rsh

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aetna Inc. (NYSE: AET) reported better-than-expected Q3 earnings and revenue, sending shares higher.
• Allergan Inc. (NYSE: AGN) reported better-than-expected Q3 numbers, sending shares higher.
• Bare Escentuals Inc. (NASDAQ: BARE) Q3 profit easily topped analysts' estimates, and shares surged.
• Cabot Oil & Gas Corp. (NYSE: COG) received an upgrade following the release of its Q3 numbers.
• Estee Lauder Companies Inc. (NYSE: EL) reported strong Q1 results, sending shares higher.
• E*Trade Financial Corp. (NASDAQ: ETFC) reported a smaller-than-expected net loss for Q3.
• Goodyear Tire & Rubber Co. (NYSE: GT) Q3 earnings topped estimates and revenue was up sequentially.

It's extremely tough to survive in the retail consumer electronics space, especially with competitors like Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT). Yet, RadioShack (NYSE: RSH) continues to find ways push ahead.

Today, the company released its Q3 report. Revenues came in at $990 million, which was a nice beat on the Wall Street consensus (about $962 million). Net income was $37.4 million, or $0.30 per share, which compares to last year's earnings of $49.1 million, or $0.38 per share. Keep in mind that the company has increased spending on branding (for its new positioning as "The Shack," which appears to be getting traction).

An update on a short position: Radio Shack Corp. (NYSE: RSH), first recommended on August 4, 2009 at a price of $16.13.

Too many retail (and wholesale) electronics stores in the U.S., too many Radio Shack stores, and a likely sales decline for Radio Shack in FY2009 and FY2010 do not bode well for RSH's shares.

Investor and trader Mishko Janusevich, he of decent-sized net worth fame, had a mantra that he used to repeat while outlining the top, new stock shorts that appeared that day, as determined by technical indicators.

He would stand next to the overhead projected stock chart at the front of the trading room, point to the stock chart and recite, "You see this stock? You see that it's dropped $8 in past two days? You think it can't drop any more? SELL THAT STOCK, it's dropping more!!"

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Amgen Inc. (NASDAQ: AMGN) reported strong Q2 earnings thought revenue fell but beat analysts' estimates.
• Colgate-Palmolive Co. (NYSE: CL) beat Q2 earnings estimates but revenue suffered from currency effects.
• Dow Chemical Co. (NYSE: DOW) reported a drop in Q2 revenue and a net loss on restructuring charges.
• Eastman Kodak Co. (NYSE: EK) posted a deeper-than-expected Q2 net loss as sales plunged.
• Exxon Mobil Corp. (NYSE: XOM) reported its lowest quarterly profit in years, well short of expectations.

Electronics retailer RadioShack Corporation (NYSE: RSH) sold off on Monday. The market wasn't impressed by the earnings beat that management delivered. According to Reuters, the 39 cents per share that RadioShack booked for the second quarter went 10 cents beyond analyst expectations.

That sounds pretty good on the surface. And, to be honest, I bet shares of RadioShack would have rallied had conditions been different. The major indexes have seen a lot of bullish action as we all know, and I think a fair amount of stocks now might run the risk of selling off on a decent bottom-line report just because of worries in the system. When you think about it, this rally has to end some time. And if you take a look at RadioShack's stock performance since early March, you have to wonder how much more buying interest is left at this point.

If you have ever seen news exhaustion at the end of a week, this was that week. The only surprise after seeing the post-earnings reactions last night was that the market didn't stay down hard. Coming into this morning, we had a 12 day consecutive NASDAQ winning streak. Here were today's unofficial closing bell levels:

Dow 9,095.51 +26.22 (0.29%)
S&P 500 979.78 +3.49 (0.36%)
Nasdaq 1,965.73 -7.87 (-0.40%)

Top 10 Analyst Upgrades/Downgrades

Lance Armstrong is in the midst of a comeback over in the Tour de France, but he is making news for reasons other than his exploits on his bicycle. Yesterday, Lance announced that he will return to the Tour de France in 2010 and will be riding for a new sponsor, RadioShack (NYSE: RSH).

The terms of the deal were not available, but it also includes rights to Lance as he participates in marathons and triathlons. On his website, Livestrong.com, Armstrong said, "RadioShack has agreed to partner with us on this venture and ensure that this partnership and this team stays alive for years to come." This means that Armstrong will be leaving Team Astana after this year's Tour, and will probably be taking a number of teammates with him. There will also be other sponsors named, with Nissan the most prevalent, and the rumored budget for the team is $20 million.

