Sunday, September 21, 2008

10-Q INSIGHT Updates: Monday, September 22, 2008

One insurance company that does not need assistance from the Federal Reserve is ACE Limited (ACE-$66.00), which has managed to sidestep the financial meltdown befallen competitor AIG.

In the last year, CKE Restaurants (CKE-$11.99) has sold 224 restaurants to franchisees and secured commitments for 105 new franchise restaurants under development agreements for those markets. The 10-Q regulatory filing for the second-quarter ended August 11, however, suggests
the formula used to finance these Carl’s Jr. and Hardee restaurants could be a recipe for disaster – think Boston Market or Krispy Kreme Doughnuts.

To its credit, Toll Brothers (TOL-$26.84) had its
lowest contract cancellation rate (195 homes) in more than two years. If the current crisis on Wall Street spreads to Main Street, however, potential sales could evaporate along with consumer confidence and success in finding affordable mortgage loans.

According to its
10-Q filed with the SEC on September 12, in the second quarter ended August 3, specialty retailer Williams-Sonoma (WSM-$19.05) took advantage of a bustling corporate aircraft market and sold its Bombardier Global Express airplane for approximately $47 million in cash.

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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