More on OfficeMax's (OMX) Q1: The retailer again cites declines in technology sales as revenue tailed off. Same-store sale fell 5.4% during the period. Cost reductions helped the company improve gross profit margin moderately, up 20 bps to 26.0%. After sizing up April trends, OfficeMax projects Q2 sales will be lower than last year. OMX +1.5% premarket. (PR) [View news story]
20% of Boise Cascade + the Cash received in February (with interest from Feb, more than the $1.50 per share distribution announced) from that IPO may be worth $4/5 per OMX share..... The stock is held under a shareholder agreement with Madison Dearborn...assuming the usual clauses in a Shareholder Agreement with Madison, this 20% stake is probably worth more than the present share price , to either Madison or another value Investor, i.e. Icahn, Pershing, etc etc. Let the Board know about your feelings about manner that this investment is being dealt with!!!!
Starbucks (SBUX) buys its first coffee farm with the purchase of a 600-acre property in Costa Rica. The company plans to test new coffee varieties and do research at the location. [View news story]
The Dell (DELL +1.6%) leaks won't stop. Bloomberg now reports Blackstone has joined H-P and Lenovo in studying Dell's books during its go-shop period, and that Carl Icahn is seeking a $9/share special dividend as part of his leveraged re-cap proposal. Sources suggest H-P and Lenovo were more interested in getting a peek at a rival's books than in making a bid. Shares closed at $14.32. (more on Dell). [View news story]
$9 dividend is manner to settle this valuation charade. Let Donald take a "haircut"-he deserves it.
Johnson Controls (JCI +1.9%) pares back gains after the company denies earlier reports that it might sell its automotive interiors business, saying it has no current intention to divest this segment. [View news story]
Where there is smoke there must be a fire!!!! Why would they keep this division at a 1.9% margin??? Much talked about previously-I will add to JCI tomorrow.
Chesapeake (CHK -2.8%) is obviously a distressed seller, so that helps explain why the $1B Sinopec (SNP +0.6%) paid to get into its Mississippi Lime acreage is below expectations. But the Mississippi Lime hasn’t shown great results: "It seems that foreign investors have been less willing over the last few years to come in and pay a large amount for unproven acreage,” Wells Fargo’s David Tameron says. [View news story]
Seems that CHK doesnt get credit for anything....They sold an unproven asset for $1B CASH . Analysts have pressured CHK to reduce debt...and, show more revebue from liquids that they exhibited in 4th Q reporting. SDelling shareholders are just setting up Icahn and Southeast for a killing on the stock.
Office Depot (ODP -3.6%) and OfficeMax (OMX -2.3%) drop again as the pair now trade lower than where they did before the merger was announced. Investors seem to want to find out who is running the nameless new company before backing it to see a return to profitability and relevance. [View news story]
Where Is The Beef???????? OMX has received 123mm from the Boise Cascade IPO, PLUS common stock representing 14% of Boise...No one is talking or reporting about this major ASSET! Too big to fall thru cracks. No approval of any merger deal until the OMX shareholders get a big prior distribution or other priority distributions in future or other recognition of this non-operating ASSET!!!!
Patience IS a virtue with this company...I hold preferred and common...IT will pay-off despite management incompetance..The assets are too valuable to underestimate..Wait till Icahn becomes a shareholder!
Cleveland Research tips off that traffic at Starbucks (SBUX -1.5%) outlets is strong and the company's comparable sales in the quarter are trending above the consensus estimate of analysts. The firm's channel checks in the coffee sector are highly cited by the Street. [View news story]
Verismo is a side show presently-at those prices the gross addition will look good-the long term play on a machine as models are upgraded , is the razor blade theory-I own a Nespresso machine and the cost of the coffee over 3 years is probably 6x my purchase price.
Money Managers Are Selling These 5 Rallying Stocks Trading Under $5 [View article]
OPK not only has a multi-billionaire buying at down-ticks-put OPKO is beco=ming a REAL diversified pharm company-which Frost knows hois stuff very well....I feel sorry for the short positions going into '13.. This company has real assets and is growing.
U.S. auto sales are expected to cap off the best year for the industry since 2007 with a projected 9% rise for December to an annual sales pace of ~15.2M vehicles, helped in part by higher incentive spending on pickup trucks. But a strong end to the year could be overshadowed by concerns that consumers will curb spending in January due to the fiscal cliff. [View news story]
FIAT doesnt seem to get recognition that its part of the US, much less worlwide market presently. Did everybody forget that Chrysler had a great quarter, and taht new models are coming here from excess capacity in Italy et al>?
If 12.3% isnt a good return wqith the stock trading with a substantial cushion to book...and no end in site to HAMP program (in fact todays news said Obamam may initiate HAMNP coverage for non-Agency refi's!)...I would like a recommendation to Replace NLY and ARR (which pays monthly for a great present value to receipiewnts of dividend).
Supervalu (SVU -7%) spikes lower to erase a late-day rally Friday that saw shares poke their head over $2.80. SA author Saibus Research called it last week by noting merger speculation continues to overshadow some decent news on the fundamental front. [View news story]
"merger" not apparent. But remember interest of cerebus $$ and kimco experience again to team up to buy pieces in jv or outright..cerebus had trouble financing a deal..maybe that problem is evaporarting with commercial real estate lending easing and cerebus ability to raise more equity at year end.
