Last Updated Aug 26, 2010 1:54 PM EDT The swan song of Walmart's vaunted "everyday low price" strategy may have been sung by Kroger (KR) CEO David Dillon. Retail executives usually are reticent about taking shots at rival companies, but Dillon was ready to talk about Walmart (WMT) and its heavily publicized rollback strategy when the subject came up in the company's first quarter conference call last week. Asked about the campaign's effects, Dillon noted that the initiative "is a lot more consistent with a traditional grocery supermarket operation than it is consistent with what Walmart used to do." Walmart, just another grocery store chain? Dillon suggested that Kroger -- and by extension, other successful supermarket operators -- had the experience and marketing skills to deal with a strategy that was relatively new to the supercenter but familiar to them from long years of the grocery wars. Walmart hasn't been a everyday low price purist for many years. But Walmart's rollback … [Read more...] about Walmart’s “Everyday Low Prices” Are DOA — It’s Just Another Discounter Now
Low priced stocks
VIENNA - OPEC decided to keep its oil output target on hold Friday and predicted prices would remain low for the foreseeable future - good news for both for oil-hungry international industries and consumers at the gas pump. The cartel said its output level would remain at 30 million barrels a day despite the fact that prices were still low compared with a year ago. It left it to member states to restrain any overproduction, an acknowledgment of the cartel's inability to enforce its own limits as it struggles to control world supply and prices. With non-OPEC oil producing countries ready to ramp up production if prices go much above present levels, OPEC's secretary general said the cost of crude will stay relatively low for a while. "The reality now is that we cannot have these S100 (prices) anymore," Abdullah al-Badri told reporters. The international price of crude was down $1.62 at $62.10 after Friday's announcement, having traded above $115 a barrel in 2014. While the Organization … [Read more...] about OPEC holds oil output target, predicts low prices
(MoneyWatch) One of the persistent criticisms of modern portfolio theory is the existence of anomalies, such as the existence of momentum and the poor performance of small growth stocks. An anomaly attracting more attention is the "low-risk" or "low-volatility" variety, which is the inverse relationship between future stock returns and beta (measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole). The historical evidence demonstrates that low-beta portfolios meaningfully outperform high-beta portfolios in both U.S. and international markets. This runs counter to economic theory, which predicts that higher expected risk is compensated with higher expected return. However, investors must be careful before jumping to conclusions because while strategies have no costs, implementing them does. In other words, an anomaly may exist "on paper," but once costs are accounted for, the anomaly (or at least the ability to exploit it) may … [Read more...] about Can you win with low-risk stock strategies?
Low-priced stocks appeal to many investors, but you have to be careful before you buy them. Often, low share prices are low for a reason, and the last thing you want in your portfolio is a low-priced stock that falls still lower after you buy it.Some stocks have already demonstrated promise by seeing impressive share-price gains, yet they're still priced below the $10 mark. In particular, Arcos Dorados (NYSE: ARCO), Valhi (NYSE: VHI), and Everi Holdings (NYSE: EVRI) have modest prices but have seen gains of 50% or more in the past year. Below, we'll look more closely at these companies to see whether they can keep up their strong momentum.StockShare Price1-Year GainArcos Dorados$9.5052%Valhi$6.3692%Everi Holdings$7.78141%Data source: Yahoo! Finance.Put some golden arches in your portfolioArcos Dorados translates from Spanish to "golden arches," an appropriate name for the largest franchisee of McDonald's restaurants in the world. The company has about 2,000 locations in a dozen and a … [Read more...] about 3 Winning Stocks Under $10
Clean Energy Fuels Corp. (NASDAQ: CLNE) was once one of the most promising alternative fuels stocks on the market. The company's natural gas products made sense for buses and semi trucks around the country, and it had a built-in cost advantage over traditional diesel engines if only the company could get its consumers to adopt the technology.As 2018 unfolds, it appears that the opportunity is dwindling for Clean Energy Fuels, and the company is entering a financially risky position. It may seem tempting to bet on a recovery, but I wouldn't get greedy with Clean Energy Fuels today.Image source: Getty Images.Where it all went wrongSome of Clean Energy Fuels' challenges aren't actually the company's fault. It still has a cost advantage over diesel, and natural gas is a much cleaner-burning fuel, but other alternatives have become more attractive. The biggest threat is batteries, which have become so cheap and efficient that they're becoming a viable alternative for large vehicles.Proterra … [Read more...] about Don’t Get Greedy With Clean Energy Fuels Corp. Stock
