BloggingStocks

Are we in for Bush vs. Carter, and what stocks would fare better under each?

Sheldon Liber — 2008-06-11T15:45:00+00:00

Filed under: Rants and raves, Cisco Systems (CSCO), Pfizer (PFE), Coca-Cola (KO), Exxon Mobil (XOM), JPMorgan Chase (JPM), Adobe Systems (ADBE), Automatic Data Proc (ADP), Avon Products (AVP), Black and Decker (BDK), Chevron Corp (CVX), Costco Wholesale (COST), Goldman Sachs Group (GS), Cardinal Health (CAH), Kraft Foods'A' (KFT), Politics, Suntech Power Hldgs ADS (STP), General Dynamics Corp (GD), Northrop Grumman (NOC), Raytheon Company (RTN)

For the first time Monday I heard John McCain comparing Barack Obama to Jimmy Carter. I had heard this before in other arenas, but not from McCain. I guess that despite these two presidential candidates pledging to the American people to bring change and resist politics as usual, they are both, as usual as one could get.

Obama is being shaped by the pressures of running for office and to believe otherwise is delusional. I suppose one has to have hope but the effects of the campaign are becoming clear. Obama has been painting McCain as an extension of Bush, which is nonsense, and now in a typical tit-for-tat response, McCain is filling the air with Carter references.

Both McCain and Obama are wrong in their assessments of their opponents and they are becoming commoners to resort to the bottom of the barrel campaign techniques used in every campaign for most of our nation's proud history. Obama gave up the high ground too easily and McCain has decided he can sling mud with the best of them.

Stick to the issues fellas, or neither one of you will have any credibility left to fight the inflation, sinking dollar, war, oil & food prices, federal deficit, trade imbalances, national infrastructure, health care and Social Security nightmares and a multitude of other issues one of you will be saddled with.

How will either affect stock prices. The market is full of assumptions. If McCain wins, the defense sector, energy, health care, financials and high yielding stocks are probably better bets. Some examples are:

If Obama wins, better bets might be alternative energy, high-tech, consumer staples, retail and non-dividend paying stocks (think taxes). Some examples are:

These are just a few stocks from among those that have been reviewed on BloggingStocks and not current recommendations. They are just meant to give a little flavor to what I sense as market sentiment, and to stimulate some discussion.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

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Blackstone nabs a new CFO

Tom Taulli — 2008-06-10T18:05:00+00:00

Filed under: Private equity, Black and Decker (BDK), Merrill Lynch (MER), Lehman Br Holdings (LEH)

Laurence Tosi is certainly well educated, with an MBA and JD (from Georgetown University). Only 40 years old, he has served as Merrill Lynch & Co., Inc. (NYSE: MER)'s chief operator officer of global markets and investment banking.

Well, now he has a new gig: the chief financial officer of The Blackstone Group LLP (NYSE: BX).

With the turmoil on Wall Street, there has been a lot of defections lately. For example, Lazard Ltd. (NYSE: LAZ) investment banker, George Bilicic, moved over to KKR. There was also Lehman Brother Holdings, Inc. (NYSE: LEH)'s investment banker, Gary Weinstein, who took a spot at Providence Equity Partners.

As for Tosi, he seems to be making a good move. After all, Blackstone's stock price has deflated from its IPO highs. In other words, Tosi will get a nice options package.

Moreover, Blackstone doesn't have the balance sheet problems that currently plague traditional Wall Street investment banks. This means the firm has lots of flexibility to snag deals -- which, over the next few years, could make for some nice returns.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Is Toro worth a look?

Steven Mallas — 2008-05-23T09:35:00+00:00

Filed under: Earnings reports, Black and Decker (BDK), Deere and Co (DE)

Toro (NYSE: TTC), maker of lawn and snow-throwing equipment and competitor of Deere (NYSE: DE) and Black and Decker (NYSE: BDK), seems to be hitting a rough patch because of the weakened economy. The top line decreased to about $639 million in net sales for the second quarter. Earnings per share skidded almost 10% to $1.60. That was good enough to beat expectations by a penny, as Briefing.com pointed out, but make no mistake about it this was not an impressive quarter.

The company also sported negative operational cash flow. Although Toro used less cash, it still needed $111 million to keep corporate activities going. A look at the most recent 10-K shows that Toro has been generating positive annual cash flows over the last few years, so I wouldn't necessarily worry about this cash-flow statement for now, as it most likely will improve as the year goes on. As a matter of fact, management said in the earnings release that it was confident about the cash flow and intended to repurchase more shares.

But Toro doesn't expect much in the way of growth for the coming year. Guidance calls for flat top-line growth in fiscal 2008 and for net earnings per share to either be flat or to fall 5%. Not an inspirational forecast, let me tell you. With the stock pretty near a 52-week low and with the dividend yield not as high as I'd like, I don't see a reason why an investor should be fooling with Toro right now.

