Jan
30
Posted on 30-01-2009
Filed Under (Uncategorized) by ryan

January 30, 2009 | by Ryan C. Fuhrmann

Motorcycle manufacturing titan Harley-Davidson (NYSE:HOG) nearly went bankrupt in the early 1980s when deteriorating product quality and competition from less expensive imports flattened operating results. A successful management buyout in 1981, an initial public offering in 1986 and a wildly successful campaign to market to baby boomers sent the company’s stock soaring high for a few decades thereafter. But Harley-Davidson finds itself skidding once again, thanks to some nasty near-term trends.
(0) Comments    Read More   
Jan
28
Posted on 28-01-2009
Filed Under (Uncategorized) by ryan

January 28, 2009 | by Ryan C. Fuhrmann

A global recession means consumers are reeling from job losses, falling personal asset levels and overall uncertainty regarding their finances. The mathematically challenged continue to hit the slot machines hoping to win back their losses, but most consumers are cutting back on this disposable income spending making on-balance casino traffic decline substantially.
Read the rest of this entry »
(0) Comments    Read More   
Jan
28
Posted on 28-01-2009
Filed Under (Uncategorized) by ryan

January 28, 2009 | by Ryan C. Fuhrmann

Southwest Airlines (NYSE:LUV) celebrated its 36th year of profitability when it announced full-year results late last week. This is no small feat given the number of competitors that have entered the airline industry over the past three and one-half decades, and it is even more impressive considering the many rivals that have either had to reorganize or liquidate their operations through bankruptcy proceedings. But is it enough to consider Southwest a worthy investment candidate?

Read the rest of this entry »

(0) Comments    Read More   
Jan
27
Posted on 27-01-2009
Filed Under (Uncategorized) by ryan

January 27, 2009 | by Ryan C. Fuhrmann

Johnson & Johnson (NYSE:JNJ) traditionally has been considered the healthcare bellwether, with a diversified geographic mix and a revenue stream that helped the company set industry trends and resist difficult economic times. As of late, mighty Johnson & Johnson has found itself a victim of patent expirations and overall struggles in its pharmaceutical division. In stark contrast, Abbott Laboratories (NYSE:ABT) faces no such issues in its drug portfolio. Further, it experiences strong growth in all of its business segments across the globe. (Learn to evaluate pharmaceutical companies in Measuring the Medicine Makers.)

Read the rest of this entry »

(0) Comments    Read More   
Jan
26
Posted on 26-01-2009
Filed Under (Uncategorized) by ryan

January 26, 2009 | by Ryan C. Fuhrmann

Several years ago, diversified technology giant IBM (NYSE:IBM) embarked on a strategy to shift its business mix to faster-growing, higher-profit operations. This strategy has been paying off in spades and is a primary reason that Big Blue has remained relatively immune to plummeting global growth trends. But the million-dollar question is, how long can investors expect this to continue?

Read the rest of this entry »

(0) Comments    Read More   
Jan
26
Posted on 26-01-2009
Filed Under (Uncategorized) by ryan

January 26, 2009 | by Ryan C. Fuhrmann

Fourth-quarter and full-year results released January 21 by eBay (Nasdaq:EBAY) continued to demonstrate that the company has top-line issues in its namesake online marketplace. Management attributed most of the weakness to “an almost unprecedented external environment”, though certain investors are concerned eBay is losing its edge in the core business. However, the online auction house, as a whole, remains astoundingly profitable with many appealing business units.
(0) Comments    Read More   
Jan
26
Posted on 26-01-2009
Filed Under (Uncategorized) by ryan

January 26, 2009 | by Ryan C. Fuhrmann

It is taking more effort to find them these days, but there have been a handful of firms to report solid results this earnings season. Somewhat surprisingly, they include a mix of industries that are not necessarily known as being recession-resistant. Not surprisingly, these are large firms with diversified product mixes that operate on a global scale.

Read the rest of this entry »

(0) Comments    Read More   
Jan
23
Posted on 23-01-2009
Filed Under (Uncategorized) by ryan

January 23, 2009 | by Ryan C. Fuhrmann

Copyrights on musical compositions or novels typically last 50 to 70 years after the creator’s death. It’s a shame that this doesn’t apply to drug firms, because Forest Labs (NYSE:FRX) is facing the unpleasant prospect of patent expiration for its two biggest-selling drugs – after which generic drugs can begin stealing market share and revenue.
(0) Comments    Read More   
Jan
22
Posted on 22-01-2009
Filed Under (Uncategorized) by ryan

January 22, 2009 | by Ryan C. Fuhrmann

March 28 will mark the one-year anniversary of Altria’s (NYSE:MO) spin-off of its overseas businesses into Philip Morris International (NYSE:PM). The move has yet to pay off for investors as the PMI shares are down about 18% from the spin-off date, though this is far superior to the market’s overall plunge of more than 30% over the same time frame.

