Savings Experiment: Snow Removal
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Proctor & Gamble (PG) competes with Unilever Group (UN), Revlon (REV) and L'Oreal (LRLCY) in the male grooming market. P&G's share in the global grooming market has risen steadily since its acquisition of Gillette in 2005 to a whopping $57 billion in 2005. We expect this positive trend to continue, driven by growth in emerging markets like India and China, expansion of product lines, and acquisition of newer brands.
UN posts
FeedPositive Outlook for P&G's Share of Grooming Market
Continue reading Positive Outlook for P&G's Share of Grooming Market
Unilever Receives a Double Upgrade
Consumer-goods behemoth Unilever (UN) was among the stocks making headway Tuesday morning. The British firm received an upgrade to overweight from underweight by brokerage firm Morgan Stanley, which stated, "We double upgrade Unilever to overweight, as we see the risk/reward profile for the shares as more attractive now than at any point in the past three years."
I am not going to agree or disagree with the decision for the upgrade right now; I want to take a look at the equity's chances to further this rally (at more than 3% as of this writing). There is evidence for both the continuation and the stall of the rally
Analyst Calls: ADSK, ATK, BCS, GENZ, H, ROCK, SFD, UL, VIA ...
Analyst Upgrades
- Credit Suisse upgraded Alliant Techsystems (ATK) to outperform from neutral following the company's increased FY11 guidance. The firm has an $85 target on the stock.
- FBR Capital upgraded Hyatt Hotels (H) to market perform from underperform following the company's Q2 results. The firm raised its target for shares to $44 from $38.
- BB&T upgraded to Smithfield Foods (SFD) to buy from hold, citing tighter supplies, strong pork prices and improving export demand. The firm has a $19 target on the stock.
- Holly (HOC) was upgraded to outperform from market perform at BMO Capital.
- Cogent Communications (CCOI) was upgraded to outperform from neutral at Cowen.
- Catalyst Health (CHSI) was upgraded to overweight from equal weight at First Analysis.
Continue reading Analyst Calls: ADSK, ATK, BCS, GENZ, H, ROCK, SFD, UL, VIA ...
Options Update: Sara Lee January volatility flat into personal care sale
Sara Lee (NYSE: SLE) closed at $10.54. Unilever (NYSE: UN) agreed to buy SLE's personal-care and European detergent unit for $1.88 billion. SLE's board of directors authorized a $1 billion share repurchase program. SLE October option implied volatility is at 39, November is at 38; near its 26-week average of 38 according to Track Data, suggesting non-directional price movement.
MSCI Brazil Index (NYSE: EWZ) is recently up 37 cents to $65.04 in pre-open trading. Brazil Bovespa Stock Index is up 0.1%. EWZ call option volume of 14,379 contracts compares to put volume of 22,765 contracts. EWZ October option implied volatility is at 37, October and January is at 38; below its 26-week average of 45, according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Cramer on BloggingStocks: Freeport-McMoRan must come to the market
What will Richard Adkerson do? I can tell you what the CEO of Freeport-McMoRan (NYSE: FCX) (Cramer's Take) ought to do in the wake of the Bank of America-Merrill Lynch upgrade to buy from sell. He ought to do the biggest darned equity offering in history.
I like Richard. He's candid, he's a great copper man, but he spent too much at the high on Phelps Dodge and wasn't prepared when copper prices plummeted as his balance sheet's simply not so hot. So he had to cut his dividend at the bottom, literally at the exact bottom.
Continue reading Cramer on BloggingStocks: Freeport-McMoRan must come to the market
Cramer on BloggingStocks: The seductive pull of the early cycle
TheStreet.com's Jim Cramer is seeing signs of a coming boom, but he's still being cautious here.
If you had to define the early cycle, if you had to outline what stocks should be soaring coming out of a recession into a boom and which ones should be faltering, you would have to say the action in this market in the last month is the quintessential behavioral pattern.
