Posted Jul 3rd 2008 5:50PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Competitive strategy, NIKE, Inc'B' (NKE), Economic data
If you love Adidas' clothing and footwear then I have some good news for you. Adidas is eying to open about
2,300 new stores in China by 2010, lifting its total number to 6,300. The company's decision came as a result of strong demand from China even in times when we might expect to see some downturns.
Frederic Seiller, a vice president in charge of retail operations for Greater China, stated that the the global economic slowdown had no impact on Adidas's sales in China. In addition, the company is optimistic about its further gains, and forecast a nice demand from the local sportswear market. From this point of view, total sales in China are expected to come to 1 billion euros by 2010.
As well as getting growth in revenue, by opening its biggest store in the world in central Beijing Adidas aims to beat rival
Nike Inc. (NYSE:
NKE). Back in 2007, China became
Nike's second-largest market, and its Chinese sales reached $1 billion in 2008.
Continue reading Adidas plans to open new stores in China
Posted Jul 2nd 2008 3:45PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Competitive strategy, Apple Inc (AAPL), Ford Motor (F), Motorola (MOT), Research in Motion (RIMM), Washington Mutual (WM), Economic data, JetBlue Airways (JBLU)
The weak market conditions have caused many stock prices to fall under $10. Not only smaller -- and perhaps lesser known -- stocks trade under $10 these days, but also some big and famous names such as
Ford Motor Co. (NYSE:
F),
Motorola Inc. (NYSE:
MOT),
Sprint Nextel Corp. (NYSE:
S),
Washington Mutual Inc. (NYSE:
WM) and
Del Monte Foods (NYSE:
DLM), as well as many airline companies like
Northwest Airlines (NYSE:
NWA) and
JetBlue (NASDAQ:
JBLU).
While those names could sound tempting for investors who may think they are cheap, BusinessWeek's Karyn McCormack
reminds us that not everything that is cheap is a good bargain, and there are some risks that need to be taken into account.
One common problem for most of these stocks is that they trade under $10 for a reason. That reason is usually hardly any earnings growth, if any at all. And with a weak economy, these companies would have an even harder time to stimulate growth. Add to the mix the fact that institutional investors don't like to touch stocks under $10 and the potential for recovery is not good.
Continue reading BusinessWeek: Be wary of stocks under $10
Posted Jun 30th 2008 2:56PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Economic data, Commodities, Oil, Agriculture
Despite being on the verge of the best first six months of a year in the past 35 years, there are some concerns
we may see a reversal in commodities over the next six months. This would come as a result of higher oil, copper and other raw materials prices that could put pressure on consumer spending and lead to a growth in supply.
The negative effects have already started to become visible as gasoline demand has slipped in the U.S. due to high costs, while gold purchases in India saw a plunge of 50% year-over-year. "I've probably been positive for seven years and this is the first time I think there could be really a dramatic secular reversal, that it's not just a pullback" Michael Aronstein, president of Marketfield Asset Management in New York, stated.
The impact will not pass unobserved for airline companies, who will face a decline in the number of travelers over the Fourth of July holiday, following soaring jet-fuel expenses. Copper and gold demand are also facing weak levels after the price for copper reached $4.2605 a pound May 5, the highest ever, while the price for gold reached a record $1,033.90 an ounce March 17, and is expected to average $850 this year and $750 next year.
Continue reading Commodities may face declines ahead
Posted Jun 26th 2008 3:30PM by Eliza Popescu
Filed under: Industry, Stocks to Buy
Over the last few months, real estate investment trusts (REITs) have shown that they are able to survive in tough conditions, at least compared with most other stocks. However, there have been signs of weakness for REITs lately and this is likely to continue.
With recession fears still looming, real estate operators are facing yet another difficult situation brought on by rising unemployment, which could result in lower office and retail space demand. And rising inflation will come with higher interest rates, leading to higher borrowing expenses for REITs. Considering these circumstances, the outlook for REITs is not all that promising.
With all these concerns and obstacles tied to the market and the industry, you may think it wise to stay away from real estate, at least until we see an improvement in consumer spending and the banking sector. Kiplinger suggests that we reconsider these thoughts, and actually suggests some names to invest in that could offer us the advantages we are all looking for.
