BloggingStocks

The next Sony is Vizio

Georges Yared — 2008-06-29T16:00:00+00:00

Filed under: Forecasts, Consumer experience, Competitive strategy, Dell (DELL), Wal-Mart (WMT), Sony Corp ADR (SNE), Circuit City Stores (CC), Sears Holdings (SHLD), Costco Wholesale (COST)

This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.

Who would have thought that privately held, 2002 upstart Vizio could upset the LCD TV market and knock giant Sony (NYSE: SNE) off of its perch?

The world of televisions is transforming itself to flat-panel, high-definition and big screens. Vizio was founded in 2002 and is taking major market share from Sony and former second fiddle Samsung. Vizio's promise to its customers is simple -- small is big. The company has only 85 employees, mostly in sales and marketing, and outsources the manufacturing to other suppliers. The key to the Vizio story is getting the product through as many retail doors as possible.

The company has signed up a couple of big wigs in the retail sales channel: Wal-Mart (NYSE: WMT) and Costco (NASDAQ: COST), to go along with Sears (NASDAQ: SHLD) and Circuit City (NYSE: CC). Vizio is also available from Dell Computers e-commerce web site (NASDAQ: DELL). Vizio understands it's all about distribution, distribution, distribution.

Vizio has taken the marketing position that television decisions typically are the domain of the male of a household and, as such, has partnered up with the NFL. Football and big screen TVs are synonymous. Vizio has signed All-Pro running back LaDainian Tomlinson of the San Diego Chargers to be its spokesperson. Tomlinson is regarded as both a fine gentleman and perhaps the greatest running back since Barry Sanders. His wholesome image is magical to Vizio's marketing program.

Vizio offers the lowest prices for the new LCD TVs. The company operates with low overhead and very effective, but low-cost marketing plans. Recent market share numbers show Vizio at 14.5%, easily topping Sony. Vizio's actual numbers are hard to find but the 2nd quarter of 2007 saw the company sell 606,000 units, up 76% from the previous year, while Sony fell from 412,000 units to 253,000 units in the same period.

Vizio has managed to capture the lion's share of new unit sales, but has not disclosed its profitability numbers. The margins in the industry are thin to begin with, which explains Vizio's low expense structure.

Still, it's hard to imagine this young company knocking Sony around the block. Now Sony knows what it's like to tackle LaDanian Tomlinson!

Georges Yared is the editor of GameOnInvesting, a free service devoted to helping investors spot game-changing stocks before they breakout.

Permalink | Email this | Linking Blogs | Comments

Wal-Mart Stores (WMT): Shares advance through a positive trading channel

Larry Schutts — 2008-06-24T10:35:00+00:00

Filed under: Good news, Wal-Mart (WMT), Target Corp. (TGT), Costco Wholesale (COST), Technical Analysis, Stocks to Buy

Wal-Mart Stores (NYSE: WMT) is the world's largest retailer, offering a vast array of general merchandise through some 7,350 stores. That total includes nearly 1,000 discount stores, over 2,800 combination discount and grocery stores and about 600 warehouse outlets. More than half of Wal-Mart's facilities are in the United States, but the firm has a widespread and growing international presence. It is the biggest retailer in Canada and Mexico, has a 95% stake in Japan's Seiyu and has developing operations in Europe, South America and Asia. The company employs more than two million associates and serves more than 200 million customers per year. Costco Wholesale (NASDAQ: COST) and Target Corporation (NYSE: TGT) are competitors.

The stock has been a steady Q2 gainer, advancing on word of solid Q1 results, better than expected same-store sales figures, an expanding discount drug program, international development, and favorable analyst commentary.

The news has kept WMT shares cycling through a positive three-month trading channel. The price is currently consolidating at the base of that channel, where oversold CCI, MACD and Stochastic technical parameters suggest the potential for a rise back toward the top.

Brokers recommend the issue with eight "strong buys", eleven "buys", five "holds" and one "underperform". Analysts expect a 12% average annual growth rate, through the next five years. The WMT P/E ratio (17.77), Price to Sales ratio (0.59), Return on Assets (8.37%), Return on Investment (13.31%) and Return on Equity (21.24%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 40% of the outstanding shares. The stock is one of those used to calculate the Dow Jones Industrial Average, the Dow Jones Composite, the S&P 500 Index and the S&P 100 Index. Over the past 52 weeks, it has traded between $42.09 and $59.95. A stop-loss of $49.75 looks good here. Note that the firm is expected to report fiscal Q2 results in mid-August.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

Permalink | Email this | Linking Blogs | Comments

Are we in for Bush vs. Carter, and what stocks would fare better under each?

Sheldon Liber — 2008-06-11T15:45:00+00:00

Filed under: Rants and raves, Cisco Systems (CSCO), Pfizer (PFE), Coca-Cola (KO), Exxon Mobil (XOM), JPMorgan Chase (JPM), Adobe Systems (ADBE), Automatic Data Proc (ADP), Avon Products (AVP), Black and Decker (BDK), Chevron Corp (CVX), Costco Wholesale (COST), Goldman Sachs Group (GS), Cardinal Health (CAH), Kraft Foods'A' (KFT), Politics, Suntech Power Hldgs ADS (STP), General Dynamics Corp (GD), Northrop Grumman (NOC), Raytheon Company (RTN)

For the first time Monday I heard John McCain comparing Barack Obama to Jimmy Carter. I had heard this before in other arenas, but not from McCain. I guess that despite these two presidential candidates pledging to the American people to bring change and resist politics as usual, they are both, as usual as one could get.

