Browse by Tags
-
Posted
Jan 14 2008, 11:16 AM
by
Robert Walberg
Rating:
Money Blog: Top Stocks Blog - MSN Money
The "softer side of Sears" no longer refers to its apparel merchandise, but to its sales and earnings history.
Citing difficult economic conditions and growing competition, the company warned that fourth-quarter sales and earnings would fall well shy of Wall Street estimates. Management now expects quarterly earnings of between $2.59 to $3.48 per share, a whopping 20% to 40% below the Street's consensus estimate. The stock responded by falling to its lowest level in three years.
It's a bit surprising to me that so many investors were surprised by the company's dismal quarter -- especially given that Sears issued an even bigger warning last quarter. The company has also had a history of underperforming expectations over the past several years. Let's face it, the Lampert experiment has been a total bust. You can prop up numbers only so long by cutting costs and repurchasing shares -- at some point you have to improve the core business and Lampert, chairman and architect of the merger with Kmart, never had the retailing experience necessary to get the job done.
The idea of merging two struggling retailers in hopes of creating a thriving one was doomed from the start -- especially since management was more concerned with pleasing Wall Street analysts than store customers. The folks on Wall Street might not be the brightest bunch in the world, but even they are beginning to realize that Lampert's financial razzle dazzle hasn't done anything to make Sears or Kmart more relevant to shoppers.
Read More...
-
Posted
Feb 12 2008, 06:53 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Firestone. American Motors. Texaco. Pan Am. Worldcom. These large American companies were once at the top of their industries. Pan Am was the leading global airline for decades. All are gone: Some were sold off, others went bankrupt. Who could have predicted it?
There are several iconic U.S. companies that may well not exist at the end of 2008. Some may not even make it halfway through the year. Not all will go out of business. Some may simply be auctioned off in pieces. Others may be bought. These companies will not exist in their current forms as they are known to their shareholders and consumers now.
When a company ceases to exist as an independent entity, it is not necessarily bad for shareholders. Some may be worth more in parts. Often a bust-up or merger is what brings owners the most money. Here are the big ones that probably won't make it. (A more detailed assessment is available at 24/7 Wall St.)
Read More...
-
Posted
Jun 23 2008, 05:41 AM
by
Douglas McIntyre
Rating:
Filed under: Citigroup, Sprint, Wal-Mart, Intel, AMD, AT&T, Starbucks, Target, Sears, IBM, Costco, Sun Microsystems
Money Blog: Top Stocks Blog - MSN Money
With the trading year almost half over and results from the first quarter out, 24/7 Wall Street has created the latest installment of its Ten Worst Managed Companies In America list. This is a companion piece to the "CEO of the Year" list and "Large Companies that May Disappear" series.
This analysis is based on: 1) one-year and five-year stock performance relative to the major indexes and other companies in the industry, 2) the company's position in its industry both now and over the last five years, 3) whether management made identifiable and critical decisions which hurt the company, 4) a change in the company's relative market strength compared to its competition, and 5) whether the company could have identified mistakes and changed course quickly enough to avoid a catastrophe.
Some readers will think it is not fair to include companies which have had a recent
Read More...
-
Posted
Aug 22 2008, 08:01 PM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
Fed Chairman Bernanke confirmed what everyone's been thinking about the markets, saying the "crisis is softening growth, raising joblessness, and the Fed’s job is one of the most challenging in memory".
He believes that the recent trend of the dollar will likely slow inflation but that U.S. growth would fall short of potential for a time, which will help curb inflation. That sounds like the Fed believes that companies will have their work cut out for them.
The market seemed to like what he said. But what can we expect to see from companies reporting in the coming week?
Read More...
-
Posted
Oct 06 2008, 06:34 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Santa will be thinner this year, a sign that he cannot afford all that rich food. It is a good thing that he wears a beard because can't afford a razor.
By most estimates, this will be the worst holiday shopping season since 1991. That is optimistic. The better benchmark is probably the deep recession of 1973.
