Posts Tagged ‘ 4% ’

Heinz – An Emerging Market Food Leader

May 29, 2012
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Heinz – An Emerging Market Food Leader

Heinz (HNZ) had an Analyst Day on Thursday last week with about four hours of management presentations and Q&A posted on the investor relations section of the Heinz website. This presentation is a wonderful way to understand the Heinz business model and appreciate the strategic vision of the company. Heinz stock had a relatively strong run hitting new all-time highs around $55. Post-results, the shares have pulled back based on fears relating to the extent of reinvestment into restructuring projects, weakness in the frozen entrée category, exposure to Europe, and a near-term reduction in sales expectations as the company is being hit by foreign exchange and focusing on some low hanging fruit margin opportunities. Despite the concerns, Heinz is very well positioned strategically with a number of positives within...

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Investment Themes for Q4 Earnings Season

January 19, 2012
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Investment Themes for Q4 Earnings Season

Fourth quarter earnings season is upon us while the market is off to a torrid start to the year. While the S&P 500 is up 4% year-to-date, there are a number of riskier indexes and sectors doing considerably better. The NASDAQ is up 6.3%, the Russell 2000 5.2%, the Hang Seng 7.6%, the Brazilian BOVESPA 9%, and the S&P Homebuilders up 17%. These are stunning returns over a two-week period relative to how difficult it was to simply earn flat index returns plus the dividend yield for all of 2011. The market did this last year in January and February so there is a bit of a deja-vu feel to the start of the year. From higher valuations, it was a rough rest of the year from February on...

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US Housing Permit Activity Improves – Strongest in 3-Years

November 18, 2011
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US Housing Permit Activity Improves – Strongest in 3-Years

Housing is slowly and steadily showing signs of a bottom. Housing permits are required in most states before a housing start and are a leading indicator of overall housing demand. Housing permits improved to 653k which represents a 10.8% increase from September and a 17.6% improvement vs. last year. Both single-family and multifamily permits improved. Mortgage rates falling to 4% have helped housing affordability improve to the best levels in a number of decades. The combination of lower rates, growing median incomes, and falling house prices have all contributed. The longer-term outlook for housing is sound and buyers today should generally expect price appreciation over the longer-term. The market remains almost entirely focused on Europe. The financial crisis in the Eurozone is the most important driver and risk to...

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