Obama is being shaped by the pressures of running for office and to believe otherwise is delusional. I suppose one has to have hope but the effects of the campaign are becoming clear. Obama has been painting McCain as an extension of Bush, which is nonsense, and now in a typical tit-for-tat response, McCain is filling the air with Carter references.

Both McCain and Obama are wrong in their assessments of their opponents and they are becoming commoners to resort to the bottom of the barrel campaign techniques used in every campaign for most of our nation's proud history. Obama gave up the high ground too easily and McCain has decided he can sling mud with the best of them.

Stick to the issues fellas, or neither one of you will have any credibility left to fight the inflation, sinking dollar, war, oil & food prices, federal deficit, trade imbalances, national infrastructure, health care and Social Security nightmares and a multitude of other issues one of you will be saddled with.

How will either affect stock prices. The market is full of assumptions. If McCain wins, the defense sector, energy, health care, financials and high yielding stocks are probably better bets. Some examples are:

If Obama wins, better bets might be alternative energy, high-tech, consumer staples, retail and non-dividend paying stocks (think taxes). Some examples are:

These are just a few stocks from among those that have been reviewed on BloggingStocks and not current recommendations. They are just meant to give a little flavor to what I sense as market sentiment, and to stimulate some discussion.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

Permalink | Email this | Linking Blogs | Comments

About 3 million rebate checks spent at Wal-Mart and Costco

Carol Vinzant — 2008-06-05T17:03:00+00:00

Filed under: Consumer experience, Wal-Mart (WMT), Target Corp. (TGT), Costco Wholesale (COST), Recession

Where are Americans spending their rebate checks? Apparently Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale Corporation (NASDAQ: COST). Both reported fantastic sales for May. Wal-Mart explicitly tied their success to the checks. "We're seeing some benefits from the stimulus checks," Wal-Mart Chief Executive Eduardo Castro-Wright said in a company press release. Wal-Mart same store sales were up 3.9% (4.4% if you include gas).

Costco sales were even better, up 5% from last year (7% if you count gas). Costco saw sales of $5.77 billion, up about $600 million. The theory is that people are turning to Wal-Mart and Costco because we're broke and because we're so freaked out by gas prices, we'd rather just drive to one big store. Nice theory, but Target Corporation (NYSE: TGT) is in the same business and saw sales drop 0.7%.

How many of us have spent our rebate checks at Wal-Mart and Costco? About 73% of Costco's stores are in the U.S. (The foreign stores got a big boost from the weak U.S. dollar). So, let's say very roughly 73% of Costco's $600 million sales increase was in the U.S. Or, Costco took in an extra $438 million thanks to the rebate checks. (Yeah, I know, the sales probably would've been up anyway, if only for inflation). At Wal-Mart domestic stores saw a $1.4 billion increase. Assuming we all spent our $600 in one place (just to make the math simpler), that would mean a little over 3 million of us (3,063,333) spent our rebated checks at Wal-Mart and Costco in May.

Permalink | Email this | Linking Blogs | Comments

Before the bell: Futures up on oil, Verizon's possible deal, retail sales

Melly Alazraki — 2008-06-05T07:50:00+00:00

Filed under: Before the bell, Deals, Wal-Mart (WMT), Market matters, Costco Wholesale (COST), Verizon Communications (VZ), Economic data, Oil

With oil sliding further, U.S. stock futures were mildly higher as investors also contemplated Verizon's potential bid for Alltel and awaited major retailers results.

On Wednesday, U.S. stocks were mixed on a bag of mixed news. Despite Moody's threatening to downgrade bond insurers, there was positive data from the service sector and oil kept its recent lower prices. The Dow industrials fell 12 points, or 0.10%, the S&P 500 was essentially flat with half a point decline, or 0.03%, and the Nasdaq composite actually ended 22 points, or 0.91%, higher.

Not much economic data is due today, except for the weekly initial jobless claims, but major retailers will report individual sales and comparative sales. Many investors will look to the report to get an indications of the state of the American consumer.

Meanwhile, oil dipped below $122 a barrel overnight and is holding above $122 now.

And as Europe also grapples with high oil prices, inflationary pressures and slowing growth, the Bank of England has already announced it's holding rates steady and Europe's Central Bank is also expected to do the same.

In corporate news, the major news comes from Verizon Wireless, jointly owned by Verizon Communications (NYSE: VZ) and Vodafone (NYSE: VOD). Verizon is apparently in talks to acquire rival Alltel for a possible $27 billion according to The Wall Street Journal. The merger would create an 80 million subscriber telecom giant.

Meanwhile, France Telecom also said Thursday it had started talks of a $42 billion takeover bid for TeliaSonera. That would create the world's fourth-largest telecommunications operator.

Already reporting sales this morning is warehouse club operator Costco Wholesale Corp. (NASDAQ: COST), which said Thursday May same-store sales rose 9%, beating Wall Street expectations of a 6.9% increase. Wal-Mart Stores Inc. (NYSE: WMT) reported a gain of 3.9% at same-store sales, excluding the impact of fuel sales. That was more than double the 1.6% same-store gain expected by Thomson Reuters analysts.

