BloggingStocks

Circuit City loses board member (and the patience of investors)

Steven Mallas — 2008-07-03T16:44:00+00:00

Filed under: Wal-Mart (WMT), Blockbuster Inc 'A' (BBI), Best Buy (BBY), Circuit City Stores (CC)

According to this Wall Street Journal (subscription required) piece, a member of the Circuit City Stores, Inc. (NYSE: CC) board has left the building. Lead outside director Mikael Salovaara resigned yesterday. Can you blame the guy?

No you can't. Circuit City doesn't have any sort of game plan at the moment, and it's sinking fast. The company's stock is priced at $2.31 as I write this. The goofy Blockbuster Inc. (NYSE: BBI) transaction is gone (for now, at least...there are reports saying that it could be resurrected at a later date, although I don't buy that it will happen at all). It isn't competing effectively against Best Buy Co., Inc. (NYSE: BBY) and Wal-Mart Stores, Inc. (NYSE: WMT). In short, Circuit City is a Titanic-like electronics retailer that doesn't know how to keep its ship from hitting icebergs.

So this resignation isn't surprising. Of course, is there any way to make money off the stock? I do believe there is downside to come on the share price, which would therefore imply that shorting it could work out. Alas, I wouldn't recommend it. You just know that some company and/or financial entity out there might come in at any point and make a bid, and the shares could skyrocket. Although the Blockbuster deal didn't make sense, it doesn't mean that there isn't some transaction scheme out there that would be logical. Circuit City is a stock merely to watch out of curiosity, it's not one to do anything about.

Disclosure: I don't own any company mentioned here; positions can change at any time.

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Blockbuster yanks Circuit City bid

Peter Cohan — 2008-07-02T08:33:00+00:00

Filed under: Deals, Blockbuster Inc 'A' (BBI), Best Buy (BBY), Circuit City Stores (CC)

Ever since Circuit City Stores (NYSE: CC) CEO Philip J. Schoonover sliced 3,400 sales people in March 2007 to save money, I have questioned the savvy of its management. That's because many of those fired sales people took their customers over to Best Buy (NYSE: BBY). As its stock lost 86% of its value, I was surprised that anyone would make a bid for it.

Yet Blockbuster (NYSE: BBI), the struggling video store chain, decided to buy. I don't know what got into Blockbuster's head to make it think that combining two struggling companies would make an agile competitor. The Richmond Times reports that it wanted to create a one-stop shop for movies, games, and electronic equipment. But that dream died when Blockbuster pulled its $1.3 billion offer after reviewing Circuit City's books.

Carl Icahn has said he would buy Circuit City. But it's losing money -- $164.8 million, or $1 a share, in its fiscal first quarter. This was $100 million more than its Q1 2007 loss. And Blockbuster's conclusion after a closer look at its financial statements does not bode well for Circuit City's future. Circuit City stock is down 7.8% in pre-market. Let's see whether any new bidders emerge.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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Best Buy plans to double sales by 2013

Brian White — 2008-06-26T12:31:00+00:00

Filed under: Competitive strategy, Best Buy (BBY)

Best Buy Inc.'s (NYSE: BBY) Chief Operating Officer made a pretty strong pledge this week. Brian Dunn suggested that the largest consumer electronics retailer in the U.S. would double its sales to $80 billion within five years. This has an eerie air about it, as it sounds much like Dell, Inc. (NASDAQ: DELL) then-CEO Kevin Rollins many years ago. While Dell's ambitious goal didn't really pan out nearly as nice, Best Buy has a much better proposition to get to its goal.

Dunn's announcement at the retailer's annual shareholder's meeting this week was backed up by the fact that Best Buy has already doubled in size from 2003 to 2008. Its sales went from $20 billion to $40 billion in that five-year period. Keep in mind that one of Best Buy's chief competitors, Circuit City Stores, Inc. (NYSE: CC), is basically on the ropes hanging on for dear life. Wal-Mart Stores, Inc. (NYSE: WMT) is Best Buy's largest competitor, but it doesn't carry near the breadth of actual consumer electronic products that Best Buy does. This positioning still leaves Best Buy free to navigate to $80 billion by 2013. But, doubling every five years is no easy task, and especially in the consumer spending environment we're in now.

What is fascinating is that Best Buy apparently controls only about 20% of the consumer electronics market, and about 30% of retail PC sales in the U.S. Combine those low numbers with Best Buy's very aggressive international expansion and partnerships and it's easy to see that $80 billion in annual sales is already being attacked. Will it get there? We'll be checking -- all the way to 2013.

