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Sunday Funnies: Motley Fools seem desperate

How desperate can they get? First I received a very long-winded, 10+ page e-mail from Motley Fool with the following sales pitch :That's why I'm offering you the chance to join Motley Fool Stock Advisor for just $79 -- that's 60% OFF our regular membership rate. But a word of warning: This special discount will be available for a limited time only!

Two days later, I received another 10+ page, jargon-filled e-mail blabbering on about the virtues of the newsletter while trying to create a sense of urgency because the clock was ticking and I was going to miss out.

Continue reading Sunday Funnies: Motley Fools seem desperate

The week in preview: Focus returns to earnings: Alcoa, Chevron, Family Dollar

The second half of the calendar year has begun, and earnings return to the spotlight this week. As usual, Alcoa Inc. (NYSE: AA) is among the first of the S&P 500 to report quarterly results. For the second quarter in which Alcoa agreed to sell its wire harness and electrical distribution business and its fastening systems business expanded into Morocco, analysts surveyed by Thomson Reuters expect the New York-based aluminum producer to report swinging to a net loss of $0.34 per share from a profit of $0.66 per share in the year-ago period. Second quarter revenue is expected to have fallen 48.3% to $3.9 billion. The full-year forecast is currently for a loss of $1.04 per share and revenue of $16.7 billion (-38.0%). Alcoa has missed expectations in the past three quarters, by as much as 17 cents per share. The long-term EPS growth forecast is 10.0%, which is better than the sector average. Alcoa slashed its dividend earlier this year, and the First Call consensus recommendation remains to hold AA. However, TheStreet.com recommends it as an against-the-grain pick. At $9.86, shares are down 12.4% since the beginning of the year, and recently have been bumping up against the 200-day moving average.

Continue reading The week in preview: Focus returns to earnings: Alcoa, Chevron, Family Dollar

The week in preview: Bernanke, earnings winners, and Raymond James conference

After testifying before a Senate committee about AIG (NYSE: AIG) last week, the Fed's Ben Bernanke participates in a Council of Foreign Relations event Monday evening.

Economic data due to be released this week include wholesale trade and job vacancies for January on Tuesday morning, the U.S. Treasury budget for February on Wednesday, retail sales for February and business inventories for January on Thursday morning, and the U.S. trade balance for January on Friday morning.

Continue reading The week in preview: Bernanke, earnings winners, and Raymond James conference

The week in preview: Eye on Marvel, KBR, First Solar, Deckers and more

Analysts surveyed by Thomson Reuters expected the parade of earnings declines to continue into the final week of February, with Martha Stewart Living Omnimedia Inc. (NYSE: MSO), Nordstrom Inc. (NYSE: JWN), Home Depot Inc. (NYSE: HD), Wynn Resorts Ltd. (NASDAQ: WYNN), Macy's Inc. (NYSE: M), DreamWorks Animation SKG Inc. (NYSE: DWA), Limited Brands Inc. (NYSE: LTD), Target Corp. (NYSE: TGT), Royal Bank Of Canada (NYSE: RY), Del Monte Foods Co. (NASDAQ: DLM), Kohl's Corp. (NYSE: KSS), Washington Post Co. (NYSE: WPO), Dell Inc. (NASDAQ: DELL), Gap Inc. (NYSE: GPS), Campbell Soup Co. (NYSE: CPB), RadioShack Corp. (NYSE: RSH), and H.J. Heinz Co. (NYSE: HNZ) all expected to post lower earnings for the most recent quarter. Office Depot Inc. (NYSE: ODP), Saks Inc. (NYSE: SKS), and Cooper Tire & Rubber Co. (NYSE: CTB) are expect to have swung to a loss.

Continue reading The week in preview: Eye on Marvel, KBR, First Solar, Deckers and more

The week in preview: A glimmer at the end of the tunnel?

