Auto Parts Firms Maintain Speed Even As Market Shifts - Book Report/Review Example

Stocks tumble as biotech continues slump According to the AP report posted on April 10th by Staff Writer the economy is hurt with every firm showing a tremendous and a persistent decreases in stock indices as resulting from a decline in sales volumes and refrain from riskier market situation by the investors based on the plunge on biotechnology sector following its promising gains on the previous year and hence put under pressure to lower drugs prices. Fluctuations in market crushed the gains previous made posing fears of a likelihood of expansion of the market. Cold Weather Seen Chilling Retails Sales As revealed by the investor’s business daily posted on September 4th 2014, retails sales are headed become under attack from after major gains from March based on the combination of cold weather with the late Easter effect. It is also based on the siphoning away of discretionary expenditure from the off-line selling of retailers by the online selling. Most retailers are headed for negative sales with a sole exception of Costco. A further analysis reveal an abnormal negative sales at the beginning of the spring sales leading to price cut downs by retailing with a view to attract more consumers. Positive sales are expected in Costco, U.S comps with an exception of gasoline will reach a 5% gain with some decline in sales in such companies like Buckle recording negative sales growth of 2.7% Chipotle Keeps the Heat on Ahead of Q1 Earnings A major surprise is booming as Q1 report expected to reveal a massive growth by Chipotle restaurant despite cooking up robust returns. The pending validation of Thomson Reuters’s estimation of 21% percent earning per share and a sale increase of 20% expected to continue over the years double digit benefits. Chipotle has recorded a consistency in its financial growth concurrently has successfully expanded following 185 new restaurants fully fledged in 2013 and further to aims at opening up to 195 new restaurants in 2014 with most of its branches in USA which are further to be added, Europe and Canada. Through ShopHouse Southeast Asian Kitchen mechanism and Pizzeria locale investment based on pizza sales, provides a further opportunity expansion. The company was seen outdoing its competitors in 2013by sales of 9.3% with featuring McDonald’s recording a reduction by 1.4% as revealed by Q4 comps. Chipotle owns an IBD composite Rating of 98 with its Earnings per Share rated at 95. It is ranked number 59 of 197 total IBD restaurants portfolio. IBD 50 Stock Buffalo Wild Wings Outlook Seen Bright As reported by the Marilyn Much on the investor’s business daily posted on April 4th 2014, Buffalo Wild Wings has a promising prospects as indicated by strong momentum in the US emanating from for positive performance in eatery and sport bars as raises by Bob Derrington, Wunderlich security analyst. BWLD is ranked among the 50 list top IBD restaurants based on the stock growth. At the local and global level, Derrington further ranks BWLD much ahead of its competitors on his analysis of revenue, EPS growth rate as well as sales. It is further interesting to hear a 10 year growth projection of the company to hit 3000 emerging fast casual locations, global as well as local restaurants with a magnitude of 2000 new locations. On a short term strategy, the company maintains its EPS’s growth rate of above 20% with the new 2014 guidelines of Q1 EPS of up to 53%, buy rating reiterated as well as EPS growth of 27%. On a global perspective, more negotiations are on course for India and possible alternatives in Brazil and China with a projection of 400 restaurants in US and the finished deal in UAE, Philippines, Saudi Arabia and Mexico and this is believed to have a stabilizing effect on to a longer-term EPS. The company management is also considering incubation of up to five brands that will have a national growth potential, fast casual positioning, distinguished experience as well as loyal user focused. Exploration of PizzaRev concept and the subsequent increased investing in Pizza production is attached to potential growth, economically favorable and fast casual pizza experience. One of the incubated brand is projected to attract up to 900 locations. Auto Parts Firms Maintain Speed Even As Market Shifts A report rendered by Vance Cariaga of the Investor’s daily shows a greater attachment of a four years gains of the auto-retailers and distributors to technological, consumers trends as well as economic which have saw increased demand of car parts and maintenance services and prolonged time of cars on roads. It was aimed that auto-parts sales would decline resulting from the earlier expectation of a temporary favorable market dynamics which became permanent resulting into increased car sales and hence increased demand of auto- parts as aging trucks and cars continuously demand auto-parts from retailers. There has been a double digit benefits experienced in AutoZone and O’Reilly Automotive with summed revenue of $15.7 billion, the top two players in the market distributing these parts to repair retails. Sound growth are also expected by auto-parts with IBD’s auto-parts highly trade as indicated