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Earnings highlights: Goldman Sachs, Best Buy, General Mills, Carnival and others

Trey Thoelcke — 2008-06-21T09:40:00+00:00

Filed under: Earnings reports, Archer-Daniels-Midland (ADM), Best Buy (BBY), Carnival Corp (CCL), Goldman Sachs Group (GS), General Mills (GIS), Deere and Co (DE), Western Union (WU)

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

Best Buy Inc. (NYSE: BBY) beat Q1 estimates as consumers spent their government stimulus checks.
Carnival Corp. (NYSE: CCL) posted better than-expected Q2 results but offered cautious Q3 guidance.
Cyberonics Inc. (NASDAQ: CYBX) beat Q4 expectations and offered full-year guidance.
FactSet Research Systems (NYSE: FDS) had better-than-expected Q3 results and 500 new subscribers.
General Mills Inc. (NYSE: GIS) raised its full-year guidance, sending shares up near the 52-week high.
Goldman Sachs Group Inc. (NYSE: GS) results beat the previous quarter and analysts' estimates.
John Wiley & Sons Inc. (NYSE: JW.A) doubled its Q4 earnings due to an acquisition.
Life Partners Holdings Inc. (NASDAQ: LPHI) lifted its Q1 outlook after "best quarter" in company history.
Lindsay Corp. (NYSE: LNN) Q3 profits nearly doubled, but the share price plunged anyway.
Meade Instruments Corp. (NASDAQ: MEAD) narrowed its full-year net loss due to restructuring.
Pall Corp. (NYSE: PLL) beat Q1 expectations on sales growth that was broadly based across markets.
Titan Machinery Inc. (NASDAQ: TITN) beat Q1 estimates on strong demand for agricultural equipment.
Vermont Pure Holdings Ltd. (AMEX: VPS) posted strong Q2 results despite a bad debt write-off.
Western Union Co. (NYSE: WU) said 2008 profits would beat estimates and announced share buyback.

More earnings highlights from this week: Morgan Stanley, FedEx, Ford, GE, Circuit City and others

Also, BusinessWeek likes the earnings prospects for agricultural stocks such as Archer Daniels Midland (NYSE: ADM), Monsanto (NYSE: MON), and Deere & Co. (NYSE: DE).

Upcoming results to watch for include Walgreen (NYSE: WAG), Kroger (NYSE: KR), Bed Bath & Beyond (NASDAQ: BBBY), General Mills (NYSE: GIS), Monsanto (NYSE: MON), Nike (NYSE: NKE), Oracle (NASDAQ: ORCL), Research in Motion (NASDAQ: RIMM), ConAgra (NYSE: CAG), Discover (NYSE: DFS), McCormick (NYSE: MKC), Rite Aid (NYSE: RAD:), and KB Home (NYSE: KBH).

Visit AOL Money & Finance for more earnings coverage.

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hhgregg (HGG): Share price cycles in bullish 'pennant' pattern

Larry Schutts — 2008-06-19T16:30:00+00:00

Filed under: Earnings reports, Wal-Mart (WMT), Best Buy (BBY), Circuit City Stores (CC), Technical Analysis, Stocks to Buy

hhgregg (NYSE: HGG) is a specialty retailer of consumer electronics, home appliances and related services. The firm operates 97 southeastern and midwestern U.S. stores, under the names hhgregg and Fine Lines. It also operates a retail Web site. Offerings include notebook computers, televisions, DVD recorders, refrigerators, ranges, dishwashers, freezers, washers, dryers and Serta mattresses. Competitors include Best Buy (NYSE: BBY), Circuit City Stores (NYSE: CC) and Wal-Mart (NYSE: WMT).

The company pleased investors earlier in the month, when it reported solid Q4 results and offered FY09 EPS guidance in-line with the consensus Street view. Management attributed success to increased sales of higher-priced video and major appliance products. Plans call for opening 15 to 17 stores, during the new fiscal year.

HGG shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys", four "buys" and two "holds". Analysts see a 20% average annual growth rate, through the next five years. The HGG Price to Sales ratio (0.32), Price to Cash Flow ratio (11.97), Sales Growth rate (14.41%), Return on Investment (11.96%) and Return on Equity (43.70%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 45% of the outstanding shares. Since going public last July, the stock has traded between $7.76 and $17.22. A stop-loss of $10.65 looks good here.

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.

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More troubles for Circuit City (CC) during the first quarter

Michael Fowlkes — 2008-06-19T15:00:00+00:00

Filed under: Major movement, Earnings reports, Forecasts, Bad news, Management, Competitive strategy, Best Buy (BBY), Circuit City Stores (CC)

It is safe to say that the past couple of years have been tough on shareholders of Circuit City (NYSE: CC), and today is no different as the company posted a large loss for its fiscal first quarter. Shares of the electronics retailer are down 7.5% after the company posted a loss of $1 a share for its most recent quarter.

The company stated that the main reason for its poor performance last quarter was weak sales performance in the company's established stores. This really should not come as a big surprise to us since we have been well aware of the company's faltering sales over the past couple of years. On the whole, same-store sales dropped by 11.3%, and continues to affirm the belief that Circuit City definitely has its work cut out for it if it ever wants to start regaining its lost market share.

