BloggingStocks

Taleo Corporation (TLEO): Shares cycle through positive trading channel

Larry Schutts — 2008-07-02T10:35:00+00:00

Filed under: Good news, Hewlett-Packard (HPQ), Dow Chemical (DOW), Technical Analysis, Freep't McMoRan Copper (FCX), Stocks to Buy

Taleo Corporation (NASDAQ: TLEO) offers software that allows businesses to efficiently manage their staffing processes. Products help to automate recruitment, background screening, regulatory compliance, skills assessment and tracking of professional, hourly, and temporary employees. The firm's professional services division provides implementation and technical support. Customers range from small businesses to global enterprises. Hewlett-Packard (NYSE: HPQ), Dow Chemical (NYSE: DOW) and Freeport-McMoRan (NYSE: FCX) are among Taleo's large-cap clients.

Investors were pleased last month, when the company affirmed its Q2 EPS and revenue guidance figures. Management also said it expected this week's acquisition of talent management software maker Vurv Technology to add to its 2008 results, projecting EPS of 62 cents (60 cent consensus) and revenues of $175-$177 million ($162.8M consensus).

The news kept TLEO shares cycling through a positive eight-week trading channel. The price is currently rebounding from the base of that channel, suggesting the potential for a rise back toward the top.

Brokers recommend the issue with two "strong buys", seven "buys", six "holds" and one "underperform". Analysts expect a 42% growth rate, through the next year. The TLEO Sales Growth rate (29.67%) and EPS Growth rate (250.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 80% of the outstanding shares. Over the past 52 weeks, the stock has traded between $16.55 and $34.20. A stop-loss of $17.50 looks good here. Note that the firm is expected to release Q2 results in late July.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Chemtura's failed private equity experiment

Tom Taulli — 2008-06-27T13:12:00+00:00

Filed under: Major movement, Private equity, Dow Chemical (DOW), Blackstone Group L.P (BX)

For deals of $2 billion or less, private equity firms are showing interest. However, the problem is: cheap valuations.

This is what the board at Chemtura (NYSE: CEM) found out the hard way. Late last year, the company retained Merrill Lynch (NYSE: MER) to explore "strategic alternatives." While some private equity firms showed interest - like Blackstone Group LP (NYSE: BX) and Apollo Management LP -- there wasn't much appetite to pay a premium. So, Chemtura has ended the process. Instead, the company will focus on restructuring (such as divestitures).

Chemtura has an interesting mix of businesses, such as plastic additives, pool and spa products and the lubricant components. For 2007, the company generated $3.7 billion in revenues.

However, with the energy crisis, the environment has been particularly tough for Chemtura. Just look at rival Dow Chemical (NYSE: DOW), which has increased prices two times during the past month.

Of course, Wall Street was disappointed with the Thursday's news on Chemtura's potential buyout, as the stock price plunged 22% to $6.34.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Big company, small town: Dow Chemical, Midland, Michigan

Sheldon Liber — 2008-06-26T14:20:00+00:00

Filed under: Products and services, Dow Chemical (DOW), Stocks to Buy

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

The Dow Chemical (NYSE: DOW) is capitalized at about $40 billion dollars and produces a multitude of household and industrial products that probably touch most Americans lives in some way. It is the largest chemical company in the U.S. and number two worldwide (ahead of ExxonMobil and behind BASF), and it is also a leader in performance plastics.

On May 18, 1897, Dow Chemical incorporated, based on Herbert H. Dow's plan to manufacture and sell bleach on a commercial scale. A year later they were in full-scale commercial production. The Dow-in-diamond mark was created to help resolve product shipping problems. In 1900, the Midland Chemical Company merged into Dow Chemical.

The company was always evolving under the guidance of Mr. Dow, who in 1913 announced the company would exit the bleach business to refocus to the value of chlorine as a raw material, prompting Dow stock to rise dramatically.

Throughout the early part of the 20th century, Dow was a patent machine with multiple products being developed all the time, and the prosperity of the founders led to the creation of the Herbert H. and Grace A. Dow Foundation in 1936. This pattern has continued to this day.

Midland County was organized in 1850. By 1874, the Flint and Pere Marquette Railroad extended through the heart of Midland to Averill, three miles west. The city of Midland was incorporated in 1887, in congruence with the company. Midland is a company town and Dow Chemical's success enabled Midland to survive the end of the logging era and to grow and prosper, being global headquarters, Dow Chemical and Dow Corning Corporation.

Dow stock has been trading in the high $30s recently, down from a high of $47.96. From an investment perspective, there are many positives to consider. Two that jump out at me are the price-to-sales ratio of 0.71, which is very, very low, and the dividend yield, which is very high, exceeding 4%. It also has a lower than average P/E of 13, a decent ROE above 15, and good cash flow to go along with modest debt.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of DOW.

Be sure to check out more Big Company, Small Town posts.

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Why it doesn't matter that the market is up on Friday the 13th

Jonathan Berr — 2008-06-13T12:45:00+00:00

Filed under: Define investing, Dow Chemical (DOW)

Investors looking for good news today can take solace knowing that Friday the 13th is not especially unlucky.