by Genuine Parts that has recorded a significant growth margins. The persistent in average aging rate of old fleet which is expected to continue through to 2018 accounts for the increased demands for auto-parts and increased drivers as well as increased population hence demand for old cars. Where Rentals Rising Most: Texas, California, and Florida Marilyn Alva reports in the investor’s business daily dated March 3rd 2014 reveals significant annual growth rates of 6% in Florida, California and Texas all in US metro areas based on the contribution of retirement and resort spots with Washington Dc recording the least rental growth of all the metro areas and California topping A slow apartment rental growth rates was evident in non-metro parts of the economy during February at national perspective. Nationwide Rental growth was seen to be positive in February at 2.8% but lower at 3.5% the previous year. There is a projected challenge resulting from the higher rental prices on A-class properties which would further create more burden on an already escalating occupancy rates with February national rates up 14 basis points from the January 10 points. A critical examination of the house buying franchise HomeVestors, Texas markets were more potential with Houston, Austin and Fort Worth better economies enabling them ranked best in buying rental single-family homes. This will further raise rental prices as it is projected to create shortages of houses as spring thaw is ushered in. Despite not ranked by IBD, most apartment shares are increasing such as AIV and EQR just to mention a few. China Accounting Flap May Need Help From Obama, Xi As Doug Tsuruoka reports for the Investor’s Business Daily, in attempt to resolve the unresolved fraud scandal circumventing US listed companies, the AgFeed industry’s top executive has been penalized by the Security and Exchange Commission for illegally raising their stock through their China’s firm. This even more serious following this year’s charges on the 2010 scandal involving a hundred Chinese firms in US which aimed at probing their accounts and consequently sparkling a conflict between the two governments on the mode to access these accounts. The bond of contention is on the disagreement on a common accounting concept to be applied in compensating the Chinese firms seeking billions in US capital. Asset, Income and revenue components are some of the technicalities derailing this process as to the Chinese, goodwill is not an asset to which is GAAP according to US. This has seen delisting trading halts as well as bankruptcy of over 300 Chinese firms leading to massive loss billion during liquidation. US auditing firm were have also been suspended by SEC from auditing the Big Four accounting Chinese firms associates resulting from as hoarded the audit records as this would be tantamount to violation of Chinese’s secrecy laws following the probed of Chinese firms by US. The Big Four Firms appealed against their suspension and continue to audit the listed companies as they await the ruling by the Five Judge SEC judges. Attempts to reach the SEC’s spokesman were futile she referred the case as being in litigation as Breath is put on hold as the US investors awaits multibillion Chinese firms in US markets. Tiffany Rallies As Outlook Is Seen As Overly Cautious As reported by Gillian Rich, Tiffany and Co released fourth quarterly report that saw earnings rising by 5% to $1.47 based on cautiousness of jeweler which was below the estimated figures of $1.52 by analyst. Sales also recorded a lower figures of $1.29 attached to a 5% increase but below the projection of $1.31 billion. In regard to regional sales, Asia-Pacific increased by 8% and a 10% increase in Europe with a comparable global stores sales increasing by 6%. The Current years EPS of $4.15 also falls short of projected $4.28 as Tiffany is assumed to be cautious with its outlook with the stock market shares arising to 92.36 which is a rise of 2.3% as it is believed to boost America by promoting lower product prices. Qihoo 360 Closes China Internet Search Gap with Baidu Qihoo 360 Technology is a Chinese internet that has persistently lagged behind the Chinese top ranked search engines but is aimed at benefiting from this. Is has spent more funds in new mobile gaming as well as search technology over the past years and is core in provide internet and mobile security services hence drawing its reputation in China. A major gain is drawn from its 2012 search engine launch share which has heightened the rush for market creating closing ranks with Baidu believed to be its main competitor. Qihoo is seen gaining ground as it carves more shares in search engine market seeing sound financial gains as it serves 25% against Baidu’s 58% China’s Web search traffic. Qihoo further projects a 30% coverage in web search as well as an increased mobile search which seen as the strategies employed to stake a place in Chinese web search. An expansion of search advertisement revenues which together with earlier strategies saw Qihoo fourth quarter report doubles to 142.4 million based on online and revenue of which was explained by the advertisement that appeared on startup pages. Dollar General Stays Cautious On