Investopedia: Will eBay's Numbers Match Its Business?

EBay (Nasdaq:EBAY) is a strange business in many respects. Along with Amazon (Nasdaq:AMZN), eBay has been out there almost since the beginning of the internet as a public phenomenon, and it has managed to avoid the malaise and irrelevance that has withered AOL (NYSE:AOL), Yahoo (Nasdaq:YHOO), and a host of businesses that have either taken low-ball bids or gone out of business altogether.


And yet, there are some oddities to eBay's numbers. Though eBay basically dominates online auctions and has built an impressive business out of PayPal, the company's returns on invested capital are not all that spectacular and the company's free cash flow margin has been in prolonged decline. The question, then, may not be so much about eBay's future growth prospects as it is about how much of that growth will ultimately benefit shareholders.

Satisfactory Third Quarter Results
All in all, eBay's third quarter report was fine. Reported revenue rose 32%, while organic revenue growth was more on the order of 18%. The company's marketplaces business saw revenue growth of 17%, while PayPal revenue grew 32% on a 14% increase in registered accounts and 31% increase in net payment volume.


Read more here:
http://stocks.investopedia.com/stock-analysis/2011/Will-eBays-Numbers-Match-Its-Business-EBAY-AMZN-V-MA-PAY-MSFT-IBM1021.aspx

Investopedia: How Did Intel Do This?

The word "surprise" is a given whenever it's time to talk about earnings season, but Intel (Nasdaq:INTC) went above and beyond this quarter. Is Intel's robust growth, in spite of sluggish shipment data from leading PC makers, a sign that U.S. computer companies are more significant than ever before, is it a sign that Intel is gaining shares or is it a sign that dangerous levels of inventory may be building up in the channel? While Intel looks too cheap, no matter what the answer may be, the degree of volatility in this stock may hinge on the answer.

A Surprising Third Quarter  

To be fair, it's not as though Intel left the Street thunderstruck; revenue rose 28% from last year (and almost 9% from last quarter), and that was about 2% higher than the average analyst estimate. PC Group's revenue rose almost 22% this quarter with strong double-digit sequential growth in the notebook unit. The server group was no slouch either, with 15% growth, and the company's acquisitions of McAfee and Infineon's wireless business seem to be paying off.

Click the link for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/How-Did-Intel-Do-This-INTC-AMD-DELL-HPQ-MU-SNDK-NVDA1024.aspx

Investopedia: EMC - The Best Company In The Best Business

Tech is cyclical in so many ways. For starters, there is the impact of the overall economy - when times are tough, companies pull back on non-essential IT. There is also a cyclical aspect insofar as the hot space or sector. More experienced investors almost certainly remember when stocks like Cisco (Nasdaq:CSCO), Oracle (Nasdaq:ORCL) or Applied Materials (Nasdaq:AMAT) were the darlings of darlings. More recently, networking names like F5 (Nasdaq:FFIV) and cloud computing/virtualization plays like VMware (NYSE:VMW) have gotten the love.


Why does any of this matter? Well, EMC (NYSE:EMC) is the best of breed when it comes to "Big Data" storage, and data storage is still looking like one of the strongest segments of the tech space.

A Solid Third Quarter
A lot of nervousness has surrounded names like EMC and IBM (NYSE:IBM) going into this reporting cycle, as investors have worried whether companies are pulling back on their IT spending. To that end, EMC's quarter may not have been perfect, but it was good enough to answer the loudest bears.

Please continue here:
http://stocks.investopedia.com/stock-analysis/2011/EMC---The-Best-Company-In-The-Best-Business-EMC-ORCL-IBM-VMW-NTAP-DELL-HPQ1020.aspx

Investopedia: Coca-Cola - A Great Company, An Iffy Stock

All of the paeans to Coca-Cola (NYSE:KO) have some basis in truth. Coca-Cola is indeed a remarkable company and a living case study in the value of strong brands and knowing the customer's tastes and expectations. But Coca-Cola is not necessarily the safe stock that everyone assumes it to be. While Coca-Cola will certainly be around for decades to come, paying too much for even a great company's stock can erode a lot of the safety that is supposed to go with the strategy. 

A Respectable Third Quarter  
Coca-Cola basically did as analysts expected it would in the third quarter. Reported revenue rose 45% this quarter, with the overwhelming majority of that "growth" coming from the addition of Coca-Cola Enterprises (CCE). Global case volume growth was about 4% and factor in some modest price increase, Coca-Cola's organic growth rate looks like it was in the range of 6-8%. Encouragingly, while growth in North American remains sluggish (not unlike what rival PepsiCo (NYSE:PEP) has reported), emerging market growth is pretty healthy and especially good in Latin America.

Please click the link to read more:
http://stocks.investopedia.com/stock-analysis/2011/Coca-Cola-A-Great-Company-An-Iffy-Stock-KO-PEP-NSRGY-CCK-COT-BUD-TAP1020.aspx

Investopedia: Lukewarm Performance At IBM

IBM (NYSE:IBM) can be a frustrating stock to evaluate. On one hand, it really is a tech bellweather with its hands in many different cookie jars. On the other hand, in a tech word that craves growth over almost everything else, IBM's sheer size works against it. And then, of course, there is the quality question. It has been quite a while since analysts have had the same sort of existential worries about IBM that currently plague former tech darlings like Hewlett-Packard (NYSE:HPQ), Dell (Nasdaq:DELL) and Cisco (Nasdaq:CSCO). 

A Somewhat Disappointing Third Quarter  
IBM missed the average analyst sales estimate and that's all some tech traders will care about when it comes to evaluating this quarter. It's true, year-on-year growth of 8% (3% in constant currency) is not great, and the 2% sequential decline is also concerning. 

Read more via the link below:
http://stocks.investopedia.com/stock-analysis/2011/Lukewarm-Performance-At-IBM-IBM-HPQ-DELL-CSCO-EMC-ORCL-MSFT1020.aspx

Seeking Alpha: Boston Scientific Is Not A Safe Turnaround Bet

Another quarter and another disappointment for Boston Scientific (BSX). With a new caretaker CEO at the reins, but only for a year, it an open question as to whether investors can reasonably expect any near-term progress. While there are some bright spots deep in the pipeline, it is going to take many years for them to bear fruit, and BSX will find itself having to battle for share amidst established competition. All in all, this is an investment that requires a great deal of faith - and hope and faith are seldom great partners to have in an investment.

Another Disappointing Quarter
Boston Scientific reported that sales declined 6% on a constant currency basis, with core revenue (that is, excluding divested lines) down 3%. The company's interventional cardiology segment (which includes drug-coated stents) saw revenue fall 4%, while the CRM business (which includes pacemakers and ICDs) fell 12%. Neuromodulation (up 6%) and peripheral intervention (up 4%) weren't bad, but endoscopy (up 6%) is about as close to good news as there was for the quarter. But that business contributes only about 16% of total revenue.


Read the full article here:
Boston Scientific Is Not A Safe Turnaround Bet

Seeking Alpha: Intuitive Surgical - A Good Bet For Aggressive Growth Stock Investors

Surgical robotics company Intuitive Surgical (Nasdaq: ISRG) is making a habit of breaking and rewriting the rules about how medical technology stocks are supposed to work. Although equipment companies like Stryker (NYSE: SYK) have had the occasional strong quarter, this has been a tough market for capital equipment and yet, Intuitive is doing fine. The third quarter is supposed to be a weak quarter for procedures in general, especially in this low-volume market, and yet Intuitive seems to be building momentum.

