/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): The most hated cable company in America is… Teaser (s): According to a survey of more than 14,000 customers released on Tuesday by the American Customer Satisfaction Index, customers' satisfaction with subscription TV services - this includes cable and satellite TV companies - has fallen by 3.1% from last ... Source (s): MarketWatch DocumentDate (s): 19 minutes ago DocumentDate_raw (n): 1433249522000 Link (s): http://www.marketwatch.com/story/the-most-hated-cable-company-in-america-is-2015-06-02?reflink=MW_news_stmp DocumentKey (s): HTTPwww.marketwatch.com/story/the-most-hated-cable-company-in-america-is-2015-06-02?reflink=MW_news_stmp DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Incomes Rise But Spending Remains Constant Teaser (s): Even if the economic crisis seems to be over and in many states the minimum wage is now higher and it is scheduled to increase considerably by 2020, many consumers still remain cautious and decide not to spend more but invest the extra money they earn ... Source (s): Wall Street Hedge DocumentDate (s): 49 minutes ago DocumentDate_raw (n): 1433247750000 Link (s): http://www.wallstreethedge.com/incomes-rise-spending-constant/23762/ DocumentKey (s): HTTPwww.wallstreethedge.com/incomes-rise-spending-constant/23762/ DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): UPDATE 1-Medtronic's adjusted profit beats estimates on heart device sales Teaser (s): (Adds details). June 2 (Reuters) - Medical device maker Medtronic Plc reported a better-than-expected adjusted quarterly profit, helped by higher sales of its heart devices. Source (s): Reuters DocumentDate (s): 49 minutes ago DocumentDate_raw (n): 1433247750000 Link (s): http://www.reuters.com/article/2015/06/02/medtronic-results-idUSL3N0YO46K20150602 DocumentKey (s): HTTPwww.reuters.com/article/2015/06/02/medtronic-results-idUSL3N0YO46K20150602 DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Blue Cross' $71 Billion Shift From Fee-For-Service Medicine Escalates Teaser (s): The nation's Blue Cross and Blue Shield plans say they have increased to more than $71 billion annually the amount of money they are spending on value-based care that rewards better outcomes and coordination of treatment rather than volume of medical ... Source (s): Forbes DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1433246400000 Link (s): http://www.forbes.com/sites/brucejapsen/2015/06/02/blue-cross-71-billion-shift-from-fee-for-service-medicine-escalates/ DocumentKey (s): HTTPwww.forbes.com/sites/brucejapsen/2015/06/02/blue-cross-71-billion-shift-from-fee-for-service-medicine-escalates/ DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): UPDATE 1-Dollar General profit beats on higher prices, lower transport costs Teaser (s): (Adds details, background, shares). June 2 (Reuters) - Discount retailer Dollar General Corp reported a better-than-expected quarterly profit, helped by higher prices and lower transportation costs. Source (s): Reuters DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1433245725000 Link (s): http://www.reuters.com/article/2015/06/02/dollar-general-results-idUSL3N0YO41E20150602 DocumentKey (s): HTTPwww.reuters.com/article/2015/06/02/dollar-general-results-idUSL3N0YO41E20150602 DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): GLOBAL MARKETS-Greek uncertainty hits Europe shares, inflation lifts euro Teaser (s): ... * European shares down as investors seek clarity over Greece. * Euro zone bond yields rise as inflation beats forecast. * Euro rises 1 pct vs dollar. Source (s): Reuters DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1433243700000 Link (s): http://in.reuters.com/article/2015/06/02/markets-global-idINL5N0YO1W120150602 DocumentKey (s): HTTPin.reuters.com/article/2015/06/02/markets-global-idINL5N0YO1W120150602 DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): UPDATE 2-Euro bond yields jump after forecast-beating inflation data Teaser (s): ... * Euro zone May inflation higher than forecast. * Spanish, Italian, Portuguese yields hit 2015 peaks. * German yields near one-week high. Source (s): Reuters DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1433235684000 Link (s): http://in.reuters.com/article/2015/06/02/markets-bonds-euro-idINL5N0YO0SE20150602 DocumentKey (s): HTTPin.reuters.com/article/2015/06/02/markets-bonds-euro-idINL5N0YO0SE20150602 DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Wal-Mart to Raise Wages for 100000 More Employees Teaser (s): The moves mark the next wave of wage hikes by the nation's largest private employer, which has been under pressure from labor-backed groups for the treatment of its workers. Source (s): Inc.com DocumentDate (s): 9 hours ago DocumentDate_raw (n): 1433217375000 Link (s): http://www.inc.com/associated-press/wal-mart-kicks-off-next-phase-of-wage-increases.html DocumentKey (s): HTTPwww.inc.com/associated-press/wal-mart-kicks-off-next-phase-of-wage-increases.html DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): RPT-Intel's purchase of Altera defends its datacenter dominance Teaser (s): (Repeats to widen distribution). By Lehar Maan and Bill Rigby. BANGALORE/SEATTLE, June 1 (Reuters) - Intel Corp's $17 billion purchase of programmable chip maker Altera Corp is a costly defensive move to ward off rivals in the prized datacenter business ... Source (s): Reuters DocumentDate (s): 11 hours ago DocumentDate_raw (n): 1433209950000 Link (s): http://in.reuters.com/article/2015/06/02/altera-ma-intel-datacenters-idINL1N0YO03E20150602 DocumentKey (s): HTTPin.reuters.com/article/2015/06/02/altera-ma-intel-datacenters-idINL1N0YO03E20150602 DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): How the Dow Jones industrial average fared on Monday Teaser (s): Stocks rose on Monday after the release of some encouraging economic data and news of a big acquisition in the semiconductor industry. Source (s): Chron.com DocumentDate (s): 16 hours ago DocumentDate_raw (n): 1433193075000 Link (s): http://www.chron.com/business/article/How-the-Dow-Jones-industrial-average-fared-on-6299970.php DocumentKey (s): HTTPwww.chron.com/business/article/How-the-Dow-Jones-industrial-average-fared-on-6299970.php DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |19744231|143936|149324 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Big Food is going after your wallet by going organic and small Link (s): http://folionation.squarespace.com/news/2015/6/1/big-food-is-going-after-your-wallet-by-going-organic-and-sma.html Thumbnail (s): DocumentDate_raw (n): 1433185860000 DocumentDate (s): June 1, 2015 DocumentDate_smart (s): 18 hours ago DocumentKey (s): 1107-290734296785735361321-3B8GJ22K4B30GETS1M6Q7OOFA1 ContentType (s): Article TrackingPixel (s): Teaser (s):

