The Home Depot
By admin | July 30, 2008
The Home Depot is the biggest retailer in the home improvement industry in the world. It is the second biggest retailer in the United States, second only to Wal-Mart. It has more than 2000 stores all over the US, Puerto Rico, Virgin Islands, Guam, Canada, Mexico, and China. In 2007, it reported earnings of $4.2 billion.
It was founded in 1978 by Bernie Marcus and Arthur Blank. Their first vision of the store is to provide its customers with do-it-yourself supplies and equipment. They also provided service as they assist their customers with various projects. The staff of the stores went through training to be able to provide the best service for their customers.
The Home Depot values of bring the skills and the materials straight to the customers revolutionized the retail and the home improvement industry. It also allowed customers to save on money because they didn’t have to hire people to do the work that they can do themselves.
The retailer of home improvement equipment and materials has experienced a very fast growth. Its stock went public in 1981 and it achieved 100 stores in 1989. Just recently, in 2006, the Home Depot reached China through the acquisition of The Home Way which is a chain of 12 stores.
The common stocks of Home Depot are on the market through the New York Stock Exchange. In the past three months, Home Depot stock prices have dropped since May. Most analyst recommend on holding to the stocks and not sell just yet.
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Coca Cola FEMSA
By admin | July 24, 2008
Coca Cola FEMSA serves 137 different refreshments of strong brands such as Coca Cola, Nestea, Sprite, Fanta and more. It is also renowned of owning the 45.7% share of the second largest Coca Cola bottler in the world. Its distribution stretches across the 40% population of Latin America hence making Coca Cola FEMSA the largest beverage company in Mexico and Latin America.
Its distribution covers the metropolitan area of Mexico, Buenos Aires region, some area of Brazil, Guatemala, Colombia, Costa Rice, Ecuador and other countries of Latin America. It has a total of 1.6 million point of sale.
As it is responsible for the distribution of the 10% of the world’s Coca Cola production, it makes Coca Cola FEMSA an important partner of Coca Cola system. Although FEMSA holds the 45.7% share, Coca Cola owns the 39.6% and the rest of the shares are open to public in New York Stock Exchange and Mexico Stock Exchange.
Based in Monterrey, Mexico, the Coca Cola FEMSA owns also the biggest convenient store chain in Latin America known as XOXO.
Because of its important role in the Coca Cola system, the Coca Cola FEMSA stands out from its benchmark. It is soaring high in the stock market because of its strong business foundation and reputable revenue generating company. With its future plans of acquiring more companies, it is a clear indication of a growing company while it guarantees a yielding share value.
Opting to buy stock shares for Coca Cola FEMSA is indeed a right decision.
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Russell’s annual index reconstitution expected to lead to heavy trading in some stocks
By admin | May 31, 2008
The whole month of June is kind of a magic month.” Citi Investment Research equity strategist Lori Calvasina wasn’t referring to weddings, graduations or wildflowers blooming. She was talking about the stock trading that will take place in the next few weeks in anticipation of the annual reconstitution of Russell Investment’s indexes.
It may seem like a wonkish matter that few individuals would pay attention to, but the reshuffling of the stocks that make up Russell’s indexes, including the widely followed Russell 2000 index of small companies, will have a big impact on stock and mutual fund holdings.
“Your benchmark index is going to change,” Calvasina explained. Those changes will affect some $4.4 trillion in assets that Russell says is tied to one of its indexes, which were launched in 1984.
Citi estimates there were 120 funds passively linked to Russell’s 26 U.S. indexes as of Dec. 31, holding nearly $535 billion in assets — nearly five times as much as such funds held in 1999. Morningstar Inc. says there are 20 Russell 2000 index funds alone, among 246 that use the small-cap list as a gauge for their performance.
The managers of all those funds will have to adjust their holdings to follow the new lineup in the indexes. But before that happens, hedge funds and others will try to take advantage of the changes.
“Hedge funds are going to try to game this,” Calvasina said. “To a certain extent it’s already been happening.”
Wall Street analysts have been pumping out notes on a near-daily basis with their educated guesses for which stocks will be added, deleted or moved between indexes. They are able to come up with fairly accurate lists, because Russell makes its methods for picking the stocks in its index public, unlike, for instance, Standard & Poor’s, which uses a committee system to develop its S&P 500 and other indexes.
Here’s how it works: At the close of Friday’s trading, Russell Investments will take the first step of the reconstitution by taking a “snapshot” of approximately 13,000 stocks traded on U.S. exchanges. It ranks the companies from largest to smallest, and filters out those that don’t meet its criteria, including companies not based in the U.S., stocks that trade below $1 or those that trade over the counter, or on what are called the Pink Sheets, which do not need to meet minimum requirements or file with the Securities and Exchange Commission.