Continue reading Some REITs for your portofolio from Kiplinger
Posted Jun 25th 2008 4:30PM by Eliza Popescu
Filed under: Consumer experience, Competitive strategy, Marketing and advertising, Citigroup Inc. (C)
The recent challenging market conditions created much not only on traders and companies, but also cause some big names to break promises they had made to consumers. Eric Dash of
The New York Times tells of one such
promise that may now be repealed. Last year,
Citigroup Inc. (NYSE:
C)
promoted the "deal is a deal" slogan, promising to millions of people that the company would no longer lift reserve interest rates on cards at any time, for any reason.
However, as Dash explains, times have changed and in the current weak environment the bank is reconsidering its decision because of financial troubles. A year ago, the company said it would no longer use the "universal default" practice where a card issuers can raise the holder's rate when that person is late paying any bill. What the bank still held was the right to raise rates every two years, when people renew their cards.
At the time, it looked like Citigroup's decision was efficient as rivals such as Chase Card Services followed the company by announcing it would abandon the "universal default."
Continue reading Recent market turmoil makes Citigroup break its promise
Posted Jun 24th 2008 3:45PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Competitive strategy, Applied Materials (AMAT), Economic data, Oil
With the high fuel prices over the past year,
solar stocks have been making some nice gains. But there are some signs that they may not be as safe as they appear. Investors' interest in solar companies increased due to soaring crude futures, but there are some factors to take into account before investing money into solar.
The current BusinessWeek looks at stocks such as First Solar (NASDAQ: FSLR), SolarWorld and Evergreen Solar (NASDAQ: ESLR), which have been facing increased volatility based on contract deal news or the lack thereof.
A major impact came in May, with speculation that Germany would lower subsidies given to companies and individuals who install alternative energy equipment. But the cut was not as deep as expected and stocks rebounded nicely.
Continue reading BusinessWeek looks at solar stocks
Posted Jun 23rd 2008 1:52PM by Eliza Popescu
Filed under: Forecasts, Deals, Competitive strategy, Apple Inc (AAPL), AT and T (T), ALLTEL Corp (AT), Verizon Communications (VZ), Economic data
During the challenging market conditions over the past year, the telecom sector has felt its fair share of the pain.
BusinessWeek brings Standard & Poor's Todd Rosenbluth who
suggests that some of these telecommunication stocks could now be good investments for traders as they have a safe dividend.
Despite worries tied to the slowing U.S. economy and increased competition, "we think that some of the concerns are overdone and believe selective stocks are attractively valued," Rosenbluth stated. Rosenbluth also noted that telecom stocks have started showing signs of recovery for the past few weeks, helped by the launch of new handsets and merger and acquisition agreements.
Some of investors' favorite companies are
AT&T Co. (NYSE:
T) and
Citizens Communications Co. (NYSE:
CZN). Rosenbluth believes that the launch of
Apple (NASDAQ:
AAPL)'s new iPhone, 3G iPhone, will stir increased demand for smartphones, helping such companies, while putting pricing pressure on some of their competitors.
Continue reading S&P thinks telecom stocks may be poised for a rebound
Posted Jun 20th 2008 3:17PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Competitive strategy, Archer-Daniels-Midland (ADM), Economic data, Deere and Co (DE), Commodities, Agriculture, Bunge Ltd. (BG), Potash Corp. of Saskatchewan (POT)
When natural disasters happen, there are always some companies that can turn the circumstances in their favor. Recent downpours in the Midwest provided such an opportunity as they came not only with high damages for people in the area, but also with floods for crop production, causing even higher agricultural commodity prices. The rise in corn and soybeans prices could easily lead to an increased demand for seeds, agricultural equipment, and fertilizers.
BusinessWeek suggests some big names to invest in that could offer us the advantages we are looking for.
One such company is
Archer Daniels Midland (NYSE:
ADM), which could also benefit from higher ethanol prices, after purchasing seven businesses in 2007.
Bunge Limited (NYSE:
BG) is also amid possible winners, having forecast better-than-expected fertilizer earnings. Shell eggs producer
Cal-Maine Foods (NASDAQ:
CALM) is also on the selected list; the company saw its shares climb 15% year to date, and has just revealed a new dividend payout policy.
Another important name is
Mosaic Co. (NYSE:
MOS), whose stock prices have surged 70% so far this year.
BusinessWeek cites Mosaic as being able to benefit from higher prices for fertilizer and potash. Following the same logic, the article points out potash provider
Potash Corp. of Saskatchewan (NYSE:
POT) and fertilizer distributor
CF Industries Holdings (NYSE:
CF), which should be able to take advantage of the weak dollar and higher sales prices.
