Archive for September, 2007

Oh boo hoo. So they lost 4 cents per share. They still made 22 cents more per share this year than last year, all because we couldn’t spend our money elsewhere.

Wal-Mart Stores Inc. reduced its reported second-quarter profit by $153 million due to expenses from selling its German retail operations, the world’s largest retailer reported Monday.

In a regulatory filing, Wal-Mart said the added cost reduced its earnings per share for the quarter that ended July 31 to 72 cents from the 76 cents it originally reported Aug. 14. That compares with 50 cents per share in the year-ago quarter.

Wal-Mart was losing money in Germany, and they lost money in South Korea too. When are we going to wake up and start supporting the mom and pop shops again? That is, if any of them are left after Wal-Mart conquers the world (except Germany and South Korea of course).

[Source: Yahoo! News]

Maybe the 10 million prediction isn’t so crazy after all, huh?

Apple Inc said on Monday it has sold its one-millionth iPhone, just days after cutting the price of its smartphone by $200 and a few weeks ahead of the expected date to reach that target.

Apple shares rose almost 3 percent on Nasdaq after the news and shares of AT&T Inc, the only U.S. wireless service provider selling the phone, rose more than 1 percent on New York Stock Exchange.

The device, launched to much fanfare 74 days ago, combines a mobile phone, Internet browser and music and video player. Apple has said it will sell 10 million by the end of 2008.

[Source: Yahoo! News]

The problems just keep getting worse for Countrywide.

Countrywide Financial Corp, the largest U.S. mortgage lender, said on Friday it plans to cut 10,000 to 12,000 jobs to cope with weak housing demand, rising foreclosures and tightening credit markets.

The cuts, which amount to as much as 20 percent of the lender’s work force, will be completed over the next three months and include reductions already made, Countrywide said.

They constitute the largest work force reduction announced this year in the U.S. mortgage industry, which has lost more than 50,000 jobs after loan delinquencies rose, home price appreciation stalled, and investors stopped buying many kinds of home loans.

How fall will they drop? How many jobs do they have to cut to compensate for all the stupid decisions they made?

The big bad president of the UAW insists that tough new fuel standards pending in Congress will force U.S. automakers overseas.

Tough new fuel-economy standards now pending in Congress could lead to the dismantling of what remains of the US domestic car industry, the president of the United Auto Workers union warned Thursday.

“We’re being told that we must choose between protecting our environment versus protecting our jobs,” said UAW president Ron Gettelfinger as he thrust himself into the center of a contentious debate over fuel economy.

…

“The US companies will no longer have an incentive to balance their full-size car production here with US production of smaller, more fuel-efficient vehicles,” he told the Economic Club of Detroit.

“The inevitable result is that small-car production will be shifted overseas and tens of thousands of workers will lose their jobs.”

In addition, the bill would also force manufacturers to curb the production of large trucks and sport utility vehicles in order to meet tougher corporate average fuel economy standards.

That’s the problem with these “labor bosses”, they never think outside the union hall. Why not look at things a bit more realistically and admit that making smaller cars doesn’t require as many people or some other stupid statistic?

Wouldn’t it be more prudent to work with automakers as they attempt to make their “full-size cars” and “large trucks” more fuel efficient?

I still don’t agree with his logic as to why it will force automakers overseas.

Not such a bad deal for Bank Of America now, is it?

Countrywide Financial Corp (CFC.N) shares on Thursday fell below the $18 price at which Bank of America Corp (BAC.N) may convert its $2 billion investment into common stock.

It was the first time the shares have dipped that low since the infusion was announced two weeks ago.

Bank of America, the second-largest U.S. bank, on August 22 bought preferred stock yielding 7.25 percent, convertible into common stock at $18.

…

“Countrywide has been criticized for adding to staff in a declining market, and the job cuts are what they should be doing as the mortgage market contracts significantly,” said Blake Howells, who helps invest $2.6 billion at Beckers Capital Management in Portland, Oregon, which owns Countrywide shares.

Shares of Countrywide fell as low as $17.95 in morning trading. They closed down 33 cents, or 1.8 percent, at $18.48 on the New York Stock Exchange, and are down 56 percent this year.

Howells said the shares are unlikely to drop much further, but for the time being, “Bank of America can collect the coupon payment, which is pretty attractive.”

It was a win-win situation for BoA, too bad the same can’t be said for all the people still having trouble.

Yesterday, Coca-Cola announced their first layoffs since 2003.

As many as 125 U.S.-based Coca-Cola employees will lose their jobs as part of a reorganization of Coke’s North America division, the company said Wednesday.

Coke North America President Sandy Douglas talked to employees about the cuts during a 9 a.m. “town hall” meeting at Coke headquarters in downtown Atlanta, said spokeswoman Lori Billingsley. Managers began notifying employees of their job status Tuesday and will continue Wednesday.

The cuts will be mostly in Atlanta and completed by year’s end, Billingsley said. The layoffs represent about 3.5 percent of Coca-Cola North America’s 3,500 full-time, non-hourly U.S.-based employees.

Analysts were expecting a drop of 2 percent. I think they were a little off in their estimates.

Pending sales of previously owned U.S. homes fell by a surprising 12.2 percent in July as credit tightened up amid troubles in the housing and subprime mortgage sectors, a real estate trade group said on Wednesday.

The National Association of Realtor’s Pending Home Sales Index, based on contracts signed in July, fell to a reading of 89.9, the lowest since September 2001 when the index stood at 89.8.

The article goes on to talk about how the market is stabilizing now, in mid-August. That would be good news, if it’s true. Then again, if it’s the same analyst making the prediction then things don’t look so good, do they?

Mattel seems to be having a serious problem with their suppliers.

Toymaker Mattel Inc (MAT.N) on Tuesday announced a third recall of Chinese-made toys, saying it would take back more than 800,000 units globally that contain “impermissible” levels of lead.

In total, 522,000 U.S. toys and 322,000 outside the United States are being recalled. The toys were shipped between August 3, 3006, and July 31, 2007, the company said.

This is the third recall in just a few weeks. How long until they recall every toy they have ever sold?

Doesn’t it make you wonder though, why didn’t anyone test these items before they were distributed in stores? It’s not like China has a great track record and all that. What gives?

Did someone know? Why didn’t Mattel act sooner? What did they know and when did they find out? There are all questions I am sure they will be forced to answer over the coming months.

It’s about time.

Does this news really surprise anyone? The iPhone is an awesome phone, and if I had the money I would be plunking it down on one as well.

Apple Inc’s iPhone outsold all smartphones in the United States in July, its first full month on sale, accounting for 1.8 percent of all U.S. mobile handset sales, research group iSuppli said on Tuesday.

ISuppli reiterated its forecast that Apple would sell 4.5 million iPhones this year, rising to more than 30 million in 2011.

The two models of the iPhone on the market sold more than Research in Motion’s Blackberry series, the entire Palm portfolio and any individual smartphone model from Motorola, Nokia or Samsung.

I think, if the price was a little lower, sales would beat the forecasts two to one.