Yes, I do see that management seems confident in the future, and who knows, you could be getting a value here since this is a powerful brand, but I think the shares might be pressured in the coming months if energy costs continue to rise and inflation remains a concern (interestingly enough, Toro shares did rebound in the after-hours session on Thursday after being sold throughout the day in regular trading). No, this isn't the end of Toro, but for me, I'm not inclined to put money to work here until I see at least some strength in the stock.

Disclosure: I don't own shares in any company mentioned; positions can change at any time.

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Black & Decker knows that housing won't be in a slump forever

Joseph Lazzaro — 2008-05-02T17:31:00+00:00

Filed under: Black and Decker (BDK), Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Black & Decker is worth a review.

The Black & Decker Corporation (NYSE: BDK) is a global manufacturer and marketer of power tools and accessories, hardware, home improvement products, and fastening systems.

In general, analysts like BDK's recent restructuring to improve productivity and operating margins. For the most part, analysts are forecasting low-single-digit sales growth for 2008 and 2009, weighed down by the housing sector's doldrums.

Meanwhile, BDK's fastening/assembly unit business should somewhat offset housing's likely sub-par performance, and register improving mid-single-digit sales growth. The Reuters FY 2008/FY 2009 EPS consensus estimates for BDK are $5.43 to $5.86.

Further, the argument forwarded here is that BDK is not likely to remain at its cheap price (p/e 10) for much longer: it may not be the end of the housing slump, or even the beginning of the end, but, to quote the late British Prime Minister Winston Churchill, it may be the end of the beginning. If that's the case, getting ahead of the pack with BDK is prudent.

The risks? Analysts are keeping an eye on BDK's core component/raw material costs. A sustained U.S. economic downturn would also, obviously, hurt BDK's results. Given recent economic data points, a slowdown is a not a low-probability concern: still, with BDK's demonstrated business model, power tool position, and p/e of about 10, the risk/return here is very attractive.

The First Call mean rating for BDK is: Hold [10 firms]. Mean 2008 target: $76.00 [high: $92, low: $62].

Stock Analysis: Black & Decker is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from BDK's shares. Sell/Stop Loss if you were to purchase shares in this company: $48.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

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Fund roads & bridges NOT mad money stimulus

Sheldon Liber — 2008-03-04T17:43:00+00:00

Filed under: Management, Rants and raves, Competitive strategy, General Electric (GE), Home Depot (HD), Scandals, Caterpillar (CAT), Alcoa Inc (AA), Black and Decker (BDK), Lowe's Cos (LOW), U.S. Steel (X), Nucor Corp (NUE), Reliance Steel and Aluminum (RS), Johnson Controls (JCI), Deere and Co (DE), Honeywell Intl (HON), United Technologies (UTX), BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP), Freep't McMoRan Copper (FCX), Politics, Commodities

It is alarming to me that the same people who screw up the economy (or stand by watching) are the ones that are now promoting the remedies. They have proven without a shadow of a doubt that this is not their strong suit. The proposed economic stimulus package has bi-partisan support and calls for an estimated $156 billion of tax rebates ranging from $500 to $1,000 (+ $300 for each child) that might show up in May.

If we are going to add on to our already humungous joke of national debt, than I want to invest this capital in something that will bring a higher return on invested capital (ROIC) than the paltry one time mad money. That expenditure should be for national infrastructure projects like roadways, bridges, tunnels, and waterways.

We have all heard about the poor condition of our national infrastructure and the hundreds of billions of dollars of repair work and replacement that is desperately needed.

This alternative would bring visible results that every single person in the country would benefit from and improved linkages always stimulate economic growth. Road improvements even reduce fuel consumption by shortening routes and reducing friction both strategically and physically.

Furthermore, this form of stimulus goes directly to support middle and lower income workers, the ones hurt by the severe downturn in the construction industry. The government, like private enterprise, benefits when it can borrow cheaply and invest at higher returns. This has been historically true of infrastructure projects.

Giving people a one time hand out is like giving your kids some cash for the week end. They will enjoy it while it lasts and it won't last long. However, building something usable will have a benefit for several generations.

If you are interested in a few stocks that would benefit from this type of investment you might add the following to your watch list:

Alcoa Inc (NYSE: AA) -- aluminum
BHP Billiton Ltd ADR (NYSE: BHP) -- raw materials
The Black & Decker Corporation (NYSE: BDK) -- hand tools
Caterpillar Inc. (NYSE: CAT) -- heavy equipment
Cemex SAB de CV (ADR) (NYSE: CX) -- concrete
Deere & Company (NYSE: DE) -- heavy equipment
Freeport McMoRan Copper (NYSE: FCX) -- raw materials
General Electric Company (NYSE: GE) -- building systems
The Home Depot, Inc. (NYSE: HD) -- construction supply
Honeywell International, Inc. (NYSE: HON) -- building systems
Jacobs Engineering Group, Inc. (NYSE: JEC) -- engineering
Johnson Controls, Inc. (NYSE: JCI) -- building systems
Lowe's Companies, Inc. (NYSE: LOW) -- construction supply
Nucor Corporation (NYSE: NUE) -- steel
Reliance Steel & Aluminum (NYSE: RS) -- specialty metals
Rio Tinto plc (ADR) (NYSE: RTP) -- raw materials
United States Steel Corporation (NYSE: X) -- steel
United Technologies Corporation (NYSE: UTX) -- building systems
URS Corporation (NYSE: URS) -- engineering

All of these do not present the same value and some of them, being conglomerates will be effected less than more focused companies. For example, I would expect CX or NUE to receive more benefit than GE or UTX.

