The Grand Theft Auto franchise accounted for 60 percent, or $710 million, of total publishing sales in the year-ended October 2008 at Take-Two Interactive Software (TTWO-$7.10).
The cost to develop a frontline software product can range from $10 million to $30 million. Ergo, it is cheaper—and safer—to roll out sequels. One could question management’s commitment to bringing to market creative, new titles: in 2008, Take-Two spent 28.7% of revenue, or $353.2 million, on software development, an increase of only $32.9 million from the prior year. Albeit management claims to have 36 titles in various stages of development, most of them are retreads of ... Read More….
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.
Ten months after Garmin Ltd (GRMN-$18.80) announced plans to enter the GPS (Global Positioning System) — enabled smart phone market, the provider of satellite navigation and communication devices said its Nuvifone has received approval from the Federal Communications Commission. Good news for investors, as more than 70 percent of the company’s current growth comes from sales of personal navigation devices (PNDs) in its auto/ personal mobile series of products — where price is more important than brand to most customers…. Read More….
Perchance, he for whom this bell tolls may be so ill, as that he knows not it tolls for him; and perchance I may think myself so much better than I am, as that they who are about me, and see my state, may have caused it to toll for me, and I know not that. ~ English Poet John Donne (1572 – 1631), Meditation XVII
Despite formidable competitors in the single-cup brew industry, including the FLAVIA beverage system (MARS), the TASSIMO beverage system (KRAFT), and the SENSOE brewing system (Sara Lee), among others, Green Mountain Coffee Roasters (GMCR-$38.42) is showing impressive growth in the installed base of brewing systems. At October 1, Keurig increased its unit market share for coffee makers in the single-serve cup category to 60 percent, up from a 33 percent market share in the prior year—which bodes well for its annuity-like income stream (from future sales of K-Cup portion packs and accessories)…. Read More….
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.
Given slower store traffic and an uncertain global economic environment, did Staples (SPLS-$18.35) pick the wrong time to spend approximately $4.4 billion in connection with the June 30 acquisition of Dutch peer Corporate Express? Borrowings and debt service requirements have increased substantially at the world’s largest office products retailer.
The current level of indebtedness (75 percent of shareholder equity), combined with maturing debt obligations and vulnerability to a prolonged downturn in consumer and business spending, will limit Staples’ ability to borrow additional amounts (for working capital, future acquisitions, and capital spending initiatives) needed to resuscitate growth…. Read More….
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.
Whereas competitors, such as AutoNation and CarMax, currently face difficulty in moving trucks and sport utility vehicles off their lots, due to changing consumer buying patterns and/or restricted access in obtaining auto financing, America’s Car-Mart (CRMT-$12.08) is finding success in selling basic and affordable transportation. Against a backdrop of rising unemployment, Car-Mart’s decision to not focus on luxury or sports cars is paying dividends. The average car sold in 2008 cost $8,690, and was between three and ten years of age with 80,000 to 130,000 miles on the odometer.
Lending money to sub-prime borrowers, however, is not without challenges. For the three months ended October 31, provision for credit losses was 22 percent of net sales…. Read More….
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.
Are upscale shoppers less susceptible to economic downturns? Luxury retailer Nordstrom (JWN-$12.63) is now acutely aware that even the wealthy are holding back on purchasing new holiday fashions, and with housing values still in freefall (particularly in California, where one-third of its stores are located), credit delinquency rates are rising, according to…. Read More….
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.
Aubrey McClendon, Chief Executive Officer of Chesapeake Energy (CHK-$16.30), told investors on a conference call on Monday that the the natural gas company’s revised operating and capital budget for 2009 and 2010 could be funded with internally generated cash flow. It is important to note, however, that cash flow from operations and revolving bank credit lines have historically been insufficient to fund all of Chesapeake’s annual expenditures…. Read More….
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.
Despite shedding its money-losing mortgage operations to focus on its tax business, H&R Block (HRB-$19.95) is still haunted by collapsing real-estate prices. As of the second-quarter ended October 30, the largest provider of U.S. tax preparation services held approximately $812 million in residential loans purchased from former mortgage loan affiliates, Option One and H&R Block Mortgage, net $63.7 million in allowance for loan losses, according to its…. Read More….
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.
