Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Sara Lee Is a Work in Progress

By

Company's restructuring is yet to show results.

PrintPRINT
Minyan Morning Memo

One to watch: Sara Lee (SLE) shares are in retreat after the supermarket staple reported a fiscal fourth quarter shortfall of $14 million. While the narrower loss ex-items actually beat the Street, unfavorable FX headwinds had an adverse overall impact. Of greater concern is the downcast guidance delivered by the company headquartered in Downers Grove, Illinois. Sara Lee's four year old restructuring efforts, aimed at making the manufacturer of Jimmy Dean lean and mean, are a work in progress. While waiting for its effects to become more fully apparent, shareholders can take solace in owning a company that has paid dividends for 254 consecutive quarters. Plus the company has had a better year than Sarah Palin.

What just happened: Stocks slipped the most in over a month yesterday. The "alphabet zombies" bore the brunt as MBIA (MBI) fell 12.6% following a downgrade at JP Morgan and CIT (CIT) slid 19% after a quarterly filing delay. Rounding out an unholy trinity, AIG (AIG) dropped 13% after an admittedly impressive recent run up (news its brand new CEO is already vacation planning likely didn't help). Orange juice futures are at an 11 month high as hurricane season heats up. Nickel and Zinc reached peaks for the year.

What's happening: Economists surveyed in today's Wall Street Journal declare the recession over. Less auspiciously, CNBC selected "Doctor Doom" Nouriel Roubini to guest host Squawk Box this morning. Asia ended off across the board, Europe is eking out gains and here at home stocks have opened higher. Ask not for whom the (opening) bell tolls - Toll Brothers (TOL) shares are off to an stellar start on strong earnings.

What will happen: In economics, at 8:30 AM Eastern June's U.S. trade defect widened to $27 billion, better than expected though still a severe test of how many numbers that clock can accommodate. Imports were up for the first time in almost a year. Oil inventories are out at 10:30 AM. The Fed communicates its decision on interest rates at 2:15PM. And we'll be learning about earnings from Advance Auto Parts (AAP), BHP Billiton (BHP), Hillenbrand (HI), ING (ING), Kinross Gold (KGC), Liz Claiborne (LIZ), Macy's (M), and Progressive (PGR).

Happenstance: Some sobering news was buried in the bowels of last week's apparently encouraging payroll report, namely that the number of long term jobless is at an all time high. Since such unfortunates are close to exhausting their unemployment benefits, it seems scandalous that common criminals have had no trouble getting handouts.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE