BloggingStocks

Cramer on BloggingStocks: General Mills will kill with lower costs

Jim Cramer — 2008-08-07T09:00:00+00:00

Filed under: Market matters, Walt Disney (DIS), Clorox Co (CLX), General Mills (GIS), News Corp'B' (NWS), Freep't McMoRan Copper (FCX), Unilever ADR (UL), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says this consumer-products titan has weathered the storm and should enjoy lower inputs.

General Mills (NYSE: GIS) (Cramer's Take) hits another 52-week high. This company has been one of the great standout performers this year, just a juggernaut, even though it is a gigantic buyer of grains and a huge user of cardboard boxes and plastic wrapping. Plus, it needs gasoline to deliver product. Some of this move has to be attributed to projections of huge declines in raw costs. Those are going to happen, as we know from the commodities.

But perhaps it is worth noting that few packaged goods companies -- perhaps Heinz (NYSE: HNZ) (Cramer's Take) is an exception -- dominate and innovate as well as GIS does. It has always been one of the great brand producers and acquirers, and also a company that can take out costs better than anyone. When I compare how a Unilever (NYSE: UN) (Cramer's Take) or a Clorox (NYSE: CLX) (Cramer's Take) has handled the raw costs to how General Mills has performed, it is almost as if GIS is a pharmaceutical with no raw cost exposure whatsoever.

Stocks don't get to their 52-week highs for nothing with the market all the way down here. When we get the inevitable futures program that takes down everything, certainly not an unlikely prospect as it has happened every time we have gone up a great deal, this is the one stock you must bid on now that the commodity costs are also going the right way. Who knows how much money they can make; remember, it sells at only 17 times earnings, when more inconsistent packaged goods companies routinely sell at 18 times earnings.

Random musings: I know there are many people who hate gold on this site. I know that I am not a fan. At a certain price, I feel like I have to get comfortable with a gold stock. I just feel like I need one, although Freeport (NYSE: FCX) (Cramer's Take) does have a big gold component. ... Disney (NYSE: DIS) (Cramer's Take) is starting to react better after earnings. ... News Corp. (NYSE: NWS.A) (Cramer's Take) seems to be run for world domination, not profit. I like to own companies that are run for profit.

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RELATED LINKS:
Procter & Gamble Profit, Sales Jump
Cramer: Commodity Stocks Feel the Heat
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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 Freeport-McMoRan.

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Procter & Gamble: Great quarter, even greater cash flow

Steven Mallas — 2008-08-06T07:00:00+00:00

Filed under: Earnings reports, Clorox Co (CLX), Colgate-Palmolive (CL), Procter and Gamble (PG), Kimberly-Clark (KMB), Unilever ADR (UL)

Procter & Gamble (NYSE: PG) reported its Q4 and full-year results on Tuesday. The numbers looked very good to me (save for one, which I'll get to). P&G was up over 3% on Tuesday. Granted, the Dow saw one heck of a rally yesterday, but even so, P&G deserved a bid just due to its blue-chip corporate performance.

Revenues for the quarter increased 10%, and adjusted earnings per diluted share jumped over 19% to $0.80. For the year, revenues increased 9% and adjusted earnings per diluted share rose 15% to $3.50. As I stated in my earnings preview from the other day, Wall Street was looking for adjusted earnings to be around $0.78 per share. So P&G beat by two pennies.

Of course, the earnings beat is nice, but cash flow is even nicer. In fact, management likes to evaluate itself by comparing its free cash flow to net earnings. P&G would like the so-called "free cash flow productivity" metric to equal at least 90%. Well, shareholders need not worry, since productivity in these terms was 96% for the quarter and 106% for the fiscal year. Free cash flow for the year expanded by 21%, and it was more than enough to power P&G's great dividend.

Now, the one fly in the ointment is the company's gross margin. That declined 160 basis points during the quarter and 70 basis points during the year. Can't get around inflation. The company was able to keep the operating and net margins at healthier levels, however. Price increases helped to offset input costs. And given that organic volume increased 4% during the quarter and 5% during the year, P&G seems to be managing things as well as can be expected. Another positive is that management seems satisfied that the Gillette integration is working out as planned.

Inflation will be a problem going forward, as it will be for similar consumer-products concerns such as Kimberly-Clark (NYSE: KMB), Colgate-Palmolive (NYSE: CL), Unilever (NYSE: UL), and Clorox (NYSE: CLX), but P&G is definitely in a solid position since it has a deep, valuable product portfolio that consumers buy every single day. I'm not worried about P&G. It will thrive over the long term, and it should be a good investment.

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

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New "Brandcaster" technology to aid web distribution of coupons

Steven Mallas — 2008-06-03T17:49:00+00:00

Filed under: Products and services, Google (GOOG), Clorox Co (CLX), Colgate-Palmolive (CL), General Mills (GIS), Procter and Gamble (PG), Kimberly-Clark (KMB), Kraft Foods'A' (KFT)

I love coupons; who doesn't? They are, arguably, one of the most important marketing tools used by companies such as Procter & Gamble (NYSE: PG), Colgate-Palmolive (NYSE: CL), and General Mills (NYSE: GIS). I also love coupon distribution on the web, so I'm hoping a new technology reported on by BusinessWeek really takes off.

