(ZOLT)- Zoltek Companies Inc
(XRIT)- X-Rite Incorporated
(VZ)- Verizon Communications
(VRTU)- Virtusa Corp
(VRAZ)- Veraz Networks Inc
(VM)- Virgin Mobile Usa Inc
(USM)- United States Cellula …
(TDS)- Telephone And Data Sy …
(TCMI)- Triple Crown Media Inc
(SSN)- Samson Oil & Gas Ltd
(NURO)- Neurometrix Inc
(NTRI)- Nutri Sys Inc New
(DEKU)- Dekania Corp
(COMS)- 3Com Corporation
(CLX)- The Clorox Company
(CLCT)- Collectors Universe Inc
It appears that Sprint’s (S) CEO Dan Hesse is not playing games in his quest to curb to exodus of subscribers.
Rumors are that after both Verizon (VZ) and AT&T (T) adopted a $99 “unlimited plan” Tuesday, it was reported Sprint may just throw down the gauntlet and go with a $60 plan.
Hesse has been aggressive since taking them helm to cuts costs and redundancies like having two headquarters. He also had made tremendous strides in the customer service arena.
Now, wouldn’t a calling plan that cuts the competition by 40% be the prefect way to attract new customers? It would sure go a long way to ensure those of us currently there resist the urge to switch when are plans come up….
This is a move straight out of the Nextel playbook. I was a Nextel subscriber from way back and was always extremely happy with the service and value I got from them. They would call me with new plans that based on my usage, would save me money and the new plans did just that. That all stopped after the merger and hopefully, this plan comes into play and my phone rings soon…..
Disclosure (“none” means no position): None
At the end of January in a conference call Sherwin Williams (SHW) CEO Chris Connor said he would recommend increasing the dividend 11% to 35 cent a share. At that level Sherwin will yield 2.6% at today’s prices.
Today the Board of Directors approved that request enacting the company’s 29 consecutive annual dividend increase.
Disclosure (“none” means no position):Long SHW
After watching its stock price fall continually from its post internet bubble high of $43 set in Jan. 2006 and seeing Google (GOOG) surpass it in virtually every online metric, Yahoo’s (YHOO) senior management has decided to make sure if Microsoft (MSFT) does buy them, they are richly rewarded. Too bad for shareholders that actions like this just might cost them money..
A new “employee retention and severance” program for SENIOR EXECUTIVES looks like this:
* Up to two years of full pay and benefits following departure,
* $3,000-$15,000 of “outplacement services” (help finding a new job),
* Accelerated stock and option vesting, and
* The ability to leave the company–and trigger the severance payments–for any “good reason”
Now what is important is that this plan goes into effect “in the event of a change of control” of the company. What this all amounts to is a near $1 billion increase in the cost of any acquisition of Yahoo. Now, while in this case the cost may be born by Microsoft, it will probably come at the expense of a reduce offer price, lower bonuses to retain current non-senior executives and, for these shareholders who may elect to take shares for the transaction, a prolonged “synergy” period as the excess costs are absorbed.
Essentially Yang realized that the offer from Microsoft was a great one and that he would have a hard time getting shareholders to say “no”. He also recognized that Microsoft was the only bidder despite his attempts to interest Google and News Corp. (NWS) and that a higher offer was not going to be forthcoming. Without a higher per share offer coming, this loathsome action was the next best choice to wring a few more buck for him and his cronies out of the deal. Slimy…
All this so Yang & Co. can cash out at a higher price than the rest of the “little folks” (this would include his employees and shareholders)? With a mindset like this, any wonder the stock has been a dud this decade?
The worst case scenario would be for Microsoft to tell them to take a hike and let the socks price, current at $28 ($3 below the offer price) plummet back down to the $20 level it was at prior to Microsoft’s bid. Once there, it can comfortable resume its downward march to $10. All this due to greed….
I thought we were trying to get passed management enriching themselves at the expense of employees and shareholders?