The total loss on the quarter totaled $164.8 million, about triple the $54.6 million loss it recorded for the same period last year. I wish I could say that things are looking brighter down the road but that is just not the case, as the retailer is expected to post another large loss for its second quarter. Analysts had been expecting to see a loss of $143.4 million for the current quarter, but the company issued weaker guidance, stating that it expects to see a loss of somewhere between $170 and $185 million.

Revenues also dipped in the last quarter, which marks the fifth straight quarter of shrinking revenues, as the company posted revenues of $2.3 billion. This equates to a 7.4% drop in revenues, slightly below analyst estimates of $2.37 billion.

The company, which put itself up for sale last month, simply has not been able to compete against its main rival, Best Buy (NYSE: BBY). For Best Buy's most recent quarter, the company posted a same-sore sales increase of 3.7%. Looking at the difference in the two stores same-store sales growth gives us a really clear picture of just how much healthier is Best Buy.

All in all, yet another disappointing quarter for the company, and all signs are pointing to more rough times ahead.

For an idea of just how bad the stock has performed over the past 24 months, Here's a two-year chart:

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Best Buy tries used video games: Look out GameStop?

Zac Bissonnette — 2008-06-18T15:15:00+00:00

Filed under: Products and services, Competitive strategy, Best Buy (BBY)

The Wall Street Journal reports that Best Buy (NASDAQ: BBY) is test piloting the sale of used video games at its Canadian stores, with an eye toward expanding the program into the United States. While the company says it's too early to say whether the plan will take off, Best Buy's head of international relations said on a conference call that "We're very, very, very hopeful that this will be another avenue of increasing our relationship with the consumer generally."

What a nice way of saying "making more money." The used game business carries substantially better margins than retailing new games, and the frequency of trade-ins reduces inventory costs. Right now the leader in used games is GameStop (NYSE: GME), but you have to think a big push from Best Buy could take some market share in this profitable category. Alternative GameStop's small size and more knowledgeable staff could make it more appealing to consumers than Best Buy -- the two stores have locations in many of the same malls.

Even after its recent price decline, GameStop investors should be taking a hard look at the durability of the company's competitive advantage. The company has so far done exceptionally well competing with big box retailers, a testament to tremendous management and a strong concept. But it's a battle that's likely to continue and, looking further into the future, you have to wonder whether higher-quality digital delivery of games could hurt the company.

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Despite EMI's woes, the company may have the consumer at heart

Richard Driver — 2008-06-17T18:09:00+00:00

Filed under: Products and services, Consumer experience, Apple Inc (AAPL), Best Buy (BBY)

In the last few weeks, I've become more and more critical about the British music company EMI Group, especially with the coming release of Coldplay's fourth album Viva la Vida or Death and All His Friends. Numerous reports and rumors are circulating that the company is betting all of its yearly profits on the album's success, and this only fuels my fears about the success that the album would enjoy. It was never in doubt that the album would be huge, but with the band hoping to shake the image of a band that earns more profits for label management, the rumors worked against that.

In any case, I finally bought the album this morning from Best Buy Co., Inc. (NYSE: BBY) and was slightly surprised to see that the retail chain was carrying a very limited number of vinyl copies. Naturally, and possibly without thinking of my Apple Inc. (NASDAQ: AAPL) iPod, I splurged for this version of the album. Regardless, when I finally opened the shrinkwrap I found another surprise -- a CD copy packaged with the vinyl. Clearly, EMI and American branch Capitol Records are aware that a vinyl copy hardly transfers to an iPod easily.

The label may not like the fact that I will burn that CD copy to my iPod because of lingering fears that somehow that will result in illegal sharing, but it does say something possibly revealing about EMI. Since Guy Hands and private equity firm Terra Firma bought out the music company last September, the company has taken steps that some view as not music company practices, and lost many big artists in the mean time. But if a consumer can purchase one copy of an album from the music giant and receive two, then the company might not be in such trouble.

That is the very dynamic that the music industry needed to show: that it cared about the consumer. Digital growth in the past year has indicated that it did, and while a vinyl and CD copy might seem against that trend, it shows that the industry knows where consumers are listening to music the most: through portable devices.

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Best Buy Q1 profit falls: La-Z-Boy swings to Q4 loss

Trey Thoelcke — 2008-06-17T17:41:00+00:00

Filed under: Earnings reports, Best Buy (BBY)

On Tuesday Best Buy Inc. (NYSE: BBY) reported that its first-quarter profits fell due to economic conditions, and furniture maker La-Z-Boy Inc. (NYSE: LZB) said it swung to a fiscal fourth-quarter loss due to lower retail sales.

Best Buy's first-quarter profits dropped 7% from a year ago to $179 million, or 43 cents per share. Analysts polled by Thomson Financial had expected a profit of 37 cents per share.

Richfield-based Best Buy said revenue jumped 13% to $8.99 billion as customers began spending their government stimulus checks and also took advantage of low-interest financing. Analysts had expected sales of $8.57 billion for the quarter that ended on May 31.

