Recession posts
FeedPosted Mar 30th 2011 12:30PM by Michael Fowlkes (RSS feed)
Filed under: Employees, Economic Data, Workspace, Recession
According to the ADP Employer Services Report, the private sector added 201,000 new jobs in March, basically in-line with 203,000 new jobs that analysts had been expecting to see.
February's figures were revised downwards to 208,000 from a previously estimated 216,000 new jobs.
March's employment gains bring the four-month average of new jobs to 211,000, more than enough to keep the labor track on path. Analysts estimate that the economy needs to add 125,000 new jobs each month in order to keep up with population growth, so any jobs over that figure result in a lower unemployment figures.
Continue reading Labor Market Continues to Show Signs of Improvement
Posted Mar 30th 2011 9:00AM by Michael Fowlkes (RSS feed)
Filed under: Before the Bell, Earnings Reports, Forecasts, Good news, Products and Services, Family Dollar Stores (FDO), Recession
Discount retailer Family Dollar Stores Inc. (FDO) reported its fiscal second quarter results this morning, topping analyst estimates and sending the stock higher in premarket trading.
For the quarter, Family Dollar reported it earned 98 cents per share, topping analyst estimates by a penny. During the same period last year, the company earned 81 cents per share.
Continue reading Family Dollar Earnings Top Estimates, Sending Shares Higher
Posted Mar 7th 2011 6:00PM by Hilary Kramer (RSS feed)
Filed under: Housing

Despite recent signs of economic recovery, the mortgage crisis has proved to be one that has refused to go away despite valiant efforts of government bailouts, incentive programs and rate adjustments. In fact, with RealtyTrac projecting the foreclosure number for 2011 to be over 1 million for the second year in a row, it looks like the problem is likely to worsen before it gets better, especially in light of the government's failing "relief programs."
At the top of the foreclosure list is female homeowners -- in a market where the number of women buying homes in the past decade has doubled and, in a recent poll, shown on average to control approximately 75% of the family finances.
Continue reading Women Top the Home Foreclosure List: Here's What to Do
Posted Dec 6th 2010 11:00AM by Connie Madon (RSS feed)
Filed under: Earnings Reports, Market Matters, Recession
Recessions are a good time for discount retailers. Dollar General (DG) is a retailer of low priced goods, which are in demand during this period of high unemployment. Consumers have less to spend and gravitate to stores like Dollar General.
The Wall Street Journal (subscription required) reported that Dollar General's fiscal third-quarter profit rose to $128.1 million or 37 cents a share, up from $75 million or 24 cents a share a year earlier. Sales rose 10% to $3.22 billion and were 4.2% higher on a same-store basis. Compared to prior years, sales were up 13% and 9.2% respectively.
Continue reading Dollar General's Net Earnings Soar, Shares Fall
Posted Nov 21st 2010 11:10AM by Connie Madon (RSS feed)
Filed under: Economic Data, Entrepreneurs, Small Business, Recession
Fewer business start-ups are being launched, reports the the Wall Street Journal. The Labor Department said that the number of companies with at least one employee fell by 100,000, or 2%, in the year ended March 31. That was the second worst performance in 18 years -- the worst one was a drop of 3.4% the previous year.
Why are these numbers important? In past recessions small business start-ups were the key to spurring the economy. In the three quarters that ended in March, newly formed companies created only 2.6 million jobs, 15% fewer than in the first three quarters of the last recovery.
Continue reading Fewer Small Business Start-Ups Mean Fewer Jobs
Posted Oct 2nd 2010 10:30AM by Ted Allrich (RSS feed)
Filed under: Google (GOOG), Microsoft (MSFT), Intel (INTC), International Business Machines (IBM), Comfort Zone Investing, Housing
While the stock market has moved up nicely in the last three months, it's hardly moved stocks above reasonable valuations. IBM (IBM) sells at 12.77 times earnings. Intel (INTC) goes for 11.67 times. Microsoft (MSFT) has a price-to-earnings ratio (P/E) of 11.74. Google (GOOG) sports one of 22.8, but even that isn't too noteworthy when many of these stocks at one time or another traded at 50 to 100 times their earnings. Of course, those were days when there was only up, and everyone was on Ecstasy. Thankfully, every stock, and everyone, is back on earth.
Those relatively benign valuations come from the reality of a slow global economy. In the U.S. it's more like a smashed-into-a-brick-wall economy. No matter the degree of the economic slowdown, all investors are cautious, not willing to bid up stocks when they believe things will only get worse, that profits will only decrease.
Continue reading Comfort Zone Investing: Why the Next Rally Could Be a Monster
Posted Sep 9th 2010 12:30PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy
This is a market for boring stocks. By that I mean, given that objective economic events seem to diametrically alter the investing landscape every few days or so, you need a few "totally un-sexy" plays that perform despite the aforementioned tumult.
And auto parts giant O'Reilly Automotive (ORLY), which I first wrote about here on May 18, 2009 at a price of $37.02, fits the bill.
O'Reilly's 2010 revenue should increase 9% to 12%, including revenue from an acquisition. Same store sales should increase 5% to 7%. Margins will likely increase.
Continue reading O'Reilly Automotive: A Stock That's Right for the Times
Posted Sep 7th 2010 4:40PM by Mark Fightmaster (RSS feed)
Filed under: Economic Data, Financial Crisis
I don't think I am breaking any news that you didn't expect, but the Associated Press announced that its monthly analysis of conditions around the country showed that
economic difficulties continued during July.
The study showed that unemployment, foreclosure and bankruptcy rates didn't change when compared to June. In areas where the workforces are dependent upon agriculture, mining, wholesale trade, and finance, the economic stress eased. Unfortunately, retail and real estate employees saw higher distress during July. The study shows that roughly 54% of the 3,141 counties in the U.S. saw economic stress decline (24 of the 50 states).
Continue reading Economic Struggles Continued in July
Posted Sep 1st 2010 2:00PM by Sheldon Liber (RSS feed)
Filed under: Forecasts, Ford Motor (F), General Motors (GM), Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), Amer Intl Group (AIG), Wells Fargo (WFC), Bargain Stocks, Chasing Value™, Recession, Financial Crisis, Telefonica SA (TEF)

The most common question I get from friends, family, business associates and, well, everyone is -- Do you expect a double-dip recession? My answer is an unequivocal "No!"
This does not mean that I think we are going to experience a dramatic improvement in the economy. We are not. Many of my colleagues seem to oppose my view, so it is not without some trepidation that I take this stand. However, I see the glass half full. My view is that others are overly influenced by "group-think" and the calls of doom.
I do think that we are currently adrift in uncharted waters and we may have a faulty rudder, too. The biggest fear I have is that everyone jabbering about another deep recession may actually cause one.
The following supports why I feel, from what we know, that we are not destined for a double-dip recession:
Continue reading Chasing Value: No Double-Dip Recession
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