Not surprisingly, this is also a stock that seems immune to what constitutes typical or “appropriate” valuation on a growing med-tech name.

A Stellar Third Quarter
Intuitive had an amazing third quarter, with 30% overall revenue growth. System sales growth of 25% was quite impressive in its own right, and particularly with a roughly 50% acceleration in the growth rate of net new robot placements. Perhaps even more impressive, though, was the 38% growth in instrument revenue and the 30% procedure growth. In a market environment where Johnson & Johnson (NYSE: JNJ) and Bard (NYSE: BCR) are largely scraping to get volume growth and even a share gainer like Covidien (NYSE: COV) is having some challenges, this performance is beyond exceptional.


Read the full piece here:
Intuitive Surgical: A Good Bet For Aggressive Growth Stock Investors

Seeking Alpha: Abbott May Be Doing The Right Thing At The Wrong Time

Health care conglomerate Abbott Labs (ABT) certainly knows how to bury a lede. With the tumult in the wake of the company's announced split in two, the company's quarterly earnings went by almost unnoticed. Perhaps that's just as well – too much is made of quarter-by-quarter performance, anyway. When it comes to this transformative move, though, investors might want to ask if this is really the right strategic move at this point in time.

Abbott To Humira – Thanks For The Cash, Now Get Out
Abbott will be splitting into two companies in a tax-free spin-off transaction. One company will continue Abbott's branded pharmaceutical business, while the other company (the one that will continue on as “Abbott”) will take everything else, including the branded generics business.

The branded drug business currently represents about 45% of the company's total sales, but over 60% of pre-tax profits. Of that, Humira (Abbott's incredibly successful monoclonal antibody for autoimmune diseases) is fully half. Unfortunately, Humira is getting a little long in the tooth and analysts have been incessantly worried about its future growth in the face of potential competition from compounds from Pfizer (PFE), Johnson & Johnson (JNJ), and Roche (RHHBY.PK), as well as threat of biosimilars (basically generic forms of biologic drugs).

Read the full piece at Seeking Alpha:
Abbott May Be Doing The Right Thing At The Wrong Time

Investopedia: J.B. Hunt - Doing More With Less Trucking

It isn't a good sign for the truckload freight industry, when a company like J.B. Hunt (Nasdaq:JBHT) is doing better largely by getting away from the traditional trucking business, as fast as it can. While there will always be a place for trucking in the U.S. transportation system, this company is betting its future prosperity on less traditional operations, like intermodal and customized service offerings. 

Mixed Third Quarter Results  
J.B. Hunt's third quarter results were not bad, but they also were not as good as they may appear, at first look. Revenue rose 19%, with more than 40% of that growth coming from fuel surcharges. Growth was led by the intermodal segment (the company's largest), where revenue rose 24% on a 15% overall increase in load volume. The dedicated services and integrated solutions segments grew nicely, as well, with 16 and 21% growth, respectively. The truck segment was the laggard, growing just 2% on a reported basis, but actually shrinking 5% net of surcharges, on a 7% decline in tractors on the road.

To read more, please follow this link:
http://stocks.investopedia.com/stock-analysis/2011/J.B.-Hunt---Doing-More-With-Less-Trucking-JBHT-HUBG-CHRW-ODFL-WERN-BRK-A-NSC1020.aspx

Investopedia: Citigroup On The Mend ... Slowly

It's just a fact of life that it's easier and faster to destroy than it is to rebuild. To that end, Citigroup (NYSE:C) has certainly been a frustrating stock to hold this year as the stock had been nearly cut in half before a recent rally. While this huge bank's third quarter earnings continue to point to progress, the reality is that Citigroup is still a long way from normal, and shareholders have to be content with more short-term disappointment if they want to see the long-term value play out.

Decent Third Quarter Results  
Although analysts had been marking down their expectations, going into this quarter, Citi didn't do too badly. Adjusted core revenue fell 2% on a sequential basis, as modest growth in regional consumer banking (2%) and decent growth in transaction services (7%) was offset by declines in securities and banking 12%. For whatever reason, it helps shareholders, this performance is likely to be the rule for other large banks like Bank of America (NYSE:BAC) (BofA) as well. 

To read more, click below: 
http://stocks.investopedia.com/stock-analysis/2011/Citigroup-On-The-Mend--Slowly-C-BAC-USB-WFC-SHG-BSBR-BAP1020.aspx

Seeking Alpha: Powerwave May Fade To Black

Wireless equipment maker Powerwave (PWAV) has given its investors quite the thrill ride over the last four years, but the latest dive may have investors and analysts wondering if this company can ever achieve a sustainable base of business. Bad quarters happen to every company eventually, but very few established companies miss their revenue target by 50% and investors should ask themselves whether the sizable return potential here is still worth the ongoing risk and volatility.

A Terrible Third Quarter
After the close Tuesday, Powerwave announced that it was going to report a horrible third quarter result. Citing significant slowdowns at AT&T (T) and T-Mobile and disruptions in the Mideast and North Africa tied to the political upheavals, management announced that revenue would come between $75 million and $79 million – more than 50% shy of the average analyst estimate of $168 million.

Read the full piece here:
Powerwave May Be About To Fade To Black

Seeking Alpha: Bad Management Ails Johnson & Johnson; New Drugs May Offer A Boost

This has been rough stretch for one of the bluest of the blue chip stocks – health care giant Johnson & Johnson (JNJ). A generally rotten U.S. healthcare market has certainly hampered results, but management has fired a few rounds into its own feet with extreme product quality issues in the consumer care business (leading to numerous recalls) and unimpressive capital allocation and R&D decisions in the device business. All of that said, though, today's poor performance may be prologue to a better day for patient investors.

Low-Quality Third Quarter
There were only a very few bright spots in this quarter, though reported results did not deviate much from analyst forecasts. Revenue looked alright at 7%, but organic constant currency growth was under 3%, and JNJ has become dependent on foreign markets for its growth (international growth clocked in at over 8% this quarter).


To read the full piece, please click this link:
Bad Management Ails Johnson & Johnson; New Drugs May Offer A Boost

Investopedia: Wells Fargo Looking Better As Time Goes By

Wall Street is certainly down on banks once again. Given how weak the economy is and how much debris is still left to clean up from the housing crunch, maybe it's not so surprising. Nevertheless, Wells Fargo (NYSE:WFC) is looking more and more like a bargain as this goes on. The company still has to clean up its balance sheet and the Wachovia integration is going to take time, but this looks like a quality bank that is trading well below its true long run potential. 

A Disappointing Third Quarter 
Although investors seemed reasonably happy with the results posted by Citigroup (NYSE:C), the news was not as encouraging for Wells Fargo. The company actually missed on the top line, and the bottom line results were not so impressive either. Revenue fell 4% sequentially, with net interest income down 5% and non-interest income down 7%. Wells Fargo actually did pretty well on controlling operating expenses (down 5%), but that's not going to encourage investors enough.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Wells-Fargo-Looking-Better-As-Time-Goes-By-WFC-C-BAC-RF-RY-STI-UBS1019.aspx

Investopedia: Mattel - Steady, But Not On Sale

There are not too many companies out there that sell products that have been popular across multiple generations, but Mattel (Nasdaq:MAT) is one of them. In many respects, Mattel looks like an excellent company - it offers beloved brands, a strong return on capital and respectable margins. The question for shareholders, though, is whether management is willing to take the sort of risks that will be necessary to really improve growth, and make this more than a steady dividend play.