Permalink | Email this | Linking Blogs | Comments

Earnings highlights: Dell, Sears, Costco, Heinz, Tiffany, Borders, DSW and others

Trey Thoelcke — 2008-05-31T11:40:00+00:00

Filed under: Earnings reports, Google (GOOG), Dell (DELL), Starbucks (SBUX), Tiffany and Co (TIF), Sears Holdings (SHLD), Costco Wholesale (COST), Novell Inc (NOVL), Marvell Technology Group (MRVL), salesforce.com inc (CRM)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Big Lots Inc. (NYSE: BIG) Q1 earnings rose 20%, driven by cash-strapped bargain hunters.
Borders Group Inc. (NYSE: BGP) narrowed its loss in the first quarter though same-store sales fell.
Costco Wholesale Corp. (NASDAQ: COST) Q3 profits climbed 32%, beating analysts' estimates.
Dell Inc. (NASDAQ: DELL) posted solid Q1 results that beat analysts' expectations (see the transcript).
DSW Inc. (NYSE: DSW) Q1 earnings declined, hurt by weak same-store sales.
H.J. Heinz Co. (NYSE: HNZ) better-than-expected Q4 results sent the stock to a 52-week high.
Integra LifeSciences Holdings Corp. (NASDAQ: IART) beat Q4 estimates and offered Q1 guidance.
J. Crew Group Inc. (NYSE: JCG) lowered its full-year forecast, leading to analyst downgrades.
Joy Global Inc. (NASDAQ: JOYG) Q2 results beat expectations, and it raised its full-year guidance.
Lions Gate Entertainment Corp. (NYSE: LGF) posted record Q4 revenues but a bigger-than-expected loss.
Marvell Technology Group (NASDAQ: MRVL) Q1 profits beat estimates and led to analyst upgrades.
Medtronic Inc. (NYSE: MDT) beat Q4 estimates and offered full-year guidance.
Novell Inc. (NASDAQ: NOVL) swung to a profit that was in line with analysts estimates.
Salesforce.com Inc. (NYSE: CRM) Q1 revenues surged on new customers and demand in Asia.

Sears Holdings Corp. (NASDAQ: SHLD) swung to a Q1 loss as same-store sales declined.
Semtech Corp. (NASDAQ: SMTC) beat Q1 expectations with record revenues and raises its outlook.
Shoe Carnival Inc. (NASDAQ: SCVL) Q1 profit fell due to softer-than-expected seasonal sales.
Tiffany & Co. (NYSE: TIF) easily beat Q1 expectations and raised its full-year guidance.
TiVo Inc. (NASDAQ: TIVO) Q1 earnings quadrupled, but it expects a loss in the current quarter.

Also earnings of Google (NASDAQ: GOOG), Starbucks (NASDAQ: SBUX), and 400 other companies were affected by write downs of auction-rate securities.

Upcoming results to watch for include Toll Brothers (NYSE: TOL), Hovnanian Enterprises (NYSE: HOV), Ciena (NASDAQ: CIEN), Bob Evans Farms (NASDAQ: BOBE), Williams-Sonoma (NYSE: WSM), Del Monte (NYSE: DLM), National Semiconductor (NYSE: NSM), Smithfield Foods (NYSE: SFD), and Lululemon Athletica (NASDAQ: LULU).

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Early analyst calls (DELL) (COST)

Douglas McIntyre — 2008-05-30T08:06:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Dell (DELL), Costco Wholesale (COST), Valero Energy (VLO)

Merrill Lynch upgraded Dell (NASDAQ: DELL) to "buy" from "neutral," according to Briefing.com. The news service also reports that Citigroup began coverage of Valero (NSYE: VLO) with a rating of "buy."

Costco (NASDAQ: COST) was cut to "neutral" at Piper Jaffray, according to 24/7 Wall St. The financial website also reports that NASDAQ (NASDAQ: NDAQ) was raised to "overweight" at Lehman Brothers.

Read | Permalink | Email this | Linking Blogs | Comments

Bargain hunters drive up profits at Big Lots, Costco

Trey Thoelcke — 2008-05-29T16:43:00+00:00

Filed under: Earnings reports, Costco Wholesale (COST)

Cash-strapped bargain hunters have made it possible for discount retailers Big Lots Inc. (NYSE: BIG) and Costco Wholesale Corp. (NASDAQ: COST) to report healthy profit increases on Thursday.

Big Lots reported that its first-quarter profit rose 20% to $34.5 million, or 42 cents per share, from the same period in the prior year. Quarterly sales grew 2% to $1.15 billion.

Analysts surveyed by Thomson Financial had predicted a first-quarter profit of 36 cents per share on revenue of $1.14 billion.

The Columbus, Ohio-based company said that same-store sales increased 3.4% during the quarter, and also said that results were helped by having about 30 million fewer shares outstanding.

Shares of Big Lots closed up $2.18, or 7.6%, to $30.71. Shares have risen 92.1% since the beginning of the year.

Costco reported a 32% jump in third-quarter profits to $295.1 million, or 67 cents per share. Revenue increased 13% from the year-ago period, to $16.26 billion. Including membership fees, revenue rose to $16.61 billion.

Analysts surveyed by Thomson Financial had expected a profit of 65 cents per share on revenue of $16.35 billion.

