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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Filed under: Products and services, Dell (DELL), Marketing and advertising

Dell, Inc. (NASDAQ: DELL) has been wading in the retail pool for next to half a year now, first entering into Wal-Mart Stores, Inc. (NYSE: WMT) locations and just recently into Staples, Inc. (NASDAQ: SPLS) stores. This is good. Instead of focusing directly on consumers calling into its sales lines or visiting its website, Dell needs to expand its sales strategy. But, the goings on are early.

One thing that is confusing to the marketplace is Dell’s intention on the reseller market, to which it may enter to some unknown degree. Yes, that statement sounds pretty ambiguous, but that is the feeling many channel retailers are receiving right now, apparently. Dell announced this past summer that it intended to pursue a channel strategy — but what that strategy is still remains unknown as of November. Is Dell having a failure to communicate here?

Some reseller partners may, in fact, be turned off by Dell’s failure to line up exactly what it plans to do with its channel strategy. That is a segment of customers you don’t want to get on your bad side, and hopefully Dell knows this. After all, selling through national retailers is not the only way to enter retail these days.

Add to that some frustration that existing EqualLogic customers (a company Dell just acquired) are feeling and it’s pretty easy to see that there are legitimate beefs here. One reseller partner with a heavy investment in EqualLogic summed up his feelings pretty easily by saying “It’s very difficult for me to believe Dell will embrace the channel after 25 years of bad mouthing the channel and selling a half percent over cost.” Ouch.

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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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Filed under: International Business Machines (IBM), Research in Motion (RIMM), Options, salesforce.com inc (CRM)

International Business Machines Corp. (NYSE: IBM) recently up 45 cents to $104.10.

IBM is frequently chattered as a potential acquirer of Research in Motion Limited (NASDAQ: RIMM). IBM trades at a P.E. of 33. RIMM trades at a P.E. of 78. IBM has a market cap of $142 billion. RIMM has a market cap of $59 billion. IBM December option implied volatility of 31 was above its 26-week average of 24 according to Track Data, suggesting larger risk.

Salesforce.com (NYSE: CRM) volatility fattens as CRM rallies to record on earnings per share:

CRM was recently up $2.22 to $46.34. Wedbush Morgan says “Good Q3, but we remain cautious due to conservative 2009 revenue guidance with only modest margin expansion.” CRM call option volume of 9,200 contracts compared to put volume of 11,092 contracts. CRM December option implied volatility of 50 was near its 26-week average after decreasing from a level of 68 on November 15 according to Track Data, suggesting decreasing risk.

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

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Filed under: Products and services, Dell (DELL), Marketing and advertising

Dell, Inc. (NASDAQ: DELL) has been wading in the retail pool for next to half a year now, first entering into Wal-Mart Stores, Inc. (NYSE: WMT) locations and just recently into Staples, Inc. (NASDAQ: SPLS) stores. This is good. Instead of focusing directly on consumers calling into its sales lines or visiting its website, Dell needs to expand its sales strategy. But, the goings on are early.

One thing that is confusing to the marketplace is Dell’s intention on the reseller market, to which it may enter to some unknown degree. Yes, that statement sounds pretty ambiguous, but that is the feeling many channel retailers are receiving right now, apparently. Dell announced this past summer that it intended to pursue a channel strategy — but what that strategy is still remains unknown as of November. Is Dell having a failure to communicate here?

Some reseller partners may, in fact, be turned off by Dell’s failure to line up exactly what it plans to do with its channel strategy. That is a segment of customers you don’t want to get on your bad side, and hopefully Dell knows this. After all, selling through national retailers is not the only way to enter retail these days.

Add to that some frustration that existing EqualLogic customers (a company Dell just acquired) are feeling and it’s pretty easy to see that there are legitimate beefs here. One reseller partner with a heavy investment in EqualLogic summed up his feelings pretty easily by saying “It’s very difficult for me to believe Dell will embrace the channel after 25 years of bad mouthing the channel and selling a half percent over cost.” Ouch.

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Filed under: Consumer experience, Competitive strategy, Ford Motor (F), Lowe’s Cos (LOW)

Looks like the so-called “war on Christmas” has begun. Lowe’s Cos. (NYSE: LOW) and PetSmart Inc. (NASDAQ: PETS) have angered the American Family Association, a prominent religious conservative group.

The home improvement retailer earned AFA’s ire by calling Christmas trees “family trees” in a catalog. A Lowe’s spokeswoman, speaking to the Charlotte Observer, called using the term an error that came during the “creative process.” Lowe’s has profusely apologized and the AFA has apparently forgiven the company. “We appreciate Lowe’s for listening to its customers and responding appropriately to our concerns,” AFA said on its website.

