Search results for Anthony Mirhaydari
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Posted
Jan 16 2009, 08:15 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Tired of fighting activist investors, merger offers, and creditors, Circuit City (CCTYQ) can no longer avoid the inevitable.
The second-largest electronics retailer will be liquidated after it failed to attract a buyer. All 567 U.S. stores will be closed. Roughly 30,000 workers will be laid off. Shareholders will be wiped out.
According to reports from the WSJ, three potential bidders were interested in the beleaguered retailer and continued bidding for the company's future at its New York law firm late into the night on Thursday.
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Posted
Nov 17 2008, 01:51 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
General Motors, Ford, and Chrysler are at the epicenter of intense maneuvering in Washington D.C. as those taking a tough stand for free-market principles lock horns with pragmatists worried about massive layoffs in the rustbelt.
Political reality will lead to some form of assistance given the popularity of Keynesian fiscal stimuli these days and the amount of pressure being applied by industry. Unfortunately, people like to assume that once Detroit retools its factories and stocks its showrooms with the fuel efficient cars and car-based SUVs of the future, happy days will return. They won't.
As I wrote last summer, we simply have too many vehicles to sustain the Big 3's current production capacity. The United States now has 981 cars for every 1,000 people of driving age compared to 613 in the United Kingdom and just 24 in China. As a result, no amount of government aid will stop
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Posted
Jul 24 2008, 10:07 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Rising food and energy prices are forcing McDonald's to take aim at its popular Dollar Menu. "In this current environment, we've got to make sure we're pricing smart, not just pricing low," COO Ralph Alvarez said as the chain reported better-than-expected quarterly results.
For hurried moms, nocturnal teens, lunch-run dads, and anyone who appreciated the food-inflation hedge of one dollar double cheeseburgers, the news comes as a super-sized disappointment.
Investors should be worried too.
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Posted
Aug 21 2009, 05:11 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
The march of good news continues for housing. Existing home sales jumped 7.2% between June and July -- the largest increase in over a decade and the fastest pace in nearly two years -- according to the National Association of Realtors (NAR). Prices are down 15% compared to last year.
A combination of cheap distressed properties, seasonal trends, low interest rates, and tax credits for first-time buyers is working its magic. But a number of issues have me worried that instead of an end to this epic housing nightmare -- we are about to enter a new stage.
Bing: More on home prices
The first problem is that the current buying trends are by no means normal with a large percentage of sales focused on foreclosures, short-sales, or other forced transactions rooted in financial distress.
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Posted
Feb 25 2009, 11:02 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Rising concern over increased regulation from the Obama White House has gun buffs stocking up on the latest tactical rifles and pistols. This helps the fortunes of gun makers Smith & Wesson (SWHC) and Ruger (RGR) as well as specialty retailer Cabela's (CAB), which specializes in firearms and hunting gear.
Ruger reported Tuesday that gun sales increased 81% in the fourth quarter on new products and "robust firearms demand." Its order backlog now stands at $48 million. Smith & Wesson plans to double revenue within the next three years and reported increased sales from "speculation on the outcome of the presidential election." Cabela's reported that same-store sales rose 2.2% over the holiday election season -- a time of great distress for other retailers.
With that kind of performance, it's not surprising investors are
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Posted
Apr 07 2009, 09:48 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
General Motors (GM) is making "intense" and "earnest" preparations for bankruptcy, which is now seen as the best option, according to a source familiar with the company's plans. The company is operating under a June deadline from the U.S. Treasury to reduce debt and slash costs as part of its $13.4 billion loan and request for an additional $16.6 billion.
It appears the plan to split the company in two is gaining momentum. Known as a "363 sale" because of the relevant section of the Chapter 11 bankruptcy code, this would see GM divided into one company containing healthy brands like Chevrolet and Cadillac and another holding troubled units like Saturn.
Officially, GM continues to work toward an out-of-court restructuring, which is something Ford (F) has been making great progress on. The catalyst for the apparent change of heart is the ongoing difficultly new chief executive Fritz Henderson and his counterparts at Chrysler are having negotiating with bondholders and the labor union. Creditors are holding out for better terms, secure in the belief that a sympathetic Obama administration won't allow a bankruptcy judge to
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Posted
Jul 21 2008, 01:41 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
It's not just health-conscious diners who should be concerned about restaurants like Cheesecake Factory, Red Robin Gourmet Burgers, P.F. Chang's China Bistro, and Texas Roadhouse.
With food and fuel inflation at critical levels, investors should be worried about the health of the entire casual dining sector, including companies like Darden Restaurants and Brinker International, operators of Olive Garden, Red Lobster, and Chili's.
All must contend with rising food prices, especially for meats, seafood, and dairy products at a time people are drastically reducing discretionary driving and rediscovering the joys of eating in.
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Posted
Jul 09 2009, 11:27 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Although Wall Street's focus has turned to other matters, the housing crisis continues to smolder and burn like an abandoned campfire ready to reignite. Heck, the banks are even restarting the mortgage repackaging business -- once again turning questionable loans into "investment grade" securities.
But just as we look the other way, the next phase of the housing crisis is about to begin according to new analysis by hedge fund owner and value-investing guru Whitney Tilson. Since home prices peaked in 2006, the Case-Shiller Home Price Index has fallen 34%. This, of course, was driven by a huge spike in defaults and delinquencies among subprime borrowers as interest rates and payments reset.
In a recent update to his housing overview from last December, Tilson says the next phase will be driven by prime and Alt-A borrowers who owe more than their house is now worth. The catalyst will be ongoing job loss, falling wages, and rising interest rates. Add to this a huge wave of Alt-A loan resets over the next five years. The result: Home prices will fall another 10%, possibly more.
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Posted
Jul 29 2008, 05:04 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Confirming a trend we discussed last week, the corporate parent of Bennigan's and Steak & Ale restaurants filed for Chapter 7 bankruptcy protection as consumers continue to shy away from dining establishments in favor of home-cooked meals.
The closures affect only 0.5% of the U.S. bar-and-grill sector -- but they're a warning of tough times ahead for the $43 billion casual dining industry.
The rapid plunge into oblivion shocked patron Donna Wimes, who noted that "the food was good; they always seemed to generate a crowd." Others are reminiscing about Bennigan's deep-fried mozzarella sticks, while also noting that locations "looked full" anytime they passed by
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Posted
Apr 22 2009, 12:14 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
In the hamburger wars, McDonald's (MCD) is just crushing archrival Burger King (BKC). Since the market's March 9 closing low, shares of the Golden Arches are up 4.6% versus the 14.8% decline seen at the Home of the Whopper.
Although both have benefited from the trade down out of casual restaurants like Red Robin (RRGB) as consumers cut spending, Burger King is struggling to capitalize on the opportunity. I warned of these troubles in a post back in September.
Just look at the sales picture. On Wednesday, McDonald's reported solid first-quarter results with earnings of 83 cents per share and a 4.3% increase in same-store sales. Burger King, on the other hand, saw an "unanticipated" drop in traffic last month and has been consistently trailing its rival in same-store sales growth.
What's wrong with Burger King; and what's McDonald's doing right?
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