Continue reading My best stock ideas: Looking through Q2 and into the second half of 2008

My best stock ideas: Looking through Q2 and into the second half of 2008 originally appeared on BloggingStocks on Fri, 25 Apr 2008 14:45:00 EST. Please see our terms for use of feeds.

Continue reading Wheat tops $10 per bushel -- could cereal become too expensive?

Wheat tops $10 per bushel -- could cereal become too expensive? originally appeared on BloggingStocks on Mon, 17 Dec 2007 12:47:00 EST. Please see our terms for use of feeds.

FTC keeps up its attack on Whole Foods originally appeared on BloggingStocks on Thu, 25 Oct 2007 11:05:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Bernstein upgraded Amazon.com (NASDAQ: AMZN) to Outperform from Market Perform, citing margins on 3rd party transactions that are close to eBay's (EBAY) and that the overseas merchants initiative will increase 3rd party units to 25% of sales. The move is expected to increase operating margins to 6.2% by 2011, above the previously expected improvement of 4.6% by the same time.

• JMP Securities said Luminent Mortgage's (NYSE: LUM) $64.9M emergency financing from Arco Capital may preserve some value for shareholders, and upgraded shares to Market Underperform from Sell.

• JP Morgan added Whole Foods (NASDAQ: WFMI) to its Focus List, and expects the Wild Oats (NASDAQ: OATS) acquisition to be a catalyst for shares.

• Deutsche Bank upgraded Tenet Healthcare (NYSE: THC) to Hold from Sell.

• Matrix USA raised Pediatrix Medical (NYSE: PDX) to Buy from Hold, citing valuation...

• AGL Resources (NYSE: ATG) and Atmos Energy (NYSE: ATO) were upgraded to Buy from Neutral at Calyon.

• Rowan Co (NYSE: RDC) was upgraded to Outperform from Peer Perform at Bear Stearns.

• Goldman raised O'Reilly Automotive (NASDAQ: ORLY) to Buy from Neutral.

• BMO Capital upgraded General Mills (NYSE: GIS) to Outperform from Market Perform.

Analyst upgrades 8-27-07: AMZN, GIS and WFMI originally appeared on BloggingStocks on Mon, 27 Aug 2007 10:52:00 EST. Please see our terms for use of feeds.

Things looked pretty rough for the Whole Foods Market (NASDAQ: WFMI) bid to merge with smaller rival Wild Oats (NASDAQ: OATS). In late July, the Whole Foods CEO got himself in trouble over online message board comments and that pushed the stock to a 52-week low of $36. Then the FTC tried to block the merger on the grounds that putting the two companies together would create an operation that would raise prices on organic food.

Since late July, however, Whole Food shares are up 25% while Wild Oats trades just below its 52-week high, at $18.46. In August, short sellers cut their position in Whole Foods by 9.3 million shares to 15.1 million. It was the largest single drop in shares sold short for any company traded on the Nasdaq.

The FTC went so far as to take the fate of the merger to federal court, but both a District and Appeals Court failed to halt the merger. The first case was filed in June and, according to MarketWatch, asked the judge "for a preliminary injunction blocking the deal, pending a full review."

A successful merger is likely to have quick benefits for Whole Foods. Last quarter the smaller Wild Oats made only $1.9 million on almost $312 million of revenue. The organic food retailers costs need to come down.

Cutting those costs is likely to be the first thing that Whole Foods does.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Shorts bet on Whole Foods Market (WFMI) merger originally appeared on BloggingStocks on Mon, 27 Aug 2007 10:15:00 EST. Please see our terms for use of feeds.

Wal-Mart (NYSE: WMT) has been buying retail chains and entering joint ventures all over the world to improve its international exposure. Now, with same-store sale in the U.S. in trouble, it is setting up a unit to look at acquisitions in the U.S. as well.

According to the Financial Times [subscription], with UK retailer Tesco moving into the U.S. with its "Fresh & Easy" small format neighborhood groceries, Wal-Mart may think that it cannot afford to ignore the success of niche stores.

Wal-Mart could certainly use something to jump start sales in its home market, and groceries may be a good place to start.

There are several retailer operators that could end up on Wal-Mart's radar. One is likely to be Whole Foods (NASDAQ: WFMI), which is about to merge with competing organic food chain Wild Oats (NASDAQ: OATS). At the larger end of the market are operators like Kroger (NYSE: KR), which has a market cap of over $19 billion but has about 3,500 stores and annual sales of over $66 billion. Wal-Mart's market cap is $179 billion.

Wal-Mart needs a lot of help in the U.S. -- it may just buy itself a turnaround.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Wal-Mart (WMT) looks for M&A opportunities in the United States originally appeared on BloggingStocks on Mon, 27 Aug 2007 08:00:00 EST. Please see our terms for use of feeds.

