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Posted
Mar 13 2009, 10:39 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Retail giant Wal-Mart (WMT) will open its first Hispanic-focused supermarkets this summer in Arizona and Texas. The stores will feature Spanish speaking staff and new layouts, products, and signage that will be "relevant to local Hispanic customers."
The stores, dubbed Supermercado de Walmart, will appear in converted Wal-Mart Neighborhood Market stores in Phoenix and Houston. Separately, the company also plans on converting a Sam's Club warehouse into a Hispanic-themed Más Club.
Some of this reflects Wal-Mart's U.S. stores chief Eduardo Castro-Wright's previous experience in the company's Mexican subsidiary. But it also reflects the realization that by 2042, according to the Census Bureau, ethnic and racial minorities will represent a majority of the U.S. population. So instead of apple pies and hamburger buns; get ready for Latino pastries and tortillas.
Now that the sales boost from penny-pinching consumers is peaking, it's nice to see the company ramping up capital investment plans in search of new sources of growth. Prior to the recession,
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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
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 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
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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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
Jul 01 2008, 10:31 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Finally, some good news from Starbucks: the coffee-shop behemoth is closing 600 stores and cutting 12,000 jobs, roughly 7% of its global workforce.
This is a gutsy move for founder Howard Schultz, who just recently retook the helm with broad pronouncements of returning to roots and reigniting the "emotional attachment with customers" that has been lost over time. After all, Starbucks now has 16,226 locations, up from just 1,886 over the last 10 years. With operations in such faraway lands as Lebanon, Kuwait, Saudi Arabia, Indonesia, Argentina, and Romania, Starbucks' expansionist future once seemed boundless.
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Posted
Mar 31 2009, 11:11 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
On Tuesday, General Motors (GM) and Ford (F) announced they will join Hyundai in offering protection plans to attract buyers threatened by job loss.
If, say, you get laid off after splurging on a new Corvette, GM will contribute up to $500 toward your monthly payments for nine months and protect the value of your car at trade-in time. Ford will offer payments of up to $700 for a full year.
The moves comes as the auto industry suffers from the lowest sales rates in nearly three decades. Complicating matters is the continued slide in Detroit's market share as buyers become more interested in small, fuel-efficient cars at the expense of hulking trucks and SUVs. Through February, GM's sales are down 51% while Ford's are off 46%.
Will these new sales incentives -- along with 0% financing, generous discounts, rebates and the government's commitment to back GM and Chrysler warranties -- be enough to get people back into the showrooms? There is room for optimism. Here's why.
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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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