The Issaquah, Wash.-based company said net sales for the first three quarters of fiscal 2008 increased 12% to $48.35 billion.

After rising as high as $74.75 in morning trading, Costco shares fell off in the afternoon to close at $72.98. Shares are up 4.6% since the beginning of the year, and hit a 52-week high of $75.23 last week.

Sears Holdings Corp. (NASDAQ: SHLD) also reported Thursday, but didn't have the same luck. Sears unexpectedly swung to a $56 million quarterly loss, blaming stiff competition.

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Small stocks with big potential, Best cities to live, work and play & most polluted cities - Today in Money 5/29

Allan Halprin — 2008-05-29T09:31:00+00:00

Filed under: Microsoft (MSFT), Wal-Mart (WMT), Ford Motor (F), General Motors (GM), Money and Finance Today, Sears Holdings (SHLD), Costco Wholesale (COST), United Parcel'B' (UPS), Under Armour'A' (UA), Bear Stearns Cos (BSC)

In the News:

· Costco Profits Rise 32%, Topping Wall Street Expectations

· Stuggling Retailer Sears Loses $56 Million in 1Q; Missing Estimates

· More Restructuring Coming to General Motors

· Ford Motor to Cut More Jobs

· Heinz Raises Earnings Growth Forecast

· Rival DHL to Ship Some Packages Via UPS

· Microsoft Unit Under Criminal Investigation in Norway

· 85-Year Old Bear Stearns Set to Disappear Today

· Wal-Mart Puts the Squeeze on Food Costs

· Mortgage Rates Rise and Lenders Get Strict

Small Stocks, Big Potential
Little companies get less attention from investors, but they can often provide handsome returns. Here are 21 top picks in the group from investing pros.
Small Wonders - BusinessWeek

Hot Growth, Against All Odds
Here is BusinessWeek's list of fastest-growing small companies. Can they sustain their stratospheric growth? Topping the list is Hansen Natural, LuluLemon Athletica and Graham. Other hot growth companies include J.Crew, Morningstar, Nutrisystem, Quicksilver, Gymboree, Blue Nile, Strayer Education and Under Armour.
Hot Growth, Against the Odds - BusinessWeek List: Hot Growth Companies

2008 Best Cities to Live, Work & Play
In our search for the ten best cities in which to live and work, we sought places with strong economies and abundant jobs, plus reasonable living costs and plenty of fun things to do. There are some very surprising cities that rose to the top, most surprisingly was the comeback kid - Houston, TX. who ranked No. 1. Other top places include Raleigh, NC, Omaha, NE, Boise, ID and Colorado Springs, CO.
Kiplinger's Best Cities - Best Places to Live, Smartest Cities for Your Future

Best & Worst Metro Areas for Pollution
Per capita carbon emissions were highest in Lexington, Ky., 3.4 metric tons per person, and lowest in Honolulu, 1.3 metric tons per person, the report found. Most surprising was Los Angeles which rnankes as second best area.
Report ranks metro areas on pollution - USATODAY.com

Rent a Car, Get Cheap Gas
It goes against all conventional car rental wisdom: agreeing to fill the tank up at the rental agency may actually make more financial sense than going to a gas station. Car-rental agencies are offering discounted fill-ups, as well as other savings.
Rental Companies Offer Cheap Gas, Other Discounts - SmartMoney.com

Permalink | Email this | Linking Blogs | Comments

Before the bell: Futures mixed ahead of GDP; after COST, SHLD reporting

Melly Alazraki — 2008-05-29T07:41:00+00:00

Filed under: Before the bell, Earnings reports, General Motors (GM), Employees, Market matters, Sears Holdings (SHLD), Costco Wholesale (COST), Economic data, Oil, Federal Reserve

Stock futures were somewhat lower early Thursday morning, but then started to reverse course, as investors awaited a revision first quarter GDP as well as better indication on oil supplies. Several major retailers and consumer companies are also reporting. For now, futures are mixed, but it seems momentum might push stocks higher.

On Wednesday, U.S. stocks rose after lower drop than estimated in durable goods orders. Yields on 10-year Treasury bonds passed 4% for the first time since January. There were indications that the Federal Reserve might reconsider its rate cut policy. The Dow industrials rose 45 points, or 0.36%, the Nasdaq Composite added 5 points, or 0.22%, and the S&P 500 rose 5 points, or 0.40%.

The economic calendar is busier today with a release at 8:30 a.m. EDT of the revised first quarter reading on gross domestic product, the broadest measure of U.S. economic activity. Economists expect GDP to be revised upward to 0.9% from 0.6%.
Also at 8:30, weekly initial jobless claims will be reported for an update on the labor market.
At 10:30 a.m., weekly crude inventories numbers will be released and could affect oil trade. So far, oil has dropped somewhat ahead of the report that is expected to show U.S. inventories of crude and petroleum products grew last week.

On the corporate side, several retailers have reported, most notably, Sears and Costco.

Sears Holdings (NASDAQ: SHLD) reported an unexpected loss for is first quarter as it increased promotions and markdowns to clear slow-moving merchandise. Sears lost $56 million, or 43 cents per share, while Wall Street expected a gain of 15 cents per share. It warned it expects its sales and margins to be pressured for the rest of the year due to tough economic conditions. SHLD shares are down 4% in premarket trading.

