24/7 Wall St. » STZ

24/7 Wall St. Closing Bell (GOOG, CMA, AIG, DE, PNRA, ANGO, HWD, PSMT, STZ, LEDS, WDFC, PLCM, ALTH, WOLF, NDAQ, RT)

Paul Ausick — Thu, 05 Apr 2012 20:09:11 +0000

Markets opened lower this morning and there was no news sufficient to unleash significant buying. The report on new claims for unemployment benefits came in about as expected (our coverage here), and investors are waiting for tomorrow’s official unemployment report, which is expected to be flat at 8.3%. The US dollar index rose today, now up 0.38% at 80.080. Commodities were mostly higher, with lumber and wool posting the largest gains. WTI crude oil closed up 1.8% at $103.31/barrel, and Brent crude trades up 0.90% at $123.44/barrel. Gold settled up 1% today, at $1,630.10/ounce.

The unofficial closing bells put the DJIA down more than 14 points to 13,060.14 (-0.11%), the NASDAQ rose more than 12 points (0.40%) to 3,080.50, and the S&P 500 fell -0.06% or less than 1 point to 1,398.08.

There were several analyst upgrades and downgrades today, including Google Inc. (NASDAQ: GOOG) reiterated as ‘buy’ with a target price of $730 at Argus; Comerica Inc. (NYSE: CMA) cut to ‘sell’ at Citigroup; American International Group Inc. (NYSE: AIG) reiterated as ‘buy’ with a price target of $40 at BofA/ML; Deere & Co. (NYSE: DE) reiterated as ‘buy’ with a price target of $104 at BofA/ML; and Panera Bread Co. (NASDAQ: PNRA) started as ‘outperform’ with a $190 target price at Credit Suisse.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: AngioDynamics Inc. (NASDAQ: ANGO) is down -3.6% at $11.82 after posting a new 52-week low of $11.73 earlier today; Harry Winston Diamond Corp. (NYSE: HWD) is down -3.9% at $13.89; PriceSmart Inc. (NASDAQ: PSMT) is down -4.7% at $74.41; Constellation Brands Inc. (NYSE: STZ) is down -11.8% at $21.78; Pier One Imports Inc. (NYSE: PIR) is up 3.1% at $18.83 (more coverage here); Carmax Inc. (NYSE: KMX) is down -4.5% at $33.34; and SemiLEDS Corp. (NASDAQ: LEDS) is down -9.9% at $3.56 (more coverage here). After markets close today we get earnings from WD-40 Co. (NASDAQ: WDFC).

Next week marks the start of a brand new earnings season. See our preview here.

Other standouts from today include the following stocks:

Polycom Inc. (NASDAQ: PLCM) is down more than -20% at $14.51 after posting a new 52-week low of $14.41 earlier today. The videoconferencing/enterprise phone maker cut its first quarter outlook today. More coverage here.

Allos Therapeutics Inc.(NASDAQ: ALTH) is up nearly 27% at $1.82. The drug maker is being acquired. More coverage here.

Great Wolf Resorts Inc. (NASDAQ: WOLF) is up 15.8%% at $6.60 after posting a new 52-week high of $6.65 earlier today. The company could be the prize in a bidding war between two private equity firms. More coverage here.

Nasdaq OMX Group Inc. (NASDAQ: NDAQ) is up 1.2% at $25.53. The company gets the stock listing for Facebook. More coverage here.

Ruby Tuesday Inc. (NYSE: RT) is down -18.2% at $7.27. The restaurant operator missed earnings expectations this morning.

Stay tuned for Friday. US markets are closed for Good Friday, but we have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Non-farm payroll and unemployment rate
3:00 p.m. – Consumer credit

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AIG, ALTH, ANGO, CMA, DE, GOOG, HWD, LEDS, NDAQ, PLCM, PNRA, PSMT, RT, STZ, WDFC, WOLF

24/7 Wall St. Closing Bell (IBM, MCD, LUV, SNDK, BX, TISI, MIND, MON, AYI, ANGO, PSMT, STZ, PIR, LEDS, CBLI, THTI, CLNT)

Paul Ausick — Wed, 04 Apr 2012 20:08:06 +0000

Markets opened lower this morning and didn’t recover. The ISM services index came in lower than expected (our coverage here) and the EIA report on crude oil inventories pushed crude prices down (our coverage here). The markets haven’t recovered from yesterday’s release of the minutes of the FOMC meeting, which most observers saw as fairly hawkish (our coverage here). The US dollar index rose today, now up 0.37% at 79.776. Commodities were mixed on the stronger dollar, with corn and wheat down the most. WTI crude oil closed down -2.4% at $101.47/barrel, and Brent crude trades down -1.87% at $122.52/barrel. Gold settled down -3.5% today, at $1,614.10/ounce, its lowest price in three months.

