acquisitions

Is Warren Buffett Heading for the Exits?

Is Warren Buffett Heading for the Exits?

Nobody ever rings a bell at the top. That’s why sometimes it is instructive to keep an eye on so-called “smart-money”—especially when they make a move towards the door. All of which, strikes me as curious since just a few months ago the grandfatherly Buffett said, “I am a huge bull on this country. We are not going to have a double-dip recession at all. I see our businesses coming back across the board.” Hmmmm…I wonder if he has changed his mind on this one. From Bloomberg by Andrew Frye entitled: Berkshire Exits BofA ‘a Loser’ on Three-Year Holding. “Warren Buffett’s Berkshire Hathaway Inc. sold its stake in Bank of America Corp., ending an investment that spanned three and a half years in which the lender’s stock lost more than two-thirds of its value Buffett’s firm had no shares in the Charlotte, North Carolina-based bank at the end of 2010, compared with 5 million shares three months earlier, Berkshire said late yesterday in a regulatory filing that lists the company’s U.S. stockholdings. Berkshire, where Buffett serves as chief executive officer and head of investments, entered the Bank of America stake with the purchase of 8.7 million shares in the second quarter of 2007. The lender’s CEO at the time, Kenneth Lewis, was expanding through acquisitions and telling investors that the U.S. housing slump would be over within months. “He’s closing out a loser,” said Jeff Matthews, author of “Pilgrimage to Warren Buffett’s Omaha,” whose Ram Partners LP invests in Berkshire and Bank of America. “We bought it during the crisis. But its earnings power coming out the crisis has been reduced.” Berkshire also eliminated its stakes in Nike Inc., Comcast Corp., Nalco Holding Co., Fiserv Inc., Lowe’s Cos. and Becton, Dickinson & Co. in the fourth quarter. In November, Berkshire disclosed that it had sold holdings of Home Depot Inc., trash hauler Republic Services Inc. and Iron Mounta”in Inc., a provider of records management. Buffett’s U.S. portfolio had 25 stocks and a value of about $52.6 billion at the end of December.” Maybe there is nothing to see here, but I don’t think so. You just can’t trust a guy that plays a ukulele. Related Articles: Warren Buffett’s Dividend Stock Strategy The Good Works of Bill Gates and Warren Buffett Ben Graham’s Winning Investment Advice Warren Buffett: The Investor of the Year To learn more about Wealth Daily click here. Advertisement Samurai Super Alloy It was the secret ingredient that turned an ordinary sword into the legendary Samurai Katana— the deadliest weapon before the arrival of modern rifles. Today, it’s crucial to the $987billion/

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Coca-Cola’s Earnings Surge

Filed in acquisitions, Coca Cola, earnings, EPS, New Gold, o, revenue, Spot Gold by on February 10, 2011 0 Comments
Coca-Cola’s Earnings Surge

Filed under: Earnings Reports , Coca-Cola (KO) , PepsiCo (PEP) Last year, Coca-Cola ( KO ) acquired Coca-Cola Enterprises’ North American bottling operations. In addition, volume in North America rose 3%, excluding acquisitions and the currency impacts. These two factors gave the company an outstanding quarter. The company has taken market share from its rival PepsiCo ( PEP ). Coca-Cola reported Wednesday earnings of $5.77 billion, or $2.46 a share, up from $1.54, or 66 cents per share, a year ago, according to The Wall Street Journal . Excluding benefits from bottling acquisition, earnings were 72 cents a share. Revenues increased 40% to $10.5 billion, and were up 45% excluding currency impacts. Gross margins fell to 59.2% from 64.7%. Continue reading Coca-Cola’s Earnings Surge Coca-Cola’s Earnings Surge originally appeared on BloggingStocks on Thu, 10 Feb 2011 10:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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PPG’s Estimates Boosted at Goldman Sachs (PPG)

Paint and coatings maker PPG Industries, Inc. ( PPG ) on Monday saw its earnings estimates raised by analysts at Goldman Sachs. The firm said it boosted its estimates for PPG through 2012, noting that recent acquisitions should bolster its earnings. Goldman also cited share buybacks as another positive catalyst for the company. The analyst maintained its “Buy” rating and $104 price target, which implies a 25% upside to PPG’s Friday closing price of $83.23. PPG Industries shares were mostly flat in premarket trading Monday. The Bottom Line We have been recommending shares of PPG Industries ( PPG ) since Oct.21, 2010, when the stock was trading at $77.46. The company has a 2.64% dividend yield, based on Friday’s closings stock price of $83.23. PPG Industries, Inc. ( PPG ) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Stanley Black & Decker Downgraded to “Hold” at KeyBanc (SWK)

