BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Will U.S. Steel Benefit as Japan Rebuilds?]]>http://www.bloggingstocks.com/2011/03/15/will-the-japanese-crisis-benefit-u-s-steel/http://www.bloggingstocks.com/2011/03/15/will-the-japanese-crisis-benefit-u-s-steel/http://www.bloggingstocks.com/2011/03/15/will-the-japanese-crisis-benefit-u-s-steel/#commentsFiled under: , , , ,

The crisis in Japan will require all sorts of construction materials for rebuilding destroyed buildings and factories. Steel is used in most construction projects. Here in the United States, U.S. Steel (X) is a dominant player.

Let's look at the company profile and earnings reports. "Based in Pittsburgh, the company operates mills throughout the Midwest, in Ontario, Canada, Serbia and Slovakia. The company makes semi finished steel, tubular and plate steel and tin products. Its annual production capacity is about 32 million tons of raw steel. The company's customers are from autos, chemical and steel service center industries."

Continue reading Will U.S. Steel Benefit as Japan Rebuilds?

Will U.S. Steel Benefit as Japan Rebuilds? originally appeared on BloggingStocks on Tue, 15 Mar 2011 09:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>basic industriesconstructionfeaturedindustryJapanrebuildingUS SteelTue, 15 Mar 2011 09:30:00 EST<![CDATA[Manufacturing Down for a Third Straight Month]]>http://www.bloggingstocks.com/2010/08/02/manufacturing-is-down-for-a-third-straight-month/http://www.bloggingstocks.com/2010/08/02/manufacturing-is-down-for-a-third-straight-month/http://www.bloggingstocks.com/2010/08/02/manufacturing-is-down-for-a-third-straight-month/#commentsFiled under: , , ,

The Institute for Supply Management reported that its index fell to 55.5 in July, down from 56.2 in June. 74 analysts polled by Reuters had estimated the number to be 54.2.

New orders also fell to 53.5 in July, down from 58.5 in June. Referring to the sharp drop, Pierre Ellis of Decision Economics said: "Even though the decline in the headline number is smaller than expected, the composition shows weakness, particularly in new orders, which is bad news."

Continue reading Manufacturing Down for a Third Straight Month

Manufacturing Down for a Third Straight Month originally appeared on BloggingStocks on Mon, 02 Aug 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>economyindustryinthenewsmanufacturingunemploymentMon, 02 Aug 2010 18:00:00 EST<![CDATA[General Electric: Is the Stock a Buy, or Should It Be Forgotten?]]>http://www.bloggingstocks.com/2010/07/16/general-electric-is-the-stock-a-buy-or-should-it-be-forgotten/http://www.bloggingstocks.com/2010/07/16/general-electric-is-the-stock-a-buy-or-should-it-be-forgotten/http://www.bloggingstocks.com/2010/07/16/general-electric-is-the-stock-a-buy-or-should-it-be-forgotten/#commentsFiled under: ,

You know, it's days like today when I wonder what in the world will help my poor General Electric Company (GE) shares. I've owned them for a while, and it's been a painful ride. In fact, you can see that, over the last twelve months, the stock hasn't been too rewarding. It's stuck in a narrow 52-week range. And since the dividend was cut last year, you can't make a case necessarily when it comes to the stock's payout. If the dividend had remained intact, we would have been talking about a decent yield (and probably a higher stock price). As it is, we aren't.

This afternoon, shares of GE are weak following the Q2 report. At the time of this writing, they were off by 3.5%, exchanging hands at a price of $14.71. Volume was strong. I don't like it.

Continue reading General Electric: Is the Stock a Buy, or Should It Be Forgotten?

General Electric: Is the Stock a Buy, or Should It Be Forgotten? originally appeared on BloggingStocks on Fri, 16 Jul 2010 17:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredGEgeneral electricindustryFri, 16 Jul 2010 17:00:00 EST<![CDATA[Housing Starts and Industrial Production Up In January]]>http://www.bloggingstocks.com/2010/02/17/housing-starts-and-industrial-production-up-in-january/http://www.bloggingstocks.com/2010/02/17/housing-starts-and-industrial-production-up-in-january/http://www.bloggingstocks.com/2010/02/17/housing-starts-and-industrial-production-up-in-january/#commentsFiled under: , , , , , , , ,

The numbers are looking good for January: both US home construction and industrial production rose.