The unofficial closing bells put the DJIA down nearly 125 points to 13,074.83(-0.95%), the NASDAQ fell more than 45 points (-1.46%) to 3,068.09, and the S&P 500 fell -1.02% or more than 14 points to 1,398.96.

There were several analyst upgrades and downgrades today, including IBM Corp. (NYSE: IBM) cut to ‘neutral’ at BofA/ML; McDonald’s Corp. (NYSE: MCD) removed from the ‘Conviction Buy List’ but maintained as ‘buy’ at Goldman Sachs; Southwest Airlines Corp. (NYSE: LUV) raised to ‘overweight’ at Barclays; Sandisk Corp. (NASDAQ: SNDK) cut to ‘outperform’ at RBC; and Blackstone Group LP (NYSE: BX) added to ‘Top Pick’ list at Citigroup.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Team Inc. (NYSE: TISI) is down -12.3% at $28.83; Mitcham Industries Inc. (NASDAQ: MIND) is down -3.9% at $23.37; Monsanto Co. (NYSE: MON) is down -1.3% at $80.70 (more coverage here); and Acuity Brands Inc. (NYSE: AYI) is down -9.7% at $57.51. After markets close today we get earnings from AngioDynamics Inc. (NASDAQ: ANGO), Harry Winston Diamond Corp. (NYSE: HWD), and PriceSmart Inc. (NASDAQ: PSMT). Before markets open tomorrow we’ll get earnings from Constellation Brands Inc. (NYSE: STZ), Pier One Imports Inc. (NYSE: PIR), and SemiLEDS Corp. (NASDAQ: LEDS).

Other standouts from today include the following stocks:

Cleveland BioLabs Inc. (NASDAQ: CBLI) is down more than -30% at $1.67 after posting a new 52-week low of $1.48. The biotech company’s funding from the federal government has been cut off.

Sandisk Corp. is down about -11% at $44.72. The flash memory maker revealed a weak outlook for the quarter. More coverage here.

THT Heat Transfer Technology Inc. (NASDAQ: THTI) is up nearly 80% at $2.30. The Chinese maker of heat exchangers reported decent earnings, but forecast revenues for the current quarter at half last quarter’s total. See our coverage yesterday of SmartHeat Inc. (NASDAQ: HEAT), another Chinese maker of heat exchangers. Just substitute the names.

CleanTech Solutions International Inc. (NASDAQ: CLNT) is up more than 177% at $6.10. The Chinese maker of metal components for wind turbines reported solid revenues last week, but profits were down. Another hard-to-figure move.

Stay tuned for Thursday. St. Louis Fed President James Bullard is giving a speech. We have also noted the following events on the schedule (all times Eastern):

7:30 a.m. – Challenger Gray & Christmas layoff report
8:30 a.m. – New claims for unemployment benefits
10:30 a.m. – EIA weekly natural gas storage report
3:00 p.m. – Treasury STRIPS
4:30 p.m. – Federal Reserve balance sheet and money supply

Paul Ausick

Filed under: Market Close Tagged: ANGO, AYI, BX, CBLI, CLNT, IBM, LEDS, LUV, MCD, MIND, MON, PIR, PSMT, SNDK, STZ, THTI, TISI

24/7 Wall St. Closing Bell (BRCM, NFLX, NOK, GOOG, VMW, STZ, MON, WOR, HELE, DNDN, ACOM, ZUMZ, OSH, BKS, AEO)

Paul Ausick — Thu, 05 Jan 2012 21:05:34 +0000

US markets opened lower today and finally managed modest gains by mid-afternoon. News from Europe on the reluctance of banks to lend, coupled with an higher-than-expected yield on a French bond issue were not outweighed by encouraging employment news in the US. The ISM services index came in lower than expected, and mid-morning reports on US energy inventories sent natural gas and WTI crude oil prices lower. WTI crude is down about -1.4% at $101.73/barrel and Brent crude is down about -1% at $112.65/barrel. Gold is up more than 0.5% at $1,621.80.

