In a report released by the World Economic Forum (WEF), the threat of a US recession placed higher than terrorism as the biggest threat to the world for 2008. "Fears of a U.S. recession coupled with a sudden spike in oil prices replaced terrorism, pandemic disease outbreaks and short-term disasters resulting from climate change as the issues global business leaders are most worried about, said the "Global Risks 2008" report." Well at least they got it right vis-a-vis climate change, or lack thereof.

There is no question that US economic growth is slowing led by the decline in housing, and the impact that slowing growth will have on the global economy as well as thestock market is an important issue. It also will play a big role in the upcoming Presidential elections. But the most important issue?

The report added, " The third major risk - dwindling food supplies - has become an issue not just for developing nations but also for rich countries," the report said, citing steep price increases for staple foods over the past year.

Continue reading Is US recession bigger threat than terrorism?

Is US recession bigger threat than terrorism? originally appeared on BloggingStocks on Wed, 09 Jan 2008 17:08:00 EST. Please see our terms for use of feeds.

After reading Kevin Kelly's stock pick for a volatile market -- Steve Madden (NASDAQ: SHOO) -- I started thinking about all the shoe stocks that have been popping up on my deep value radar of late. A handful of shoe manufacturers and retailers have piqued my interest with low price/book ratios or low price/earnings ratios. Here they are:

Rocky Brands (NASDAQ: RCKY): Rocky owns the ROCKY(R) brand, along with GEORGIA BOOT(R), LEHIGH(R), DURANGO, MICHELIN FOOTWEAR and ZUMFOOT and manufactures DICKIES(R) boots under a licensing deal.

The company disappointed the Street -- actually enraged it -- with its second-quarter results. But the stock trades at a modest price/earnings ratio, and reaffirmed its guidance when it reported the bad quarter. At 0.23 times sales and .60 times book value, this one may be worth scooping out of the bargain bin.

Finish Line (NASDAQ: FINL): Shares of Finish Line, an operator of mall-based footwear stores, have been getting hammered since the company agreed to acquire its much larger competitor Genesco (NYSE: GCO) for $1.5 billion in cash. Following the deal, the combined entity's balance sheet is going to look like something out of those 1950's horror movies you can get on DVD for a buck at Wal-Mart.

Phoenix Footwear Group (AMEX: PXG): These guys make shoes and work boots under labels including Royal Robbins apparel, the Tommy Bahama, Trotters, SoftWalk, H.S. Trask footwear, Altama boots and Chambers Belt. The stock popped a few weeks ago when the company received a nice Defense Department contract, but has since retreated.

Shoe Pavilion (NASADQ: SHOE): So far, this is one of those turnarounds that, like most turnarounds, isn't really turning around. The company operates discount shoe stores and isn't making any money.

Judging from their stock prices, life has been tough for the second-tier shoe companies -- Perhaps competition and pricing pressure from mass merchandisers is hurting sales and margins. But these stocks look, at least superficially, to be cheap, and may be good contrarian bets.

Why are there so many cheap shoe stocks out there? originally appeared on BloggingStocks on Sun, 12 Aug 2007 12:45:00 EST. Please see our terms for use of feeds.

Cinemas look to sequels for success originally appeared on BloggingStocks on Thu, 28 Dec 2006 17:55:00 EST. Please see our terms for use of feeds.