On a related note: Suburban slums -- city centers being revitalized

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of any of these stocks except for CX. RS is one of my 2008 picks.

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Cramer on BloggingStocks: Someone will lead the inevitable turnaround

Jim Cramer — 2008-02-21T12:29:00+00:00

Filed under: Market matters, Diageo plc (DEO), Black and Decker (BDK), Fortune Brands (FO), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says these are the stocks that you should watch.

Some stocks have just been totally given up on, as if nothing good can ever happen to them. Check out Masco (NYSE: MAS) (Cramer's Take) , for example. Masco's a great company, always has been -- a dominant supplier to the housing industry, both remodel and original. This company, which MAKES money, is selling at almost a 5% yield and no one cares.

Or how about Fortune Brands (NYSE: FO) (Cramer's Take)? It has a terrific housing component -- dominant player -- and one of the best spirits businesses. We found out from Diageo (NYSE: DEO) recently that they have a great business in spirits, and the company may be on the verge of getting Absolut, a fantastic brand. The stock trades at an amazingly low multiple. Or consider Black & Decker (NYSE: BDK) (Cramer's Take) , one the great innovators with a classically pro-shareholder bias.

These companies are making good money in the worst environment imaginable. They have decent balance sheets. When this period ends, they will be dominant players, taking share from everyone.

But the next quarter will be atrocious for all of them, and the comparisons don't get good until the end of the year. If you think that we are going to be out of this mess by year-end or even by next year, you would consider Masco with its great yield. You would have to realize that BDK, if it goes down more, could be something worth just $3 billion and change to a European. If Fortune gets Absolut, the amount of business that is non-housing goes up dramatically.

Of course, no one wants to hear any positives on these stocks. But it is important to point out that when the Fed cuts and cuts you have winners here.

Random musings: I am aghast that people hate Inverness Medical (NYSE: IMA) (Cramer's Take) here, which is a quintessential long-term growth diagnostic stock that has simply made too many acquisitions and needs to rationalize which it will. But the momentum guys are showing NO MERCY! I like stocks that are cut in half. I sold some much higher for Action Alerts PLUS, and I want to buy that stock back (as I told subscribers), but, alas, I am restricted. I am a making a bunch of moves that could be interesting to you here. ...

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long IMA.

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Black & Decker's philosophy: Power to the people

Joseph Lazzaro — 2008-02-04T18:12:00+00:00

Filed under: Black and Decker (BDK), Stocks to Buy

The market's recent pullback has created several moderate-risk, bargain-basement-price stocks, and one worth an evaluation is Black & Decker.

The Black & Decker Corporation (NYSE: BDK) is a global manufacturer and marketer of power tools and accessories, hardware, home improvement products, and fastening systems.

Analysts expect BDK's recent restructuring to improve productivity and operating margins. In general, analysts are forecasting low-single-digit sales growth for 2008 and 2009, weighed down by the housing sector's doldrums.
Meanwhile, BDK's fastening/assembly unit business should improve somewhat, offsetting housing's likely sub-par performance, and register mid-single-digit sales growth. The Reuters FY 2008/FY 2009 EPS consensus estimates for BDK are $1.14 to $1.57.
The risks? Analysts are keeping an eye on BDK's core component/raw material costs. A sustained U.S. economic downturn would also, obviously, hurt BDK's results. Given recent economic data points, a slowdown is a not a low-probability concern. Still, with BDK's demonstrated business model, power tool position, and p/e of about 10, the risk/return here is attractive.

The First Call mean rating for BDK is: Hold [11 firms.] Mean 2008 target: $75.00 [high: $92, low: $62].

Stock Analysis: Black & Decker is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from BDK's shares. Sell / Stop Loss if you were to purchase shares in this company: $47.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

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Earnings highlights: McDonald's, Kraft, P&G, Verizon, MasterCard, 3M and others

Trey Thoelcke — 2008-02-03T09:40:00+00:00

Filed under: Earnings reports, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), McDonald's (MCD), 3M Corporation (MMM), American Express (AXP), Black and Decker (BDK), Hershey Co (HSY), MasterCard Inc'A' (MA), Procter and Gamble (PG), Verizon Communications (VZ), Eastman Kodak (EK), Tyson Foods'A' (TSN), Kraft Foods'A' (KFT), SanDisk Corp (SNDK)

