Tender writing service providers provide a very specialized task that a lot of companies do not have the resources to do properly. It is a problem which is confronted by several organizations that have the true infrastructure to accomplish the proposed job with superb expertise to their consumers nonetheless they might not be able to put together the required documents which is necessary to put together this sort of deal. This kind of provider has the expertise to help these businesses through this process and increase their chances of winning the bid.
Plenty of businesses, specifically smaller firms, find it hard to write bids or proposals that will give them the opportunity to achieve further business. Other smaller companies may have issues with explaining precisely how their products and services can provide the perfect solution for their project that they are working on. Utilizing a supplier that will carry out this professional degree of proposal writing service for these kinds of businesses can really help.
These proposal writing companies do more than prepare tenders and bids. They can perform a number of different functions for all types of businesses. These extra features will assist their consumer to place a bid for any kind of contract. These companies will draft and create the whole proposal.
The proposal author will comprehend the standards essential to win a proposal. There are distinct methods that are used to structure an excellent proposal that these companies have the skills and experience to perform. Every agreement has a different value and a few are actually worth several million dollars. A few of these contracts can turn out to be extremely complicated. For all those that aren’t educated concerning the methods of drafting these contracts and all the paperwork that’s concerned, then they are able to depend on these proposal composing companies.
They’ll assist them with pointing out all of the positive attributes of the com! pany. Th ey will help them articulate their positive selling points. Many companies know their positive points but they do not know how to present them in a proposal. These proposal writers will be able to express this in a manner that will increase the probability of winning the proposal. They will also assist with helping the company determining the risks associated to the project that they are tendering for, allowing them to be fully aware of what to expect if they win the tender.
They can analyze the contract prior to placing the bid. The will assist the company in figuring out the benefits and drawbacks of the contract prior to placing the actual bid. A part of their service is to provide advice to companies interested in placing a certain bid. These providers can offer advice on a number of different matters.
A great tender and bid writing service will carry out lots of various features to assist an organization to win a bid. The will represent the companies that they work for and will help to create a winning proposal. A well-written proposal will impress any company and will give them the confidence that the particular company will be able to provide a good job.
S2 Tender Solutions are bid writing specialists who specialise in writing winning PQQ documents and public sector tenders.
Wednesday, April 25, 2012
Sunday, April 22, 2012
Apple: BMO Ups iPad Estimate on Enterprise Prospects
BMO Capital‘s Keith Bachman this afternoon reiterated an Outperform rating on shares of Apple (AAPL), while raising his price target to $675 from a prior $590, after raising his outlook for Apple’s iPhone and iPad unit sales this quarter and the rest of the year.
Bachman believes that the iPad will have increasing uptake in corporations, not just among consumers, he writes, citing in part a recent InformationWeek survey that showed support for tablets on some level spreading throughout corporate IT shops:
For the iPhone, given greater geographic distribution and carrier partnerships, Bachman raised his estimate for the current quarter to 30 million units from 29 million. For the full year, he raised his estimate to 124 million units from 120 million.
Bachman’s financial estimate for this quarter goes to $35.5 billion in revenue and $9.61 per share in profit, up from $34.3 billion and $9.16 a share. For the full year, he models $156.3 billion and $43.50, up from $153.3 billion and $42.33.
Fin
Bachman believes that the iPad will have increasing uptake in corporations, not just among consumers, he writes, citing in part a recent InformationWeek survey that showed support for tablets on some level spreading throughout corporate IT shops:
As part of our views on the tablet market, we think corporate adoption will help, regardless of the ultimate purchaser of the device. More specifically, we think both end consumers will buy tablets for work purposes, and corporations will increasingly buy tablets, and thereby stretch PC replacement cycles.