Attention health conscious shoppers! Your organic processed meats could soon come from Hormel Foods.

Last week, Hormel Foods (HRL), the company behind classic American brands like Skippy and Spam, announced that it is acquiring natural and organic meats maker Applegate Farms. Hormel is plunking down $775 million for Applegate because, as CEO Jeffrey Ettinger notes, "A growing number of consumers are choosing natural and organic products."  Forty-five percent of Americans are opting for organic food in the supermarket, to be exact. 

As Fortune points out, Hormel isn't the first big food corporation to buy a smaller, often healthy company in the hopes of appealing to consumers who are increasingly turning their backs on the brand names of yore. Hershey's (HSY) bought all-natural beef jerky maker KRAVE in January, Campbell Soup Company (CPB) acquired Plum's Organic Baby Food in 2013 and General Mills (GIS) snatched up the Food Should Taste Good snack line back in 2012.

The acquisitions make a lot of sense. According to the Organic Trade Assocation, domestic sales of organic food and non-food products reached a record $39.1 billion in 2014. Organic food sales now account for nearly 5 percent of the entire food market.

Consumers aren't just abandoning Big Food for healthier options, though. Reuters, citing research from IRI and Boston Consulting Group, reports that small and mid-size consumer goods companies have generated $18 billion in sales since 2009. And the success of these specialty food producers means that Big Food has lost 2 percentage points of share. Last year alone, specialty food producers took 0.7 points of share away from the major food players.