Indeed, researchers in the Netherlands have determined that fewer accidents and reports of fire and theft occur on Friday the 13th than other Fridays. And stocks are actually trading up in early market action. Still, some people won't care. About $800 million to $900 million will be lost in business today because people will not do things they normally do.

Investors need to remember that there are many ludicrous theories about the stock market. There is the Super Bowl Indicator where people figure that if a team from the old American Football Conference (now the American Football Conference) wins, the market is headed down, while a win for the old NFL (now the National Football Conference) means good times are ahead. People believe that bad things happen in October and that May is the time to sell and go away.

Sometimes these theories "work." Other times they don't. None of them should serve as the sole basis for any investing decision. I understand their appeal because they seem to take the guesswork out of figuring out the gyrations of the market. Real life, though, does not always fit into theories.

The Dow Jones industrial average and the NASDAQ Composite Index are both down more than 8% this year. Gasoline prices have topped $4, sending many trucking companies to the brink of bankruptcy. Soaring commodity prices have squeezed profits of businesses ranging from Dow Chemical Co. (NYSE: DOW) to the local pizzeria.

If you want to invest, do your homework. Of course, people still need to avoid black cats crossing their path, stepping on sidewalk cracks and breaking mirrors.

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Krugman's lame defense of Bernanke's pro-inflation policy

Peter Cohan — 2008-06-02T09:57:00+00:00

Filed under: Eastman Kodak (EK), Dow Chemical (DOW), Commodities, Oil, Federal Reserve

Paul Krugman's New York Times op-ed tries to defend his Princeton colleague, Federal Reserve Chairman Ben Bernanke. Krugman suggests that inflation is not a problem because he can't find any long-term labor contracts with 11% annual pay increases as in 1981's United Mine Workers contract.

Krugman gets himself into a weak position and he does not disclose his fealty to Bernanke whom he evidently does not believe can defend himself. It seems absurd to pretend that inflation is not a problem. Food prices have tripled and oil prices have doubled as Bernanke cut the Fed funds rate from 5.25% to 2%. Last week Dow Chemical (NYSE: DOW) announced a 20% price increase as did Eastman Kodak (NYSE: EK) in response to rising oil and other commodity prices. Huntsman Chemical (NYSE: HUN) announced a 25% price increase. And consumers -- who account for 70% of GDP growth -- expect inflation to rise at a rate of 7.7%.

Strapped consumers may demand wage increases. So Krugman has a point that it's worth looking at labor contracts. Unfortunately for his position, there are plenty of inflationary labor contracts being negotiated now if he cared to look. The San Francisco Chronicle reports that Silicon Valley janitors contracted for a 22% four-year wage increase. Bloomberg News reports a three-year 3.5% annual wage increase for the 70,000-member American Federation of Television and Radio Artists (AFTRA). The Seattle Post-Intelligencer reports on a local police contract for 36% wage increases by 2010 for rookie officers and a 25% increase for veterans.

Granted, this is not a comprehensive survey but it suggests that Professor Krugman has locked himself into a position of pretending inflation is not a problem and in so doing is ignoring all sorts of evidence to the contrary.

Let's hope the Fed will stop ignoring this evidence and raise rates before inflationary expectations get even more baked into the economy.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

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Oil probe: Politicians ducking for cover?

Melly Alazraki — 2008-05-30T14:15:00+00:00

Filed under: Rants and raves, Dow Chemical (DOW), Politics, Oil

Politicians this week have come up with a brilliant plan. Oh, let's blame the recent oil price hike on speculators, why don't we? This way, we can continue not doing anything about energy prices and oil's scarcity and still keep our jobs. Let's just deflect attention from us and our inaction and blame it all on those commodity traders.

Okay, of course, anyone who manipulates oil prices, inflating them artificially and causing us to pay $4 a gallon at the pump as a result while making a nice juicy profit on our backs, should pay. No doubt. But here's a thought: what if these speculators are doing us a service?

I'll use a line from Syriana: "It's running out." We all know it. At some point there will be no more oil, or it will become so scarce that $4 a gallon will sound like a joke, like my grandma telling me about those five-cent movie tickets (I still think she was pulling my leg!). And barring any alternative energy found to heat our homes, fuel our cars and power our factories, it is not difficult to envision doomsday scenarios.

So perhaps, instead of reaching that crucial stage and having to start scrambling for solutions then, perhaps the recent oil price hikes have done us more good than harm. It put the problem of oil and energy in the forefront; it made the problem too big to be ignored, brushed aside. Indeed, there has never been this much news and these many resources diverted to alternative energy as there has been in the past year (at least it feels that way).

The high price of oil has repercussions throughout the economy; it trickles down to the smallest of items and we've only been experiencing the beginning. The effect on prices is lagging. Still, only Wednesday Dow Chemical (NYSE: DOW) announced a price increase of up to 20% to offset these higher costs. Dow's CEO blamed Washington for not listening to industrialists when they demanded action for years.