Continue reading Some agricultural stocks to consider from BusinessWeek
Posted Jun 19th 2008 4:57PM by Eliza Popescu
Filed under: Forecasts, Ford Motor (F), Motorola (MOT), Sprint Nextel Corp (S), CIT Group (CIT), Economic data
Dragged down by the challenging market conditions,
many stocks have fallen under $10 lately. CNBC's Cindy Perman suggests that some of these stocks could be become good investments for traders. However, not everything that is cheap could be such a good bargain, Perman reminds us. You must always do your homework on potential investment before buying.
For example,
Ford Motor (NYSE:
F) fell down to around $6 compared with $38 nine years ago -- is it a good investment? Well, while the automaker revealed its plans to shift production from trucks to cars and give a boost to its turnaround plan, it also warned it won't be profitable until 2010 at the earliest.
Perman quotes several investment specialists on the matter. John Schloegel, vice president of investment strategies at Capital Cities Asset Management says, "An investment in Ford today feels like being in the wrong place at the wrong time." And Greg Womack, president of Womack Investment Advisers, advices to stay away from the sector, which doesn't look promising now, for the next three to five years to find out the "winner."
Continue reading Stocks to consider under $10 from CNBC
Posted Jun 17th 2008 3:56PM by Eliza Popescu
Filed under: Newspapers, U.S. Steel (X), Commodities, Oil, Stocks to Buy
With crude oil prices soaring, shares in coal and fertilizer companies have also been climbing for the past year. Barron's offers a survey of the momentum plays, pointing out some opportunities and risks when investing in coal and fertilizer stocks.
Talking about risks, Barron's underlines the fact that it can be difficult for investors to put their hard earned money into a stock that is already trading near its highs. But as they say, the trend is up unless proven otherwise, and we might take this into account when picking our trades. For example, back in April, it looked like Mosaic Co. (NYSE: MOS) was facing technical weakness, but this did not last long and the company was able to rebound.
Now let's take a took at the coal sector. Data shows that the Dow Jones U.S. coal index gas gained more than 50% for the past year. While James River Coal Co. (NASDAQ: JRCC) has quadrupled this year, Peabody Energy Corp. (NYSE: BTU) has been seeing some weakness, and this might be a sign that the sector could face tough times ahead. The first concern tied to supply and demand appeared for Peabody when we began to notice that volume on rally days slipped, while volume on declining days has increased.
Continue reading Barron's offers a survey of momentum plays in hot sectors
Posted Jun 16th 2008 3:45PM by Eliza Popescu
Filed under: Forecasts, Newsletters, ConocoPhillips (COP), Economic data, Oil, Stocks to Buy
With the economy facing soaring crude oil prices for the past year, consumers and drivers have seen a major impact on their savings. It could seem as though the good old times are over. Gasoline at $4 a gallon is not something we can ignore, and if we take into account that Americans consume nearly 40% of the world's gasoline, you can see where the problems begin. So the surge in oil prices came with an imminent effect on consumers, who had to cut back on their spending.
But since we are already in this unpleasant situation, Kiplinger offers some solutions to help investors fight against high oil prices. Kiplinger
underlines in this article that one smart move would be to minimize the cost of driving by making some good energy-related investments.
Gerry Jordan, manager of Jordan Opportunity, recommends investors invest in oil companies such as
Schlumberger Ltd. (NYSE:
SLB) and
Weatherford International (NYSE:
WFT), citing strong international business. In addition, Jordan believes that higher crude prices will increase drilling demand. On the other hand, Jordan also loves power companies like
Calpine Corp. (NYSE:
CPN) and
Reliant Energy Inc. (NYSE:
RRI) as he anticipates huge power outages across the globe during this year.
Continue reading Some oil stocks for your portofolio from Kiplinger
Posted Jun 13th 2008 3:51PM by Eliza Popescu
Filed under: Forecasts, Toyota Motor Corp. (TM), Economic data, Oil
With the soaring oil prices,
oil bulls have been benefiting from nice gains lately but there are some pessimistic signs that this may be about to change. The Fed's comments related to inflation stirred some worries among investors that interest rates could be lifted soon. A boost in interest rates will immediately lead to a stronger dollar, and could (and should) result in a sell off in crude.