Read the rest of this entry »

(0) Comments    Read More   
Jan
21
Posted on 21-01-2009
Filed Under (Uncategorized) by ryan

January 21, 2009 | by Ryan C. Fuhrmann

Milwaukee-based Johnson Controls (NYSE:JCI) is a leading automotive parts supplier, with a power solutions segment that is the largest producer of lead-acid automotive batteries. Not surprisingly, JCI is currently caught up in the global economic downturn, which has provided a shaking blow to the auto industry. In recent years, Johnson Controls has looked to diversify into businesses that help buildings operate more efficiently. This diversification could help the company offset the struggles in the auto category and survive the current recession – but will it be enough?

Read the rest of this entry »

(0) Comments    Read More   
Jan
20

January 20, 2009 | by Ryan C. Fuhrmann

When it comes to investing in bank stocks, a general rule of thumb is to buy when trading falls below book value and to sell when trading exceeds two times book value. Unfortunately, the current uncertainty within the credit market has made the process of determining book value an exercise in fuzzy math. The plummeting value in mortgage assets and doubtfulness surrounding commercial loans are adversely affecting bank balance sheets these days. (The P/B ratio can be an easy way to determine a company’s value, but it isn’t magic! Learn more at Value By The Book.)

Read the rest of this entry »

(0) Comments    Read More   
Jan
19
Posted on 19-01-2009
Filed Under (Uncategorized) by ryan

January 19, 2009 | by Ryan C. Fuhrmann

For only the second time in the last two decades, computer chip titan Intel (Nasdaq:INTC) reported fourth quarter sales results that fell below those of the previous quarter. The single other time this occurred for Intel was in 2000 during the bursting of the dotcom bubble. Although the reasons for the current downturn are different, the company has plenty of financial firepower to muscle through plummeting demand trends.

Read the rest of this entry »

(0) Comments    Read More   
Jan
16
Posted on 16-01-2009
Filed Under (Uncategorized) by ryan

January 16, 2009 | by Ryan C. Fuhrmann

Few necessities are more basic than food. And that is why grocery stores have become the paradigm defensive industry in today’s uneven market environment. Or have they? 

Read the rest of this entry »

(0) Comments    Read More   
Jan
13
Posted on 13-01-2009
Filed Under (Uncategorized) by ryan

January 13, 2009 | by Ryan C. Fuhrmann

WD-40′s (Nasdaq:WDFC) flagship product is its namesake lubricant (or water displacer, if you want to get technical) that consumers spray for a variety of reasons to prevent rust, lubricate doors and other creaky items and remove moisture. The beauty of WD-40 is that it is an ambiguous product that works well, which is perhaps why it has little direct competition. The lubricant also doesn’t cost much to produce, and neither do the company’s other cleaning products, which is always a bonus for investors.
(0) Comments    Read More   
Jan
12
Posted on 12-01-2009
Filed Under (Uncategorized) by ryan

January 12, 2009 | by Ryan C. Fuhrmann

In similar fashion to retailers, fast food operators have resorted to price slashing in an effort to stem slowing consumer traffic. Old style, drive-in hamburger company Sonic (Nasdaq:SONC) recently rolled out a value menu that offers junior burgers, small fries and ice cream cones. Sonic’s discount menu coincides with its earnings, which likely will remain stalled for the foreseeable future. At current share prices, Sonic is arguably a value from an investment standpoint.

Read the rest of this entry »

(0) Comments    Read More   
Jan
12
Posted on 12-01-2009
Filed Under (Uncategorized) by ryan

January 12, 2009 | by Ryan C. Fuhrmann

Do consumers increasingly turn to alcoholic spirits to drown their sorrows during times of economic downturn? Although last month’s results from Jack Daniel’s owner Brown-Forman (NYSE:BF.B) lent credence to the argument, the earnings results from wine, beer and liquor purveyor Constellation Brands (NYSE:STZ) have kept any definitive conclusions on ice for the time being. Overall, however, Constellation Brands is brewing up solid operating trends in its businesses.
(0) Comments    Read More   
Jan
09
Posted on 09-01-2009
Filed Under (Uncategorized) by ryan

January 09, 2009 | by Ryan C. Fuhrmann

Consistent, boring operating results are traits that buy-and-hold investors seek when identifying appealing stocks. Of course, that’s as long as growth is in a positive direction, and it’s something investors in specialty retailer Bed Bath & Beyond (Nasdaq:BBBY) had become accustomed to in years past. Unfortunately, it looks like growth has gone down the drain at this well-respected retailer for a couple of key reasons. The jury is still out on whether Bed Bath can return to its heyday.
(0) Comments    Read More   
Jan
08
Posted on 08-01-2009
Filed Under (Uncategorized) by ryan

January 08, 2009 | by Ryan C. Fuhrmann

There are certainly more glamorous commercial endeavors than processing payments between merchants and consumers, but few represent more appealing business models. The market for electronic credit and debit card transactions from the likes of Visa (NYSE:V), MasterCard (NYSE:MA) and many large banks is growing gangbusters on a global scale and requires minimal ongoing capital expenditure once initial high-volume networks have been established.

Read the rest of this entry »

(0) Comments    Read More