Before the bell: GOOG, GPS, WFMI, BKC ... originally appeared on BloggingStocks on Fri, 24 Aug 2007 08:35:00 EST. Please see our terms for use of feeds.

The FTC's bid to block Whole Foods' (NASDAQ: WFMI) acquisition of Wild Oats (NASDAQ: OATS) has ended in failure. A three-judge panel of D.C.'s U.S. Court of Appeals rejected the government's appeal to have the merger blocked. The judges ruled that the FTC had failed to show that Judge Paul Friedman, who denied the government's motion a week ago today, had acted improperly. Last Thursday, the

Whole Foods says it will close the deal as soon as possible. CEO John Mackey likely remains on the hot-seat, and his anonymous message board ramblings are still the subject of an SEC investigation.

Now that the merger is done, investors can begin to discuss how the merger will impact Whole Foods as a stock. The FTC's effort to block it indicates that it should be very good indeed.

Whole Foods (WFMI) merger is on! originally appeared on BloggingStocks on Thu, 23 Aug 2007 18:46:00 EST. Please see our terms for use of feeds.

Continue reading Judge opines on the messy Wild Oats (OATS) buyout

Judge opines on the messy Wild Oats (OATS) buyout originally appeared on BloggingStocks on Wed, 22 Aug 2007 09:00:00 EST. Please see our terms for use of feeds.

Before the bell: AAPL, WFMI, OATS, GOOG, MSFT ... originally appeared on BloggingStocks on Mon, 20 Aug 2007 08:48:00 EST. Please see our terms for use of feeds.

Reuters has written that the progress in the Whole Foods (NASDAQ: WFMI) merger with Wild Oats (NASDAQ: OATS) may be a sign that other mergers being scrutinized by the US government may have an easier time of getting approval. Not likely.

The FTC has tried to block the Whole Foods deal because it may raised the amount that consumers have to pay for organic food. Of course, other food retailers offer these products, so the government's position was probably always a bit thin. The agency went to federal court to try to block the marriage, but was unsuccessful.

Now Reuters is floating the theory that the apparent success of the grocery store merger may make it easier for Sirius (NASDAQ: SIRI) to merge with rival satellite company XM (NASDAQ: XMSR).

The concept is full of holes. Sirius and XM are a de facto duopoly and, merged, would be a monopoly. Their ability to send satellite signals with radio content to receivers is not a business that any other company can enter. That is not really a bit like the Whole Foods situation.

The SIRI/XMSR merger is also a deal that faces opposition in Congress. Legislators want to know why they should countenance a business combination that not only lacks any competing technology but is also one that may use its position to raise rates over time.

The news about the Whole Foods merger may be good for it, but the deal has nothing to do with satellite radio.

Douglas A. McIntyre is a partner at 24/7 Wall St.

The fiction of Whole Foods (WFMI) helping other mergers originally appeared on BloggingStocks on Mon, 20 Aug 2007 07:30:00 EST. Please see our terms for use of feeds.

Before the bell: Could yesterday's late session recovery continue? originally appeared on BloggingStocks on Fri, 17 Aug 2007 08:05:00 EST. Please see our terms for use of feeds.

In spite of John Mackey's most self-destructive efforts at getting the merger he wanted so badly blocked,. it appears that it will go through. Although the FTC says it will appeal, Whole Foods Market (NASDAQ: WFMI) appears poised to acquire rival Wild Oats (NASDAQ: OATS). Shares of Whole Foods are up 6.3% on the news after-hours. Wild Oats, the buyout target, is seeing its stock soar almost 20%.

According to the Associated Press,U.S. District Judge Paul L. Friedman's filed a 93-page document (sealed because if contains trade secrets) denying the FTC's plea to block the deal. The FTC argued that the merger would lead to higher prices for consumers, and appeared to have compelling evidence based on internal documents from the company. The deal was referred to as "Operation Goldmine" at Whole Foods, and the company planned to shutter more than 25% of Wild Oats stores. Emails from Mackey to the company's directors referred to the acquisition as a way to "eliminate a threat" and avoid "price wars".

Mackey has got to be thrilled that the deal is going through. Aside from the obvious strategic benefits to his company, the failure of the deal would likely have been pinned on him. He would have become known as "Motor Mouth Mackey": The man who helped the FTC block an important acquisition because he couldn't shut his trap.

Judge won't block Whole Foods acquisition of Wild Oats originally appeared on BloggingStocks on Thu, 16 Aug 2007 17:36:00 EST. Please see our terms for use of feeds.

