Posts for Ticker ‘UPS’

The Hardest Working Brands for 2009: The Year Of The Dog

A look at the “hardest working” major brands for 2009 shows that a number of them belong to companies which have done poorly and, in at least one case, may file Chapter 11. This is due to the definition of a hard-working brand, which is based on the ratio of its value to the market capitalization of its parent company.

CoreBrand reviewed the top 100 hardest working brands for the final quarter of 2009.  Their researchers point out that “the food industry moves to the top of the list, reflecting the economy and the general improvement of consumer staples businesses. Hershey’s (HSY), Campbell Soup (CPB), and Kellogg (K) make it into the top 5.” On the other hand “troubled industries like financial services and auto manufacturers have seen dramatic decline.”

Harley-Davidson (HOG) is in the top 10 among the hardest working brands. Before rumors of a buy-out, the motorcycle firm’s stock languished at $25, down from $42 less than two years ago. Harley’s stock trades for a low 1.2 times sales. Also near the top of the list is crippled book retailer Barnes & Noble (BKS), which trades for .3 times sales. Blockbuster (BBI) is in the top 25, with a ratio of .1x sales. The firm said in its 10-K that it is at risk for filing Chapter 11.

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Short Sellers Attack Buffett Holdings (BRK-B, BRK-A, AXP, BAC, BDX, KMX, KO, CMCSA, COP, COST, XOM, GCI, GE, GS, GSK, HD, IR, IRM, JNJ, KFT, LOW, MCO, NLC, NKE, PG, RSG, SNY, STI, TMK, TRV, USG, UNH, UPS, WMT, WPO, WFC, WLP, WSC)

Short selling is seen for many reasons, but universally traders tend to track short selling to track the biggest changes in the short interest twice each month.  Whether these are hedges, forward delivery trades, or just raw short sales, the trend is generally viewed as a bet against the overall market.  During the month of February, we saw short selling increase at both the NASDAQ and at the NYSE.  And it turns out that the short selling increased against more Berkshire Hathaway Inc. (NYSE: BRK-B, BRK-A) stocks than those short positions which were lightened up.

The total NYSE short interest rose by 3.78% to 14,002,613,200 shares versus 13,492,652,518 shares in the period ending January 29, 2010.  NASDAQ short interest was up 4.75% to 7,019,657,092 shares versus 6,701,137,021 shares ending January 29, 2010.  It turns out that the best against Warren Buffett’s core holdings were frequently far higher than these short interest averages.

  • Berkshire Hathaway Inc. (BRK-A) was 14,752 shares, up 98% from 7,452 shares;
  • Berkshire Hathaway Inc. (BRK-B) was 29,538,177 shares, up 101% from 14,698,348 shares.

The bets against Buffet’s Berkshire Hathaway were likely left over arbitrage plays or more importantly were index addition bets that the stock would drop after it was added to the S&P 500 index.  We took a look here at the few first that actually saw a decrease in the short selling.  These are Buffett stocks which saw traders making lower bets against his portfolio stocks as follows:

Buffett & Berkshire Hathaway 2010 Stock Holdings R to Z (BRK-B, BRK-A, PG, RSG, SNY, STI, TIF, TMK, TRV, USB, USG, UNH, UPS, WMT, WPO, WFC, WLP, WSC, UNP)

This is the list of Berkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) public equity holdings as of December 31, 2009…. so these are his positions going into 2010.  We have broken these into 3 groups for ease and these are the holdings listed in the group of ‘R to Z.’