But will these acquisitions be successful? Can these smaller brands keep their appeal once consumers discover that big food is now pulling the strings? Consider the case of PepsiCo. (PEP) subsidiary Naked Juices. In 2013, the juice maker had to remove the term "all natural" from its labels after a lawsuit said it used synthetic ingredients in its beverages.

And there's the story of Kellogg (K) and Kashi. Kellogg acquired the natural, grain-heavy food company back in 2000 and enjoyed several years of mounting popularity and growing sales. Then, in 2012, a Rhode Island grocery store realized Kashi featured non-organic, genetically modified ingredients, which seemed at odds with the brand's natural image, and people got mad. Sales were already on the decline, and the scandal didn't help.

So yes, there's opportunity to make money, but there's also risk involved with taking an independent brand and making it "too mainstream." Below is a list of major food corporations that are trying to capitalize in the shift in consumer behavior by acquiring smaller, niche and sometimes healthy brands. Each of the listed stocks has reported rising diluted normalized earnings per share (EPS) for the past three consecutive years

Click on the interactive chart to view data over time. 

 

1. Anheuser-Busch InBev SA/NV (BUD, Earnings, Analysts, Financials): Engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. Market cap at $192.67B, most recent closing price at $120.56.

Diluted normalized EPS increased from 3.26 to 4.24 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS increased from 4.24 to 4.41 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS increased from 4.41 to 8.65 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

Anheuser-Busch has snatched up a handful of craft breweries over the last couple of years, including Goose Island in 2011, Blue Point in February 2014 and 10 Barrell in November 2014.

 

2. The Hain Celestial Group Inc. (HAIN, Earnings, Analysts, Financials): With its subsidiaries, manufactures, markets, distributes, and sells natural and organic food, and personal care products in the United States and internationally. Market cap at $6.49B, most recent closing price at $63.27.

Diluted normalized EPS increased from 1.32 to 1.95 during the first time interval (12 months ending 2012-06-30 vs. 12 months ending 2011-06-30).

For the second time interval, diluted normalized EPS increased from 1.95 to 2.74 (12 months ending 2013-06-30 vs. 12 months ending 2012-06-30).

And for the last time interval, the EPS increased from 2.74 to 3 (12 months ending 2014-06-30 vs. 12 months ending 2013-06-30).

 Hain Celestial owns several prominent organic brands, including Arrowhead Mills, Almond Dream, Rice Dream, Soy Dream and Celestial Seasonings.

 

3. Hormel Foods Corporation (HRL, Earnings, Analysts, Financials): Produces and markets various meat and food products in the United States and Internationally. Market cap at $15.11B, most recent closing price at $57.22.

Diluted normalized EPS increased from 1.74 to 1.86 during the first time interval (52 weeks ending 2012-10-28 vs. 52 weeks ending 2011-10-30).

For the second time interval, diluted normalized EPS increased from 1.86 to 1.95 (52 weeks ending 2013-10-27 vs. 52 weeks ending 2012-10-28).

And for the last time interval, the EPS increased from 1.95 to 2.23 (52 weeks ending 2014-10-26 vs. 52 weeks ending 2013-10-27).

Hormel is acquiring Applegate Farms.

 

(List compiled by Mary-Lynn Cesar. EPS data sourced from Yahoo! Finance. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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11 (o): [object Object] WSODIssue (s): |79167|183886|40431866 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Michael Kors is no longer red hot Link (s): http://folionation.squarespace.com/news/2015/6/1/michael-kors-is-no-longer-red-hot.html Thumbnail (s): DocumentDate_raw (n): 1433177940000 DocumentDate (s): June 1, 2015 DocumentDate_smart (s): 20 hours ago DocumentKey (s): 1107-290734296785735361147-0JNVU861AS9G16BIDP09NJSV91 ContentType (s): Article TrackingPixel (s): Teaser (s):

It seemed like everyone from fashionistas to suburbanites loved Michael Kors. Looks like that's no longer true.