A company called Coupons, Inc. has developed a system dubbed Brandcaster. It essentially follows Google's (NASDAQ: GOOG) model of monetization. Depending on where you are on the web and what you are looking at, the Brandcaster will determine if a coupon may be applicable to you. It will then try to get you to access the coupon and print it up. Web sites who use the application will be given a cut of revenues generated from successful coupon printings. So, speaking hypothetically, if I'm on a site that's dedicated to video games, maybe this Brandcaster thing will someday tell me that I can print up a coupon allowing me to get $5 off a new software title.

If this is promoted properly, and if the value to consumer companies can be adequately communicated, then I think Coupons, Inc. has a hit on its hands. Like I say, people love coupons, and I think they are more likely to act on printing out a coupon then they are to, say, buy a product immediately online through a banner ad. I see this kind of advertising as being more effective over the long-term than other kinds of ads.

But, there's a significant challenge, in my opinion, to Coupons, Inc. and Brandcaster. I'm not sure how it is in all parts of the country, but in my area, there are many businesses, including a major regional supermarket chain, that are either very suspicious of Internet coupons or don't accept them at all. There's a good reason for this that probably goes without saying, but I'll say it anyway: the chance for counterfeit coupons is always there. I think web-coupon distributors are still a long way off from finding quality solutions to the piracy issue (or at least, that's the current perception from where I sit).

Nevertheless, I think this Brandcaster is neat. Companies signed up so far for the program include Kraft (NYSE: KFT), Kimberly-Clark (NYSE: KMB), and Clorox (NYSE: CLX), as well as the aforementioned General Mills. Apparently 200 coupons will be distributed to over 3,000 websites initially, with hopes that the network can grow to over ten times as many websites in a short period of time. I think this has a great chance for success.

Disclosure: I don't own any companies mentioned here; positions can change at any time.

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Colgate-Palmolive brushes up on double-digit growth

Steven Mallas — 2008-05-01T09:19:00+00:00

Filed under: Earnings reports, Clorox Co (CLX), Colgate-Palmolive (CL), Procter and Gamble (PG)

Colgate-Palmolive (NYSE: CL) reported Q1 results on Wednesday. By now, you know the drill when it comes to consumer-products companies -- weak-dollar-helped-and-commodity-costs-did-not-help. I gotta say, though, that Colgate-Palmolive showed that vigilance in terms of costs can have a positive impact, and that a business does not have to be defined by inflation.

Net sales exploded to the upside by more than 15% (again, currency effects). Net income likewise charged higher, rising 17% to 90 cents per share on an adjusted basis. I know -- superlatives such as "exploded" and "charged higher" might seem a bit hyper here, but it's always cool when a consumer-products company hits those double-digit increases. Colgate-Palmolive, like Clorox (NYSE: CLX) and Procter & Gamble (NYSE: PG), leverages its stable of brands to drive growth in cash flows (Procter & Gamble, by the way, also recently reported quarterly results). This worked like a charm, since cash flow from operations during the past three-month period increased 17%. Way to go, management. Margins, however, were pressured, as can be expected, and they will continue to be pressured in the near future.

The earnings release mentioned the flagship Colgate toothpaste product -- I am a user of the brand, and in fact, I bought a new variety earlier this week. I've said it before and I'll say it again -- the supermarket is full of investing ideas, and Colgate-Palmolive is one of them. The company had a great quarter, it beat expectations according to Briefing.com -- albeit by the usual suspect, namely the "proverbial penny" -- and it seems solid enough. A potential core holding, Colgate-Palmolive should do well over the coming year. Yesterday's 6.7% drop in the price of the shares could have been seen as a buying opportunity for patient, long-term investors, but I'll concede that the stock could languish for a little while.

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

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WD-40's Q2 results didn't impress me

Steven Mallas — 2008-04-10T10:28:00+00:00

Filed under: Earnings reports, Clorox Co (CLX), Colgate-Palmolive (CL), Procter and Gamble (PG)

WD-40 (NASDAQ: WDFC) issued its Q2 earnings report yesterday after the close of the market trading session -- and it wasn't full of great news. The top line was essentially flat as net sales dipped 0.5% to almost $79 million. Earnings came in at $0.51 per diluted share versus $0.52 per diluted share in the year-ago time frame.

Another negative aspect to the report was the statement of cash flows. WD-40 took in a lot less in terms of net cash from operations this time around, as changes in working capital and other items affected the flow. There's also a lot less cash on the balance sheet. And, sorry to say shareholders, but WD-40 missed analyst expectations by the proverbial penny. Investors shouldn't always be concerned with Wall Street expectations, but here's something that shareholders will be concerned with: the company lowered its earnings outlook. Management says that revenue growth will probably be somewhere between 4% and 8% as opposed to the originally expected range of between 7% and 10% -- any hopes for double-digit appreciation are now history. Net income per share is now expected to fall in a range between $1.80 and $1.90 versus a previous range of $1.83 and $1.93.

Well, now, what do we make of all this? It was a disappointing report, no question. But WD-40 has some decent brands in its portfolio, including the flagship lubricant, although its brand collection isn't necessarily on par with others, such as Procter & Gamble (NYSE: PG), Colgate-Palmolive (NYSE: CL), and Clorox (NYSE: CLX). WD-40 isn't the current best play in the consumer-goods department at the moment, in my humble opinion. Some will point out that the stock's yield is attractive right now at 3%, but its dividend history isn't as good as others in terms of quarterly hikes. I'm not very bullish on WD-40; maybe I will be at a later date.

