BloggingStocks

Before the bell: Futures mixed again; RTP, LEH, COH, GM, MRVL, NWA ...

Melly Alazraki — 2008-08-26T08:14:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), General Motors (GM), Market matters, Coach Inc (COH), Broadcom Corp'A' (BRCM), Economic data, Marvell Technology Group (MRVL), Rio Tinto plc ADS (RTP), Anadarko Petroleum (APC), Oil, salesforce.com inc (CRM), Delta Air Lines (DAL), Lehman Br Holdings (LEH), Housing

U.S. stock futures were mixed on Tuesday. Following Monday's broad sell-off and volatile session, which was also marked by low volume, today might not be different -- volatile and low volume. Several reports are in focus today, specifically some housing data that could shine more light on the sector, and consumer confidence, which could also move stocks. Meantime, oil prices declined and the dollar strengthened against major currencies.

Rio Tinto (NYSE: RTP) shares are down over 3% in premarket trading after the mining giant reported fiscal first-half profit more than doubled. RTP's acquisition of Alcan and soaring commodity prices helped Rio achieve the results. RTP shares have been declining due to worldwide slower growth.

Meanwhile, Anadarko Petroleum (NYSE: APC) shares were 2.4% higher in after-hours after it announced a plan to buy back up to $5 billion of stock.

Staying with share buybacks, Coach (NYSE: COH) are also 1.7% higher in premarket trading after announcing a buyback program of up to $1 billion, which follows the completion of a similar repurchase.

And of course, Lehman Brothers (NYSE: LEH). Shares of the embattled banker are rising this morning following speculation that Kohlberg Kravis Roberts may be interested in buying Neuberger Berman, according to CNBC, while Blackstone Group backed away.

Moving to autos, General Motors Corp (NYSE: GM) has apparently received interest from two separate investors from the Gulf Arab region to buy its Hummer brand, according to the company's Middle East chief, reports Reuters. GM shares are 1% higher this morning.

And from autos to airlines, Delta Air Lines (NYSE: DAL) borrowed the $1 billion available on a revolving-credit facility, "which it says will give it flexibility as it closes its Northwest (NYSE: NWA) merger." Shares of NWA are pushing 2.7% higher in premarket.

To rumor land we go: The blogosphere is circulating a rumor that Apple Inc. (NASDAQ: AAPL) is planning an Apple Event for new iPod nanos, a less expensive iPod touch, and iTunes 8 on September 9.

Analyst calls:

Salesforce.com (NYSE: CRM) was upgraded by Citigroup from Hold to Buy and set its target price on the stock to $70.
Broadcom (NASDAQ: BRCM) was downgraded by Oppenheimer from Outperform to Perform.
Marvell (NASDAQ: MRVL) was downgraded by Jefferies & Co from Buy to Hold and lowered the target price from $22 to $15.

Permalink | Email this | Linking Blogs | Comments

Hidden tax traps in house-rescue bill, most tax-friendly states for retirees & 29 best green choices - Today in Money 7/30

Allan Halprin — 2008-07-30T09:15:00+00:00

Filed under: Viacom (VIA), Money and Finance Today, Merrill Lynch (MER), Coach Inc (COH), Corning Inc (GLW), Delta Air Lines (DAL)

In the News:

· Bush Signs Housing Bill Intended to Provide Mortgage Relief to 400,000 Into Law

· Corning 2Q Profit Jumps, Outlook Weak

· 'Indiana Jones' & 'Iron Man' Lift Viacom Earnings Which Top Estimates

· Wii Sales Boost Nintendo as Its Profit Soars

· Delta to Charge $50 for Checking a Second Bag

· Coach Posts Profit, But Outlook Murky

· Zimbabwe Knocks Ten Zero's Off of Its Currency

· Dunkin' Donuts to Offer Healthier Menu Items Next Week

· Department Store Chain Mervyns Files for Chpt. 11 Bankruptcy Protection

The Hidden Tax Traps in the Housing-Rescue Bill
Don't get snared in these five hidden traps in the new housing-rescue legislation.
The hidden tax traps in the housing-rescue bill - MarketWatch