Solid Third Quarter Results  
On the whole, Mattel delivered neither a positive surprise nor a disappointment for the third quarter. Revenue rose about 9% as reported, with 7% growth when measured in constant currency. Domestic growth was a bit softer than international (6% versus 8%), but balanced all the same. Although the company's Fisher-Price business saw a little revenue erosion on a constant currency basis, the Barbie franchise saw 13% growth.


Read more here:
http://stocks.investopedia.com/stock-analysis/2011/Mattel--Steady-But-Not-On-Sale-MAT-DIS-TWX-HAS-JAKK1019.aspx

Investopedia: Statoil Buys Into Bakken

By most standards, Norway's Statoil (NYSE:STO) is a quality name in the world of major energy companies. Unfortunately for its shareholders, the company's stock price has been bedeviled by worries regarding the company's production volumes, reserve growth and dependence on Norway's offshore energy fields. With Monday's announcement that the company is acquiring Bakken specialist Brigham Exploration (Nasdaq:BEXP), Statoil management is making a solid argument that the company is not sleeping on opportunities to leverage its balance sheet into solid reserve growth.


The Terms
Statoil and Brigham announced that the companies had reached an agreement whereby Statoil will acquire Brigham for $36.50 per share in cash, for a total enterprise deal value of $4.7 billion. That price translates into a roughly 20% premium to Friday's close.


Read the full piece at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Statoil-Buys-Into-Bakken-STO-BEXP-BHP-CHK-WLL-CRED-CLR1018.aspx

Seeking Alpha: TIme To Board The ICU Medical Roller Coaster

Prior to the Great Recession, healthcare enjoyed a somewhat inflated reputation for its steady-eddy revenue and earnings. Since then, investors have learned that patient visit counts and hospital capital budgets can create quite a bit of volatility – look no further than the muted performance at major device companies like Medtronic (NYSE: MDT), Johnson & Johnson (NYSE: JNJ), or Bard (NYSE: BCR).

And then there's ICU Medical (Nasdaq: ICUI). Flying in the face of conventional rules about how medical device companies are supposed to act, this has often been a volatile performer in terms of its reported results and the long-term stock action reflects that. With financial performance looking a little haggard, but the company's competitive position still fairly strong, this may well be one of those periodic opportunities to pick up shares in an oft-overlooked small-cap med-tech player.

To read more, follow this link:
Time To Board The ICU Medical Roller Coaster

Seeking Alpha: Lincare - Unreasonably Cheap For A Good Reason

On first blush, Lincare LNCR) would look like one of those great undervalued GARP companies that famous investors like Peter Lynch gush about in their memoirs. The thing is, while Lincare may well have a lot of value in it, that value is a little like a bag of gold resting atop a pedestal … in a minefield … surrounded by razorwire … and on fire. Lincare management has indeed done a great job over the years of running this business, but it seems like government price cuts are going to be an unrelenting drag on the company.

A Pretty Mixed Third Quarter
Lincare's third quarter highlights some of the challenges that the company has to deal with now and in the near future. Reported revenue growth of over 13% sounds great, as does the little note that growth would have been nearly 16% without the impact of negative Medicare changes. Unfortunately, the organic growth was more on the order of 6% and that growth was not especially profitable.

Continue on here:
Lincare: Unreasonably Cheap For A Good Reason

Seeking Alpha: VMware Reports Earnings, So Cue The Next Fight

There are certain companies where the valuations and institutional investor love-fests seem to just drive some people to distraction. Salesforce.com (NYSE: CRM) is certainly one, and VMware (NYSE: VMW) is another. Whenever these companies report, bears bring out the long knives and do their level best to flense the company and the stock. While VMware's valuation is indeed rich by almost any measurement you name, the fact remains that VMware delivers oodles of growth and institutional tech investors lust for growth above all else. 

Third Quarter Results – Is Good Good Enough?
VMware reported 32% year-on-year growth and 2% sequential growth – excellent results when compared with software giants like IBM (NYSE: IBM) and Oracle (Nasdaq: ORCL) and quite strong relative to smaller growth stories like Red Hat (NYSE: RHT). Of course, this being VMware there has to be a “but” to it.

To read more, click the link:
VMware Reports Earnings, So Cue The Next Fight

Investopedia: Industrial Slowdown? Not At Fastenal

If the economy really is teetering into a recession again, it is despite relatively encouraging rail traffic numbers and fairly strong sales trends at industrial suppliers. While Fastenal (Nasdaq:FAST) is unquestionably tied to trends in GDP and industrial activity, investors who overlook the consolidation and market share growth potential of this name do so at their own risk.

Earnings Still Growing at a Fast Pace  
Fastenal has more than one wind at its back, and the company has translated this into very solid growth during this economic recovery. For the third quarter, revenue grew 20% and slightly exceeded analyst expectations - a performance all the more impressive as the company routinely reports monthly sales figures. That said, there was some growth deceleration in September (growth was below 19% year on year), so investors should assume that analysts on the wrong side of this story will try to use that tidbit to validate continued pessimism.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Industrial-Slowdown-Not-At-Fastenal-FAST-GWW-HD-WCC-AXE-HWCC-DXPE1017.aspx

Investopedia: It's Not Geting Any Easier For Google

Companies spend a lot of their corporate adolescence convincing investors that they can carve out a business and take on the big dogs. If they succeed, their reward is a new round of questions about whether or not the company can maintain that momentum and find new markets and opportunities that offer similar margins and returns. 


That, then, would seem to be the challenge for Google (Nasdaq:GOOG). No sane investor questions what the company has accomplished in taking on the likes of Yahoo! (Nasdaq:YHOO), AOL (NYSE:AOL), Microsoft (Nasdaq:MSFT) and Apple (Nasdaq:AAPL), but now the stock sentiment seems pregnant with doubts as to whether the company can find new business on par with the old.

A Mostly Encouraging Third Quarter
Google's third quarter results offer both good and bad news on that score. On the positive side, net revenue rose 37% (gross revenue rose 33%), and revenue from Google-owned sites was up 39 and 15%, sequentially. Mobile also continues to be strong grower, though still a relatively small contributor.


To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/Its-Not-Getting-Any-Easier-For-Google-GOOG-YHOO-MSFT-AOL-AAPL-AMZN-NFLX1017.aspx

Seeking Alpha: Is A Stronger FINRA A Good Thing For Investors?

Regular investors don't always seem to know who's minding the store when it comes to supervising brokers, brokerages, and asset managers. While the Securities and Exchange Commission (SEC) gets a great deal of attention, and arguably has the most power, there are a host of other agencies and associations that play significant regulatory roles. Now one of the largest of them, FINRA, is reaching for even more power and authority. While more regulation of such an aggressive industry as financial services may seem logical to some, particularly after the abuses of recent years, FINRA's track record should give investors a moment or two of pause.

What FINRA Is
FINRA, short for Financial Industry Regulatory Authority, came into being in 2007 with the merger of the National Association of Securities Dealers (NASD) and the New York Stock Exchange's regulatory arm. Though many investors assume that FINRA is a government body, it is not – it is a private corporation that regulates financial services firms that deal with the public (in other words, brokerages and registered representatives like brokers and sell-side analysts).


