EC Probes Apple's Irish Tax Pot 'o Gold, Earnings, Jim Cramer's Pick
It was all good for Apple: the company's shares have soared for the last 12 months, it is right on the precipice of releasing its latest, greatest handset, and until the European Commission started probing its tax arrangements in Ireland, things were looking great. Now, its use of 'transfer pricing' along with Starbucks, is coming under the microscope. Plus, after a string of misses, H&R Block is set to report earnings for its big quarter -- tax season. And, Jim Cramer has an aerospace company in today's Action Alert Pick that he says is set to take off. June 11, 2014 at the Nasdaq Marketsite.
Zillow CEO Spencer Rascoff Says Housing is Localized, Complicated
After the National Association of Realtors said pending home sales dropped 1.1% in June following three straight months of solid growth, Zillow chief executive officer Spencer Rascoff weighs in on the choppy picture of the housing market right now. Rascoff says there is no national real estate picture. In fact, he says the housing market is hyper-local, with New York City and the San Francisco Bay area being the strongest regions. Looking forward to the rest of the year, Rascoff offers the prediction of 3% to 4% nationwide appreciation, which he says is slightly better than historical averages.
How to Make Your Own 'Millionaire Master Plan'
There is no one-size-fits-all formula to creating wealth, but the first step in all cases is to understand your natural strengths, said Roger James Hamilton, author of "The Millionaire Master Plan". Hamilton said your own path to millions is determined by what kind of inner genius you already are: Dynamo, Blaze, Tempo or Steel. Once you discover your category of genius then you can find your "flow". He said people get off track when they don't understand the path they are on and need to find a team headed in the right direction to regain direction. Finally, Hamilton said people need not be entrepreneurs to become multi-millionaires.
Norwegian Cruise Line’s Upgraded Amenities Help Boost Earnings
Norwegian Cruise Line's second quarter demonstrated that the company's investments in new ships and fleet modernization are paying dividends. Adjusted earnings per share came in at $0.58, $0.01 above Wall Street expectations. The result represented the seventh consecutive quarter in which Norwegian Cruise Line surpassed consensus earnings expectations. Net revenue growth clocked in at 18.9% year over year, below consensus estimates for 23.7% growth, marking the fifth straight quarter that Norwegian Cruise Line was light in terms of revenue. The revenue shortfall could be attributed to what chief executive officer Kevin Sheehan characterized a "promotional environment", likely in the Caribbean market, which led to on-board revenue growth outpacing ticket growth. Brian Sozzi returns to his recent interview with Sheehan to reveal why the quarter was strong on the bottom line.
Herbalife Takes Heavy hit After Reporting Q2 Results
Shares of Herbalife took a hit after the company reported its second quarter results which missed expectations on both the top and bottom line. Herbalife earned $1.55 a share and fell a penny below expectations, but it was a 10% increase from the same a year ago period. Sales of $1.3 billion were $100 million more than the same period last year. Herbalife also raised its fiscal 2014 earnings estimates and expects them to be between $6.17 and $6.32 a share. Shares of Herbalife have been extremely volatile as a result of the actions of activist investor Bill Ackman who has a $1 billion short on Herbalife. Herbalife shares are down 14% for the year. TheStreet's Whalen MacHale reports from New York.
Dow, S&P Rebound To Post Small Gains, Nasdaq Ends in the Red
Major U.S. markets ended Monday's trading session mostly flat but the Nasdaq was slightly lower. The Dow Jones Industrials and S&P 500 staged a late day comeback and managed to close slightly higher. The government's announcement that pending home sales unexpectedly fell in June, down 1.1 percent, rattled the markets. Home builder stocks lost ground on the report, Lennar (LEN), KB Home (KBH) and DR Horton (DHI) each was down roughly 2 percent. Traders were initially greeted with loads of news from the deals front this morning before the bell. Dollar Tree (DLTR) is buying Family Dollar (FDO) for $8.5 billion. Both stocks ended with gains. Zillow (Z) also said it was buying its rival Trulia (TRLA). Scheduled to report on Tuesday are Merck (MRK), Pfizer (PFE) and Twitter (TWTR). TheStreet's Susannah Lee reports from Wall Street.
Family Dollar (FDO) Stock Surges on Pricey Takeover Deal
Shares of Family Dollar soared on Monday making it TheStreet's Move of the Day. The discount retailer surged after accepting a takeover bid from Dollar Tree worth $8.5 billion, or about $74.50 a share, in cash and stock, which was about a 22% premium to Family Dollar's Friday closing price of $60.66 a share. Family Dollar CEO Howard Levine said in a statement released Monday morning: "While this assessment of alternatives included consideration of a number of potential partners, we are pleased to conclude this process with the announcement of this compelling transaction with Dollar Tree, which our board has unanimously determined to be in the best interests of our shareholders."
Zillow CEO Spencer Rascoff on the Benefits of $3.5B Trulia Buyout
Zillow announced it will buy rival Trulia for $3.5 billion in stock. Zillow chief executive officer Spencer Rascoff tells TheStreet's Brittany Umar how the acquisition will enhance Zillow's business -- from gaps it will fill in its portfolio, the ways in which it stands to positively impact advertising revenue and how it has the potential to reach $100 million in cost savings by 2016. As the Trulia deal is the latest in a string of acquisitions made by Zillow of companies including Streeteasy.com, Retsly Software and HotPads, Rascoff also reveals what sort of company Zillow is aiming to become through these deals.
Tyson Ups Estimates and Trims Fat After Hillshire Buy
Tyson Foods shares are higher on Monday after reporting quarterly results which missed forecasts but said it was selling assets which would bring in nearly $600 million. Although earnings of 73 cents a share were six cents below expectations, Tyson's raised its fiscal 2015 earnings guidance and that sent the stock higher. On the top line, sales of $9.7 billion dollars were better than Wall Street estimates and were an 11% increase from the sales during the same quarter last year. Tyson also announced it is selling its Brazil and Mexico operations for $570 million. The proceeds from the sale will go towards paying off the debt Tyson took on when it bought Hillshire Brands. That deal should be finalized by the fourth quarter. Tyson shares are up 23% over the past year. TheStreet's Whalen MacHale reports from New York.
Royce Manager Praises Family Mart, Thomas Cook India & Ashmore
Japan-based convenience store operator Family Mart is a smart play on pan-Asian growth with the benefit of strong corporate governance, said David Nadel, portfolio manager for the Royce International Smaller-Companies Fund. Nadel is also bullish on Thomas Cook India, saying the travel services company will benefit from the leisure aspirations of the growing middle class in India. Furthermore, he said Thomas Cook India is asset light has boasts a very profitable foreign exchange business. Finally, Nadel is positive on the Ashmore Group, saying that the emerging market fund manager will profit from investors worldwide seeking yield.