Same-store sales rose 3.7%, but Best Buy warned of a "volatile" year ahead.

The share price fell 5.3% Tuesday to close at $43.46. Shares have risen 10.2% in the past three months, but are down 9% from a year ago.

For the quarter ended April 26, La-Z-Boy reported a net loss of $4.4 million, or 9 cents per share, compared with a profit of $7.7 million, or 15 cents per share, for the same period a year ago. Revenue fell 10% percent, to $368 million, as fewer consumers are purchasing larger furniture.

Analysts polled by Thomson Financial, on average, had forecast earnings of 2 cents per share on sales of $375.9 million.

For the full year, La-Z-Boy said it lost $13.5 million, or 26 cents per share, compared with earnings of $4.1 million, or 8 cents per share, during the previous year.

La-Z-Boy shares rose 2.2% Tuesday to close at $6.84. Shares are down 13.7% year to date.

Visit AOL Money & Finance for more earnings coverage.

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Closing Bell: PPI, banks, tanks

Jon Ogg — 2008-06-17T16:19:00+00:00

Filed under: Best Buy (BBY), Goldman Sachs Group (GS), Alcatel-LucentADS (ALU)

Any relief we would have been seen in financial stocks was knocked down by a solid PPI reading and by more worries about banking stocks. We also saw a report from The Federal Reserve reporting that industrial productions fell by -0.2% in May, and plants were running at the lowest capacity in almost three years at 79.4%. As you'd expect, we also saw a decline of -3.3% in new housing starts to an annual rate of 975,000, and that represented more than a 10-year low. These are the unofficial closing bell levels for major US index levels:

DJIA 12159.65 (-109.43)
S&P500 1350.90 (-9.24)
NASDAQ 2457.73 (-17.05)
10YR T-NOTE 4.225% (-0.02%)
52-WEEK LOWS
Top 10 Analyst Calls

And the best news of all may be if you believe T. Boone Pickens comment that oil speculators aren't helping the increase in oil prices.

Alcatel-Lucent (NYSE: ALU) managed to stay up all day and shares were up 4% at $7.00 after the company's $1 billion award from China last night.

Best Buy Co., Inc. (NYSE: BBY) also saw a better than expected earnings report and strong guidance for the economy, but Wall Street focused on those negative metrics we addressed. Shares were down by over 5% at $43.44 in the final minutes today.

Capstone Turbine Corporation (NYSE: CPST) continued its surge because of that understated backlog from last week. Shares were up 7% at $4.09 in the final minutes today.

Goldman Sachs Group, Inc. (NYSE: GS) saw a surge in the price of its stock at the open and pre-market after it beat earnings estimates, but shares were down by 1.25% at $179.81 in the final minutes after the weakness in the sector today.

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Apple (AAPL) rises on Best Buy (BBY) earnings

Brent Archer — 2008-06-17T13:19:00+00:00

Filed under: Earnings reports, Good news, Industry, Apple Inc (AAPL), Best Buy (BBY), Options, Technical Analysis

Apple Inc. (NASDAQ: AAPL) shares are trading higher today after Best Buy (NYSE: BBY) reported a first-quarter profit that beat analyst expectations, saying that its expansion of AAPL in-store shops boosted revenue for the quarter. If you think that Apple won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on the stock.

After hitting a one-year low of $111.62 in August, the stock hit a one-year high of $202.96 in December. Apple opened this morning at $178.10. So far today the stock has hit a low of $177.41 and a high of $181.27. As of 12:15, AAPL is trading at $180.50, up $3.66 (2.0%). The chart for AAPL looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $115 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in just four months as long as AAPL is above $115 at October expiration. Apple would have to fall by more than 36% before we would start to lose money. Learn more about this type of trade here.

AAPL hasn't been below $115 for more than a few days in the past year and has shown support around $175 recently. This trade could be risky if the company's earnings (due out in late July) disappoint, but even if that happens, this position could be protected by the support the stock might find at its 200 day moving average, which is currently around $160 and rising.

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 AAPL or BBY.

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Before the bell: Futures higher ahead of Goldman, PPI, housing data

Melly Alazraki — 2008-06-17T07:42:00+00:00

Filed under: Before the bell, Earnings reports, Market matters, Best Buy (BBY), Goldman Sachs Group (GS), Economic data, Housing, Federal Reserve

U.S. stock futures rose early Tuesday as the Street awaited earnings from Goldman Sachs that has tended to beat analyst estimates in the past. In light of the turmoil in financials, this would be a welcome treat. Also this morning, several economic reports are due about inflation, housing and industrial production. Given the Federal Reserve meeting next week, investors will keep a close watch on the inflation data.

On Monday, U.S. stocks ended mixed as investors continued to worry about the economy and watch oil carefully. Downgrades of several Dow industrials stocks such as Verizon, AT&T and GE, caused the index to finish the day 38 points, or 0.31%, lower while the S&P 500 ended up a fraction of a point, or 0.01%, and Nasdaq Composite added 20 points, or 0.83%, getting a boost from possible approval of satellite radio merger.