The unofficial closing bells put the DJIA down nearly 3 points to 12,415.70 (-0.02%), the NASDAQ rose more than 21 points (0.81%) to 2,669.86, and the S&P 500 rose 0.29% or nearly 4 points to 1,281.05.

There were several analyst upgrades and downgrades today, including Broadcom Corp. (NASDAQ: BRCM) maintained ‘buy’ with a $46 target price at Argus; Netflix Inc. (NASDAQ: NFLX) maintained ‘underperform’ and estimates cut at Needham; Nokia Corp. (NYSE: NOK) raised to ‘outperform’ at Credit Suisse; Google Inc. (NASDAQ: GOOG) cut to ‘hold’ at Benchmark; and VMWare Inc. (NYSE: VMW) started as ‘buy’ at Sterne Agee.

Earnings reports of note since markets closed yesterday include: Constellation Brands Inc. (NYSE: STZ) is down about -3.5% at $19.72; Monsanto Co. (NYSE: MON) is up more than 5.5% at $76.70; Worthington Industries Inc. (NYSE: WOR) is down -0.6% at $17.55; and Helen of Troy Ltd. (NASDAQ: HELE) is up more than 4% at $32.73.

Other standouts from today include the following stocks:

Dendreon Corp. (NASDAQ: DNDN) is up nearly 40% at $10.61. The biotech company reported a sales jump of 25% for its prostate cancer drug. The company is one of our top biotech picks for 2012.

Ancestry.com, Inc. (NASDAQ: ACOM) is up more than 21% at $27.69. The internet genealogy provider reported a 22% rise in subscribers and forecast sales growth for 2012 of more than 14%.

Zumiez Inc. (NASDAQ: ZUMZ) is up nearly 17% at $30.74 after posting a new 52-week high earlier of $30.94. The sports apparel company reported a 10% same-store sales gain and raised guidance this morning. See our coverage here.

Orchard Supply Hardware Stores (NYSE: OSH) is down nearly -25% at $16.70. The home improvement store held its IPO on Monday and today provided a weak outlook for 2012.

Barnes & Noble Inc. (NYSE: BKS) is down more than -17% at $11.25. The bookstore chain said today that it is considering spinning off its Nook e-reader unit as a strategic option. Our coverage is available here.

American Eagle Outfitters Inc. (NYSE: AEO) is down more than -10% at $13.61. The clothing retailer slashed its fourth-quarter profit guidance by nearly a quarter.

Stay tuned for Friday. Federal Reserve Governors Elizabeth Duke and Sarah Bloom Raskin are speaking, as are Boston Fed President Eric Rosengren and New York Fed President William Dudley. Here are the noteworthy events on the schedule (all times Eastern):

8:30 a.m. – Employment reports, including non-farm payrolls
3:00 p.m. – US Treasury STRIPS

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ACOM, AEO, BKS, BRCM, DNDN, GOOG, HELE, MON, NFLX, NOK, OSH, STZ, VMW, WOR, ZUMZ

24/7 Wall St. Closing Bell (F, GM, TM, EMC, GD, GMCR, POT, TIVO, UNF, PRGS, STZ, MON, FDO, LCAV, REE, NFLX, APKT, LPHI)

Paul Ausick — Wed, 04 Jan 2012 21:04:24 +0000

Markets opened lower today and stayed in negative territory until mid-afternoon. Car makers reported December sales throughout the day, with Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) both showing gains in the morning. Toyota Motor Co. (NYSE: TM) posted lower sales in the afternoon. Developments in Europe did nothing to boost shares today, with a new rights issue coming from Italy’s UniCredit and a requirement for additional reserves against bad loans coming in Spain. Crude oil gained on word that Europe is nearing a decision to stop crude imports from Iran, possibly sparking a confrontation in the Persian Gulf. WTI crude is up 0.25% at $103.22/barrel and Brent crude is up 1.34% at 113.63/barrel. Gold is up about 0.8% at $1,613.20.

The unofficial closing bells put the DJIA up about 21 points to 12,418.57 (0.17%), the NASDAQ fell less than 1 point (-0.01%) to 2,648.36, and the S&P 500 rose 0.02% or less than 1 point to 1,277.31.

There were several analyst upgrades and downgrades today, including EMC Corp. (NYSE: EMC) added to ‘US Focus List’ at Credit Suisse; General Dynamics Corp. (NYSE: GD) raised to ‘overweight’ at JPMorgan; Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reiterated ‘buy’ with $94 target price at Canaccord Genuity; Potash Corp. of Saskatchewan Inc. (NYSE: POT) started as ‘underperform’ at National Bank; and Tivo Inc. (NASDAQ: TIVO) raised to ‘overweight’ at Evercore Partners.