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

American Express Co. (NYSE: AXP) reported a slip in profits and warned of slow growth in 2008.
Alberto-Culver (NYSE: ACV) returned to profitability after a spin-off and restructuring.
Avnet Inc. (NYSE: AVT) beat expectations and offered a revised forecast.
Black & Decker Corp. (NYSE: BDK) beat expectations but lowered its outlook due to the housing slump.
Eastman Kodak Co. (NYSE: EK) fell short of earnings estimates, sending shares lower.
Hershey Co. (NYSE: HSY) responded to disappointing results by announcing price increases.
Kraft Foods Inc. (NYSE: KFT) fourth-quarter profit fell on higher costs for raw materials.
Lenovo Group Ltd. (OTC: LNVGY) nearly tripled quarterly earnings on strong demand for PCs in Asia.
MasterCard Inc. (NYSE: MA) beat expectations, even after excluding a one-time investment gain.
McCormick & Co. (NYSE: MKC) posted solid results on strength in international markets.
McDonald's Corp. (NYSE: MCD) beat expectations, but reported flat same-store sales in December.
Procter & Gamble Co. (NYSE: PG) reported strong second-quarter results on strength in emerging markets.
SanDisk Corp. (NASDAQ: SNDK) reported a profit but missed revenue expectations.
Sherwin-Williams Co. (NYSE: SHW) missed estimates and lowered expectations for the next quarter.
3M Co. (NYSE: MMM) beat expectations despite a decline in profits.
Tyson Foods Inc. (NYSE: TSN) profits fell and it announced a plan to raise prices.
Verizon Communications Inc. (NYSE: VZ) met earnings estimates but fell short of revenue expectations.

For additional BloggingStocks earnings highlights, see Yahoo!, Google, Amazon, Countrywide, Merck, UBS and others and Exxon, Boeing, Halliburton, Sony, UPS, Honda and others.

Also, in the wake of earnings reports from Yahoo! (NASDAQ: YHOO) and Google (NASDAQ: GOOG), Microsoft Corp. (NASDAQ: MSFT) made a move for Yahoo! Rumor has Google going after AOL in response. Meanwhile, Timothy Sykes has some advice for buying stocks ahead of earnings reports.

Upcoming results to watch for include Archer Daniels Midland (NYSE: ADM), Yum Brands (NYSE: YUM), Walt Disney (NYSE: DIS), Cisco Systems (NASDAQ: CSCO), Time Warner (NYSE: TWX), and PepsiCo. (NYSE: PEP).

Visit AOL Money & Finance for more earnings coverage.

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Cramer on BloggingStocks: Huge money flood on a 50-point cut would lift stocks

Jim Cramer — 2008-01-30T09:00:00+00:00

Filed under: Yahoo! (YHOO), Market matters, Black and Decker (BDK), Lehman Br Holdings (LEH), Federal Reserve, Cramer on BloggingStocks, Recession

TheStreet.com's Jim Cramer says if we're flat or down ahead of the right Fed action today, several sectors will take off.

Every rate cut matters now. We are in that zone where money in can overwhelm existing stocks and move them up simply because there hasn't been a lot of new supply -- ex banking preferreds -- and the buybacks kick in.

Let's take the homebuilders. As crazy as it was, the homebuilders bought a huge amount of stock back, and the supply is unusually low. That means you get exaggerated moves as that money comes in from the sidelines.

Same with stocks like Whirlpool (NYSE: WHR) (Cramer's Take) or Black & Decker (NYSE: BDK) (Cramer's Take), where just a little bit of buying seems to move the stocks absurdly.

I think much of this is a function of money not getting a good return on the sidelines, and we see that the shrunken floats actually work.

There are tons of companies that have bought back stock in the last two years, and frankly, it didn't matter because money's been coming out of the stock market for years; the Fed's actions should be and are reversing that flow. (So many good things happen with low rates that the media never talks about.)

That's why I am inclined to buy any weakness we get today off a 50-basis-point cut, although I think the market could RIP on a down 50 if we are unchanged or down ahead of the meeting announcement. It is amazing, though, how lately we go right to the brink up 100 points, making things much tougher. As a betting person, I expect that the futures' burst upward will most likely preclude buying, so you do have to pick some things up on potential weakness this morning.

What would I buy? Financials, of course. Numbers go higher on a 50-basis-point cut.

Retail, too.

And last, industrials.

Anything less than 50 basis points and I would STILL BUY THE SAME STOCKS. I would just be careful of the blast of futures that might knock them down at a frightening speed.

Random musings: Lehman Brothers' (NYSE: LEH) (Cramer's Take) dividend boost goes far toward showing that this firm is not a mortgage house despite such characterizations. ... Yahoo! (NASDAQ: YHOO) (Cramer's Take) is really amazing. I cannot believe the lack of ability to monetize. It is amazing. Plus, how did they get so much staff? How did they get such poor gross margins? Why don't they put themselves up for sale? Anyone could do better with their pageviews except themselves ...