So instead of constructive action to address the matter, once again politicians prove the only thing they care about is their cushiony seats. And I'm not the only one who thinks so. The Wall Street Journal writes, "Lawmakers in Congress have been pressing regulators to crack down on manipulation, as politicians seek to demonstrate ahead of the fall elections that they are responding to soaring gasoline prices." Translation: Don't blame us, blame the hedge funds.

As far as I'm concerned, it seems to me we are seeing the free market in action. Speculators predict higher demand with supply problems in the future, pushing prices higher. With higher energy prices, more attention and resources are devoted to other forms of energy and finding alternative sources of energy. Demand is also being curbed to balance the higher cost. Free market at its best! The government? It should wake up and face reality.

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Dow increases prices by up to 20% -- good or bad? Depends...

Melly Alazraki — 2008-05-28T18:22:00+00:00

Filed under: Consumer experience, Competitive strategy, Dow Chemical (DOW), Oil

Well, this seems to be a case of love it/hate it sentiment. At least for me. Since I'm not a shareholder of Dow Chemical Co. (NYSE: DOW), I lean toward the more negative sentiment.

No doubt, many stockholders cheered the company's move today to raise its prices by up to 20% so as to combat high energy prices. After the company reported a 3% drop in earnings last quarter and an alarmingly shrinking profit margin, the move makes sense. Indeed, the stock finished the day 1.49%, or 60 cents higher to $40.83.

As a general investor, though, I can't help but consider the effect this move would have on other companies and the overall economy, and hence my other holdings. You see, Dow makes so many chemical supplies used in so many industries as raw materials that the announced price increase will affect many companies' costs.

And of course, as a consumer, I'm bound to hate the move. Already I pay higher food and gas prices -- now many other regularly purchased items will cost more as a result of Dow hiking prices. I'll pay more for products like antifreeze, cosmetics, pharmaceuticals, detergents, paint and clothes. Oh, diapers too.

Without being bashful about it, Andrew Liveris, Dow Chemical's chairman and chief executive, blamed Washington directly for failing to address the issue of rising energy costs for the past several years. "As a result," he said, "the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy."

This is scary, and naturally Dow needs not absorb all the rising costs by itself. Therefore, we are now bound to see even higher inflation than some have originally anticipated. Too bad Dow's lobbying and the millions of pre-election promises haven't borne fruit, at least yet. We just have to wait and see now how much this move will affect us and how vast its implications will be as the prices trickle down the chain and reach us.

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Closing Bell: End of day buyers again mask mixed day

Jon Ogg — 2008-05-28T16:12:00+00:00

Filed under: Expedia Inc (EXPE), Dow Chemical (DOW), Polo Ralph Lauren'A' (RL)

We saw another late day move save the markets today from looking like just one more mixed post-holiday trading session. The highly volatile durable goods orders came in at -0.5% for April, based partly on severe declines in aircrafts and autos. Any reprieve in oil was just that, some reprieve but no cure. We also saw the 10-Year Treasury cross back above that 4.00% threshold again. FOMC governor Mishkin also announced that he would retire in August, although this was non-moving for the market. Below are the unofficial closing bell levels:

DJIA 12,594.84 (+46.49)
S&P500 1391.01 (+5.66)
NASDAQ 2486.70 (+5.46)
52-WEEK LOWS
TOP 10 ANALYST CALLS

Akeena Solar Inc. (NASDAQ: AKNS) saw a monster volume spike early on after boutique research firm Kaufman Bros. initiated coverage on the speculative solar stock with a Buy rating. More interesting than the research call itself was the overall level of volume right at the open that saw follow-on interest throughout the day as shares were up nearly 16% at $6.83 in the final minutes today.

American Eagle Outfitters (NYSE: AEO) saw a 9% rise by the final minutes of the trading day to $18.79 after its earnings came in above some expectations.

Dow Chemical Co. (NYSE: DOW) shares were up almost 1% at $40.60 in the final minutes today after the chemical maker said it was going to raise its prices on all product groups by up to 20% starting on June 1.

Expedia Inc. (NASDAQ: EXPE) saw a 7% share rise to $23.37 by the final minutes of the trading day as rumors circulated that Barry Diller was considering taking it private.

KeyCorp (NYSE: KEY) saw shares down over 11% at $19.45 in the final minutes today after the company increased its loan loss forecasts.

Polo Ralph Lauren Corp. (NYSE: RL) shares were up 11% in the final minutes today at $68.57. The company beat earnings expectations and guided in-line for the year ahead.

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Dow Chemical (DOW) hikes prices

Brent Archer — 2008-05-28T14:23:00+00:00

Filed under: Good news, Dow Chemical (DOW), Options, Technical Analysis, Oil

Dow Chemical (NYSE: DOW) shares are trading higher after the company announced it will raise product prices by up to 20% almost immediately. The company cited higher energy and raw-material costs for the price hikes, and used the announcement to criticize the government for failing to develop a logical energy policy. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DOW.

