Investopedia: Sunoco's Radical Reformation

These are strange days in the refining industry, as more and more companies decide that it's time to go big, go independent, or go home. Several major integrated oil companies have started talking about dis-integrating their refining and marketing operations from their oil and gas exploration activities, and Marathon recently did so - splitting itself into Marathon Oil (NYSE: MRO) (an oil and gas exploration company) and Marathon Petroleum (NYSE: MPC) (a refining and marketing company).


Now it's Sunoco's (NYSE:SUN) turn. The company has been quite active already; selling refining facilities in Oklahoma and Ohio, selling its chemicals business, and spinning out its coke operations. Now the company is taking a larger step further - announcing that it intends to sell its two remaining refineries (both in Pennsylvania) and exit the refining business altogether.

A Logical Step Aside
Apart from Sunoco's long history as a refiner, this decision to exit the refining industry makes a lot of sense. This is a tough business all around - environmental worries make new construction difficult, efficiency requires high ongoing capex, and margins are cutthroat. Making matters worse for Sunoco, the company's Pennsylvania refineries use light sweet crude and have high costs all around because of the feedstock it uses and how it is transported to the refineries. With practically no pricing power, Sunoco has been forced to accept years of losses from this business.



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http://stocks.investopedia.com/stock-analysis/2011/Sunocos-Radical-Reformation-SUN-MRO-MPC-VLO-TSO-XOM-PTRY0907.aspx

Investopedia: The Swiss Franc: What Every FX Trader Needs To Know

Foreign exchange, or forex, trading is an increasingly popular market for investors and speculators. The markets are huge and liquid, trading occurs on a 24-hour basis, and there is enormous leverage inherent in the system. Moreover, it is opportunity to trade on the relative fortunes of countries and economies as opposed to the idiosyncrasies of companies. (For related reading, see 10 Ways To Avoid Losing Money In Forex.)


Despite many attractive characteristics, the foreign exchange market is vast, complicated and ruthlessly competitive. Major banks, trading houses and funds dominate the market and quickly incorporate any new information into the prices.


To read the full piece, please click below:
http://www.investopedia.com/articles/forex/11/swiss-franc-primer.asp

Investopedia: Can Barnes & Noble Change One More Time?

One of the most dangerous things investors can do is confuse what they want to happen with what is most likely to happen. Barnes & Noble (NYSE:BKS) is a good example of that Achilles heel for me - I'm a book nerd and very much want this company to succeed. The trouble is, though, that Barnes & Noble's market has changed dramatically, Amazon (Nasdaq:AMZN) and Apple (Nasdaq:AAPL) are formidable competitors, and a sober and unemotional reading of the evidence suggests little more than "maybe" when it comes to the question of whether this company can make it.

Another Tough QuarterUnfortunately, Barnes & Noble's fiscal first quarter results don't offer a lot of encouragement. BKS missed the consensus with its revenue performance, as sales rose a little less than 2% this quarter. Retail revenue was down almost 3% (on a nearly 2% negative comp), while BN.com revenue rose 37% and revenue from the college business fell about 2%.

To read the full piece, please follow the link below:
http://stocks.investopedia.com/stock-analysis/2011/Can-Barnes--Noble-Change-One-More-Time-BKS-AMZN-AAPL-SNE-NOK-GOOG-MSFT-WMT0906.aspx

FinancialEdge: 7 Companies Facing Retiring CEOs

Change is an inevitable part of life, but it can be particularly disruptive when it comes to company leadership. With a new CEO comes a new set of priorities, a new way of doing things and a new perspective on what the company needs to do to remain competitive in its industry. Not all CEO transitions are traumatic or even transformative, but there is always that risk. While investors have had reason to expect a change in the CEO office at Apple (Nasdaq:AAPL) for some time, these other companies are likely to face transitions of their own in the not-so-distant future.
1. Berkshire Hathaway
It is difficult to find a more obvious example of a company that is not only facing the likelihood of a near-term CEO change, but also one that will fundamentally impact how the business operates. The current CEO and chairman, Warren Buffett, has shifted his position on succession a few times over the years, and currently it is expected that the investment functions that garner so much attention will likely be split among multiple people. Though Berkshire has an excellent roster of operating units, a change in leadership here is going to significantly alter how business is done. At present, Berkshire Hathaway can do things quickly and effectively in large part because Warren Buffett is Warren Buffett - and a handshake deal with him goes a long way with most people.