TheStreet.com's Jim Cramer says until he releases a framework for the banks, all bounces will be short-lived.

I feel better. Now I hope people selling stocks also feel better so they stop selling, so we can get higher prices, so I can sell.

There.

I think everyone agrees with me.

There.

Most important, I hope that everyone who is selling banks or shorting banks takes a bank holiday so we can get through this period.

There.

Market Downturn Pushes Top Stocks Under $10
It has been almost impossible for most stocks to avoid the carnage and mayhem of late. These are the latest to fall under $10/share. They include Starbucks, Limited Brands, Southwest Air, Whole Foods and Radio Shack.
http://www.247wallst.com/2008/11/as-market-plu-1.html

8 Reasons You Should Skip Black Friday Sales
Many people look forward to Black Friday and all the deals. But it's important to remember that this event was created to lure customers. The bold fliers with incredible-sounding deals may beckon you to start loosening your wallet strings, but they shouldn't. Black Friday shopping may very well put you in the red.
http://www.mainstreet.com/article/lifestyle/money-sapping-secrets-black-friday-sales

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) Q3 results were dragged down by charge-offs due to the recession.
• Apple Inc. (NASDAQ: AAPL) posted stronger-than-expected results due in part to iPhone sales.
• Boeing Inc. (NYSE: BA) posted a bigger-than-estimated earnings decline due in part to the strike.
• Coach Inc. (NYSE: COH) reported Q1 earnings that were in line with Wall Street expectations.
• Freeport-McMoRan (NYSE: FCX) Q3 results fell more than expected due to lower copper prices.
• Kimberly-Clark Corp. (NYSE: KMB) edged past estimates but felt the squeeze from exchange rates.
• McClatchy Co. (NYSE: MNI) reported dismal Q3 results as advertising revenues dry up.
• Microsoft Corp. (NASDAQ: MSFT) posted solid Q1 results but offered conservative guidance.
• New York Times Co. (NYSE: NYT) reported awful earnings and announced that it might cut its dividend.
• Philip Morris International Inc. (NYSE: PM) topped profit estimates and maintained its guidance.
• RadioShack Corp. (NYSE: RSH) better-than-expected results were driven by sales of digital TV converters.
• Sun Microsystems Inc. (NASDAQ: JAVA) warned of a Q1 loss and acquisition-related charges.
• Texas Instruments Inc. (NYSE: TXN) missed estimates due to slowing mobile phone sales.
• United Parcel Service (NYSE: UPS) reported better-than-expected Q3 earnings.
• Yahoo! Inc. (NASDAQ: YHOO) earnings tumbled in Q3 and it announced layoffs.

For more earnings highlights from this week, see Amazon, McDonald's, Mattel, Pfizer, AT&T, Sony and others.

Watch for upcoming quarterly reports from Verizon (NYSE: VZ), Estée Lauder (NYSE: EL) , US Steel (NYSE: X), Aetna (NYSE: AET), Procter & Gamble (NYSE: PG), Qwest (NYSE:Q), Comcast (NASDAQ: CMCSA), Kellogg (NYSE: K), Kraft Foods (NYSE: KFT), MetLife (NYSE: MET), Moody's (NYSE: MCO), Office Depot (NYSE: ODP), Avon (NYSE: AVP), CBS (NYSE: CBS), CVS Caremark (NYSE: CVS), Sun Microsystems (NASDAQ: JAVA), Eastman Kodak (NYSE: EK), Motorola (NYSE: MOT), Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Washington Post (NYSE: WPO).

Visit AOL Money & Finance for more earnings coverage.

RadioShack Corporation (NYSE: RSH) reported earnings for the third quarter the other day, and according to the bullet points of this article, the electronics retailer beat analyst expectations by three pennies. Earnings came in at $0.39 per share. And I say, so what?