As a consequence, Bachman sees Apple’s iPad increasingly boosting its share not only of the traditional “PC market,” but also Apple’s shares of the market more broadly defined, including tablets as a computing device:We believe Apple will continue to gain share in the PC market, and we assume Apple�s share increases by about 100 bp from 5% in CY2011 to approximately 6% in CY2013. Importantly, if we look at iPads, we note that Apple�s share has also increased relative all product categories. The iPad�s share relative to the notebook market has increased from 7% in CY2010 to 19% in CY2011, and has increased from 4% in CY2010 to 11% in CY2011 relative to the total PC market. We believe this trend will continue, and we assume iPad share increases to 33% of the notebook market and 20% of total PC market in CY2013.
Bachman’s estimate for the iPad this quarter goes to 11 million from 10 million. ! That bri ngs his estimate for the fiscal year ending in September to 54.1 million units, up from 53.1 million previously.For the iPhone, given greater geographic distribution and carrier partnerships, Bachman raised his estimate for the current quarter to 30 million units from 29 million. For the full year, he raised his estimate to 124 million units from 120 million.
Bachman’s financial estimate for this quarter goes to $35.5 billion in revenue and $9.61 per share in profit, up from $34.3 billion and $9.16 a share. For the full year, he models $156.3 billion and $43.50, up from $153.3 billion and $42.33.
Fin
Best Wall St. Stocks Today: AAPL,MSFT
Don’t start a fight you can’t finish. The music industry did not capitulate to Apple’s (AAPL) suggestion that it allow music to be downloaded without digital rights management. It countered by saying that Apple’s closed iTune system was the major roadblock to a more robust song download environment.
The Recording Industry Association of America wants Apple to open up its anti-piracy system to all of its rivals. The Associated Press quoted the group as saying: "We have no doubt that a technology company as sophisticated and smart as Apple could work with the music community to make that happen."
Apple chief Steve Jobs has opened a Pandora’s Box he may wish he could close. Instead of pressuring the large music publishers to offer their content to DRM-free download access, he has been able to torque them off. That could make them favor rival systems like the Microsoft (MSFT) Zune, the platform that has suggested it share the revenue of its devices sales with the music companies.
Jobs needs to stay quiet.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
The Recording Industry Association of America wants Apple to open up its anti-piracy system to all of its rivals. The Associated Press quoted the group as saying: "We have no doubt that a technology company as sophisticated and smart as Apple could work with the music community to make that happen."
Apple chief Steve Jobs has opened a Pandora’s Box he may wish he could close. Instead of pressuring the large music publishers to offer their content to DRM-free download access, he has been able to torque them off. That could make them favor rival systems like the Microsoft (MSFT) Zune, the platform that has suggested it share the revenue of its devices sales with the music companies.
Jobs needs to stay quiet.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
Friday, April 20, 2012
Kforce Beats Up on Analysts Yet Again
Kforce (Nasdaq: KFRC ) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kforce beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins shrank, and net margins were steady.
Revenue details
Kforce reported revenue of $285.6 million. The eight analysts polled by S&P Capital IQ expected revenue of $281.7 million. Sales were 10% higher than the prior-year quarter's $258.5 million.
EPS came in at $0.20. The eight earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.20 for Q4 were 25% higher than the prior-year quarter's $0.16 per share.
For the quarter, gross margin was 31.2%, 70 basis points worse than the prior-year quarter. Operating margin was 4.1%, 20 basis points worse than the prior-year quarter. Net margin was 2.5%, about the same as the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $285.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.86.
Investor sen! timentThe stock has a five-star rating (out of five) at Motley Fool CAPS, with 87 members rating the stock outperform and 10 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Kforce a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kforce is outperform, with an average price target of $15.38.
Over the decades, small-cap stocks, like Kforce have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kforce beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins shrank, and net margins were steady.
Revenue details
Kforce reported revenue of $285.6 million. The eight analysts polled by S&P Capital IQ expected revenue of $281.7 million. Sales were 10% higher than the prior-year quarter's $258.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS detailsEPS came in at $0.20. The eight earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.20 for Q4 were 25% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin detailsFor the quarter, gross margin was 31.2%, 70 basis points worse than the prior-year quarter. Operating margin was 4.1%, 20 basis points worse than the prior-year quarter. Net margin was 2.5%, about the same as the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $285.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.86.