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

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Mickey Dee's wants to use cell phones as marketing tools

Steven Mallas — 2008-04-09T15:47:00+00:00

Filed under: Consumer experience, Competitive strategy, McDonald's (MCD), Clorox Co (CLX), General Mills (GIS), Procter and Gamble (PG), Wendy's Intl (WEN), Burger King Hldgs (BKC)

McDonald (NYSE: MCD) has issued a press release recently concerning the use of cellphone coupon marketing. The fast-food juggernaut wants its consumers to have the ability to snag a coupon whenever they desire and by
hooking up with a company called Cellfire, McDonald's is hoping it can establish a relationship with some of the
hip texters out there.

Cellphone users who download the Cellfire app can then text a certain number and receive a special code good for a specific offer. According to the release, McDonald's fans can take advantage of a free iced coffee promotion through April 27 in certain locations in Utah, Wyoming, and Nevada.

McDonald's knows we're an on-the-go society, and it obviously wants to leverage the fact that mobile devices are no longer just for talking -- we text, we play games, we surf the net, and, as I recently observed, we can even shop on Amazon on our cells (I say "we," but I should point out that I do not own a cell phone, believe it or not). However, as I stated in my previous post, I'm not so certain that Amazon's text-shopping service will take off.

In this case, though, I think consumers might indeed be apt to send a quick text and save some cash at their favorite fast-food joint. It's a simple protocol that just might inspire a significant amount of users to stop at their local Mickey Dee's establishment while running here and there. Certainly a lot of the youthful demographic will be targeted with this initiative.

I see the merit in this experiment. According to a Brandweek piece, consumer companies such as Procter & Gamble (NYSE: PG), Clorox (NYSE: CLX) and General Mills (NYSE: GIS) are also interested in coupon distribution via cellphones.

Obviously, traditional methods of distributing coupons won't disappear, but cell-phone marketing seems to me to be a great way to market to the youth and anyone who's away from home. Fast-food entities such as Burger King (NYSE: BKC) and Wendy's (NYSE: WEN), in addition to McDonald's, will benefit from an exploration of the limits of cell-phone targeted coupons.

Disclosure: I don't own shares in any of the companies mentioned here; positions can change at any time.

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Procter & Gamble proves yet again that dividends rule

Steven Mallas — 2008-04-09T09:00:00+00:00

Filed under: Press releases, PepsiCo (PEP), Johnson and Johnson (JNJ), Clorox Co (CLX), Procter and Gamble (PG)

Procter & Gamble (NYSE: PG) is one of my favorite companies. No, I don't own it; I should, I know, but I can't own everything. Nevertheless, I love P&G for its great collection of brands that dominate supermarket shelves. And, I also love that blue-chip dividend it pays out.

Well, the company announced that shareholders are going to get a raise. The quarterly payout increased 14% to $0.40 per share. Can P&G afford to do this? How does one check? Well, you'll want to look at a company's cash flow. P&G's latest 10Q shows that, for the latest six-month period, the Dow component generated $7.4 billion in operational cash. P&G spent about $1.2 billion for capital expenditures. Dividend obligations were $2.3 billion. Adding up the dividend payments and the cap-ex requirements shows that $7.4 billion amply took care of both financial activities. Yeah, I'd say that P&G can afford the nice double-digit increase.

Here's another nifty thing. Since the new annual payment is $1.60 per share, investors can buy P&G shares all the way up to a share price of $80 and still get a 2% yield. Yeah, that might not sound like much, but an excellent, dependable, low-risk blue-chip equity with a yield 2% or higher isn't something to dismiss. So, like PepsiCo (NYSE: PEP), Johnson & Johnson (NYSE: JNJ), and Clorox (NYSE: CLX), Procter & Gamble is a safe consumer-goods stock that should be looked to as a potential core holding. This latest dividend increase offers further evidence of such thinking.

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

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Options update 1-17-08: Clorox volatility elevated into EPS and outlook

Paul Foster — 2008-01-17T09:30:00+00:00

Filed under: Clorox Co (CLX), Options

Clorox (NYSE: CLX) closed at $62.46 Wednesday.

CLX will report EPS on February 4. BMO Capital says: "CLX's P/E of 17.1x our CY2009 estimate is at the lower end of a 15-year range."

CLX February option implied volatility of 26 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Best values in public colleges, coming credit card crunch & will bargain gas hurt your car? - Today in Money 1/7

Allan Halprin — 2008-01-07T09:00:00+00:00

Filed under: Microsoft (MSFT), Yahoo! (YHOO), General Motors (GM), New York Times'A' (NYT), Sony Corp ADR (SNE), Krispy Kreme Doughnuts (KKD), Money and Finance Today, Clorox Co (CLX)

In the News:

· Where Are Markets Headed After Last Weeks Plunge?