What are the components of the early cycle? First, it's the homebuilders. As is typical coming out of a recession, the stocks precede the bottom of housing. That's exactly what's happening with the lowest permits and highest affordability and best mortgage rates and massive inventory. Everywhere, except on Wall Street reporting, the bottom is bursting out. When you read the lead story in the Sunday Philadelphia Inquirer, and it is all about the thousands of prospective homebuyers heading south to pick up condos and homes for half of what they were worth two years ago -- or even less -- and you know that virtually no one has broken ground in the Sunshine State in a year, you can bet that the bottom's actually behind us. This housing market has wiped out all but the most stable private builders and even the public ones are merging as we know from Pulte (NYSE: PHM) (Cramer's Take) and Centex (NYSE: CTX) (Cramer's Take). So, in the next cycle, you can see some profitability developing year over year even though the new homes don't have much margin because the foreclosed homes next door are going for a song. And don't believe this won't change the dynamic of future foreclosures. In most areas, rent is higher than the interest on mortgages, so you will find that second or third job needed to stay in your home. The incentive structure's radically different than a year ago.
If you had to define the early cycle, if you had to outline what stocks should be soaring coming out of a recession into a boom and which ones should be faltering, you would have to say the action in this market in the last month is the quintessential behavioral pattern.
What are the components of the early cycle? First, it's the homebuilders. As is typical coming out of a recession, the stocks precede the bottom of housing. That's exactly what's happening with the lowest permits and highest affordability and best mortgage rates and massive inventory. Everywhere, except on Wall Street reporting, the bottom is bursting out. When you read the lead story in the Sunday Philadelphia Inquirer, and it is all about the thousands of prospective homebuyers heading south to pick up condos and homes for half of what they were worth two years ago -- or even less -- and you know that virtually no one has broken ground in the Sunshine State in a year, you can bet that the bottom's actually behind us. This housing market has wiped out all but the most stable private builders and even the public ones are merging as we know from Pulte (NYSE: PHM) (Cramer's Take) and Centex (NYSE: CTX) (Cramer's Take). So, in the next cycle, you can see some profitability developing year over year even though the new homes don't have much margin because the foreclosed homes next door are going for a song. And don't believe this won't change the dynamic of future foreclosures. In most areas, rent is higher than the interest on mortgages, so you will find that second or third job needed to stay in your home. The incentive structure's radically different than a year ago.
Continue reading Cramer on BloggingStocks: The seductive pull of the early cycle
G-20 members agree on a $1 trillion stimulus and other reforms
The G 20 countries wrapped up their ground breaking summit with amazing cooperation among members. The tackled a wide range of problems and were able to agree on just about every key issue.
Let's look at some specific policies that the G 20 members agreed upon:
- Regarding the matter of stimulus, they agreed to boost the International Monetary Fund's lending power to around $750 billion.
- They also unveiled a $250 billion expansion of the IMF's reserve currency, referred to as "special drawing rights." This will boost liquidity in the global financial system by expanding member countries' foreign exchange reserves.
- They agreed to selling gold to help poor countries.
Continue reading G-20 members agree on a $1 trillion stimulus and other reforms
Cramer on BloggingStocks: Lower oil will be a boon -- next year
These year-over-year declines in energy costs along with the inability of the Chinese market to fall much further are the two bright spots that long-term investing can give us. The notion that there are consumer-products companies that have put in price increases that for the most part are sticking and that the developing world could come back with lower rates, makes me feel that the Unilever (NYSE: UN) (Cramer's Take)/Procter (NYSE: PG) (Cramer's Take)/Colgate (NYSE: CL) (Cramer's Take) cohort could have a remarkable rally.
But not until after this current quarter, because the price decreases have been incredibly slow to come in and the dollar is so strong.
I key on those because frankly, oil looks like it is going to struggle to hold $50, and while that is a sure sign of a terrible recession coming, it is, alas, good news for the companies like Kellogg (NYSE: K) (Cramer's Take) and General Mills (NYSE: GIS) (Cramer's Take) that use energy and whose product pricing has held.
Continue reading Cramer on BloggingStocks: Lower oil will be a boon -- next year
Analyst calls: SAI, KLAC, QCOM, MRVL, UL, CMG, HPQ, AAPL, DELL ...
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Analyst upgrades:- Oppenheimer upgraded shares of Shanda Interactive (NASDAQ: SNDA) to Outperform from Perform following the company's better-than-expected quarter to reflect its growth acceleration in the casual games platform and margin improvements.
- SAIC (NYSE: SAI) was upgraded to Outperform from Market Perform following the solid Q2 report and guidance.
- Susquehanna upgraded Zumiez (NASDAQ: ZUMZ) to Positive from Neutral citing positive August comps, revised merchandising, easier comps, and solid financial position.