Here are the stats:

  • The Commerce Department reported that housing starts climbed 2.8% to a seasonally adjusted 591,000 annual rate.
  • Housing starts and apartment construction were both up in January.
  • Apartment construction rose 9.2% to 107,000

Continue reading Housing Starts and Industrial Production Up In January

Housing Starts and Industrial Production Up In January originally appeared on BloggingStocks on Wed, 17 Feb 2010 16:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Housing startsHousingStartsIndustrial productionindustryrecessionWed, 17 Feb 2010 16:30:00 EST<![CDATA[November payroll loss points to likely lower corporate revenue, earnings]]>http://www.bloggingstocks.com/2008/12/03/november-payroll-loss-points-to-likely-lower-corporate-revenue/http://www.bloggingstocks.com/2008/12/03/november-payroll-loss-points-to-likely-lower-corporate-revenue/http://www.bloggingstocks.com/2008/12/03/november-payroll-loss-points-to-likely-lower-corporate-revenue/#commentsFiled under: , ,

Nonfarm private employment decreased an enormous 250,000 in November (pdf) on a seasonally adjusted basis, ADP announced Wednesday.

Meanwhile, the October estimated change in employment was revised to a decrease of 179,000 jobs from the previously-announced decrease of 157,000 jobs.

While manufacturing employment fell 118,000 in November -- its 27th consecutive monthly decline -- the service sector of the economy lost 92,000 jobs -- its second consecutive monthly job loss, and the first back-to-back monthly job loss in that sector since November 2002.

Economist Richard Felson said the November ADP private sector report shows a U.S. economy with few strengths. "It is another distressing report. The fact that the service sector is now registering large job losses is bearish for the economy. Previously, the service sector had been the only sign of strength," Felson said. "Simply, the nation, and the other regions of the world need to create engines of growth to reverse this negative spiral of decreased demand, lower revenue, job losses, decreased demand."

Most of the decline in employment during November was accounted for by job losses at medium-sized companies, which registered a 130,000-job decline. Meanwhile, large businesses cut 41,000 jobs in November. Small businesses cut 79,000 jobs during the month.

Continue reading November payroll loss points to likely lower corporate revenue, earnings

November payroll loss points to likely lower corporate revenue, earnings originally appeared on BloggingStocks on Wed, 03 Dec 2008 09:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ADPemploymenthousingindustryinthenewsjobsprivate sectorservice sectorWed, 03 Dec 2008 09:58:00 EST<![CDATA[Time to nibble anew on commodities?]]>http://www.bloggingstocks.com/2008/10/23/time-to-nibble-anew-on-commodities/http://www.bloggingstocks.com/2008/10/23/time-to-nibble-anew-on-commodities/http://www.bloggingstocks.com/2008/10/23/time-to-nibble-anew-on-commodities/#commentsFiled under: , , , ,

Minyanville contributor Quint Tatro dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

Despite the fact that just about every chart out there screams bear market and downtrend, at this juncture I can't justify adding new shorts. It feels like a trap in that the steepness of the recent decline could eventually usher in a snapper that would rip the heads off new shorts so rather than venture into that area, I'll avoid it altogether. The question is, however, whether or not to venture in and with the most recent slide, I'll admit it is rather tempting.

When I look at commodity names in particular, the damage that has been done is breathtaking. It seemed like just weeks ago Freeport (NYSE: FCX) was trading in the triple digits while Schlumberger (NYSE: SLB) flirted with $90 or so. Wait a second, it WAS just a few weeks ago. Geesh.

I am of the camp that starting to nibble into the fear that exists is prudent if and only if you have already protected capital along the way, and fully realize you can emerge with a few nicks.

My ETF of choice is the ProShares Ultra O&G (AMEX: DIG) which like so many other averages yesterday, held its most recent uptrend line but has yet to put in a higher high. The risk-reward with a stop below the October 10 lows seems appropriate to me, so I have taken a stab. I will slowly wade in and sell into strength should it eventually come.

Time to nibble anew on commodities? originally appeared on BloggingStocks on Thu, 23 Oct 2008 12:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CommoditiesDIGFCXfeaturedIndustrySLBThu, 23 Oct 2008 12:50:00 EST<![CDATA[March U.S. factory orders rise 1.4%, much better than expected]]>http://www.bloggingstocks.com/2008/05/02/march-u-s-factory-orders-rise-1-4-much-better-than-expected/http://www.bloggingstocks.com/2008/05/02/march-u-s-factory-orders-rise-1-4-much-better-than-expected/http://www.bloggingstocks.com/2008/05/02/march-u-s-factory-orders-rise-1-4-much-better-than-expected/#commentsFiled under: , ,

U.S. factory orders increased a surprising 1.4% in March 2008, the U.S. Commerce Department announced Friday, on rising international demand for U.S. goods. It was the fastest growth for factory orders since December 2007.