Earnings reports of note since markets closed yesterday include: Unifirst Corp. (NYSE: UNF) is up more than 3% at $59.83; and Progress Software Corp. (NASDAQ: PRGS) is down more than -11% at $17.55. Tomorrow sees earnings from Constellation Brands Inc. (NYSE: STZ), Monsanto Co. (NYSE: MON), and Family Dollar Stores Inc. (NYSE: FDO) among others.

Other standouts from today include the following stocks:

LCA-Vision Inc. (NASDAQ: LCAV) is up more than 40% at $4.33. The laser vision correction system provider said that it performed more than 14,000 procedures in the fourth quarter, up 30% year-over-year.

Rare Element Resources Ltd. (AMEX: REE) is up more than 27% at $4.53. The rare earths miner announced that its resource at the company’s Bear Lodge project is 38% higher than previously believed.

Netflix Inc. (NASDAQ: NFLX) is up nearly 11% at $80.02. The video distributor reported that it streamed more than 2 billion hours of video in the fourth quarter. More details on this story are available here.

Acme Packet Inc. (NASDAQ: APKT) is down more than -19% at $25.65, after posting a new 52-week low of $25.20 early this morning. The networking company warned on earnings last night. We have more coverage here.

Life Partners Holdings Inc. (NASDAQ: LPHI) is down more than -15% at $5.38. The life insurance company has been accused of accounting fraud by the US Securities and Exchange Commission.

Stay tuned for Thursday. Here are the noteworthy events on the schedule (all times Eastern):

7:30 a.m. – Challenger Gray & Christmas job-cut report
8:15 a.m. – ADP employment report
8:30 a.m. – Weekly initial unemployment benefits claims report
10:00 a.m. – ISM non-manufacturing index
10:30 a.m. – EIA weekly natural gas report
11:00 a.m. – EIA weekly petroleum status report
4:30 a.m. – Federal Reserve balance sheet and money supply reports

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: APKT, EMC, F, FDO, GD, GM, GMCR, LCAV, LPHI, MON, NFLX, POT, PRGS, REE, STZ, TIVO, TM, UNF

Top Earnings Previews for the Week Ahead (NKE, AM, FDO, GIS, KBH, MON, APOL, STZ, DRI, MKC, SCHN)

Administrator — Fri, 24 Jun 2011 19:48:12 +0000

We have several key companies reporting earnings this coming week. While most will not be DJIA-moving stocks, there can have a large sector impact or can be volatile around earnings. Nike Inc. (NYSE: NKE) reports on Monday; on Wednesday we have reports from American Greetings Corporation (NYSE: AM), Family Dollar Stores Inc. (NYSE: FDO), General Mills Inc. (NYSE: GIS), KB Home (NYSE: KBH), and Monsanto Co. (NYSE: MON). On Thursday comes reports from Apollo Group Inc. (NASDAQ: APOL), Constellation Brands Inc. (NYSE: STZ), Darden Restaurants Inc. (NYSE: DRI), Mccormick & Co Inc. (NYSE: MKC), and Schnitzer Steel Industries Inc. (NASDAQ: SCHN).

We have provided an earnings preview on each, shown pricing data, and added color if applicable.

Nike Inc. (NYSE: NKE) reports on Monday. Thomson Reuters estimates for the sporting goods and apparel giant are $1.16 EPS and $5.54 billion in revenues; next quarter estimates are $1.27 EPS and $5.67 billion in revenues. With shares around $81.40, its 52-week trading range is $66.34 to $92.49. This one has recovered a bit after getting hit on its last earnings report when shares fell to $77 from $85 before the report.

Wednesday…

American Greetings Corporation (NYSE: AM) is due with its gift and greeting card earnings. Thomson Reuters estimates are $0.78 EPS and next quarter estimates are $0.27 EPS. With shares around $23.62, its 52-week trading range is $17.89 to $24.75. Why do we all accept paying so much for greeting cards?

Family Dollar Stores Inc. (NYSE: FDO) is due to report on Wednesday. Thomson Reuters estimates are $0.95 EPS and $2.17 billion in revenues; next quarter estimates are $0.65 EPS and $2.12 billion in revenues. With shares around $52.25, its 52-week trading range is $35.31 to $56.92. After the buyout interest was there and with sector consolidation being well documented, we’ll be paying close attention to ‘non-earnings news.’