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Black & Decker (BDK) doesn't see housing recovery soon

Brent Archer — 2008-01-28T10:55:00+00:00

Filed under: Major movement, Earnings reports, Black and Decker (BDK), Options, Housing

Black & Decker Corp. (NYSE: BDK) posted this morning a fourth-quarter profit, excluding items, of $67.4 million, or $1.06 a share, ahead of analyst estimates of $1.03 per share. BDK shares are trading lower today, however, as the company also projected lower earnings for 2008, saying it doesn't expect a housing recovery in 2008. BDK now expects earnings of $1.10 to $1.20 per share for the first quarter, while analysts were expecting $1.40 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BDK.

After hitting a one-year high of $97.01 in July, the stock hit a one-year low of $63.35 earlier this month. This morning, BDK opened at $65.65. So far today the stock has hit a low of $65.65 and a high of $68.54. As of 10:15, BDK is trading at $67.80, down $2.18 (-3.1%). The chart for BDK looks bearish but improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a February bear-call credit spread above the $75 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make an 11.1% return in 2 months as long as BDK is below $75 at February expiration. Black & Decker would have to rise by more than 10% before we would start to lose money.

BDK hasn't been above $75 since December and has shown resistance around $72 recently. This trade could be risky if the Fed makes another big cut this week and home improvement stocks shoot upwards, but even if that happens, this position could be protected by resistance BDK might find at its 50 day moving average, which is currently around $75 and falling.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in BDK.

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Cramer on BloggingStocks: Why foreigners find U.S. buys so unattractive

Jim Cramer — 2007-11-21T08:56:00+00:00

Filed under: Black and Decker (BDK), Wachovia Corp (WB), Cramer on BloggingStocks

TheStreet.com's Jim Cramer says the poor outlook for this economy has stemmed the flood of takeovers from abroad we'd normally see in this kind of market.

Where are the Europeans? Where are the Asians? Where are the Middle Easterners? Are they all cowed into not buying our companies despite the decline in the dollar?

Consider that there have been only two deals above $10 billion this year: AstraZeneca (NYSE: AZN) (Cramer's Take), which bought Medimmune for $15 billion, and Saudi Basic Industries, which purchased GE Plastics for $12 billion. No one has taken advantage of the astounding decline in the U.S. dollar to buy up enterprises.

Take two that seem absurdly low: Whirlpool (NYSE: WHR) (Cramer's Take) and Black & Decker (NYSE: BDK) (Cramer's Take). Both companies have bought in an immense amount of stock. Both companies now trade at $5 billion in value. Give them a 25% haircut and you can see how much these name-brand companies are marked down.

But nobody cares.

The amazing thing about this decline in our currency is that it has not started a wave of acquisitions. It is one of the most astounding features because other than real estate you have seen no company take advantage of it. Surely an Electrolux would be pouncing on one of these, or any German industrial company.

I just pick those two because they are so ridiculously small in size now in euros. There are dozens of companies that fit that depiction.

Why hasn't it happened? I could have picked Wachovia (NYSE: WB) (Cramer's Take), which would make so much sense for an HSBC (NYSE: HBC) (Cramer's Take) to buy. (I had thought the Canadians would be down here buying but so far only Commerce (NYSE: CBH) (Cramer's Take) has attracted a bid.)

I have no idea.

Meanwhile, Celgene (NASDAQ: CELG) (Cramer's Take) buys a European company! (Celgene, by the way would have been up Tuesday -- look at Adam Feuerstein's great stuff on this -- if it weren't for the crummy tape.)

We could look to anywhere overseas to save us but the lack of interest is, alas, deafening.

Maybe it says more about what they think about us than anything else. Nobody seems to want to sell into our market. I have to say it won't always be that way but the lack of takers may be speaking to the horrendous domestic economy, one that has rates through the floor because of a dramatic lack of consumer demand.

This week's rumor round-up: New Motorola management coming soon?

Eric Buscemi — 2007-07-13T15:30:00+00:00

Filed under: Rumors, Motorola (MOT), Nokia Corp. (NOK), Sprint Nextel Corp (S), Black and Decker (BDK), FedEx Corp (FDX), NIKE, Inc'B' (NKE)

Just another Friday the 13th. Right? Like those odds? Let's see...

SPRINT NEXTELCORPORATION (NYSE: S)

Here's a talked about possible takeover target that deserves attention. The customer is always right, right? Not here. Complain about a problem, don't get results, complain some more, and bam!, they cut you off. That's right. Ask the first lucky 1,000 complainers-soon-to-be-former customers if they're happy with their new carrier. Bet they are. What this company needs is a new leader. And don't forget Mr. Gary D. Forsee, chairman, president and CEO, what goes around, comes around. Time to hand those triple titles over to new management and move out of the way. What a country.

MOTOROLA INC (NYSE: MOT)

Being number two not good enough? How about number three? It hasn't hit the newswire yet, but don't be surprised if Edward J. Zander, chairman and CEO, is pushed out. Another case of bad customer relations? Sure is. First falling behind Nokia Corporation (NYSE: NOK), and now Samsung, is a matter of a lack of sales in a booming wireless market. No easy fete, that. The company is losing money, shaking the management tree, and firing employees in droves. And they have no new phone coming out of the pipeline. The question is: When does Mr. Zander get his number called?