Economists surveyed by Bloomberg News had expected March 2008 factory orders to increase by 0.3%. Factory orders fell a revised 0.9% in February 2008, slightly better than the previously announced decline of 1.3%.

Also factory orders, excluding the volatile transportation equipment component, increased 2.2% in March 2008.

Economists follow the factory orders statistic because it provides one of the most comprehensive surveys of advance orders for durable goods -- how busy factories are likely to be in the period ahead. Factory orders also are a major value-added component of the U.S. economy.

Orders for durable goods increased 0.1% in March 2008, revised up from the 0.3% decline estimated a week ago. Orders for nondurable goods rose 2.6%, unfilled orders increased 1.1%, shipments climbed 1.1%, and inventories for manufactured goods rose 1.1%.

U.S. economy's saving grace: exports

Economist Peter Dawson told BloggingStocks Friday the economy "is making a concerted effort to complicate economists lives" by recording stronger-than-expected economic data, of late.

Continue reading March U.S. factory orders rise 1.4%, much better than expected

March U.S. factory orders rise 1.4%, much better than expected originally appeared on BloggingStocks on Fri, 02 May 2008 11:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dollardurable goodsexportsfactory ordersfeaturedGDPindustryinthenewsinventoriesshipmentsU.S. Commerce DepartmentU.S. economyFri, 02 May 2008 11:27:00 EST<![CDATA[U.S. durable goods orders fall for third straight month]]>http://www.bloggingstocks.com/2008/04/24/u-s-durable-goods-orders-fall-for-third-straight-month/http://www.bloggingstocks.com/2008/04/24/u-s-durable-goods-orders-fall-for-third-straight-month/http://www.bloggingstocks.com/2008/04/24/u-s-durable-goods-orders-fall-for-third-straight-month/#commentsFiled under: , , ,

U.S. durable goods orders fell 0.3% in March 2008, as demand for machinery dropped substantially, the U.S. Commerce Department announced Thursday.

Economists surveyed by Bloomberg News had expected March 2008 durable goods orders to rise 0.6%. Durable goods orders decreased a revised 0.9% in February 2008.

Excluding transportation, durable goods orders rose 1.5% in March 2008.

In March 2008 core capital goods orders were flat, after declining the previous two months. Inventories rose 1.1%, the category's eighth increase in the past nine months. Shipments decreased 0.4%, its fourth decline in the last five months. Unfilled orders increased 0.9%.

Another negative datapoint

Economist David H. Wang told BloggingStocks Thursday the March 2008 durable goods statistic is additional bad news for the U.S. economy.

"Demand continues to weaken, and a third straight durable goods order decline indicates that the U.S. economy is contracting. For the economy to grow, we must see stronger durable goods demand, " Wang said. "If you exclude the defense-related hardware component, the durable goods order statistic would have been even worse. U.S. corporations continue to benefit from international demand, but those exports are not enough to overcome clear weakness in orders and sales at home."

U.S. durable goods orders fall for third straight month originally appeared on BloggingStocks on Thu, 24 Apr 2008 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>durable goods ordersGDPindustryinthenewsinventoriesmanufacturingU.S. Commerce DepartmentThu, 24 Apr 2008 10:10:00 EST<![CDATA[Asian manufacturers adjusting to American economic downturn]]>http://www.bloggingstocks.com/2008/01/25/asian-manufacturers-adjusting-to-american-economic-downturn/http://www.bloggingstocks.com/2008/01/25/asian-manufacturers-adjusting-to-american-economic-downturn/http://www.bloggingstocks.com/2008/01/25/asian-manufacturers-adjusting-to-american-economic-downturn/#commentsFiled under: , , , , , ,

lemonade standAsian manufacturers, especially those in China and Japan, are beginning to feel the pinch from weak purchasing power here in the United States. A report in the New York Times highlights some of the attitudes and adjustments which shall be guiding world industrial output going through this year and into 2009. Prudent cuts are being made by Asian manufacturers across the board to offset costs, while demand growth is in decline.

It's not all doom and gloom however, depending on how you look at it. Chinese economists are actually feeling a bit of a relief from the slowdown in the face of their own inflationary pressures and indications are that merchandise inventories aren't yet getting bloated. This means that while industrial output might be cooling in the near term, available manufacturing capacity should remain relatively flush while the banks figure out the details of stinging money supply issues.