A busy morning full of economic readings is ahead of us:
At 8:30 a.m. EDT, May building permits and housing starts figures will be released. The recent declining trend is not expected to reverse course yet, despite some recent indication the housing market may begin to show a bottom. Both figures are estimated to drop further.
At the same time, a measure of inflation with prices at the wholesale level will be reported. May Producer Price Index is expected to rise 1%, while core PPI is expected to show an increase of 0.2% in May.
Then, at 9:15, May capacity utilization and industrial production numbers are also due out with the latter actually expected to show a slight growth in May.

These will all be material for the Federal Reserve decision next week. And while many are anticipating a rate hike, or a series of hikes starting in August, and have already priced these in, both the Wall Street Journal and the Financial Times this morning report that the Fed "mood" doesn't support a rate hike in August, and that the market has been overaggressive with its expectations of how soon and how many hikes the Fed will use to curb inflation. No doubt these reports have contributed to this morning's more bullish sentiment.

And naturally that with such high oil prices, inflation could become a global problem. In fact, U.K. inflation reached the highest since at least 1997 in May, with some officials predicting it will exceed 4% later this year and the U.K. economy will fall into a recession.

Meanwhile, oil eased some overnight and the dollar slipped against major currencies.

In corporate news, Goldman Sachs (NYSE: GS), which so far has avoided big losses from the subprime mortgage crisis and credit crunch, is due to report. But even Goldman may not be immune as it had a considerable amount of mortgage backed loans and securities, and so investors await to hear the results.
Goldman Sachs also said it is close to finalizing a plan to restructure a $7 billion SIVs.

Also due out are results from Best Buy (NYSE: BBY).

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Best Buy Q2 profits expected to slip; Circuit City expected to widen loss

Trey Thoelcke — 2008-06-16T10:31:00+00:00

Filed under: Earnings reports, Forecasts, Blockbuster Inc 'A' (BBI), Best Buy (BBY), Circuit City Stores (CC)

Though the earnings season is winding down, consumer electronics retailers Best Buy Inc. (NYSE: BBY) and Circuit City Stores Inc. (NYSE: CC) are scheduled to report second-quarter results this week. Best Buy profits are expected to be lower, while Circuit City is expected to triple its loss.

Best Buy is expected by analysts surveyed by Thomson Financial to report second-quarter earnings of 36 cents per share, down 7.7% from the same period of last year. The company has provided positive surprises in three of the past four quarters -- by 29.2% in the fourth quarter of 2007.

Based in Richfield, Minn., Best Buy is the largest consumer electronics outlet in the U.S., with about 1,300 stores in the U.S. and Canada providing appliances, gadgets, movies and music, cell phones, and technical services. In the past year, the company's revenues were $40 billion and its net income totaled $1.4 billion. Its long-term EPS growth forecast is 15.3%, which is a little better than the retail industry average. The consensus recommendation of analysts shifted from buy to to hold Best Buy during this past quarter.

The stock is down 13.2% since the beginning of the year, but down only 4.7% from a year ago. It trades at a P/E ratio of 14.65. Shares closed Friday at $45.70.

Circuit City is expected to report second-quarter loss of $1.01 per share, compared to a loss of only 33 cents per share in the year-ago period. Despite a positive surprise in the first quarter, the company has tended to miss estimates recently; the loss was more than twice what analysts estimated in the fourth quarter of 2007.

Richmond, Va.-based Circuit City sells consumer electronics in 680 stores in the U.S. and online, and recently became a buyout target of Blockbuster Inc. (NYSE: BBI). In the past year, Circuit City's revenues were $11.7 billion and its net loss totaled $320 million. The company's long-range EPS growth forecast is 10.6%, less than that of rival Best Buy. The consensus recommendation of analysts remains to hold Circuit City.

The share price is up 3.6% since the beginning of the year, but has fallen 73.9% from a year ago. Shares closed Friday at $4.35.

Best Buy is scheduled to report earnings Tuesday morning, Circuit City on Thursday morning.

For more news that could influence the results, see BloggingStocks' Best Buy coverage and Circuit City coverage.