To read the full column, please follow this link:
Is A Stronger FINRA A Good Thing For Investors?

Seeking Alpha: First Horizon Getting No Benefit Of The Doubt

Like so many other banks, Tennessee’s First Horizon (FHN) committed ample sins during the housing boom, and the path of penance has been long and difficult. While there are still some financially significant potential liabilities left here, patient deep-value investors should give this small regional bank a serious look.


Q3 Was Not *That* Bad
It is hard to say that First Horizon had a good quarter, but the Street has seemingly been looking for problems here for a while. Consequently, it would be par for the course if the emphasis was on what was wrong with the quarter.

To read more, click the link below:
First Horizon Getting No Benefit Of The Doubt

Seeking Alpha: Waiting For Halliburton To Wash Out

Investors looking for an example of how short-term thinking dominates the equity markets these days do not have to go much past the energy sector. There are still plenty of arguments over what “Peak Oil” is supposed to mean, but hardly anybody thinks that long-term oil and natural gas prices are going to substantially lower than today. And yet, nervousness about the near-term economic outlook and short-term oil price declines as investors leery of even well-established service names like Halliburton (HAL).

Okay Results Fail To Impress
This is a market that wants dramatic outperformance and strong upward revisions from management, and Halliburton didn't deliver. Consequently, the fact that revenue was up about 10% sequentially and still a bit stronger that the average analyst guess just isn't going to cut it – particularly when management talked about an increasingly competitive international pricing environment and delays in key growth markets like Iraq and Angola.

Read more at this link:
Waiting For Halliburton To Wash Out

Seeking Alpha: Roche May Be Hoping That Anadys Is Cheap Insurance

There is no question that hepatitis C treatments are garnering a great deal of attention from investors in biotech and pharmaceuticals these days. Investors seemingly can't wait to hear the latest clinical data from Pharmasset (VRUS) or the latest prescription data on Vertex's (VRTX) Incivek. So leave it to Roche (RHHBY.PK) then to draw everybody's attention back to a small hepatitis C drug developer that has been largely forgotten by many investors.

A Surprising Deal
Analysts and investors have been waiting for quite a while to see Anadys Pharmaceuticals (ANDS) either find a partner for setrobuvir and ANA773 or find a buyer for the entire company. As often seems to be case, few had Roche on the list of most likely partners, but it is Roche that has stepped up to buy the entire company.

Please read the full story at the link below:
Roche May Be Hoping That Anadys Is Cheap Insurance

Investopedia: Liz Claiborne Starts Over

Sometimes press releases can understate just what's actually going on. That certainly seems to be the case with Liz Claiborne (NYSE:LIZ). While this well-known women's clothing designer and marketer talked about "transactions" in the headline of its recent release, the reality is that the company largely sold itself and is basically going to cease to exist as Liz Claiborne.

From Distribution to Ownership 

Liz Claiborne and J.C. Penney (NYSE:JCP) have had a longstanding relationship, and JCP was already the exclusive license partner for the Liz Claiborne brands. The two companies have taken a big step forward though, as LIZ will be selling the Monet and Liz Claiborne brands to J.C. Penney for $288 million in total cash considerations. LIZ will maintain the international rights for Monet, will continue to supply Liz Claiborne and Monet-branded jewelry to J.C. Penney and will hold a royalty-free license on LCNY and Lizwear, but will otherwise be out of these businesses.

Read the complete article at this link:
http://stocks.investopedia.com/stock-analysis/2011/Liz-Claiborne-Starts-Over-LIZ-JCP-KSS-OXM-VFC-JNY-CHS1017.aspx

Investopedia: ASML Sounding The Bottom?

Whither ASML (Nasdaq:ASML) goest? The answer is "more or less wherever memory is going." For now, that means bad news for ASML as companies have significantly pulled back on their capex spending. Eventually, though, these manufacturers will come back and ASML will see the order book swell again.


A Third Quarter That Was Slightly Better Than Expected
Analysts had been looking for a fairly unimpressive quarter from ASML and they were basically right, though ASML did do a little better than hoped. Revenue rose 24% from last year, but fell 5% on a sequential basis. Shipments fell 13% sequentially, with new unit shipments down about 21%.

ASML boasts significant operating leverage and that profitability cuts both ways. Gross margin slid about three full points from the second quarter, while operating income fell 18%.


Read more here:
http://stocks.investopedia.com/stock-analysis/2011/ASML-Sounding-The-Bottom--ASML-MU-TSM-CAJ-AMAT-CYMI-AEIS1017.aspx

Investopedia: Still Waiting For Alcoa To Work

As aluminum is an economically sensitive metal, it is probably no great surprise that Alcoa (NYSE:AA) stock has underperformed amidst growing worries that the U.S. will trip over into recession. On the other hand, there are a lot of secular positives for both aluminum and Alcoa, that argue in favor of the thought that this stock should work at some point. The question, then, is whether patience can really pay large enough dividends to make Alcoa worth the time and trouble.

A Fixed Third Quarter   
Alcoa missed the earnings estimate for the quarter and that's certainly disappointing. It also isn't quite as bad as it may seem. Revenue rose about 21% from last year, but declined about 3% from the prior quarter. Performance was fairly consistent across the company's operating segments, but Alcoa did see a slowdown in demand from automakers and heavy truck manufacturers. On the profit side, ATOI (after-tax operating income) rose 41% from last year, but dropped 27% on a sequential basis.

Read more here:
http://stocks.investopedia.com/stock-analysis/2011/Still-Waiting-For-Alcoa-To-Work-F-AA-RIO-BHP-ACH-BA-GE-AKS-WHR1017.aspx

Investopedia: UFPI Tries To Wait Out The Storm

In the food chain of building products, Universal Forest Products (Nasdaq:UFPI) is stuck in an uncomfortable middle. UFPI doesn't grow trees, so it doesn't have the luxury shared by Plum Creek (NYSE:PCL) or Rayonier (NYSE:RYN) of just trimming back harvests and waiting for the bad times to pass. As a value-added producer of wood products, it also cannot do much to drive demand - if Pulte (NYSE:PHM) isn't building homes and if remodelers aren't heading to Home Depot (NYSE:HD) to get supplies for remodeling projects, there's almost nothing the company can do about it.


Consequently, while UFPI appears in many respects to be a well-run company, it is in pretty rough shape these days. A recovery in the core markets is an eventual inevitability but can the company and its shareholders hold on long enough to reap the benefits?

Another Tough Quarter
UFPI has been on an unfortunate run of late, and the third quarter isn't any different. Revenue was basically in line with analyst expectations, but still down more than 2%. On the margin side, the picture is more mixed: the company did better than might be expected given the market conditions, but the company still missed the bottom line estimate.


To read the full article, please follow the link below:
http://stocks.investopedia.com/stock-analysis/2011/UFPI-Tries-To-Wait-Out-The-Storm-UFPI-PCL-HD-MHK-LPX-BLDR-THO1017.aspx

FinancialEdge: How Will China's Currency Moves Affect The U.S.?