Continue reading Asian manufacturers adjusting to American economic downturn

Asian manufacturers adjusting to American economic downturn originally appeared on BloggingStocks on Fri, 25 Jan 2008 15:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ChinaexportimportindustryJapanmanufacturingproductivityretailFri, 25 Jan 2008 15:00:00 EST<![CDATA[Manufacturing contracts to weakest level since April 2003]]>http://www.bloggingstocks.com/2008/01/02/manufacturing-sector-contracts-to-weakest-level-since-april-2003/http://www.bloggingstocks.com/2008/01/02/manufacturing-sector-contracts-to-weakest-level-since-april-2003/http://www.bloggingstocks.com/2008/01/02/manufacturing-sector-contracts-to-weakest-level-since-april-2003/#commentsFiled under: , ,

The nation's factory sector contacted in December 2007 to its weakest level since April 2003, the Institute of Supply Management announced Wednesday. The ISM index fell to 47.8% in December 2007 from 50.8% in November 2007. Readings below 50% indicate a contracting industrial sector. Analysts had expected a December 2007 ISM reading of 50.9%.

In all, only seven of 18 industrial segments expanded. Moreover, economic activity in the manufacturing sector failed to grow in December 2007 after 10 consecutive months of expansion, while the overall economy grew for the 74th consecutive month, the ISM announced.

Disappointing statistic

Economist Steve Affinito told BloggingStocks Wednesday that the ISM statistic will place more pressure on the U.S. Federal Reserve to continue to cut short-term interest rates.

"It's a disappointing statistic, no question. We were looking for something slightly north of [above] 50% and a reading below 50%, that has to concern the Fed. It's just one month but it indicates that manufacturing is contracting, and at minimum is likely to grow to slowly," Affinito said. "The Fed will have to cut interest rates at least two more times to help prevent an economic stall. The December ISM stat is not a number the Fed hawks can ignore."

Continue reading Manufacturing contracts to weakest level since April 2003

Manufacturing contracts to weakest level since April 2003 originally appeared on BloggingStocks on Wed, 02 Jan 2008 12:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FedGDPindustryInstitute of Supply ManagementinthenewsISMmanufacturing sectorManufacturingSectorrecessionU.S. economyU.S. Federal ReserveWed, 02 Jan 2008 12:44:00 EST<![CDATA[Meyer Burger AG: Poised on the 'cutting' edge of success]]>http://www.bloggingstocks.com/2007/11/05/meyer-burger-ag-poised-on-the-cutting-edge-of-success/http://www.bloggingstocks.com/2007/11/05/meyer-burger-ag-poised-on-the-cutting-edge-of-success/http://www.bloggingstocks.com/2007/11/05/meyer-burger-ag-poised-on-the-cutting-edge-of-success/#commentsFiled under: ,

What happens when a highly specialized industry begins to grow very quickly? Solar power, one of the fastest growing of alternative energy sources, relies on a system of very specific machinery to work successfully. But market growth has lagged behind demand due to a bottleneck in the manufacturing process -- in the production capacity of poly-silicon, a vital component in photovoltaic cell production.

I think the potential for a company that could help break-up that bottleneck could be really extraordinary, and that's why I'm recommending Meyer Burger (MBTN: Swiss Exchange) as one of my best picks for 2008.

Meyer Burger is a market leader in a small but incredibly important market, technology-wise -- the manufacturing of machines that contain highly precise saws for cutting silicon and other crystals for use in solar power, optics and semiconductors.

Continue reading Meyer Burger AG: Poised on the 'cutting' edge of success

Meyer Burger AG: Poised on the 'cutting' edge of success originally appeared on BloggingStocks on Mon, 05 Nov 2007 08:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Hilary on stocksHilaryOnStocksindustryMeyer BurgerMeyerBurgersolar powerSolarPowerstocks to buyStocksToBuySwiss ExchangeSwissExchangeMon, 05 Nov 2007 08:28:00 EST<![CDATA[Vizio on track to sell three million flat-panel TVs by end of 2007]]>http://www.bloggingstocks.com/2007/10/09/vizio-on-track-to-sell-three-million-flat-panel-tvs-by-end-of-20/http://www.bloggingstocks.com/2007/10/09/vizio-on-track-to-sell-three-million-flat-panel-tvs-by-end-of-20/http://www.bloggingstocks.com/2007/10/09/vizio-on-track-to-sell-three-million-flat-panel-tvs-by-end-of-20/#commentsFiled under: ,

The more I read about flat-panel television manufacturer Vizio, the more I understand how this company is almost single-handedly disrupting the price marketplace for the current technology that powers television viewing. Tube televisions are going out of style almost as fast as the cassette tape did in the early 1990s, and flat-panel sets featuring plasma or LCD technology are settling in as the new choice for almost every new television purchase. Of course, folks are still buying tube-style TV sets as fire sales blaze into many retailers, but I'll bet that will slow down in the next few years.