Given Whole Foods Market (NASDAQ: WFMI) CEO John Mackey's penchant for posting too much information on his blog/anonymous message boards, it might seem ironic that the company is considering suing the FTC for inadvertently posting the company's trade secrets on the internet.

On Tuesday, the FTC failed to completely redact Whole Foods' trade secrets from a court filing that was posted on an online database. Reporters caught the glitch, and information was leaked.

Some of the information that should have been redacted included an assertion that Whole Foods prevents its suppliers from selling directly to Wal-Mart (NYSE: WMT) in an effort to raise the retailer's costs.

Both Whole Foods and Wild Oats (NASDAQ: OATS) have an option to terminate the merger agreement if it does not gain regulatory approval by the end of the month.

Shares of Wild Oats continue to languish more than 20% below the agreed upon price, indicating investor skepticism about the deal's prospects.

Whole Foods (WFMI) mulls suing FTC originally appeared on BloggingStocks on Thu, 16 Aug 2007 08:15:00 EST. Please see our terms for use of feeds.

The battle over the proposed Whole Foods (NASDAQ: WFMI) acquisition of Wild Oats (NASDAQ: OATS) is getting even more complicated. In a U.S. District Court, two antitrust experts gave opposite opinions [subscription required] on whether the merger would be anticompetitive.

One expert argued that the two chains compete in a much broader market -- grocery stores -- with much bigger chains like Safeway and Kroger also in the space. But another expert discussed research suggesting that markets containing a Whole Foods and a Wild Oats store tend to have lower prices, which would suggest that they are in fact competing.

The U.S. District court is expected to issue a decision on the FTC's preliminary injunction seeking to block the merger some time in the next few weeks.

Given that this doesn't appear to be a black and white issue, as evidenced by disagreement among the experts, CEO John Mackey's "macho posturing" emails could end up looming large, as they seem to suggest that the merger is motivated by a desire to eliminate competition. Not only has he embarrassed himself and run into trouble with the SEC for his message board post, but he may also have harmed his company's growth prospects with his overactive typing fingers.

Experts mixed on Whole Foods buyout plans originally appeared on BloggingStocks on Thu, 02 Aug 2007 07:20:00 EST. Please see our terms for use of feeds.

Whole Foods earnings: Beating estimates organically originally appeared on BloggingStocks on Tue, 31 Jul 2007 18:40:00 EST. Please see our terms for use of feeds.

Sirius Satellite Radio Inc. (NASDAQ: SIRI) has reported quarterly results this morning, posting a substantially lower net loss as it added more than a half-million new subscribers and revenue grew by about 50%. Sirius reported a net loss of $134.1 million, or 9 cents per share. Adjusted, Sirius lost 8 cents per share in the period. Revenue rose to $226.4 million from $150.1 million a year earlier. Analysts had expected a loss of 10 cents per share in the quarter on revenue of $228.3 million. Other key metrics were mixed as cost for adding each subscriber and average monthly revenue per subscriber fell but average monthly churn edged up to 2.1%. SIRI shares are up 3.7% in premarket trading (8:06 a.m.).

Shares in GlaxoSmithKline PLC (NYSE: GSK) are rising 4.1% in premarket trading (7:36 a.m) after a U.S. Food and Drug Administration panel recommended that its diabetes drug Avandia remain on the market, but with stronger health warnings. GSK confirmed its 2007 earnings outlook following the announcement.

Johnson & Johnson (NYSE: JNJ) unveiled a restructuring plan designed to improve costs. The plan includes a global work force reduction of up to 4%. The restructuring targets primarily its pharmaceuticals segments, as it consolidates certain operations in the segment.

Apple Inc. (NASDAQ: AAPL) has been hit with a multimillion-dollar lawsuit from Eminem's music publisher as the latter accuses it of violating copyrights by allowing unauthorized downloads of the Eminem's songs.

The question facing analysts and investors in Whole Foods International Market (NASDAQ: WFMI) ahead of Whole Food's earnings release next week has got to be the effect of CEO John Mackey's recent "macho posturing" and the FTC anti-trust suit to block the merger with Wild Oats Markets (NASDAQ: OATS). Wild Oats doesn't feel that circumstances warrant anti-trust action, as there are plenty of markets for organic produce. Time will tell if the FTC agrees.

Whole Foods fell short of expectations in the previous two quarters, according to Thomson Financial, but the one-year EPS growth rate is 5.2%, better than the industry average. Wall Street is looking for EPS for the current quarter to be .33. The current consensus recommendation is to hold WFMI.

The share price has dropped from its 52-week high of 66.25 last October, to a 52-week low of 36.00 at close on Friday, in the midst of last week's market downturn. Overall, the price has trended downward this past quarter. In the meantime, investors and analysts will just have to hold their collective breaths and wait to see what next week brings to the market in general, and Tuesday's earnings release to Whole Foods specifically.

