Well, well, well...what to do now, right? CarMax is an interesting company in an interesting time. It sells used cars during a period when new cars aren't selling too well. We all know about the problems at Ford (NYSE: F) and General Motors (OTC: GMGMQ). But that isn't reason enough to put money down on this stock. Especially not after a rally like we're seeing today.

Continue reading My portfolio won't be test-driving CarMax

My portfolio won't be test-driving CarMax originally appeared on BloggingStocks on Fri, 19 Jun 2009 15:20:00 EST. Please see our terms for use of feeds.

Wall Street was probably encouraged by something else as well. If you take a look at the actual release, head on down to the statement of cash flows. Last year at this time, Tyson generated $144 million in cash from operations during the six-month period. This year, the company made $407 million from operations. Some nice changes in working capital helped out.

Continue reading Tyson beats estimates, stock rallies -- can you buy now?

Tyson beats estimates, stock rallies -- can you buy now? originally appeared on BloggingStocks on Mon, 04 May 2009 15:30:00 EST. Please see our terms for use of feeds.

Crocs (NASDAQ: CROX) reported earnings for the fourth quarter after the market close on Thursday. The shares were up almost 10% on the news during the after-hours trading session since the footwear company beat expectations by a wide margin. But let me tell you something: I cannot imagine any sane investor wanting to risk his hard-earned capital on this stock. The numbers are just too dismal.

Wall Street was bracing for a loss of $0.56 per share in the fourth quarter. Well, Crocs did much better than that. It lost only $0.40 per share. Great, right? Yeah. Let's look at the top line: it declined by 43%. Does that put the earnings beat in perspective? I sure hope it does. How about the fact that gross margin went down to 44% compared to 56% in the year-ago period -- does that also lend some context?

Continue reading Crocs beats Q4 expectations, but don't be fooled ...

Crocs beats Q4 expectations, but don't be fooled ... originally appeared on BloggingStocks on Fri, 20 Feb 2009 08:15:00 EST. Please see our terms for use of feeds.

Kraft (NYSE: KFT), whose supermarket competitors include Campbell Soup (NYSE: CPB), ConAgra (NYSE: CAG), and Kellogg (NYSE: K), reported results for Q3 on Wednesday, and although they weren't stunning, they were apparently good enough for investors, as the stock was higher after the release.>

Of course, today is a funny day, with the Fed decision on rates and all. Still, Kraft proves that it continues to chug along with its popular brands and pricing strategies.

The food company said that net organic revenue grew by 7%. Price increases helped out quite a bit. Unfortunately, management said that volume decreased. That's not great news, as it shows that consumers are reacting to the costs. Adjusted earnings per share, which exclude the significant effects of a gain from a divestiture, came in at $0.44.

According to Melly Alazraki's Before the Bell article, the bottom line only met expectations. Furthermore, the current adjusted earnings performance represented a 0% growth rate. Ouch, Kraft! And then we come to the guidance. It's sort of good, sort of neutral. Management raised its guidance for organic net revenue growth for the year by 1% to 7%, but the outlook for adjusted earnings per share remains the same at $1.88. I suppose this is really more neutral than good since it's the bottom line that most investors care about.

Continue reading Kraft's Q3: A passing grade

Kraft's Q3: A passing grade originally appeared on BloggingStocks on Wed, 29 Oct 2008 14:15:00 EST. Please see our terms for use of feeds.

Kraft (NYSE: KFT) had one heck of a second quarter. It was a lot better than I thought it would be. As Melly Alazraki reported in her Before the bell post on Monday, Kraft managed to demolish analyst expectations by delivering 58 cents per share to the bottom line, a number that no only represented a 16% growth but that was 8 cents better than what Wall Street analysts were looking for. Overall, net revenues soared over 21%, while organic-revenue growth came in at roughly 7%. Not bad at all.

Even with the hellish inflation of input costs dogging it, Kraft managed to engage a price-increasing strategy that not only defended the bottom line but helped it thrive. How could it do this? Brand power, my friends. Looks like investors underestimated that power, and the fact that people are willing to pay more for the things they love.

Of course, it might be understandable that investors would not be willing to credit Kraft and its portfolio with such earnings-beating potential considering that there's so much competition out there from generic brands and that fuel costs are eating into supermarket budgets. Yet, the numbers support Kraft's current strategies. Volume wasn't too negatively affected in my opinion, and the margins turned out to be just fine -- something investors love to see when inflation is out front every single day in the headlines.

Continue reading Kraft and its brand equity deliver an earnings-beating quarter

Kraft and its brand equity deliver an earnings-beating quarter originally appeared on BloggingStocks on Tue, 29 Jul 2008 11:52:00 EST. Please see our terms for use of feeds.

Back in April, I announced that I bought some shares of General Electric (NYSE: GE) for a trade. How has my trade been going? Pretty lousy.

I was amazed when I read a recent article by Melly Alazraki. She discussed GE's recent accomplishment (if you can call it an accomplishment) of hitting a price level not seen since May 2004. That price was $30.39. Yesterday, the intra-day low was $30.21, which was also the new 52-week low. What was the price I paid when I began my trading position? $32.09. As can be seen, I'm losing money on paper at the moment. Of course, when I bought GE at that price, I was not necessarily looking to be out of the stock the next day. I realized that it might be a few months, maybe more, before it rebounded back to perhaps $37 or $38 per share. So, my definition of trading in this case might be a little different than that of the typical trader.

However, I have to admit that, in the back of my mind, I thought the stock would have been higher by at least a couple bucks at this point. Why? Well, the dividend yield seemed too attractive to me. I mean, even now, isn't it slightly crazy that GE is yielding over 4%? How long will Wall Street allow it to exist at this level?

Continue reading Is General Electric a buy or a sell?

Is General Electric a buy or a sell? originally appeared on BloggingStocks on Wed, 28 May 2008 10:00:00 EST. Please see our terms for use of feeds.