After having stepped into Circuit City Stores, Inc. (NYSE: CC), Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale Corp. (NASDAQ: COST) recently, the Vizio nameplate was everywhere, from the 32-inch television to the 50-inch big screen set. The prices were 30% lower (on average) than from competing sets featuring the Sony Corp. (NYSE: SNE) and Samsung nameplates, but looked every bit as good from an aesthetic and picture point of view. Purists will dig into specifications and technical jargon, but the average consumer will buy on these bullets: price, price, looks and price. Vizio has no close competition in terms of overall style and price point from what I can see in some recent retail visits.

It comes as no surprise that the company has sold over two million television sets in the four years since the start of U.S. sales in September 2003. In fact, with the majority of those sets being of the HDTV ilk, Vizio is probably one of the handful of companies that have allowed U.S. consumers to prepare for an all-digital television future once the analog television airwaves are re-purposed in 2009. Vizio even predicts that it will climb past the 3,000,000 sets sold mark by the end of the 2007 holiday shopping season. I'll bet that's a correct guess.

Vizio on track to sell three million flat-panel TVs by end of 2007 originally appeared on BloggingStocks on Tue, 09 Oct 2007 14:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>flat panelFlatPanelindustryplasmaSNESonytelevisionsVizioTue, 09 Oct 2007 14:55:00 EST<![CDATA[Is it time to jump into financial stocks?]]>http://www.bloggingstocks.com/2007/10/08/is-it-time-to-jump-into-financial-stocks/http://www.bloggingstocks.com/2007/10/08/is-it-time-to-jump-into-financial-stocks/http://www.bloggingstocks.com/2007/10/08/is-it-time-to-jump-into-financial-stocks/#commentsFiled under: , ,

Historically, when the Fed has started cutting rates, investing in financial stocks has proven profitable for investors. Will the same hold true in today's easing cycle? Probably not.

The Bear Stearns (NYSE: BSC) model for its mortgage business might point to problems ahead for the financial industry in general. The financial services industry has done an outstanding job during the past twenty years developing new products and marketing them to institutions who specialize in buying these new instruments -- primarily hedge funds. With mortgage hedge funds, publicly traded vehicles such as mortgage REITs and other investors now shutting their doors to these products, who gets stuck with them? You guessed it! The investment firms and large commercial banks.

Now let's go to $300 billion of private equity debt that needs to be placed. Who is buying that up? While some institutions are, much of it is staying on the books of the investment firms and banks. Will funds be formed to invest in this debt? Yes, but it will take time.

Continue reading Is it time to jump into financial stocks?

Is it time to jump into financial stocks? originally appeared on BloggingStocks on Mon, 08 Oct 2007 16:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bear stearnsBearStearnsbscdebteconomiceconomyfedfinancialsfirmhedge fundHedgeFundindustryinvestmentloanprivate equityPrivateEquityMon, 08 Oct 2007 16:45:00 EST<![CDATA[Too many newspapers and not enough readers shaking up publishers]]>http://www.bloggingstocks.com/2007/09/24/too-many-newspapers-and-not-enough-readers-shaking-up-publishers/http://www.bloggingstocks.com/2007/09/24/too-many-newspapers-and-not-enough-readers-shaking-up-publishers/http://www.bloggingstocks.com/2007/09/24/too-many-newspapers-and-not-enough-readers-shaking-up-publishers/#commentsFiled under: , , ,

Wall Street JournalAre big-time newspapers going to survive the instant news rush and immediate availability of the internet?

That question gets bandied around so much every day that some tennis balls would be jealous. But, just like other businesses that continue to be upended by the freedom of the internet, newspapers seem particularly vulnerable. The New York Times is losing readers, other big papers hide content behind "paid access" models on their own websites when anyone can get local and national news on laptops, cellphone screens and any other net-connected device, most often for free.