Toolmaker Stanley Black & Decker, Inc. ( SWK ) on Monday saw its shares downgraded by analysts at Keybanc. The firm said it cut its rating on SWK from “Buy” to “Hold,” citing the stock’s fair valuation. A KeyBanc analyst commented, “With Stanley’s success in 2010 and robust sales guidance of 5-6% organic growth in 2011, we see little upside near-term given its valuation at roughly 15x our $4.96 estimate ($4.75-$5.00 guidance), supporting our downgrade to HOLD. We raised our 2011 from $4.55 to $4.96 and expect free cash flow of $1.1 billion in 2011 (9% yield) to solidify investors’ confidence in management’s ability to execute further cost savings and or accretive acquisitions into the 2H, offering the stock momentum in time.” Stanley Black & Decker shares fell 72 cents, or -1%, in premarket trading Monday. The Bottom Line Shares of Stanley Black & Decker ( SWK ) have a 1.87% dividend yield, based on Friday’s closing stock price of $72.72. The stock has technical support in the $65 price area. The shares are trading at all-time highs and have little overhead resistance. Stanley Black & Decker, Inc. ( SWK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Trio of Takeover Targets in Oil Services

Filed in acquisitions, Bank Gold, commodities, o, target by on January 26, 2011 0 Comments
Trio of Takeover Targets in Oil Services

Filed under: Newsletters , Schlumberger Limited (SLB) , Commodities , Oil , Stocks to Buy “The oil services and equipment industries have been a hotbed of M&A activity over the past few years, a trend that should continue into 2011,” says energy sector specialist Elliott Gue . The editor of The Energy Strategist explains, Three of my top 10 takeover plays hail from this part of the energy patch: Core Laboratories ( CLB ), Dresser-Rand ( DRC ) and Dril-Quip ( DRQ ). “With a market capitalization of more than $100 billion, Schlumberger ( SLB ) should add to the dozens of acquisitions it’s closed over the past few years. Continue reading Trio of Takeover Targets in Oil Services Trio of Takeover Targets in Oil Services originally appeared on BloggingStocks on Wed, 26 Jan 2011 10:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Six Stocks for the Next Ten Years

Six Stocks for the Next Ten Years

It was a cold and blustery winter day when I met my father for lunch last week. This is one of the few unexpectedly pleasant things I discovered in my middle age… I can now sit with my father, digest dragon rolls and a bit of wisdom obscured by banter and watch the world march by a plate glass window. At one point between the miso soup and the spicy tuna, Dad told me that he had been putting $1,000 a year into a mutual fund for each of his grandchildren on their birthday. And due to a happenstance of luck, one particular granddaughter who was born in April was up more than 20% over the other ten grandkids. He had chosen a mutual fund that would gradually switch from equities to bonds the closer it came to the tuition due date. Well, I thought, that’s nice of him. A bad gold call But for the record, this is the same man who put money in a gold fund for my college expenses during the seventies and early eighties. From the time he started investing until I needed the money in 1988, gold only went down — falling from $10,00 an ounce to $250 or so at the bottom. It was a spectacularly poor investment, and when it was sold, it was worth half as much as he put in. Not that I wasn’t grateful, as it bought many a Natty Boh; I only wish he had chosen Apple, Microsoft, or Wal-Mart. Now I don’t think the run in gold and silver is over — not by a long shot. Back in 1980, my grandparents would greet us with pre-1965 silver dollars. My Aunt would give us coin sets for birthdays and for Christmas. And these people made their living from farming, ranching, and selling insurance — not what you’d call Wall Street insiders. As far as I can tell this isn’t happening yet. The blow-off top in the metals market is still down the road… Buy low, sell high This led me to think about the big picture. Where would you put money today in order to reap the large returns in fifteen years? The Sam Walton biography tells the story of a truck driver who worked for Wal-Mart and retired a millionaire on WMT stock alone… Or John Templeton, who bought Freddie Mac in 1980 for his wife’s retirement fund and turned $3,000 into a million as interest rates fell from 21% to 8% and housing took off. The trick isn’t to buy high and sell higher ; it’s to buy low in a company that will likely be around and thriving in 15 years. The lost decade There is one sector that is cheap, solid, pays dividends, and is expanding: the old school tech plays that no one wants to talk about. Let’s take a step back and look at why these stocks are so cheap. The first reason is that they got ramped up in the 1999 dot-com bubble. All of these stocks like Oracle (ORCL), Microsoft (MSFT), Intel (INTC), Qualcomm (QCOM), Cisco (CSCO), and Corning (GLW) were trading at price-to-earnings ratios over 100. They split their stocks again and again so that Oracle has 3.8 billion in their float. Microsoft has 7.5 billion. There are so many shares out there that Wall Street …

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Qualcomm to Purchase Atheros for $3.2 Billion

Filed in acquisitions, New Gold, o by on January 5, 2011 0 Comments
Qualcomm to Purchase Atheros for $3.2 Billion