Disclosure (“none” means no position): None
Jeter, Riot’s, Schoonover, Clemens
– Red Sox fans did not need this to tell you the answer
– Another take on the Circuit City (CC) CEO.
– Adam finds this gem about sportscasters questioning if Clemens has lost his best fastball…… IN 1995!!
In an SEC filing on Wednesday, Horizon Asset Management disclosed it owned 22,642,832 shares of Leucadia (LUK). The holdings amount to 10% of the outstanding shares.
Horizon, “focuses on a security selection approach which emphasizes the purchase of equities selling at discounts to their intrinsic value and debt instruments selling below our assessment of their inherent worth. It is noteworthy to point out that today there is a value investor bias so permeating the professional investor population that it is by far the dominant investment school of thought. Thus one needs to be all the more contrarian in a value focused world. We believe this new environment requires an additional research focus on unique, ‘future potential’ situations which classically would be called growth stocks. A more thorough analysis becomes particularly important in the assessment of “
Disclosure (“none” means no position):None
Research reports have Cuba holding the raw materials to make 2 to 3 billion gallons of ethanol a year. The problem? They lack the capital to make it happen.
Either of these amounts would vault the tiny nation into 3rd place on the global stage in production of the biofuel. Now, we know Archer Daniels Midland (ADM) tried to enter the Cuban market in the mid 1990’s but their advances were shunned by Raul’s brother, Fidel.
Rumors are that Raul in a much more pragmatic person that Fidel. His interests lie more in leaving a legacy of prosperity behind for “his people” that spreading “la revolucion”. Fidel has claimed biofuels hurt “poor people” around the globe and thus has hampered production progress in Cuba. His argument, unfortunately for him, is more suited to corn ethanol, not the sugar cane ethanol his country would produce and profit handsomely from.
Cuba has been improving ethanol facilities in the nation but even they admit they are 4 or 5 years away from producing amounts sufficient to power cars.
Could there be any better partner for the nation that the worlds largest producer of the fuel? ADM is able to provide the nation a “plant to market” solution for the fuel.
Cuba has already allowed private investment albeit on a limited scale in its tourism industry in order to accelerate its proliferation. There is no reason for Raul to resist the same in his energy sector.
Perhaps this is why we have not heard anything from ADM about constant rumors they are entering the Brazilian ethanol market? Why go there when they can stay closer to home..
Disclosure (“none” means no position):Long ADM
Wal-Mart (WMT) reported results Tuesday and they did not disappoint.
The Numbers:
Net sales for Q4 of fiscal year 2008 were $106.269 billion, an increase of 8.3% over Q4 of fiscal year 2007. Income from continuing operations for the quarter was $4.096 billion, an increase of 4% from $3.940 billion in the fourth quarter of fiscal year 2007.
Diluted EPS from continuing operations for Q4 of fiscal year 2008 were $1.02, up 7.4% from $0.95 per share in the same prior year quarter, including a net charge of approximately $0.02 per share for certain items this year.
Net sales for the fiscal year ended Jan. 31, 2008 were $374.526 billion, an increase of 8.6% over fiscal year 2007. Income from continuing operations for the fiscal year ended Jan. 31, 2008 increased 5.8% to $12.884 billion, up from $12.178 billion in the prior year. Diluted EPS from continuing operations for the fiscal year ended Jan. 31, 2008 were $3.16, up 8.2% from $2.92 in the prior year.
The Company expects diluted earnings per share from continuing operations to be between $0.70 and $0.74 for the first quarter of fiscal year 2009, and between $3.30 and $3.43 for the full fiscal year 2009 (4% to 8.5% growth).
Hard to find something not to like there. The real key is that International Segment operating profits have risen from 21% to 23% of the company’s total. They grew at 11.8% for the year and 14% for Q4. At this pace, Wal-Mart will be 50/50 domestic and international profits in 6 to 8 years.
Wal-Mart ended the year with $5.5 billion in cash after buying back $7.691 billion in stock during the year. That means $2.412 billion was repurchased in Q4. Monday I said “anything less than $2.5 billion would be disappointing”. While not thrilled, it is hard to be upset when they basically nailed the number given to overall results.