Why do I say this? Well, to be honest, RadioShack has never been my favorite retail investment idea. No, I've never had a problem at any of the company's locations, but seriously, how often do you hear people talk about RadioShack? I don't hear many people talk about the place, I can tell you that. Best Buy Co., Inc. (NYSE: BBY), Wal-Mart Stores, Inc. (NYSE: WMT), Target Corporation (NYSE: TGT) -- these are the retailers people think of first when they think of electronics, fair or not. At least, that's what I've been getting lately. And here's an interesting wrinkle to the earnings report. Sales were driven by those digital converter devices that many households will need to use their television sets once digital broadcasting begins in February 2009. Not that this is an original observation, but when I read that, I immediately thought to myself "well, where does RadioShack go from here?" The company is going to find it tough to stand out among the crowd in the next few months. Brand equity is really going to come into play. The brand equities of the aforementioned competitors will aid them in bringing traffic onto their sales floors. When it comes to a day like Black Friday, which is the kickoff to the holiday shopping season, I think consumers will be most excited about the deals they can get at a Wal-Mart or a Target and not the ones they can get at a RadioShack.

Sure, that might sound obvious, but it's one of the reasons why I wouldn't want to put money down on RadioShack. The company's stock is near a 52-week low, but it's not a buy. Management is trying to improve its standing in the eye of the electronics consumer, but it'll be a long time before that happens. Besides, the bigger stores simply have more to offer both in terms of shopping experience and one-stop buying. There theoretically will always be a place for a RadioShack. But there's not a place for it, at least at this time, in my portfolio.

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

Analyst upgrades:

• Merrill upgraded Schering-Plough (NYSE: SGP) to Buy from Neutral citing the company's better near-term pipeline outlook with two potential blockbusters to be approved over the next year. Schering-Plough's target was raised to $23 from $20.
• Morgan Stanley lifted RadioShack (NYSE: RSH) and Texas Roadhouse (NASDAQ: TXRH) to Equal Weight from Underweight.

Analyst downgrades:

• Jefferies downgraded shares of Hologic (NASDAQ: HOLX) to Hold from Buy as they see limited near-term catalysts after the company reported a Q3 miss and lowered top-line guidance for FY08. The firm lowered their target to $24 from $28.
  
• Baird downgraded California Pizza (NASDAQ: CPKI) to Neutral from Outperform as they see limited near-term upside given the uncertain 2H08/2009 outlook. The company's target was lowered to $15 from $17.
  
• JP Morgan downgraded Jones Lang LaSalle (NYSE: JLL) and CB Richard Ellis (NYSE: CBG) to Neutral from Overweight due to the continued challenging economic environment.

Analyst initiations:

• BC Capital initiated Dollar Financial(NYSE: DLLR) with an Outperform rating and $24 target. The firm likes Dollar's geographically diversified business and valuation.

Ultralife Batteries (NASDAQ: ULBI) provides a range of non-rechargeable and rechargeable batteries, charging systems and communications accessories for use in military, industrial and consumer portable electronics products. The company's non-rechargeable lithium batteries are used to power such diverse devices as radios, emergency radio beacons, search and rescue transponders, portable medical devices and smoke alarms. Its lithium polymer and lithium ion rechargeable batteries are used in such portable devices as laptop computers and cell phones. The US Department of Defense accounts for about twenty percent of Ultralife's sales. Major commercial customers include General Dynamics (NYSE: GD), General Motors (NYSE: GM) and RadioShack (NYSE: RSH).

The company pleased investors last week, when it issued upside guidance for the current quarter and year. Management sees Q2 revenues of more than $75 million ($60.43M consensus) and FY08 revenues of at least $250 million ($240.27 million consensus). The CEO said the better performance was attributable to "strong shipments to date, strong backlog in most businesses and requests from customers for accelerated deliveries against their orders."

MOST NOTEWORTHY: IberiaBank, Dynamic Materials and Barr Pharmaceuticals were today's noteworthy upgrades:

• Keefe Bruyette upgraded shares of IberiaBank (NASDAQ: IBKC) to Market Perform from Underperform after the company announced that Pulaski has assumed the insured deposits of ANB Financial of Bentonville, Arkansas.
  
• KeyBanc upgraded Dynamic Materials (NASDAQ: BOOM) to Buy from Hold citing stability in base business, valuation, and the added benefit associated with a European competitor being acquired.
  
• Cowen raised Barr Pharma (NYSE: BRL) to Outperform from Neutral citing the recent pullback.

OTHER UPGRADES:

• Goldman added McGraw-Hill (NASDAQ: MHP) to its Conviction Buy List.
  
• RBC Capital raised RadioShack (NYSE: RSH) to Sector Perform from Underperform.
  
• Sirius Satellite (NASDAQ: SIRI) was upgraded at Merrill Lynch to Neutral from Sell.