"I Said What?!"
It's not easy being a bank CEO these days. Just ask Merrill Lynch's highly paid CEO John Thain. Nearly every promise he's made to investors since he took the helm has been broken. Here are the most regrettable things Wall Street CEOs have said since the credit crunch began.
Regrettable Comments by Bank CEOs - Portfolio.com

Cracking Down on Mortgage Scammers
The Justice Department is going after real estate fraud. The 400-plus people charged nationwide racked up $1 billion in losses. Here's what they are finding.
Feds cracks down on mortgage fraud - CNNmoney

Beef or Chicken? Paper or Plastic? Buried or Cremated?
If you are looking for a better Earth the answers are Chicken, Paper and Cremation. Our global environmental problems are the net result of billions of individual decisions, and the right choice isn't always obvious. The right choice may vary depending on your individual circumstances, but here are some general guidelines to inform your thinking.
29 Best Green Choices - Forbes.com

Most Tax-Friendly States for Retirees
Where you live can have a huge impact on your tax bill in ways that may surprise you. Some states are more tax-friendly for retirees than others.
Retiree Tax Heaven (and Hell) - Kiplinger.com

Auto Leasing Hits the Skids
Struggling auto lenders are seeking a new lease on life -- one that doesn't include leases. Chrysler, other lenders pull out of money-losing auto leases. Here's what to expect.
Auto Makers Hit the Brakes on Leasing Programs - SmartMoney.com

Not-So-Dirty Sexy Money
Mention the name Chippendales to most people and they probably think of a cheesy group of shirtless hunks in bow ties getting dollar bills tucked into their G-strings by hysterical women. What Kevin Denberg wants them to think about, however, is tasteful but still titillating entertainment for women with high-end production values and ticket prices to match. Thirty years after Chippendales debuted, Denberg is doing everything he can to turn its tremendous brand recognition into profits, all while staying PG-13. Can he do it?
Chippendales' Kevin Denberg - Portfolio.com

Permalink | Email this | Linking Blogs | Comments

Before the bell: MER, CL, BP, AAPL, SAP, ALU, AMGN, SBUX, SNE,

Melly Alazraki — 2008-07-29T08:12:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Apple Inc (AAPL), Starbucks (SBUX), Market matters, Viacom (VIA), Sony Corp ADR (SNE), Merrill Lynch (MER), Colgate-Palmolive (CL), Coach Inc (COH), Research in Motion (RIMM), BP p.l.c. ADS (BP), Alcatel-LucentADS (ALU), U.S. Steel (X), Amgen Inc (AMGN), Electronic Arts (ERTS), Valero Energy (VLO), Economic data, Northrop Grumman (NOC)

After a day that saw U.S. equity markets decline in the neighborhood of 2%, U.S. stock futures earlier this morning pointed to a rough start Tuesday as well. News late Monday the Merrill Lynch said it's selling a big slice of its asset-backed securities and $8.5 billion in stock, renewed concerns over the financial sector health. But futures have started creeping upward, ahead of the latest readings on house prices with the Case-Shiller home price index for May and Conference Board reading of consumer confidence for July.

Meanwhile, we're still in the middle of earnings season and today

Colgate Palmolive (NYSE: CL) - Colgate-Palmolive 2Q profit rises 19%,
BP (NYSE: BP) - BP's Second-Quarter Profit Rises on Record Oil Prices - shares are over 2% higher in premarket trading
Coach (NYSE: COH) - Weaker dollar helps Coach 4th-quarter results
Northrop Grumman (NYSE: NOC), Viacom (NYSE: VIA), Valero Energy Corp. (NYSE: VLO), United States Steel Corp. (NYSE: X)
Electronic Arts (NASDAQ: ERTS) will report after the close of tradin

The big story making headlines since late Monday is the bombshell Merrill Lynch (NYSE: MER) that it is taking an enormous $5.7 billion write-down on losses from mortgage-backed securities (MBSs) and plans to raise $8.5 billion. MER shares already dropped 11.6% Monday before the news was out, and while they're rebounding 2.75% this morning, many are very uncomfortable with Merrill's current situation and actions.