Michael Kors (KORS) shareholders ended May with a bad week. Over the span of four days, the stock tumbled from $60.64 to $45.53. The nearly 25 percent plunge was a reaction to the luxury lifestyle brand’s fourth-quarter results, which were released on May 27. With the sharp drop, the stock could have value.

Fourth-quarter revenue for Michael Kors looked fine. It rose 23.3 percent year-over-year, and 17.8 percent when the currency fluctuation is excluded. Earnings of $0.90 per share were a 23.1 percent improvement over last year.

However, though net retail sales grew by 21 percent, same-store sales fell 1.7 percent. In North America, excluding currency fluctuations, same-store sales slid 5.8 percent. Bloomberg reports that analysts had expected a 3 percent increase. Gross profit also fell 150 basis points, or 1.5 percent, from the fourth quarter to 58.4 percent.

Buying Michael Kors on the dip might work if the stock bounces back, but expect negative sentiment to hurt the stock for a while. Analysts might revise estimates downward, especially after the company gave a weak forecast for fiscal 2016, driving the stock further down still. Investors may sell, although the tax-loss selling doesn’t happen until the end of the year.

Michael Kors isn’t the only high-end brand having a hard time, Coach Inc. (COH) and Kate Spade & Co. (KATE) aren’t doing well either.

The problem with Coach is that it is no longer the “it” brand. In the third quarter, the firm reported a drop in sales: Coach generated $929 million in sales, compared to $1.1 billion from the previous year. Kate Spade reported revenue of $240 million, up 28.4 percent year-over year, though it earned just $0.03 per share.

Among the premium brands, Michael Kors has the lowest forward P/E of 10.07. Coach’s forward P/E stands at 17.88, and Kate Spade has a forward P/E of 27.87. Michael Kors’ PEG ratio is 0.41, which is still lower than Kate Spade’s 0.84. Even though selling pressure is still high, investors with a long-term time horizon might consider adding Michael Kors stock in their value portfolio.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Coach Inc. (COH, Earnings, Analysts, Financials): Engages in the design and marketing of accessories and gifts for men and women in the United States and internationally. Market cap at $9.77B, most recent closing price at $35.37.

 

 

2. Kate Spade & Company (KATE, Earnings, Analysts, Financials): Designs and markets apparel and accessories. Market cap at $3.16B, most recent closing price at $24.78.

 

 

3. Michael Kors Holdings Limited (KORS, Earnings, Analysts, Financials): Engages in the design, marketing, distribution, and retailing of branded womenÂ’s apparel and accessories, and men’s apparel. Market cap at $9.24B, most recent closing price at $46.50.

 

 

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ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

12 (o): [object Object] WSODIssue (s): |53894|2837268|105361|143857|149661|201895 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Shrink, shrank, shrunk: a picture of the US economy Link (s): http://folionation.squarespace.com/news/2015/5/29/shrink-shrank-shrunk-a-picture-of-the-us-economy.html Thumbnail (s): DocumentDate_raw (n): 1432922100000 DocumentDate (s): May 29, 2015 DocumentDate_smart (s): May 29, 2015 DocumentKey (s): 1107-290734296785735358792-45TFA50IUMBTJHF2GQH4T120DL ContentType (s): Article TrackingPixel (s): Teaser (s):

Surprise! The US economy contracted in the first quarter, which makes the recovery look less like a sure thing.

The Commerce Department kicked off the weekend with a bit of bad news: it turns out that instead of growing by 0.2 percent, the US economy actually shrank by 0.7 percent in the first three months of the year. 

A bad winter, the strengthening dollar, spending-averse consumers and a shutdown at West Coast ports contributed to the contraction. On the plus side, The Wall Street Journal reports that the downward revision fell short of the 1 percent contraction consensus estimate.

Companies spent less money on business investment in the first quarter, resulting in a 2.8 percent decline. Consumer spending grew a measly 1.8 percent, way below the 4.4 percent growth achieved during the fourth quarter of 2014. Exports fell by 7.6 percent, and exports of goods plunged 14 percent—a six-year record. The trade deficit, which was severely impacted by the strong dollar and West Coast ports shutdown, also grew.