· Bill Gates Bids CES Farewell a Few Months Before Leaving Daily Duties At Microsoft

· Pressure Mounting for Big Rate Cut By Fed

· GM Sees Driverless Cars Within the Next Decade

· McDonald's Coffee Bars Take on Starbucks

· Investors Said to Seek Takeover of CNet

· Yahoo Makes New Play for Ads on Mobile Phones

· New York Times & CNBC to Share Material on Their Web Sites

· Sony's PS3 Was Big Holiday Hit With 1.2M Units Sold

· Wikia Wants to Shake Up Search

· Can Burt's Bees Turn Clorox Green?

· Krispy Kreme's CEO Ousted

· 'Subprime' Named Word of the Year Over 'Facebook', 'green' and 'Googleganger'

CES Kicks Off, But Some Scale Back
The annual Consumer Electronics Show in Las Vegas has become a challenging place to introduce new products so some companies are scaling back.
As Electronics Show Grows, Some Scale Back - New York Times
Also: Sony Hopes Thin Will Be In

2008 Best Values in Public Colleges
Here is where to find a first-rate education without breaking the bank. For in-state residents the University of North Carolina tops the University of Florida. If you are out-of-state the top school you may never have heard of. It is SUNY Geneseo, a small liberal arts college in western New York.
Top 100 Public Colleges - Kiplinger.com Rankings: Top 100 Colleges

The Coming Credit Card Crunch
The subprime mortgage crisis has cost millions of homeowners their homes. Now it threatens to put the squeeze on even more consumers by spilling into the credit-card market. Here's what you should watch out for this year.
The Coming Credit-Card Crunch | SmartMoney.com

Will Bargain Gas Hurt Your Car?
At a time when motorists are trying to shave even a few dollars off their fuel bill, shopping some of the lesser-known brands may be a good idea. Here is what you need to know.
Will bargain gas harm your car?

7 Easy Steps to Save an Extra $1,000 in 2008
Small changes to your spending habits really add up over a year. These painless moves could net you a grand.
7 easy steps to saving $1,000 in 2008 -Bankrate.com

Welcome to Your Office (circa 2020)
What will a day in your office be like 10 to 15 years from now? Here's a sneak peek, based on reports from the staff of Kiplinger Business Resources.
The Office of the Future - Kiplinger.com

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Clorox continues to brighten portfolios

Joseph Lazzaro — 2007-11-16T18:46:00+00:00

Filed under: Consumer experience, Brazil, Venezuela, Clorox Co (CLX), Mexico, Stocks to Buy

If recent market turbulence has dented your investment confidence, or if you're concerned about a continued U.S. economic slowdown heading into 2008, consider purchasing Clorox's shares.

Look for The Clorox Company (NYSE: CLX) to keep rolling along. Or, put another way, when will bleach use go out-of-style?

The world's best-known bleach brand has further impressed investors with its lesser-known, but profitable operations: Specialty Group [cat liter, charcoal products, dressings and sauces, Glad brand bags/containers], along with its International Group, which sell products in Latin America and Asia that are similar to those in North America.

What's more, bleach remains a key revenue driver, but in fiscal 2007 Glad trash bags accounted for 14% of revenue, Clorox about 12%.

The risks? Analysts have their eye on rising commodity costs, but CLX's cost cutting programs and pricing power should more than compensate for that concern, in the immediate years ahead. That fact, combined with the company's demonstrated proficiency in marketing, make CLX a low-risk investment. CLX's p/e of 19 is not low, but it's reasonable given its growth prospects and the amount safety the company affords.

The Reuters F2008/F2009 EPS consensus estimates for CLX are $3.40 to $3.99.

The First Call mean rating for CLX is: Hold. [15 firms.] Mean 2007 target: $67.40. [high: $78, low: $58.]

Stock Analysis: Clorox is a low-risk stock. Consider buying Clorox's shares if your portfolio needs a consumer defensive stock. Investors with an investment horizon longer than 1 year should be rewarded from CLX's shares. Sell / Stop Loss if you were to purchase shares of this company: $44.

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Earnings highlights: Crocs, Exxon, Kraft, P&G, Sirius, and others

Trey Thoelcke — 2007-11-03T10:10:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), Dell (DELL), Intel (INTC), Sirius Satellite Radio (SIRI), Exxon Mobil (XOM), IAC/InterActiveCorp (IACI), Avon Products (AVP), Chevron Corp (CVX), CIGNA Corp (CI), Kellogg Co (K), Clorox Co (CLX), Colgate-Palmolive (CL), MasterCard Inc'A' (MA), Procter and Gamble (PG), Trump Entertainment Resorts (TRMP), Verizon Communications (VZ), Alcatel-LucentADS (ALU), U.S. Steel (X), Under Armour'A' (UA), Newmont Mining (NEM), RadioShack Corp (RSH), Burger King Hldgs (BKC), Teva Pharm Indus ADR (TEVA), Kraft Foods'A' (KFT), Crocs Inc (CROX), Jones Apparel Group (JNY)

Lots more quarterly reports rolled out this past week, and here are some highlights of earnings coverage from BloggingStocks:

