GLG News(sm): Consumer Goods & Services

Zale Stock Makes Overvalued List

Nicholas White — Thu, 09 Jul 2009 18:09:47 EST

Zale stock has been singled out as one of the best performers in recent weeks, but that may be changing. Here's why.

Jewelry Industry Unwilling or Unable to Deal With Finlay's Risk

Nicholas White — Thu, 09 Jul 2009 17:18:18 EST

Finlay's failure to downsize may be a consequence of the recession. On the other hand, it may be part of long term liquadtion plan structured to benefit secured creditors at the expense of others debtors like the jewelry trade. Regardless, here is why the industry needs a better way to manage financial risk.

Watching Chicken Production...Closely

David Maloni — Thu, 09 Jul 2009 17:17:43 EST

Could chicken production cutbacks lessen this fall?

At what cost,and for how long can you keep uncompetitive jobs?

Vijay Mathur — Thu, 09 Jul 2009 07:49:07 EST

GM faces a dilemma that BMC faced in Great Britain before its demise. Mrs. Thatcher pointed out at that time that the cost of keeping BMC going over some years would have covered the cost of gifting every UK citizen a free car! Even a small car specialist like Suzuki of Japan has shifted production of its 800cc & 1litre cars to India, from where it is exporting them to Europe and Latin America. Therefore GM needs to think this through very carefully.

Next In GM's Sights: Holdout Dealers

Jack Sayer — Wed, 08 Jul 2009 13:12:58 EST

GM has asked a bankruptcy court for permission to drop the last batch of holdout dealers who stand in the way of the company's push to close 2,400 dealers by 2010.

Pepsico Russian Investment

Andrew Caswell — Wed, 08 Jul 2009 13:11:45 EST

Route to market for Pepsico will be an important driver of branded growth in the future. The pre-emiment drinks distributor at this time in the Russian market is Baltic Beverage Holdings (BBH). Pepsico and Carlsberg (BBH owners) work together / have worked together in a number of markets (including some BBH markets) and a collaboration would result in reduced costs and superior revenue outcomes for Pepsico.

Zale(ZLC) Bleeds Human Capital and Cash Too

Nicholas White — Wed, 08 Jul 2009 05:58:03 EST

Zale loses more than a markleting executive and a controller. Here's more.

Will Coca-Cola Follow This Strategy?

Andrew Villars — Tue, 07 Jul 2009 11:04:23 EST

As a result of yet another bottliong acquistion by PepsiCo/Pepsico Bottling Group will Coca-Cola now start to acquire additional bottling capacity as per PepsiCo.

Wal-Mart’s move to private label is merely a reflection of societal trends.

Christopher Ramey — Tue, 07 Jul 2009 09:40:55 EST

Private label is a brand unto itself. Wal-Mart’s move to private label is remarkably similar to any other brand initiative. Rather than moving upscale with unique selling propositions, private label products accept commoditization and manufacture the least expensive product possible.

New York City Tax Changes: At Least it Isn't Retroactive

Tom Botts — Mon, 06 Jul 2009 23:18:56 EST

Potential hit on future OTA earnings How far will it expand beyond NYC?

GM's Decision to Build Their New Small Car in Michigan Could Come Back to Haunt Them

Jack Sayer — Mon, 06 Jul 2009 18:16:05 EST

More important than which state the new GM small car will be built in, is the question of whether it should be built in the U.S. at all.

What is it?

Gaurav Singhal — Mon, 06 Jul 2009 14:20:51 EST

1. Indian Govt. decided to increase duty on Gold bars,gold jewelery and Silver. 2. Duw to which affect can be seen in local market with the increase in Gold Rates. 3. It is expected that sales will going to affect in this time of recessions and low sales.

Comparing Auto Sales in June of '09 To June of '08 Requires a Long List of Asterisks

Jack Sayer — Thu, 02 Jul 2009 15:16:36 EST

These are extraaordinary times in the auto business and may call for a new way to look at the sales data. What do car sales in 2009 have to do with car sales in 2008? Maybe less than you think.

Edging into a 10M vehicle annual sales rate.

