GLG News(sm): Consumer Goods & Services

The danger of formula analyses!

GLG Expert Contributor — Sat, 07 Nov 2009 01:49:10 EST

The world is intellectually lazy, so it is always looking for 'quick-fixes'and one line answers. Management is one area where such placebos are often handed out by our global gurus!If you think about it,however, it is individual thinking, individual perceptions, and individual relationships with the world around them that brings success to such managers. Without such a unique combination of attributes, coupled with a particular situation at a particular point of time, spectacular success would not happen.The success I acknowledge,however, is the success of gurus who piggy-back on such stories to win personal success and acclaim!

Magna Will Find Better Targets for Their Attention and Their Cash

Mark Fendley — Fri, 06 Nov 2009 18:23:59 EST

Magna may have risked alienating certain customers, especially in regards to component technology development, if they had succeeded with the Opel partial purchase.Magna is developing good partnerships in the growth segments of electronic, software, sensor, battery, and power management, so a growing interest in shopping for those suppliers that can be added to Magna's electronics or eletrical component product portfolio makes very good sense.

China’s Economy and Construction Boom Creates Huge Floor Covering Potential

James Gould — Fri, 06 Nov 2009 14:59:39 EST

A new, 40 billion square meter floor covering market is expected to emerge in China between now and 2025. The urbanization of China continues and is expected to increase its cities’ population by another 350 million people, creating demand for as many as five million new buildings. Every square meter of new construction will require floor covering. Ultimately China may be the world's largest floor covering market; Mohawk Industries, Shaw, Armstrong World Industries and Tarkett should take heed.

GMAC Has Profitable Auto Operations In Q3; Floorplan Loans Crucial Going Forward

Jack Sayer — Fri, 06 Nov 2009 10:14:09 EST

After several quarters of losses, GMAC's automotive finance and dealer-related insurance businesses were profitable in the third quarter.

Cheesy Concerns about Dairy Prices

David Maloni — Fri, 06 Nov 2009 07:10:52 EST

Dairy market trends are suggesting that higher prices may be on the way.

October Jewelry Sales- Estimates Conflict with Reported Results

Nicholas White — Fri, 06 Nov 2009 01:07:37 EST

Conflicting sales reports make forecasting fourth quarter sales even more difficult for jewelry retailers. But, volatile consumer spending patterns,large competitors promotional plans, and emerging macroeconomic forces may play a much bigger role in the final outcome than actual sales in August, September, or October. Here's more.

Restaurant Trends Suggest Protracted Challenges for Foodservice Industry

GLG Expert Contributor — Thu, 05 Nov 2009 15:06:28 EST

Improvement in restaurant company profits are currently being driven by an intense focus on operational efficiency and cost reductions, as well as a more favorable food cost inflation environment compared to the prior year. However, continued weakness in restaurant industry traffic, driven by weakness in consumer spending and lower grocery prices in supermarkets, will continue to hamper a foodservice industry recovery in 2010.

New Records of Gold and What More?

GLG Expert Contributor — Thu, 05 Nov 2009 12:54:49 EST

1. Gold Prices has touched its new highest record of $1100.2. Where will Jewelery Industry head?3. What is the future of Gold?

Note To Jewelry Industry-Wait and See Isn’t a Viable Strategy

Nicholas White — Wed, 04 Nov 2009 17:26:43 EST

Escalating gold prices threaten $60 billion jewelery industry. Here's more.

Zale Loses One-Third of Investor’s New Worth-Revised

Nicholas White — Wed, 04 Nov 2009 15:08:15 EST

Zale's $189.5 million lose marks a continuing of a turnaround that has never materialized. Here's why.

Auto Sales Getting Closer To The "New Normal?"

Jack Sayer — Wed, 04 Nov 2009 09:23:24 EST

With the exception of Chrysler, most major automakers saw improved U.S. sales in October. Hopefully, these results suggest the beginning of a return to what most analysts predict will be a "new normal" SAAR of 13 million vehicles.

Texas Cities vs. PCLN, EXPE, OWW et al: A Draw at Best

GLG Expert Contributor — Tue, 03 Nov 2009 11:32:32 EST

Late last week, a jury in San Antonio delivered a verdict on a class-action suit against the major OTAs that was brought by around 170 cities in Texas. The verdict against Expedia, Orbitz.com, Travelocity and Priceline.com is for $20M plus court imposed penalties and interest.

Samsung handset shipments up 15pc and aims to take 20pc market share

Peter Curnow-Ford — Mon, 02 Nov 2009 05:10:58 EST

Samsung continues to dominate in sales growth in the key low to mid-end markets and in developing markets where it shows how to build channel strength.Samsung is also a leader in fashion touch handsets, ie devices in the mid-sector that sell on looks and touch screens to a mainly younger audience.Growing qtr on qtr sales by 15pc, means it is bucking the annual trend which will see an 8pc drop in worldwide sales.

Starbucks Strategic Transformation, Status? Implications for Future Value.

GLG Expert Contributor — Sun, 01 Nov 2009 13:20:52 EST

The is final article in this week's series of 4 that have taken a closer look several of the key strategic initiatives being employed by Starbucks under the leadership of former CEO/Founder Howard Schultz, who reassumed the CEO Position early last year. In this article we will examine the implications of several issues relating to Starbucks' store closing program.

October Auto Sales: GM Expected To Hit Highest Its Market Share For 2009

Jack Sayer — Thu, 29 Oct 2009 18:06:12 EST

October car sales are expected to come in at the highest level of the year except for the summer's "Cash For Clunkers" program.

Starbucks Comparable Store Sales. Does .4% YTD Improvement Show Progress?

GLG Expert Contributor — Thu, 29 Oct 2009 14:57:14 EST

This is the second article in a series of four to be published in this newsletter this week taking a closer look individually at several of the key underlying variables contributing significantly to Starbucks reported recent improvements in North American Company Operated Comparable Store Sales. This article will provide insight regarding the effect that closing 563 of their least productive stores is having, on Starbucks' reported Comp Store Sales associated with the remaining open stores.

China Auto Trend #7: Local Vehicle Manufacturer’s Push to Build Brand Equity

GLG Expert Contributor — Wed, 28 Oct 2009 09:40:09 EST

China opened its domestic market to foreign vehicle manufacturers in the 1980’s, starting with the first sino-foreign automotive joint venture between American Motors Corporation (AMC) and Beijing Automotive Industry Corporation (BAIC). Through the use of the joint venture form of cooperation, the government then hoped a domestic industry would emerge where the Chinese domestic companies would learn from their partners and eventually emerge as successful automotive companies.

Auto Sales In October Seen At Pre-Clunker Levels

Jack Sayer — Tue, 27 Oct 2009 12:18:30 EST

With another week on the books, October auto sales look to be on track for a SAAR in the low 10 million range.

Starbucks VIA. Strategic Implications for the Brand. Early Read on Introduction

GLG Expert Contributor — Tue, 27 Oct 2009 07:22:14 EST

Annual worldwide Instant Coffee sales total about a $21 Billion, or about 40% of overall annual world coffee consumption. In the US, annual instant coffee sales total about $700 million. Starbucks presently has a 4% share of the $8 Billion US "At -Home" market. Research Indicates most consumers associate instant coffee with poor quality and taste. This article examines the implications upon Starbucks overall Brand positioning, of it's recently announced entry into the instant coffee market.

Zale (ZLC) -Will History Repeat Itself?

Nicholas White — Sat, 24 Oct 2009 22:32:22 EST

Zale promises to finally announce year end results. Meanwhile the stock continues to increase in price,despite likely big losses. Here's why.