Wal-Mart is excelling in a dismal operating environment. They are gaining customers from Target (TGT), buying back shares at decade low prices, plowing money into rapidly growing international operations and doing a much needed make-over on domestic ones. The results are showing up on the bottom line now for investors.
Whenever you have a company improving results in an environment that sees its competition and industry faltering, it is a good idea to take a real close look. When the industry does turn (they always do) what you then have is a much stronger position in it. Macro conditions will then dictate operational improvements and with that stronger position, the company’s performance ought to exceed that of the group.
Disclosure (“none” means no position):Long WMT, None
Downgrades
Gold Fields (GFI)- HSBC Securities Neutral » Overweight
IAMGOLD (IAG)- HSBC Securities Underweight » Neutral
DRDGOLD (DROOY)- HSBC Securities Underweight » Neutral
Deckers Outdoor (DECK)- Wedbush Morgan Hold » Buy
Western Alliance Bancorp (WAL)- Sandler O’Neill Sell » Hold
North American Energy (NOA)- BMO Capital Markets Market Perform » Outperform
Foundation Coal (FCL)- Stifel Nicolaus Hold » Buy
UnitedHealth (UNH)- BMO Capital Markets Market Perform » Outperform
Nice Systems (NICE)- UBS Neutral » Buy
Mentor Graphics (MENT)- Citigroup Hold » Buy
Stanley Inc. (SXE)- Cowen & Co Neutral » Outperform
Barnes Group (B)- BB&T Capital Mkts Hold » Buy
Hansen Natural (HANS)- JP Morgan Neutral » Overweight
Watson Pharm (WPI)- WR Hambrecht Hold » Buy
Gasco Energy (GSX)- JP Morgan Neutral » Overweight
British Amrcn Tobacco (BTI)- Deutsche Securities Hold » Buy
Gorman-Rupp Company (GRC)- Friedman Billings Underperform » Mkt Perform
U.S. Steel (X)- UBS Neutral » Buy
Chartered Semi (CHRT)- JP Morgan Underweight » Neutral
Franklin Bank Corp (FBTX)- Keefe Bruyette Underperform » Mkt Perform
Nelnet (NNI)- Friedman Billings Underperform » Mkt Perform
Downgrades
Carrizo Oil & Gas (CRZO)- Dahlman Rose Buy » Hold
Kinross Gold (KGC)- HSBC Securities Neutral » Underweight
Agnico-Eagle Mines (AEM)- HSBC Securities Neutral » Underweight
OmniVision (OVTI)- Longbow Buy » Neutral
Echostar Holdings (SATS)- Stifel Nicolaus Buy » Hold
Marlin Business Services (MRLN)- William Blair Outperform » Mkt Perform
Bed Bath & Beyond (BBBY)- Morgan Keegan Mkt Perform » Underperform
Superior Essex (SPSX)- Morgan Joseph Buy » Hold
Pzena (PZN)- Keefe Bruyette Mkt Perform » Underperform
Bankunited Fin (BKUNA)- Wachovia Outperform » Mkt Perform
Pharmasset (VRUS)- UBS Buy » Neutral
SkyWest (SKYW)- Soleil Buy » Hold
UBS AG (UBS)- Bear Stearns Outperform » Peer Perform
FMC Tech (FTI)- JP Morgan Overweight » Neutral
Sigma Designs (SIGM )- Robert W. Baird Outperform » Neutral
Wednesday’s Picks
Jeff Macke likes Microsoft (MSFT) $28.17
Guy Adami says XTO Energy (XTO) $57.72 is a buy.
