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Week in Preview: Coca-Cola, Disney and Hasbro Earnings

earnings expectationsThings look to be pretty quiet on the economic calendar this week. Here are the highlights:

  • Tuesday: Weekly chain-store sales
  • Wednesday: Federal budget balance for January
  • Thursday: Wholesale trade data in December
  • Friday: Trade balance in December and the weekly inflation survey

However, three iconic companies -- Walt Disney (DIS), Coca-Cola (KO) and Hasbro (HAS) -- highlight this week's quarterly results. Here's a look at what analysts surveyed by Thomson Reuters are anticipating from these and others.

Continue reading Week in Preview: Coca-Cola, Disney and Hasbro Earnings

Las Vegas Sands Making Run at Pre-recession Levels

As more and more people are finding the discretionary dollars to stick into slot machines and slap down on blackjack tables, you might want to consider putting some money into Las Vegas Sands (LVS).

Las Vegas Sands is hitting multi-year highs as it continues its stellar, steady climb from below $1.50 in early 2009 to its current price just below $30, and it doesn't look like the stock is going to slow down any time soon.

With growth coming from the firm's Marina Bay Sands casino in Singapore and its majority owned subsidiary Sands China, Ltd. In China, Las Vegas Sands is in a position to benefit from the growing economies in Asia even as the U.S. economy muddles along.

Continue reading Las Vegas Sands Making Run at Pre-recession Levels

Analyst Calls: AMED, FDX, H, HD, HOT, LGF, LOW, MAR, MTB, MRX, NOK, UPS ...

Analyst Upgrades

  • UBS upgraded UPS (UPS) and FedEx (FDX) to buy from hold based on recent weakness and leverage to a recovery. The firm raised its price target on UPS to $74 from $72 and on FedEx to $100 from $97.
  • Bernstein upgraded Medicis (MRX) to outperform from market perform based on valuation and said the company has been executing well over the past few months. The firm has a $28 price target on the stock.
  • Citigroup upgraded Weingarten Realty (WRI) to buy from hold, citing valuation and the company's improved balance sheet. The firm maintains a $24 price target for shares.
  • Home Depot (HD) and Lowe's (LOW) were upgraded to market perform from underperform at BMO Capital.
  • NextEra Energy (NEE) was upgraded to outperform from neutral at Baird.
  • Nokia (NOK) was upgraded to neutral from reduce at WestLB.

Continue reading Analyst Calls: AMED, FDX, H, HD, HOT, LGF, LOW, MAR, MTB, MRX, NOK, UPS ...

Hotel Chains to Cut Back on Housekeeping

We've all seen those gently worded, politically correct suggestions in our hotel rooms - "____ gallons of water are used each day cleaning towels and sheets that have been used just once..." While guests are invited to re-use sheets or towels in the name of environmental friendliness, the conservation serves another purpose -- lowering housekeeping costs.

With occupancy rates on the decline, hotel chains are looking for ways to limit expenses, and one of these ways is by reducing housekeeping efforts. Some Wyhndham Worldwide (WYN) chains, such as Howard Johnson, Ramada, and Super 8, leave linens unchanged whenever possible. WYN's Days Inn chain is soon going to adopt a three-day change rule (I'm assuming all hotels still change between guests, regardless of the length of stay).

Continue reading Hotel Chains to Cut Back on Housekeeping

Analyst upgrades, downgrades and initiations: ADBE, HAL, GCI, GT, IMAX, URBN ...

Analyst upgrades:

  • Sierra Wireless (NASDAQ: SWIR) was upgraded at Jefferies to Hold from Underperform following Q3 results. The firm believes the Wavecom acquisition integration is progressing better than expected and finds the valuation attractive at current levels. The firm raised its price target to $10 from $5.
  • Boston Properties (NYSE: BXP) was upgraded to Buy from Hold at Deutsche Bank to reflect the company's recapitalization and better-than-expected occupancy. The firm raised its target to $69 from $46.
  • Wyndham (NYSE: WYN) was upgraded to Outperform from Market Perform at FBR Capital after the shares sold off following the company's Q3 results. The firm raised its target to $23 from $15.
  • Human Genome (NASDAQ: HGSI) was upgraded to Overweight from Neutral at JPMorgan. Target was raised to $25 from $14.
  • Urban Outfitters (NASDAQ: URBN) was upgraded to Overweight from Market Weight at Thomas Weisel as they expect a "meaningful sales and earnings improvement in Q4." Target was raised to $39 from $32.
  • Methanex (NASDAQ: MEOH) was upgraded to Buy from Neutral at UBS, citing improved methanol demand following the Q3 report. Target was raised to $19.50 from $17.
  • Buffalo Wild Wings (NASDAQ: BWLD) was upgraded at Raymond to Market Perform from Underperform.

Continue reading Analyst upgrades, downgrades and initiations: ADBE, HAL, GCI, GT, IMAX, URBN ...