After factoring in a few other matters, the largest 4,000 companies are picked to be part of the Russell 3000E Index, which represents approximately 99 percent of the U.S. equity market. All its other indexes are subsets of this master list; for instance, the biggest companies become part of the large-cap Russell 1000, while Nos. 1001 through 3000 make up the Russell 2000.
The Russell 2000, has had a difficult year, falling about 12 percent since 2007’s reconstitution. One reason has been the overall weak market performance, especially in financial stocks, which at 20.6 percent make up the single largest sector in the index.
With so many stocks falling, one sure thing is that the market value of the companies that make up the small-cap index will be smaller than last year.
Melissa Roberts, senior vice president of quantitative research at Keefe, Bruyette & Woods, estimates the market caps of the new stocks in the Russell 2000 will range between $165 million and $2 billion, a dramatic fall from the $261 million to $2.5 billion range last year.
She said that along with market weakness, the big decline reflects a large number of companies that were dropped from the list in the past year due to buyouts and delistings, and some changes Russell made to its methods for including stocks. Overall, she expects 312 new companies will be added to the small-cap index, including 42 companies dropping down from the large-cap list. Keith Miller at Citi put his estimates at a total of 307 additions, with 40 stocks falling from the 1000 to the 2000.
Because analysts and others can be so specific ahead of the actual reconstitution, the stocks in question could see some hectic trading in the coming weeks before the final lists for 2008 are released June 27.
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Index: Weak economy may dodge a recession
By admin | May 19, 2008
Gas prices are high, food’s more expensive and the job market’s cold, but the U.S. may still avoid a recession.That was the message Monday from a private business group whose index of leading economic indicators defied expectations and inched higher in April.
The New York-based Conference Board said its forecast of future economic activity rose 0.1 percent in April, matching a 0.1 percent increase in March. Economists had expected a 0.1 decrease in April. Look here if you’re looking for mortgage companies in Denver.
The index is designed to forecast economic activity in the next three to six months based on 10 economic components, including stock prices, building permits and initial claims for unemployment benefits.
“These data certainly reflect a weak economy but not one in recession,” said Ken Goldstein, labor economist at The Conference Board. The small increases in March and April, which followed five months of decline, could be a signal the economy may not weaken further, he said.
Stocks rose in afternoon trading, with the Dow Jones Industrial Average up 133.53, or 1.03 percent, to 13,120.33. The Standard & Poor’s 500 was up 13.16, or 0.92 percent, to 1,438.51 and the Nasdaq composite index rose 18.02, or 0.71 percent, to 2,546.87.
Six of ten leading indicators the Conference Board measures rose in April, including stock prices, interest rate spreads and housing permits. Those increases more than offset the sharp declines in average weekly hours worked and consumer spending.
The six-month rate of decline for April, which economists look to as a predictor of recessions, was negative 1.2 percent, which points to sluggish growth at best, said economist Dana Saporta of German investment bank Dresdner Kleinwort.
It remains to be seen whether the economy’s deceleration resumes after “a temporary pop from tax rebates,” Saporta said. The rebates, which began arriving late last month, provide up to $600 for an individual and $1,200 for married couples, based on income levels. In addition, people are entitled to $300 for eligible children younger than 17.
The Bush administration reiterated Monday that it was too soon to consider a second stimulus package. After getting an economic update from Treasury Secretary Henry Paulson, Bush said Paulson had assured him people are getting the money as promised.
“It should help our economy, and more importantly, help people pay their bills … and take care of their families and shop,” the president said.
Other economic signs remain mixed.
– Lowe’s Cos., the nation’s second largest home improvement retailer, reported a 17.9 percent drop in first-quarter earnings and lowered its guidance for the year on Monday. Robert A. Niblock, the company’s CEO said, “As expected, the challenging sales environment we have been experiencing for the past six quarters continued into the first quarter of 2008.”
In contrast, Wal-Mart Stores Inc., the world’s largest retailer, and TJX Cos., which operates T.J. Maxx, Marshalls and HomeGoods, reported strong first-quarter profits last week.
– More than half the members of the National Association for Business Economics say the economy has started or will enter a recession this year, according to a survey released Monday. Now, 56 percent of the economists think the economy has started or will enter a recession this year, up from 45 percent in a survey in February.
They forecast 1.4 percent growth for the year, which would be the weakest growth since the 2001 recession.
“It’s too early to determine what the length of this slowdown is going to be going forward, because the most important underlying risk factor, the U.S. housing market, remains in a difficult space,” said Roger Bayston, senior vice president of investment manager Franklin Templeton fixed income group.
The housing market swoon may continue to the end of this year, at the minimum, Bayston said.
Along with housing, Americans are contending with a host of other worries. Food prices are rising, and gas is an average of $3.79 for a gallon of regular, according to a survey by AAA and the Oil Price Information Service. In some parts of the country, gas costs more than $4 a gallon.
The rising cost of food and fuel, and the inflation they could spark, may prompt the Federal Reserve to maintain interest rates at current levels when its policy-setting committee meets on June 25. The Fed last lowered rates to 2 percent in April, but it signaled the campaign that reduced rates seven times from 4.75 percent could be ending.