Much of the financial media may still be focused on the accelerating downward spiral of Greece or the anti-Wall Street protests in New York City, but China took a page from Glenn Close's book Wednesday and reminded the markets that it will not be ignored. The real question, though, is whether China's currency combat techniques and prickly sense of sovereignty represent a clear and present danger to U.S. businesses, consumers and investors.

What Happened 

The exchange rate between the U.S. dollar and the Chinese yuan has been a matter of contention between the two governments for quite some time. Put simply, the U.S. accuses China of manipulating the currency exchange rate. Strictly speaking, that is exactly right as it must be for unilaterally fixed exchange rates. In practice, the USD/CNY currency rate trades at a rate higher where it would be in a free-floating market, making China's exports cheaper than they would otherwise be and making imports into China correspondingly more expensive.

Read the full column here:
http://financialedge.investopedia.com/financial-edge/1011/How-Will-Chinas-Currency-Moves-Affect-The-U.S.aspx#axzz1aPf3YKKm

Investopedia: Sprint Garrotes Clearwire

If there were anything approaching justice in the business world, Sprint (NYSE:S) and Clearwire (Nasdaq:CLWR) would be forced to stay joined at each other's hip, forever. If an investor wants to see two case studies in how companies can completely screw up a potentially lucrative wireless business, these are the companies to seek out. Now with both companies deep in a hole, Sprint has decided to bring out an ever bigger shovel, but this may ultimately be the shovel that buries Clearwire.

We'll Go Our Own Way  
Sprint and Clearwire have worked together for quite some time, with Clearwire basically serving as the 4G network for Sprint. Unfortunately, Clearwire has not done a great job with its rollout. Although the company is rolling in valuable spectrum and was an early-mover in 4G, dead spots in urban areas became an unacceptable problem, and Clearwire's geographic coverage expansion slowed to a crawl. What's more, Clearwire has bickered with its partners over rollout strategies along the way, including Sprint.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Sprint-Garrotes-Clearwire-S-CLWR-VZ-T-VOD-CMCSA-CHL-TWC1014.aspx

Investopedia: PepsiCo Really Close Now

If there's anything good about widespread market routes, it's that they can often bring expensive stocks back to a more palatable price. That's perhaps the most significant takeaway from PepsiCo's (NYSE:PEP) third quarter earnings; while business continues to move along apace, the stock is finally at a point where long-term investors may see some real value.


A Decent Fiscal Third Quarter 
The market seemed to be girding itself for a bad performance, but PepsiCo did alright. Revenue rose more than 13% as reported, with organic growth in excess of 5%. With worldwide organic snack volume growth of 3%, and beverage volume growth of 1%. It's clear that Pepsi products are still finding their way into shopping carts, but the company hasn't really pushed as hard on pricing as other food and beverage companies.


To continue, please click this link:
http://stocks.investopedia.com/stock-analysis/2011/PepsiCo-Really-Close-Now-PEP-KO-DMND-RAH-GIS-K-ABT1014.aspx

Investopedia: A Superior Offer For Complete Production

Last summer showed signs and portents that the energy services sector was going to start picking up. One of those is the pace of merger and acquisition activities. While bad managers buy at the top, good companies try to expand their businesses just before the sector recovers - when the price of deals is lower and the opportunity for incremental operating leverage is greater. With that in mind, Superior Energy Services' (NYSE:SPN) deal for Complete Production Services (NYSE:CPX) could be a little more than just a combination of two smaller energy service players.


The Deal
Superior is acquiring CPX in a deal with a total value (at the time of the announcement) of $2.7 billion. The deal is a combination of cash ($7 per CPX share) and stock (0.945 shares of Superior) that values CPX shares at just under $33. That's a 61% premium to Friday's close and a 29% premium to the two-month average, but almost 30% below the average analyst target price.

Assuming that the deal goes through as described, Superior shareholders will own 52% of the combined company at closing



Read more at this link:
http://stocks.investopedia.com/stock-analysis/2011/A-Superior-Offer-For-Complete-Production-CPX-SPN-SLB-HAL-BHI-BAS-KEG1013.aspx

Investopedia: Can Sprint Nextel Unlock Value?

By most reasonable standards and projections, Sprint Nextel (NYSE:S) is too cheap. But aside from a bounce out of late 2008, this has been a terrible stock to own for many years, and the glory days when Sprint stock carried a "6" or "7" handle seem long ago indeed. When terrible stock performance and apparent value are paired together, it's often a sign that Wall Street has minimal confidence in management. Although Sprint Nextel management has earned the doubt of any benefit, the company may nonetheless not be getting nearly enough credit for what it may be able to do.


A Bizarre Analyst Meeting
Sprint Nextel recently hosted an analyst meeting, and while these are normally intended to add clarity to a story and allow management to explain its vision, it seems like most investors walked away with a lot of lingering doubts.

It certainly did not help matters that the meeting got testy when analysts really ratcheted up the questions in response to Sprint's announcement that it would be launching its own 4G network, leaving Clearwire (Nasdaq:CLWR) out of it, stopping the sale of Clearwire-compatible devices by the end of 2012.



Read more at this link:
http://stocks.investopedia.com/stock-analysis/2011/Can-Sprint-Nextel-Unlock-Value-S-VZ-T-AAPL-CMCSA-CHL-DCM1013.aspx

Investopedia: Netflix Beats A Hasty Retreat

Even though one of the best lessons from Southwest Airlines (NYSE:LUV) founder Herb Kelleher is that the customer is not always right, the reality is that sometimes you still have to give them what they want. Stubbornly sticking with New Coke would have eventually done major harm to Coca-Cola (NYSE:KO), and Netflix (Nasdaq:NFLX) management seems anxious to ensure that Qwikster doesn't become their New Coke or their Waterloo.


So, for now at least, forget all about "creative destruction." Qwikster is dead. (For more see, Netflix And Creative Destruction.)

Turning the Ship
Netflix customers do not necessarily agree on much - there are huge differences in usage patterns, interesting trends in viewing preferences, and all manner of price sensitivities. But on this occasion they seemed to come to a nearly-universal conclusion - they didn't like Qwikster and they had no particular interest in having to navigate two different websites to continue using what had been a simple and seamless product.


Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Netflix-Beats-A-Hasty-Retreat-NFLX-AAPL-AMZN-GOOG-DISH-CSTR-CMCSA1013.aspx

Investopedia: September's Rail Traffic - Past The Pause?

Like many economic indicators, rail traffic is both invaluable and misleading. It's invaluable, because it is a strong signal of the derived demand in an economy, and the amount of economic activity, particularly industrial. However, it can be misleading when one quarter, let alone one month, can be more about noise than a real trend. With that in mind, it looks like rail traffic may be on the road to recovery, but the touchy state of the economy makes that a difficult call to make, with much conviction.

September's Traffic 

According to Rail Time Indicators, the monthly publication of the Association of American Railroads, U.S. rail traffic rose 1.1% from last year, in September, and was up a like amount on a month-on-month basis. Intermodal traffic, an increasingly significant part of Class one railroad earnings, was likewise strong, up 2.3% from last year and 1% from last month. Excluding coal and grain, traffic was up more than 4% and "industrial" categories grew more than 6%.

Canadian results were a bit more eccentric, showing stronger year-on-year growth in rail traffic, up 3.9%, but weaker results on a monthly basis, down 0.6%, and declines in intermodal traffic.