Investor sen! timentThe stock has a five-star rating (out of five) at Motley Fool CAPS, with 87 members rating the stock outperform and 10 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Kforce a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kforce is outperform, with an average price target of $15.38.
Over the decades, small-cap stocks, like Kforce have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Kforce to My Watchlist.
Thursday, April 19, 2012
Few Tips Before Purchasing Your Stock
Financiers who acquired during the pinnacle of the frothy commodities rally are now panicking or kicking themselves. Neither activity helps a speculator or trader think straight. Below are 1 or 2 tips in handling the present market shakeout.
1. If you think you invested in the right stock (s), then turn off your personal computer and do something pleasurable. Exercising is a great stress reliever. The market has started its shakeout. If you did not get stopped out, or didn’t place earlier stops, your best opportunity lays ahead in picking up additional shares at a much lower price. Almost all of the mavens we’ve interviewed let us know the following rally should start sometime between late July and Work Day. In an effort to interview the uranium guru James Dines in late May, we were told, “Call back in two months.” That was a beneficial clue the markets were less than exciting. Mr. Dines is typically enthusiastic to be interviewed, but lately he wasn’t.
2. Do you suspect the basics which engendered the commodities boom have changed? If they have not, then the bullishness is only taking a breather. We do not see any elemental change in the markets. Russia still wants nuclear power, and its oil production might be topping. China has not said the end of its nuclear enlargement program. India wants to spend $40 bill on new nuclear reactors. If you’re invested in uranium stocks, spot uranium jumped another buck to $45 / pound this past week.
3. If you stress about your investment in one stock or another, then stop watching the ticker and target the company fundamentals. Is the tale still true or has it modified? See seven A, B and C below.
4. There’s an old clich? The time to buy is when you’re feeling like junking everything you own in the class. At the precise moment you would like to sell your whole portfolio of uranium stocks, it could be wiser to contribute to your holdings. This applies prin! cipally to the retail financier. The majority of the execs did dump at the top and are now slowly amassing the paper of the nave who waited till the disaster to start to sell off.
5. Has a major, earth-shattering event happened? The last bull cycle in uranium stopped with 3 Mile Island (TMI). The last decent rally in the expensive metals markets dropped off a cliff after it was found Bre-X Minerals had committed a crime about its gold ‘discovery ‘ in Indonesia. Something heavy and newsworthy always transpires, and it’s also wide-ranging. That’s the trigger. As with TMI and Bre-X, those were the 1st shots which launched a later chain reaction to finish those bull markets.
6. Before pulling the sell trigger, ask: Do I need to give up these shares to a deal cellar hunter, who will make a lot of money on my losses?
7. Since the majority of you’ll still panic, please review the following basics for any of the uranium firms you have read about:
A) How much money does the Firm have in the bank? During shakeouts, money is king. Prescient firms, which finished their financings in the current and powerful rally, are sitting pretty. They can weather the short term tempest and are well-oiled to progress when this correction bottoms and reverses. Those corporations are the most powerful ones to test out when this correction looks most gloomy.
B) Has the management stayed the same? Unless the top money and / or technical folk blew out the door, recently, the story possibly has not changed much. Corporations which constructed a robust technical team are adaptable and powerful. They’re going to move forward.
C) Have the properties come up dry? One reason you invested in a uranium company was as it claimed it had “pounds in the ground.” Some firms have more than others. Some went to the cost and difficulty of completing a Nationwide Instrument 43-101, which independently confirmed the quality and quantity of the uranium resource. If that modified! – and the company said, “Sorry, nothing there after all,” or voiced, “Hey, we were kidding,” that’s one thing. If you have not heard that, or read a press release announcing that, then the uranium did not walk away or move onto a competitor’s property. It’s still there.