Among all the negative economic data that came out last week was a positive surprise: retail sales were higher in January. A fluke or a glimmer at the end of the tunnel? That may depend on whether we see any positive surprises arising from items on this week's economic calendar:

Continue reading The week in preview: A glimmer at the end of the tunnel?

The week in preview: Alcoa, GE kick off earnings season

Alcoa Inc. (NYSE: AA) kicks off the new earnings seasons when it reports third quarter results on Tuesday. The Pittsburgh-based aluminum producer, which celebrated its 120th anniversary with the launch of its website, is expected to post a profit of 54 cents per share, down 15.6% from the same quarter of last year, on revenue of $7.2 billion, down 2.1%. While Alcoa has tended to fall short of estimates in recent quarters, in the second quarter it did offer a positive surprise of almost 3%. Its long-term earnings per share growth forecast is 14.8%, a little less than the S&P 500, and analysts polled by Thomson Financial on average recommend buying Alcoa, and have for more than 90 days. Shares reached a new 52-week low last week, and are down 48.9% from a year ago.

General Electric Co. (NYSE: GE) is also expected to report a slip in earnings this week. Analysts anticipate that the conglomerate will post a third-quarter profit of 45 cents per share, down just 6.3% from a year ago, on revenue of $47.7 billion, which is up 12.1%. GE has tended to eke out small positive surprises in recent quarters, by less than 1% in the second quarter. GE's long-term earnings per share growth forecast is only 11.0%, which is less than the sector average and the S&P 500. The consensus recommendation has recently swung to hold GE, but Warren Buffett has bought in to the tune of $3 billion. GE also reached a new 52-week low last week as the markets tumbled. GE shares are down 48.1% from a year ago.

Continue reading The week in preview: Alcoa, GE kick off earnings season

Best Buy considered one of the 'worst stocks for 2008'

Best Buy, Inc. (NYSE: BBY), which saw modest sales gains in the holiday shopping month of December, is set to dominate the consumer electronics sector in 2008. Circuit City Stores, Inc. (NYSE: CC) is flailing its arms in surrender and competitors like Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) just cannot match the consumer experience for gadgets and gizmos that Best Buy offers.

Although Best Buy has a commanding lead in the consumer electronics marketplace in my opinion, the company's stock has been classified as one of the "worst stocks" to own in 2008 by The Motley Fool. Technically, the analysis is something I agree with. Indeed, there are many good things going for Best Buy going into 2008, but at the same time, consumer spending may decline as energy and food prices continue to be high. Consumers may very well curb their discretionary spending on flat-panel televisions, iPods and laptop PCs.

However, I don't agree with the statement that competitors are becoming better in the consumer electronics space. Wal-Mart has really made a push towards displaying consumer electronics much like Best Buy does. Despite a helpful customer service experience, breadth of selection and pleasing overall environment, it doesn't come close to Best Buy's customer experience (my two cents).

How about the prices? Best Buy is right there along with Wal-Mart, for example. From what I have seen, Wal-Mart's electronics products pricing is not any lower than comparable products at Best Buy. Wal-Mart also has no incentive program like Best Buy's ultra-successful Rewards Zone loyalty program. Considering all that, where would you shop for that next 50-inch plasma TV?

An interesting perspective on 2008: Don't buy real estate dips, financials, look at commodities, some foreign currencies

Motley Fool member NICKDAWG had a very interesting and opinionated post on the site's popular message board, the Liquid Lounge. The post, which can be found here, listed the member's 10 predictions for 2008. In my opinion, many of his thoughts are very logical and worthwhile. I'd like to focus on a couple of his points (bold-face) in specific, though:

Do not buy any "dips" in houses or real estate


I think that for most retail investors, avoiding real estate (especially in the first half of this year) is a very smart decision. Don't be a hero and try and catch the bottom in these stocks. It's simply not worth the risk.

Sell consumer oriented issues. Don't "bottom fish" in the financials. Favor high quality, special situations with strong balance sheets.