Options Update: Sherwin-Williams and Wyndham options active on low volatility

Sherwin-Williams (NYSE: SHW) closed at $53.73. SHW is expected to report Q2 EPS on July 21. SHW options were active on 11,569 contracts. SHW July option implied volatility is at 35, August is at 39; below its 26-week average of 43, according to Track Data, suggesting decreasing price movement.

Wyndham (NYSE: WYN) closed at $11.02 WYN is expected to report Q2 EPS on July 29. WYN options were active on July 6 with 17,333 contracts trading. WYN July option implied volatility is at 70, August is at 68; below its 26-week average of 98 according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Cramer on BloggingStocks: Warning: The financial media can be hazardous to your portfolio

TheStreet.com's Jim Cramer says you'll miss some great opportunities if you blindly believe all the bad news.

You want a rebuke to the "never-ending woes of commercial and residential real estate mortgage bonds"? You get one every day in this market, and today is no different. Look at what is up big today: Genworth (NYSE: GNW) (Cramer's Take), Lincoln National (NYSE: LNC) (Cramer's Take), Wyndham (NYSE: WYN) (Cramer's Take), Regions Financial (NYSE: RF) (Cramer's Take) and Zions (NASDAQ: ZION) (Cramer's Take). Each in its own way needs the residential or commercial real estate markets to be robust to thrive, and if the myriad articles I read about the horrible state of the mortgage bond market and the dim commercial real estate prospects were true, why would you be making money in Wyndham, a gigantic timeshare company? How could Regions and Zions be rallying? They are among the worst of the worst; unless you consider Genworth and Lincoln National, which are supposed to be roadkill because of all of their mortgage bonds.

Continue reading Cramer on BloggingStocks: Warning: The financial media can be hazardous to your portfolio

Wyndham Worldwide posts healthy first-quarter earnings

Early this morning, Wyndham Worldwide (NYSE: WYN) released its quarterly earnings, handily surpassing the Street's expectations thanks to a rise in first-quarter results. The hotelier announced first-quarter earnings of 25 cents per share, a penny better than a year ago. However, taking restructuring charges out of the equation, WYN would have earned 41 cents per share, far better than the expected 36 cents per share. These results are in stark contrast to a loss in the previous quarter, thanks to the realignment of the company's vacation ownership business and other cost-cutting measures. Quarterly revenue fell to $901 million.

Looking ahead, WYN forecast adjusted second-quarter earnings of 36 cents to 41 cents per share and $1.61 to $1.85 per share for full fiscal 2009.

Continue reading Wyndham Worldwide posts healthy first-quarter earnings

Company nicknames: Does HoJo still have mojo?

This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about HoJo's below in the comments.

Howard Johnson's and its 28 flavors gave mid-20th-century Americans a view of the future: choice. In a time of eight-color boxes of Crayolas and three television stations, the implication of HoJo's abundance fired our imaginations. Though the restaurant chain had been in business since 1925, it took off during the depression when the founder adopted the now-traditional Cape Cod building with an orange roof topped by a weather vane of Simple Simon and the Pieman.

The company was also among the first to franchise, a major contributor to its growing success. With the advent of the national freeway system in the 1950s, Howard Johnson's quickly monopolized the rest stops and exits, making it larger than Micky D's, the King, and the Colonel combined.

Part of its success was in devising better prepackaged foods and a standardized menu, allowing the common Joe to work the grill. By 1954, the chain had grown to 400 restaurants, large enough to support expansion into the motor lodge business, catering to the increasingly mobile American traveler.

In the '60s, HoJos served more food to Americans than anyone except the U.S. Army. By the time the descendants of the founder sold the firm in 1980 to Imperial Group, the chain included 1,000 restaurants and 500 motor lodges.

Continue reading Company nicknames: Does HoJo still have mojo?

Analyst initiations: HQS, WYN and CATY

MOST NOTEWORTHY: HQ Sustainable Maritime, Wyndham and Cathay General Bancorp were today's noteworthy initiations:
  • Cowen views HQ Sustainable Maritime (NYSE: HQS) as undervalued and a future winner in the "green economics" game. The firm started shares with an Outperform rating.
  • JP Morgan initiated Wyndham (NYSE: WYN) with an Overweight rating. The firm finds the valuation attractive given the company's fee-based business model and attractive international growth opportunities.
  • B. Riley assumed Cathay General Bancorp (NASDAQ: CATY) with a Buy rating and $16 target and believes the company's valuation discount to peers is unwarranted.
OTHER INITIATIONS:
  • BGC Parnters (NASDAQ: BGCP) was initiated at Deutsche Bank with a Buy rating and $13 target.
  • Friedman Billings initiated Maiden Holdings (NASDAQ: MHLD) with an Outperform rating and $11.50 target.
  • Sandler assumed CRM Holdings (NASDAQ: CRMH) with a Buy rating and $6.50 target.

Earnings highlights: Coca-Cola, Deere, Abercrombie, Baidu, Playboy, Taser and others

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).

Visit AOL Money & Finance for more earnings coverage.