To read the complete article, follow the link:
http://stocks.investopedia.com/stock-analysis/2011/Septembers-Rail-Traffic-Past-The-Pause-UNP-BRK-A-CSX-NSC-CNI-CP-GWR1013.aspx

FinancialEdge: The Scariest Days On Wall Street

What goes up, must come down, and sometimes it comes down hard. For as long as there have been financial markets, there have been bowel-clenching days where it seems like every asset is deep in the red. Arguably, just as bad are those periods of pronounced malaise where there are few, if any, signature bad days, yet it seems like the markets are just leaking every week. Let us look at some of the worst times that Wall Street has seen. (For ways you can invest in these unpredictable times, read How To Retain Your Sanity In A Volatile Market.)

Crashes 

Curiously, some of the worst days in the history of Wall Street had no clear cause. Oh true, there were concerns about valuations and global economic conditions, but nothing has really ever adequately explained why there have been some particularly terrible days on Wall Street.

To read the full column, click the link:
http://financialedge.investopedia.com/financial-edge/1011/The-Scariest-Days-On-Wall-Street.aspx#axzz1aPf3YKKm

Investopedia: What's Ailing Coal Stocks?

Coal has gotten very cold very quickly. One of the hottest commodities only a year ago, it feels as though the bottom has fallen out of many of these stocks. If coal follows the common commodity pattern, the overshoot at the top of the market will be coupled by a dive and investors will have the opportunity to pick up some real bargains. Investors thinking that today is the day to buy, should remember that another global recession presents a major downside, even from today's prices, but there are many stocks approaching interesting price levels.


What's Gone Wrong?   
A lot of the melt-up in coal was fueled by the economic recovery, as better business conditions promised better demand, both for thermal coal, used to produce electricity, and metallurgical, or met coal, used to produce steel. Since the spring of this year, though, investors have begun to not only accept the end of the recovery, but fear a potential slip back into recession. That has led to a great deal more caution at steel companies and lower orders at utilities. (For related reading, see Industries That Thrive On Recession.)


Read more below:
http://stocks.investopedia.com/stock-analysis/2011/Whats-Ailing-Coal-Stocks-ANR-WLT-ACI-BTU-PVR-KOL-JRCC1011.aspx

Investopedia: Can AngioDynamics Get Hearts Racing?

With another quarter in the books, it's becoming evident that there's no great recovery underway in patient visits to doctors. This first fiscal quarter was not a catastrophe for AngioDynamics (Nasdaq:ANGO) by any means, but nor was it a sign that business is getting back to the sort of growth trajectory that investors demand from small med-tech stocks. With a new CEO in place, a strong balance sheet, good technology in the clinic and a core market that should be bottoming out, patient value-oriented investors might want to check out this story.

For quite a while now, AngioDynamics' stock has suffered from the fact that core earnings growth has been about as exciting as a bucket of warm paste. This dearth of growth cost the prior CEO his job, and it is arguably the primary focus for the new man. Still, investors likely realize that "Rome wasn't built in a day" (though a lot of it did burn down in a single night ... ), and patience is the order of the day.

Read more at this link:
http://stocks.investopedia.com/stock-analysis/2011/Can-AngioDynamics-Get-Hearts-Racing-ANGO-COV-BCR-JNJ-ISRG-ICUI-EW-MMSI1011.aspx

Investopedia: Should Value Investors Check Into Marriott?

Hospitality is a tricky business. Treat people right, and your restaurants, hotels and resorts can become multi-generational destinations; think of Disney (NYSE:DIS) or the Four Seasons. At the same time, it's a brutal business - demanding customers, rampant competition and the vagaries of the economic cycle all put heavy demands on management. Marriott (NYSE:MAR) is clearly a long-term winner and a leader in the industry, but there is an incredible amount of noise in the market right now. 

A Pretty Comfy Third Quarter 

All things considered, Marriott delivered solid third quarter results. Revenue (net of reimbursements) rose almost 11%, with constant currency revenue per available room (RevPAR) about 7% globally. The RevPAR was pretty consistent both at home and abroad, and the company is seeing modestly positive occupancy trends (up 2%) despite rate increases.

Profitability is also coming in fairly well. Operating profits rose nearly 14% and earnings before interest, taxes, depreciation and amortization (EBITDA) climbed about 11% this quarter. On an adjusted basis, EBITA was up a more modest 9%, but still slightly more positive on balance than many analysts had expected. (For related reading, see A Clear Look At EBITDA.)

Read more at:
http://stocks.investopedia.com/stock-analysis/2011/Should-Value-Investors-Check-Into-Marriott--MAR-DIS-HOT-WYN-IHG-HMIN1011.aspx

Investopedia: Constellation Grows By Shrinking

It's not the greatest testament to a business division, when the parent company jettisons it and posts higher profits. Such is the case for Constellation Brands (NYSE:STZ), a company that spent and borrowed too much to expand and is now trying to find a business model that offers better growth and margins for the long haul.

A Fiscal Q2 Better Than Expected 

Constellation's fiscal second quarter results were not great, but they were better than most analysts expected. As-reported revenue plunged 20% (or 21% in constant currency), while organic revenue was basically flat, the difference coming from the divestiture of the Australian and European wine businesses.

Volume was quite mixed. Total North American shipment volume was down almost 2%, as reported, and even worse on an organic basis, which was down almost 4%. Depletion volume, which measures the flow of product from distributors to retailers, was negative in an industry that's showing some modest growth. That said, beer and spirits businesses seem to be doing a fair bit better.

Read more at the link below:
http://stocks.investopedia.com/stock-analysis/2011/Constellation-Grows-By-Shrinking-STZ-TAP-BUD-DEO-BEAM-BF-B-WFM1011.aspx

Investopedia: Bulls And Bears Still Battling For Helen Of Troy

It's pure coincidence that I just finished reading through The Iliad earlier this week; the ancient story of the Greeks fighting the Trojans after the kidnapping of Helen. There are undeniable similarities with the battle for the fictional Helen and the back-and-forth with Helen Of Troy (Nasdaq:HELE) and the market. While I seriously doubt that Athena and Poseidon are taking a personal interest in the stock market and influencing traders, the advances and declines in this stock do seem to resemble the ebb and flow of that legendary battle.

A Tougher Second Quarter  

Helen of Troy reported that sales rose almost 59% this quarter, but that figure was greatly boosted by the acquisition of Kaz and it came in close to 5% below the average analyst estimate. The personal care and healthcare/home businesses were disappointing; personal care was down 2% and the healthcare/home was down about 1% on a pro forma basis. Consequently, the 14.6% growth in the smaller housewares business was largely for naught. All in all, adjusted revenue growth this quarter was just 2% and that's not enough.

To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/Bulls-And-Bears-Still-Battling-For-Helen-Of-Troy-HELE-PG-UL-LCUT-JAH-TGT-BBBY1007.aspx

Investopedia: Illumina Investors Get Schooled

For some time I have been warning Illumina (Nasdaq:ILMN) investors that they ignored Congressional budget wrangling, and the health of state university funding, at their own peril. Apparently that all came home to roost this quarter, as Illumina announced a significant shortfall in its third quarter revenue and warned that the fourth quarter could be difficult, as well. Though Illumina is clearly a technology leader, and likely will remain so for at least the near term, its customers don't fully control their own spending and that has been an underappreciated risk factor in the stock.