Alcatel-Lucent (NYSE: ALU) reported more losses and more job cuts.
Alvarion Ltd.'s (NASDAQ: ALVR) record quarter fuels speculation of a Cisco (NYSE: CSCO) buyout.
Avon Products Inc.'s (NYSE: AVP) profit rose 61%, buoyed by strength in emerging markets.
Chevron Corp. (NYSE: CVX) fell short of expectations due to tighter margins.
CIGNA Corp. (NYSE: CI) had a solid quarter but warned about 2008 earnings.
Clorox Co. (NYSE: CLX) blamed profit loss on materals costs, and announced acquistion of Burt's Bees.
Colgate-Palmolive Co. (NYSE: CL) beat estimates by a penny and had strong sales overseas.
Crocs Inc. (NASDAQ: CROX) beat earnings estimates and revised its full-year forecast.
Dell Inc. (NASDAQ: DELL) announced it would restate revenues, ahead of its November quarterly report.
Exxon Mobil Corp. (NYSE: XOM) missed expectations, also due to tighter margins.
Given Imaging Ltd. (NASDAQ: GIVN) cited FDA approval delays for disappointing results.
Hertz Global Holdings Inc. (NYSE: HTZ) posted record revenues and appointed a new CFO.
Humana Inc.'s (NYSE: HUM) positive surprise lifted the share price to a new all-time high.

IAC/InterActiveCorp (NASDAQ: IACI) fell short of expectations, dragged down by the housing slump.
International Paper Co.'s (NYSE: IP) revenue beat estimates, while earnings were in line with them.
Jones Apparel Group Inc.'s (NYSE: JNY) earnings soared on one-time gains.
KBR Inc. (NYSE: KBR) beat expectations due to one-time gains.
Kellogg Co. (NYSE: K) beat expectations, in part on the strength of international sales.
Kraft Foods Inc. (NYSE: KFT) citeed dairy costs and investments in its profit decline.
MasterCard Inc.'s (NYSE: MA) profit soared 63% on cardholder spending in international markets.
Newmont Mining Corp. (NYSE: NEM) easily beat estimates, sending the share price to a 52-week high.
Procter & Gamble Co. (NYSE: PG) beat estimates by a penny and had strong sales overseas.
Radio Shack Corp. (NYSE: RSH) beat expectations on earnings but not revenue.
R.R. Donnelley & Sons Co. (NYSE: RRD) beat estimates and revised its guidance.
Sirius Satellite Radio Inc. (NASDAQ: SIRI) reported a smaller-than-expected loss, strong subscriber growth.
Sprint Nextel Corp. (NYSE: S) stumbled in Q3 on management and merger issues.
TEVA Pharmaceutical's (NASDAQ: TEVA) strong margins helped it beat expectations by a penny.
Toshiba Corp.'s (OTC: TOSBF) profit soared due to increased sales of flash memory chips.
Trump Entertainment Resorts Inc. (NASDAQ: TRMP) announced higher profit on lower costs.
Under Armour Inc. (NYSE: UA) beat expectations and offered revised guidance.
U.S. Steel Corp, (NYSE: X) blamed its poor results on acquisitions costs and Chinese imports.
Verizon Communications (NYSE: VZ) reported a profit loss, based on tax-related charges.

Jim Cramer isn't buying the excuses that Comcast Corp. (NASDAQ: CMCSA) and Coach Inc. (NYSE: COH) offered in their recent quarterly reports. One expert is more impressed with Intel Corp.'s (NASDAQ: INTC) results than with Microsoft Corp.'s (NASDAQ: MSFT). And Zac Bissonnette points to the importance of questioning too-good-to-be-true results.

Upcoming results to watch for include: Archer Daniels Midland Co. (NYSE: ADM), Cisco Systems Inc. (NASDAQ: CSCO), General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F), Time Warner Inc. (NYSE: TWX), News Corp. (NYSE: NWS), Walt Disney Co. (NYSE: DIS), Burger King Holdings Inc. (NYSE: BKC), and Qualcomm Inc. (NASDAQ: QCOM).

Visit AOL Money & Finance for more earnings coverage.

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Clorox profit drops, will purchase Burt's Bees

Brian White — 2007-10-31T10:44:00+00:00

Filed under: Earnings reports, Clorox Co (CLX)

Clorox Co. (NYSE: CLX) reported a Q1 profit drop this morning on the back of raw material cost increases. It also announced that it will pay just under a billion ($925 million) for Burt's Bees, a leading provider of natural health care products. Burt's Bees has moved from health food stores and organic markets to the mainstream mass market in the last few years, probably marketing itself to be sold. Apparently, it worked.

Clorox's net income dropped to $111 million ($0.76 per share) from $112 million from the year-ago period, which could be seen as a slight decline based on commodity price swings in 2007 alone. Sales for the Q1 period did rise to $1.24 billion, a 6.7% increase.

Clorox indeed said in its earnings release that corn and soybean prices were main factors in the profit decline. Those two food commodities are used in its Hidden Valley food products (namely salad dressings). Resin prices rose in the quarter as well to their highest levels ever, affecting plastic products such as Glad trash bag products and bottles used to hold its namesake bleach.

All in all, Clorox's quarter was not bad considering the commodity turmoil it has exposure to, but I have to question the valuation of Burt's Bees. How did the company come up with a valuation of nearly a billion dollars? Clorox, are you listening?

