Ticker Shock: Walgreen's Tightens Belt; Toyota Hits Brakes

Glenn Curtis  Dec 22, 2008 12:45 pm

Ticker Shock: Walgreen's Tightens Belt; Toyota Hits Brakes
 
Monday's top stories and stocks with potential to move.
 

 
Sysco (SYY)
The food distributor served up a bit of a disappointing second-quarter forecast. Per a release prior to the opening bell this morning: “It expects flat to slightly negative year-over-year sales comparisons for its second quarter of fiscal year 2009 which ends December 27, 2008.”

Per Reuters: “Analysts were expecting the company's second-quarter revenue to rise about 4%, to $9.63 billion.”

So here are my thoughts: This is a good company, and one that I think has the potential to make a comeback once this economic storm passes. But it’s obviously struggling a bit right now, and I just don’t see too much relief in the near-term.

Incidentally, another thing that caught my eye was information on Yahoo Finance that an officer, Stephen Smith, unloaded 15,000 shares in November. Of course, I don't know why he sold - but this isn't something I’m overlooking.

Toyota (TM)
If you think the Big 3 are the only car companies having a rough go of it, think again. Per Bloomberg:

“Toyota Motor Corp., the world’s second-largest automaker, forecast its first operating loss in 71 years on plummeting demand, prompting Moody’s Investors Service to consider downgrading the company’s top-rated credit.”


Toyota came out and indicated that it expects to turn in a 150 billion yen operating loss in the current fiscal year. That’s down just a wee bit from the 600 billion yen operating profit it had reportedly been looking for previously.

Not terrific news, to be sure. However, here’s the thing: I think Toyota will be able to right its ship - and much more easily than, say, General Motors (GM).

Long story short, I’m not bottom-fishing the stock right here, near its 52-week low - but if I were looking to place a wager on this group, this would be my first stop.

Have a great day!
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Comment (1) See All Comments »
01-12-2009, 12:30 am
Best Buy, Walgreen, Sears - all had a great past. But none are prepared to compete in the new market requirements. Lacking internal Disruption and White Space, they are not going to grow, or succeed. Sears is likely to fail. And new competitors will
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