Alcatel-Lucent (NYSE: ALU), the French telecommunications giant, is finally getting rid of its CEO Patricia Russo and Chairman Serge Tchuruk who will both resign later this year. It's no surprise shares are rebounding over 6% in premarket trading. ALU also reported its sixth consecutive quarter of losses. Alcatel-Lucent reported a net loss of 1.1 billion euros ($1.73 billion) for the second quarter including an euro810 million ($1.3 billion) goodwill writedown.

Amgen Inc. (NASDAQ: AMGN) is rising over 4% in premarket trading after closing over 12% higher Monday. Amgen said Monday results for its denosumab osteoporosis drug met desired results and reported better-than expected earnings and sales (across the board). Citigroup upgraded AMGN from Hold to Buy, while Oppenheimer raised target price.

Sony Corp. (NYSE: SNE) said Tuesday its quarterly profit plunged to 34.98 billion yen ($326.9 million), about half that recorded a year ago, due to a strong yen, the absence of a hit movie revenue and declining results at its cell phone operations. Nevertheless, results beat estimates.

Starbucks Corp. (NASDAQ: SBUX) said Tuesday it plans to close 61 Australian stores and shed 685 jobs by Aug. 3 as part of a restructure of its struggling Australian business.

SAP (NYSE: SAP) shares are climbing over 7% in premarket trading after the German business software reported stronger-than-forecast license sales and optimistic annual sales guidance. Deutsche Securities and Jefferies & Co. both raised SAP shares from Hold to Buy.

In Apple (NASDAQ: AAPL) news, W.R. Hambrecht analyst Matthew Kather on Monday raised his price target on Apple stock to $257 a share from $238, saying he expects Apple's stock to outperform the broader tech market due to the the outlook for Macintosh PC and iPhone sales.

That's great for Apple, but how would that affect Research in Motion (NASDAQ: RIMM)? The pressure from the 3G iPhone is worrying investors while rumors on problems RIMM has with its touchscreen phone, which the company has never even officially announced, are also putting pressure on the stock.

Permalink | Email this | Linking Blogs | Comments

Another reason why the economy may not benefit from stimulus checks

Jonathan Berr — 2008-06-25T10:44:00+00:00

Filed under: Target Corp. (TGT), Coach Inc (COH), Economic data, Recession

Some people waiting for their economic stimulus checks may be in for a shock.

According to USA Today, about $2 billion in payments from 1.8 million checks are being confiscated from people who owe child support, student loans and back taxes. Taxpayers get letters from the government explaining why their bank accounts are not being stimulated and so far few have complained, according to a Treasury Department official quoted by the newspaper.

I am all for making sure that children get the financial support they deserve. People also should not be able to dodge student loan payments or tax bills. The government, though, cannot impose a one-size-fits-all solution. For instance, what if someone is laid off and is already behind in their bills? The economic stimulus is supposed to help people in need, right?

Though the economic stimulus checks have helped boost retail sales, investors should keep their expectations in check. Many of the people I know are using their stimulus checks to pay bills, not buy big-screen televisions. A good portion of my stimulus is going right back to Uncle Sam for taxes I need to pay for being self-employed. That's another rant for another time.

Interestingly, makers of luxury goods are responding to economic pressures.

BusinessWeek recently reported that designers such as Stella McCartney and Roberto Cavalli are producing goods for the mass market and Target Corp. (NYSE: TGT) has a stable of designers including Isaac Mizrahi, Cynthia Rowley and Liz Lange. Indeed, Coach Inc. (NYSE: COH) is even offering handbags for as low as $148 and key chains starting at $28 compared with the $1,200 higher-end hand bags. Maybe a fashion-conscious reader can explain to me how a $1,200 bag holds your stuff better than a $148 one.