Meanwhile, wholesale club retailer Costco (NASDAQ: COST) reported that fiscal third-quarter profit climbed 32% to to $295.1 million, or 67 cents per share, beating Wall Street expectations of 65 cents per share. Seems that cash-squeezed customers were looking for bargains in its warehouse clubs. COST shares, however are also down in premarket trading and were 1.7% lower at 7:18 a.m.

And not speaking of earnings, but something else we seem to hear every day as well, General Motors (NYSE: GM) is working on additional restructuring measures, according to Associated Press. These will no doubt include further adjustment to product mix and cost cut measures, which will no doubt include further reduction to its work force.

Permalink | Email this | Linking Blogs | Comments

Earnings expectations: Dell, Sears, Borders, Costco, Tiffany, Omnivision and others

Trey Thoelcke — 2008-05-24T16:40:00+00:00

Filed under: Earnings reports, Forecasts, Dell (DELL), Tiffany and Co (TIF), Sears Holdings (SHLD), Costco Wholesale (COST), Polo Ralph Lauren'A' (RL)

While the earnings season is beginning to wind down for the current quarter, there are still plenty of results to come. Here's a peek at what analysts surveyed by Thomson Financial are expecting from companies scheduled to report results in the final week of May 2008.

These companies are expected to post earnings growth, compared to the same period in the previous year:

Omnivison Technologies (NASDAQ: OVTI) up 81.3% to 32 cents per share, on $178.20 million in revenue
Lions Gate Entertainment (NYSE: LGF) up 48.6% to 37 cents per share, on $410.93 million in revenue
Big Lots Inc. (NYSE: BIG) up 27.7% to 36 cents per share, on $1.14 billion in revenue
Costco Wholesale Corp. (NASDAQ: COST) up 13.8% to 65 cents per share, on $16.32 billion in revenue
Tiffany & Co. (NYSE: TIF) up 10.0% to 40 cents per share, on $648.87 million in revenue
HJ Heinz Co. (NYSE: HNZ) up 9.8% to 61 cents per share, on $2.67 billion in revenue
Dollar Tree Inc. (NASDAQ: DLTR) up 9.5% to 42 cents per share, on $1.05 billion in revenue

These companies are expected to report earnings declines:

Sears Holdings Corp. (NASDAQ: SHLD) down 86.4% to 15 cents per share, on $11.41 billion in revenue
Men's Wearhouse Inc. (NYSE: MW) down 70.6% to 22 cents per share, on $476.98 million in revenue
Polo Ralph Lauren Corp. (NYSE: RL) down 4.4% to 65 cents per share, on $1.15 billion in revenue
Dell Inc. (NASDAQ: DELL) down 2.9% to 33 cents per share, on $15.66 billion in revenue

TiVo Inc. (NASDAQ: TIVO) is expected to swing to a loss of a penny per share, compared to a penny profit a year ago, and report $55.62 million in revenue. And analysts expect Borders Group Inc. (NYSE: BGP) to narrow its loss 7.8% to 47 cents per share, on $801.11 million in revenue.

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Option Update: Costco and Dell volatility flat into EPS

Paul Foster — 2008-05-23T10:00:00+00:00

Filed under: Dell (DELL), Costco Wholesale (COST), Options

Costco (NASDAQ: COST) closed at $70.76 Thursday.

COST is expected to report Q3 EPS on May 29.

COST June option implied volatility of 31 is near its 26-week average according to Track Data's suggesting non-directional price movement.

Dell (NASDAQ: DELL) is recently up 52 cents to $21.41 in pre-open trading.

DELL is scheduled to report Q1 EPS on May 29. Morgan Stanley raised its rating on DELL to Overweight from Equal-weight.

DELL June option implied volatility of 35 is near its 26-week average of 37, suggesting non-directional price movement.

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

Permalink | Email this | Linking Blogs | Comments

Analyst initiations: KCAP, CKSW and LRY

Eric Buscemi — 2008-05-16T11:43:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Costco Wholesale (COST)

MOST NOTEWORTHY: Kohlberg Capital, ClickSoftware and Liberty Property Trust were today's noteworthy initiations:

JMP Securities started shares of Kohlberg Capital (NASDAQ: KCAP) with an Outperform rating and $14 target. The firm believes Kohlberg Capital's alliance with Kohlberg and Company allows Kohlberg Capital to take advantage of considerable expertise. JMP Securities believes Kohlberg Capital has an attractive risk/reward ratio.
Roth Capital initiated ClickSoftware (NASDAQ: CKSW) with a Hold rating and $3.60 target and expects EPS pressure from the depreciating dollar near-term.
Liberty Property Trust (NYSE: LRY) was initiated with a Hold rating at Stifel, citing lack of internal earnings divers and fair valuation.

OTHER INITIATIONS:

Oppenheimer initiated VisionChina Media (NASDAQ: VISN) with a Perform rating and $25 target.
Merrill assumed MGM Mirage (NYSE: MGM) with a Neutral rating.
Morgan Stanley started BJ's Wholesale (NYSE: BJ) and Costco (NASDAQ: COST) with Equal Weight ratings.

Permalink | Email this | Linking Blogs | Comments

Early analyt calls (JCP) (COST) (SNDK)

Douglas McIntyre — 2008-05-16T07:41:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Penney (J.C.) (JCP), Costco Wholesale (COST), Nordstrom, Inc (JWN), SanDisk Corp (SNDK)

Goldman Sachs cut the ratings on J.C. Penney (NYSE:JCP) and Nordstrom (NYSE:JWM) from "buy" to "neutral" due to the rising price of oil, according to MarketWatch.