Read the full column at the link below:
http://financialedge.investopedia.com/financial-edge/0911/7-Companies-Facing-Retiring-CEOs.aspx#axzz1X2whDx73

Investopedia: Ciena - Performance From Margins Or Marginal Performance?

The communications and networking infrastructure space is sort of like a primetime medical drama. The patients come in riddled with holes or coughing up blood, they stabilize, they seem to get better, there's a sudden turn for the worse (usually about midway through), and then about twenty minutes of artificial tension as the outcome hangs in the balance.

Unfortunately for shareholders, there's nothing artificial (nor especially entertaining) about the travails and challenges for companies like Alcatel-Lucent (NYSE:ALU), Adtran (Nasdaq:ADTN), Infinera (Nasdaq:INFN), Finisar (Nasdaq:FNSR) or Ciena (Nasdaq:CIEN) these days. While the future of bandwidth demand has never looked brighter and customers are queuing up for new technologies in the 40G/100G category, inventory corrections, unstable order patterns and rampant competition have rippled through the sector for a while now.

The link below will take you to the full piece:
http://stocks.investopedia.com/stock-analysis/2011/Ciena---Performance-From-Margins-Or-Marginal-Performance-CIEN-ALU-INFN-FNSR-JDSU-CSCO-JNPR0905.aspx

Investopedia: UTi Seems To Be Pricing In The Bad News

As investors increasingly fret about the health of the global economy and the likelihood of another recession, the transports have started to flash some warning signs. Railroad companies like Union Pacific (NYSE:UNP) and CSX (NYSE:CSX) have seen carload traffic slow, while drybulk and container shipping companies see rates carve out new bottoms.

Curiously, the stocks of asset-heavy companies like rails and air freight have held up better than many of the asset-light logistics and freight-forwarding companies. That seems to be particularly true for UTi Worldwide (Nasdaq:UTIW). While margins and competition have long been a bear story for this supply chain service provider, investors may wonder if the stock's relatively poor performance within the transports is a sign of bad news to come or an opportunity for a relative value call.



Click the link for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/UTi-Seems-To-Be-Pricing-In-The-Bad-News-UTIW-EXPD-CHRW-UPS-FDX-UNP-CSX0905.aspx

Investopedia: AT&T Will Have To Fight The Government For T-Mobile

When AT&T (NYSE:T) proposed to acquire Deutsche Telekom's (Nasdaq:DTEGY) U.S. subsidiary T-Mobile and combine the #2 and #4 wireless service providers into the #1 provider, it seemed like a bold and risky move. The risk on this deal has just ratcheted upward in a major way, as the Department of Justice has dug in its heels and filed suit to block the deal on antitrust grounds. The high break-up fee that AT&T owes DT if the deal falls through gives the company strong incentive to fight this one out, but the odds of success are not looking great.

Department of Justice Itching for a Fight   
The Department of Justice is adamant that it does not want this deal to go through. Keep in mind, the FCC just asked AT&T for more information about a month ago and by all accounts the agency is not even close to finishing its review of the transaction. The Department of Justice doesn't seem to care, though, and has already decided to oppose this deal through the courts.

To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/ATT-Will-Have-To-Fight-The-Government-For-T-Mobile-T-S-VZ-AMT-CELL-LEAP-PCS0905.aspx

Investopedia: Does The Fresh Market Have A Real Chance

It may be hard to imagine that America really needs another food retailing concept. There are traditional supermarkets like Kroger (NYSE:KR) and Safeway (NYSE:SWY), organic-focused stores like Whole Foods (NYSE:WFM) and Earth Fare, value options like Aldi, and emerging concepts like Trader Joe's and Lowe's. And that's hardly the end of the list - major discount retails like Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) long ago moved into food retailing, and deep-value "dollar stores" and pharmacies like Walgreen (NYSE:WAG) have added more and more perishable food to their shelves. 

But wait, there's more. A renewed interest in eating food that hasn't sat on a truck for a week has sparked more interest in farmer's markets and community-supported agriculture programs. So this is the market that The Fresh Market (NYSE:TFM) is facing. While this company has been around for a while now (it started in North Carolina in 1982), it is relatively new as a public company and has just begun to build a significant presence outside of the southern U.S.

