Henkel Opens World's Largest Adhesives Factory in Beijing
Henkel has opened the world's largest adhesives factory in Shanghai. The factory, called the Dragon Plant, opened on September 18, 2013. The massive factory features 150,000 square meters of space. The Dragon Plant's annual output is forecast to reach up to 428,000 metric tons of adhesives.
Kasper Rorsted, Chairman of the Management Board of the Henkel Group, said in a statement, "This new adhesives factory will contribute significantly to the achievement of our strategy 2016: It will enable our Adhesives business to expand and leverage its global reach, and win market share in emerging market."
Henkel says the new plant is part of its plan to "consolidate and optimize its global production network." About 600 people will work at the plant. The plant has green features, such as condensed water recovery systems, which cuts the water usage in half. Another feature is special translucent roofs which let more daylight in and reduce electricity usage for lighting. There is also a system for recovering waste heat.
Facebook Shares Briefly Climb Back Above May 2012 IPO Price
Facebook's stock briefly climbed above its IPO price of $38 earlier today. Shares have since falled below $37 a share. Facebook [FB] has been climbing since it reported better than expected for its second quarter last week.
Facebook's mobile advertising has been growing and is now 41% of its total ad revenue. An early concern for the company was that they could not monetize mobile users. Facebook also recently announced a Mobile Games Publishing pilot program, which will help developers distribute games and generate ad revenues from games. Facebook will take a cute of the revenues.
Facebook still has a big problem, which is that is may be very over priced based on its P/E. Facebook trades at a P/E of 168.77. By comparison, Apple has a P/E of 11.29 and Yahoo has a P/E of 7.6.
Bloomberg is reporting that Hulu is in talks with Time Warner Cable. TWC would acquire 25% of a stake in Hulu, making it a partner with Walt Disney, Comcast and 21st Century Fox.
This latest news follows Hulu's announcement that it had canceled an auction. The Hollywood Reporterreports that Hulu canceled the auction despite a final bid of $1 billion from DirecTV. Hulu also said that $750 million would be invested into the site by its three current owners owners - 21st Century Fox, NBCUniversal and The Walt Disney Company.
Robert A. Iger, Chairman and CEO, The Walt Disney Company, said in a statement, "Hulu has emerged as one of the most consumer friendly, technologically innovative viewing platforms in the digital era. As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential."
Hulu launched its service and 2008 after a private beta test in 2007.
Motorola has an updated logo. The logo features a rainbow of colors in the circle around the M. The Vergenotes that the font has also changed. The word "motorola" is in lower-case, which is something we do not care for. The name of a brand or company should be capitalized.
Google's acquisition of Motorola was completed last month. It was a huge $12.5 billion purchase.
The Dow had its worst day of the year. The Dow fell 353 points. Stocks are down about 5% since last month's highs. The drop comes amidst some good economic sings. A CNBC report ties the Dow drop directly to a statement by Bernanke on Wednesday. CNBC also reports that signs the Fed may pull back on its easy money policies caused the dollar and interest rates to rise. Take a look:
Krispy Kreme [KKD] shares climbed 21% Friday to $17.32. KKD shares climbed after it reported its financial results for its first quarter of fiscal 2014. Krispy Kreme says same store sales climbed 11.4%, its 18th consecutive quarterly increase. Operating income climbed 40% from $10.8 millio to $11.5 million.
The doughnut company also raised its outlook for the full fiscal year. It raised its fiscal 2014 earnings from between $0.53 and $0.57 to between $0.59 and $0.63 per share. Bloomberg says analysts had expected 58 cents on average.
James H. Morgan, chairman, president and ceo of Krispy Kreme, said in a release, "Our exceptional performance in the first quarter is a testament to both the strength of our brand and the dedication of our team members and franchisees worldwide. It is also evidence of our ongoing momentum which we believe will make this another outstanding year at Krispy Kreme. We continue to believe we are in the very early stages of developing Krispy Kreme's long-term potential as we continue to execute on our strategic priorities, demonstrate our capability to grow same store sales, generate significant operating cash flow, and increase earnings over the long term."
Fool.com reports that Krispy Kreme's rising sales and earnings may already be "baked into the price."
Angela Merkel Tops Forbes List of 100 Most Powerful Women
Forbes has announced its 10th annual ranking of the World's 100 Most Powerful Women. Angela Merkel is #1 for the third straight year. She is followed by Brazilian President Dilma Rousseff, Melinda Gate, MIchelle Obama and Hillary Clinton. Hewlett-Packard CEO Meg Whitman (No. 15) is the subject of the cover story, "The Reluctant Savior."
Newcomers on the list include outh Korean President Park Geun-hye (No. 11); Lockheed Martin CEO Marillyn Hewson (No. 34); Tory Burch CEO Tory Burch (No. 69); Spanx founder Sara Blakely (No. 90) and Baidu CFO Jennifer Li (No. 98).