Continue reading Lowe’s, PetSmart targeted by conservatives battling the ‘war on Christmas’

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Filed under: International Business Machines (IBM), Research in Motion (RIMM), Options, salesforce.com inc (CRM)

International Business Machines Corp. (NYSE: IBM) recently up 45 cents to $104.10.

IBM is frequently chattered as a potential acquirer of Research in Motion Limited (NASDAQ: RIMM). IBM trades at a P.E. of 33. RIMM trades at a P.E. of 78. IBM has a market cap of $142 billion. RIMM has a market cap of $59 billion. IBM December option implied volatility of 31 was above its 26-week average of 24 according to Track Data, suggesting larger risk.

Salesforce.com (NYSE: CRM) volatility fattens as CRM rallies to record on earnings per share:

CRM was recently up $2.22 to $46.34. Wedbush Morgan says “Good Q3, but we remain cautious due to conservative 2009 revenue guidance with only modest margin expansion.” CRM call option volume of 9,200 contracts compared to put volume of 11,092 contracts. CRM December option implied volatility of 50 was near its 26-week average after decreasing from a level of 68 on November 15 according to Track Data, suggesting decreasing risk.

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

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Filed under: Wal-Mart (WMT), Columns, Target Corp. (TGT), Best Buy (BBY)

Welcome to the 37th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.

Last week, I peered into the communication problems that stem from the massive culture Wal-Mart Stores, Inc. (NYSE: WMT) has. When it comes to notifying customers about serious product recalls, a commenter to one of BloggingStocks’ posts said that it took three days to get an answer to the Aqua Dots recall from a local Wal-Mart store.

From that, it appeared that customer communication (and intra-store communication) was a tad problematic for the world’s largest retailer. Maybe there is no single person or department charged with notifying stores of high-profile product recalls? If not, there certainly should be.

This week, we’re going to tackle something that Wal-Mart has been snippy about this year: the revealing of Black Friday advertisements before actual distribution by the retailer. Wal-Mart could use viral marketing and some innovative techniques to light the fire under sales this year, but instead it’s threatening to sue any entity that posts Black Friday sales information before it does. Why not break past tradition and become an innovator, Wal-Mart?

Continue reading The Wal-Mart Weekly: Next year, try a little innovation for Black Friday marketing

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Filed under: Consumer experience, Competitive strategy, Ford Motor (F), Lowe’s Cos (LOW)

Looks like the so-called “war on Christmas” has begun. Lowe’s Cos. (NYSE: LOW) and PetSmart Inc. (NASDAQ: PETS) have angered the American Family Association, a prominent religious conservative group.

The home improvement retailer earned AFA’s ire by calling Christmas trees “family trees” in a catalog. A Lowe’s spokeswoman, speaking to the Charlotte Observer, called using the term an error that came during the “creative process.” Lowe’s has profusely apologized and the AFA has apparently forgiven the company. “We appreciate Lowe’s for listening to its customers and responding appropriately to our concerns,” AFA said on its website.

Continue reading Lowe’s, PetSmart targeted by conservatives battling the ‘war on Christmas’

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Filed under: Products and services, Rants and raves, Competitive strategy, Microsoft (MSFT), Apple Inc (AAPL), Top Picks 2007, Stocks to Buy, Technology

My in-laws have been using Apple (NASDAQ: AAPL) computers forever. I have been using Microsoft (NASDAQ: MSFT) Windows-based machines, because most of our software and that of our engineering consultants was not supported on Macs. This extended to our home/studio. Well, a few years ago my daughter (remember, the iPhone enthusiast?) got an Apple notebook, then my wife did, then six months ago my 11 year old got one. iMacs are taking over the house.

Apple has made a lot of strides in the past 18 months to make all this switching much more easy. From using Intel processors, to adopting Windows options, to improving the operating system and already having the historically superior machine in terms of stability, anti-virus environment, better graphics and sound integration and more innovation on all levels.

So what does the Microsoft-based Windows PC offer me? As far as I can figure out, there are two advantages. The first is price: Apple charges extra for the cool factor, as it does with everything it produces. Although you have to give Apple credit for innovation and its R&D efforts, that has a cost. Microsoft is not known for innovation. The second thing a Windows PC offers is the greater number of programs available. The second attribute is bound to change as more and more people buy Macs and software companies and developers look to grow with that end of the market.

Continue reading Leaving the Microsoft world for Apple

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