- Goldman Sachs upgraded Pharm Product Development (NASDAQ: PPDI) and Steel Dynamics (NASDAQ: STLD) to Buy from Neutral.
- Novellus (NASDAQ: NVLS) was raised to Overweight from Equal Weight at Morgan Stanley.
- Morgan Stanley downgraded the Semiconductor Capital Equipment sector to In-Line from Attractive citing optimistic expectations for Q4 orders following the recent bounce in stocks. The firm downgraded Lam Research (NASDAQ: LRCX) to Underweight from Overweight and KLA-Tencor (NASDAQ: KLAC) KLAC to Equal Weight from Overweight.
Continue reading Analyst calls: SAI, KLAC, QCOM, MRVL, UL, CMG, HPQ, AAPL, DELL ...
Cramer on BloggingStocks: General Mills will kill with lower costs
TheStreet.com's Jim Cramer says this consumer-products titan has weathered the storm and should enjoy lower inputs. General Mills (NYSE: GIS) (Cramer's Take) hits another 52-week high. This company has been one of the great standout performers this year, just a juggernaut, even though it is a gigantic buyer of grains and a huge user of cardboard boxes and plastic wrapping. Plus, it needs gasoline to deliver product. Some of this move has to be attributed to projections of huge declines in raw costs. Those are going to happen, as we know from the commodities.
But perhaps it is worth noting that few packaged goods companies -- perhaps Heinz (NYSE: HNZ) (Cramer's Take) is an exception -- dominate and innovate as well as GIS does. It has always been one of the great brand producers and acquirers, and also a company that can take out costs better than anyone. When I compare how a Unilever (NYSE: UN) (Cramer's Take) or a Clorox (NYSE: CLX) (Cramer's Take) has handled the raw costs to how General Mills has performed, it is almost as if GIS is a pharmaceutical with no raw cost exposure whatsoever.
Continue reading Cramer on BloggingStocks: General Mills will kill with lower costs
Before the bell: Undecided ahead of GDP: XOM, FSLR, MOT, MO, GM, GOOG ...
U.S. stock futures were mixed Thursday morning ahead of the government preliminary report of U.S. second-quarter gross domestic product to be released at 8:30 a.m. EDT. Compare to the first quarter, where GDP grew at an annual rate of 1%, analysts are expecting an annual growth rate in the second quarter of 2.3% according to Briefing.com. Another wave of earnings will also wash Wall Street over this morning, while it's still digesting Wednesday's ones. The market will likely take a clearer direction once GDP is out.[Update: GDP grew at a 1.9% pace in the second quarter came in well short of the 2.3% forecast. Futures are declining on economy and the XOM miss. Wall Street will likely open significantly lower.]
Reporting/reported this morning:
- Exxon Mobil (NYSE: XOM) is expected to report second-quarter earnings before the open. If ConocoPhillips (NYSE: COP) and BP (NYSE: BP) results are any indication, XOM will likely post massive profits thanks to oil's skyrocketing prices and even break the record it has set for largest profit by a U.S. company. Analyst on average expect Exxon Mobil to earn $2.52 a share on revenue of $144 billion, according to a survey by Thomson Financial.
- MasterCard Inc. (NYSE: MA) is expected to report earnings of $2.02 per share.
- Kellog (NYSE: K) is expected to post earnings of 81 cents per shares.
Continue reading Before the bell: Undecided ahead of GDP: XOM, FSLR, MOT, MO, GM, GOOG ...
Unilever washes away dirty laundry
Unilever (NYSE: UN, UL), the Anglo-Dutch consumer products giant, said Monday it was selling its laundry business in the U.S., Canada and Puerto Rico to private equity firm Vestar Capital for $1.45 billion. Included in the deal are the All, Wisk, Sunlight, Surf and Snuggle brands.Selling mature or non-core businesses to focus on fast-growing units has been part of Unilever's recent strategy. Interestingly enough, though, the European laundry business has not been sold. Patrick Cescau, Unilever's CEO said that "Laundry remains an important category for Unilever outside North America." The sale will allow Unilever to concentrate on a "leading position" in Europe, Asia, Africa and Latin America, Cescau said.