Earnings, Economy James Detar reports a decline in sales, a problem attached to winter effects unfavorable for customers’ was noted in Dollar General Shares revealed by the fourth-quarter sales as well the effect of having fallen short of Wall Street’s projected values but maintained that this was a good performance in contrast to its competitors. Its revenues of $4.49 in contrast to analyst figure of $4.62 despite a 7% increases and the sales was positive at 1.3% with EPS rising 1.01 following a $% rise of which both were in line with ground projections. Its cautiousness in US economic outlook based on Q1 report saw its shares at 74 cents patient below 81 cents earlier projected figures per share. Total sales is expected to rise to 9.8 following 8% Q1 sale and 3% store sales rise. EPS is pegged at 3.55 based on an expected sales gain of 9% by the company as Wall Street projects sales growth of 10.1 with EPS of $3.69 on the same on a year projection. ObamaCare mandates is expected to impact the company by higher costs attached to healthcare. It is reported that its shares were trading low at 3% and the family Dollar Stores traded at 1.7% on stock market. US jobless queue shortest in 3-months; but workers less productive in Q4 As revealed by the reduction in number of recruit Military in San Diego as more unemployment benefits claims a reduced by 26,000 indicating a recovery of the labor market from negatively impacted by weather. The reduced worker productivity despite this is attached to revision of nonfarm productivities downwards by the US government. Sluggishness in production is reported the realized figure of 1.8% annual rate fell much less below the projected 3.2% despite a third quarter productivity increases of 3.5% but this figure is expected to be scaled down to 2.5 in the fourth quarter as revealed by Reuters. Unit labor cost fell 0.1% falling short of analyst projection of 0.9% compared to the previous figure of 1.6 and this is attached to inflation effects. National Parks Contribute Billions to Economy, Report Finds National Parks earn the US much of revenues on a wider coverage as indicted by its service report a $14.7 billion resulting from recreational tours in the 401 branches, 60 miles away from the Park. Such expenditure indirectly gave rise 243, 000 job placement injecting a further $26.8 billion into the economy. Most of US sectors would serious be hurt should there be a persistent closure of the tourist activities as indicated by a loss of $414million expenditure in local communities following a short period sequester closure of national parks. Harsh weather tests optimism over US economy Despite the current negatives impacts harsh weather has on the economy, expectation at high as on an increase in GDP following the weather effects as attempts will be made by firms to dispose their accumulated inventories with an aim to curb expiration of products and to work in the interest of the unemployed. Economist projection still hold despite the weather threat to dollar at over 0.5% but a recovery is seen to be inevitable. Some economist dissents and as see a possible loss of momentum should the government fails to cut back to the projection of 3.2% to 2.5% growth as we usher in the fourth quarter. Factories production are hard hit as less orders are placed by the businesses and the report further attach end of jobless benefits and uncontrolled high inventory accumulation to slow in economic growth besides weather. Wealth redistribution or growth—not both: Sam Zell Zell in his suggestion regarding the status of US economy puts more emphasis to growth as appeal to the government to eliminate unnecessary restriction on wealth redistribution as he views that it rarely possible to concurrently run such a policy and at the same time achieve a sound economic growth and suggest the application of monetary policies to be used to uplift the growth though Bullard agrees in parts affirming the need to focus on growth but not based on monetary policies. Zell describes the US economy as benign and calls for stakeholders to change tactics on how to urgently recover from the 2008 impacts. Dozens of states, cities coping with bad bond bets Fear of the riskiness of bets following the 2008 financial crises that affected every sector rounded up to be loss of $4 trillion, Detroit’s bankruptcy in attempt to compensate $4 million to city swaps shareholders, has entered in negotiations. Taxpayer’s dollars are diverted to the inevitable swaps with Bloomberg lack of swaps outstanding making it impossible to undertake a full accounting. Deals entered into are kept by municipalities and are not registered with the state cities but are kept in the comprehensive annual financial reports at the end of trading periods. Over 500 swaps are still available and over 70 entities remitting more than $1.3 billion yearly based on the accessible public reports. Stimulus debate still rages As US controversial economic stimulus plan based on monetary stimulus is 5th year is unveiled, by President Barack Obama, as he stresses on the Great Depression though aversion of expenditure, sparkling a further debates long after the adoption of the plan as people are not sure of the projected benefits from this plan following