  • Republic Services Inc. (NYSE: RSG) is a raised holding of 8.29 million shares after he started the position the prior quarter in his move to invest with (or behind) Bill Gates.
  • Sanofi Aventis (NYSE: SNY) more than 3.9 million shares, same as before.
  • Sun Trust Bank (NYSE: STI) is a decreased position of almost 2.4 million shares, down from 3.079 million shares a quarter ago and down from 3.2+ million two quarters ago.
  • Tiffany & Co. (NYSE: TIF) is NOT a common stock… but Buffett still holds the preferred shares and warrants.
  • Torchmark Corp. (NYSE: TMK) roughly 2.82 million, same as before.
  • Travelers Cos (NYSE: TRV) is the same as 27,336 shares, a tiny holding.
  • US Bancorp (NYSE: USB) roughly 69 million; Same as quarter before.
  • USG Corp. (NYSE: USG) 17.072 million shares, same as before.
  • United Health Group (NYSE: UNH) is a decreased holding of 1.175 million shares, down from 3.4 million shares a quarter ago and marks the third consecutive decline in holdings here.
  • United Parcel Service (NYSE: UPS) 1.429 million shares, same as before.
  • Wal-Mart Stores Inc. (NYSE: WMT) is an increased position at just over 39 million shares versus 37.8 million a quarter ago and well above the 19.9+ million shares two quarters ago.
  • Washington Post (NYSE: WPO) over 1.72 million shares, same as before.
  • Wells Fargo & Co. (NYSE: WFC) was an increased position of close to 319.5 million shares versus 313.3 million shares a quarter ago and above the 302 million two quarters ago and even above the 290+ million shares three quarters ago.
  • Wellpoint Inc. (NYSE: WLP) is a decreased position of 1.343 million shares, down from 3.394 million shares a quarter ago and down 3 quarters in a row.
  • Wesco Financial Corp. (NYSE: WSC) 5.703 million shares, same as before.

Union Pacific Corp. (NYSE: UNP) was eliminated as a holding as Buffett already had his all-in bet on America with BNSF.

BUFFETT HOLDINGS ‘A to F’

BUFFETT HOLDINGS ‘G to P’

You can join our free daily email distribution list to hear more news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, key analyst calls, and more.

JON C. OGG

Women’s Group Lauds Reverse Discrimination At Major Companies

Reverse discrimination is alive and well among large corporations which offer access to women’s businesses that results in a high volume of commerce for female-controlled firms. The Women’s Business Enterprise National Council “Top Corporations” program honors companies for “world-class programs that create level playing fields for women’s business enterprises to compete for corporate contracts.”

“Our Top Corporations are world-class leaders generating growth through partnerships with women’s business enterprises,” said Linda Denny, president and CEO of WBENC. That may be good news for women’s business enterprises, but bad news for companies that compete with them. Read More »

Brand Value And Stock Value: Soft Drinks, Candy, Soap, And Soup

Large consumer companies spend a great deal of marketing money on creating, preserving, and increasing the image of their brands. If a product has problems, the process does not always work. Toyota (NYSE:TM) has found that out the hard way.

A new study by CoreBrand sets values on  the relationships between brand equity and market cap among large American companies and the research points to two conclusions. The first is that iconic brands are critical to the stock market value of the firms that own them. Hershey (NYSE:HSY) ranked first in the CoreBrands study followed by Coca-Cola (NYSE:KO) and Campbell Soup (NYSE:CPB) have spent billions of dollars to build brands which are universally recognized. The second is that weak companies with low market caps may find that their tattered brands make up an especially large part of their fallen share prices. This is probably because their companies are worth so little. Blockbuster (NYSE:BBI) and Harley-Davidson (NYSE:HOG) fall into this category.

The list:

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Haiti Donations, Company-by-Company (MS, JPM, BAC, GS, JEF, WFC, WMT, TGT, RAD, MCD, YUM, KO, PEP, K, GIS, GOOG, DIS, CA, T, VZ, WU, MGI, UTX, UPS, ABT, AMGN, HUM)

We have compiled from press releases and from company announcements a company-by-company donation and effort pledge to help in the relief efforts after the disastrous earthquake in Haiti.  These are partial explanations of the efforts, and some lack how the funds are being donated and may lack the exact sources inside.  There are many other companies which have probably made announcements that were not seen, but here is a partial list we have compiled in groups of related companies:
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Top Analyst Upgrades and Downgrades (BIDU, BHP, CHL, CHA, GMCR, INFY, RAX, SRE, SYMC, UPS, VSAT)