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Earnings highlights: Lehman, UBS, Krispy Kreme, Pepsico, Pep Boys and others

Trey Thoelcke — 2008-06-14T09:10:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), PepsiCo (PEP), Krispy Kreme Doughnuts (KKD), Alcoa Inc (AA), Best Buy (BBY), Nortel Networks (NT), QUALCOMM Inc (QCOM), Texas Instruments (TXN), CMGI Inc (CMGI), Lehman Br Holdings (LEH)

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

ADC Telecommunications Inc. (NASDAQ: ADCT) beat Q2 estimates and raised its full-year guidance.
Alcoa Inc. (NYSE: AA) near-term earnings prospects led to an analyst downgrade.
Banco de Chile (NYSE: BCH) earnings prospects after an acquisition led to an analyst's upgrade.
Benihana Inc. (NASDAQ: BNHN) posted lower Q4 profits but still beat earnings estimates.
Bob Evans Farms Inc. (NASDAQ: BOBE) reported solid Q4 results due in part to cost management.
Brown-Forman Corp. (NYSE: BF.B) easily beat Q4 estimates and offered full-year guidance.
CMGI Inc. (NASDAQ: CMGI) lowered its guidance, sending shares tumbling 25%.
Coca Cola Hellenic Bottling Co. (NYSE: CCH) warned of weaker earnings due to economic conditions.
Conn's Inc. (NASDAQ: CONN) reported solid Q1 results and issued in-line guidance for the year.
Dick's Sporting Goods Inc. (NYSE: DKS) earnings prospects impress analysts despite recent guidance.
Guess? Inc. (NYSE: GES) topped Q1 expectations due to strong international expansion.
Krispy Kreme Doughnuts Inc. (NYSE: KKD) swung to a Q1 profit despite falling revenues.
Lehman Brothers Holdings Inc. (NYSE: LEH) posted a bigger-than-expected loss on further write-downs.

National Semiconductor Corp. (NYSE: NSM) beat estimates on cost efficiencies and improved product mix.
Nortel Networks Corp. (NYSE: NT) reaffirmed its revenue guidance for the full year.
Pall Corp. (NYSE: PLL) reported strong Q3 results that beat Wall Street expectations.
Pep Boys (NYSE: PBY) reported that Q1 earnings jumped due to real estate transactions.
PepsiCo Inc. (NYSE: PEP) plans to reiterate its full-year earnings guidance despite market conditions.
Qualcomm Inc. (NASDAQ: QCOM) earnings prospects for the second half of 2008 impress one adviser.
Quality Systems Inc. (NASDAQ: QSII) Q4 profits grew 32%, in line with analysts' expectations.
Shuffle Master Inc. (NASDAQ: SHFL) topped Q2 expectations, sending shares higher.
Smith & Wesson Holding Corp. (NASDAQ: SWHC) Q4 profits fell but still beat analysts' estimates.
Talbots Inc. (NYSE: TLB) reaffirmed its better-than-expected 2008 earnings guidance.
Texas Instruments Inc. (NYSE: TXN) warned that weak demand for chips could hurt Q2 results.
UBS (NYSE: UBS) warned "further write-downs may hit earnings" and some assets classes had deteriorated.

Also, Barron's likes the prospects for ethanol producers such as VeraSun Energy Corp. (NYSE: VSE). Kiplinger's includes Best Buy (NYSE: BBY) and Dick's Sporting Goods among its Father's Day stock picks. Could rancor over Vista hurt Microsoft's (NASDAQ: MSFT) bottom line?

Upcoming results to watch for include Adobe Systems (NASDAQ: ADBE), La-Z-Boy (NYSE: LZB), Best Buy (NYSE: BBY), CarMax (NYSE: KMX), Goldman Sachs (NYSE: GS), FedEx (NYSE: FDX), JM Smucker (NYSE: SJM), and Winnebago (NYSE: WGO).

Visit AOL Money & Finance for more earnings coverage.

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Market highlights for next week: Lehman Brothers and Morgan Stanley reporting earnings

Eric Buscemi — 2008-06-13T18:05:00+00:00

Filed under: Earnings reports, Conventions and conferences, Annual meetings, Adobe Systems (ADBE), Best Buy (BBY), Hershey Co (HSY), FedEx Corp (FDX), Morgan Stanley (MS), Lehman Br Holdings (LEH)

Monday, June 16

Lehman Brothers Holdings Inc. (NYSE: LEH) reporting Q2 earnings; conference call at 10:00 am.
Nvidia Corporation (NASDAQ: NVDA) to discuss new GPU products at 1:00 pm.
Lime Energy Co. (NASDAQ: LIME) to discuss acquisition of Applied Energy Management at 4:00 pm.
Adobe Systems Inc. (NASDAQ: ADBE) reporting Q2 earnings; conference call at 5:00 pm.

Tuesday, June 17

La-Z-Boy Inc. (NYSE: LZB) to report Q4 earnings; conference call at 8:30 am.
The Hershey Company (NYSE: HSY) to hold business update conference call at 8:30 am.
Best Buy Inc. (NYSE: BBY) to report Q1 earnings; conference call at 10:00 am.

Wednesday, June 18

FedEx Corporation (NYSE: FDX) to report Q4 earnings; conference call at 8:30 am.
Morgan Stanley (NYSE: MS) to report Q2 earnings; conference call at 11:00 am.
Healthways Inc. (NASDAQ: HWAY) to report Q3 earnings; conference call at 5:00 pm.

Thursday, June 19

PDUFA date for Eurand's (NASDAQ: EURX) Zentase.
PDUFA date for GlaxoSmithKline's (NYSE: GSK) Promacta.
The J.M. Smucker Company (NYSE: SJM) to report Q4 earnings; conference call at 8:30 am.