the recession of 2008. A report aimed answering doubters saw an average of 1.6 million job placement yearly for the previous four years and a separate report also saw GDP rising 3% through first half of June but Republicans disputed the report terming the stimulus as not cost effective with fake promises. As Obama seeks for infrastructural expenditure congressional approval the stimulus remains the benchmark upon which debate is defined. Mich sees nothing to celebrate about but more torments resulting from the stimulus five years down the line. Economy takes $50B winter weather hit: CNBC survey A magnitude loss of $50 billion is attached to weather conditions according Wall Street Wall economies, particular major percentage attached to this year’s bone-chilling and snow shaved reducing hours worked and sale volume. A 0.3% net expectation in the following quarter is to offset this loss arising from houses and cars demand. Job markets are also under attack by weather as estimated 80,000 loss is revealed. US inventories post slim gain in December; may trim GDP GDP trimming is looming following increased accumulation of wholesale inventories and hence negative to fourth-quarter growth. It is noted that much longer time will be taken to clears shelves up to 1.17 months. There is a belief by the economist about the sustainability of the current inventories state of affairs and hence a restrained 2014’s growth is soon being felt. US jobless line shortens as productivity jumps; trade gap widens Brighter future is looming for the US economy as labor markets stability is welcomed characterized by reduced job seekers queues followed by the increased labor productivity. Unemployment benefits claims are curving inwards and this ushers in a rational economic growth with a negative economic impact attached to trade gaps broadening. The non-farm productivity was seen to have expanded above the economists fourth-quarter projections as the inflation is attached to weak labor unit costs. Exports declined leading to BOT deficit a threat to trim GDP. Manufacturing slows sharply in January, sends new orders reeling There is a persistent weaker growth in the US manufacturing industries attached to ushering of current order growth for the past 33 years with average lower factory activities pegged at 8 months. ISM reveals a fall in factory activity index to 51.3 the previous month a level viewed as the lowest ever in May 2013 based on December’s fixed value of 56.5 and similar situation also merged January readings. The vital threat was a greater decline in forecast new orders indices following from 64.4 to 51.2, a record 13.2 points drop. Price indices were also a significant point to note as it hit 60.5 from the initial 53.5. To this end, raised figures were also met construction activities expenditure of 0.1% figure translating to $930.5 billion as reported by the Commerce Department. US consumers spend more in December, but income barely rises Consumer was so higher than projection putting more pressure on the economy but analyst suggests normality in the first quarter. Reuter’s poll projected a consumer’s expenditure of about 75% of economic activities. Plugging in the inflation effects, 0.2 rise of consumer expenditure was recorded. Affirmation was made by the fourth-quarter report revealing a continuous trend in 2013. The stagnancy in inflation below the Federal Reserve’s 2% aim implies interest rates are nearing zero as FED aims at reducing the money supply. US durable goods swoon in December, casting pall on economy A decline in the order placement for durable manufactured goods with 4.3% which came as surprise to producers resulting from increased expenditure on capital goods overlooking of the economy. Economist projected December 1.8% increase in order placement in contrast to 3.4% advance November rise. New US home sales drop 7 percent, miss estimates There has been a reduction in US single family home sales much lower than expected but with stability recorded in housing markets resulting from steady price gains as well as the inventories. A housing supply problem will call for five months rising from the initial 4.7 months requirement. A normal practice of 6.0 moths on house supply is heath for the economic forces of demand and supply. US manufacturing growth slow in January: Markit January manufacturing orders went down but a growth rate remained stable as indicated by the analysis of the 2014 first three months. Markit revealed a decline of Purchasing Managers Index to 53.7 from the December’s 55.0 and no change is expected by the Reuters based on economists analysis’s. The fall is attached to slower pace of output and new order growth as both declined but were associated with increased manufacturing jobs monthly. Expansion was measured with indices reading of over 50 for both main and sub-indices. By mid-2013 increased growth was evident and high in November this would result into temporary blip in Payroll in December. Bibliography CARIAGA, V. (03/27/2014 04:50 PM ET). Auto Parts Firms Maintain Speed Even As Market Shifts. INVESTOR'S BUSINESS DAILY, 3-4. CARIAGA, V. (04/04/2014 12:46 PM ET). Chipotle Keeps The Heat On Ahead Of Q1 Earnings. INVESTOR'S BUSINESS DAILY, 1-2. Read More