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Summer may bring a turning point for stock market
By admin | May 17, 2008
After nine months of turmoil that started with the collapse of the subprime mortgage market, Wall Street appears to be at a turning point of sorts.The data of the past few weeks have given investors some hope that the worst of the credit crisis has passed, that the economy isn’t losing jobs at a dangerous rate and that inflation isn’t out of control. The result has been relative calm in the financial markets, enabling the major indexes to reach levels they hadn’t seen since early in the year — including the Dow Jones industrials’ brief return earlier this month to the 13,000 mark.
Analysts say data to be released in June and July will determine whether Wall Street extends its recovery or backtracks. If it moves higher, it will break an old habit of pulling back during the summer doldrums — and some analysts believe this may indeed come to pass.
“There’s a bullish momentum that overrides the typical seasonal factors that would tell you to sell stocks in the summer,” said David Kotok, chairman and chief investment officer of New Jersey-based Cumberland Advisors.
The market will also have its eye on the rising price of oil as it reviews each report. And if oil continues to press higher, it could temper the market’s enthusiasm should the economic numbers are upbeat.
For now, the big bet is that economic reports and other key data will show the U.S. was in a mild recession, and that a recovery is already in play. If investors get the confirmation they are looking for, cash could stream into the stock market.
The next two weeks have important numbers including April wholesale inflation and existing home sales, as well as another reading on first-quarter gross domestic product. And two critical reports on consumer confidence and spending — which may show whether increasingly expensive gasoline is making households cut back on discretionary purchases.
When reports start coming out in early June, they should be able to show among other things whether the string of interest rate cuts since last summer have had the desired effect of getting a hobbled economy growing again. In the first week of June, the Institute for Supply Management issues its assessments of the manufacturing and service economies during May and the government releases its report on whether jobs were created or lost during the month.
“We’re going to find out if the stock market is right, and that this will be one of the shallowest recessions on record,” said Dan Seiver, a finance professor at San Diego State University. “Or, that the economy is going to be sicker longer, and when the market realizes that it will have a nasty down-leg.”
In the second week of June, one of the key reports will be the Fed’s own evaluation of the economy, its Beige Book survey of how the regions of the U.S. are faring in the current economic climate.
Nine of the 12 Fed districts surveyed in March said that economic growth slowed because of anemic real estate markets and a slowdown in consumer spending. It showed the economy was certainly troubled, but not plunging.
Of course, Wall Street always pays close attention to economic reports, and was doing so long before the credit crisis. But the data takes on greater significance when many investors have put their cash on the sidelines and are deciding to put it back into the market — or to leave it there and take even more money out of stocks if the numbers point to a continuing slump or if they’re inconclusive.
Along with Wall Street, the Fed will be parsing the data. But the central bank itself will be one of the most crucial economic indicators when it meets again June 24-25 — Wall Street wants the Fed to provide a stronger sign that it feels April’s quarter-point cut of the fed funds rate will be the last, and that the economy is back on track for growth.
And analysts like Kotok are betting that the Fed’s efforts to energize the economy have worked — and that will give the market permission to charge ahead.
“Our view is the Fed will succeed because it has the power to do so, and it has now caught on to the fact that this is serious,” he said. “The stock market is anticipating it, and confirmation of this might not be that far off.”
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Today’s Shopping List
By admin | February 4, 2008
Slim picken’s for me today. 
Looking to buy an intitial position today at the lowest price (he, he):
ZOLL - long
REW - swing trade
Good luck all!
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Eleven States See Widespread Flu Outbreaks
By admin | February 4, 2008
CDC has found flu affecting most of the country but widespread outbreaks in Alaska, Colorado, Hawaii, Kansas, Massachusetts, Mississippi, New Mexico, New York, Pennsylvania, Texas and Virginia.
CDC Says One Minor Strain Has Emerged That Is Not Targeted By This Year’s Vaccine
(AP) “Flu season is in full swing, with wide outbreaks in 11 states - and a new strain is starting to emerge that this year’s vaccine doesn’t specifically target, the government’s public health chief said Friday.
People still should get their flu shot, and there’s plenty available, Dr. Julie Gerberding, head of the Centers for Disease Control and Prevention, told The Associated Press.
So far, the majority of flu cases are being caused by strains that are a good match to the vaccine - and it should provide some cross-protection against the new bug, too, Gerberding stressed.
“We’re still very optimistic” about the protection, Gerberding said. “If people haven’t gotten their flu shot, it really is still not too late.”
Every year, the flu infects up to 20 percent of the population, causes the hospitalization of 200,000 people and kills 36,000.
Flu is a virus, but it can make its victims vulnerable to bacterial infections, in the lungs or the bloodstream, at the same time.”
Don’t forget to eat your fruit and veggies!Topics: Uncategorized | 1 Comment »