STILL FLYING AROUND

WADDELL & REED FINANCIAL INC (NYSE: WDR)

Is a private equity firm interested in this investment products company? Since last month, when Nuveen Investments Inc (NYSE: JNC) was sold to Madison Dearborn Partners, Waddell & Reed has been the subject of a buyout. The speculation hasn't gone away, and the stock continues to trade near its 52 week high of $27.80.

TRAVELZOO INC (NASDAQ: TZOO)

The talk of a sale gets louder.

BUZZ

FedEx Corporation (NYSE: FDX): Takeover talk continues as the stock climbs...Under Armour Inc (NYSE: UA): Will the next Nike Inc (NYSE: NKE) be bought?...BEA Systems Inc (NASDAQ: BEAS): Have they hired an investment banker to explore their options?...The Black & Decker Corporation (NYSE: BDK): Trading is trading near its 52 week high on word that it may be a takeover target...The E.W. Scripps Company (NYSE: SSP): Could they spin off their cable assets?

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Analyst downgrades 7-13-07: ALL, BDK, IMCL and RSH

Kevin Shult — 2007-07-13T11:00:00+00:00

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Bad news, Allstate Corp (ALL), Black and Decker (BDK), RadioShack Corp (RSH), ImClone Systems (IMCL)

MOST NOTEWORTHY: RadioShack Corp (RSH), Visual Sciences (VSCN), Alcan (AL), U.S. Celluar (USM) and Westwood One (WON) were today's noteworthy downgrades:

Banc of America downgraded shares of RadioShack (NYSE: RSH) to Sell from Neutral and lowered their target to $18 from $26 as they believe cuts to labor costs and advertising expenses will make it more difficult to overcome declining wireless trends.

Friedman Billings cut Visual Sciences (NASDAQ: VSCN) to Market Perform from Outperform on valuation. Citigroup downgraded Alcan to Hold from buy on the acquisition news.

Soleil cut U.S. Celluar (AMEX: USM) to Sell from Hold on valuation.

Westwood One (NYSE: WON) was downgraded to Sell from Hold at Citigroup based on management distractions and weak fundamentals...

OTHER DOWNGRADES:

Cowen removed ImClone Systems (NASDAQ: IMCL) from its Focus List, as the firm believes Erbitux is now more in line with consensus but said financials remain uninspiring.

Merrill cut Allstate (NYSE: ALL) and Black & Decker (NYSE: BDK) to Neutral from Buy.

USB downgraded Frontline (NYSE: FRO) to Reduce from Neutral.

Matrix cut Thor Industries (NYSE: THO) to Sell from Strong Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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MSC Industrial Direct: Industrial supplies right here, right now

Larry Schutts — 2007-07-09T14:47:00+00:00

Filed under: Earnings reports, 3M Corporation (MMM), Black and Decker (BDK), Kimberly-Clark (KMB), Dow Chemical (DOW), Technical Analysis, Honeywell Intl (HON), Eaton Corp (ETN), Goodyear Tire and Rubber (GT)

When you are in the industrial supply business, the competition is ubiquitous and differentiating yourself presents a particular challenge. There is a firm in in Melville, New York that solves the problem by stocking over a half a million products and guaranteeing same day shipment.

MSC Industrial Direct Co. (NYSE: MSM) markets a range of industrial products that includes cutting tools, measuring instruments, tooling components, fasteners, plumbing supplies, electrical supplies, flat stock, raw materials, abrasives, hand tools and power tools. Suppliers include 3M (NYSE: MMM), Black & Decker (NYSE: BDK), Dow Chemical (NYSE: DOW), Eaton Corporation (NYSE: ETN), Goodyear Tire & Rubber (NYSE: GT), Honeywell International (NYSE: HON) and Kimberly-Clark (NYSE: KMB). The company serves nearly 350,000 customers, via a master catalog, supplemental publications, telemarketing and the internet.

The firm surprised the Street late last month, when it reported solid Q3 numbers and guided Q4 estimates above consensus Street views. The share price popped on the news and has since been consolidating the gain in a bullish "pennant" pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys," three "buys," one "hold" and one "sell." Analysts see an 18% average annual growth rate, through the next five years. The MSM Sales Growth rate (32.27%), EPS Growth rate (26.00%), Return on Assets (17.72%), Return on Investment (20.86%) and Return on Equity (15.57%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 69% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $37.23 and $56.91. A stop-loss of $49.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Analyst initiations 6-13-07: BDK, DKS, FO and NOK

Kevin Shult — 2007-06-13T11:03:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Good news, Nokia Corp. (NOK), Black and Decker (BDK)

MOST NOTEWORTHY: This morning's noteworthy initiations included Nokia Corp (NOK), Fortune Brands, Inc (FO), Whirlpool Corp (WHR), Dick's Sporting Goods, Inc (DKS), Kona Grill, Inc (KONA):

JP Morgan started Nokia Corp (NYSE: NOK) with an Overweight rating, believing the handset market is strong and expects gross profits to rise in 2007.