Morgan Stanley began CostCo (NASDAQ:COST) at "equal weight" according to Briefing.com. The news service also reports that JPM downgraded Sandisk (NASDAQ:SNDK) from "market perform" from "underperform".

Douglas A. McIntyre is an editor at 247wallst.com.

Read | Permalink | Email this | Linking Blogs | Comments

Liz Claiborne, Wal-Mart beat - time to buy retail?

Melly Alazraki — 2008-05-13T14:48:00+00:00

Filed under: Industry, Wal-Mart (WMT), Target Corp. (TGT), Penney (J.C.) (JCP), Costco Wholesale (COST), Economic data, Liz Claiborne (LIZ)

In economics, inferior goods are defined as goods that are less in demand as consumers get richer but more in demand as consumers get poorer -- which of course happens when the economy slows down. Inferior goods are often the basic goods and services such as bus rides, potatoes, instant noodles and so on. And with increased demand, the price of such goods, unless regulated, can actually increase in bad times. A recent example of this is the increase in the price of rice (although other forces were at work there as well).

Well, recently we've seen a trend in retail that showcases this clearly -- discount retailers have been performing well relative to most other retailers. When retailers reported same-store sales for the month of April, Wal-Mart Stores Inc. (NYSE: WMT), Target Corp. (NYSE: TGT) and Costco (NASDAQ: COST) outdid their less fortunate counterparts as they have likely taken customers away from other retailers.

The trend that started a few months ago, with car sales (definitely a normal, not an inferior good) in the U.S. softening overall, has continued and even deepened as consumers have less disposable income after inflation and gas money is taken into account. With credit hard to come by, they have turned to cheaper alternatives. To wit, today Wal-Mart -- my "inferior retailer" -- reported that first-quarter profits rose 6.9%. Conversely, Liz Claiborne (NYSE: LIZ) -- the "normal retailer" -- swung to a first-quarter net loss.

To be fair though, it's the top line that matters if I'm looking at consumers' changing habits and there WMT saw a net 10.2% sales increase while LIZ's sales grew by much less during the quarter, 4.9% -- actually, not that bad. Even AnnTaylor Stores Corp. (NYSE: ANN) raised its forecast Monday. Indeed, somehow retail -- excluding auto sales of course -- has managed to hold up quite well recently despite market conditions as today's report indicates. Including autos, though, retail sales declined in April.

The question for investors is whether any retail stocks merit our attention right now. Some analysts actually believe so, saying that not only discount retailers like Wal-Mart stand to gain from a weakening economy, but even some department stores like J.C. Penney (NYSE: JCP) which generally have lower prices could do well in the current climate.

I don't know about that. Call me skeptical or careful -- either way, I wouldn't jump on any retail at the moment, not the discount retailers and definitely not the higher-end stuff. I mean, even Wal-Mart had a cautious outlook when reporting today, saying that as consumers wrestle with higher energy and food costs they will likely have even less money for other items. That sent WMT stock over 2% lower. And Liz? Liz has actually posted some improvements, such as a 28% jump in sales of its four "direct" brands, but it's still in the midst of a massive restructuring. LIZ shares are gaining over 1.5% today as the results handily beat expectations. But I still wouldn't touch either stock.

At some point, of course, the economy will rebound and so will retail. The time to get back into this sector will be when the first signs of a recovery appear. But right now, no one is sure when that will happen and the expectation is for at least two more quarters of weak results. I might be missing the boat a little by waiting, but tell you the truth, I'm just a little more risk averse these days.

Read | Permalink | Email this | Linking Blogs | Comments

Before the bell: UL, COST, WMT, LTD, CROX, HANS, MSFT ...

Melly Alazraki — 2008-05-08T08:25:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Wal-Mart (WMT), Hansen Natural (HANS), Costco Wholesale (COST), Amer Intl Group (AIG), Limited Brands (LTD), Crocs Inc (CROX), Unilever ADR (UL)

Before the bell: Stocks could bounce back; retail sales, TM, BBY on tap

Unilever (NYSE: UL) is the world's second-largest maker of food and detergent, so you would expect the company to hurt with rising commodity prices. But Unilever has been proactive and has raised prices 4.8% in the quarter to offset its rising costs. In fact, the company said revenue will beat its forecast for the first time in six years on increased prices and sales of Dove soap, Hellmann's mayonnaise and Lipton tea. First-quarter net income climbed 33%, exceeding analysts' estimates.

As expected, April retail sales have so far indeed been strong, although there are some ares weakness is seen.

Costco (NASDAQ: COST) shares are up 1.2% in premarket trading after the warehouse club retailer said April same-store sales increased 8%, beating analysts' expectations of 6.1%.
Wal-Mart Stores Inc. (NYSE: WMT) shares are also higher in premarket trading, up 1.8%, after the world's largest retailer, said same-store sales climbed 3.2%, beating the 2.1% forecast by analysts. Staying with Wal-Mart for a moment, it said it plans to invest millions in Canada and open more supercenters.
The more luxurious items, though, such as lingerie sold at Limited Brands (NYSE: LTD) have seen a slowdown as the company said that April same-store sales fell 5%, falling short of the 2.3% sales decline analysts had anticipated.