Friday, June 20

PDUFA date for Millenium Pharmaceuticals' (NASDAQ: MLNM) Velcade for treating front-line multiple myeloma.
Winnebago (NYSE: WGO) to report Q3 earnings; conference call at 10:00 am.

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Conn's, Inc. (CONN): Shares advance through trading channel

Larry Schutts — 2008-06-13T12:32:00+00:00

Filed under: Earnings reports, Wal-Mart (WMT), Best Buy (BBY), Technical Analysis, Stocks to Buy

Conn's, Inc. (NASDAQ: CONN) is a specialty retailer of home appliances and consumer electronics. Offerings include refrigerators, freezers, washers, dryers, dishwashers, digital cameras, DVD players, video game equipment, televisions and home theater products. The company also carries home office equipment, lawn and garden equipment, mattresses, and furniture. Conn's operates through a website and about 70 stores in Texas, Oklahoma, and Louisiana. Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT) are competitors.

The firm pleased investors last week, when it reported solid Q1 results and issued in-line guidance for FY09 earnings. The news kept CONN shares cycling through a positive 11-week trading channel.

The price is currently consolidating at the base of that channel, where oversold CCI, Stochastic and MACD technical parameters suggest the potential for a rise back toward the top.

Brokers recommend the issue with two "strong buys", one "buy" and four "holds". Analysts see a 13% average annual growth rate, through the next five years. The CONN P/E ratio (9.77), PEG ratio (0.77), Price to Sales ratio (0.45), Price to Book ratio (1.20), Price to Cash Flow ratio (7.06), Return on Assets (10.27%) and Return on Investment (13.26%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, the stock has traded between $11.50 and $32.19. A stop-loss of $14.25 looks good here. Note that Nasdaq May short interest data showed that about 55% of the stock's float was sold short, a contrarian indicator of the potential for upside.

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.

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5 stocks dad will love, water the new oil? & retirement home bargain cities - Today in Money 6/13

Allan Halprin — 2008-06-13T09:12:00+00:00

Filed under: Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Exxon Mobil (XOM), McDonald's (MCD), Diageo plc (DEO), Money and Finance Today, Best Buy (BBY), US Airways Group (LCC), AMR Corp (AMR), UAL Corp (UAUA), Burger King Hldgs (BKC)

In the News:

· Inflation Jumps at Highest Level in 6 Months as Consumer Prices Rise on Soaring Energy Costs

· Yahoo Ends Microsoft Talks, Hires Google

· Exxon Mobil to Exit Retail Gas Business, Selling Stations to Distributors

· U.S. Foreclosures Soar 48% in May

· US Airways Cuts Fleet, 1,700 Jobs

· Like American, United & US Airways Added Fees for Checked Luggage

· Tomatoes Back at Burger King, Not McDonald's

5 Stocks Dad Will Love
Forget ties. For Father's Day this year give him something of real value -- shares of some great companies that make products men love. They include O'Reilly Automotive, The Stanley Works, Diageo, Dick's Sporting Goods and Best Buy.
5 Stocks Dad Will Love - Kiplinger.com

Is Water the New Oil?
By 2030 nearly half of the world's population will inhabit areas with severe water stress. In the coming decades, as growing numbers of people live in urban areas and climate change makes some regions much more prone to drought, water -- or what many are calling "blue gold" --will become an increasingly scarce resource. Billionaire T. Boone Pickens thinks water is the new oil -- and he's betting $100 million that he's right. If he's right, T. Boone Pickens is a modern-day John D. Rockefeller. Pickens owns more water than any other individual in the U.S. and is looking to control even more.
There Will Be Water - BusinessWeek

Dream Retirement Home Bargain Cities
The housing downturn's upside? You don't have to go overseas anymore for your dream retirement home. Here are the six best markets for deals. They include Miami, Las Vegas, Phoenix, San Diego, Tampa and Denver.
6 real estate bargains - FORTUNE
Also: Housing Prices Will Get Worst in Hard Hit Cities

'Please, I Need Money. Can You Help Me?'
In these tough times, friends may need financial assistance. When should you say yes and when should you walk away?
What to do when you're asked for financial help - Bankrate.com

One Family: In Search of a Simpler Life
Five years ago, Kathy & Josh Gunns ditched the corporate world for the family farm. They love their new life, but did it simplify their finances? Not by a long shot.
One family: In search of a simpler life - Money Magazine

World's Most Powerful Tween Stars
These tween stars earned the most money - and the most buzz - over the last year. Topping the list is 'Hannah Montana' herself Miley Cyrus followed by 'Harry Potter' Daniel Radcliffe, the Jonas Brothers, Zac Efron and Ashley Tisdale.
The World's Most Powerful Tween Stars - Forbes.com

World's Most Powerful Actors
According to Forbes' Johnny Depp is the most powerful actor in the world today. He tops Brad Pitt, Will Smith, Jerry Seinfeld and Bruce Willis.
In Pictures: The World's Most Powerful Actors - Forbes.com

World's Most Powerful Actresses
According to Forbes' Angelina Joie is the most powerful actress in the world today. She tops Cameron Diaz, Jennifer Aniston, Keira Knightly and Jennifer Lopez.
In Pictures: The World's Most Powerful Actresses - Forbes.com

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Kiplinger suggests five stocks for Father's Day

Eliza Popescu — 2008-06-11T16:44:00+00:00

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.