After hitting a one-year high of $47.96 in July, the stock hit a one-year low of $33.01 in January. DOW opened this morning at $40.77. So far today the stock has hit a low of $40.25 and a high of $40.79. As of 12:40, DOW is trading at $40.70, up $0.47 (1.2%). The chart for DOW looks bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $35 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just 7 weeks as long as DOW is above $35 at July expiration. Dow would have to fall by more than 13% before we would start to lose money. Learn more about this type of trade here.

DOW hasn't been below $35 for more than a few days in the past year and has shown support around $39 recently. This trade could be risky if the prices for oil and energy continue to rise, but even if that happens, that position could be protected by support the stock might find just above $36, where it bottomed out in March.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DOW.

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Warren Buffett's darker view of the economy

Douglas McIntyre — 2008-05-24T13:40:00+00:00

Filed under: General Electric (GE), General Motors (GM), Dow Chemical (DOW), Recession

Warren Buffett's concerns about how bad things are going to get in the U.S. has taken an unpleasant turn.

Speaking of the economy, Reuters quotes Buffett as saying, "But the people are already feeling the effects. It will be deeper and last longer than many think."

Buffett's name gets added to those of people like George Soros who have strong concerns about the next several quarters. The stock market is supporting their views. General Motors (NYSE: GM), General Electric (NYSE: GE), airlines, and many companies in the financial sector now trade at 52-week lows. The Fed has revised down its forecast for GDP. Many economists polled by Reuters see a bad year ahead.

The CEO of Dow Chemical (NYSE: DOW) recently stated that inflation and the credit crisis are causing significant changes in consumer behavior. Many of the factors that drove several years of grow in the economy are gone.

Buffett's views may be a little late, but the are, nonetheless, almost certainly true.

Douglas A. McIntyre is an editor at 247wallst.com.

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Earnings highlights: Ford, Boeing, McDonald's, PepsiCo, JetBlue and others

Trey Thoelcke — 2008-04-27T11:40:00+00:00

Filed under: Earnings reports, Starbucks (SBUX), PepsiCo (PEP), Ford Motor (F), McDonald's (MCD), Halliburton (HAL), Boeing Co (BA), Hershey Co (HSY), Coach Inc (COH), ConocoPhillips (COP), Yum Brands (YUM), duPont(E.I.)deNemours (DD), Lockheed Martin (LMT), U.S. Steel (X), UAL Corp (UAUA), Dow Chemical (DOW), JetBlue Airways (JBLU), Goodyear Tire and Rubber (GT), Delta Air Lines (DAL)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

American Axle & Manufacturing Holdings Inc. (NYSE: AXL) reported a strike-related Q1 loss.
Arch Coal Inc. (NYSE: ACI) Q1 profit tripled on increased demand and higher prices.
Boeing Co. (NYSE: BA) posted better-than-expected earnings despite Dreamliner delays.
Coach Inc. (NYSE: COH) better-than-expected quarter didn't impress Jim Cramer.
ConocoPhillips (NYSE: COP) reported Q1 earnings and revenue above analysts' forecasts.
Delta Air Lines Inc. (NYSE: DAL) reported a big loss on a one-time charge and fuel costs.
Dow Chemical Co. (NYSE: DOW) posted a smaller-than-forecast profit drop and predicted a good Q2.
EI DuPont de Nemours & Co. (NYSE: DD) Q1 earnings rose 26% but missed expectations.
Ford Motor Co. (NYSE: F) surprised Wall Street by swinging to a profit in the first quarter.
Goodyear Tire and Rubber Co. (NYSE: GT) easily surpassed analyst estimates for the first quarter.
Halliburton Co. (NYSE: HAL) Q1 earnings and revenue rose due to international growth.
Hershey Co. (NYSE: HSY) profit fell but was in line with analysts' expectations.

JetBlue Airways Corp. (NASDAQ: JBLU) reported a narrower-than-expected loss in the first quarter.
Lockheed-Martin Corp. (NYSE: LMT) posted solid Q1 results and raised its full-year outlook.
McDonald's Corp. (NYSE: MCD) easily beat Q1 estimates due to gains overseas.
Northwest Airlines Corp. (NYSE: NWA) reported a larger-than-expected loss due to fuel costs.
PepsiCo Inc. (NYSE: PEP) posted solid Q1 results that were merely inline with expectations.
Pepsi Bottling Group (NYSE: PBG) earnings were flat, but beat Wall Street expectations by a penny.
Potash Corp. of Saskatchewan Inc. (NYSE: POT) posted strong results on strong demand and price hikes.
Sonoco Products Co. (NYSE: SON) reported better-than-expected Q1 results and revised guidance.
Starbucks Corp. (NASDAQ: SBUX) preliminary Q2 results were lower than analyst's expected.
3M Co. (NYSE: MMM) beat earnings expectations and reaffirmed its guidance.
UAL Corp. (NASDAQ: UAUA) posted a worse-than-expected Q1 loss on rising fuel prices.
US Steel Corp. (NYSE: X) better-than-expected quarter didn't impress Jim Cramer.
Yum! Brands Inc. (NYSE: YUM) Q1 profits soared on overseas strength, and raised its guidance.