These are this Wednesday morning’s top analyst upgrades, downgrades, and initiations seen in major Wall Street research calls:

Baidu, inc. (NASDAQ: BIDU) Raised to Buy at Deutsche Bank; Raised to Buy at UBS.
BHP Billiton (NYSE: BHP) Raised to Buy at Canaccord Adams.
China Mobile (NYSE: CHL) Started as Outperform at Bernstein.
China Telecom (NYSE: CHA) Started as Market Perform at Bernstein.
Green Mountain Coffee (NASDAQ: GMCR) Started as Buy at Roth Capital.
Infosys Technologies (NASDAQ: INFY) Raised to Overweight at HSBC.
Rackspace Hosting, Inc. (NYSE: RAX) Started as Outperform at Wells Fargo.
Sempra Energy (NYSE: SRE) Cut to Market Perform at Wells Fargo.
Symantec Corporation (NASDAQ: SYMC) Raised to Outperform at Wells Fargo.
United Parcel Service (NYSE: UPS) Raised to Outperform at RBC Capital and its price target was raised to $72 at Goldman Sachs.
ViaSat (NYSE: VSAT) Cut to Perform at Oppenheimer.

You are invited to join our free daily email distribution list to hear about analyst upgrades and downgrades, day trader and options trader alerts, stock and market rumors, Buffett and guru investor news, M&A and IPOs, and more.

JON C. OGG

Stocks For Buffett To Unload (BRK-A, BNI, COP, XOM, GCI, WPO, MCO, NSC, UNP, UPS, UNH, WLP, GSK, SNY, IR, STI, BAC, WFC, TMK, TRV)

We recently discussed the changes that have taken place inside Berkshire Hathaway Inc. (NYSE: BRK-A) as Warren Buffett has gone higher up the food chain.  In his more focused and more opaque approach, it also seems that after a $44 billion deal including debt to buy Burlington Northern Santa Fe Corp. (NYSE: BNI) that Berkshire Hathaway needs to further make some changes.  Buffett has been talking on and off about a whale of a deal, and that is what we got with the BNSF buyout.  Berkshire Hathaway Inc. lists 51 different subsidiary links inside the Berkshire Hathaway umbrella that are wholly owned or dominantly owned subsidiaries.  There are also more than 40 public US-listed stock holdings in there, and that is before you get into his preferred shares, convertible debt instruments, and debt for deal financing in big public companies.

We have taken a review of the Full Buffett Holdings and come up with a geared down version of his holdings here.  Some of these ‘encouraged’ sales are because of fundamental changes, and some are merely because they are too small to be a benefit even if they tripled in price.  Some are also a follow-on for action he has already taken or already hinted at.
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The Ten Most Expensive Crashes In Nascar History

24/7 Wall St. looked at a very large number of Nascar crashes to assess which were the most expensive. The crashes reviewed occurred  between 2002 and the present.

A Fox Sports analysis estimates that the cost of a single Nascar car is $125,000 for auto, engine, and labor. All of the teams carry multiple vehicles. Engine development programs run as high $3.5 million a season, although we have not prorated that into the costs of any of the crashes.

The most important hidden cost is the exposure a sponsor loses when a car is out of a race. Companies like Lowe’s (NYSE:LOW), Kellogg’s (NYSE:K), Coca-Cola (NYSE:KO), Procter & Gamble’s (NYSE:PG) Gillette division, Kraft’s (NYSE:KFT) Nabisco unit, UPS (NYSE:UPS), and Visa (NYSE:V) are unlikely to be hurt badly if a car is out of the race because they are sponsors of the all the Nascar races. Fedex (NYSE:FDX), Caterpillar (NYSE:CAT),  Best Buy (NYSE:BBY), and Aflac (NYSE:AFL) are sponsors of cars and that can cost them as much as $12 million a year. If one of their cars is off the track for a large number of laps, they lose important commercial exposure.

