San Francisco Fed Reserve Bank President Yellen to speak about the U.S. economic outlook at the University of California/San Diego with a Q&A session.
Aracruz Cellulose (NYSE: ARA) to report Q2 earnings; conference call at 11:00am.
Tuesday, July 8
Richmond Fed Reserve Bank President Lacker to speak about U.S. economic outlook to the National Economists Club in Washington with a Q&A session expected.
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.
When Wal-Mart Stores, Inc. (NYSE: WMT) releases a new line of jeans next month from Levi Strauss, the eyes of the apparel industry will be tightly fixed on the world's largest retailer. The new denim jeans, which will be from the "Totally Slimming" line of Strauss's "Signature" line of jeans made specially for Wal-Mart, will promise to be comfortable yet produce a tummy-tightening fit for you ladies out there.
Now, these type of jeans have been available from department stores for a premium price for a while now. They're designed to automatically change that figure (no lipo required) while not feeling like a 19th-century corset. Wal-Mart's contribution to the process will, of course, be it's sub-$20 pricetag. Expect these jeans to fly off the shelves, literally. Even in the face of an economic downturn in the U.S., Wal-Mart has plodded along just fine. Products like these -- with prices like these -- will only reinforce the retailer's staying power in uncertain times
Levi's new product is designed to hold in thighs and lift the butt, among other things. As usual in full-service discounters, you can buy all the ice cream and potato chips that will bulk up the cellulite, then find the clothing solution to hide that nastiness right in the next aisle. Wal-Mart's new Totally Slimming product was tested by Wal-Mart women shoppers last November and proved a large success. For $20 a pair, these will draw even more women into Wal-Mart stores. If the retailer is smart, it'll build a large ad campaign around this product.
A Minnesota state judge has ruled that Wal-Mart (NYSE: WMT) violated state laws involving rest breaks and wage-related issues two million times and could face $2 billion in damages. The judge is threatening to impose a fine of $1,000 for each offense. He also ruled that the company pay current and former employees $6.5 million in compensation for contractual violations.
The second phase of the trial will begin on October 20 when a jury will decide on damages. Wal-Mart says it disagrees with portions of the decision and may appeal.
Judge Robert R. King Jr. said that Wal-Mart's audits revealed that the company was aware of the problems but "put its head in the sand" and chose to do nothing. This is just the latest chapter in Wal-Mart's one step forward, two steps back effort to change its public image.
Regardless of where you stand on Wal-Mart (I am ambivalent), this decision is good news. It shows that the legal system is working and will hold the company responsible when it breaks the law. Two billion dollars in damages is a lot of of money, even for Wal-Mart, and it may inspire the company to be more vigilant in making sure that its labor practices comply with the law.
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
If you like to save money on gas and live near a Wal-Mart in the Southeast and Midwest, chances are you are filling up these days at stations operated by Murphy Oil Corp. (NYSE: MUR), which is headquartered in the small town of El Dorado, Arkansas.
Those Murphy USA gas stations, located in parking lots of Wal-Mart Stores (NYSE: WMT), are just a small part of Murphy's many energy-related businesses. Murphy Oil is a giant, publicly-traded oil and natural gas exploration and production company with operations as far afield as Malaysia and Ecuador. Much of its U.S. drilling and refining is done off the shores of Louisiana, and some of that equipment was damaged during Hurricane Katrina. Sales in 2007 were more than $18 billion and the stock is up 60% in the past year. The company was recently ranked No. 134 in the Fortune 500 (to put that in perspective, Google is ranked 150 and Nike 153).
Corporate headquarters to all this (as well as a timber company that was spun off from Murphy in 1996), is El Dorado, population of 20,000. A boom town in the 1920s when oil was discovered, El Dorado has a colorful history and currently boasts summertime reenactments of a Wild West style gun fight on the courthouse steps, as well as a historic "haunted" theater. The town participated in the federal "Mainstreet" program, which provides grants for restoring historic downtowns, suggesting that the downtown was once in rough shape, but has since been prettied up.
Wal-Mart Stores, Inc. (NYSE: WMT) said yesterday that it would be changing the logo at its U.S. locations by this fall. The current logo, which is simply the company's name with red lines above and below it, has been in use since 1992.
