Northern,WI 2/11/2013 (BasicsMedia) – As traders and portfolio managers dig out of the first speed bump in 2013 we prep for this Q1 2013 action and realize that managing money and watching markets is an ongoing exercise, a 24 hour media cycle - and doesn’t shut down when mother nature flexes her might…..No, No….. in fact – these are times when opportunity exists – and because of your dilligent back -up, preparedness and readiness. You can walk down the path and meet the day. Carry on Warriors !!!
Apple (NASDAQ:AAPL) is sitting on $137 billion in cash and has been reticent about returning significant amounts of it to shareholders. Hedge fund manager David Einhorn said the tech giant has a “depression-era mentality” about its cash hoard. He also said if Apple can boost its yield to 4 percent, it would attract value investors and push up the stock price.
Yum Brands continues to deal with the fallout from a food safety investigation in China as consumers continue to avoid the owner of KFC. “This skews to the worst case for the company,” David Palmer, senior food & restaurant analyst at UBS, told CNBC. Palmer cut his price target for Yum on Tuesday from $69 to $63, with a “base case” estimate of an 8 percent decline for same-store sales in China with a 20 percent decline in profit in the country. The “worst case” from UBS shows a 25 percent profit decline with an implied stock price of $50.
McDonald’s (NYSE:MCD) reported that same-store sales fell 1.9 percent globally in January, and Jefferies analyst Andy Barish warned of possible margin pressure ahead as it promotes its dollar menu more aggressively. “We have the lowest estimates on the Street for fiscal 2013,” he told CNBC on Friday. “We think the next couple of months are going to be negative comp numbers not only globally but in the U.S. as well given the tough comparisons they have coming up.”
After strong earnings from Disney (NYSE:DIS), Barton Crockett, an analyst at Lazard Capital Markets, increased his price target for the entertainment company’s shares to $63 from $60 a share.”I think the setup is good for the next couple of years,” he said. “Then you go into 2015, 2016, you’ve got ‘Star Wars’ movies coming back. You’ve got the Shanghai theme park launch. There’s a lot here to keep you interested in Disney, so I like the stock here.”
Despite strong January sales, retail stocks may face a more difficult spring as robust sales last year will be difficult to top, Brian Tunick, JPMorgan senior retail analyst, told CNBC this week. “We think a lot of companies are going to give earnings guidance that could be meaningfully below the Street when they give Q1 and 2013 earnings,” he said. Tunick said Gap (NYSE:GPS)and Limited (NYSE:LTD)may issue conservative guidance.
All in all the East coast survived the storm and we saunter through Q1 2013 with hope and observation…
Disclaimer: We have no position in any stock mentioned here.