Also, Jim Cramer discusses "crummy lenders" and Jonathan Berr wonders if Ford's turnaround is for real. Joseph Lazzaro considers Citigroup Inc. (NYSE: C) as a barometer of the economy. One analyst thinks financials may have hit bottom and it may be time to buy, and Jon Ogg looks at what short sellers are making of tech stocks. Ted Allrich discusses what to sell/what to buy.

Upcoming results to watch for include Verizon Communications (NYSE: VZ), Tyson Foods (NYSE: TSN), CBS Corp. (NYSE: CBS), Countrywide Financial (NYSE: CFC), U.S. Steel Corp. (NYSE: X), Office Depot (NYSE: ODP), General Motors (NYSE: GM), Procter & Gamble (NYSE: PG), Kraft Foods (NYSE: KFT), Starbucks (NASDAQ: SBUX), Time Warner (NYSE: TWX), Comcast (NASDAQ: CMCSA), Exxon Mobil (NYSE: XOM), and Chevron (NYSE: CVX).

Visit AOL Money & Finance for more earnings coverage.

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Before the bell: DOW, CS, BAC, PEP, WEN, MMM, MOT ...

Melly Alazraki — 2008-04-24T08:21:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Deals, Apple Inc (AAPL), Wal-Mart (WMT), PepsiCo (PEP), Motorola (MOT), 3M Corporation (MMM), Bank of America (BAC), Countrywide Financial (CFC), Newell Rubbermaid (NWL), Wendy's Intl (WEN), Dow Chemical (DOW)

Before the bell: Futures down on SBUX, AMZN, despite AAPL, Ford

Dow Chemical (NYSE: DOW) reported a smaller-than-forecast 3% profit drop Thursday and said it would have a good second quarter. Higher feedstock and energy costs were blamed for the drop. The chemical giant reported earnings of 99 cents per share, beating the 94 cents estimate.

If two weeks ago some hoped we've seen the bottom of the subprime mortgage crisis, since then more problems, especially with European banks seem to pop. Credit Suisse (NYSE: CS) reported a wider-than-forecast loss of $2.1 billion on a $5.3 billion writeoff as the global effects of the U.S. subprime mortgage crisis continued to spread. Share of CS though are rising in premarket trading about 1.8% as the bank may have seen the worst.

Bank of America Corp. (NYSE: BAC) shareholders don't want the bank to proceed with the $4 billion acquision of Courntrywide Financial Corp. (NYSE: CFC), the mortgage lender that has become the poster child for the subprime mortgage problems. The have pleaded on Wednesday with the bank's CEO.

PepsiCo (NYSE: PEP) reported a 5% profit increase and a solid top-line performance due to its international division that helped offset higher commodity costs. Net income jumped to $1.15 billion, or 70 cents per share, inline with estimates. Revenue, though, climbed 13%, beating estimates.

Wendy's International Inc (NYSE: WEN) will today announce a deal with Peltz, the Wall Street Journal reported. This will culminate a year-long review as the Journal reports the board voted on Wednesday on the transaction, though its exact nature or price involved is yet unknown. WEN shares are up 8% in premarket trading.

Also reported this morning:

3M Co. (NYSE: MMM) reported a 28% drop in tits first-quarter earnings while sales rose 9% and affirmed 2008 guidance.
Newell Rubbermaid (NYSE: NWL) reported that first-quarter net income rose 15% on 3.6% higher sales, and it cut its estimate of adjusted earnings for the year.
Motorola (NYSE: MOT) reported a loss of $0.05 per share, excluding non-recurring items, beating estimates by 2 cents. The guidance, however, was lowered. MOT shares are down 4.7% in premarket trading.

Finally, Wal-Mart Stores Inc (NYSE: WMT) Sam's Club warehouse division said on Wednesday it is limiting sales of several types of rice, the latest sign that fears of a rice shortage are rippling around the world.

Lehman Brothers analyst Ben Reitzes raised his fiscal third-quarter earnings outlook to $1.10 per share from $1.07 per share due to bullish outlook on Mac sales.

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Earnings expectations for next week's "barometers"

Trey Thoelcke — 2008-04-18T12:35:00+00:00

Filed under: Earnings reports, Forecasts, Microsoft (MSFT), Apple Inc (AAPL), PepsiCo (PEP), AT and T (T), 3M Corporation (MMM), Boeing Co (BA), United Parcel'B' (UPS), Dow Chemical (DOW), Texas Instruments (TXN)

For nervous investors and analysts looking for good news on the earnings front, it's been a week of mixed blessings. However, judging by the expectations for the following ten so-called barometers of the U.S. economy, or important sectors of it, things could be looking up. All these companies are scheduled to report quarterly results next week (April 21 to April 25).