More Whole Foods coverage:
Peter Cohan: Whole Foods CEO determined to do himself in -- electronically
Jon Ogg: Meet the next Whole Foods ... Kroger
Sarah Gilbert: Whole Foods acquisition of Wild Oats may be blocked by FTC: Monopolistic organics?
Eric Buscemi: Whole Foods: Multiple signs indicate to stay on the side lines

Whole Foods earnings preview: Investors holding their breath? originally appeared on BloggingStocks on Sat, 28 Jul 2007 13:40:00 EST. Please see our terms for use of feeds.

• Verizon Communications Inc (NYSE: VZ) to report Q2 earnings; conference call at 8:30am. Analysts will look at Verizon's marketing strategy [particularly for FiOS], infrastructure improvements, and operating expenses. Above-average debt remains a blemish, but Wall Street will overlook that if Verizon registers impressive subscription and market share statistics, and demonstrates that its fiber optic-based FiOS Internet/TV network roll-out timetable for major markets remains on schedule.
• Monster Worldwide Inc (NASDAQ: MNST) to report Q2 earnings; conference call at 10am. Monster is expected to register adequate, albeit decelerating revenue growth in Q2 compared to Q1, hence the grade for the company's performance may hinge on analysts' projection regarding the likely revenue scenario moving forward.

• Federal District Court Hearing to decided whether to approve the FTC's application for injunction blocking the proposed merger between Whole Foods Market Inc (NASDAQ: WFMI) and Wild Oats Markets Inc (NASDAQ: OATS).
• FDA 8am Gastrointestinal Drugs and Drug Safety and Risk Management Joint Advisory Committee Hearing on Biogen Inc's (NASDAQ: BIIB) Tysabri for Crohn's Disease.
• RegenRX Pharmaceuticals (AMEX: RGN) to update on its clinical trials program at 4:30pm.

• PDUFA date for GlaxoSmithKline (NYSE: GSK) / POZEN Inc's (NASDAQ: POZN) Trexima for migraine headaches.
• Teva Pharmaceuticals (NASDAQ: TEVA) to report Q2 earnings; conference call at 8:30am.
• Sales Conference Calls: Ford Motor Company (NYSE: F) at 1pm; General Motors Corporation (NYSE: GM) at 2pm
• Starbucks Corporation (NASDAQ: SBUX) to report Q3 earnings; conference call at 5pm. After recent sluggish stock performance, some analysts see Starbucks snapping back in the quarters ahead: Starbucks is expected to add a breakfast sandwich at 4,000 stores/coffee houses, which could increase per-store revenue by $70K annually.

• Eastman Kodak Company (NYSE: EK) to report Q2 earnings; conference call at 11am. Note that the volatility in Kodak is elevated going into its earnings report.

• Procter & Gamble Company (NYSE: PG) to report Q4 earnings; conference call at 8:30am.

Market highlights for next week: Verizon, Starbucks to report originally appeared on BloggingStocks on Fri, 27 Jul 2007 15:30:00 EST. Please see our terms for use of feeds.

Shareholders of Whole Foods Market Inc. (NASDAQ: WFMI) buyout target Wild Oats Markets, inc. (NASDAQ: OATS) may be left holding the bag if the proposed acquisition doesn't go through because of CEO John Mackey's propensity for "macho posturing" and anonymous message board postings.

But in the meantime, Whole Foods customers are lining up to buy a pretty nifty reusable canvas tote bag for $15 at the company's stores. Emblazoned with oh-so-very clever slogan "I am not a plastic bag" (I wonder how much the Madison Avenue firm got for coming up with that stroke of brilliance), the bag appeals to environmentally conscious consumers, and those who want to make it very clear to all of us lesser beings just how green-friendly they are.

Of course, "reusable" bags are all the rage these days, so it's not surprising that the Whole Foods demographic would rush to get theirs.

According to CNNMoney, "Whole Foods' Edgewater, N.J. location had more than 300 people waiting in the rain, according to Shanks. I'm sure that some of them waited in their idling SUV's with the air conditioning on. The bags are fetching over $100 each on eBay.

I try to be environmentally-savvy too, but this just reeks of poserishness. Do you really need to spend $15 (or $100) on a canvas bag to show what a great person you are? Here's an idea: Buy a $5 tote bag and donate the other $10 to charity. You'll be doing just as much to help the environment, you'll help out a charity too, and you'll be less annoying.

Green chic: Customers line up to buy pricey 'reusable' bags at Whole Foods originally appeared on BloggingStocks on Wed, 18 Jul 2007 16:25:00 EST. Please see our terms for use of feeds.