In my opinion, bottom-fishing financials in the late first half of this year should prove to be a low risk, market-beating opportunity. Many of the financials that have been marked down in the most recent downturn have almost no risk of going bankrupt. I think buying many of these stocks now will prove to be a smart decision several years from now but I do believe that many of them haven't yet bottomed. I am going to post about this in coming weeks.

Continue reading An interesting perspective on 2008: Don't buy real estate dips, financials, look at commodities, some foreign currencies

Investing in Colorado: Vail Resorts (MTN), Dynamic Materials (BOOM), Newmont Mining (NEM)

Where can you find the "Wall Street of the West?" In Colorado, of course -- specifically, Denver's 17th Street financial district.

Colorado's economy has come a long way from its foundation on trapping and mining. Denver's location, equidistant between Los Angeles and Chicago, between Seattle and New Orleans, has helped the Centennial State become the economic center of Rocky Mountain states -- even Denver's time zone and elevation help it keep in touch with the rest of the world. It's no wonder there's a large federal government presence in the state (U.S. Air Force Academy, NORAD, NOAA, Denver Mint, U.S. Geological Survey).

Companies such as Lockheed-Martin (NYSE: LMT), Qwest Communications (NYSE: Q), Comcast (NASDAQ: CMCSA), Molson Coors (NYSE: TAP), and Crocs (NASDAQ: CROX) offer a sense of the diversity of the state's economy. And so do the three companies examined here: Vail Resorts Inc. (NYSE: MTN), Dynamic Materials Corp. (NASDAQ: BOOM), and Newmont Mining Corp. (NYSE: NEM).

Continue reading Investing in Colorado: Vail Resorts (MTN), Dynamic Materials (BOOM), Newmont Mining (NEM)

Grainger (GWW): A lifetime stock

Demand for new residential and commercial construction continues to be weak in many parts of the country, though that will change shortly in California. But maintenance of existing facilities continues to be a growth industry. W.W. Grainger (NYSE: GWW) is the leading supplier of facilities maintenance products. The company posted record numbers in its most recent earnings report. Sales increased 9% to $1.9 billion, operating earnings increased 15% to $174 million, and EPS increased 11%. Based on these figures, CEO Richard Keyser has revised FY 2007 EPS guidance from $4.75-$4.90 to $4.85-$4.95.

Grainger is pursuing a market expansion strategy and a product line expansion simultaneously. The company has added 70,000 new products in its U.S. locations, opened four new U.S. locations, and continues to exit existing low margin contracts as they expire in 2007. Daily sales have increased each month for July, August, and September. Sales in the U.S. increased 9%, dwarfed by the 24% increase in sales in Mexico and the opening of two more locations. Grainger is also entering the facilities maintenance market in China, a smart move given the massive amount of construction in progress in China.

But current numbers are not the only reason to check out Grainger. Motley Fool lists Grainger as a stock to own for the rest of your life, based on Grainger's dividend pay out record. The current dividend yield is 1.5%, with a payout ratio of 26% and YoY quarterly dividend growth in excess of 20%. In order for a company to pay out increasingly higher dividends over the long haul, it must be able to generate sufficient amounts of cash regularly and repeatedly. Grainger has certainly demonstrated it can do that. The stock traded recently at $89.05, up 16 cents.

Visit AOL Money & Finance for more earnings coverage

Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX)

My recent Investing in Ontario post took a look at the Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC), and Toronto-Dominion Bank (NYSE: TD); three public companies examined by the Motley Fool this past summer.

However, Ontario is more than just Canada's financial center. Its abundance of resources and location on Great Lakes have made Ontario a manufacturing powerhouse, including steel production and automobile manufacturing in southern Ontario, and mining and forestry in the north. Toronto is Canada's film and media center, as well as an important tourism destination. Niagara Falls is one of world's most popular tourist destinations. Other Ontario companies the Motley Fool liked include Research in Motion Ltd. (NASDAQ: RIMM), Nortel Networks Corp. (NYSE: NT), and IMAX Corp. (NASDAQ: IMAX).