Jay Emery — Wed, 01 Jul 2009 15:48:37 EST

While we are seeing the annual sales rate of vehicles in the U.S. approach 10M, this is not a sign that the industry has turned around. The dealers of TARP-subsidized manufacturers have been selling off excess inventory at a loss as credit rules and floorplans change. Until inventory levels-off and plants come back online, we will not see the positive effects in employment in the auto industry. Until employment picks up, consumer spending can't happen. I am positive about the housing market showing a little progress. This will help revive the auto industry. I see positive gains for Hyundai and Kia as they are making quality products and are working creativly with the buyers. I also believe the fleet leasing and rental companies will soon have no choice but to start placing large orders as their existing fleets age.

Hotel Investment Opportunities Abound

Christopher Knable — Tue, 30 Jun 2009 14:13:08 EST

The residential real estate market cratered some months ago and now the other show has dropped. The commercial real estate market is seeing loan defaults skyrocket and that means targeted investment in distressed hospitatality assets will provide superlative opportunities. In the next 18 months, smart cash-rich investors will be able to cherry pick hotel assets that traded at the very top of the market in an environment when leverage was king. The deals will not be clean and not be easy, but with a savvy approach investors should be able to make some spectacular deals if they have the wherewithall and perserverence to ride an asset to better days.

UAE vs China as a furniture market - factors differentiating the two and outlook for both

Jeremy Waller — Mon, 29 Jun 2009 13:00:52 EST

The UAE and China present furniture manufacturers with different opportunities. Furniture products themselves need to be segmented as they require quite different sales channels and marketing to penetrate these sectors.

Appeal of the Western Furniture

Lata Venkataraman — Mon, 29 Jun 2009 11:05:49 EST

The occupants of the Desert lands have a distinct leaning towards Western furniture brands. Primarily there are 2 kinds of customers.One the expatriate population and the other the local population. The westerners prefer having furniture akin to the kind they have grown up with. As for the locals while they hold on very rigidly to their local culture and religion, furniture is one aspect that cannot be questioned as a movement away from local beliefs or customs . Hence be it holidays abroad or the designer wear under the traditional abhayas they sure do prefer American/European brands. There also is a societal image perspective to the possession of some premium brands of furniture from the West. Additionally the sizes of most homes resemble multiple football fields joined together. This makes it easier to house the large size furniture's that the west is known for.However whatever be the leaning towards western furniture the traditional majlis of every home is necessarily Arabic .

Fairtrade is the Right Tone for Rwanda

Donald Nordeng — Mon, 29 Jun 2009 11:04:17 EST

Fairtrade is becoming one of the driving forces in CSR programs. Not only is it good publicity, but it has a proven track record. In today's business climate, Starbucks is smart to commit to a certified and audited third-party verification service. If other products are available fairtrade would be more attractive. Fairtrade is trending upward in popularity. Brands like Starbucks need to tread a careful line to ensure that the coffee in the shops is also actually fairtrade certified.

Kitchen Cabinetry – Opportunity China

Achim Burgardt — Mon, 29 Jun 2009 07:36:34 EST

An undisputed fact -despite the global economic developments – China will emerge (or still is) the fastest growing economy in the world, especially within the luxury goods sector. Retail sales in China have reached more than 6 trillion RMB and are expected to quintuple in the next 10 years to 30 trillion RMB. Since 1997, the per capita income of the Chinese population has doubled, and with it, the retail economy has slowly shifted in expenditure patterns from “basic needs” towards “personal luxury”. 200 million Chinese have meanwhile entered a new consumption society. China is currently the third largest consumer of luxury brands and is expected to surpass the United States within the next 10 years.

Auto Sales With A SAAR Over 10 Million, Incentives At All-Time Highs, And, "Cash For Clunkers" On The Horizion, Are We Ready For A Continued Auto Recovery?

Jack Sayer — Mon, 29 Jun 2009 01:02:03 EST

With Edmonds.com and J.D. Power agreeing that June auto sales will top 10 million on an annualized rate, and incentives at an all-time high, it remains to be seen if the passage of the "Cash for Clunkers" legislation will be enough to draw customers into showrooms and spark sales.