There was also some good news from Crocs Inc. (NASDAQ: CROX), which reported better-than-expected quarterly results after the close Wednesday with revenue climbing 40%. The plastic shoe maker affirmed its second-quarter and 2008 outlook and seen its shares jump 16% in premarket trading.

Meanwhile, as Microsoft Corp (NASDAQ: MSFT) keeps telling us it has no plans to make another approach for Yahoo Inc (NASDAQ: YHOO) after it pulled the plug on its $47.5 billion bid earlier this month, some say it could be interested in increasing its stake in Facebook.

In more earnings news: AIG (NYSE: AIG) is expected to report a first-quarter loss of 76 cents a share, when it reports after the close today. But Hansen Natural (NASDAQ: HANS) has already reported disappointing results after Wednesday's close and is seeing its shares fall 18% in premarket trading.

And Apple? That company isn't resting and Wednesday it signed a deal with America Movil SAB to bring the iPhone to Latin America.

Permalink | Email this | Linking Blogs | Comments

5 mutual funds for next 15 years, cities with worst pain at pump & coffee confections - Today in Money 5/8

Allan Halprin — 2008-05-08T08:01:00+00:00

Filed under: Microsoft (MSFT), Wal-Mart (WMT), Starbucks (SBUX), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Toyota Motor Corp. (TM), Money and Finance Today, Best Buy (BBY), Costco Wholesale (COST)

In the News:

· Wal-Mart Rises After Posting Better-Than-Expected April Sales

· Costco Tallies 8% Sales Growth

· Will Microsoft Pounce on Facebook?

· Toyota's Quartlery Profit Drops 28%

· Best Buy Pays $2.1 Billion for 50% Stake in Europe's Largest Cell Phone Retailer

· More Static for Sirius-XM Deal

· Consumers Charge It: Borrowing More Than Doubles in March

· Trading in Dr. Pepper Shares Opens

· Baskin-Robbins Scooping Out New Territory: Soft Serve

· Taco Bell & Fiji Water's 'Green' Reality Check

5 Mutual Fund Picks for the Next 15 Years

These diversified funds have provided superior returns historically and are relatively conservative in their stock-picking and philosophy. Unlike with the specialty funds, you don't necessarily need to be a contrarian buying these. Following are some of those that made the list Morningstar recommends.

http://ibd.morningstar.com/article/article.asp?CN=aol828&id=237408

Need Mortgage Help? Don't Hold Your Breath

Homeowners trying to avoid foreclosure should brace for lengthy delays, busy signals and copious paperwork.

Seeking a workout? Be patient -Bankrate.com

10 Cities With the Worst Pain at the Pump

These places your daily gas cost are worst. Riverside/San Bernandino, CA residents average $7.61 per commuter per day, Atlanta residents $6.62/day, Washington D.C., $6.32/day and Chicago $6.23/day.

Cities With The Worst Pain At the Pump - Forbes.com

Coffee Confections

Think "coffee" means no calories? Not if it comes bottled or canned in a sweet drink. The four chilled frappu-cappu-spresso products that Consumer Reports tested have 100 to 180 calories per serving and 17 to 31 grams of sugars. When it comes to taste, Starbucks Doubleshot leads the pack. Of the other very good options, Caribou has the fewest calories and lowest fat per serving; Bolthouse Farms has the least caffeine.

ConsumerReports.org - Coffee drinks: Ratings, Serving sizes

Ratings: Coffee Drinks

Permalink | Email this | Linking Blogs | Comments

Rice shortages in America? Unbelievable

Jonathan Berr — 2008-04-24T11:50:00+00:00

Filed under: Consumer experience, Wal-Mart (WMT), Costco Wholesale (COST), Economic data

Reports that Wal-Mart Stores Inc.'s (NYSE: WMT) Sam's Club and Costco Wholesale Corp. (NASDAQ:CSCO) were placing limits on the amount of staples such as rice and flour that customers can purchase have left me stunned. It makes me think of the food rationing that went during World War II.

Food inflation is getting out of control. Prices for everything from cereal to pastries have jumped. Pizza shop owners are getting squeezed by soaring costs for milk, flour and cheese. Rice prices alone have soared 68 percent since the start of the year, according to Reuters. Think of that the next time you order takeout from your favorite Chinese restaurant. No wonder demand for Food Stamps is at a record.

Riots over food shortages are breaking all over the world as farmers have found it more profitable to plant corn for ethanol instead of food crops. The corn-based fuel additive is a bad deal for both the economy and the environment, according to many experts.

People are getting pinched every time they go to the supermarket, which is why they are stocking up at the warehouse stores where they can buy in bulk. At least they were until now. The companies, though, are trying to put a positive spin on the situation.

'Sam's Club said the large-sized bags of rice subject to the limits are typically purchased by its restaurant owner or food service customers," Reuters reported, adding that there were no plans to limit sales of flour and cooking oil "at this time." The news agency reports that some Costcos have put "limits on sales of items such as rice and flour, but it was trying to modify those restrictions to meet customer demand."

My guess is the businesses who buy their supplies at Sam's Club or Costco are probably too small to meet the minimum purchase requirements of food wholesalers. Of course, they will pass on their rising costs to the consumer.

The head of the California Rice Growers Association insists that supplies are adequate to meet demand. That may be the case for now, but you have to wonder what the future holds for rice and other food staples.

