Dec
12
December 11, 2008 | by Ryan C. Fuhrmann
Share prices of consumer staples firms have lagged the return of the S&P 500 over the past week as investors became more optimistic that government stimulus plans will help lift the domestic economy out of a prolonged funk. The rally may prove short-lived, however, as many experts don’t expect a recovery until at least mid-2009, which would make the current recession the longest in the past four decades.
Dec
12
December 12, 2008 | by Ryan C. Fuhrmann
Executive recruiting firm Korn/Ferry (NYSE:KFY) posted third quarter earnings per share of 30 cents on Wednesday, which fell 19% from last year’s quarter but beat analyst projections by a penny. Revenue wasn’t quite as weak, falling 3% to $199.7 million, which is respectable given that worldwide employment trends are becoming increasingly challenging. However, the company is battening down the hatches for what it sees will be even more difficult times ahead.
Dec
10
December 10, 2008 | by Ryan C. Fuhrmann
After a disastrous multi-year strategy to diversify into ancillary businesses, H&R Block (NYSE:HRB) has been working to get its house in order and focus on the tax preparation services it originally made its name on. The subprime mortgage business was jettisoned last year at a hefty loss, while H&R Block Financial Advisors was officially sold to Ameriprise Financial (NYSE:AMP) on November 1, the day after the second quarter closed.
Dec
10
Posted on 10-12-2008
Filed Under (FAVORITE) by ryan
December 10, 2008 | by Ryan C. Fuhrmann
Chapter 12 of Benjamin Graham’s The Intelligent Investor (1949), offers a piece of insightful advice for investors: ”Don’t take a single year’s earnings seriously.” Why? Reliance on quarterly and annual earnings figures “abounds in misleading possibilities”, stemming from cyclicality in earnings due to the business cycle and one-time and other charges that companies frequently tell investors to ignore because they mask the underlying profitability of their “core” operations. (For more on this book, read The Intelligent Investor: Benjamin Graham.)
Dec
08
Posted on 08-12-2008
Filed Under (Uncategorized) by ryan
December 08, 2008 | by Ryan C. Fuhrmann
Last Friday, December 5, marked the seventy-fifth anniversary of the end of Prohibition, the 13-year period from 1920 to 1933 when alcohol was made illegal in the United States. With a play on the popular Cinco de Mayo regional festival celebrated in Mexico on May 5, a recent “Wall Street Journal” article referred to the occasion as “Cinco de Drinko”, and Brown-Forman (NYSE:BF.A, BF.B) took the opportunity to acknowledge the anniversary by releasing its second-quarter financial results.
Dec
08
December 08, 2008 | by Ryan C. Fuhrmann
Third-quarter earnings season has made it abundantly clear that the extent of the global economic slowdown caught many companies off guard. Industrial activity, which first slowed in the U.S. on the bursting of the housing bubble, spread like an engineered plague to overseas markets in an almost unexplainable, coordinated fashion.
Dec
05
December 05, 2008 | by Ryan C. Fuhrmann
Staples (Nasdaq:SPLS) bills itself as the world’s largest office products company and in terms of market capitalization, it is more than 14 times larger than domestic rivals Office Depot (NYSE:ODP) and OfficeMax (NYSE:OMX) combined. This lead over its arch rivals is expected to continue as Staples weathers global economic turmoil and generates ample capital to acquire and expand its way across the globe.
Dec
04
Posted on 04-12-2008
Filed Under (Uncategorized) by ryan
December 04, 2008 | by Ryan C. Fuhrmann
A few months ago China officially passed the U.S. in terms of total internet users, giving it title to the largest online market in the world with more than 250 million users according to the China Internet Network Information Centre. It is also one of the fastest growing markets; the number of users had increased more than 20% over the first half of 2008, and although the credit crisis will surely temper domestic growth trends, the potential for additional users is still substantial.
Dec
02
December 02, 2008 | by Ryan C. Fuhrmann
If you’re wondering why traditionally recession-proof high-end brands have fallen prey to the current downturn in the global economy, it may have to do with a strategic shift in their target markets. For some time now middle class consumers have aspired to move upscale with their taste in automobiles, high-fashion brands and jewelry. Many brands have been more than willing to oblige and meet the consumers in the middle. BMW has its 100 series sedans; Nordstrom (NYSE:JWN) has its Nordstrom Rack stores, and Tiffany & Co. (NYSE:TIF) has its boutique stores in smaller cities emphasizing namesake silver as much as four-carat diamonds.
Dec
01
December 01, 2008 | by Ryan C. Fuhrmann
Conn’s (Nasdaq:CONN) is a regional-based purveyor of home appliances, consumer electronics and furniture. Think of it as a mini Best Buy (NYSE:BBY) that runs its consumer credit business in-house, which means it is operating in the eye of the credit crisis storm given its retail and financial focus. To add insult to injury, it had more than figurative storms to deal with during its recently completed third quarter, with a couple of hurricanes dealing a significant blow to its corporate headquarters and a high percentage of its store base.
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