Continue below:
http://stocks.investopedia.com/stock-analysis/2011/Does-The-Fresh-Market-Have-A-Real-Chance-TFM-KR-SWY-WFM-WMT-TGT-WAG0902.aspx

Investopedia: DryShips Still Leaking

If this is what an economic recovery looks like, investors in the shipping sector should shudder to think what even worse times might look like. While DryShips (Nasdaq:DRYS) has fared better than several of its rivals in drybulk shipping, the stock has been punished as shipping rates continue to decline below the operating costs of even the best operators. Though this is not a sustainable set of circumstances, and Capesize rates have spiked up recently, it could be some time before the shipping industry looks truly healthy again.

Disappointing Results For Q2  
DryShips did not report an especially strong fiscal second quarter. Revenue was basically flat, as positive (albeit disappointing) growth of 16% in the offshore drilling segment was offset by a 19% decline in net voyage revenue in the drybulk business. Revenue in the drilling business was hurt by several rig mobilizations (companies typically do not get paid while they move rigs to a new jobsite); though that is a valid issue, it is one that the company could (and should) have communicated to investors earlier.

Read more through the link below:
http://stocks.investopedia.com/stock-analysis/2011/DryShips-Still-Leaking-DRYS-RIG-DSX-SB-NAT-GLNG-CMRE0902.aspx

Investopedia: Leave Campbell Soup On The Shelf For Now

There was no reason to expect that Campbell Soup (NYSE:CPB) was going to fix all that ailed it especially quickly. There is next to nothing to be done about input costs, and likewise little that can be done about weak consumer spending. Product development and innovation are going to take time to bear any fruit, and investors simply have to settle in and accept that this is a company that won't be going anywhere fast for a while yet.


Fourth Quarter Results Really Not So Strong
While Campbell stock may well see a bit of a relief rally since the company did surpass the results preannounced at its analyst day, the full context of the numbers is not so great. Revenue rose 6%, and that did beat analyst expectations, but organic growth was just 1%, and volume was down 2%.


To continue, please click below:
http://stocks.investopedia.com/stock-analysis/2011/Leave-Campbell-Soup-On-The-Shelf-For-Now-CPB-GIS-THS-K-KFT-WMT-TGT0902.aspx

Investopedia: XOMA Rearranges The Deck Chairs One More Time

XOMA (Nasdaq:XOMA) really is a remarkable story in many ways. Few companies have survived so long, and raised capital so many times, and done so little with it. While the company has actually approached $100 million in reported sales, and not many biotechs do even that much, the company has never had any real success in the clinic and has basically strung along successive generations of investors on hype and hope. Now that the company is changing up management yet again, investors should be asking themselves if there is really a good reason to stick by a company that has floundered around for more than 20 years to no real purpose.


A Change at the Top
XOMA announced Wednesday that it's CEO Steve Engle was bailing on the company. Engle said, "I am looking forward to applying my expertise building life science companies in the future."

Hmmm, expertise? Engle became XOMA's CEO in August of 2007. In the those four years, XOMA has gone from a market cap north of $350 million to a current market cap of just under $64 million, and the company really is not a great deal closer to having a winning product in its portfolio.


Read the complete article at the link below:
http://stocks.investopedia.com/stock-analysis/2011/XOMA-Rearranges-The-Deck-Chairs-One-More-Time-XOMA-REGN-PFE-ABT-ISIS-VICL-CELG0901.aspx

Investopedia: Will China Extend Joy Global's Cycle?

In many respects it looks like the bloom is well off the rose when it comes to the industrial equipment rebound. A range of companies - Caterpillar (NYSE:CAT), Emerson (NYSE:EMR) and Donaldson (NYSE:DCI) just to name three - have posted solid results in recent weeks, but suggested that growth is going to get harder in markets like North America and Europe (where most of these companies still garner the majority of their revenue).

What, if anything, does that mean for Joy Global (Nasdaq:JOYG)? As one of the leading providers of heavy machinery to the mining industry, it is clearly a cyclical business and this up-cycle in equipment demand has been going on for a while now. Will a slowdown in economic growth lead to mining companies pulling back on projects and curtailing demand, or will acquisitions like China's IMM give it enough emerging market exposure to temper the down-cycle?