What do newspapers have left to contribute? A lot, actually -- but not morphing with the times is going to be the downfall of many of them. Newspapers will have to give their content away for free to survive (say some), and in return for losing that revenue, they'll have to get with it in terms of online advertising. Ask Google (NASDAQ: GOOG) about this, as the company owns a billion-dollar empire based on that very principle.

As subscribers (paid ones, mind you) leave in droves, what's to become of many newspaper publishers that rehash the same AP wire stories, mix in local color and commentary and pass off this combo to increasingly leery customers? Some will go the way of the dinosaur unless change is made, as in now. Others, like the Washington Post and The Wall Street Journal, will most likely figure out how to strike a fine balance of excellent, journalistic content and advertising support behind that content.

For others, what value is left to add to the newspaper business that the internet (like Google News) can't destroy? That's the billion-dollar question for the next decade or so. The days of loading up on wire stories while eliminating local, original content to save money are over, and smart publishers knew it years ago. The ones battling with that concept now are already in a world of hurt. Some don't even know it.

Too many newspapers and not enough readers shaking up publishers originally appeared on BloggingStocks on Mon, 24 Sep 2007 15:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>advertisingdjfeaturedgoogindustrylos angeles timesLosAngelesTimesnew tork timesnewspaperNewTorkTimesnytonline advertisingOnlineAdvertisingpublishingwall stret journalWallStretJournalMon, 24 Sep 2007 15:32:00 EST<![CDATA[Smithfield Foods (SFD): While stocks rally, pigs get slaughtered]]>http://www.bloggingstocks.com/2007/09/19/smithfield-foods-while-stocks-rally-pigs-slaughtered/http://www.bloggingstocks.com/2007/09/19/smithfield-foods-while-stocks-rally-pigs-slaughtered/http://www.bloggingstocks.com/2007/09/19/smithfield-foods-while-stocks-rally-pigs-slaughtered/#commentsFiled under: ,

While stocks boomed yesterday on the Fed's 50 basis point rate cut, Smithfield Foods Inc's (NYSE: SFD) stock dropped as analysts wrote that improved pork production in China could lead to excess production being sent to the U.S. market.

Smithfield Foods NYSE: SFD logoDue to this increase in supply, pork prices have declined more than 11% recently, according to a China news report. The recovery of pork production could be a sign that the swine flu, which set the industry back for years, is finally under control in this part of the world.

In August, Smithfield announced it would sell 60 million pounds of pork to China, but it appears the Chinese do not need it all. It looks like we have an ugly supply and demand imbalance building in the pig business.

Smithfield Foods (SFD): While stocks rally, pigs get slaughtered originally appeared on BloggingStocks on Wed, 19 Sep 2007 10:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChinaindustryporkSFDSmithfield FoodsSmithfieldFoodsWed, 19 Sep 2007 10:34:00 EST<![CDATA[BP Bows to public pressure over pollution in Lake Michigan]]>http://www.bloggingstocks.com/2007/08/24/bp-bows-to-public-pressure-over-pollution-in-lake-michigan/http://www.bloggingstocks.com/2007/08/24/bp-bows-to-public-pressure-over-pollution-in-lake-michigan/http://www.bloggingstocks.com/2007/08/24/bp-bows-to-public-pressure-over-pollution-in-lake-michigan/#commentsFiled under: , ,

BP plc (ADR) (NYSE: BP), the oil giant that markets itself as environmentally friendly, has learned that it's best to practice what you preach.

After a month of controversy over the planned $3.8 billion expansion of its Whiting, Ind., refinery -- and how much extra pollution would enter Lake Michigan as a result -- BP said it will not increase the amount of pollutants flowing out of the refinery into the lake. The company had applied for and received a new permit from the state of Indiana allowing it to dump more pollutants -- 1,584 pounds of ammonia per day (a 54% increase from the old limit) and 4,925 pounds of suspended solids (a 35% increase). The solids are tiny sludge particles that pass through water-treatment filters. The permit has been controversial ever since the Chicago Tribune reported about it in mid-July.

Environmental groups, Chicago Mayor Richard Daley, Illinois Governor Rod Blagojevich, the U.S. House of Representatives and Illinois Senator Dick Durbin all pressured BP to stick to its old pollution limits. Opponents gathered 100,000 petition signatures against BP's plans. Lake Michigan is the source of drinking water for Chicago and many other communities and also attracts many sport fishermen. The Whiting refinery is only about 18 miles south of Chicago and is the largest refinery in the Midwest and the fourth-largest in the nation. The expansion would boost output by 30 to 90% at the 400,000-barrel-a-day refinery, which processes Canadian heavy crude.