Diageo (NYSE: DEO) is a spirits maker that benefits from strong sales in Latin America and Asia. Analysts expects to see an annual earnings increase of about 10% for the company's sales.
Dick's Sporting Goods (NYSE: DKS) disappointed analysts when it recently reported its same-store sales. Taking into account the current weak market conditions, the retailer also warned earnings would likely come in between $1.22 and $1.36 a share for the year ending January '09, compared with its previous forecast of $1.49 to $1.54 a share. However, the company is still considered as one of the best-managed retailer, and analysts estimate a significant earnings growth rate over the next five years.
Best Buy (NYSE: BBY) is enjoying good times even amid tough market conditions that has other retailers worry that consumers may continue to cut back on their spending. The company is maintaining its dominance in the market by launching new products and services that capture people's attention such as Geek Squad or Best Buy Mobile.

As Kiplinger advises us, picking up one of these stocks could bring a happy Father's Day.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Why Best Buy (BBY) continues to be successful

Brian White — 2008-06-11T15:57:00+00:00

Filed under: Consumer experience, Competitive strategy, Best Buy (BBY)

I've been known to harp on consumer retailer Best Buy, Inc. (NYSE: BBY) from time to time here. The retailer just gets it in most cases -- from the consumer experience to merchandising decisions to customer service. While fellow retailer Circuit city Stores, Inc. (NYSE: CC) completely doesn't get it and is in horrid shape, Best Buy just keep steaming along, economic recession be damned. Here's a reason why: its store managers are actually encouraged to go "off script" and change merchandising displays on the fly to fit the area where the store is located.

This example about a normal Houston-areas Best Buy location is a perfect example. Houston, being the large port city that it is, was seeing a huge amount of Eastern European shoppers. As a result, it moved iPods and international power converters to the front of the store (from the rear) and saw sales spike on these items -- among other things -- by 67%. In most cases, changing merchandising displays -- called planograms -- are a huge no-no in corporate retailers. The thinking is that the "secret sauce" that works at one store should be simply duplicated at every store. Big-box retailers like Wal-Mart Stores, Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT) follow this strategy religiously.

Expecting store managers to take risks in terms of merchandising decisions is the kind of thing that makes good retailers great. Contrary to what some national retailers preach and practice, the customer needs vary widely from state to state and market to market in most cases throughout the U.S. Why not have a planogram for every unique store that responds better to the surrounding population and give the local consumer the best and most profitable experience? Looks like Best Buy even made the experience personal for shoppers from halfway around the world. That kind of thinking is why the retailer continues to be successful.

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Vinyl records making a surprise return

Richard Driver — 2008-06-09T18:24:00+00:00

Filed under: Products and services, Consumer experience, Amazon.com (AMZN), Marketing and advertising, Best Buy (BBY)

The Associated Press reported Monday that vinyl records have made a surprising return in some markets in the last year. A story about an employee at the Fred Meyer retail chain mistakingly ordering the vinyl edition of an album instead of the special edition CD with a DVD illustrates the impressive jump LP sales made between 2006 and 2007, rising more than 36% while CD sales dropped 17% due to increased digital downloads (CD sales remain hundreds of millions of copies higher though). The article also indicates that regional and specialized chains are not the only outlets selling LPs successfully, with both Amazon.com, Inc. (NASDAQ: AMZN) and Best Buy Co, Inc. (NYSE: BBY) creating sections and testing sales.

The resurgence in LP sales has also stoked the raging debate about differences between analog and digital formats. Melinda Merrill, a spokeswoman for Fred Meyer told the AP "It's not just a nostalgia thing, the response from customers has just been that they like it, they feel like it has a better sound." The AP also reports that sound is not a central factor in increasing sales. The experience of listening to an LP, much more involved than a CD or a digital file is drawing new listeners and keeping old ones. This tendency has lent to more sales of players and the pressing business has been renewed.

In the end, increased LP sales make it clear that consumers care about more than the music that is produced. Jay Millar, a director of marketing at United Record Pressing indicates that he feels vinyl is "for the die-hard music consumer," or the consumer that isn't looking for the most convenient method of acquiring an album and its music. Unfortunately, the mainstream music industry and its consumers will continue the push away from LPs and CDs, but if regional or independent retailers can keep the limited pressings intact via strong and surprising sales, then the history of the music industry and the "original" format that is as close to live music as you can get will continue to live.

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