We've reported on Big Apple Bagels before. Unfortunately, they're stock has seen an 11% decline since that time, however they have also paid out approximately .08/share (about 8%) in dividends since that time. Sales growth continues to be tepid with a few store closings and only minor improvements to overall profitability.
However, since then they have expanded into express units within several subway franchises as well as launching a development agreement with an owner of several Colorado units.
Make no mistake, this is still a high risk company, however they have shown solid fiscal responsibility in the past (presenting their current low debt, solid balance sheet) and if they are able to return to franchise growth there is still tremendous potential here.
Today, google announced a major initiative to unify the software development process for a wide range of mobile communications devices. The press has placed a heavy emphasis on the use of this technology for cell phones, for obvious reasons.
However, it is interesting to note that Google also mentioned some possible uses for the 700Mhz spectrum as they vaguely mentioned other devices to use the platform. Particularly interesting is the possibility of a Google GPS platform.
Could Google plant to roll out something similar to (or just aquire) Dash.net? Dash.net is a new service that is planned to network portable GPS units within cars to provide dynamic traffic based routing for vehicles. A service like this could dramatically improve the quality and performance of GPS based navigation devices, but it really does need a larger company behind it than the current group.
Could this be the next big thing for Google? I guess we will have to wait and see...
Textron had $11 billion in revenues in 2006. Right now, they have an $11 billion dollar order backlog at their Cessna division thanks to strong sales with the Cessna Citation, as well as steady piston sales. The dividend yield is at 1.4% and the stock is up 46% from one year ago.
I'm more comfortable with this pick right now than most. With a P/E ratio of around 22 and a solid business with steadily growing revenues, this seems like a conservative pick that also has great potential for growth.
In my opinion, this was a brilliant move on their part. Zimbra has some great technology, and is beginning to pick up some traction in the corporate world. Yahoo! needs something to help in their competition with Google, and a strategy of going after larger accounts with their email, calendar, and collaboration tools could be an effective strategy.
I would look for them to continue this acquisition strategy to rebuild their traffic, and ultimately their advertising business as well.
YHOO has been struggling with poor earnings and slow revenue growth over the last several years. Their one bright spot has been that they have been able to show steady growth in users and traffic to their site.
Unfortunately, that no longer seems to be the case. Yahoo Traffic growth has slowed to a standstill, or in many cases begun to decline. The problem is no longer simply one of failure to monetize advertising space, but also a failure to acquire and retain users.
I believe they have two basic options:
- Strategic Aquisitions - Y! 360 is failing. They need something like Facebook to give them a strong presence in online networking. Integration with Y! HotJobs and Y! Answers could be a killer combination
- Find a buyer - An MS buyout may be unappealing, but it could be the best end result for shareholders on this present course.
It's sad seeing this happen to what used to be such a strong business.
I've been hearing rumours that Wal-mart gas stations may go E-85 within 6-18 months. I have some doubts as to whether this would truly be a systemwide deployment, but even modest scale trials could have a large impact.
Perhaps it is a good time to start loading up on some Ethanol stocks. I'm looking at these:
- Pacific Ethanol - A profitable west coast refiner, that is currently looking awfully cheap at 52 week lows
- US BioEnergy - Profitable, and with perhaps a slightly higher pace of growth than PEIX is currently offering. This also looks fairly cheap right now.
- Archer Daniels Midland Corn Supply - The corn business may end up making even more money from the growth of Ethanol than the refiners, but I doubt it. The big advantage to ADM is that this is a fairly stable company with a proven track record.
Corn-based Ethanol will never be able to completely replace fossil fuels, however, there appears to be a strong niche for it to fill 20-25% of the market.
Software virtualization leader VMWare surged today as investors heavily bought up the provider of key business software. It is really hard to be believe that just a few years ago these guys were a novelty. Their product simply allowed Linux users to run Windows operating systems (and vice versa) within their operating system of choice.
Today the software has found a key place within businesses seeking to consolidate servers and equipment in order to save space, power, and ultimately cost.
The product competes heavily with other virtualization products such as Xen. Some of these other products are much cheaper, however they have had little impact on VMWare's explosive growth. This is primarily due to VMWare's vast lead in manageability, performance, and stability.
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