Next time, when the markets are racing higher, and you are feeling like you won the lotto, think about this bit of biblical guidance. The old joke goes, “at what point did Noah build his ark?” The answer naturally is: Before it started to rain.
Looking to find the best deal on crash of 1929, then visit my website to find the best advice on free stock market quotes for you.
1. If you think you invested in the right stock (s), then turn off your personal computer and do something pleasurable. Exercising is a great stress reliever. The market has started its shakeout. If you did not get stopped out, or didn’t place earlier stops, your best opportunity lays ahead in picking up additional shares at a much lower price. Almost all of the mavens we’ve interviewed let us know the following rally should start sometime between late July and Work Day. In an effort to interview the uranium guru James Dines in late May, we were told, “Call back in two months.” That was a beneficial clue the markets were less than exciting. Mr. Dines is typically enthusiastic to be interviewed, but lately he wasn’t.
2. Do you suspect the basics which engendered the commodities boom have changed? If they have not, then the bullishness is only taking a breather. We do not see any elemental change in the markets. Russia still wants nuclear power, and its oil production might be topping. China has not said the end of its nuclear enlargement program. India wants to spend $40 bill on new nuclear reactors. If you’re invested in uranium stocks, spot uranium jumped another buck to $45 / pound this past week.
3. If you stress about your investment in one stock or another, then stop watching the ticker and target the company fundamentals. Is the tale still true or has it modified? See seven A, B and C below.
4. There’s an old clich? The time to buy is when you’re feeling like junking everything you own in the class. At the precise moment you would like to sell your whole portfolio of uranium stocks, it could be wiser to contribute to your holdings. This applies prin! cipally to the retail financier. The majority of the execs did dump at the top and are now slowly amassing the paper of the nave who waited till the disaster to start to sell off.
5. Has a major, earth-shattering event happened? The last bull cycle in uranium stopped with 3 Mile Island (TMI). The last decent rally in the expensive metals markets dropped off a cliff after it was found Bre-X Minerals had committed a crime about its gold ‘discovery ‘ in Indonesia. Something heavy and newsworthy always transpires, and it’s also wide-ranging. That’s the trigger. As with TMI and Bre-X, those were the 1st shots which launched a later chain reaction to finish those bull markets.
6. Before pulling the sell trigger, ask: Do I need to give up these shares to a deal cellar hunter, who will make a lot of money on my losses?
7. Since the majority of you’ll still panic, please review the following basics for any of the uranium firms you have read about:
A) How much money does the Firm have in the bank? During shakeouts, money is king. Prescient firms, which finished their financings in the current and powerful rally, are sitting pretty. They can weather the short term tempest and are well-oiled to progress when this correction bottoms and reverses. Those corporations are the most powerful ones to test out when this correction looks most gloomy.
B) Has the management stayed the same? Unless the top money and / or technical folk blew out the door, recently, the story possibly has not changed much. Corporations which constructed a robust technical team are adaptable and powerful. They’re going to move forward.
C) Have the properties come up dry? One reason you invested in a uranium company was as it claimed it had “pounds in the ground.” Some firms have more than others. Some went to the cost and difficulty of completing a Nationwide Instrument 43-101, which independently confirmed the quality and quantity of the uranium resource. If that modified! – and the company said, “Sorry, nothing there after all,” or voiced, “Hey, we were kidding,” that’s one thing. If you have not heard that, or read a press release announcing that, then the uranium did not walk away or move onto a competitor’s property. It’s still there.
Next time, when the markets are racing higher, and you are feeling like you won the lotto, think about this bit of biblical guidance. The old joke goes, “at what point did Noah build his ark?” The answer naturally is: Before it started to rain.
Looking to find the best deal on crash of 1929, then visit my website to find the best advice on free stock market quotes for you.