Karen Finerman prefers Kaiser (KALU) $71.97
Friday’s Results
Jeff Macke recommends shorting the Dow with Shrt Dow30 Proshares $63.21 (DOG).Close $63.65 GAIN
Karen Finerman prefers Kaiser Aluminum $67.43 (KALU).Close $68.54 GAIN
Pete Najarian thinks Burlington Northern $89.09 (BNI) is a buy. Close $89.11 GAIN
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 4-1
Jeff Macke= 11-8
Tim Seymore= 2-4
Guy Adami= 10-12
Pete Najarian= 12-8
Karen Finerman= 11-9-1
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
This is a great video in which Whitney talks about investing ideas based on filings. Topics include Ackman, Target (TGT), Lampert, Icahn and others..
(BAMM)- Books-A-Million Inc
(BELM)- Bell Microproducts Inc
(BLD)- Baldwin Technology Co …
(BRCM)- Broadcom Corp
(BTRX)- Barrier Therapeutics Inc
(BX )- Blackstone Group L P
(CTAS)- Cintas Corporation
(CYBX)- Cyberonics Inc
(DLM)- Del Monte Foods Co
(IACI)- Iac Interactivecorp
(IAR)- Idearc Inc
(LPX)- Louisiana Pac Corp
(LVLT)- Level 3 Communication …
(MS)- Morgan Stanley
(MVCO)- Meadow Valley Corporation
(N)- Netsuite Inc
Spam, Krugman, Short Sellers, Citi
– After all these years, still a money maker..
– How does Paul Krugman have a job? Read this piece. We have been reading and hearing the same thing for 4 months now…. Just catching on Paul?
– Kass has a point, Stein has blamed everyone but the guilty parties, the companies themselves.
– Chad Brand looks at Citigroup’s (C) segments
Best Buy (BBY) came out and reduced FY earnings and the news sent the stock down over 3% Friday. Knowing Best Buy is well run and Circuit City (CC) is not, investors sent City shares down twice that.
For the fiscal year ending March 1, Best Buy reduced its outlook to per-share earnings of $3.05 to $3.10 from $3.10 to $3.20. Expected same-store sales growth was cut to 2.5% to 3% from 4%, and the company maintained its outlook for revenue of about $40 billion.
CEO Brad Anderson said that although the company’s December results were in line with expectations, “soft domestic customer traffic in January, coupled with our near-term outlook, now indicate that our fourth-quarter revenue will fall short of our planned targets.”
Circuit City has said nothing specific about upcoming numbers (assume the worst) but did do something noteworthy.
After Best Buy, Wal-Mart (WMT) and NetFlix (NFLX) announced they will go exclusively with the “Blue-ray” HD DVD format, Circuit City, apparently the last one in the loop was forced to price cut a stand-alone HD player that plays both Sony Corp.’s Blu-ray disc and Toshiba Corp.’s HD DVD format titles by $100.
I can’t wait to hear CEO Schoonover’s excuse for the latest quarter. Maybe, “Perhaps were overly optimistic about a cash strapped consumers willingness to buy soon to be irrelevant technology”.
Disclosure (“none” means no position):Long Wal-Mart, None
LeapFrog (LF) has new products rolling out this summer that are the best the company has had in its history.
1- “The Crammer”: A replacement for handwritten index cards. It allowing you to enter data for each side of virtual “cards” and run through them on the 2.5-inch screen. Study aids various subjects are available for download.
2- “The Tag”: A handheld that works with Tag-enabled books to create an independent and interactive reading experience for children. By touching the Tag reader anywhere on any page of a Tag book, children can bring their favorite stories to life, easily skipping from page to page or book to book.
3- “Learning Path”: A free online tool at leapfrog.com that interfaces with LeapFrog products to show parents what their child is learning and how their activities or games map back to the Scope and Sequence of educational skills that the Company has always built into every product.
LeapFrog lost its way 2 years ago as its products rapidly became outdated in a handheld and online world. This latest line of products has taken them back to the head of the pack.
Rather than thinking like a “children’s toy” company, LF seems to have changed that and is now a “educational technology” one. With that change has come the innovative thinking that is clearly evident in the new product line.
Here is a very good review of the new line from someone who has actually played with them.
Disclosure (“none” means no position):Long LeapFrog