will represent pretty decent performance in a market wracked by horrible inflationary pressures. Going back to Earnings.com, the previous year's bottom-line number was $0.67 per share, so P&G will be looking at good double-digit growth. The top line, by the way, should expand at least 8%. Volume data will also be important to look at so investors can get a handle on how successfully the company is cultivating price increases. P&G has a significant advantage over competitors since its line of products is so well-known and trusted. I mean, when it comes to things like Ivory Soap, many consumers will refuse to alter their brand loyalties even if they have to pay more at the pump. Yes, sales of generic products obviously do have a challenging impact, but as I found with Kraft's (NYSE: KFT) recent earnings report, brand equity is a selective advantage in the Darwinian landscape of supermarket shelves. It's also useful for protecting margins.
TheStreet.com's Jim Cramer says 30%-40% discounts have a way of bringing out the buyers.
Home prices in Stockton, CA are down 40%. In Daytona, FL, houses are priced at 30% discounts with amenities. The Inland Empire of California -- you name your price. That's how the madness ends: with huge price cuts, the way it ended in Bradenton, FL.
And believe me, we get more Fannie Mae (NYSE: FNM) (Cramer's Take) money -- forget these darned covered bonds, let's just solve the problem. You get buyers after a year and a half that buyers went on strike.
Remember, while we can't live in stocks, we know they trade like houses, and when the first stocks to go down bottom, the others are not far behind.
With the new housing bill, the rate of foreclosures will go down and the bargains will be quite evident for those who want to take them. Either a new administration will remove the fear of the illegal immigrants from buying homes -- they were a huge part of the hard hit Arizona, Florida and California markets. Or the dramatic decline in inventory at the homebuilding level has given us breathing room.
Unilever (NYSE: UN, UL), the Anglo-Dutch consumer products giant, said Monday it was selling its laundry business in the U.S., Canada and Puerto Rico to private equity firm Vestar Capital for $1.45 billion. Included in the deal are the All, Wisk, Sunlight, Surf and Snuggle brands.
Selling mature or non-core businesses to focus on fast-growing units has been part of Unilever's recent strategy. Interestingly enough, though, the European laundry business has not been sold. Patrick Cescau, Unilever's CEO said that "Laundry remains an important category for Unilever outside North America." The sale will allow Unilever to concentrate on a "leading position" in Europe, Asia, Africa and Latin America, Cescau said.
Only last week, Unilever sold its Bertolli olive oil and vinegar business for $998 million to Grupo SOS SA and before that it sold its Turkish olive oil business. All part of a strategy to dispose of non-strategic brands, with collectively more than €2 billion ($3.14 billion) in turnover. It has made 19 divestments so far. The other parts of the plan include job cuts and other cost cutting measures. Unilever wants to concentrate on higher-priced products to boost profit, attempting to catch up to Procter & Gamble Co. (NYSE: PG).
"Any further market weakness creates creates another opportunity to acquire some outstanding stocks," suggests Kelley Wright, noted for his focus on blue chip, dividend-paying stocks.
In his Investment Quality Trends newsletter, he looks at the benefits of keeping a long-term focus, the value of dividend districutions to an investor's long-term returns, and his current "timely ten" picks for conservative investor.
"The cash dividend for the Dow is $322.40. One year ago the dividend was $284.06. Amidst all the turmoil in the markets and the economy something must be going right with the Dow 30 companies because the dividend is ever climbing.
"Dividends, as we all know, can only come from the reality of earnings; you can't pay what you don't have. The dividend yield on the Dow is currently 2.66%, which represents an 11% downside to a 3.0% yield and the historically repetitive area of Undervalue.
"Will the Average make it down to that level? No one knows but that isn't the point. At current levels the upside is FAR greater, particularly in many of the stocks in our Undervalued area.
It wasn't a super quarter for Kimberly-Clark (NYSE: KMB). The consumer-products company only met expectations set for it by Wall Street. But, sometimes, that's pretty good, given the conditions the business is working in. As a matter of fact, I see that Brent Archer penned a recent post discussing how inflation is hurting Kimberly-Clark (and just about every other entity, as well). At that time, the company projected a $900 million increase in terms of inflationary pressures, double management's previous estimate. So, looking through this current earnings release, I can't help but feel that things could have been worse.
For the second quarter, net sales rose 11% to $5 billion. Earnings on an adjusted basis dropped a penny compared to the year-ago period, coming in at $1.03 per share. Like I said, that matched expectations, according to Briefing.com. Guidance for the future also appears to be in-line. Kimberly-Clark seems, to me at least, to be holding its own during a difficult time. And here's a couple cash-flow data points that should appeal to many investors. Operating cash flow for the quarter was up 16% to $753 million. Prudent management of the company's working capital benefited this metric. And on a six-month basis, cash from operations also increased, albeit not by much. That sum rose a little under 2% to almost $1.2 billion. I like to see good cash-flow numbers like that, especially for dividend-paying concerns.
And speaking of dividends, Kimberly-Clark's stock is trading at a great yield, over 4%. Of course, that means that investors buying today will need a lot of patience. You'll be paid to wait, but if you're into fast capital-appreciation rates, you probably won't get it here, not in this trading environment. Inflation will continue to be a concern for it, as well as consumer-product colleagues such as Procter & Gamble (NYSE: PG), Colgate-Palmolive (NYSE: CL), and Energizer (NYSE: ENR).
The New York Times reports that Citigroup (NYSE: C) plans to commit $400 million to its naming rights deal for the stadium of the New York Mets. I say stop this deal!
Why? There are so many examples of companies that got into trouble after they named stadiums after themselves. In Boston, the stadium where the New England Patriots play was named after Gillette -- but Gillette doesn't exist anymore -- Procter & Gamble (NYSE: PG) bought it in 2005. And we had the Fleet Center, where the Boston Celtics play -- but Bank of America (NYSE: BAC) bought Fleet in 2003. And we also had the Tweeter Center, a concert venue -- named after Tweeter Home Enterprises which filed for bankruptcy last June. Fortunately, Boston's other world championship team, the Red Sox, has the good sense to deny naming rights to any company for its Fenway Park.
Now for Citi. According to the Times, it made its 20-year deal for the Mets naming rights back in November 2006 under previous CEO, Chuck Prince, after netting $5.3 billion in 2006's third quarter. But in the past three quarters, it has lost $17 billion - including a $2.5 billion loss reported on Friday.
a leading North American maker of fruit spreads, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and health and natural foods beverages. Company brand names include Smucker's, Jif, Crisco, Eagle Brand, Hungry Jack, Laura Scudder and Robin Hood. The firm also markets Pillsbury, Pillsbury Doughboy, Carnation, Borden, and Elsie brand products under license. ConAgra Foods (NYSE: CAG) is a major competitor.
The stock market was down yesterday and it is down again today. Bearish sentiment is roaming through Wall Street right now, so I thought I would look back on another occasion when the market was going through similar turmoil and I wrote about the following eight stocks, which I thought would be "safe havens" in such a storm.
Here are some highlights from this past week's 
Procter & Gamble
Today's markets started out strong and got stronger. 
U.S. stock futures were lower Tuesday morning as oil prices continued to decline, with crude 
The company that brings you Ivory Soap, 
"Any further market weakness creates creates another opportunity to acquire some outstanding stocks," suggests 
The 
Does GM deserve a taxpayer bailout?
Boeing could lose $3.5 billion per month if machinists strike
Cramer on BloggingStocks: Dell loses its Street cred once again 