The high cost of Nascar crashes is one of many headaches in operating a team in the sport which may make it more difficult for GM and Chrysler which have gone through Chapter 11 bankruptcy to stay in the race business at the levels that they have in the past. A weak dollar and poor global margins may even hurt Toyota’s (NYSE:TM) participation.

Each estimate below covers that cost of the car wreck and in many cases the cost of several cars being destroyed. The cost of damage to the track and facilities has also been estimated.

The list:   Read More »

Buffett & Berkshire Hathaway Holdings P-Z Q3-2009 (BRK-A, BRK-B, PG, RSG, SNY, STI, TMK, TRV, USB, USG, UNH, UNP, UPS, WMT, WPO, WFC, WLP, WSC, WBC)

This is the list of Berkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) public US equity holdings as of September 30, 2009.  As noted in the “A to F” and “G to O” lists, there have been changes since the cut off date and those have been noted where applicable. Here are Warren Buffett’s holdings and accompanying notes for the group ‘P to Z.’

  • Procter & Gamble (NYSE: PG) 96.3 million, the same as before.
  • Republic Services Inc. (NYSE: RSG) 3.625 million shares; NEW POSITION following Bill Gates.
  • Sanofi Aventis (NYSE: SNY) more than 3.9 million shares, same as before.
  • Sun Trust Bank (NYSE: STI) 3.079 million shares; DOWN FROM 3.2+ the quarter before.
  • Torchmark Corp. (NYSE: TMK) roughly 2.82 million, same as before.
  • Travellers Cos (NYSE: TRV) 27,336; NEW POSITION but small.
  • US Bancorp (NYSE: USB) roughly 69 million; Same as quarter before.
  • USG Corp. (NYSE: USG) 17.072 million shares, same as before.
  • United Health Group (NYSE: UNH) 3.4 million shares; DOWN from 4.5 million last quarter and down from over 6 million in Q1.
  • Union Pacific Corp. (NYSE: UNP) 9.55 million shares, same as quarter before but this does not matter as Buffett is dumping his non-BNSF rail holdings.
  • United Parcel Service (NYSE: UPS) 1.429 million shares, same as before.
  • Wal-Mart Stores Inc. (NYSE: WMT) 37.8 million; WAY UP from the 19.9+ million shares last quarter.
  • Washington Post (NYSE: WPO) over 1.72 million shares, same as before.
  • Wells Fargo & Co. (NYSE: WFC) 313.3 million shares; ABOVE THE PRIOR 302+ million last quarter and above the 290+ million in Q1.
  • Wellpoint Inc. (NYSE: WLP) 3.394 million; DOWN SLIGHTLY from the 3.5 million last quarter and from the 4.7773 million in Q1.
  • Wesco Financial Corp. (NYSE: WSC) 5.7 million shares, same as before.

WABCO Holdings (NYSE: WBC) IS GONE after being 2.7 million shares last quarter.

BUFETT HOLDINGS ‘A to F’

BUFFETT HOLDINGS ‘G to O’

You can join our open email distribution list to hear more news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, key analyst calls, and more.

JON C. OGG

Media Digest 11/11/2009 Reuters, WSJ, NY Times, FT, Bloomberg

newspaperReuters:   Two Bear Stearns hedge fund managers were acquited.

Reuters:   Zucker, NBCU’s current CEO, will head the company when Comcast (NASDAQ:CMCSA) buys a majority of the company from GE (NYSE:GE).

Reuters:  Dodd’s super-bank regulator fights a uphil battle in Congress.

Reuters:   Fed officials see an uneven recovery. Read More »

Media Digest 10/28/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   The Nielsen survey shows consumer confidence up in the US for the first time since 2007.

Reuters:   Obama’s financial reforms are advancing in Congress.

Reuters:   The pay czar said his authority should not be expanded.