Perhaps, the name "economic stimulus" is misleading. These payments are giving the economy a tickle when it needs a shock.

Read | Permalink | Email this | Linking Blogs | Comments

Retailers ditch higher-end fashion plans

Zac Bissonnette — 2008-05-19T10:00:00+00:00

Filed under: Marketing and advertising, Coach Inc (COH), Gap Inc (GPS), Liz Claiborne (LIZ)

Shares of companies like Coach (NYSE: COH) were flying high when more people than ever were flocking to waste their money on stuff they couldn't afford.

Right at the top of the market, predictably, all the lower-end retailers thought they'd get into the act. Gap (NYSE: GPS)'s Banana Republic introduced a high-end line, and so did Coldwater Creek (NASDAQ: CWTR), Cache (NASDAQ: CACH) and AnnTaylor (NYSE: ANN). According to the Wall Street Journal (subscription required), the economic downturn gave the companies a strong rebuke. Cache is closing some of its Cache Luxe stores and Coldwater Creek is giving up on its high-end aspirations.

But I don't think it's the economic downturn that doomed these product launches. Luxury clothing is in a tough spot, but it's certainly fared a lot better than upper-middle market companies like Liz Claiborne (NYSE: LIZ) and Coldwater Creek. Rather, I think companies are using a pretty familiar tactic: blame failed strategies on the economy and minimize the impact of tactical errors made by seven-figure executives.

Here's why the strategy failed: taking a brand and raising the quality/price-point is extremely difficult. The reverse is easy, but trying to convince people to pay Coach-like prices for Banana Republic clothing -- even if it's of similar quality -- is a strategy that's destined to fail. Banana Republic has established itself at a certain price point and while people would be thrilled to get the brand at a lower price, most people willing to pay more will want a bona fide luxury label.

Read | Permalink | Email this | Linking Blogs | Comments

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.

Permalink | Email this | Linking Blogs | Comments

Analyst upgrades: Coach, Cerner, Smith International

Eric Buscemi — 2008-04-23T11:47:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Coach Inc (COH)

MOST NOTEWORTHY: Smith International, Cerner and Coach were today's noteworthy upgrades:

JP Morgan upgraded Smith International (NYSE: SII) to Overweight from Neutral citing better risk/reward vs. group, and upside to estimates from Latin America drilling and its deepwater rig fleet. Note that Oppenheimer downgraded shares of SII based on valuation.
Jefferies believes Cerner Corp. (NASDAQ: CERN) in-line results and solid domestic bookings could alleviate the pressure on shares. Shares were raised to Buy from Hold.
Shares of Coach Inc. (NYSE: COH) were raised to Buy from Hold at Citigroup, citing sales stabilization and compelling valuation.

OTHER UPGRADES:

Medco Health (NYSE: MHS) was upgraded at Oppenheimer to Outperform from Perform.
ThinkPanmure raised VMware Inc. (NYSE: VMW) to Buy from Accumulate.
SunTrust Banks (NYSE: STI) was upgraded to Market Perform from Underperform at Keefe Bruyette.

Permalink | Email this | Linking Blogs | Comments

Cramer on BloggingStocks: Coach and US Steel reflect supply and demand

Jim Cramer — 2008-04-23T09:10:00+00:00

Filed under: Earnings reports, Market matters, Coach Inc (COH), U.S. Steel (X), Cramer on BloggingStocks

TheStreet.com's Jim Cramer says the different reactions to these earnings underscore the difference between two good quarters.

You have to contrast a Coach (NYSE: COH) (Cramer's Take) with a US Steel (NYSE: X) (Cramer's Take) to get a sense about where this market is going.

First, the obvious -- there are too many Coach bags and bags of its ilk, and there isn't enough steel. Second, Coach couldn't pass on a price increase to save its life. Every price increase sticks for US Steel.