Soleil wants to wait on the sidelines of Fortune Brands Inc (NYSE: FO), initiating shares with a Neutral rating, given the potential acquisition of Sweden's V&S Group along with the softness in the home and hardware segment.

Soleil also started Whirlpool Corp (NYSE: WHR) with a Hold rating based on valuation, which they believe reflects the company's outlook through 2009.

Nollenberger expects Dick's Sporting Goods (NYSE: DKS) will continue to outperform its peers, starting shares off with a Buy rating, and believes the recent pullback provides a compelling buying opportunity.

KeyBanc is positive on Kona Grill's (NASDAQ: KONA) differentiated brand, compelling unit economics, positive SSS opportunity and growth, starting shares with a Buy rating...

OTHER INITIATIONS:

Ceva, Inc (NASDAQ: CEVA) was initiated at CIBC with a Sector Outperform rating.

Black & Decker Corp (NYSE: BDK) and Briggs & Stratton Corp (BGG) were initiated with Hold ratings at Soleil.

La Jolla Pharmaceutical Co (NASDAQ: LJPC) was started with a Sell rating at Lazard.

Aviza Technology, Inc (NASDAQ: AVZA) was initiated with a Hold rating at Needham.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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Analyst initiations 5-22-07: BDK, CRM, NWACQ and RNOW

Kevin Shult — 2007-05-22T10:59:00+00:00

Filed under: Before the bell, Black and Decker (BDK), Analyst initiations, salesforce.com inc (CRM)

MOST NOTEWORTHY: Salesforce.com, Inc (CRM), Black & Decker Corp (BDK), GenVec, Inc (GNVC) and RightNow Technologies (RNOW) were today's noteworthy initiations:

With customers wanting an alternative to Microsoft (MSFT), Salesforce.com (NYSE: CRM) is making an attempt to be that alternative. It is rumored that management is in talks with Google (GOOG) about the two companies working together, a move that could include offering Google Apps via the AppExchange and integrating more closely those apps with Salesforce.com. Baird initiated shares of Salesforce.com with a Neutral rating and $49 target.

Banc of America sees major headwinds from declining construction and slower consumer spending on housing and started shares of Black & Decker Corp (NYSE: BDK) with a Sell rating and $85 target.

Merriman sees upside from strong mid- and late-stage clinical programs, key collaborations and potential for revenue generation, starting shares of GenVec (NASDAQ: GNVC) with a Buy rating.

Baird finds Rightnow Technology (NASDAQ: RNOW) to be well-positioned within the customer service segment of the CRM market with above average L-T prospects and views the recent uncertainty as a buying opportunity. Baird started shares of RightNow with an Outperform rating and $19 target...

OTHER INITIATIONS:

Jefferies initiated RadNet Inc (NASDAQ: RDNT) with a Buy rating.

Lehman started Mobile Mini, Inc (NASDAQ: MINI) with an Equal Weight rating.

Northwest Airlines Corp (OTC: NWACQ) was initiated with a Neutral rating at Goldman.

Pacific Growth started shares of Javelin Pharmaceuticals Inc (AMEX: JAV) with a Buy rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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Black & Decker blow out results could be positive for Home Depot and Lowe's

Eric Buscemi — 2007-04-17T09:40:00+00:00

Filed under: Earnings reports, Forecasts, Home Depot (HD), Black and Decker (BDK), Lowe's Cos (LOW)

If you extrapolated the awful results from homebuilders and construction suppliers and applied it to The Black & Decker Corporation (NYSE: BDK), you were wrong -- BIG TIME.

Black & Decker's stock was up over $5 in after-hours trading on blow-out earnings results last night. How did this happen?

Nolan D. Archibald, Chairman and Chief Executive Officer, said, "The Power Tools and Accessories segment benefited from strong international performance and favorable order patterns in the U.S. As a result, we expect to report first-quarter sales and earnings significantly above the guidance we issued in January."

Black & Decker cut its earnings forecast a number of times last year as slowing construction dampened demand for its products. In January, Black & Decker said it expected sales and earnings to decline in the first half of 2007. However, its orders have stabilized and large customers began a modest restocking of its products. Very Interesting!

Black & Decker's result might portent good things for the two big box retailers -- Home Depot Inc (NYSE: HD) and Lowe's Companies Inc (NYSE: LOW). In the most recent conference call for the do-it-yourself companies, despite reporting horrific results, management suggested the worst of the downturn would end in the first half of 2007. Black & Decker's results might support their claim.

"However, we continue to anticipate a challenging economic environment. Therefore, we only expect to increase our full-year EPS guidance slightly when we report first-quarter results later this month," Archibald added. Sounds like a cover your bases type of statement.