Amid declining comparable store sales resulting from a decrease in consumer spending, discount retailer Target (TGT-$39.00) is also being adversely affected by rising bad debt expenses as consumer creditworthiness continues to deteriorate. In response, Chief Financial Officer Doug Scovanner told investors on the November earnings call that the retailer is further tightening finance terms for its card holders…. read more….
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.
Acergy (ACGY-$5.72), a Norwegian-based seabed-to-surface engineering and construction contractor for the offshore oil and gas industry, expects to end the 2008 fiscal year with a backlog of approximately $2.6 billion, down from $3.3 billion at the end of the third-quarter, resulting from delays in signings of new projects in Nigeria and other offshore global locations due to falling energy prices. Albeit the company has a strong balance sheet, the uncertainty and timing of new project deals will require Acergy to cut back on cash outflows in 2009….. read more….
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.
Fleetwood Enterprises Inc. (FLE-$0.25) unveiled its first-ever hybrid motor home at the annual National RV Trade Show in Louisville, Ky., last week. The Fleetwood Hybrid features increased fuel economy, getting up to 12 miles to the gallon, about 42 percent more than its conventional recreational vehicles. Despite its "green appeal," Fleetwood said it had no plans at this time to manufacture the concept hybrid—likely due to weakening demand for motor homes and cash flow problems endemic to Fleetwood…. continue reading….
…. Decision to delay the introduction of its hybrid vehicle probably was influenced by continued discounting by dealers (to move inventory of their lots) and turmoil in the credit markets. Heather Everett, a Fleetwood spokeswoman, told the Press-Enterprise a hybrid RV would likely cost $40,000 to $45,000 more than a conventional RV. A few gallons of diesel saved per mile does little to offset the higher cost—coupled with lenders tightening credit terms, including higher down payments….
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.
Intel is looking to wrestle share away from graphics chipset maker Nvidia (NVDA-$7.36) by putting integrated-graphics silicon into its cental processing units. Nvidia, which dominates the market for high-end graphics popular among gamers, is fighting back against its cross-town rival by moving aggressively to capture share for entertainment applications in smaller, mobile Internet devices. Luckily for Nvidia, it is able to subsidize R&D of its new class of mobile chip, called Tegra, with the millions it saves on its tax bill…. continue reading…. 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.
Even though the quarterly loss more than tripled at Beazer Homes (BZH-$2.06) and its management expects losses to continue through 2009, the share price of the homebuilder has jumped more than 65 percent in the last two trading days—Why? "All dogs have their day; even rabid dogs," said Scottish historian Thomas Carlisle. This dog is full of fleas. Avoid— for the company could find itself with little borrowing capacity needed to stay afloat until industry conditions improve…. continue reading….
Despite popular thinking on the certainty of taxes, recent filings with the SEC suggest even Jackson Hewitt Tax Service (JTX-$13.53) – and its business partners — is taking a cautious approach to the coming year. The No. 2 U.S. tax return preparer, which competes with H&R Block, has reworked agreements with its bank and credit card affiliates, consolidated its senior management team and struck an agreement for a “winning” marketing program…. continue reading….
Reporting by contributor Debra Fiakas, who does not hold a financial interest in any stocks mentioned in this article. The 10-Q Detective has a Full Disclosure Policy.
Vitamin retailer NBTY (NYT-$13.83) maker of familiar brands Nature’s Bounty, Solgar, Osteo Bi-Flex and Rexall, is becoming more dependent on one customer and promotional programs and customer rebates to drive sales, which raises other concerns about consumer traffic trends and margin deterioration… continue reading….
"Americans have the most expensive pee in the world. If I could collect the pee and filter it, I'd be the richest man in the world." ~ Dr. Alfred Brown, Auburn University
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.
American Tower (AMT-$25.43) is a leading owner and operator of communications sites for the wireless and broadcast industries, with more than 23,000 sites in the United States, Mexico, Brazil and India. Against the current credit backdrop, the company’s financial position remains solid relative to its publicly traded peers, Crown Castle Int’l and SBA Communications. In addition, the comparable, weighted average term of debt for American Towers, Crown Castle, and SBA was 5.2 years, 2.6 years, and 3.1 years, respectively, at September 30.
American Tower has approximately $600 million of liquidity and no material maturities until 2012. In the unlikely event that credit markets were to remain dislocated over the time period until these maturities occur in 2012, management believes that its operations would generate sufficient internal cash from operations to pay off …. continue reading….
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.