Third, on the Coach call where does Lew Frankfort -- who is great! -- want to expand? The U.S. Ouch! Worst market in the world. Saturated. No growth. Feeling poor.

Where does US Steel want to expand? Doesn't matter. The demand is so great it's really an issue of shipping, as CSX's (NYSE: CSX) (Cramer's Take) Michael Ward would tell you -- at least he told me last night on "Mad Money."

X has higher input costs across the board, but the demand is so great for its steel it doesn't even matter.

Meanwhile, Coach has a big increase in inventory, explained away in part by a dramatic yen appreciation -- actually makes sense when they walk you through it -- but otherwise explained by a macro environment that is just awful.

Now, here's the tough part: Both companies are buying back stock. Both companies believe in their stock. I ask myself, other than a lower-than-usual multiple, what is there to believe in in Coach? Why would this market come back anytime soon?

US Steel? It's got so much money it is hard-pressed to do anything else with it, although it is expanding. (As opposed to, say, AK Steel (NYSE: AKS) (Cramer's Take), which needs the money to pay down pensions.)

This contrast really is what's at the heart of why one stock goes up on a better-than-expected quarter and one goes down.

Supply and demand. Too many Coach bags, not enough steel plate.

Random musings: Hosting "Squawk" this morning, check it out.

RELATED LINKS:

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

Permalink | Email this | Linking Blogs | Comments

Best stock performers, next hot sectors & credit scoring misconceptions - Today in Money 3/29

Allan Halprin — 2008-03-28T08:50:00+00:00

Filed under: Google (GOOG), Cisco Systems (CSCO), Starbucks (SBUX), Penney (J.C.) (JCP), Money and Finance Today, Coach Inc (COH), Verizon Communications (VZ), KB HOME (KBH), Gilead Sciences (GILD), Bear Stearns Cos (BSC)

In the News:

· Bear Stearns Chairman James Cayne Unloads All His Company Stock

· Cisco Appears to Be Bracing for a Downturn

· Flat Consumer Spending Calms Inflation

· KB Home Is Latest Builder To Post Quarterly Loss

· Wyeth Cuts US Sales Team by 1,200

· Starbucks Sued for Third Time Over Tips

· J.C. Penney Cuts Outlook

· In Kenya, Obama (Beer) Wins Big

Best Performers of 2008
The 12th annual BusinessWeek 50 spotlights the 50 best performing companies in the S&P and topping this year's list is retailer Coach. Rounding out the top five are Gilead Sciences, Allegheny Technologies, Verizon, and Questar. Last year's No.1 company, Google, dropped to No.34 on the list - shares are down almost 40% from their high of 747 last November.
The BusinessWeek 50 - BusinessWeek

The Next Hot Stock Sectors
Amid the volatility, BusinessWeek's Gene Marcial talks with stockpicking pros about the market sectors they see leading the next major advance.
Stocks: The Next Hot Sectors

Good Time to Sell Your Gold Jewelry, Coins, Fillings?
Over the last two years, gold prices have risen about 70 percent. Here's what you need to know to get the most money from what you have to sell.
Selling your gold jewelry, coins, fillings -Bankrate.com

Hurdles in Home Financing Today
Getting a mortgage or refinancing one is now a Herculean task. Here's what to expect.
Seeking a Mortgage in Today's Market Is Not Easy - SmartMoney.com

Help! I'm Buried in Debt
Five dos and five don'ts on tackling debt problems.
Your best investment? Paying off that debt - USATODAY.com

Credit Scoring Misconceptions
Want to close those unused credit cards in your drawer? A FICO expert discusses popular misunderstandings about closing accounts and department-store cards versus bank credit cards.
Closing credit card dings credit score -Bankrate.com

8 Last-Minute Ways to Save for Vacation
In a perfect world, we'd all have fully funded vacation accounts to pay for our annual family getaways. The reality: Most of us are just now starting to think about this summer's vacation. Here are some fast-track ways to save for your big trip.
8 last-minute ways to save for vacation-Bankrate.com

Great Yard Makeovers
Save time and money without sacrificing a beautiful yard.
Create a Greener Landscape - Kiplinger.com
In Pictures: Yard Transformations
Also: Smarter Ways to Water Your Lawn

Permalink | Email this | Linking Blogs | Comments

Analyst downgrades: Telecom Services, Watsco, Key Corp.