General Mills Inc. (NYSE: GIS) will show us more about how the food business is going. Thomson Reuters estimates are $0.52 EPS and $3.68 billion in revenues; next quarter estimates are $0.69 EPS and $3.7 billion in revenues. With shares around $37.00, its 52-week trading range is $33.11 to $40.00.

KB Home (NYSE: KBH) is due with its homebuilder earnings. Thomson Reuters estimates are -$0.32 EPS and $257.05 million in revenues; next quarter estimates are -$0.05 EPS and $384.54 million in revenues. With shares around $11.75, its 52-week trading range is $9.43 to $16.11.

Monsanto Co. (NYSE: MON) will be key to watch as it has been in a turnaround mode. Thomson Reuters estimates are $1.11 EPS and $3.38 billion in revenues; next quarter estimates are -$0.18 EPS and $2.05 billion in revenues. With shares around $66.00, its 52-week trading range is $44.61 to $76.69.

Thursday…

Apollo Group Inc. (NASDAQ: APOL) is going to turn in its online university earnings, and we’ll get to see how much the pressure added when these were under the Washington scrutiny. Thomson Reuters estimates are $1.34 EPS and $1.2 billion in revenues; next quarter estimates are $0.92 EPS and $1.09 billion in revenues. With shares around $42.00, its 52-week trading range is $33.75 to $53.61.

Constellation Brands Inc. (NYSE: STZ) is due and Thomson Reuters estimates are $0.38 EPS and $648.48 million in revenues; next quarter estimates are $0.59 EPS and $715.92 million in revenues. With shares around $20.83, its 52-week trading range is $14.97 to $23.19.

Darden Restaurants Inc. (NYSE: DRI): Thomson Reuters estimates are $1.00 EPS and $1.99 billion in revenues; next quarter estimates are $0.92 EPS and $1.92 billion in revenues. With shares around $48.52, its 52-week trading range is $37.08 to $52.12. This is one which we think can eventually challenge McDonald’s for the high dividends.

McCormick & Co Inc. (NYSE: MKC) will show the food and spices earnings. Thomson Reuters estimates are $0.54 EPS and $855.16 million in revenues; next quarter estimates are $0.70 EPS and $858.17 million in revenues. With shares around $50.00, its 52-week trading range is $37.37 to $50.68.

Schnitzer Steel Industries Inc. (NASDAQ: SCHN) is historically not a sector moving stock but right now it seems that investors want guidance of any bit from any company. Thomson Reuters estimates are $1.19 EPS and $831.16 million in revenues; next quarter estimates are $1.25 EPS and $841.31 million in revenues. With shares around $53.05, its 52-week trading range is $37.00 to $69.43.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Calendar, Earnings, The Week Tagged: AM, APOL, DRI, FDO, GIS, KBH, MKC, MON, NKE, SCHN, STZ

Top Analyst Upgrades and Downgrades (AXP, ATML, CLWR, STZ, CTCM, EXPE, FICO, INTC, MRVL, PCS, MSFT, NVDA, PT, USM)

Administrator — Fri, 05 Nov 2010 12:10:08 +0000

These are some of this Friday’s key analyst upgrades, downgrades, and initiations seen in Wall Street research calls.

American Express Co. (NYSE: AXP) Raised to Buy at Argus.
Atmel Corporation (NASDAQ: ATML) Raised to Strong Buy from Buy at Needham.
Clearwire Corporation (NASDAQ: CLWR) Cut to Sector Perform at RBC.
Constellation Brands Inc. (NYSE: STZ) Started as Neutral at Credit Suisse.
CTC Media (NASDAQ: CTCM) Cut to Hold at Citigroup.
Expedia Inc. (NASDAQ: EXPE) Raised to Buy at S&P Equity Research (late Thursday call).
Fair Isaac Corp. (NYSE: FICO) Raised to Hold at S&P Equity Research.
Intel Corporation (NASDAQ: INTC) Raised to Buy at Roth Capital.
Marvell Technology Group Ltd. (NASDAQ: MRVL) Raised to Buy at Roth Capital.
MetroPCS Communications, Inc. (NYSE: PCS) Raised to Outperform at Oppenheimer; Credit Suisse issued Short-Term Buy and Raised target to $13 from $11.
Microsoft Corporation (NASDAQ: MSFT) Reiterated Outperform and $36 target at Credit Suisse.
NVIDIA Corporation (NASDAQ: NVDA) Raised to Buy at Roth Capital.
Portugal Telecom SGPS SA (NYSE: PT) Cut to Underperform at BNP Paribas.
U.S. Cellular Corp. (NYSE: USM) Cut to Sell at S&P Equity Research/