Wal-Mart continues to integrate the slogan "Save Money. Live Better" into everything it does. That saying is the retailer's current tagline, and even the announcement of the logo change mentions this: "This logo update is simply a reflection of the refreshed image of our stores and our renewed sense of purpose of helping people save money so they can live better." If that isn't a pre-scripted message from the corporate underbelly, I don't know what is.
It appears that the hyphen will be going away in the company's name-based logo. The hyphen was replaced a long time ago by the star anyway, so it's a moot point. According to rumors reported by the WSJ, the new logo will show the retailer's name in white letters on an orange background, followed by a small starburst. I guess orange is less confrontational than blue? Anyway, the image makeover of the retailer's logo comes at a good time. Sometimes breaking the mold and starting over can implant a new image in the mind of the consumer, and if all that is required is a logo change (and the millions of changes on signage it will require), so be it.
Kroger (NYSE: KR) is one of the nation's largest retail grocery chains. It operates nearly 2,500 supermarkets and multi-department stores in 31 states, under such local banners as Kroger, Ralphs, Fred Meyer, Fry's, Dillons, QFC and City Market. The firm also operates about 778 convenience stores, 392 fine jewelry stores, 723 supermarket fuel centers and 41 food processing plants. Despite diversification moves, Kroger food stores still account for about 85 percent of sales. Wal-Mart (NYSE: WMT) and Safeway (NYSE: SWY) are major competitors.
The firm pleased investors last week, when it reported fiscal Q1 EPS of 58 cents and revenues of $23.11 billion. Analysts had been expecting 55 cents and $22.32 billion. The EPS figure was a company record. Management also offered in-line guidance for FY09 earnings and said that about $643.6 million remained under the $1 billion stock repurchase program announced in January.
Get Ready for Cuts in Government Services State and local governments were flush with tax revenue during the five-year housing boom. They pulled from bulging pools of property, income, and sales tax to expand education, law enforcement, health care, and infrastructure programs without needing to burden residents and corporations with tax hikes. Those days are over. As the economy stalls, state and local governments will see less tax revenue roll in and you will likely see for cuts in services. Among the states with the worst shortfalls are Arizona, Florida, Rhode Island, Nevada and Georgia. The Next Victim of the Real Estate Crisis- BusinessWeek Also: States With Worst Tax Shortfalls
Where Bad Credit Hurts the Most Most people understand that low credit scores will translate into higher mortgage and credit card interest rates. But few realize there are plenty of other insidious ways that low scores can add to a person's costs. Bad credit can also negatively effect your job, utilities, cell phone, elective medical procedures and your marriage. Bad credit hurts in many ways - Bankrate.com
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.
This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.
With over 4,000 stores in the United States ranging from warehouse-concept Sam's Club to discount retail stores to supercenters, Wal-Mart (NYSE: WMT) is by far the largest retailer in the U.S. -- and the world. So where does Wal-Mart go from here? International expansion has become the true growth engine for Wal-Mart as it dots the landscapes of other nations. The company has embarked on a series of initiatives these past 15 months to spruce up the stores, install better lighting and offer a more competitive brand of consumer goods. Recent same-store sales have validated these improvements.
Wal-Mart has been the beneficiary of a more cost-conscious consumer in this economic slowdown. Yet it can only squeeze so much growth out of its existing locations. And if it opens more stores, it risks cannibalizing the revenues of its existing stores.
Enter Fred's (NASDAQ: FRED). This quiet, regional concept has been around since 1947. Fred's is headquartered in Memphis, Tennessee, and has its base in 15 Southeastern states. Fred's has 659 discount stores and 280 pharmacies in its system -- with room to grow. Fred's has 24 franchisees, which is a quicker way to expand the concept while not draining the corporate coffers.
Fred's offers a full range of apparel, food, sporting goods and other general merchandise in its system. The company's philosophy is: quality merchandise at a discount price. The stores are well lit, organized and make for a pleasant shopping experience.
Welcome to the 66th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.