Eric Buscemi — 2008-02-20T12:00:00+00:00

Filed under: Analyst upgrades and downgrades, AT and T (T), Coach Inc (COH), Verizon Communications (VZ)

MOST NOTEWORTHY: The Telecom Services sector, Watsco and Key Corp were today's noteworthy downgrades:

Credit Suisse downgraded the Telecom Services sector to Market Weight from Overweight as they believe trends could weaken in 2008 given increasing wireless competition and the difficult economic environment. The broker downgraded Verizon (NYSE: VZ) and AT&T Corp. (NYSE: T) to Neutral from Outperform in conjunction with the sector downgrade.
Oppenheimer downgraded Watsco (NYSE: WSO) to Perform from Outperform citing lack of near-term catalysts, further weakening in its core business, and weak 2008 earnings guidance.
RBC Capital lowered Key Corp. (NYSE: KEY) to Underperform from Sector Perform citing further credit deterioration following the company's outlook.

OTHER DOWNGRADES:

Thomas Weisel lowered Coach (NYSE: COH) to to Market Weight from Overweight.
Citigroup downgraded PPG Industries (NYSE: PPG) to Hold from Buy.
BNP Paribas downgraded the China Telecom sector to Neutral from Overweight.

Permalink | Email this | Linking Blogs | Comments

What would Buffett buy?, 25 best mutual funds & Uncle Sam tax scam - Today in Money - 2/5

Allan Halprin — 2008-02-05T09:26:00+00:00

Filed under: Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Cisco Systems (CSCO), Time Warner (TWX), Coca-Cola (KO), Toyota Motor Corp. (TM), Schlumberger Limited (SLB), Money and Finance Today, Altria Group (MO), Avon Products (AVP), Coach Inc (COH), News Corp'B' (NWS), QUALCOMM Inc (QCOM), UAL Corp (UAUA), Rio Tinto plc ADS (RTP), China Mobile Limited (CHL)

In the News:

· Service Sector Data Plunges to 41.9% in January; Second Weakest on Record

· Microsoft Bid Backs Yahoo Into a Corner

· Microsoft CEO Touts Benefits of Yahoo Deal

· Searching for Value at Yahoo

· Who Would Want AOL Now?

· Toyota Profit Rises 7.5% for Year

· News Corp. Earnings Rise; Murdoch Not Considering Bid for Yahoo

· Avon Profit Down on Restructuring Costs

· Whirlpool's Maytag Buy Pays Off in 4Q

· United Airlines $25 Fee for 2nd Checked Bag

· Ben & Jerry's Fights to Keep 'Hormone Free' Label

· Super Bowl 2nd Most Watch Show of All-Time Behind M*A*S*H Finale

What Would Buffett Buy?
S&P's latest screen tracking the Berkshire bigwig's investing criteria uncovers 60 attractive names. Some of the stocks include 3M, Altera, Altria, Apple, China Mobile, Cisco, Coach, Coca-Cola, IGT, Microsoft, Qualcomm, Rio Tinto and Schlumberger.
What Would Buffett Buy? List: 60 Stocks That Pass Buffett Screen

Made in the USA? The Truth Behind Labels
Labeling rules can be daunting. Here is the real truth behind labels including claims from car, home-product, and food manufacturers.
ConsumerReports.org - Made in the U.S.: The truth behind labels Product Origin

Best American Cities for Couples
With rents in many cities skyrocketing, men and women marrying later and a divorce rate for first-time marriages that hovers at about 45%, it's no wonder more American couples are deciding to shack up. But where are the best places to live? Topping the list is Dallas, Houston, Minneapolis, Denver and Austin.
Best Cities For Couples - Forbes.com