BP says it will explore ways to expand the refinery without increasing pollution. BP made the right decision to pull back from its pollution plans, but I wonder why they didn't think ahead of time about how the issue would play in public. Indiana can share some of the blame: Their permit appears to have allowed BP to violate the Clean Water Act and it also exempts BP from tough limits on mercury pollution until 2012. Score one for the citizens of Chicagoland in protecting their water supply.

BP Bows to public pressure over pollution in Lake Michigan originally appeared on BloggingStocks on Fri, 24 Aug 2007 18:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BPindustryoilpollutionWhitingFri, 24 Aug 2007 18:02:00 EST<![CDATA[Is it time to short retail stocks?]]>http://www.bloggingstocks.com/2007/07/12/is-it-time-to-short-retail-stocks/http://www.bloggingstocks.com/2007/07/12/is-it-time-to-short-retail-stocks/http://www.bloggingstocks.com/2007/07/12/is-it-time-to-short-retail-stocks/#commentsFiled under: ,

Yesterday, a CNBC report asked whether it was time to short retail stocks, with the consumer showing clear signs of rolling over.

While the consumer is most definitely rolling over and the outlook for revenue and earnings for retail stocks looks bleak, this sector's stock performance might not be too bad.

The Home Depot Inc (NYSE: HD) is a classic example of this. While there is little positive to say about the company's operating performance, its stock performance has begun to disconnect with its poor operating performance despite repeated revenue and earnings misses and being exposed to retail, home improvement and construction businesses, a triple whammy. The stock is actually up following the most recent earnings short fall.

Home Depot has been able to use its pristine balance sheet and big asset sale to finance a huge share repurchase, over $20 billion. Actually, last night Home Depot set the price range for its Dutch auction, saying it will buy back 250 million shares between $39 and $44. Further, from its recent stock performance, investors appear to like the sale of HD Supply and the fact that the retailer will focus more on its home improvement business. As a reminder, Home Depot's stock peaked in 1999 at $65, yesterday it closed around $40.

The market is a discounting mechanism and most of the decline in retail stocks might be over. Rather then mirroring poor top-line and bottom-line performance, retail stock prices might begin to focus on what the Fed will do next and start heading higher.

Unlike the late 1980s when many retailers carried a lot of leverage on their balance sheets and were forced into bankruptcy, this time around the balance sheets of most retailers are underleveraged and are generating ample cash flow despite a slowing economy.

I would start looking at going long the retailer and not shorting it. Home Depot might be a good place to start.

Is it time to short retail stocks? originally appeared on BloggingStocks on Thu, 12 Jul 2007 13:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>HDHome DepotHomeDepotindustryretailshortThu, 12 Jul 2007 13:45:00 EST<![CDATA[Semiconductor demand is moderating]]>http://www.bloggingstocks.com/2007/03/20/semiconductor-demand-is-moderating/http://www.bloggingstocks.com/2007/03/20/semiconductor-demand-is-moderating/http://www.bloggingstocks.com/2007/03/20/semiconductor-demand-is-moderating/#commentsFiled under: , , , , , ,

We blogged late last fall about semiconductor stocks fundamentals rolling over. It appears semi management is beginning to whisper more and more of moderating results to analysts:
  • Lehman cuts Micron Technology Inc's (NYSE: MU) estimates and sees losses for the next three quarters. The increase in demand for memory chips due to Microsoft Corporation's (NASDAQ: MSFT) Vista demanding more memory is not happening.
  • Pacific Crest Securities wrote second quarter chip demand is underwhelming, with notebooks and the Nintendo (OTC: NTDOY) Wii the only bright spots.
  • J.P. Morgan wrote consensus expectations for both the second quarter and all of 2007 are too high and is trimming estimates, The more significant earnings misses could come from Advanced Micro Devices Inc (NYSE: AMD), Cypress Semiconductor Corporation (NYSE: CY), Intel Corporation (NASDAQ: INTC) and On Semiconductor Corporation (NASDAQ: ONNN); with smaller cuts for Texas Instrments Inc (NYSE: TXN), Broadcom Corporation (NASDAQ: BRCM), Altera Corporation (NASDAQ: ALTR), Xilinx Inc (NASDAQ: XLNX) and Fairchild Semiconductor International (NYSE: FCS).
We began blogging about a slowdown in semiconductor stocks in November. However, most of this slowdown could be coming to an end. It appears from both National Semiconductor Corporation (NYSE: NSM) and Texas Instruments recent earnings releases that both companies are seeing the industry downturn ending as inventories have been worked down and backlog is beginning to build again.