The US economy is expected to rebound in the second quarter. Bank of the West Chief Economist Scott Anderson told The New York Times that he expects growth to reach just over 2 percent this quarter, echoing most economists' projections of 2 to 3 percent growth.

But some of the issues that contributed to the first-quarter contraction are still around and could continue to hurt companies. Reuters writes that Johnson & Johnson (JNJ), Microsoft (MSFT) and Procter & Gamble (PG) have all said the strong dollar will negatively impact sales and profits. 

Below is a list of other US stocks that could really see a drop in profit and revenue thanks to a stronger dollar. These stocks were already having some difficulty selling their goods, and a stronger dollar makes the products more expensive for overseas customers.

Each of the stocks has the following traits: slower growth in revenue than inventory over the last year, an increase in inventory as a portion of current assets and falling diluted normalized earnings per share (EPS) for the past three consecutive years.  

Click on the interactive chart to view data over time. 

1. Atmel Corporation (ATML, Earnings, Analysts, Financials): Designs, develops, manufactures, and markets a range of semiconductor integrated circuit (IC) products. Market cap at $3.62B, most recent closing price at $8.76.

Revenue grew by -5.65% during the most recent quarter ($318.29M vs. $337.36M y/y). Inventory grew by 10.84% during the same time period ($274.19M vs. $247.38M y/y). Inventory, as a percentage of current assets, increased from 31.2% to 36.4% during the most recent quarter (comparing 3 months ending 2015-03-31 to 3 months ending 2014-03-31).

Diluted normalized EPS decreased from 1.05 to 0.66 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS decreased from 0.66 to 0.13 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS decreased from 0.13 to 0.06 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31). 

 

2. AtriCure Inc. (ATRC, Earnings, Analysts, Financials): Develops, manufactures, and sells cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac tissue. Market cap at $643.43M, most recent closing price at $22.59.

Revenue grew by 20.28% during the most recent quarter ($29.89M vs. $24.85M y/y). Inventory grew by 36.37% during the same time period ($15.11M vs. $11.08M y/y). Inventory, as a percentage of current assets, increased from 10.33% to 16.17% during the most recent quarter (comparing 3 months ending 2015-03-31 to 3 months ending 2014-03-31).

Diluted normalized EPS decreased from -0.25 to -0.35 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS decreased from -0.35 to -0.47 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS decreased from -0.47 to -0.56 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

 

3. Fairchild Semiconductor International Inc. (FCS, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells power analog, power discrete, and non-power semiconductor solutions worldwide. Market cap at $2.33B, most recent closing price at $20.10.

Revenue grew by 3.37% during the most recent quarter ($355.70M vs. $344.10M y/y). Inventory grew by 19.87% during the same time period ($266.00M vs. $221.90M y/y). Inventory, as a percentage of current assets, increased from 29.84% to 35.23% during the most recent quarter (comparing 13 weeks ending 2015-03-29 to 13 weeks ending 2014-03-30).

Diluted normalized EPS decreased from 1.32 to 1.14 during the first time interval (52 weeks ending 2011-12-25 vs. 52 weeks ending 2010-12-26).

For the second time interval, diluted normalized EPS decreased from 1.14 to 0.27 (53 weeks ending 2012-12-30 vs. 52 weeks ending 2011-12-25).

And for the last time interval, the EPS decreased from 0.27 to 0.05 (52 weeks ending 2013-12-29 vs. 53 weeks ending 2012-12-30).

 

4. Haemonetics Corporation (HAE, Earnings, Analysts, Financials): Provides blood management solutions to plasma and blood collectors, blood banks, hospitals and hospital service providers, and health organizations in the United States and internationally. Market cap at $2.13B, most recent closing price at $41.73.

Revenue grew by -6.06% during the most recent quarter ($226.48M vs. $241.09M y/y). Inventory grew by 6.79% during the same time period ($211.08M vs. $197.66M y/y). Inventory, as a percentage of current assets, increased from 31.73% to 37.16% during the most recent quarter (comparing 13 weeks ending 2015-03-28 to 13 weeks ending 2014-03-29).

