Friday, October 06, 2006

Mobility Misses All Opportunities

Mobility Electronics, Inc. MOBE reported disappointing numbers. Their press release constantly refers to client companies who have new managements who are either cutting back or stopping all purchases. This includes Targus and Energizer. All this after Dell winds down their program. Seems like management missed every boat at every opportunity. Where is the board review of how they can miss the market so badly?

Thursday, October 05, 2006

Caution On American Eagle Guidance

American Eagle Outfitters, Inc. AEOS announced that total sales for the month of Sep increased 26%. Comparable store sales only increased 19%. Total Sep sales were $233.4. Given the size of American Eagle there is a growing disparity between total sales and comparable store sales which cannot continue. Beware of the revised upward guidance.

Wednesday, October 04, 2006

GenCorp Declining Margins

GenCorp Inc. GY reported results for the Q3. Sales are up 18% for the quarter and 9% year to date. Yet serious losses continue. Q3 sales as a percentage of cost of products sold dropped from 12.1% last year to 8.8% this year. The year to date trend shows a drop from 10% last year to 8.5% this year. Management press release has failed to publicly recognize this distressing trend and present plans on how to reverse the problem.

Tuesday, October 03, 2006

Pepsi Mexican Results Slow

Pepsi Bottling Group (PBG) announced balanced top line growth and solid Q3 earnings. It appears that Mexico is stalling following rapid growth in recent past. Q3 Mexican operating income grew only 5%. Whereas year to date Mexican operating income grew at 43%. PBG reports actual decreases in carbonated case sales and jug water within Mexico. This may represent a soft underbelly in PBG. Europe cannot carry everything and US/Canada while improving still faces intense competition.

Monday, October 02, 2006

Weekend Follies Sep 30

No culprits were identified this weekend.