Read more of this article at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Will-China-Extend-Joy-Globals-Cycle-JOYG-CAT-DCI-CMI-CAM-TWI-KMTUY0902.aspx

Investopedia: Still A Lot Of Questions At LDK Solar

It seems hard to argue that solar is not going to be an increasingly significant part of the world's energy production infrastructure. An IEA analyst's recent prediction that solar will produce the majority of the world's power by 2060 may be a little too far-reaching, but directionally that prediction could still be right. The question is, though, with so many players in the solar space, can LDK Solar (NYSE:LDK) emerge not just as a survivor, but as a leader in the world's transition to green energy? 

A Tough Second QuarterLDK Solar's second quarter results highlight that, for however bright the prospects of solar energy may be, the here and now is still beset by volatility. Sales fell about 12% when compared to last year, but almost 35% when compared to the prior quarter, as the company has seen a very adverse pricing environment in the wake of major cutbacks in European demand and a glut in rival supplies.

To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/Still-A-Lot-Of-Questions-At-LDK-Solar-LDK-FSLR-TSL-YGE-SOL-STP-GE-SI0901.aspx

Investopedia: Casella Waste - Even The Environmental Sector Has Challenges

Perhaps one of the more interesting lessons of the recession and this sluggish recovery has been the deconstruction of the idea of "safe" industries where investors can take refuge in bad times. Food companies have been squeezed by input-cost inflation, healthcare companies have seen patients disappear, and the environmental sector, too, has seen business deteriorate more than many would have guessed.

As a small regional player, Casella Waste Systems (Nasdaq:CWST) has a host of challenges. The company does not have the sort of scale that benefits giants like Waste Management (NYSE:WM) or Republic Services (NYSE:RSG), and its balance sheet probably precludes a lot of expansion on its own. Though there could certainly be some long-term value here, this isn't an especially safe place to wait out the market's turbulence.
To read more, follow the link below:
http://stocks.investopedia.com/stock-analysis/2011/Casella-Waste--Even-The-Environmental-Sector-Has-Challenges-CWST-WM-RSG-BIN-WCN-CLH-SRCL0831.aspx

Investopedia: Can Skullcandy Marry Performance With Image?

Now that the post-IPO quiet period is over, a number of firms have initiated coverage on headphone maker Skullcandy (Nasdaq:SKUL). Does it really surprise anyone that the six banks initiating coverage on the stock were the six banks on the cover of the IPO? Likewise, does it surprise anybody that the coverage was universally positive? More and more, it seems like that "Chinese wall" between research and banking is creeping back to something more like the perforated Saran Wrap of the pre-tech bubble days.

Whatever the conflicts of interest may, or may not, be, does Skullcandy deserve the love on its own merits? More to the point, can this company find a way to make a real business and real profits out of what has traditionally been a market bifurcated between throw-away, low-performance junk and super-high-end and very expensive gear for audio nerds?

Read more through the link below:
http://stocks.investopedia.com/stock-analysis/2011/Can-Skullcandy-Marry-Performance-With-Image-SKUL-SNE-PHG-TGT-AAPL-KOSS-BBY0831.aspx

Investopedia: Winn-Dixie Needs An Identity

Since emerging from its bankruptcy of 2005, Winn-Dixie (Nasdaq:WINN) has struggled to really work as a stock or as a food retailing concept. Not really a value-focused player like Wal-Mart (NYSE:WMT) or Aldi, nor a top service provider like Publix or Ruddick's (NYSE:RDK) Harris Teeter, Winn-Dixie seems to be foundering a bit as it tries to rebuild its business and its market cap. With fiscal fourth quarter earnings and 2012 guidance in hand, it is hard to see where this stock really fits.

Fourth Quarter Results as Expected  
Given the Winn-Dixie preannounced some of its fourth quarter results a little while ago, there was not a lot of drama in the numbers that the company did report. Reported sales fell almost 4%, while identical-store sales rose more than 3% despite a decline in store traffic.
 
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http://stocks.investopedia.com/stock-analysis/2011/Winn-Dixie-Needs-An-Identity-WINN-WMT-RDK-KR-TGT-DG0831.aspx

Investopedia: Industry At A Glance - Packaging

Packaging is scarcely ever noticed, but it is everywhere. A quick trip to the supermarket or pharmacy will show not only the ubiquity of packaging products, but the wide scope of form and function that is available to food, beverage, personal care and healthcare companies. There is certainly a cyclical aspect to the packaging industry and input costs are always significant, but investors may want to give this industry more than just a passing thought. There are certainly some interesting companies out there today and some of these stocks could be interesting at current values.