These first six companies are expected by analysts surveyed by Thomson Financial to post growth in profits in the most recent quarter, compared to the same period of last year:

Texas Instruments Inc. (NYSE: TXN): 22.9%
Apple Inc. (NASDAQ: AAPL): 21.8%
Boeing Co. (NYSE: BA): 20.5%
AT&T (NYSE: T): 13.8%
Pepsico Inc. (NYSE: PEP): 7.7%
3M Co. (NYSE: MMM): 5.5%

The three companies below, though, are expected to report smaller quarterly profits than in the same period of the previous year:

United Parcel Service (NYSE: UPS): -10.4%
Microsoft Corp. (NASDAQ: MSFT): -10.2%
Dow Chemical Co. (NYSE: DOW): -6.0%

And representing the continuing difficulties in housing, the following home builder is expected to report a loss:

Pulte Homes Inc. (NYSE: PHM): -$0.73 per share

It's worth noting that this estimate is much narrower than the $3.54 loss per share from Pulte's previous quarter.

If those companies on the earnings growth list live up to expectations, perhaps that will soothe a few frayed nerves. Of course, some positive surprises next week wouldn't hurt either.

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Eastman Chemical Company (EMN): Shares define bullish 'flag'

Larry Schutts — 2008-04-10T10:55:00+00:00

Filed under: Good news, Dow Chemical (DOW), Technical Analysis, Stocks to Buy

Eastman Chemical Company (NYSE: EMN) manufactures and markets chemicals, fibers and plastics. Key products include coatings, adhesives, specialty plastics, cellulose acetate fibers, polyethylene terephthalate polymers for packaging, and intermediates based on oxo and acetyl chemistries. The company has operations in 23 countries and employees 11,000. Dow Chemical (NYSE: DOW) is a major competitor.

Eastman surprised investors earlier in the week, when it issued upside guidance for first quarter earnings. The firm now sees Q1 EPS of $1.30, versus the Street consensus estimate of $1.21. Management said that continued strong sales volume and higher selling prices offset higher raw material and energy costs.

EMN shares popped on the news and have since begun to consolidate the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", two "buys", four "holds" and one "sell". The EMN Price to Sales ratio (0.80), Price to Book ratio (2.71), Price to Cash Flow ratio (8.47) and EPS Growth rate (27.00%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $56.31 and $72.44. A stop-loss of $60.50 looks good here. Note that the firm is expected to report Q1 earnings on April 24th, after the close.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.

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Stocks insiders love, best blue chip stocks today & retirement wake-up call - Today in Money 4/9

Allan Halprin — 2008-04-09T08:46:00+00:00

Filed under: Hewlett-Packard (HPQ), General Electric (GE), Walt Disney (DIS), Citigroup Inc. (C), Money and Finance Today, Boeing Co (BA), Boston Scientific (BSX), Circuit City Stores (CC), duPont(E.I.)deNemours (DD), United Parcel'B' (UPS), Electronic Arts (ERTS), AMR Corp (AMR), Dow Chemical (DOW), EMC Corp (EMC), Delta Air Lines (DAL), Burlington Northern Santa Fe (BNI)

In the News:

· Boeing Delays Initial Dreamliner 787 Deliveries Until 3Q of 2009

· Delta, Northwest Airlines Could Announce Merger Next Week

· UPS Says 1Q Was Rough; Cuts Outlook

· Citi May Unload $12 Billion in Loans

· American Airlines Cancels Hundreds More Flights

· EMC to Buy Zip Drive Maker Iomega for $213M

· Circuit City Surprisingly Swings to Profit

· Grand Theft Auto IV: The Game Is On Between EA & Take-Two

· Disney to Release 10 New Animated Films Through 2012

· Protests Could Hurt Olympic Sponsors

5 Stocks Insiders Love
If corporate managers and directors are buying their company's stock, maybe you should, too. They include Boston Scientific, Hanesbrands, Dow Chemical, McMoRan Exploration and Synaptics.
Five Stocks Insiders Love - Kiplinger.com

Best Blue Chips for This Market
The best way to boost your long-term returns is to buy when prices are cheap - and here are 5 excellent bargains -- 3M, DuPont, General Electric, Hewlett-Packard and Burlington Northern Santa Fe.
The best blue chips for this market - CNNMoney.com

Retirement Wake-Up Call
New survey finds that Americans are having doubts about how to pay for their golden years. Only 18% of workers polled were very confident about saving enough money for a comfortable retirement. That's the steepest annual decline in the survey's 18-year history, and down sharply from 27% in the previous year.
Survey: Americans more worried about retirement savings - CNNmoney

10 Tips to Keep Tax Returns Safe From Theft
As millions of Americans scramble to file their tax returns, the Internal Revenue Service is deflecting concerns that its computer network is flawed, leaving sensitive taxpayer information open to wrongdoers. Here are 10 tips that are strongly recommend to taxpayers to keep your returns safe.
Ten tips to protect your tax returns as IRS confronts own flaws - MarketWatch

Save Money on Prescriptions
Do your drugs cost too much? Find out how to get well for less.
Save Money on Prescriptions - Kiplinger.com