Best Mutual Funds
Looking for sure bets in a volatile market? These 25 no-load funds are Kiplinger's top picks for building a market-beating portfolio. 18 are returning favorites and 7 are brand new to the list.
The 25 Best Mutual Funds - Kiplinger.com New Funds and Drop-Offs to the List

Food Fight
Which of these items has fewer calories and less fat? 3 McDonald's Big Mac sandwiches or 1 Uno deep-dish Shroom individual pizza? If you said 3 Big Mac's you are correct. 3 Big Macs have 1,620 calories and 87g of fat while 1 Uno's individual pizza has a whooping 2,070 calories and 159g of fat. This is just one of 10 comparisons. Food from Outback, Dunkin Donuts, Krispy Kreme, Ruby Tuesday, Red Lobster, Starbucks and more are put to the test.
ConsumerReports.org - Calorie comparison

The Uncle Sam Tax Scam
Here are the three latest scams the IRS is alerting consumers about this year.
Three Tax Scams to Keep an Eye Out For | SmartMoney.com

Best Fabric Softeners
Conventional wisdom advises using fabric-softener sheets to lessen static cling, but Consumer Reports found that overall, liquids reduced the static charge in a load of synthetic clothing slightly better than sheets did. Ttests of 12 liquids, eight sheets, a dryer ball and a reusable dryer cloth revealed one excellent product, Ultra Gain Joyful Expressions liquid.
ConsumerReports.org - Fabric softeners: Tests, recommendations Ratings: Best Softeners

Secrets of a Superfruit
Last year saw the launch of more than 400 pomegranate products, from skin cream to gumdrops, and the number of Americans buying fresh pomegranates has quadrupled since 2002. Here is the real reason that pomegranate has become the "it" flavor of the fruit world.
The Truth Behind the Pomegranate Craze | SmartMoney.com

Permalink | Email this | Linking Blogs | Comments

Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others

Trey Thoelcke — 2008-01-26T08:40:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), Apple Inc (AAPL), Caterpillar (CAT), Nokia Corp. (NOK), Johnson and Johnson (JNJ), Abbott Laboratories (ABT), Coach Inc (COH), ConocoPhillips (COP), Southwest Airlines (LUV), Sun Microsystems (JAVA), Nucor Corp (NUE), QUALCOMM Inc (QCOM), Amgen Inc (AMGN), Texas Instruments (TXN), Eaton Corp (ETN)

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

Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

Nucor Corp. (NYSE: NUE) easily beat analysts' expectations for the fourth quarter.
PetMed Express Inc. (NASDAQ: PETS) profits soared as more people buy pet meds online.
Qualcomm Inc. (NASDAQ: QCOM) reported a solid first quarter on strong demand for its chips.
Skyworks Solutions Inc. (NASDAQ: SWKS) beat expectations and offered revised guidance.
Southwest Airlines Co. (NYSE: LUV) profit nearly doubled despite weather and operational challenges.
Sun Microsystems Inc. (NASDAQ: JAVA) net income soared despite stiff competition.
Texas Instruments Inc. (NYSE: TXN) beat fourth quarter earnings estimates (see transcript).
Xerox Corp. (NYSE: XRX) profit soared on strong sales and it announced a share buyback plan.
Xilinx Inc. (NASDAQ: XLNX) beat expectations due to strong demand for its new products.

See additional earnings highlights.

Also, Jim Cramer's advice for what earnings should mean in your buy or sell decision. Both Peter Cohan and Georges Yared look at the part earnings have played in this week's volatility. And Aaron Katsman is bullish on tech stocks.

Upcoming results to watch for include Verizon (NYSE: VZ), Halliburton (NYSE: HAL), American Express (NYSE: AXP), McDonald's (NYSE: MCD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Starbucks (NASDAQ: SBUX), Altria (NYSE: MO), Boeing (NYSE: BA), United Parcel Service (NYSE: UPS), Procter & Gamble (NYSE: PG), Google (NASDAQ: GOOG) and Exxon Mobil (NYSE: XOM).