Research in Motion (RIM), Canada's largest public company, is well know for its BlackBerry smart phones, but it also provides software development tools and produces radio-based modems used in portable devices. The consensus recommendation of analysts surveyed by Thomson Financial is to buy RIM, and has been since April. RIM met analysts' earnings per share estimate when it reported second quarter FY2008 earnings in early October, and Wall Street expects EPS of 62 cents in the third quarter, double the 31 cents actual from a year ago. RIM has a five-year EPS growth rate of 73.5%, easily beating the S&P 500 and the technology sector average. RIM's share price has been climbing since a share split in August, to reach a 52-week high of $128.36 on Tuesday; it opened today at $124.75. Also this week, RIM announced plans to sell the BlackBerry in China, and introduced Facebook for the BlackBerry as well. For more on Microsoft Corp.'s (NASDAQ: MSFT) challenge to RIM and other RIM-related news, see Bloggingstocks' RIM coverage.

Continue reading Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX)

Investing in Oregon: Electro Scientific (ESIO), Mentor Graphics (MENT), Triquint (TQNT), Tektronix (TEK)

OregonMy recent Investing in Oregon post took a look at some companies that the Motley Fool had featured in its investigation of investment opportunities in the Beaver State, including Precision Castparts Corp. (NYSE: PCP), StanCorp Financial Group Inc. (NYSE: SFG), FLIR Systems Inc. (NASDAQ: FLIR), and Columbia Sportswear Co. (NASDAQ: COLM).


But the Motley Fool article also mentioned that one of the most prominent business influences in Oregon wasn't even headquartered in the state: semiconductor giant Intel Corp. (NASDAQ: INTC) from Santa Clara, California. It also included mention of four Oregon-based businesses that provided support for Intel: Tektronix Inc. (NYSE: TEK), Mentor Graphics Corp. (NASDAQ: MENT), Triquint Semiconductor Inc. (NASDAQ: TQNT), and Electro Scientific Industries Inc. (NASDAQ: ESIO). One could imagine that Intel's impressive earnings report this week should have been good news for these supporting companies.

Beaverton-based Tektronix, widely known as Tek, is one of the leading makers of test and measurement equipment, such as digital multimeters, logic analyzers, and curve tracers, and oscilloscopes. Tek will win its seventh technical Emmy this year. Tek beat Wall Street expectations in its previous three quarters, reporting earnings per share of 40 cents for its first quarter FY2008. But the consensus of analysts surveyed by Thomson Financial was to hold shares of Tek. The share price reached a 52-week high of $37.95 on Monday when it was announced that Danaher Corp. (NYSE: DHR) will acquire Tek. Tool and equipment maker Danaher just announced record third quarter results.

Continue reading Investing in Oregon: Electro Scientific (ESIO), Mentor Graphics (MENT), Triquint (TQNT), Tektronix (TEK)

Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)

Its abundance of resources and location on the Great Lakes have made Ontario an economic powerhouse. Canada's capital, Ottawa can be found there, as well as its largest city, Toronto, which is also Canada's financial hub. Seven of Ontario's eight largest companies are financial institutions, and Toronto is also the home of one of the largest stock exchanges in the world. When the Motley Fool took a look at stock investment opportunities in Ontario this past June, three of the companies they focused on were financial institutions: Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC) and Toronto-Dominion Bank (NYSE: TD). Considering the credit crunch and the weakness of the U.S. dollar, I thought it might be interesting to see how those companies are faring now.

The Royal Bank of Canada, also known as RBC Financial Group, is Canada's largest financial institution. It has 1,300 domestic locations and offices in 30 countries. In September, RBC's Gord Nixon won Canada's Outstanding CEO of the Year award for 2007. More recently, RBC announced the acquisition of a Caribbean bank, and it was one of four Canadian banks affected by restructuring at VISA. With RBC's five-year earnings per share growth rate of 26.5% (better than the S&P 500), the consensus recommendation of analysts surveyed by Thomson Financial is to buy RBC, despite missing earnings expectations for the past two quarters. RBC's share price is near an all-time high on the NYSE, closing Thursday at $57.09 on the NYSE. RBC will release its next quarterly report on November 30.