Diluted normalized EPS decreased from 1.65 to 1.51 during the first time interval (52 weeks ending 2012-03-31 vs. 52 weeks ending 2011-04-02).

For the second time interval, diluted normalized EPS decreased from 1.51 to 0.81 (52 weeks ending 2013-03-30 vs. 52 weeks ending 2012-03-31).

And for the last time interval, the EPS decreased from 0.81 to 0.7 (52 weeks ending 2014-03-29 vs. 52 weeks ending 2013-03-30).

 

5. Harsco Corporation (HSC, Earnings, Analysts, Financials): Provides engineered solutions to industrial customers worldwide. Market cap at $1.28B, most recent closing price at $16.10.

Revenue grew by -11.88% during the most recent quarter ($451.58M vs. $512.48M y/y). Inventory grew by 16.68% during the same time period ($194.60M vs. $166.78M y/y). Inventory, as a percentage of current assets, increased from 21.47% to 27.72% during the most recent quarter (comparing 3 months ending 2015-03-31 to 3 months ending 2014-03-31).

Diluted normalized EPS decreased from 2.01 to 1.94 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS decreased from 1.94 to 0.44 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS decreased from 0.44 to -0.34 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

 

6. MKS Instruments Inc. (MKSI, Earnings, Analysts, Financials): Provides instruments, subsystems, and process control solutions that measure, control, power, monitor, and analyze parameters of manufacturing processes worldwide. Market cap at $2.01B, most recent closing price at $37.76.

Revenue grew by 3.63% during the most recent quarter ($213.84M vs. $206.35M y/y). Inventory grew by 11.46% during the same time period ($164.41M vs. $147.51M y/y). Inventory, as a percentage of current assets, increased from 16.47% to 24.34% during the most recent quarter (comparing 3 months ending 2015-03-31 to 3 months ending 2014-03-31).

Diluted normalized EPS decreased from 2.6 to 2.42 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS decreased from 2.42 to 0.99 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS decreased from 0.99 to 0.67 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31). 

 

(List compiled by Mary-Lynn Cesar. Accounting data sourced from Google Finance. EPS data sourced from Yahoo! Finance. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

13 (o): [object Object] WSODIssue (s): |81093|282728 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): LED leader Cree is spinning off part of the company Link (s): http://folionation.squarespace.com/news/2015/5/29/led-leader-cree-is-spinning-off-part-of-the-company.html Thumbnail (s): DocumentDate_raw (n): 1432910460000 DocumentDate (s): May 29, 2015 DocumentDate_smart (s): May 29, 2015 DocumentKey (s): 1107-290734296785735358489-7MHDF5PAN5M08KPCJ3C44RH8TL ContentType (s): Article TrackingPixel (s): Teaser (s):

LED lighting is growing in popularity, so why does market leader Cree have to spin off part of its business?

LED lighting suppliers are facing dark times. As Bloomberg notes, competition is growing while profit margins are falling. Cree, Inc. (CREE), which is down 36 percent over one year, is a leader in LED chip, components and silicon carbide (SiC) materials. The LED supplier is still richly valued at 24 times forward earnings, and management is determined to boost shareholder value. To do this, the firm announced on May 18 that it is spinning off a portion of its business.  Will the move work?

Cree will spin off its Power and RF unit by offering subsidiary Class A common stock. In theory, the semiconductor stock’s overall value should go up, so long as the market assigns a respectable price multiple to the new, publicly traded company. The market must also believe Cree will still hold value as a parent company to the spinoff. At $30.47, the fair value for Cree should be sustainable: simplifying the business structure and having two units each focused on a specific market is a positive development.

However, the spinoff does not change anything fundamentally about Cree. The firm is still struggling in the consumer space, and RF/Power is a very small contributor to Cree’s bottom line. The stock is still expensive, and there may be better semiconductor product plays to consider.

Take Vishay Intertechnology (VSH), for example. With a market capitalization of $1.92 billion, Vishay is relatively close in size to Cree, which has a $3.37 billion market cap. Vishay also boasts a much lower forward P/E of 11.81.