Wednesday, April 18, 2012
Best Wall St. Stocks Today: GRPN,CS,RTP,GOOG,WSJ,AAPL,PTR,GS,AIG,NYT,BP
Greek ministers will go to Brussels to meet with EU officials about restructuring of debt, but several details have not been resolved. (Reuters)
Groupon�(NASDAQ: GRPN) posts earnings that trouble Wall St. and its shares fall by 10%. (Reuters)
A deal on mortgage data and foreclosures between five banks and state attorneys general is close to being done. The amount of the settlement will be about $25 billion. (Reuters)
Credit Suisse (NYSE: CS) posts a drop in Q4 results. (Reuters)
Rio Tinto�(NYSE: RTP) posts poor results due to metal prices. (Reuters)
Levovo beats earnings forecasts as its market share rises, and it will produce a TV product for Chinese consumers. (Reuters)
Google (NASDAQ: GOOG) to launch a cloud storage product. (WSJ)
The House probably will approve a bill to regulate insider trading by members of Congress and their staffs. (WSJ)
China and Canada to increase official trade relations. (WSJ)
China�s CPI rises to 4.5% in January — up from 4.1% in December. (WSJ)
Some car companies press sales in Indonesia as the number of drivers there surges. (WSJ)
Chrysler may set a deal with banks for consumer and dealer loans that would replace its relationship with Ally. (WSJ)
Apple (NASDAQ: AAPL) tightens it approval process for apps used on the iPad and iPhone. (WSJ)
Petrobras�(NYSE: PTR) estimates of its reserves and the P&L they may create could be too optimistic. (WSJ)
Goldman Sachs (NYSE: GS) buys much of AIG�s (NYSE: AIG) troubled bond portfolio, which dates back to 2008. (WSJ)
Two million homeowners could benefit from a $25 billion settlement over mortgages reached between five banks and the government. (NYT)
Car sales in China fall 24% in January. (NYT)
Young people are watching TV more and more on PCs. (NYT)
BP (NYSE: BP) is conversing with the U.S. government over claims from the Deepwater Horizon oil spill and may settle. (Bloomberg)
Sarkozy�s approval ratings in Fra! nce are near all-time lows for a president. (Bloomberg)
Douglas A. McIntyre
Groupon�(NASDAQ: GRPN) posts earnings that trouble Wall St. and its shares fall by 10%. (Reuters)
A deal on mortgage data and foreclosures between five banks and state attorneys general is close to being done. The amount of the settlement will be about $25 billion. (Reuters)
Credit Suisse (NYSE: CS) posts a drop in Q4 results. (Reuters)
Rio Tinto�(NYSE: RTP) posts poor results due to metal prices. (Reuters)
Levovo beats earnings forecasts as its market share rises, and it will produce a TV product for Chinese consumers. (Reuters)
Google (NASDAQ: GOOG) to launch a cloud storage product. (WSJ)
The House probably will approve a bill to regulate insider trading by members of Congress and their staffs. (WSJ)
China and Canada to increase official trade relations. (WSJ)
China�s CPI rises to 4.5% in January — up from 4.1% in December. (WSJ)
Some car companies press sales in Indonesia as the number of drivers there surges. (WSJ)
Chrysler may set a deal with banks for consumer and dealer loans that would replace its relationship with Ally. (WSJ)
Apple (NASDAQ: AAPL) tightens it approval process for apps used on the iPad and iPhone. (WSJ)
Petrobras�(NYSE: PTR) estimates of its reserves and the P&L they may create could be too optimistic. (WSJ)
Goldman Sachs (NYSE: GS) buys much of AIG�s (NYSE: AIG) troubled bond portfolio, which dates back to 2008. (WSJ)
Two million homeowners could benefit from a $25 billion settlement over mortgages reached between five banks and the government. (NYT)
Car sales in China fall 24% in January. (NYT)
Young people are watching TV more and more on PCs. (NYT)
BP (NYSE: BP) is conversing with the U.S. government over claims from the Deepwater Horizon oil spill and may settle. (Bloomberg)
Sarkozy�s approval ratings in Fra! nce are near all-time lows for a president. (Bloomberg)
Douglas A. McIntyre
Tuesday, April 17, 2012
5 Reasons to Worry About 2012
As soon as 2011 counted down to zero -- and we began to sing something about old acquaintances -- it was time to get excited about 2012.