Talking about this circumstance, SmartMoney is thinking about the best way to protect ourselves against losing money. As a first step, SmartMoney suggests that we reduce commodities and increase our allocation in stocks. To back up this idea, the article cites Simeon Hyman, equity strategist of the portfolio advisory group at Lehman Brothers' private investment management unit, who said the company is currently lighter on commodities and "fully invested" in stocks.
David Reilly, director of portfolio strategies at Rydex Investments, is taking into account the possibility of investing in Japan, which "is the most oil-dependent of all major economies. Reilly cites companies such as Toyota Motor (NYSE: TM) and Canon (NYSE: CAJ) which could benefit from investors' attention due to declines in crude oil prices.Continue reading SmartMoney suggestions to avoid the pitfalls of falling oil prices
Posted Jun 12th 2008 4:19PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Competitive strategy, Microsoft (MSFT), Cisco Systems (CSCO), Coca-Cola (KO), Johnson and Johnson (JNJ), Abbott Laboratories (ABT), Colgate-Palmolive (CL), Procter and Gamble (PG), Economic data
Many of us would be happy to benefit from a quiet retirement without facing concerns of losing all of our hard earned money. Fortune 40 gives us a helping hand by
suggesting some big names to invest in that could offer us the results that we are looking for.
One such company is
Abbott Laboratories (NYSE:
ABT), whose earnings surged 35% during its last quarter, helped by its famous anti-inflammatory drug Humira and HIV treatment Kaletra. Looking ahead to the company's performance, CEO Miles White is planing to keep his main attention on its medical devices unit which is seen as a key element against strong competition.
Fortune 40 also looks at beverage maker
The Coca-Cola Company (NYSE:
KO), which benefits from strong international gains able to beat recent weakness in U.S. In addition, it looks like the company's acquisition of Glacéau and its VitaminWater brand offer it a good support to outperform on the market.
Continue reading Best stocks to retire on from Fortune 40
Posted Jun 11th 2008 4:44PM by Eliza Popescu
Filed under: Diageo plc (DEO), Best Buy (BBY)
Father's Day is a special occasion for many of us, a day to show our daddies how much we love them. We give dad some extra attention that day and usually also a present that could make him happy.
Kiplinger.com has an interesting idea -- one that I really like -- for a Father's Day present you may want to consider: Find a
good stock that could bring him a lot of money.
Let's look at some of the companies Kiplinger's
Anne Kates Smith believes would be good options this year:
- O'Reilly Automotive (NASDAQ: ORLY) is an auto parts retailer that is facing weak demand as a result of soaring crude oil prices. However, analysts believe the company's strategy to buy CSK Auto will bring a lot of national success. ORLY is expected to show earnings of $1.76 per share this year and $2.02 next year.
- Stanley Works (NYSE: SWK), headquartered in New Britain, Conn., has the advantage of being one of only two companies offering a complete line of hand tools for consumers. The company focuses its performance on both its industrial tool division and a security business. Analysts forecast a profit of $4.18 this year, and $4.63 a share for next year.
Continue reading Kiplinger suggests five stocks for Father's Day
Posted Jun 10th 2008 5:21PM by Eliza Popescu
Filed under: Forecasts, Consumer experience, Economic data, Oil, Agriculture
While many of us may think that ethanol companies are not a reliable investment, Barron's asks us to reconsider our thoughts,
pointing out to a bright futures for those stocks. People's worries about ethanol companies came as a result of soaring crude oil prices. Thus, the general tendency was to use corn-based alcohol as a substitute for gasoline. The negative reaction was an immediate consequence, and a top official of the United Nations has named ethanol as a "crime against a great part of humanity" as it lead to higher food costs.
Barron's points out three ethanol producers,
VeraSun Energy Corp. (NYSE:
VSE),
Aventine Renewable Energy (NYSE:
AVR), and
Pacific Ethanol Inc. (NASDAQ:
PEIX), which faced difficult time over the past year, although they saw a nice rebound recently after reporting first-quarter operating profits, and Congress passed a farm bill.
Looking ahead, the companies showed optimism related to their further production based on projected 2009 capacity. This takes into account the completion of plants under construction when talking about Aventine and VeraSun. Thus, VeraSun has a projected production of 1.6 billion gallons, Aventine came with 433 million, while Pacific Ethanol has a projected production of 220 million.
Continue reading Barron's sees ethanol stocks poised for a rebound
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