Best in Auto Repair Service
Many drivers wonder whether to take their cars to a dealership or to an independent shop for repairs and maintenance. Dealerships tout that they're specialists and trained specifically for a certain brand of car. But independents are generally less expensive. How to decide? According to a recent survey of car owners by the Consumer Reports National Research Center new information shows that independent shops generate a higher level of overall satisfaction than dealerships.
ConsumerReports.org - Auto service: Owners prefer independents
Best Repair Satisfaction
Best Maintenance Satisfaction

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PolyOne Corporation (POL): Shares forming bullish 'pennant' pattern

Larry Schutts — 2008-02-14T11:59:00+00:00

Filed under: Earnings reports, duPont(E.I.)deNemours (DD), Dow Chemical (DOW), Technical Analysis, Stocks to Buy

PolyOne Corporation (NYSE: POL) provides vinyl compounds, polymer coating systems, screen printing inks, engineered films, specialty resins, colors, additives and high performance compounds to 10,000 customers in 35 countries. The company also distributes a full range of resins from such manufacturers as Dow Chemical (NYSE: DOW) and DuPont (NYSE: DD). PolyOne operates from manufacturing facilities and joint ventures in North America, South America, Europe, Asia and Australia.

The firm surprised investors last week, when it announced Q4 EPS of 9 cents and revenues of $631.3 million. Analysts had been expecting 7 cents and $623.9 million. In discussing the solid quarter, the CEO particularly noted growth in the PolyOne construction-independent non-vinyl businesses. Management also guided FY08 revenues to about $2.91-$2.96 billion, versus Street consensus of $2.68 billion.

The stock price popped through 90-day moving average resistance on the news and then began forming a bullish "pennant" consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend POL with two "buys" and three "holds". Analysts see a 44% growth rate, through the next year. The stock's Price to Sales ratio (0.25), Price to Book ratio (1.00), Price to Cash Flow ratio (9.43), Price to Free Cash Flow ratio (27.26) and EPS Growth rate (200.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $5.11 and $9.29. A stop-loss of $6.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Eastman Chemical Company (EMN): Price forming bullish 'flag"

Larry Schutts — 2008-02-04T12:44:00+00:00

Filed under: Earnings reports, Dow Chemical (DOW), Technical Analysis, Stocks to Buy

Eastman surprised investors late last month, when it reported Q4 EPS of $1.27 and revenues of $1.74 billion. Analysts had been expecting $1.11 and $1.67 billion. Management also guided Q1 EPS above $1.19 ($1.19 consensus) and estimated FY08 EPS of $5.06 ($4.92 consensus).

EMN shares popped on the news and then began defining a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", one "buy" and six "holds". The EMN Price to Sales ratio (0.79), Price to Book ratio (2.57), Price to Cash Flow ratio (8.36) and EPS Growth rate (27.00%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $56.31 and $72.44. A stop-loss of $57.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in the stocks mentioned above.

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Earnings highlights: Exxon, Boeing, Halliburton, Sony, UPS, Honda and others

Trey Thoelcke — 2008-02-02T12:40:00+00:00

Filed under: Earnings reports, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Exxon Mobil (XOM), Halliburton (HAL), Sony Corp ADR (SNE), Boeing Co (BA), United Parcel'B' (UPS), U.S. Steel (X), Dow Chemical (DOW), Valero Energy (VLO), JetBlue Airways (JBLU), Burlington Northern Santa Fe (BNI), Raytheon Company (RTN)

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

Airgas Inc. (NYSE: ARG) beat expectations and raised its guidance.
Boeing Co. (NYSE: BA) beat estimates and said the 787 Dreamliner was on schedule.
Burlington Northern Santa Fe Corp. (NYSE: BNI) fourth-quarter profits fell on rising fuel costs.
Crane Co. (NYSE: CR) beat expectations and raised its guidance.
Dow Chemical Co. (NYSE: DOW) profits fell due to rising costs of raw materials.
Exxon Mobil Corp. (NYSE: XOM) posted the largest annual and quarterly profit ever by a U.S. company.
Halliburton Co. (NYSE: HAL) beat earnings expectations due to strong international growth.
Honda Motor Co. (NYSE: HMC) posted record earnings for the third quarter on demand for fuel efficiency.
JetBlue Airways Corp. (NASDAQ: JBLU) posted a narrower-than-expected loss.
Nissan Motor Co. (NASDAQ: NSANY) posted strong results due in part to U.S. sales of the Rogue.
Occidental Petroleum Corp. (NYSE: OXY) fourth-quarter profit surged, leading to its best yearly results ever.
Paraexel International Corp. (NASDAQ: PRXL) beat estimates and offered revised guidance.
Ratheon Co. (NYSE: RTN) posted strong fourth-quarter results and offered optimistic guidance.
RightNow Technologies Inc. (NASDAQ: RNOW) posted a loss, though revenues were up.
Sony Corp. (NYSE: SNE) posted solid results on TV sales and the game division's return to the black.
Stanley Works (NYSE: SWK) posted solid results despite the housing slump due to strength overseas.
United Parcel Service Inc. (NYSE: UPS) met earnings estimates due to a pension-related charge.
US Steel Corp. (NYSE: X) fourth-quarter and full-year profits declined on acquisition costs and job cuts.
Valero Energy Corp. (NYSE: VLO) beat expectations despite a profit decline of 49%.

