For years, Coca-Cola
Will it make a dent in the $64 billion soft-drink market? Time will tell. We look forward to seeing how China will compete with McDonald's
In today's Motley Fool Take:
- Highway to Dell
- Discussion Board of the Day: Dell
- Kohl's Rolls a Gutter Ball
- CBS Milks a Dud
- Shameless Plug: Motley Fool Income Investor
- More on Fool.com Today
Highway to Dell
By Rick Aristotle Munarriz (TMF Edible)
If the path to greatness is paved with potholes, why has the road to Dell
Last night was no different as the company produced yet another solid quarterly report. Dell earned $0.28 a share on a 21% surge in revenue. While higher memory prices kept operating profits from keeping pace with the top line, net profits did just that in rising by 22%.
The good times should continue as the company expects shipments, revenue, and earnings to all grow by better than 20% in the current quarter.
The personal computer industry continues to improve. Though Dell was quick to brag that it grew its shipments by 25% while the sector as a whole mustered unit growth of just 14%, think about it: Double-digit growth in demand should spell good times for all of the sector's major players, even if Dell is accumulating incremental slices of market share.
Naturally, that upbeat outlook includes props to fellow titan Hewlett-Packard
One can draw up a list of peripheral makers that look to benefit from the industry's revival. Peeking inside the box, chip makers Intel
Also encouraging is that Dell's strength was global in scope. Domestic shipments rose by just 18%, meaning that the company saved its healthiest bursts of growth for the overseas market.
And let's not knock Apple
So, Dell is doing just fine. It's fitting that the company has been so consistent that the market's first reaction to its growing as promised found the shares trading lower. Oh, what a spoiled lot we've become. It's just good to know that Dell is holding the road map. Someone has to know how to get to where we're going.
Longtime Fool contributor Rick Munarriz has no problems with the mixed marriage of his HP desktop projecting on his Dell monitor. Still, he does not own shares in any companies mentioned in this story.
Discussion Board of the Day: Dell
What is Dell's secret to success? Why can't others ape its direct model more effectively? How well will Dell do once corporate spending improves? All this and more -- in the Dell discussion board. Only on Fool.com.
Kohl's Rolls a Gutter Ball
By Seth Jayson
"Strikes and gutters, man." That's how the little Lebowski -- The Dude -- described life, and that's how this week's retail roundup seems to be going. Companies like Wal-Mart
After the bell on Thursday, it was Milwaukee's own Kohl's
Gross margins improved slightly, but SG&A as a percentage of sales increased a bit more than that. Inventory was comparatively slimmer that in the prior-year quarter (10 pins), but accounts receivable grew a bit more quickly than sales (five pins, open frame).
The end result was that a little thing called earnings came through at $0.33 per share, a penny above last year's results.
If you're in the excuse-making mood, you could blame April, the cruelest month. Not too long ago, everything was just hunky-dory and wallets were opening like tulips on the South Lawn. But last month, shoppers seemed to have started pinching off the old cash hose, waiting to see what's next for the economy.
Forward guidance matches up with analysts' estimates of around $2.12 per share. That puts the $42 shares at a forward P/E of around 20. That looks a bit pricey for one of the industry's current underachievers. If shoppers are in wait-and-see mode, retail investors might do well to take the same attitude.
CBS Milks a Dud
By Rick Aristotle Munarriz (TMF Edible)
It was bad enough that the All-Star edition of the hit series Survivor was a dud (that seems to be the general consensus on our active Survivor discussion board, at least). Hopefully, CBS will learn its lesson. Former reality show contestants that are hungrier for camera time than a million-dollar paycheck make for bad television.
To make matters worse, CBS milked the show one extra week by getting the cast back together last night to award a second million-dollar prize to fan favorite Rupert.
A million dollars isn't necessarily what makes for compelling programming. General Electric's
Sure, CBS parent Viacom
1. I know Viacom is unhappy with how its investment in video rental giant Blockbuster
2. MTV is no longer hip? No problem. Hook up with Lakes Entertainment
3. How about a better dividend than that paltry 0.6% yield? If not, how about springing for countless thousands of Motley Fool Income Investor subscriptions to enlighten your shareholders?
4. Dust off Paramount, Star Trek, and William Shatner in one fell swoop by producing the next sci-fi epic, Star Trek or Treat: The Wrath of Khandy.
5. Nickelodeon has always scored well with the younger set, but aren't those Rugrats getting a bit too old to be in diapers? A million bucks would do wonders when it comes to animated wardrobe.
6. Give me the million next time. I will lock my set on CBS, smash my remote control, and never leave the couch.
Munarriz ... out!
Longtime Fool contributor Rick Munarriz is just glad that Amazing Race is returning for another season this summer. He does not own any of the stocks mentioned in this story.
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