Analyst initiations: Biotech, WCC, WYN, CNTY, VLO, KR

MOST NOTEWORTHY: The biotech sector, WESCO International, Wyndham and Century Casinos were today's noteworthy initiations:
  • BMO Capital initiated coverage on Arena Pharmaceuticals Inc. (NASDAQ: ARNA) and Gilead Sciences Inc. (NASDAQ: GILD) with Outperform ratings and a $16 target and $51 target and Celgene Corp. (NASDAQ: CELG) and Genentech Inc. (NYSE: DNA) with Market Perform ratings and a $69 target and $85 target.
  • CIBC initiated shares of WESCO International Inc. (NYSE: WCC) with a Sector Outperformer rating and $46 target. The firm believes lower estimates are already priced into shares and that the company's operating initiatives increase the chances for more stable margins in this environment.
  • Deutsche Bank started shares of Wyndham Worldwide Corp. (NYSE: WYN) with a Buy rating and $41 target. The firm believes stability of the timeshare industry, international expansion and improved transparency will serve as catalysts for shares.
  • Century Casinos Inc. (NASDAQ: CNTY) was initiated at Nollenberger with a Neutral rating, citing the underperformance of new properties and concerns from the smoking ban in Colorado; however, the firm believes the company is headed in the right direction.
OTHER INITIATIONS:
  • Soleil started shares of Sunoco Inc. (NYSE: SUN) and Valero Energy Corp. (NYSE: VLO) with Buy ratings and targets of $96 and $88, and initiated shares of Tesoro Corp. (NYSE: TSO) with a Hold rating and $55 target.
  • Rodman & Renshaw started shares of Labopharm Inc. (NASDAQ: DDSS) with a Market Perform rating.
  • UBS resumed coverage on Kroger Co. (NYSE: KR) with a Buy rating and $34 target.

Cramer lists Mariott among potential hotel targets

Marriott International Inc. (NYSE: MAR) opened at $48.77. So far today the stock has hit a low of $46.82 and a high of $48.85. As of 10:55, MAR is trading at $47.45, up $2.99 (6.7%).

After hitting a one year high of $52.00 in April, the stock dropped sharply to find support just below $44. Hotels are soaring today after Blackstone Group (NYSE: BX) announced plans to purchase Hilton Hotels (NYSE: HLT). Jim Cramer says that some other hotel stocks are deserving of takeovers, and he is tagging Marriott as possible buyout candidate in the aftermath of the HLT deal. Other potential targets mentioned are Starwood Hotels (NYSE: HOT) and Wyndham (NYSE: WYN). Our own Douglas McIntyre sees MAR and HOT as targets as well. Recent technical indicators for MAR have been bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $40 range. MAR hasn't been below $40 since October and has shown support around $43 recently. This trade could be risky if the acquisition buzz surrounding the hotel stocks dies down with little action, but even if that happens, it looks like this stock could find support right near $45, where it bounced a few times in the past two months.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MAR, BX, HOT, HLT, or WYN.

Cramer on cable, hotel, and casino

On tonight's MAD MONEY on CNBC, Jim Cramer said to stick with Charter Communications (NASDAQ: CHTR). It has been a big underperformer since he recommended it. He said that Comcast Corp. (NASDAQ: CMCSA) and Insight Media unwound a joint venture and now that Comcast has control in Indiana, Illinois is a big deal for it. Cramer said the value is $4,583.00 in enterprise value per subscriber. Cramer said the value is 12% lower on an enterprise value per subscriber basis. The second show was the huge premium that Comcast paid to acquire Patriot Media in New Jersey on a 50% premium to CHTR enterprise value per subscriber. Cramer said he is no longer worried about this stock because it is cheap. The values of subscribers are up because of the Triple Play. The company is in the circle of a steady debt refinancing. Its 5.4 million subscribers in premium locations may be worth more.

On a side note, Cramer didn't mention that even if a buyout offer came out at a 50% premium that many would probably not go along with the buyout. Sure there is value there, but if it can't be unlocked it doesn't matter that much. The stock closed at $2.84, is up close to $3.00 after-hours, and has a $0.97 to $3.58 trading range for the last 52-weeks. This one was over $5.00 in 2004 and over $8.00 5-years ago. This one is also one that management is going to have a hard time trying to fix.

Cramer also went back over the old Cendant post break-up and said its value is up a combined 32% higher than its break-up last year. There is a laggard there out of the old Cendant companies, and that is Wyndam Worldwide (NYSE: WYN), which owns Ramada and timeshares. Cramer said this is a much better value than it used to be and WYN makes more money than other timeshare companies. Cramer said even with the housing bust that timeshares aren't imploding like they would have before. Cramer thinks this one is the value out of the Cendant break-up. It trades at 17-times forward earnings and every part of the old Cendant is attractive to a buyer. Cramer said you can't call it the same as a Four Seasons value to buy, but it doesn't deserve a multiple less than half of that buyout. He thinks it's too cheap and could be bought.

In a call-in, Cramer said that Trump Entertainment Resorts Inc. (NASDAQ: TRMP) should go higher and he thinks a buyout can come higher than today's prices. We gave our own thoughts to finding values here back on March 13.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

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Last updated: February 10, 2012: 09:32 PM

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