While Cree is spinning off parts of its business, Vishay is expanding its operations. In December, Vishay completed its acquisition of Capella, an optical sensor maker for $201.3 million. Capella makes UV and IR sensors which is used in a variety of things, like PCs, Phones, and automotive systems. Considering that some of the biggest names in lighting—Royal Philips NV (PHG) and General Electric (GE)—have left or are leaving lighting altogether, Vishay's strategy might be a wise one.

Written by Chris Lau


Click on the interactive chart to view data over time. 

1. Cree Inc. (CREE, Earnings, Analysts, Financials): Develops and manufactures light emitting diode (LED) products, silicon carbide (SiC) and gallium nitride (GaN) material products, and power and radio frequency (RF) products. Market cap at $3.42B, most recent closing price at $30.92.

 

 

2. Vishay Intertechnology Inc. (VSH, Earnings, Analysts, Financials): Manufactures and supplies semiconductors and passive electronic components in the United States, Europe, and Asia. Market cap at $1.92B, most recent closing price at $13.04.

 

 

(Monthly return data soured from Zacks Investment Research. All other data sourced from FINVIZ.)

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14 (o): [object Object] WSODIssue (s): |38401|260106|223505 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Open Text is embracing the cloud at whatever cost Link (s): http://folionation.squarespace.com/news/2015/5/28/open-text-is-embracing-the-cloud-at-whatever-cost.html Thumbnail (s): DocumentDate_raw (n): 1432838580000 DocumentDate (s): May 28, 2015 DocumentDate_smart (s): May 28, 2015 DocumentKey (s): 1107-290734296785735357542-0ESFREKQAS8C8IA5546C3HNGN8 ContentType (s): Article TrackingPixel (s): Teaser (s):

Open Text disappointed Wall Street its quarterly guidance. Hey, no one said moving to the cloud was easy.

One weak quarter is all it takes for a company’s stock to tank. Open Text (OTEX), a software company based in Canada, reported weak fiscal third-quarter results at the end of April and, on May 20, forecast a weak outlook for the current quarter and announced pending job cuts. After drifting downward throughout 2015, the stock fell sharply from $49 and closed at $42.45 on May 21.

One of the reasons for Open Text’s big miss is the strong US dollar. This alone will cost the company $0.11 per share. Open Text is expecting revenue between $440 million to $455 million and adjusted earnings of $0.64 to $0.72 per share in its fiscal fourth quarter. The consensus estimate before the announcement was earnings of $0.89 per share on revenue of $487.8 million.

Open Text still has some appeal. Like Adobe Systems (ADBE) and Nuance Communications (NUAN), the company is shifting from license sales to cloud software sales. Furthermore, Open Text has never missed expectations, and other firms shifting towards the cloud suffered equally when it issued the weak guidance last week.

Still, there are risks. Nuance, which makes voice recognition solutions, is slowly realigning its business solutions on the cloud. Only Adobe is highly successful at the moment. The Photoshop maker convinced its users to buy yearly licenses with its Creative Cloud offering. Adobe's superior products and lack of competition have resulted in strong sales, which rose 11 percent year over year to $1.11 billion in the first fiscal quarter.

Open Text does not face that much competition in its market of enterprise content, business process and customer experience management. Revenue from the company’s first cloud services was $143.8 million in the fiscal third quarter, up 12 percent year over year. Customer service support revenue grew to $184.3 million, up 2 percent year-over-year and 10 percent on a constant-currency basis. Gross margins from support were a healthy 87 percent.

Ultimately, despite currency headwinds and slower growth this quarter, Open Text’s revenue from cloud services is improving. After the stock’s nearly 26 percent drop in 2015, it may prove a possible rebound play for investors.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Adobe Systems Incorporated (ADBE, Earnings, Analysts, Financials): Operates as a diversified software company in the Americas, Europe, the Middle East, Africa, and Asia. Market cap at $40.10B, most recent closing price at $80.16.

