After a big week of 1st quarter (Jan – March) profit announcements we here at WSF help you make sense of all the big winners and losers.
Wendy’s - After Dave Thomas’s company publicly dissed the idea of an Arby’s merger, the deal was finalized this morning. Although, both Wendy’s and Arby’s will remain seperate companies, the new owners (Triarc Cos.) are notorious for making big changes to increase efficiency. Stay tuned for some possible big changes at Wendy’s in the coming year. All Wendy’s shareholders will receive 4.25 shares of Triarc for each Wendy’s share they own.
Ford – The American motor company has been pegged as dead for quite some time now, but stunned many people today when it announced it had earned $100 million this past quarter. This is remarkable compared to the $282 million loss this time last year. This is good news if you’re a shareholder, but bad news if you work for the company. Most of these increased profits came as a result of selling off major divisions of Jaguar and Land Rover and cutting jobs.
Bristol-Myer’s Squibb - This big pharmaceutical company announced a 4.2% loss last quarter due to generic brands crampin’ its style on blood-clotting and cancer medications. B-MS is also lightening the load like a damaged ship by selling off its medical imaging, wound-care, and nutritionals businesses. Herpes medication is in big demand, they should probably play off that angle a little more.
Apple – The Apple Kings say ‘What recession?’, as they boast a 36% increase in Mac computer sales since a year ago. It seems that ‘halo effect’ of people liking iPods and iPhones and then switching to Mac computers is finally coming around. Downside for consumers: Get ready for another smart ass remark from ‘Mac’ in the next annoying ‘Mac vs. PC’ commercial.
Motorola- The pioneers of the wireless phone industry have been taking a beating lately. Their stocks fell to below 2003 levels this morning after news that some of its senior officers were leaving, profit losses were increasing, and those trendy Europeans don’t think their phones are cool enough.
The Euro – (I know, not a stock, but this is encouraging) The American dollar gained a little on the European currency today because reports were released that showed French, German, Belgian ‘business morale’ has fallen. Most of these feelings of sadness come from fears that the European Central Bank will raise interest rates. Wipe those tears, ladies.
Is there anyone we missed? Or are you looking at these ‘losers’ as good opportunities to buy? Let us know in the comments section.
MarketWatch: Wendy’s to be acquired by Arby’s parent, April 24, 2008
New York Times: In Surprise, Ford Swings to Profit, April 24, 2008
Wall Street Journal: Bristol Myer’s Net Falls 4.2%, April 24, 2008
MarketWatch – Mac and iPhone sales lead growth, April 24, 2008
MarketWatch – Motorola posts wider loss, April 24, 2008
International Herald Tribune: German and French business morale falls sharply, April 24, 2008