Visit AOL Money & Finance for more earnings coverage

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Top stocks of past 10 years, ways to lessen AMT impact & most popular cars for men and women - Today in Money 10/31

Allan Halprin — 2007-10-31T09:29:00+00:00

Filed under: Google (GOOG), Apple Inc (AAPL), Wal-Mart (WMT), Coca-Cola (KO), Money and Finance Today, Clorox Co (CLX), MasterCard Inc'A' (MA), Alcatel-LucentADS (ALU), Kraft Foods'A' (KFT)

In the News:

· Fed to Announce at 2:15pm If They'll Cut Interest Rates Again

· Economy Logs Brisk 3.9% Grown in 3rd Quarter; Best in 6 Quarters

· Wal-Mart Plans to Unveil Big Holiday Deals This Week

· Clorox Buys Burt's Bees for $925 Million

· Alcatel-Lucent Posts Quarterly Loss, Cuts 4,000 Jobs

· MasterCard Profit Soars 63%

· Kraft Foods Profit Drops 20%

· Google Phone Plan Draws Interest From Verizon

· Google Takes on Facebook; Gets More Social

· Mortgage Applications Surge as Rates Drop; 30-Year Fixed at 6.15%

· Coca-Cola Signs Red-Hot Tom Brady to Endorse SmartWater

Taxpayers Find Ways to Lessen AMT Impact

The scariest thing about this time of year isn't Halloween. It's the chance that you'll get ensnared by the alternative minimum tax -- and wind up owing thousands of additional dollars in taxes. Taxpayers are increasingly factoring in the alternative minimum tax when devising their year-end tax-planning strategies.

Tax Report - WSJ.com

Best Stocks of Past 10 Years

Which stocks gained the most over the past decade? Maybe it's no surprise that Apple Inc. is in the No. 2 spot with a gain of 3,500%. But can you guess the No. 1 stock? The top stock from the NYSE and Nasdaq was specialty clothing company Chico's FAS which has risen almost 3,800% since 1997. Other top performers include three energy companies and another clothing company American Eagle Outfitters.
Winningest stocks of the past 10 years - MarketWatch

Certified Checks Not Foolproof

Counterfeiting checks is a big issue in the banking industry. You'd like to think you can trust a certified check, but you can't, at least not without taking some precautions.

Certified checks don't promise payment

Worst Products of Year: Sleeping Pills for Kids...

Consumers International presents its prizes for the most half-baked ideas of 2007. Sleeping pills for children, exploding laptops, lead toys and more make this dubious list.

http://www.bloggingstocks.com/2007/10/30/international-bad-products-awards-sleeping-pills-for-kids-and-o/

Most Popular Cars for Men & Women

Men buy trucks, women buy models from Saturn, Volkswagen & Honda. Chevy Silverado Heavy Duty is 93% male owners along with Ford F-350 andtThe Corvette is 90% male-owned. Women like the VW Beetle, Honda CRV and Hyundai Tuscon to name a few.

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Analyst initiations: HPC industry, ZINC and CSUN

Eric Buscemi — 2007-10-25T11:30:00+00:00

Filed under: Analyst reports, Estee Lauder (EL), Avon Products (AVP), Clorox Co (CLX), Procter and Gamble (PG), Kimberly-Clark (KMB), Analyst initiations

MOST NOTEWORTHY: The Personal Care, Household Products and Cosmetics industry, Horsehead Holdings and China Sunergy were today's noteworthy initiations:

Wachovia initiated coverage of the HPC industry with an Overweight rating, starting shares of Avon Products Incorporated (NYSE: AVP), The Procter & Gamble Company (NYSE: PG) and Kimberly-Clark Corporation (NYSE: KMB) with Outperform ratings and The Clorox Company (NYSE: CLX) and The Estee Lauder Companies Inc (NYSE: EL) with Market Perform ratings.
CIBC started shares of Horsehead Holdings (NASDAQ: ZINC) with a Sector Outperformer rating and $30 target, as they believe the valuation discount to other North American zinc producers will narrow as investors become more aware of the name.
Jefferies would avoid shares of China Sunergy Co Ltd (NASDAQ: CSUN) in the near-term as the company resolves issues regarding its access to polysilicon. The firm initiated shares with a Hold rating and $8 target.

OTHER INITIATIONS:

Goldman reinstated LSI Corporation (NYSE: LSI) with a Neutral rating and $8 target.
ThinkEquity initiated Advanced Analogic Technologies Incorporated (NASDAQ: AATI) with a Buy rating and $15 target.
Deutsche Bank resumed coverage of Spirit Aerosystems Holdings Inc (NYSE: SPR) with a Hold rating and $36 target.

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Comfort Zone Investing: Defensive stocks -- your bridge over troubled waters

Ted Allrich — 2007-08-04T10:30:00+00:00

Filed under: Consumer experience, Competitive strategy, Campbell Soup (CPB), Kellogg Co (K), Clorox Co (CLX), Colgate-Palmolive (CL), Countrywide Financial (CFC), General Mills (GIS), Procter and Gamble (PG), Merck and Co (MRK), Kraft Foods'A' (KFT), Comfort Zone Investing, IndyMac Bancorp (IMB)

Ted Allrich is the founder of The Online Investor and author of the just released book: Comfort Zone Investing: Build Wealth And Sleep Well At Night. In this weekly column, he'll offer advice to investors who are just getting started.

