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Investing in Georgia: Radiant Systems (RADS) and RPC (RES)

As I mentioned in my recent Investing in Georgia post, the "Empire State of the South" has a diverse industrial output that ranges from peaches and peanuts to aircraft manufacturing and tourism (much of which is taking a hit from this year's severe drought in the South).

Georgia is home to such corporate giants as Coca-Cola Co. (NYSE: KO), The Home Depot Inc. (NYSE: HD), and United Parcel Service (NYSE: UPS), and the state also has just been named the second-best U.S. state in which to do business by Site Selection magazine. Georgia has been in the top four on that list for the past four years.

The Peach State is also home to Acuity Brands Inc. (NYSE: AYI) and Global Payments Inc. (NYSE: GPN), which I examined previously, as well as RPC Inc. (NYSE: RES) and Radiant Systems Inc. (NASDAQ: RADS), covered here. RPC and Radiant both made Fortune's 2007 list of the 100 fastest growing companies in U.S. It was Radiant's first time on that list, and Radiant has also been named one of the fastest growing tech companies in Georgia for the third straight year.

Continue reading Investing in Georgia: Radiant Systems (RADS) and RPC (RES)

Option update 7-18-07: Motorola volatility flat into EPS

Motorola Inc. (NYSE: MOT) volatility flat into 7/19 EPS comments on mobile devices.

  • MOT will report second-quarter earnings after the close on July 19. This is after last week's pre-announcement.
  • Nollenberger says, "We do not believe that MOT's Q2 results will impact the company's share price up or down after it reports. We do believe investors should focus on any new ideas beyond the RAZR."
  • MOT overall option implied volatility of 28 is near its 26-week average according to Track Data, suggesting non-directional risk.

Blockbuster (NYSE: BBI) option volatility flat at 58.

  • BBI, a provider of in-home movie & game entertainment, with over 8,000 stores globally, closed at $4.46.
  • BBI appointed former 7-Eleven CEO James W. Keyes as Chairman & CEO of BBI on July 2nd.
  • BBI overall option implied volatility of 58 is near its 26-week average according to Track Data, suggesting non-directional price risks.

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

Simpsons-mania!

The Simpsons Movie, which has been 18 years in the making, is finally due to hit theaters July 27. The movie is creating quite a frenzy around the country -- with a dozen 7-Elevens in cities from New York to California turning into Kwik-E-Marts. They are also selling Simpsons branded products in all 7-Eleven stores (I bought a box of KrustyO's). The frenzy is even bigger in Springfield, Vermont, which was chosen to host the premier of the movie.

The biggest beneficiary of the movie will be the same company that has benefited from the long, successful run of the show -- News Corporation (NYSE: NWS). After 20 years on the small screen, making News Corp's Fox billions, the big screen version will look to take No. 1 at the box office. It shouldn't have any trouble, as most of this summer's blockbusters have already come and gone, and the other new movies out that week -- I Know Who Killed Me and No Reservations -- don't have anywhere near the hype, universal appeal or the marketing push of the Simpsons.

Other beneficiaries are the aforementioned 7-Eleven, which is owned by Seven-Eleven Japan Co, the privately-owned toy company McFarlane toys, which is making The Simpsons Movie toys, and Electronic Arts Inc (NADSAQ: ERTS), which is releasing a new Simpsons video game to coincide with the release of The Simpsons Movie on DVD.

For a look behind the scenes at the history of the longest running comedy on television, check out this article from Vanity Fair.

Hitting a Homer: The Simpsons marketing blitz

Subversive, controversial, and consistently funny, The Simpsons has been a staple throughout my adolescent and adult life. After 20 seasons on News Corp's (NYSE: NWS) Fox network, Homer's brood and all of everyone's favorite oddballs and ne'er do wells from Springfield will be trekking over to the big screen.

The feature-film version of the animated sitcom debuts in theaters July 27, and the marketing blitz is already underway. Today, 7-Eleven - a subsidiary of Seven-Eleven Japan - said it is converting 12 stores (11 in the U.S., one in Canada) into Kwik-E-Marts, the convenience store featured in The Simpsons and managed by beloved feature player Apu Nahasapeemapetilon (unknown by my spell check). Simpsons-themed products will be available not only in these converted locations, but in all 7-Eleven stores. Check out the list of the made-over Kwik-E-Marts here.

Other corporate sponsors of the Matt Groening-developed cartoon include Microsoft (NASDAQ: MSFT), which offers many Simpsons-themed games for its Xbox 360 gaming system, and JetBlue Airways (NASDAQ: JBLU), which recently proclaimed itself the "official airline of Springfield."

Speaking of Springfield, Simpsons fans have spent the better part of 2 decades debating which American Springfield provides the setting for Homer and friends. Fourteen Springfields across the country, from Oregon to Vermont, are now under the microscope competing for the right to host The Simpsons hometown premiere. Head to USA Today by July 9 to cast your vote. (Psst ... Illinois!)

Beth Gaston Moon is an analyst at
Schaeffer's Investment Research.

7-Elevens become Kwik-E-Marts for Simpsons promotion

In a bizarre case of life imitating Bart (sorry, couldn't help it), 7-Eleven has transformed a dozen stores into Kwik-E-Marts, even offering Simpsons-exclusive products like Buzz Cola, KrustyO's cereal and Squishees. The transformation comes as part of the promotional lead-up to the July 27 opening of The Simpsons Movie, the first feature-length version of the popular cartoon.

According to the Associated Press, "For 20th Century Fox Film Corp. and Homer's creators at Gracie Films, the stunt is a cheap way to call attention to their movie, since 7-Eleven is bearing all the costs, which executives of the retail chain put at somewhere in the single millions."

Wow. So far this Kwik-E-Mart stunt has gotten coverage in nearly every media outlet, including CNBC. And none of it has cost Fox a dime! The move comes several years after industry executives turned down an offer to transform select locations of the struggling restaurant chain Applebee's (NASDAQ: APPB) into Hannibal's to coincide with the release of a sequel to Silence of the Lambs.

It may not matter that Blockbuster has a new CEO

Blockbuster (NYSE: BBI) announced that it has hired the former head of 7-Eleven, James W. Keyes, to be the video rental company's new CEO. Carl Icahn has been feuding with the out-going chief over his pay package.

Blockbuster recently announced that it is closing more stores as the number of people who want to travel to a retail outlet to pick-up DVDs is dropping. It is also locked in a death dance with NetFlix (NASDAQ: NFLX) over pricing on DVDs through the mail. As one company drops its price to get new customers, the other follows.

Keyes biggest problem is almost certainly that the company has virtually no presence in the movie download business. Large companies including Amazon, (NASDAQ: AMZN), Wal-Mart (NYSE: WMT) and Apple (NASDAQ: AAPL) are all in the digital video business now.

New CEO. Same problems. No solutions.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Symbol Lookup
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DJIA+15.7210,449.43
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S&P 500+2.501,108.15

Last updated: November 25, 2009: 12:57 PM

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