Filed under: Deals , QUALCOMM Inc (QCOM) Qualcomm ( QCOM ) is spreading its wings. It said Wednesday it has agreed to purchase Atheros Communications ( ATHR ) for $3.2 billion, as reported by the Associated Press . Why is Qualcomm making this deal? What are the advantages to the company? Qualcomm is a big player in supplying chips to wireless phones. It has been looking to put its products in tablets and social notebook computers. Continue reading Qualcomm to Purchase Atheros for $3.2 Billion Qualcomm to Purchase Atheros for $3.2 Billion originally appeared on BloggingStocks on Wed, 05 Jan 2011 09:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Johnson Controls (NYSE:JCI) Acquisitions Bodes Well for 2011

Filed in acquisitions, Johnson Controls, Kaufman, o, silver by on January 3, 2011 0 Comments

Johnson Controls (NYSE:JCI) has a history of successfully acquiring and assimilating companies into their fold, and with their acquisitions of KEIPER and Recaro, they are positioned well heading into the new year. Kaufman said, “JCI expands seat business with acquisitions. JCI announced two acquisitions yesterday to augment its Automotive Experience segment. The first acquisition was for KEIPER,

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Hain Celestial in Neutral Lane – Analyst Blog

Filed in acquisitions, BP, Gold Prices, o, Uncategorized by on December 30, 2010 0 Comments

We are Neutral on The Hain Celestial Group, which focuses on increasing market share through strategic acquisitions.

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Weekend: The Key to True Wealth

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. Forty-seven Christmases into this trip, I have learned but one thing… Life is what you make of it. Throw in a wonderful family, some great friends, and a few cold ones, and it doesn’t take you too long to figure out that you’ve got the world on a string. Somehow, I have managed to grab all three. Which is why, despite my sometimes bearishness, my glass could be smashed into a million pieces and I could continue to insist that it’s still half full. All things considered, I have been pretty fortunate. And there’s one thing I wish I’d learned earlier in life: The people in your life are what truly matters. It’s not what you have; it’s who you love. As for money: It comes…it goes… and you can always make more. But the one thing you can never replace is the time you spend with your family and friends. Advertisement CNBC Says It Could Be Energy’s Silver Bullet No one thought it would happen. But one tiny solar company just crushed every obstacle in the industry’s way. It’s 300% more efficient than rooftop panels, can be applied to any glass surface, generates electricity at night, and could hand you 595% over the coming months! Click here for the full story. You realize just how much that matters when your holiday occasions begin to have a few less partiers. At our house this year, that missing place was one that had always belonged to Unc. His real name was Branson, but “Unc” seemed to suit him just fine. Right next to the biggest bowl of gravy, his spot went empty this year. Eight weeks short of the holidays, he moved on to the great table in the sky — leaving us with far more leftovers than we ever bagged before. Not coincidently, the Bud Light also lasted quite a bit longer; although I would have traded it all for one last laugh with him… What he did leave us all with was a gift that you can never put a price on. More valuable than anything found under the tree, he left us with enough memories to last us a lifetime. Sadly, for me at least, Unc is just one of many. Aunts, uncles, mothers, fathers, grandparents, friends, and teammates — I’ve been around long enough to collect my fair share of memories. Christmas or otherwise, they …

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FBR Capital Reiterates “Outperform” Rating for Illinois Tool Works, Raises Price Target (ITW)

Industrial products and equipment maker Illinois Tool Works Inc. ( ITW ) on Monday saw its price target boosted by analysts at FBR Capital Markets. The firm maintained its “Outperform” rating on ITW, and boosted its price target to $62. That new target implies a 23% upside to the stock’s Friday closing price of $50.41. An FBR analyst commented, “We are raising our 2010/2011/2012 estimates from $3.08/$3.55/$4.00 to $3.10/$3.85/$4.40 and raising our price target to $62 following upbeat outlook commentary at ITW’s annual outlook meeting Friday. Key positive surprises included 2011 expectations for 30%-35% incremental margins on total revenue growth (5%-7% organic and acquisitions) or significantly above our low-20s expectation, reflecting continued benefit from cost-cutting and volume leverage.” Illinois Tool Works shares were mostly flat in premarket trading Monday. The Bottom Line Shares of Illinois Tool Works ( ITW ) have a 2.70% dividend yield, based on Friday’s closing stock price of $50.41. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $53-$55 price levels. Illinois Tool Works Inc. ( ITW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Where Will BHP (NYSE:BHP) Invest its Cash?

Filed in acquisitions, bhp billiton, Marius Kloppers, o, shares, silver by on November 11, 2010 0 Comments

Now that the Potash (NYSE:POT) deal is all but over for BHP (NYSE:BHP), rumors continue to circulate as to what would be the best way for the company to invest its cash.While acquisitions are sure to remain on the table, pressure from shareholders could result in BP using some of the capital, possibly as much as $10 billion to buy back shares in the company.As high as that is, BHP would still

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