Continue reading Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)

Investing in Nebraska: Cabela's (CAB), Buckle (BKE), and Valmont (VMI)

Earlier this summer the Motley Fool took a look at investment opportunities in Nebraska. Apparently, only 18 public companies are based in the cornhusker state, the largest of which are familiar names to even the most casual investors: Berkshire Hathaway (NYSE: BRK.A), Union Pacific Corp. (NYSE: UNP), Conagra Foods Inc. (NYSE: CAG), and TD Ameritrade (NASDAQ: AMTD). But the Motley Fool also mentioned two smaller, less-familiar stocks: sporting goods retailer Cabela's Inc. (NYSE: CAB) and fashion retailer The Buckle Inc. (NYSE: BKE).

Sidney-based Cabela's was founded in 1961 and went public in 2004. Cabela's is considered a buy by the consensus of analysts surveyed by Thomson Financial, but a closer look shows that they are split between strong buy and hold. The share price reached a 52-week high of $28.80 in early August after Cabela's second quarter results beat Wall Street expectations. The price was $23.91at the close on Wednesday. The Motley Fool points to tough same-store sales and insider trading as reasons for Cabela's "sophomore slump." In other words, high expectations from the IPO have worn off and its time to consider buying. In addition, Motley Fool, like Consumer Reports before it, likes Cabela's VISA credit card. Cabela's was also recently included on S&P Small Cap 600 index, and it made the 2007 Forbes list of 100 best mid cap stocks. Cabela's will release third quarter results on November 1.

Continue reading Investing in Nebraska: Cabela's (CAB), Buckle (BKE), and Valmont (VMI)

Will FedEx deliver on Q4 earnings?

Analysts, shareholders (and would-be shareholders), and many others no doubt will be keeping on eye on Memphis-based FedEx Corp. (NYSE: FDX), the global leader in express transport and delivery, when it reports Q4 2007 earnings next Wednesday, June 20. Many consider FedEx to be a bellwether for the economy.

Since FedEx reported a mild Q3 back in March, the trend of its share price hasn't been especially impressive these past three months. Blame it on the economy, fuel costs, the weather, or stiff competition from rivals United Parcel Service (NYSE: UPS) and DHL, a Deutsche Post (LSE: DPO) company, but FedEx has struggled of late, as reflected perhaps in the BloggingStocks Battle of the Brands match-up: FedEx vs. UPS. Analysts' feelings are mixed on FedEx as well, and the company does still face such troubles as discrimination lawsuits.

But it's no accident that FedEx is within the Fortune 500's top ranks. It continues to expand, both domestically and internationally, and stands to benefit from impending increased air traffic between China and the United States. General Motors (NYSE: GM) recently declared FedEx its 2006 Supplier of the Year, and the FAA has given FedEx a vote of confidence as well. And in May, FedEx announced a 10% boost in its cash dividend, to ten cents per share. The Motley Fool thinks FedEx may be a bargain, as well.

According to Thomson Financial, the brokers' consensus on FedEx is buy (6 buy, 7 strong buy, 7 hold). Its P/E is 15.89 (compared to 11.96 industry average), and its market cap is $33.16 billion. When FedEx reports earnings next week, Wall Street is expecting revenue of $9.14 billion, or earnings per share of $1.89, compared to $1.82 actual last quarter, and $1.35 a year ago. Its price target is $124.42; the 52-week low was $97.79 in August 2006 and the high was $121.42 near the end of this past February. FedEx closed Wednesday at $108.82.

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DJIA+132.7910,450.95
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Last updated: November 23, 2009: 09:02 PM

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