For additional BloggingStocks earnings highlights, see Yahoo!, Google, Amazon, Countrywide, Merck, UBS and others and McDonald's, Kraft, P&G, Verizon, MasterCard, 3M and others.

Also, in the wake of earnings reports from Yahoo! (NASDAQ: YHOO) and Google (NASDAQ: GOOG), Microsoft Corp. (NASDAQ: MSFT) made a move for Yahoo! Rumor has Google going after AOL in response. Meanwhile, Timothy Sykes has some advice for buying stocks ahead of earnings reports.

Upcoming results to watch for include Archer Daniels Midland (NYSE: ADM), Yum Brands (NYSE: YUM), Walt Disney (NYSE: DIS), Cisco Systems (NASDAQ: CSCO), Time Warner (NYSE: TWX), and PepsiCo. (NYSE: PEP).

Visit AOL Money & Finance for more earnings coverage.

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Before the bell: Futures higher on rate-cut hopes; earnings, data ahead

Melly Alazraki — 2008-01-29T07:49:00+00:00

Filed under: Before the bell, Earnings reports, Market matters, IAC/InterActiveCorp (IACI), American Express (AXP), Dow Chemical (DOW), Economic data, Housing, Federal Reserve

Stock futures were higher this morning, indicating Wall Street could start on a positive note, continuing yesterday's late-session rally as investors hope for further rate cuts. Investors will also examine more economic data and earnings today.

In what has become usual on Wall Street, the bleak new-home sales numbers reported Monday actually helped push stocks higher as it reignited speculation that the Federal Reserve will cut interest rates by a half-point this week. The Dow industrials finished up 176 points, or 1.45%, the S&P 500 was up 23 points, or 1.76%, and the Nasdaq Composite rose 23 points, or 1.02%.

The Federal Reserve is scheduled to open the two-day Federal Open Market Committee meeting Tuesday afternoon. The decided policy announcement usually comes at the conclusion of the meeting, that is tomorrow at 2:15 p.m. EST. The key rate now stands at 3.5% after the Fed had cut rates by three-quarter-point in an emergency meeting last week. Many economists believe the Fed will lower its key rate by as much as one-half percentage point to 3%. Banks will then lower the prime rate, helping lenders get loans at lower rates.

A number of economic readings Tuesday include some more housing data:

RealtyTrac already reported foreclosure data. The number of foreclosures soared by 75% in 2007, with 405,000 households losing their home, with total foreclosure filings soared 97% in December alone compared with December of 2006.
At 8:30 a.m. EST, December durable goods orders is due.
At 9 a.m., the S&P/Case-Shiller Home Price Index for November is released.
At 10 a.m. January consumer confidence will be reported. The Census Bureau will also give its report on fourth-quarter home ownership and the number of vacant homes for sale on the market.

Overseas, most Asian stock markets rebounded Tuesday. European markets were also higher by midday.

On Wall Street, investors will have not only all that data to digest, but several earnings report as well including 3M (NYSE: MMM) and Countrywide Financial (NYSE: CFC) before the opening bell, and Yahoo! (NASDAQ: YHOO) after the close.

American Express (NYSE: AXP) reported a 10% profit dip during the fourth quarter, claiming that setting high standards for prospective cardholders helps guard against some credit problems, but not all of them. AXP still wrote off loans in the United States at a rate of 4.3% in the fourth quarter of 2007, up from 3.7% in the third quarter but below the average. Offsetting that somewhat was higher spending by individuals and small businesses, which boosted the fees it gets from merchants. American Express anticipates rising write-offs and much slower profit growth in 2008 and shares are declining 2.9% in premarket trading.

Dow Chemical Co. (NYSE: DOW) said fourth-quarter earnings fell 52% to $472 million, or 49 cents a share because costs for oil- and gas-based raw materials outpaced price gains. Profit excluding some costs was 84 cents, topping the 80-cent average estimate of 14 analysts surveyed by Bloomberg. Sales rose 16% to a record $14.2 billion. DOW shares are up nearly 1.8% in premarket trading.

The Wall Street Journal reported that Liberty Media (NASDAQ: LINTA) attempted Monday to gain control of Barry Diller's IAC/InterActiveCorp (NASDAQ: IACI).

VMware Inc (NYSE: VMW), which saw its shares quadruple in value after an August initial public offering, has experienced declines since November and were trading over 24% lower in premarket trading. The company reported more than double the profit on quarterly revenue growth of 80% that fell short of Wall Street expectations and forecast a slowdown in sales growth, expecting revenue growth of 50% in 2008, versus 88% in 2007.

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