It's a good time to be a little defensive in the stock market, to look at stocks with a history of increasing earnings as well as dividends. While these don't tend to have a catalyst that will vault them into the stratosphere the way a tech or biotech stock can, they give a lot of comfort when there's so much turmoil in the market.

The first thing to think about when you're on defense is the shape of the economy and the kinds of items consumers always buy, no matter what the economy is doing. Consumer spending makes up about 2/3 of the U.S. economy. What the consumer does matters. Right now many consumers are having trouble paying their mortgages. Housing prices are going down in many areas of the country. Large mortgage lenders such as Countrywide Financial Corp. (NYSE: CFC) and IndyMac Bancorp. (NYSE: IMB) k are having problems with their portfolios. Defensive investors won't be looking into the mortgage lending stocks for comfort.

More likely they'll be looking at companies that supply things that people must buy, things like drugs, toothpaste, gasoline, toilet paper (also known as bathroom stationery), soap, food, utilities, etc. These are the basics. They're supplied by many different companies, and many of those companies are improving, even in these difficult times. Here are just a few ideas (not recommendations for investing, but recommendations for more investigating):

Drugs:
GlaxoSmithKline Plc (ADR) (NYSE: GSK)
Roche Holding Ltd (ADR) (OTC: RHHBY)
AstraZeneca Plc (ADR) (NYSE: AZN)
Wyeth (NYSE: WYE)
Pfizer Inc. (NYSE: PFE)
Merck & Co. Inc. (NYSE: MRK)

Household goods:
Colgate Palmolive Co. (NYSE: CL)
Procter & Gamble Co. (NYSE: PG)
The Clorox Co. (NYSE: CLX)
Church & Dwight Inc. (NYSE: CHD)

Food:
Campbell Soup Co. (NYSE: CPB)
Kellogg Company (NYSE: K)
H.J. Heinz Co. (NYSE: HNZ)
General Mills (NYSE: GIS)
Kraft Foods (NYSE: KFT)

Utilities:
Energen Corporation (NYSE: EGN)
Equitable Resources, Inc. (NYSE: EQT)
Questar Corp. (NYSE: STR)
EnergySouth, Inc. (NASDAQ: ENSI)
Southern Union Co. (NYSE: SUG)
Gateway Energy Corp. (OTC: GNRG)
Spectra Energy Corp. (NYSE: SE)
ITC Holdings Corp. (NYSE: ITC)
TXU Corp. (NYSE: TXU)

Again, these are ideas for research, not buying. I generated these with a screening program, using only the industry group and the net profit margin as variables. I've listed most of the stocks with the highest profit margins. That doesn't mean they're the best stocks or that they're right for you.

These give you a good beginning for a defensive portfolio, if you're so inclined. What you're looking for is the best stock in the industry group, which also pays a good dividend. Don't look only at one quarter's performance. Some stocks are good one-hit wonders, then fade. You want stocks that continually grow earnings and dividends. You can find that information on most financial websites such as AOL's Finance section or Investor's Business Daily.

With all the turmoil in the stock market currently, it will pay you pscyhic and real dividends to take some of your profits from stocks that are trading at high valuations and move that money into more defensive issues. If you're wrong, and the market takes off along with the stocks you've recently sold, then you've guessed wrong and won't make as much money. Chances are, though, that the new stocks you own will also move up with the market. If you're right, however, and the market gets even choppier or starts into a prolonged correction, you'll feel a lot better being on the defensive as other investors begin to scramble to be where you already are.

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Option update 8-2-07: Countrywide put volume & volatility spikes on investor hedging

Paul Foster — 2007-08-02T16:07:00+00:00

Filed under: SEC filings, Deals, Bad news, Rumors, Management, Employees, Clorox Co (CLX), Countrywide Financial (CFC), Options

Countrywide Financial (NYSE: CFC) put volume & volatility Spikes on investor hedging. CFC, the largest U.S. home mortgage lender, is recently down $1.19 to $26.03 on continued mortgage credit concerns. CFC Chairman, Angelo Mozilo, has been a consistent seller of CFC shares over the last month. CFC call option volume of 18,253 contracts compares to put volume of 60,213 contracts. CFC August straddle is priced at $7.20. CFC September option implied volatility of 113 is above a level of 75 from yesterday and its 26-month average of 41 according to Track Data, suggesting hedging for downside price risk.

Clorox (NYSE: CLX) volatility stays elevated after CLX sells off on EPS. CLX is recently down $4.52 to $57.11. Goldman Sachs says "earnings quality was very poor as operating results missed by .04 even with a lower than expected advertising to sales ratio." CLX September option implied volatility of 24 is above its 26-week average of 19 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Clorox in the black

Victoria Erhart — 2007-05-19T12:40:00+00:00

Filed under: Earnings reports, Good news, Management, Competitive strategy, Clorox Co (CLX)

The Clorox Company (NYSE: CLX) Q3 2007 earnings showed across the board sales and volume growth in all three of the company's major business segments. Net earnings were $129 million, or $0.84 per diluted share, a $19 million increase over Q3 2006 numbers. Quarterly EPS diluted included $0.04 per share, $10 million, equally divided between restructuring costs and upgraded IT services company wide. Globally, sales were up 7% to $1.24 billion for the quarter, while volume increased 8%. Clorox CEO Don Knauss credits three factors with contributing to Clorox's success: cost savings, price increases, and lower commodity costs.