Reuters:   Obama’s “too big to fail” bill would curb bailouts. Read More »

The 100 Hardest Working Brands In The World

hersheyThere are a number of ways to rank brand values. One of the most important is the level at which a brand contributes to the market value of a public company.

24/7 Wall St. asked Corebrand, the brand research and consulting firm, to look at the top 100 brands based their contribution to market capitalizaton. Using this method, the hardest working brand was Hershey (NYSE:HSY), followed  by Coca-Cola (NYSE:KO) and Harley-Davidson (NYSE:HOG)

Corebrand described the process briefly to 24/7 Wall. St.

24/7 Wall St.: Corebard often refers to the brands on this list as the”hardest working brands”. How did you come to that description?

Corebrand: There are a lot of people measuring and examining the “strongest brands” or the “most valuable brands”.  Our opinion is that examining one without the other is somewhat meaningless.  How “strong” a brand is nice to know but not very relevant unless you understand how that strength benefits business.  Similarly, “value” is little more than a measure of corporate size unless you understand the drivers of that value and how to influence it. By examining the strength of the brand and it’s contribution to total market value, we can help companies and their leadership manage that strength and value over time.

24/7 Wall St.: Is there any advantage or disadvantage to having a brand value be a very large percentage of market cap in the present and as an indication of a company’s future performance?

Corebrand: The brand will need to be in balance with the rest of the company’s assets.  A company should strive to have it’s brand strong enough to fend off competitors or changing market conditions but not so strong that it becomes overly dependent on the brand as a single driver of value.  If a company can achieve and maintain its appropriate maximum strength without becoming over-dependent, it will see greater returns in bull markets and retain greater value in bear markets.

The list: Read More »

Top 10 Analyst Upgrades/Downgrades (BSX, DWA, ETFC, FSLR, LVS, MSFT, MOS, POT, UPS, UA)

These are the top 10 analyst calls for upgrades and downgrades seen early this Monday morning from Wall Street research firms:
Boston Scientific (BSX) Cut to Neutral at UBS.
DreamWorks Animation (DWA) Raised to Outperform at William Blair.
E*TRADE Financial (ETFC) Raised to Buy at Citigroup.
First Solar (FSLR) Cut to Sell at Soleil.
Las Vegas Sands (LVS) Raised to Buy at Bank of America Merrill Lynch.
Microsoft (MSFT) Raised to Buy at Auriga.
Mosaic (MOS) Cut to Hold at Citigroup.
Potash Corp. of Saskatchewan (POT) Cut to Hold at Citigroup.
UPS (UPS) Raised to Neutral at Credit Suisse.
Under Armour (UA) Raised to Neutral at Goldman Sachs.

JON C. OGG

Media Digest 9/14/2009

newspaperReuters:   Obama is trying to push Wall St. reform.

Reuters:   German aid for Opel will go in part to Russia for operations there.

Reuters:   A global poll shows support for stimulus packages.

Reuters:   J&J (JNJ) is in talks to cut its $1.5 billion Elan investment. Read More »

Transports Seeing Mixed Show on FedEx Guidance Hike (FDX, UPS, UNP, CSX, YRCW, NSC, KSU, BNI, JBHT, CNW, LSTR)

FedEx Logo PicWe just noticed over at our volume spike alert service that FedEx Corporation (NYSE: FDX) was already challenging 150% of its average volume and was triple volume what it normally has traded by this time of the morning. This was really ramping up rival United Parcel Service, Inc. (NYSE: UPS) with a 4% gain, and was taking up lesser players in the space as well.  But interestingly enough, this is not doing anything to boost the trading volume in railroad stocks. Railroad giants like Union Union Pacific Corp. (NYSE: UNP) and CSX Corp. (NYSE: CSX) are even lower on the day.  YRC Worldwide Inc. (NASDAQ: YRCW) is up significantly, and most truckers are up in sympathy.
Read More »