Prospect Capital (PSEC) announces an increase of $35M in its 5-year revolving lending facility to $650M. Quickly putting some of that to use, it also announces the provision of $23.2M in secured debt for the recapitalization of Texas restaurant chain, Taco Bueno. [View news story]
PSEC keeps chugging along....Feel sorry for shorts.
Goldman Sachs analyst Stephen Grambling warns investors in grocery stocks to be careful to buy into the supermarket REIT buzz kickstarted when Canada's Loblaw decided to separate out its real estate assets. He notes retail rivals could easily jump in with better fundamental profiles to take the shine off the REIT play. [View news story]
Cerebus and Kimco are perfect for developing and enhancing surplus and under - valued leases at centers owned by SVU-and Alberstsons in particular. These 2 in past haved scored on a similar albeit smaller acquistion. I am LONG KIMCO AND SVU
More on OfficeMax's (OMX) Q1: The retailer again cites declines in technology sales as revenue tailed off. Same-store sale fell 5.4% during the period. Cost reductions helped the company improve gross profit margin moderately, up 20 bps to 26.0%. After sizing up April trends, OfficeMax projects Q2 sales will be lower than last year. OMX +1.5% premarket. (PR) [View news story]
Starbucks (SBUX) buys its first coffee farm with the purchase of a 600-acre property in Costa Rica. The company plans to test new coffee varieties and do research at the location. [View news story]
The Dell (DELL +1.6%) leaks won't stop. Bloomberg now reports Blackstone has joined H-P and Lenovo in studying Dell's books during its go-shop period, and that Carl Icahn is seeking a $9/share special dividend as part of his leveraged re-cap proposal. Sources suggest H-P and Lenovo were more interested in getting a peek at a rival's books than in making a bid. Shares closed at $14.32. (more on Dell). [View news story]
Johnson Controls (JCI +1.9%) pares back gains after the company denies earlier reports that it might sell its automotive interiors business, saying it has no current intention to divest this segment. [View news story]
Why would they keep this division at a 1.9% margin???
Much talked about previously-I will add to JCI tomorrow.
Chesapeake (CHK -2.8%) is obviously a distressed seller, so that helps explain why the $1B Sinopec (SNP +0.6%) paid to get into its Mississippi Lime acreage is below expectations. But the Mississippi Lime hasn’t shown great results: "It seems that foreign investors have been less willing over the last few years to come in and pay a large amount for unproven acreage,” Wells Fargo’s David Tameron says. [View news story]
ARMOUR Residential REIT (ARR): Q4 EPS of $0.22 misses by $0.05. (PR) [View news story]
Office Depot (ODP -3.6%) and OfficeMax (OMX -2.3%) drop again as the pair now trade lower than where they did before the merger was announced. Investors seem to want to find out who is running the nameless new company before backing it to see a return to profitability and relevance. [View news story]
OMX has received 123mm from the Boise Cascade IPO, PLUS common stock representing 14% of Boise...No one is talking or reporting about this major ASSET! Too big to fall thru cracks.
No approval of any merger deal until the OMX shareholders get a big prior distribution or other priority distributions in future or other recognition of this non-operating ASSET!!!!
Molycorp (MCP -7.4%) plunges after warning of substantially lower than expected production in Q4 2012 and H1 2013 while foreseeing a $250M cash shortfall even with its proposed $300M capital raise. But hope springs eternal for some, as Oracle's Laurence Balter remains bullish: "They are raising less capital than I thought... Investors need to be patient." [View news story]
Cleveland Research tips off that traffic at Starbucks (SBUX -1.5%) outlets is strong and the company's comparable sales in the quarter are trending above the consensus estimate of analysts. The firm's channel checks in the coffee sector are highly cited by the Street. [View news story]
Looking for 65 per share this quarter
Money Managers Are Selling These 5 Rallying Stocks Trading Under $5 [View article]
This company has real assets and is growing.
U.S. auto sales are expected to cap off the best year for the industry since 2007 with a projected 9% rise for December to an annual sales pace of ~15.2M vehicles, helped in part by higher incentive spending on pickup trucks. But a strong end to the year could be overshadowed by concerns that consumers will curb spending in January due to the fiscal cliff. [View news story]
Relief For Annaly Capital [View article]
Supervalu (SVU -7%) spikes lower to erase a late-day rally Friday that saw shares poke their head over $2.80. SA author Saibus Research called it last week by noting merger speculation continues to overshadow some decent news on the fundamental front. [View news story]
Prospect Capital (PSEC) announces an increase of $35M in its 5-year revolving lending facility to $650M. Quickly putting some of that to use, it also announces the provision of $23.2M in secured debt for the recapitalization of Texas restaurant chain, Taco Bueno. [View news story]
Goldman Sachs analyst Stephen Grambling warns investors in grocery stocks to be careful to buy into the supermarket REIT buzz kickstarted when Canada's Loblaw decided to separate out its real estate assets. He notes retail rivals could easily jump in with better fundamental profiles to take the shine off the REIT play. [View news story]