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: ATML, AXP, CLWR, CTCM, EXPE, FICO, INTC, MRVL, MSFT, NVDA, PCS, PT, STZ, USM

PROP 19 Fails; Cigs, Beer, Booze Win (MO, BUD, BF-B, STZ, DEO, TAP)

Administrator — Wed, 03 Nov 2010 13:39:09 +0000

Pot is still not going to be legal in California for recreational use. PROP 19 failed to win enough votes on a low voter turnout and California will not have to worry about whether the taxes will offset the expense of policing open use. As you might guess, there is a silver lining here as no legalized marijuana is now no longer a threat to beer, wine, booze, and even tobacco. Without assuming that this means that the hemp trade will go away, this is sort of a win for companies to the tune of Altria Group Inc. (NYSE: MO), Anheuser-Busch InBev (NYSE: BUD), Brown-Forman Corporation (NYSE: BF-B), Constellation Brands Inc. (NYSE: STZ), Diageo plc (NYSE: DEO), Molson Coors Brewing Company (NYSE: TAP), and others.

Altria Group Inc. (NYSE: MO) is hard to really reference in a direct comparison because many pot smokers are not cigarette smokers. The company does own an interest in SAB/Miller. Shares are indicated up around $25.65 after closing at $25.57 yesterday. Keep in mind that Altria shares are at multi-year highs.

Anheuser-Busch InBev (NYSE: BUD) is now global, so one market might not have mattered anyway. Shares are down 2.6% at $61.82.

Brown-Forman Corporation (NYSE: BF-B) is indicated flat after a $61.22 close and its market cap is nearly $9 billion. Some of its brands are Jack Daniel’s, Southern Comfort, Herradura, Finlandia, Jekel Vineyards, Gentleman Jack, Korbel California Champagnes, Michel Picard Wines, New Mix Ready-to-Drinks brands, and many more.

Constellation Brands Inc. (NYSE: STZ) is indicated flat after a $19.52 close and its market cap is roughly $4.1 billion. Brands are Mondavi, Franciscan and others for wine; it imports imports, markets, and sells Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, St. Pauli Girl, and Tsingtao for beer; and Svedka, Black Velvet, and others in spirits.

Diageo plc (NYSE: DEO) is also an ADR and its market cap is north of $46 billion, although its shares are up 1% at $75.36. Its brands are Crown Royal, Seagrams, Johnnie Walker, Smirnoff, Baileys Irish Cream, Captain Morgan, Jose Cuervo, Tanqueray, Guinness, and more.

Molson Coors Brewing Company (NYSE: TAP) reported earnings of more than $256 million; shares are up 2.2% at $48.25 this morning.

The interesting issue here is that the news of a failure to pass revolves more around a low voter turnout from the young and those who would have been for PROP 19. The Economist recently showed a chart with damage by sins in the United Kingdom, and alcohol was shown to be far damaging in a United Kingdom study conducted by The Lancet:

JON C. OGG

Filed under: Consumer Goods, Entertainment, Food, Law, Politics, Tax Tagged: BF-B, BUD, DEO, MO, STZ, TAP

Next Week’s Must See Earnings (YUM, STZ, COST, MON, MAR, PEP, AA, MU)

Administrator — Fri, 01 Oct 2010 17:29:11 +0000

Next week will mark the unofficial start of earnings season. While it will take another week or two for earnings to get into full swing, there are many key companies with earnings that can move sectors here. Some of the influential companies reporting earnings are Yum! Brands, Inc. (NYSE: YUM), Constellation Brands (NYSE: STZ), Costco Wholesale Corporation (NASDAQ: COST), Monsanto Company (NYSE: MON), Marriott International Inc. (NYSE: MAR), PepsiCo, Inc. (NYSE: PEP), Alcoa Inc. (NYSE: AA), and Micron Technology Inc. (NASDAQ: MU) are all on deck for earnings. We have compiled Thomson Reuters data and added in other color if and where applicable.

Tuesday, October 05

YUM! Brands (NYSE: YUM) reports Tuesday morning. Thomson Reuters estimates today are $0.72 EPS and $2.87 billion in revenues; next quarter estimates are $0.59 EPS and $3.48 billion in revenues. While we’ll be watching McDonald’s on this report, the company stock often acts on its own and it has more tied to China with KFC on top of issues with same store sales trends in America. Shares are at $46.38 and the 52-week range is $32.49 to $46.91.