The Dow Jones industrial average broke the 15,000 milestone today. This is the first time in history the Dow has closed over 15,000. The official closing amount was 15,056.20. The Dow was up over 87 points on the day. CNBC says the milestone means gains could keep coming in the days ahead.
Jason Weisberg, Seaport Securities, also believes the marker is a sign the markets will go higher and that this is a real rally. Take a look:
Warren Buffett has joined Twitter. His verified account is @WarrenBuffett. His first tweet was, "Warren is in the house." Buffett then linked an essay of his on CNN/Money about why women are the key to America's prosperity.
Buffett has quickly garnered over 200,000 followers and probably will add hundreds of thousands more in the coming days.
Yum Brands Reports Q1 2013 EPS Down 8%, Warns of Bird Flu Outbreak
Yum Brands, which owns fast food chains including KFC, Pizza Hut and Taco Bell, recently reported its results for its first quarter ending March 23, 2013. Reported EPS was $0.72 for the quarter. This was down 24% from the $0.96 EPS recorded in Q1 2012.
Yum Brands says a poultry supply situation in late December 2013 had a big impact on its China division sales. Same-store sales were down 20% in China. However, same-store sales grew !% at Yum! Restaurants International (YRI) and 2% in the U.S.
Motley Foolsays Yum! shares look delicious. With the H7N9 avian flu outbreak in China the company may continue to struggle there, but should recover if the outbreak ebbs. CBS Money Watchreports that Yum is warning about the bird flu outbreak and its potential to curb sales. The outbreak has killed 22 so far. The sale figures do look good outside of China for Yum!.
Yum Brand's 2012 annual report can be found here (PDF).
This past week was an unusual one for the stock market. Stocks climbed overall while Apple shares fell. It was like opposite week. Apple's shares have now lost nearly 40% of their value since peaking at $702 on September 19, 2012.
Apple's revenues have continued to climb, but concerns about the future of Apple are growing. Apple often soars from new products and innovation. The iPad and iPhone are already no longer brand new in our tech-focused culture that is constantly craving something new. The loss of Steve Jobs is a concern. There is also concern that the Android platform could give Apple headaches in smartphones in the same way the PC gave Apple headaches in the late 80s and 90s. Apple also appears to have poured cold water on rumors it might offer a cheaper phone to increase its smartphone marketshare. This is all weighing down Apple's stock. It may require another innovative gadget for the company to soar to new heights once again. Take a look:
Apple Shares Plunge Over 10% in After Hours Trading
Apple (AAPL) shares have plunged over 10% in after hours trading. Reuters reports that iPhone sales came in below expectations. Analysts expected 50 million iPhone sales for the quarter (Apple's fiscal first quarter) and the company sold 47.8 million. Revenues came in at $54.5 billion, which is huge, but under analysts averaged expectations of $54.73 billion.
Barron's reports that shares of Apple were halted temporarily, but trading is currently underway in the after hours session.
Apple also moved 22.9 million iPads in its fiscal first quarter. It is not clear how many of them were the new iPad mini.
Apple Shares Hit 11-Month Low Following Report Linking Cut in Production to Weaker iPhone 5 Demand
Apple shares hit an 11 month low today. The stock [AAPL] fell $18.55 (3.57%) to close at $501.75. Apple has lost nearly 200 points since mid-September. Bloomberg is reporting that the drop comes after the Nikkei newswire reported Apple cut its production due to weak iPhone 5 demand. Apple reportedly cut production by nearly 30% last month.
CNET reports that JP Morgan analyst Mark Moskowitz is calling the new reports old news. However, even the Wall Street Journal is saying the cuts were due to weaker demand for the iPhone 5. Take a look:
NYSE to Remain Open for Trading Electronically During Hurricane Sandy
NYSE Euronext has announced that it will suspend physical trading floor operations and close its building due to Hurricane Sandy. However, it will invoke its contingency plans to trade all NYSE-listed securities on NYSE Arca, its electronic exchange, beginning Monday, Oct. 29, 2012.
Duncan L. Niederauer, CEO NYSE Euronext, said in a statement, "We are open for business and at the same time acting in accordance with actions taken by the city and state of New York. We have been in discussions with government officials and regulators, our trading floor community, issuers and other customers. We will continue to communicate and coordinate activities with regulators and government officials, other market centers, member firms and all of our customers. I would like to acknowledge everyone's outstanding cooperation and singular focus on serving the best interests of people, safety and our capital markets. This is an extremely dangerous and unpredictable weather event, and we support the actions taken by city and state officials. On behalf of everyone at NYSE Euronext, our thoughts and prayers go to everyone impacted by the storm."
CNN notes that the exchange also closed in 1985 for Hurricane Gloria and closed early due to a snowstorm in 1965. Some companies with headquarters in the lower Manhattan flood zone, such as AMEX, will be closed on Monday.