Home Depot and Lowe's have become very cheap stocks. Black & Decker stock had a big run last night. Maybe the big-box retailers are set to do the same.

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Blackstone's unsung hero

Tom Taulli — 2007-03-23T19:37:00+00:00

Filed under: Private equity, 3M Corporation (MMM), Sony Corp ADR (SNE), Black and Decker (BDK), Blackstone Group L.P (BX)

With the hoopla surrounding the Blackstone Group IPO filing, we are learning about the background of the firm's management. Of course, the most fanfare is for Stephen A. Schwarzman, the firm's CEO and Chairman. Another is Jonathan Gray, who is the co-head of the real estate operation. He was the mastermind on the Equity Office Properties buyout. Other notables include Hamilton James, who is the COO, and J. Tomilson Hill, the vice chairman.

Yet, we have heard little about Blackstone's co-founder, Peter G. Peterson. Then again, he's 80 years old and his title gives one the sense that he's likely not taking an operational role - Senior Chairman.

Then again, over 20 years ago, he saw lots of potential in Schwarzman and invested $200,000 with him to form Blackstone.

And, Peterson's network was a huge help.

Back in the late 1950s, Peterson was an executive vice president and director at Bell & Howell. By 1961, he was the president of the company (he was only 34 years old) and two years later became the CEO. He held this position until 1971.

Next, he was the assistant to President Nixon (for international affairs). A year later, he was named the Secretary of Commerce. He left in 1973 to join Lehman Brothers Holdings (NYSE:LEH) as the CEO and Chairman, where he stayed until 1984.

Along the way, he served on the boards of companies like Sony Corp. (NYSE:SNE), 3M Co. (NYSE:MMM), Black & Decker Corp. (NYSE:BDK), and Federated Department Stores.

Not bad, huh? And, yes, he definitely deserves some credit.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

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Stanley Works: persistence, patience, profits

Joseph Lazzaro — 2007-03-05T09:45:00+00:00

Filed under: International markets, Forecasts, Products and services, Consumer experience, Competitive strategy, Home Depot (HD), Black and Decker (BDK), Lowe's Cos (LOW)

In a sense, Stanley Works (NYSE:SWK) is a classic low-profile, solid performing stock.

Stanley makes tools used by consumers and industry. Now when one thinks of tools, one thinks about the hip, cordless power variety. Black & Decker (NYSE:BDK) dominates that market, and cordless' next-generation features and sleek look makes them prime candidates for splashy coverage in papers like the The Wall Street Journal. Power tools are decidedly cool.

Stanley, which trades at about $54, makes the decidedly un-cool tools, like hammers, screwdrivers, pliers, saws, tape measures... in other words hardware for home improvement, consumer, industrial and professional use. And Stanley has been doing this for more than 160 years.

However, that's not to say that the power tool market is not a sizeable market. It is: analysts surveyed by Reuters expect Black & Decker to post revenue of $6.4 billion in 2007, outpacing the $4.3 billon expected for Stanley.

Nevertheless, despite this latest change to its market, Stanley has managed to adapt [it has several power tools of its own], endure, and prosper. It seems that despite prefabrication and other construction advances, the U.S. and the world will always need hammers, screwdrivers, pliers, saws, and tape measures.And about the world: Stanley has positioned itself to benefit from solid-to-strong residential and commercial construction activity in the emerging markets in Asia and Eastern Europe. From a tools standpoint, these two regions represent vast, unsaturated markets capable of generating large sales increases and profits.

And Stanley's stock and earnings performance over the years? It has been as steady as those hammer and screwdriver sales. Stanley's stock has split 6 times since 1959, not including a 3% stock dividend in 1972, with 1996 being the last split. The company has paid at least an annual dividend for 129 consecutive years. And SWK's average annual return on equity over the past 39 years? 12%. Think about it: that's a 12% annual return for a period longer than a typical U.S. mortgage. That's a steady performance, indeed.

Investment Category: Stanley Works, a moderate-risk stock, is not suitable for low-risk investors and is about 30% levered to the global economy. A slowdown in global or U.S. growth would substantially lower SWK's revenue. With that as a backdrop, SWK, perhaps more than any other stock, has demonstrated that it can reward patient investors.

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Cramer reviews cyclicals that have bottomed

Jon Ogg — 2007-01-30T18:50:00+00:00

Filed under: After the bell, Analyst reports, Caterpillar (CAT), Black and Decker (BDK)

Tonight on CNBC's MAD MONEY Cramer discussed a group of cyclical stocks that are oversold at the economic peaks. When that happens you can take a shot. One is Caterpillar Inc. (NYSE:CAT), and you can see it fell off the cliff after the economy peaked back in May-June. Cramer said that the present prices dictate that it is worth buying because the stock actually went up after the last earnings, which was perceived as a miss. Cramer said the same happened to Black & Decker Corp. (NYSE:BDK) today. American Standard (NYSE:ASD) is one that he thinks will do the same on Thursday.

Jon C. Ogg
January 30, 2007

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