Only last week, Unilever sold its Bertolli olive oil and vinegar business for $998 million to Grupo SOS SA and before that it sold its Turkish olive oil business. All part of a strategy to dispose of non-strategic brands, with collectively more than €2 billion ($3.14 billion) in turnover. It has made 19 divestments so far. The other parts of the plan include job cuts and other cost cutting measures. Unilever wants to concentrate on higher-priced products to boost profit, attempting to catch up to Procter & Gamble Co. (NYSE: PG).
Before the bell: KFT, VZ, AMGN, UL, MOT, SIRI, RYAAY, LEH ...
U.S. stock futures were lower early Monday as investors concerns over the banking sector grew. Federal regulator seized two more banks, 1st National Bank of Nevada and First Heritage Bank, which were scheduled to reopen on Monday as Mutual of Omaha Bank branches. The Senate also passed a major housing bill over the weekend, and this could actually give a boost to mortgage lenders like Fannie (NYSE: FNM). Meanwhile, oil prices rebounded as European markets declined. As of 8:00 a.m., it seems Wall Street would start weak.Reporting earnings today are Kraft Foods (NYSE: KFT) - Kraft reported 58 cents earnings per share excluding items, beating estimates of 50 cents; Verizon Communications (NYSE: VZ) - Verizon reported earnings of 67 cents per share, excluding items, beating estimates by 2 cents; and after the close of trading, Amgen (NASDAQ: AMGN).
Amgen (NASDAQ: AMGN) stock is jumping over 17% in premarket trading after announcing late Friday its experimental osteoporosis drug, denosumab, significantly reduced the risk of bone fracture in post-menopausal women in a large trial. Rodman & Renshaw and Jefferies & Co both upgraded Amgen to Market Outperform and to Buy respectively.
Unilever NV (NYSE: UL) will sell its North American laundry detergents business to private equity investor Vestar Capital Partners for $1.45 billion (euro924 million). Unilever said the sale consistent with its strategy of divesting non-core businesses and concentrating on a few core ones.
Continue reading Before the bell: KFT, VZ, AMGN, UL, MOT, SIRI, RYAAY, LEH ...
Big company, small town: Ben & Jerry's, Waterbury, Vermont
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
This entry in the Big Company, Small Town series features one of the great recent American business success stories, as this powerhouse brand came from very humble beginnings only 30 years ago.
Ben & Jerry's was started in 1978, when Long Island, N.Y., natives Ben Cohen and Jerry Greenfield used a $12,000 investment to open up a homemade ice cream scoop shop in Burlington, Vermont. The Ben & Jerry's shop grew rapidly in popularity, and by 1980 they began packing pints to sell in grocery stores. By 1985, the company's sales were more than $9 million, and it began building its manufacturing plant in nearby Waterbury, Vermont. The plant in Waterbury was then opened to the public for tours of Ben & Jerry's ice cream making operations, creating a tourist attraction for the town, which has a population of around 1,700.
Although Ben & Jerry's was bought in 2000 by Unilever (NYSE: UN) for $326 million, the company still maintains its local roots, with its headquarters in South Burlington and its factory still open for tours in Waterbury. The founders of Ben & Jerry's, while no longer holding any positions within the company, have worked with Unilever to make sure it remains as socially conscious as when they ran it, keeping that small-town, grassroots feel that made it such a success worldwide.
To this day, Ben & Jerry's maintains its Free Cone Day, which Ben & Jerry started to honor the first anniversary of their ice cream shop.
Be sure to check out more Big Company, Small Town posts.
Analyst downgrades: Large cap oilfield services, ANDE, UN/UL
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MOST NOTEWORTHY: Large Cap Oilfield Services, Andersons and Unilever were today's noteworthy downgrades:- UBS downgraded Large Cap Oilfield Services stocks citing a "more sober 2008 outlook." The firm downgraded Smith International (NYSE: SII) and Baker Hughes (NYSE: BHI) to Neutral from Buy, citing delays in offshore growth for the Smith downgrade and execution issues for Baker Hughes.
- Banc of America downgraded shares of Andersons (NASDAQ: ANDE) to Neutral from Buy following the company's Q4 results to reflect a lack of visibility on FY08 growth.
- Citigroup downgraded shares of Unilever (NYSE: UN/UL) to Hold from Buy to reflect an increase in commodity costs.
- Lehman lowered PNM Resources (NYSE: PNM) to Equal Weight from Overweight; shares were also downgraded to Hold from Buy at Citigroup.
- Friedman Billings downgraded Thomas & Betts (NYSE: TNB) to Market Perform from Outperform.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