Some retailers may not have access to the credit needed to keep items in inventory. It won't matter much to them if shoppers show up or not. They won't have anything to sell.
Read More...
-
Posted
Oct 22 2008, 01:51 PM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Joe Six-Pack, the presidential campaign’s prototypically average American -- the one that Sarah Palin so desperately wants to affiliate with -- isn’t doing so well. His income can’t keep up with the cost of gas, food and health care. His retirement account has tanked in the stock market crashes. His wallet is shrinking, and as a result, one of his favorite sports -- NASCAR -- is feeling the pinch.
NASCAR’s television ratings in the US are second only to those of professional football. Its fans -- who might be the most loyal of any sport, with the possible exception of European soccer -- spend more than $3 billion on official products annually. But a mountain of financial problems has kept fans away this year. Even loyalty has a price.
Still more troubling is that the sport’s sponsors include a number of the financial, automotive, and consumer goods companies hardest-hit by the economic downturn. General Motors, Chrysler, Sears and Chevron will cut or drop sponsorships next season. Dario Franchitti, the 2007 Indianapolis 500 winner, switched to NASCAR this year - but was forced out of the series because of a lack of sponsors.
Read More...
-
Posted
Nov 05 2008, 10:03 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
President-Elect Barack Obama has a little over two months to prepare for the hardest job in the world.
With the election now behind us, Obama must start shaping the policies he's vowed to fight for. According to Bloomberg, he's not likely to waste much time reveling in his victory. The financial crisis is already being referred to in the past tense, but to keep it that way Obama will need to ensure swift implementation of the programs and initiatives the market is already pricing into its economic outlook.
In the near term, the $700 billion bailout will be integral to Obama's efforts to right our financial ship. Recent initiatives from Bank of America and JPMorgan to step up loan modification efforts will likely be supplemented by
Read More...
-
Posted
Dec 01 2008, 12:30 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
So far this season, we have seen a mixed bag of earnings. Earnings are light this week but several important economic indicators are coming out over the next few days.
While earnings and market news are both important, economic data is considered a general measure of our system's financial stability. Though many of these indicators are lagging, since they look back at the previous month, they can provide us a with good indication of where our economy may be heading.
Typically these numbers are issued monthly and the market will usually only react to substantial deviations from expectations. In fact, if investors have already priced in a disappointing outcome, the market may be muted following the data release. Here's what is coming out this week and what to expect
Read More...
-
Posted
Dec 31 2008, 06:43 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Goodbye, malls. Paltry sales at retailers have finally taken a toll on the buildings that house them, and many economists are predicting serious trouble ahead for mall owners.
According to an article on CNBC.com, “the dismal holiday shopping season… could take down some US malls struggling with vacancies, softening rents and their own large debt loads.”
Some mall staples, like KB Toys and Circuit City, have already filed for bankruptcy. The International Council of Shopping Centers estimates national chains closed approximately 6,100 stores in 2008, and fourth-quarter mall vacancy rates could top 7%, the highest since regional mall performance was first measured.
Moreover, anchor stores like Sears or Macy's, critical to a mall’s well-being, are suffering badly.
Read More...
-
Posted
Mar 31 2009, 04:17 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Toyota’s (TM) share of the U.S. light vehicle market is 18% and Honda’s (HMC) is 10%. General Motors (GM) claims about 22%. Fifty-five years ago, the No. 1 U.S. car company had 54% of the market. By this time next year, GM’s piece of the American car pie could drop another 50%, bringing it closer to Honda’s.
It seems improbable that GM could lose that many customers so fast. But Rick Wagoner, the recently departed chief executive of the company, told Congress in December that people won’t buy cars from a bankrupt company. Some at the hearings figured Wagoner was bluffing, trying to convince Washington that a Chapter 11 filing would end the firm’s ability to market products because customers could turn to cars made by competitors in reasonably good financial shape.
But most research done recently indicates that Wagoner was probably right, at least right enough that GM’s sales could be clobbered by consumers who believe that their warranties will be worthless and that their dealers will disappear.
Read More...
More Posts Next page »
|