Read | Permalink | Email this | Linking Blogs | Comments

Scramble for your tax rebate, 13 ways to lower your electric bill & rags-to-riches billionaires - Today in Money 4/24

Allan Halprin — 2008-04-24T08:28:00+00:00

Filed under: Apple Inc (AAPL), Starbucks (SBUX), PepsiCo (PEP), Amazon.com (AMZN), Ford Motor (F), Motorola (MOT), Money and Finance Today, Costco Wholesale (COST)

In the News:

· Apple Crushes 1Q Earnings Expectations

· Ford Swings to a $100 Million Profit in 1Q

· Starbucks Stock Tanks After 1Q Earnings & Profit Warning

· Amazon Profit Up 29%, But Stock Falters

· Motorola 1Q Loss Widens as Phone Sales Fall

· International Growth Drives PepsiCo Profits Higher

· Sam's Club, Costco Limit Rice Sales Amid Global Food Inflation

· Struggling Sharper Image Up for Sale

· Mortgage Demand Declines; Rates Rise as 30-Year Fixed Back Above 6%

· Get Cash for Your Cavities

The Scramble for Your Tax Rebate

Beginning next week more than 130 million Americans will open their mailboxes to find tax rebate checks, ranging from $600 to $1,200 per household. Retailers across the country desperately want a piece of that action in a U.S. economy flirting with recession, and the sales promotions tied to the government cash injection are already coming fast and furious. Big-box chains are devising crafty ways to coax stimulus checks into their cash registers.

Big-Box Retailers Want Your Tax Rebate - Business Week

How to Spring-Clean Your Finances

Spring-cleaning your finances can have a similarly gratifying effect to cleaning your house. By spending time now to get your financial paperwork in order and address any problem spots, you'll be able to focus your energy this summer on tasks like perfecting your backhand or making a killer barbecue rub. So what should be on your spring financial to-do list? Here are some of the most important tasks you should focus on with ratings for each of the tasks by difficulty level.

Financial Spring-Cleaning To-Do List - Morningstar

World's Happiest Places

Taking all things together on a scale of one to 10, how happy would you say you are?" With that question and a global survey, the folks at the World Database of Happiness have ranked 95 nations on a happiness scale. These countries are where the happiest people on Earth live. Topping the list is Denmark followed by Switzerland, Austria, Iceland and Finland, Australia and Sweden. Coming in last place is Moldova.

Chasing Happiness - Forbes.com

13 Ways to Lower Your Electric Bill

Forgoing the family road trip will spare you from getting dinged by sky-high gas prices this summer, but staying at home in the air-conditioned comfort of your living room may not result in the cost savings you expected. Here are simple ways to keep electricity prices from overpowering your budget.

13 Simple Ways to Lower Your Electric Bill (- SmartMoney.com

8 Rags-to-Riches Billionaires

Some of the world's richest people climbed a very long way to get there. Two-thirds of the over 1,000 billionaires in the world are self-made, who have risen from next to nothing to become among the world's richest. These are the stories of people like George Soros, Sheldon Adelson, Kirk Kerkorian, russian Roman Abramovich and the queen of media Oprah Winfrey to name a few.

Lessons Of The Bootstrap Billionaires - Forbes.com

8 Bootstrap Billionaires

Rising Fuel, Hotel Costs the Pits for NASCAR Fans

A soft economy and record gas prices have NASCAR fans weighing the wisdom of fueling their cars and campers to watch other vehicles race.

Rising fuel, hotel costs the pits for NASCAR fans - USATODAY.com

Show Danica the Money!

Indy car racer Danica Patrick wins! Expect big endorsements to follow.

Show Danica The Money - Forbes.com

Permalink | Email this | Linking Blogs | Comments

Costco: 'Best of breed' discount retailer

Steven Halpern — 2008-04-17T16:58:00+00:00

Filed under: Newsletters, Costco Wholesale (COST), Stocks to Buy

"Finding its way onto the short-term bullish list is discount retailer Costco Wholesale (NASDAQ: COST), our 'focus stock of the week'," says Chris Johnson in his contrarian advisor service, Insightful Investor.

"The warehouse giant is currently seeing a positive mix of technical strength along with growing pessimism that makes it a potential outperformer. Costco is one company that has maintained a level of demand not seen throughout the bulk of the retailing sector.

"COST's core business, which caters to small businesses and households willing to buy in bulk, has maintained strength despite the slowing economy. In fact, the company's latest earnings report, released March 5, beat analyst expectations by 23%.

"Reflective of its fundamental strength, COST's stock price has remained a relative strength leader by trading above its 50-day moving average. The equity has outperformed not only most of its peers in the retail group, but the overall market as well.

"Despite this fundamental and technical strength, our sentiment indicators are showing increased pessimism toward the shares. COST's put/call ratio suggests that we could see some additional strength for the stock in the coming weeks.

"Analyst recommendations on COST also show skepticism. Only 27% of covering analysts recommend a 'buy' on the stock. The light buy recommendations are likely due to weakness in the overall retail group.

"The fact that COST appears to be among the 'best of breed' for retailers warrants more favorable attention from the analyst community. We thus anticipate upgrades that should boost the stock price. We also recommend leveraging the play by purchasing the May 62.50 call."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Permalink | Email this | Linking Blogs | Comments