Top Analyst Upgrades (COF, EBAY, GS, JBLU, LTM, MA, SNDK, UPS, WYNN)

There are still many upgrades coming considering the light and shortened week.  These are this Wednesday’s top early bird analyst upgrades and positive research calls that we have seen:

Capital One (COF) Raised to Buy at Citi.
eBay (EBAY) Raised to Outperform at Bernstein.
Goldman Sachs (GS) Raised to Outperform at JMP Securities.
Jetblue (JBLU) Raised to Buy at Argus.
Life Time Fitness (LTM) Started as Buy at Jefferies.
Mastercard (MA) Raised to Hold at Citi.
SanDisk (SNDK) Raised to Buy at Deutsche Bank.
UPS (UPS) Raised to Overweight at JPMorgan.
Wynn Resorts (WYNN) Raised to ‘Perform’ at Oppenheimer.

JON C. OGG

US Postal Service To Offer 30,000 Workers Buyouts

uncle samThe US Postal Service may be able to drive up the national rate of unemployment all on its own. The USPS will offer 30,000 workers buyouts. It has 650,000 workers, so that number is not as significant as it may seem at first.

The Postal Service expects to lose $7 billion this fiscal year. It believes that the buyouts could save $500 million, which is not nearly enough to solve its financial problems. According to The Wall Street Journal, workers who leave before January 1 would get a $10,000 payment at that point and another $5,000 later next year. Read More »

Media Digest 8/20/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   UBS (UBS) shares may fall when the Swiss government sells out.

Reuters:   The US deficit estimate was trimmed to $1.59 trillion.

Reuters:   A homeowner sued Wells Fargo (WFC) over a credit line.

Reuters:   AIG (AIG) was sued by policyholders over the Madoff fraud. Read More »

Buffett & Berkshire Hathaway Q2-2009 Holdings P to Z (BRK-A, PG, SNY, STI, TMK, USB, USG, UNH, UNP, UPS, WBC, WMT, WPO, WFC, WLP, WSC)

Buffett ImageBerkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) has released its public stock holdings for Q2-2009 as of June 30, 2009.  Buffett did make some portfolio changes that have been seen here from the end of Q1 and we have broken these down into 3 groups of ‘A to F’ and  ‘G to O’ and ‘P to Z’ so these are easier to see on one page.  Here are Warren Buffett’s holdings and accompanying notes for the group ‘P to Z.’

  • Procter & Gamble (NYSE: PG) 96.3 million, same as before.
  • Sanofi Aventis (NYSE: SNY) more than 3.9 million shares, looks same as before.
  • Sun Trust Bank (NYSE: STI) more than 3.2 million shares, same as before.
  • Torchmark Corp. (NYSE: TMK) roughly 2.82 million, same as before.
  • US Bancorp (NYSE: USB) roughly 69 million is same as before after it had been raised in Q1.
  • USG Corp. (NYSE: USG) 17.072 million shares, same as before.
  • United Health Group (NYSE: UNH) 4.5 million; down from over 6 million.
  • Union Pacific Corp. (NYSE: UNP) 9.55 million shares, same as Q1 after growing the Q1 over Q4 position.
  • United Parcel Service (NYSE: UPS) 1.429 million shares, same as before.
  • WABCO Holdings (NYSE: WBC) 2.7 million shares, same as before.
  • Wal-Mart Stores Inc. (NYSE: WMT) over 19.9 million shares, same as before.
  • Washington Post (NYSE: WPO) over 1.72 million shares, same as before.
  • Wells Fargo & Co. (NYSE: WFC) over 302 million; ABOVE the 290+ million shares the quarter before.
  • Wellpoint Inc. (NYSE: WLP) 3.5 million; DOWN from the 4.7773 million shares in Q1.
  • Wesco Financial Corp. (NYSE: WSC) 5.7 million shares, same as before.

BUFETT HOLDINGS ‘A to F’

BUFFETT HOLDINGS ‘G to O’
JON C. OGG
AUGUST 14, 2009