The other major points we have been making is that we are entering the seasonally weak period for these stocks. So be cautious about jumping in with both feet in the early Spring.

Most likely, the two drivers for these stocks is the Fed lowering rates or the typically seasonal pick up which occurs in late summer. Since the Fed is on hold, there appears to be no need to jump into these stocks yet. Let the bad news hit these stocks and then start bottom fishing.

Semiconductor demand is moderating originally appeared on BloggingStocks on Tue, 20 Mar 2007 14:53:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>advanced microAdvancedMicroalteraaltramdbrcmbroadcomcycypressfairchild semiconductorFairchildSemiconductorfcsindustryintcintelmicronmicrosoftmsftmunintendontdoyon semionnnOnSemisemisemiconductortexas instrumentsTexasInstrumentstxnxilinxxlnxTue, 20 Mar 2007 14:53:00 EST<![CDATA[Stay on the sidelines during subprime collape]]>http://www.bloggingstocks.com/2007/03/19/stay-on-the-sidelines-during-subprime-collape/http://www.bloggingstocks.com/2007/03/19/stay-on-the-sidelines-during-subprime-collape/http://www.bloggingstocks.com/2007/03/19/stay-on-the-sidelines-during-subprime-collape/#commentsFiled under: ,

Barron's did a great job attacking all the angles associated with the subprime mortgage collapse over the weekend. Below are some of the interesting data points:
  • Subprime woes are spilling over to the prime adjustable-rate-mortgage (ARMs) market. Delinquencies for Prime ARMs are now at levels seen in the 2001 US economic recession.
  • $400 billion in ARMs are scheduled to be reset during 2007 -- with few being able to be refinanced, according to an analyst.
  • Collateralized debt obligations (CDOs) market might not have seen the full impact of the subprime collapse. This market still has to be tested as to its ability to stand up in the mortgage-market downturn.
  • The growth of CDOs investing in the subprime mortgage market has increased from $9.9 billion in 2001 to $114 billion last year.
  • The total size of the subprime mortgage market approximates $1.0 trillion.
  • The subprime mortgage market makes up 15% of the total mortgage market.
Reviewing the above data and the linkage between subprime mortgages and CDOs -- and the growth in these businesses during the past few years -- points to a classic house of cards that needs to unwind. Also, Congress has come down hard on Fannie Mae and Freddie Mac during the past few years, so these government sponsored organizations are not going to be there to support this market. Therefore, this liquidity crisis could last for a while.

Let the big boys battle it out for a while. Typically, after an industry implodes there is plenty of time before a broken industry fixes itself.

Stay on the sidelines during subprime collape originally appeared on BloggingStocks on Mon, 19 Mar 2007 15:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>barron'sbarronscollapseindustrymortgagesubprimeMon, 19 Mar 2007 15:15:00 EST<![CDATA[Regulators going after cable companies]]>http://www.bloggingstocks.com/2007/03/15/regulators-going-after-cable-companies/http://www.bloggingstocks.com/2007/03/15/regulators-going-after-cable-companies/http://www.bloggingstocks.com/2007/03/15/regulators-going-after-cable-companies/#commentsFiled under:

It appears the monopolistic era of the cable company is coming to an end. As the Baby Bells complete the build out of their networks to carry voice, video and data, they are also going to the FCC and saying there is an alternative to the cable companies.

Kevin Martin, the FCC chairman, is defending a proposal to limit the number of pay television subscribers a cable company can reach at 30 percent, saying telephone companies that deploy video would also be capped at that level, according to Reuters.

"We are trying to create a regulatory environment that promotes competition in a lot of these services. What we have seen is that cable prices have increased by about 100 percent since 1996," FCC Chairman Kevin Martin told reporters after testifying at a House telecommunications and Internet subcommittee hearing.

The entire cable industry has been built on being a monopoly. However, this era is now coming to an end. If the Baby Bells cannot compete head on with the cable companies, then regulators will help.

It is important to start listerning to what the cable CEOs say during conference calls about business. Comcast's stock got hit after its recent call due to forecasting higher capex. This surprised the investment community. Higher capex might be a sign that network upkeep is costing more than expected, which possibly means a lower return on investment.

Regulators going after cable companies originally appeared on BloggingStocks on Thu, 15 Mar 2007 14:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baby bellBabyBellcablecmcsacmcskcomcastfccindustrymonopolyThu, 15 Mar 2007 14:05:00 EST