Grant Smith, Bloomberg Published 7:55 am, Tuesday, February 6, 2018 Photo: KAREN BLEIER, Staff Image 1of/1 CaptionClose Image 1 of 1 An oil well near Tioga, North Dakota. ( AFP PHOTO / Karen BLEIER / FILESKAREN BLEIER/AFP/Getty Images) An oil well near Tioga, North Dakota. ( AFP PHOTO / Karen BLEIER / FILESKAREN BLEIER/AFP/Getty Images) Photo: KAREN BLEIER, Staff Oil declines to 2-week low as stocks slide 1 / 1 Back to Gallery Oil slid to a two-week low and headed for its longest losing streak in two months as a plunge in global equities dragged other markets lower. Crude futures in New York fell a third day, sliding as much as 1.6 percent. Stock indexes from Japan to Germany tumbled on Tuesday after a frantic sell-off in U.S. shares sent the Dow Jones Industrial Average to its biggest loss in 6 … [Read more...] about Oil declines to 2-week low as stocks slide
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope... It's been one week now since Starbucks (NASDAQ: SBUX) reported its fiscal Q1 2018 earnings. In the seven days since, Starbucks has suffered two analyst downgrades already, as first Goldman Sachs cut Starbucks from its "Conviction Buy" list (though maintained a buy rating), and then Bernstein downgraded it to market perform. Today, the third shoe dropped. Analysts panicked after Starbucks spilled the beans on weak sales growth in Q1. Image source: Getty Images. Mizuho downgrades Starbucks Early this morning, Japan's Mizuho Securities announced that it, too, has decided to downgrade Starbucks. Ratcheting back the shares to a neutral rating, Mizuho also cut its price target on Starbucks stock by 12%, to $60 a share. … [Read more...] about Starbucks Stock Downgraded: Is It Time to Abandon All Hope?
The Dow Jones Industrial Average keeps hitting new highs, and it recently broke through the 25,000-point level. That suggests we're in a market where it's difficult to find stocks still offering good value. But it isn't. Scouring the universe of stocks, I identified Cars.com (NYSE: CARS), DSW (NYSE: DSW), and Harley-Davidson (NYSE: HOG) as stocks that look as if they offer not only attractive valuations, but also the promise of appreciating in value over the next few years. Image source: Getty Images. Cars.com There are good reasons the activist investors at Starboard Value staked out a 9.9% position in digital automotive marketplace operator Cars.com. The market is betting heavily against the stock, with more than a quarter of its shares outstanding shorted, and its days to cover have reached 10 -- anything over seven days is a lot. The hedge fund also thinks it's a candidate for a buyout by private equity. Although Cars.com hasn't had an impressive run since being spun … [Read more...] about Best Low P/E Stocks to Buy in January
Income investors can earn a dividend yield of about 2% today by purchasing a diversified index fund that approximates the makeup of the S&P 500. Below, we'll look at a few well-known dividend stocks that pay well below that rate. Costco (NASDAQ: COST), FedEx (NYSE: FDX), and Ross Stores (NASDAQ: ROST) each appear to have room for significantly larger dividends, especially when their payouts are stacked up against industry peers. Image source: Getty Images. Costco should bulk up its payout Costco consistently beats its main rival Wal-Mart (NYSE: WMT) in key operating metrics, including sales growth, customer traffic, and membership loyalty. Yet the nation's second-largest retailer comes up short in the dividend department. Costco commits to pay just $0.50 per quarter to its shareholders, which equates to a 1% yield compared to Wal-Mart's 2%. That gap has been even larger in recent months, but Wal-Mart's surging stock price helped bring it down recently. The $2 per share in … [Read more...] about 3 Embarrassingly Low Dividend Stocks
A new battle for low-priced eats is breaking out in the fast-food wars. As McDonald’s Corp. prepared to roll out a new Dollar Menu on Thursday, Taco Bell countered by announcing Wednesday that it would sell a new item, Nacho Fries, for $1 starting Jan. 25. Taco Bell, the Irvine-based unit of Yum Brands Inc., also said the fries were one of 20 new $1 items that the chain plans to unveil this year, on top of 20 “mainstay” $1 products it already sells including certain tacos and burritos. Wendy’s Co. also jumped into the fray, saying Wednesday it expanded the chain’s “4 for $4” menu to include eight entrees, such as burgers and chicken sandwiches. Each entree comes with chicken nuggets, a small order of French fries and a drink for $4. Jack in the Box Inc. this week also promoted “Value Done Jack’s Way,” with items priced from $1 to $5. All the moves are aimed at grabbing market share from rivals — or at least protecting … [Read more...] about Fast-food wars heat up as McDonald’s, Taco Bell and others roll out low-priced items