Problems Come Home to Roost in Q3  
After the close on Thursday, leading life sciences tools company, Illumina, announced that revenue for the third quarter was going to be well short of prior expectations. Though management has typically been conservative with guidance, and often surpassed it, revenue for the third quarter looks like it will be on the order of $235 million, well short of the $278 million average estimate and also well short of the $260 million Street-low estimate.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Illumina-Investors-Get-Schooled-ILMN-AFFX-PACB-LIFE-TMO-A-WAT1007.aspx

Investopedia: Yahoo! - Everybody's Favorite Target?

As a general rule, investors should never pay much attention to buyout rumors that spring up in the weeks immediately preceding another earnings cycle. Buy-side analysts and managers are desperate for any shred of tradeable information, sell-side analysts are desperate to drive trading, and financial writers are desperate to meet quotas and deadlines.


When times are tough, desperate people go back to what's comfortable. In tech, that means rumors and speculation around the fate of Yahoo! (Nasdaq:YHOO). This time around, though, the change in leadership at the company at least makes the speculation seems a little more fresh.

The Obligatory Microsoft Mention
Although Microsoft (Nasdaq:MSFT) never seems to move when or where the experts say it will, analysts and writers continue to flog the "Microsoft should buy Yahoo!" meme. Okay, it makes some sense. Microsoft and Yahoo! are interlinked in the internet search business and it is not hard to imagine that properties like Yahoo! Finance and Yahoo! Sports could be leverageable on the MSN platform.


Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Yahoo---Everybodys-Favorite-Target-YHOO-GOOG-MSFT-AAPL-AOL-MWW-IACI1007.aspx

Investopedia: AMR - No Bankruptcy Today ... Yet

"The rule is, jam to-morrow and jam yesterday-but never jam to-day." Carroll, Lewis. "Through The Looking Glass"

Airlines are lousy businesses. Even heralded success like Southwest Airlines (NYSE:LUV) and Ryanair (Nasdaq:RYAAY) have plateaued in recent years, and the airline industry has bedeviled otherwise successful investors like Warren Buffett. Now, with rumors swirling around about financial difficulties at AMR (NYSE:AMR), the financial health of the industry is getting another skeptical look from the market.

The Latest Troubles 

AMR, better known as American Airlines, actually has a relatively rare distinction to its credit. This is one of the few airlines that has not gone bankrupt. Still, with the company seemingly left out in the cold in the merger wave, that saw Northwest absorbed into Delta Air Lines (NYSE:DAL) and the merger of United and Continental into United Continental (NYSE:UAL), there have been worries for some time now that the company would struggle to compete. 

Read more here:
http://stocks.investopedia.com/stock-analysis/2011/AMR--No-Bankruptcy-Today--Yet-AMR-LUV-DAL-UAL-LCC-ALK-RYAAY-BA1006.aspx

Investopedia: The Job Market Hurts Companies, Too

Economists can talk at length about the different types of unemployment, but papers and theories don't help those seeking jobs or employees in the short term. One of the distressing parts of the current unemployment environment is that the workers are there and the jobs are there, but there are serious mismatches in terms of skills and availability. While unemployment is often talked about in the context of the negative effects on the workers, the inability to fill vacancies is a major threat to companies, as well.

Caterpillar Frames the Problem 

About a month ago, the CEO of a large U.S. manufacturing company, Caterpillar (NYSE:CAT), highlighted the problem; CAT had openings for workers, but they simply could not find the skilled labor they needed. That left the company with a host of less-than-perfect choices: move the jobs overseas (and risk the wrath of politicians and the public), hire whomever they can get and train them (and risk seeing them walk before earning back the cost of that training), or simply try to get more out of their existing labor force and look to automate wherever possible.

To read the full piece, please click the link below:
http://stocks.investopedia.com/stock-analysis/2011/The-Job-Market-Hurts-Companies-Too-CAT-BA-SI-APOL-MCD-MSFT-GE1006.aspx

Investopedia: Greece - Of Banks And Tanks

The great thing about reality (at least for a writer) is that it has this way of going in directions so strange that not even fiction writers would dare attempt. If recent news out of Greece is to be believed, the Greek government has pulled a whopper - ordering some heavy-duty military hardware at a time when its largest European creditors are debating just how far they should push their own citizens to float this bankrupt nation. (For more on Greece, read 5 Reasons You Should Care About Greece.)

Tanks, with a Side of Skepticism  
Word broke yesterday morning that the Greek and U.S. governments have apparently reached agreement on a deal that will "grant" up to 400 Abrams tanks to Greece, along with a host of refurbishments and upgrades. Investors should realize that the sourcing on this is hardly airtight - the sources include Svenska Dagbladet and other less-than-regular outfits like Defencegreece.com and Hellenic Defence & Technology. Accordingly, this could be a hoax or old news made to seem new again, and it is worth noting that there aren't any corresponding entries in the Federal Register yet.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2011/Greece--Of-Banks-And-Tanks-GD-NOC-NBG-DB-ING-CCH-MS1006.aspx

Investopedia: PPD Goes Private

For some time now, investors have been expecting big things from the providers of outsourced pharmaceutical research and clinical services. The thought has always been that as major pharmaceutical companies like Pfizer (NYSE:PFE) and Merck (NYSE:MRK) conduct mass-firings, the industry would evolve more towards a focus on drug target identification and marketing, and would outsource more and more functions like clinical development. That plan has not exactly lived up to investor expectations and Monday's announcement that Pharmaceutical Product Development (NYSE:PPDI) is selling itself to private buyers, looks to be a curious deal.

The Deal  
PPD announced that it had accepted a $3.9 billion all-cash offer from Carlyle and Hellman & Friedman. At a price of $33.25 per share, PPD shareholders are getting a 30% premium to Friday's close and a fairly sizable premium to other major CROs like Covance (NYSE:CVD) and Parexel (Nasdaq:PRXL). By the same token, though, this deal is coming in at the lower end of the range of the company's fair value and shareholders who remember when this stock traded in the $40 range, may not be so thrilled with this deal.


To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/PPD-Goes-Private-PPDI-CVD-PRXL-CRL-ICLR-ERT-PFE-MRK1005.aspx

RIP Steve Jobs

Sad to see the news that Steve Jobs has passed away. My condolences to his family and friends.


http://www.apple.com/stevejobs/

Exegi monumentum aere perennius

Investopedia: RPM Still Rolling Ahead

The construction industry is still in lousy shape, whether an investor looks at the residential or commercial segments. That makes RPM International's (NYSE:RPM) performance all the more interesting; although volume is not strong, it is positive and the company seems to be holding its own despite no real tailwinds to help it along.

Beginning the Fiscal Year on a Good Note  
RPM managed to get off to a good start for the fiscal year. Revenue rose more than 10% and the company surpassed the high end of the analyst estimate range. Top-line performance was balanced in terms of growth; the consumer business saw sales up 9% while industrial revenue rose almost 11%.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/RPM-Still-Rolling-Ahead-RPM-SHW-VAL-LOW-KRA-AKOZY-PPG1005.aspx

Investopedia: McCormick A Good Mix Of Stable And Spicy

It's probably trite to make "spicy" quips about McCormick (NYSE:MKC) anymore, but if the shoe fits .... After all, its dominating presence in spices and seasonings is a major positive factor in the investment thesis, and the company does have some options that could significantly enhance the growth and returns of this business over time. To the extent that there can be defensive growth stories in packaged food, McCormick certainly looks like one. 