Ball Corp (NYSE:BLL)  
Ball Corp is quite simply the world's largest metal beverage container manufacturer, with about 40% share (rivals Crown Holdings (NYSE:CCK) and Rexam have roughly 20% share each). Ball's customer list is largely a roster of who's who in the beverage industry - soft drink makers like Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP), as well as brewers like Anheuser-Busch InBev (NYSE:BUD). Ball Corp certainly has some vulnerability to higher metal prices, but the company's market position is such that it can pass on at least some of this to its customers. The bigger threat to Ball Corp may be substitution, as plastic containers make further inroads into the beverage sector.


Read the full piece at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Industry-At-A-Glance---Packaging-BLL-CCK-BMS-MWV-RKT-SEE-ATR0831.aspx

Investopedia: Dollar General Stuck Between Value And Growth

It is true that people will continue to buy food and other necessities of life through good times and bad, but there can be some pretty significant shifts in how and where they do that buying. When times are good and there's room in the budget, places like Whole Foods (NYSE:WFM) and Fresh Market (NYSE:TFM) can draw in the traffic. Tough times, though, lead to tough decisions and can lead shoppers to consider trading down to the likes of Wal-Mart (NYSE:WMT) and the deep discount retailers collectively known as "dollar stores." 


While that does indeed seem to be happening for Dollar General (NYSE:DG), the question is whether investors are already too far ahead of the story. Dollar General is indeed bringing people into the stores and management deserves credit for maintaining solid margins, but it looks like the valuation already presupposes a lot of that performance.

A Surprisingly Strong Second Quarter
One of the recent themes for retailers has been the push/pull between preserving margins (by raising prices) and preserving market share as input costs keep rising. Wal-Mart and Target (NYSE: TGT), for instance, have generally chosen to preserve margins and the result has been unimpressive same-store sales. Dollar General has generally been going the other way.


Read more at the link below:
http://stocks.investopedia.com/stock-analysis/2011/Dollar-General-Stuck-Between-Growth-And-Value-DG-WMT-DLTR-NDN-FDO-SVU-WFM0831.aspx

Investopedia: Industry At A Glance - Auto Parts

It doesn't seem so long ago that investing in anything related to the automotive sector seemed to be an invitation for a capital loss. Companies struggled with excess capacity, high debt and nonviable cost structures, and more than a few companies at least flirted with bankruptcy (and some made the commitment to it).


Now, though, is seems like a new industry. Many companies have worked to strip costs out of their operating structure and emerging markets have become a major growth opportunity. Though investors should not assume that this industry has shaken off its traditional cyclicality, opportunities could still be available in the sector.

BorgWarner (NYSE:BWA)
Auto part companies do not get much credit (or valuation) for technological innovation, but that seems a little unfair in the case of BorgWarner. Diesel turbochargers and dual clutch technology are both significant growth opportunities, particularly if diesel passenger vehicles become as popular in the United States as they are in Europe. BorgWarner used to pay a dividend and that could resume again as the company shores up its balance sheet. Investors should also note that BorgWarner has less exposure to U.S. automakers than many names on this list.



To read the full article, please follow this link:
http://stocks.investopedia.com/stock-analysis/2011/Industry-At-A-Glance---Auto-Parts-BWA-FDML-TEN-TRW-AXL-DAN-MOD0830.aspx

Investopedia: Donaldson Likely Looking At A Lower Gear Next Year

The trouble with good times is that in the market they always come to an end sooner or later. Like many other industrial and vehicle suppliers, Donaldson (NYSE:DCI) has had a very solid run as the economy has recovered from its worst levels. With a lot of OEM orders already in the history books, though, it looks like the pace of growth is due to slow, and it's anybody's guess as to whether shareholders will remain as loyal to the stock if growth finds a lower gear.

A Solid Cap to a Good Year  
Donaldson did well for its fiscal fourth quarter. Revenue rose 21% as reported, or about 13% on a constant currency basis. Admittedly that pales a bit when compared to the results of Caterpillar (NYSE:CAT), BorgWarner (NYSE:BWA), or Cummins (NYSE:CMI), but it was a good result and it compares well with other filtration players like Pall (NYSE:PLL) and Clarcor (NYSE:CLC).


To read the full piece, please go to Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Donaldson-Likely-Looking-At-A-Lower-Gear-Next-Year-DCI-CMI-CAT-BWA-TEN-HON-PLL-CLC0830.aspx