Wednesday October 6

Constellation Brands (NYSE: STZ) reports Wednesday before the open and Thomson Reuters estimates today are $0.49 EPS and $855 million in revenues; next quarter estimates are $0.62 EPS and $993.55 million in revenues. At $17.72, the 52-week range is $14.60 to $18.87.

Costco Wholesale Corporation (NASDAQ: COST) reports Wednesday morning. Thomson Reuters estimates today are $0.95 EPS and $24.23 billion in revenues; next quarter estimates are $0.67 EPS and $18.47 billion in revenues. At $65.00, the 52-week range is $53.41 to $65.22. Traders will look at BJ’s on this and then at the much larger Wal-Mart after that.

Monsanto Company (NYSE: MON) is due with earnings Wednesday and Thomson Reuters estimates are -$0.06 EPS and $1.82 billion in revenues; next quarter estimates are $0.04 EPS and $1.81 billion in revenues. AT $48.05, the 52-week trading range is $44.61 to $87.06. Monsanto’s crop issues with corn will come front and center and the pre-earnings juice does not show much love exists.

Marriott International Inc. (NYSE: MAR) is also on deck Wednesday with Thomson Reuters estimates today are $0.22 EPS and $2.65 billion in revenues; next quarter estimates are $0.36 EPS and $3.62 billion in revenues. Shares are at $36.13 and the 52-week trading range is $24.47 to $38.15.

Thursday, October 07

PepsiCo, Inc. (NYSE: PEP) reports Thursday morning. Thomson Reuters estimates are $1.22 EPS and $15.36 billion in revenues; next quarter estimates are $1.08 EPS and $17.77 billion in revenues. Shares are at $66.68 and the 52-week range is $58.27 to $67.61. Coca-Cola will be the focus stock for any secondary reaction, obviously.

Alcoa Inc. (NYSE: AA) reports on Thursday after the close and this is the first DJIA component with earnings formally scheduled. Traders and investors may again try to tie it the earnings season trend, although as always it is up for debate as to just how the tie really works. Thomson Reuters estimates are $0.06 EPS and $4.95 billion in revenues; next quarter estimates are $0.14 EPS and $5.30 billion in revenues. At $12.25, the 52-week trading range is $9.81 to $17.60 and keep in mind that shares are up about 20% over the last 3 month period.

Micron Technology Inc. (NASDAQ: MU) is due Thursday after the close. Thomson Reuters estimates for the DRAm giant are $0.40 EPS and $2.67 billion in revenues; next quarter estimates are $0.41 EPS and $2.75 billion in revenues. At $7.27, the 52-week trading range is $6.12 to $11.40. Micron did not recoup all of its losses at all and Q3 was a down quarter for the stock.

JON C. OGG

Filed under: Calendar, Earnings Tagged: AA, COST, MAR, MON, MU, PEP, STZ, YUM

Top Analyst Upgrades and Downgrades (AEO, BMY, CAGC, CEO, STZ, FO, HL, MHS, WFR, SQNM, X, WAG)

Administrator — Fri, 11 Jun 2010 12:32:43 +0000

These are some of this Friday’s top analyst calls with upgrades, downgrades, and initiations seen in Wall Street research notes:

American Eagle Outfitters, Inc. (NYSE: AEO) Raised to Buy at Jefferies.
Bristol-Myers Squibb Company (NYSE: BMY) Raised to Buy at Citigroup.
China Agritech Inc. (NASDAQ: CAGC) Started as Buy at Brean Murray.
CNOOC Ltd. (NYSE: CEO) Removed from Goldman Sachs Conviction Buy List.
Constellation Brands Inc. (NYSE: STZ) Started as Buy at Citigroup.
Fortune Brands Inc. (NYSE: FO) Started as Sell at Citigroup.
Hecla Mining Co. (NYSE: HL) Started as Buy at Jefferies.
Medco Health Inc. (NYSE: MHS) Raised to Buy at Goldman Sachs.
MEMC Electronic Materials Inc. (NYSE: WFR) Cut to Sell at Hapoalim.
Sequenom Inc. (NASDAQ: SQNM) Raised to Buy at Auriga.
United States Steel Corp. (NYSE: X) Raised to Neutral from Sell at UBS.
Walgreen Co. (NYSE: WAG) Cut to Market Weight at Thomas Weisel.