Sweet and Sour Third Quarter Results   
This was a pretty textbook example of a "mixed" quarter for McCormick. Reported revenue rose 16 and 11% on a local currency basis - strong even by the relatively lofty recent standards of this industry. Growth was balanced between improved pricing (up almost 5%) and better volume (up more than 6%), making McCormick one of the relatively rare companies to pass through significant price hikes without really paying for it in volume.

For the full article, click on the link:
http://stocks.investopedia.com/stock-analysis/2011/McCormick-A-Good-Mix-Of-Stable-And-Spicy-MKC-K-KFT-GIS-RAH-CAG-IFF1004.aspx

Investopedia: Wolverine Still A Winner

The footwear market has been mixed up for a while now and this quarter really has not been all that different. Struggling names like Brown Shoe (NYSE:BWS), Collective Brands (NYSE:PSS), and Skechers (NYSE:SKX) continue to have their issues, while companies like Nike (NYSE:NKE) and Wolverine (NYSE:WWW) continue to offer shoppers what they want even at higher price points. 

Solid Third Quarter Performance  
Wolverine had a bit of a problem last quarter when its outlook disappointed investors and they sold off the stock. As has been the case more often than not in this company's history, though, that conservatism was another set-up for an "under-promise, over-deliver" quarter.

Click the link for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/Wolverine-Still-A-Winner-WWW-BWS-PSS-SKX-NKE-DECK-VFC1004.aspx

Investopedia: Why Can't Oracle Quit Hewlett-Packard?

"I wish I knew how to quit you." - Brokeback Mountain

Like a creepy stalker, software titan Oracle (Nasdaq:ORCL) just cannot seem to let go of Hewlett-Packard (NYSE:HPQ), even though Oracle has come to far exceed it in enterprise value. It's admittedly an American tradition to celebrate a success - we invented the spike, the Icky Shuffle, and the Carl Edwards victory backflip, after all - but at this point Oracle is just rubbing it in. It's worth wondering, then, just why Oracle is apparently so interested in a company that is no real threat to it anymore.

Sunstroke  
While software-oriented Oracle and hardware-oriented HP had gotten along well enough for quite a few years and were partners in certain businesses, that all seemed to start changing around the time Oracle bought Sun Microsystems. At that point, Oracle not only became a competitor in high-end servers, but acquired one of the technology options that was giving HP's Itanium line fits. Hewlett-Packard had their chance here but they blew it - they certainly could have stepped in and bought Sun, kept the hardware it wanted, and sold, spun-off, or kept the software side of Sun (like Java).


Read more here:
http://stocks.investopedia.com/stock-analysis/2011/Why-Cant-Oracle-Quit-Hewlett-Packard-ORCL-HPQ-IBM-MSFT-CSCO-DELL-SAP1004.aspx

Investopedia: Micron's Persistence Of Memory

Like the famous Dali painting, Micron (NYSE:MU) shares are looking droopy and melted these days. While the company has made meaningful strides over the past decade in becoming a more efficient and less commodity-focused memory chip company, the reality is that it is still operating in a brutally cyclical market niche and this is a downward cycle. All of this sets up as a good news/bad news story for investors - Micron is a poor candidate for long-term buy-and-hold investors, but today's valuation could be appealing for value and turnaround investors.

A Tough End to the Year 
Although Micron disappointed vis-à-vis a lot of analysts' expectations, the reality is that this is widely expected to be a washout quarter and underperformance in that sort of environment is not quite so troubling.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Microns-Persistence-Of-Memory-MU-HPQ-DELL-SNDK-RIMM-NOK-RMBS1004.aspx

FinancialEdge: Top 6 Scariest Possibilities For The U.S. Economy

If it can go wrong, it will go wrong. That will no doubt strike some as the unofficial motto of the pessimists' society, and savvy institutional investors often make decisions on that basis. While there are many things that investors can do to diversify their exposure to the U.S. economy, the reality is that for many people the health of their portfolios is predicated on the health of the U.S. economy. To that end, and a bit ahead of the upcoming Halloween season, it is worth examining some of the scariest possibilities for the U.S. economy. (For more, read 10 Reasons To Fear The U.S. Economy.)

Energy Shock 

An energy shock may be one of the most credible threats to the U.S. economy. Although the Arab Spring movement seems to be petering out and al-Qaida has been undermined, it is still not ridiculous to think that Saudi Arabia could be vulnerable to violent revolution. Similarly, if Israel were to inflame Mideast tensions (say, a strike on Iran's nuclear facilities) it could lead to another OPEC boycott.

To read the full column, click the link:
http://financialedge.investopedia.com/financial-edge/1011/Top-6-Scariest-Possibilities-For-The-U.S.-Economy.aspx#axzz1Z4sq1iTA

Investopedia: Does The Market Expect Trouble At Accenture?

Sometimes, investors should step back and compare the conventional wisdom on a story with what actually seems to be in the price. Accenture (NYSE:ACN) has long been called a Wall Street "darling" as it is arguably the most well-respected name in global consulting and outsourcing. Yet, despite this love and despite the ongoing growth in its core markets, Accenture's current share price does not seem overvalued at all.

A Surprising Cap to the Year  
Accenture ended the year on a strong note. Reported revenue rose 23%, or 14% in local currency, from last year's level and stayed flat on a sequential basis. Growth was pretty consistent across all of the categories - consulting was up 25% annually and down 2% sequentially, while outsourcing was up 21% annually and up 2% sequentially. Across the major market categories, growth was generally in the 20%+ range (except for the health/public service category), though financial services was a little soft on a sequential basis.

To read more, click the link:
http://stocks.investopedia.com/stock-analysis/2011/Does-The-Market-Expect-Trouble-At-Accenture-ACN-IBM-INFY-CSC-HPQ-DELL-CTSH1002.aspx

Third Quarter Performance

No point in sugar-coating it, my performance in the third quarter was absolutely abysmal.

In retrospect, it's abjectly obvious that I hung on too long to names like Sauer-Danfoss (NYSE: SHS), Portfolio Recovery (Nasdaq: PRAA), and ISTA (Nasdaq: ISTA), and probably should have cut bait on names like Commercial Vehicle Group (Nasdaq: CVGI) a long, long time ago.

On the other hand, I believe in buying good companies and holding them for as long as the businesses are good ... so I'm not going to beat myself up just because it crushed my performance (and wrecked my YTD performance as well).

Going forward, I have money to invest and I'm getting a little twitchy about the energy and resource names, as well as some tech names. Yeah, if we tip over into recession those names will get smacked, but then so will most of what I own anyway. It's not often that names like Freeport McMoRan (NYSE: FCX) or F5 (Nasdaq: FFIV) get close to cheap, so maybe now's the time.

Q3'11 Performance
Portfolio A - (19.0%)
Portfolio B - (11.5%)
Combined Portfolios - (16.5%)

S&P 500 - (14.3%)
Nasdaq - (12.9%)
Russell 3000 - (15.7%)

YTD Performance
Portfolio A - (11.2%)
Portfolio B - (4.1%)
Combined Portfolios - (8.8%)

S&P 500 - (10.0%)
Nasdaq - (9.0%)
Russell 3000 - (11.1%)

Disclosure: I own shares of Sauer-Danfoss, Portfolio Recovery, ISTA, and CVGI