This week, I'll be examining Wal-Mart Stores Inc. (NYSE: WMT) and the reputation the world's largest retailer has. Wal-Mart's roots from the backyard of a small Arkansas town into the world's largest company in less then five decades is nothing short of amazing -- like it or not.
But, with such rapid growth, how has the company's reputation fared during this journey? Harris Interactive's latest "Reputations of the Most Visible Companies" (PDF download) sheds a little light on this area. Although Wal-Mart is currently experiencing a decent period of sales and profit (due to customers flocking to low prices), the company still has a tarnished image in much of the world. Is it deserved? You be that judge.
Bed Bath & Beyond (NASDAQ: BBBY) reported Q1 earnings on Wednesday, and Trey Thoelcke highlighted the numbers in this earnings-recap piece. Shares rose substantially in the after-hours trading session yesterday, jumping over 8%, and as I reviewed various earnings reports last night, I found myself drawn to the retailer's stock performance. I haven't been a huge fan of Bed Bath & Beyond as of late, so I figured I should take a look at the earnings release to see if there's anything here that would change my opinion.
Unfortunately, there isn't. Sales may have grown 6%, and expectations may have been beaten by $0.03, but net income still dropped over 20% to $0.30 per diluted share. Cash flow from operations declined 44% to $65.8 million. And same-store sales were very anemic, rising only 0.8%.
I choose, in this case, to focus on those figures. I also consider the fact that Bed Bath & Beyond does not pay a dividend, and that we are in an awful economic environment, both from a consumer and stock-market standpoint. This is not the stock I'd want to face the recession with, and I don't necessarily find it to be a big value right now. When it comes to retail, I am more likely to look at Wal-Mart (NYSE: WMT) and Target (NYSE: TGT). I'd even consider a Home Depot (NYSE: HD) or a Lowe's (NYSE: LOW). All of these stocks pay dividends and have better brand equities and more attractive prospects. Bed Bath & Beyond certainly didn't deliver an earnings bomb, but I'm still not inclined to put money here.
Disclosure: I don't own any company mentioned; positions can change at any time.
This is the part of a new series of columns called "The Naked Truth," by retirement expert Dan Solin. Please bring him your questions, in the comments box, and he will answer as many as he can.
Wal-Mart (NYSE: WMT) is the world's largest company with over $380 billion in revenues.It's success is based on it ability to squeeze vendors to the breaking point. The largest manufacturers are no match for this retail giant.
Wal-Mart's 401(k) plan has over $9.5 billion in assets. Its modestly paid employees count on this plan to fund their retirement.
A recent class action lawsuit makes allegations which, if true, will cause many of these employees to be great disappointed.
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.
Walgreen (NYSE: WAG) reported sluggish Q3 numbers last week. Net sales increased a little under 10% to $15 billion. Net income increased a whopping two pennies to 58 cents per diluted share (the term "whopping" is used here sarcastically). According to this article, Walgreen met top-line expectations but missed the bottom-line call by a penny.
Gross margin remained relatively stable, but the net margin dropped to 3.8% in the quarter compared to 4.1% in the previous year's similar period. But same-store sales increased 3.4%, which is a decent number. Also, operational cash flow jumped over 19% to $2.5 billion. That's excellent; it's always good to see cash coming in. It helps mitigate the tepid earnings expansion. Walgreen did well with its cash-flow statement last time around as well. Walgreen management cited the economy as a factor in its earnings stats and highlighted the fact that it cut back on expenses, including advertising. Making sure costs don't get out of hand is important, but I'd be careful about eliminating too much of the advertising budget. Competing with CVS Caremark (NYSE: CVS), Rite-Aid (NYSE: RAD), and the pharmacy at Wal-Mart (NYSE: WMT) obligates brand-building and differentiation.
Walgreen's Q3 wasn't beyond awesome, but it was solid enough. The stock is only down slightly as I write this. As a long-term play on the need for drugstores, it's not a bad way to go.
Disclosure: I don't own any company mentioned; positions can change at any time.
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Welcome to the 66th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.
This is the part of a new series of columns called "The Naked Truth," by retirement expert Dan Solin. Please bring him your questions, in the comments box, and he will answer as many as he can.
Walgreen
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
Starbucks: The next McDonald's