JON C. OGG

Filed under: Analyst Calls Tagged: AEO, BMY, CAGC, CEO, FO, HL, MHS, SQNM, STZ, WAG, WFR, X

Gabelli’s New Focus Five Picks (HSNI, MJN, AMTD, TIVO, WFT, CVC, KOF, STZ, MA, ESI)

Administrator — Mon, 03 May 2010 16:01:42 +0000

GAMCO Investors, Inc. (NYSE: GBL) is the parent of Gabelli & Company and is run by the very well known investment manager Mario Gabelli. This morning came the release of Gabelli’s new FOCUS FIVE stocks for the May 3 to July 30 period. These picks are HSN Inc. (NASDAQ: HSNI), Mead Johnson Nutrition Company (NYSE: MJN), TD AMERITRADE Holding Corporation (NASDAQ: AMTD), TiVo Inc. (NASDAQ: TIVO), and Weatherford International Ltd. (NYSE: WFT). The details for each and the return of the portfolio is listed below.

Gabelli said that for the period ending April 30, the Focus Five outperformed the S&P 500, and is now +184.47% since inception (Jan. 31, 2006) vs. -2.18% for the S&P.

HSN Inc. (NASDAQ: HSNI) is listed as Strong Comps + Takeout… “The second-largest multichannel commerce network in the US had 2009 sales of $2.8 billion with EBITDA of $194 million. We believe multichannel retail is in the early stages of renewed secular sales growth, and that HSN’s experienced management team should be able to improve EBITDA margins substantially.Focus on the Liberty Media standstill agreement, which limits its ownership to 32% and expires in August 2010. We believe there are strategic advantages in a combination of HSNI and QVC. At ~7x 2011P EBITDA $257 million, we view shares as attractive based on current market dynamics and the potential for improved profitability and multiple expansion.”

Mead Johnson Nutrition Company (NYSE: MJN) is listed as Strong EM Growth… “The pediatric nutrition market category is expected to increase from $23 billion to over $30 billion by 2014. MJN has leading share in the U.S. as well as many emerging markets, and currently operates in 139 cities in China. Focus on MJN’s growth in emerging markets, most notably China, which grew by 25% in Q409. We continue to view MJN as an attractive target for strategic acquirers who are looking to increase their exposure to fast-growing, healthy product categories.

TD AMERITRADE Holding Corporation (NASDAQ: AMTD) is listed as Financial Leverage… “As a leader in the online brokerage industry, AMTD is well positioned to participate from industry growth and consolidation. AMTD has increased client assets at a 7% annual rate, including $62 billion in net new assets. As a holder of a large float of customer assets ($52.3 billion in spread-based balances), we believe the first 100 bps change in the Fed Funds rate could improve annual earnings by about $0.28/shr.”

TiVo Inc. (NASDAQ: TIVO) is listed as En Banc = Endgame… “We believe TIVO’s intellectual property to pause / rewind / play live TV makes them a likely takeover target to a variety of potential acquirers, including technology companies Cisco, Microsoft or Apple and distributors such as DISH or DTV. TIVO trades at a significant discount to our 2011 PMV of $22 based on DISH and other operators entering contracts of $1.50+ per sub per month creating high margin recurring revenue. We expect DISH’s en banc review to be rejected.”

Weatherford International Ltd. (NYSE: WFT) is listed as Performance Back on Track… “A unique global footprint positions WFT to capitalize on growing exploration and production in key markets such as Russia and Iraq. Weatherford’s expanded product offering in the $13B directional drilling services market provides revenue growth opportunities and makes it an attractive acquisition target for a larger energy services company. Focus on sequential quarterly earnings improvement as WFT is more levered to a recovery in international oil directed drilling activity and a restoration of institutional investor confidence following renewed quarterly guidance. WFT trades at a compelling valuation 16.5x 2011 EPS of $1.10, 8x EBITDA, and a discount to our PMV of $22.”

Those removed from the FOCUS FIVE list are Cablevision Systems (NYSE: CVC), Coca-Cola FEMSA (NYSE: KOF), Constellation Brands (NYSE: STZ), Mastercard, Inc. (NYSE: MA) and ITT Educational Services (NYSE: ESI).

JON C. OGG

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Filed under: Analyst Calls, Turnarounds, Value Investing Tagged: AMTD, CVC, ESI, HSNI, KOF, MA, MJN, STZ, TIVO, WFT