 

 

2. Nuance Communications Inc. (NUAN, Earnings, Analysts, Financials): Provides voice and language solutions for businesses and consumers worldwide. Market cap at $5.34B, most recent closing price at $17.0.

 

 

3. Open Text Corporation (OTEX, Earnings, Analysts, Financials): Develops, markets, sells, licenses, and supports enterprise content management (ECM) solutions primarily in North America and Europe. Market cap at $5.23B, most recent closing price at $42.43.

 

 

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Watch out, Sepp! FIFA has been dealt a red card by the US Justice Department in a corruption investigation.

Early Wednesday morning, Swiss police arrested seven senior FIFA officials at a Zurich hotel in connection with a US Justice Department investigation into corruption at soccer's top governing body. By late morning, the Justice Department said it had indicted 14 individuals—nine current and former FIFA officials and five corporate executives—for bribery, racketeering and money laundering, among other charges.

According to the 161-page, 47-count indictment, the 14 defendants, along with 25 co-conspirators, participated in numerous schemes over the last 24 years to make themselves rich. And they allegedly did, to the tune of "well over $150 million."

Most of the charges in Wednesday's indictment concern tournaments and related activities involving North and South America, namely CONCACAF (Confederation of North, Central America and Caribbean Association Football) and CONMEBOL (South American Football Confederation). However, the indictment also mentions bribes and kickbacks between a major U.S. athletic company and the Brazilian national soccer federation, South Africa's selection as the host of the 2010 World Cup and the 2011 FIFA presidential election, which current president, Josep "Sepp" Blatter won. 

Speaking of presidential elections, Wednesday's high-profile arrests come just two days before FIFA's next one, and Blatter is widely expected to win it. Blatter, who is seeking his fourth term as the head of FIFA, has been at the center of controversy for years despite not being charged with anything today. His right-hand man, FIFA Vice President and CONCACAF President Jeffrey Webb, wasn't so lucky. 

The Wall Street Journal has a collection of some of Blatter's scandals for the unfamiliar. Highlights include a lawsuit from FIFA executive committee members over alleged financial mismanagement, facepalm-worthy statements about female soccer players and homosexual fans and, most recently, the awarding of the 2018 and 2022 World Cup to Russia and Qatar, respectively. According to the Journal, Swiss authorities are launching a separate criminal investigation into FIFA's latest World Cup host choices.

Until Wednesday morning, FIFA's decision to hold the World Cup in Russia and Qatar had been its biggest and costliest issue. Castrol, Continental, Emirates, Johnson & Johnson (JNJ) and Sony (SNEstopped sponsoring the organization at the end of 2014 when their contracts expired. No formal reasons were given for the parting of ways, but The Telegraph reports that Sony had expressed concerned over FIFA's alleged wrongdoing in the 2018 and 2022 World Cup host selection process.

So where does that leave FIFA's current sponsors? Will they leave or stay, hoping this all blows over?

Click on the interactive chart to view data over time. 

1. Anheuser-Busch InBev SA/NV (BUD, Earnings, Analysts, Financials): Engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. Market cap at $195.89B, most recent closing price at $120.06.

The stock is up 1.99% as of 2:20PM.

Subsidiary Budweiser said that it is closely monitoring the developing FIFA situation.

 

2. The Coca-Cola Company (KO, Earnings, Analysts, Financials): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $179.34B, most recent closing price at $40.99.

The stock is up 0.30% as of 2:20PM.

No statement has been issued.

 

3. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $94.50B, most recent closing price at $98.46.

The stock is up 0.01% as of 2:20PM.

McDonald's said it's in contact with FIFA over the "extremely concerning" corruption allegations, stating that it "takes matters of ethics and corruption very seriously."

 

4. Visa Inc. (V, Earnings, Analysts, Financials): Operates retail electronic payments network worldwide. Market cap at $169.67B, most recent closing price at $68.54.

The stock is up 1.17% as of 2:20PM.

Visa has already expressed "grave concern" to FIFA earlier this month over migrant workers' rights in Qatar in the leadup to the 2022 World Cup.

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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