Compared to Q3 2006, Clorox's Household Group division showed sales growth of 5%, volume growth of 9%, and 8% increase in pretax earnings. These figures were driven in part by record sales of Clorox disinfecting wipes, and increased shipments of Armor All and STP auto-care products. This division primarily services the North American market.

The Specialty Products Group showed 7% sales growth, 6% volume growth, and a hefty 19% increase in pretax earnings. The winner in this product category was Fresh Step kitty litter, which has increased sales for four straight quarters. Kingsford charcoal and Glad trash bags were also category leaders.

While Clorox makes most of its revenues in the North American market, it shows its largest growth potential in its international segment, where sales growth increased 16%, volume grew 13%, and pretax earnings increased 15%. Latin America is proving to be a lucrative market for laundry and cleaning products. This is good as the Australian market showed declines in both sales and volume.

For FY 2007, Clorox anticipates sales growth of 3-5% and diluted EPS of $3.21-$3.27, including $0.09 diluted EPS for continuing restructuring costs and IT upgrades through 2008. The stock closed on Friday at $67.07, down $0.01. At PE of $21.53, Clorox compares favorably (slightly) with Proctor & Gamble Co. (NYSE: PG) at $21.73, and Colgate-Palmolive Co. (NYSE: CL) with a PE of $24.42. Potential investors will want to wait until Clorox senior management rolls out its detailed restructuring plan, scheduled to be made public on May 24. Clorox may shed low-performing, low-margin brands, and may rearrange spending to target more potential growth opportunities outside North America.

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WD-40 Company: Much more than just lubricants

Larry Schutts — 2007-04-12T15:20:00+00:00

Filed under: Earnings reports, Clorox Co (CLX), Technical Analysis

Brand supremacy is often said to be the Holy Grail of business. There is a San Diego firm that ranks among the leaders in the quest for that absolute. The company's product list is one of the best recognized anywhere.

WD-40 Company (NASDAQ: WDFC) produces lubricants, hand cleaners, and household cleaners. Products include lubricants WD-40 and 3-IN-ONE Oil, the Lava and Solvol brands of heavy-duty hand cleaners, 2000 Flushes toilet bowl cleaner, X-14 bathroom cleaners, Carpet Fresh rug and room deodorizers, and Spot Shot carpet stain remover. The firm attempts to build brand equities that are first or second choice in their respective categories, by acquiring and developing products that deliver a unique value to end users and that can be distributed across multiple trade channels. Key competitors are Clorox (NYSE: CLX), Church & Dwight (NYSE: CHD) and S.C. Johnson.

The company pleased investors last week, when it announced Q2 EPS of 52 cents and revenues of $79.3 million. Analysts had been expecting 46 cents and $78.3 million. Management also guided FY07 EPS to $1.70-1.85 ($1.76 consensus) and FY07 revenues to $307-324 million ($313.14M consensus). The board authorized an open-ended buy back of company shares up to $35 million, over the next 12 months.

WDFC shares broke through concentrated moving average resistance on the news and have since been defining a bullish "flag" consolidation pattern. Prices frequently exit flags 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 one "strong buy," three "holds" and two "sells." Analysts see an 11% average annual growth rate, through the next five years. The WDFC Price to Sales ratio (2.08), Price to Book ratio (3.73), Sales Growth rate (20.93%), Return on Assets (10.58%), Return on Investment (12.89%), Return on Equity (18.23%) and Revenue per Employee ($1.25M) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 66% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $29.91 and $37.86. A stop-loss of $31.30 looks good here.

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

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Cramer goes activist and picks more CEOs

Jon Ogg — 2007-03-28T19:55:00+00:00

Filed under: After the bell, Analyst reports, Clorox Co (CLX), ConAgra Foods (CAG), Costco Wholesale (COST), Kohl's Corp (KSS)

Cramer on CNBC's MAD MONEY referred back to activist shareholders coming in, and he referred back to Heinz. With the Cadbury deal adding huge value.

As far as who would be worth calling that might do it: Clorox Co. (NYSE: CLX) and ConAgra Foods (NYSE: CAG). Private equity would consider both. Cramer thinks that at a minimum the companies can each sell under-performing brands or divisions. Clorox is No. 1 or No. 2 in most markets but it owns too many things that are unrelated like salad dressing, cat litter, plastic bags, water filters, bleach, charcoal and more. ConAgra is in three segments: retail products, food ingredients and distribution. Cramer thinks these would do better independently and they are run independently under strong managers. The company could fix itself or sell itself.

Cramer also has two more CEOs that you can give the benefit of the doubt.
These will make its numbers longer-term. The first is Jim Sinegal of CostCo Wholesale (NASDAQ: COST), who pays employees well and gives customers more high-end things they want while still innovating. It is even in insurance. Cramer said a TV-return policy was being abused. Cramer thinks the bad news is behind, but he thinks the CEO is great and can be trusted.

Lawrence Montgomery of Kohl's Corp. (NYSE: KSS) is another CEO that can be trusted. He said the lack of belief in the CEO is making investors miss out on it. Cramer says you don't have to buy it now, because it always comes in too far sometimes and that is when you buy it. Wall Street analysts don't understand it, according to Cramer.

Jon C. Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

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