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Coach (COH) soars on earnings

Brent Archer — 2008-01-23T12:27:00+00:00

Filed under: Major movement, Earnings reports, Good news, Coach Inc (COH), Options, Technical Analysis

Coach Inc. (NYSE: COH) shares are rising today after the company reported fiscal second-quarter earnings of $252.3 million, or 69 cents per share, above analysts' estimates of 68 cents per share. The company said earnings were helped by an 18% rise in direct-to-consumer sales, as well as a 17.7% rise in factory same-store sales. If you think that the company 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 COH.

After hitting a one-year high of $54.00 in April, the stock hit a one-year low of $24.09 earlier this month. COH opened this morning at $27.37. So far today the stock has hit a low of $25.76 and a high of $30.00. As of 10:35, COH is trading at $29.36, up $1.87 (6.8%). The chart for COH looks bearish but improving, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider a March bull-put credit spread below the $22.50 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 an 8.7% return in just two months as long as COH is above $22.50 at March expiration. Coach would have to fall by more than 23% before we would start to lose money.

COH hasn't been below $23 at all in the past year and has shown support around $24.50 recently. This trade could be risky if the weak economy drags retail stocks lower over the coming months, but even if that happens, this position could be protected by the support the stock might from the reaction to this morning's earnings.

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 COH.

Permalink | Email this | Linking Blogs | Comments

Prada to push ahead with June IPO -- bad timing?

Zac Bissonnette — 2008-01-17T13:45:00+00:00

Filed under: Tiffany and Co (TIF), Coach Inc (COH), Initial public offerings

With luxury stocks off to a horrific start to the year -- Coach (NYSE: COH) and Tiffany (NYSE: TIF) already down in the neighborhood of 20% -- this might seem like a strange time for Prada, one of the world's top high-end fashion houses to take itself public.

But according to the Wall Street Journal, Prada's IPO is still scheduled [subscription required] for June. Miuccia Prada and her husband, Prada CEO Patrizio Bertelli, own 95% of the company, and had previously said that market conditions would be a factor in the timing of the IPO.

Assuming that Prada's IPO plans are indeed unfazed by the luxury market bloodshed, there are two possible scenarios:

Prada plans to go ahead with a June IPO because it believes the market will be kinder to luxury goods stocks by then, which would be bullish for the industry now.
Prada plans to do the IPO in June because raising money after that will only be more difficult.

Remember -- the insiders at Prada have a better read on this market than just about anyone, and the IPO schedule/details are an important barometer of the industry's health.

Read | Permalink | Email this | Linking Blogs | Comments

Nelson Peltz ups stake in Tiffany -- are luxury stocks a bargain?

Zac Bissonnette — 2008-01-17T12:22:00+00:00

Filed under: SEC filings, Tiffany and Co (TIF), Coach Inc (COH), Economic data, Housing

With economic worries sending luxury goods makers like Coach Inc. (NYSE: COH) and Tiffany & Co. (NYSE: TIF) well off their highs, at least one super-investor who isn't afraid to go against the conventional wisdom is taking notice.

Nelson Peltz and his Trian funds have upped their stake in Tiffany from 5.6% to 7.9% amid continued weakness in the company's share price -- the stock is already down 20% year to date.

According to the Wall Street Journal [subscription], Peltz has previously said he isn't seeking a seat on the company's board, but wouldn't rule out the possibility of taking an activist stance somewhere down the road. Another big drop could prod him to step in and try to make something happen.

Tiffany recently reported a weak holiday sales period, a strong indication that the economic malaise that started in subprime may be carrying over to more upscale consumers. In recent years, Tiffany's and other luxury goods makers have seen their markets expand to include more luxury aspirational customers. Dependence on less wealthy consumers for sales growth may be making the luxury goods sector less immune to economic woes than it has been historically.

Read | Permalink | Email this | Linking Blogs | Comments