The economy isn't perfect, but it's showing some signs of life. Unemployment levels are still high, but companies are operating more efficiently with the folks they have. Surely corporate America is in for a strong year of bottom-line growth, right?
Well, not right.
Every week I single out a few companies expected to post lower quarterly results than they did a year earlier. I follow that up with a list of companies that will thankfully post actual earnings growth.
I'm going to do things a little differently right now. I am going to go over five publicly traded companies that analysts see earning less here in 2012 than they did in 2011. They may be in the minority now as Wall Street generally waxes positive on the profit potential of most companies, but there are more than a few companies to keep an eye on that are going the wrong way.
Let's start at the top with Annaly Capital.
The real estate investment trust investing in mortgage-backed securities is popular around Fooldom, largely for its chunky 14.2% yield. Yes, that's not a typo. The problem is that the niche itself lost investors money last year, as meaty dividends weren't enough to offset larger losses at some mortgage REITs. More specific to Annaly's situation, what do you think happens to a REIT's yield if its earnings shrink? We may be about to find out this year.
Specialty glass giant Corning has been strumbling lately. Strumbling? Sure, that's when a company is both stumbling and struggling. Look it up. It probably exists. Corning hosed down its fourth-quarter guidance on soft demand for its Gorilla Glass, lower glass prices in general, and losing a contract with a major South Korean customer. Things have to get better? Not really. The pros now see Corning's profitability dipping slightly in 2012.
Dangdang went public a little more than a year ago as a fast-growing Web-based retailer. Books are Dangdang's specialty, though it's been expanding into bigger ticket items. Unfortunately, it's not easy running an e-commerce operation in China where fulfillment costs can be prohibitive. Dangdang seemed to be closing in on profitability early last year, but now the profitless e-tailer is posting widening deficits.
For-profit post-secondary educators have gone from being seen as all-weather recession-resilient darlings to a problematic industry where aggressive marketing, dubious educational accomplishments, and terrible student loan repayment rates are eating away at key players. Strayer's profitability fell in 2011, and the pros see it losing ground again in 2012.
Finally, we have Exelixis. The biotech working on potential cancer treatments has ha! d a year of ups and downs on the regulatory approval front. It did manage to squeeze out a rare profit along the way, but Wall Street's ready for another steep deficit this year. Perhaps even more problematic -- eyeing the next four quarters -- is that analysts see the company's deficits accelerating with every passing quarter.
Why the long face, short-seller?
This doesn't necessarily mean that investors should run the other way from these stocks. Exelixis may finally gain the FDA approval it seeks. Who knows where Annaly will be a year from now if the volatile nature of the mortgage-backed securities market actually improves.
However, as things stand right now, these aren't pretty places to be.
The good news here is that Wall Street already expects these companies to deliver shrinking bottom lines. I wasn't tapping into some secret data bank to pull out the projections for the year that lies ahead. In other words, the bad news is already baked into the shares.
The more I think about it, the less worried I become.
If five reasons to worry aren't enough, let's make your future No. 6. There's a single shocking truth about your retirement that you may not know. It's part of a free report that won't be around forever, so check it out now.
The economy isn't perfect, but it's showing some signs of life. Unemployment levels are still high, but companies are operating more efficiently with the folks they have. Surely corporate America is in for a strong year of bottom-line growth, right?
Well, not right.
Every week I single out a few companies expected to post lower quarterly results than they did a year earlier. I follow that up with a list of companies that will thankfully post actual earnings growth.
I'm going to do things a little differently right now. I am going to go over five publicly traded companies that analysts see earning less here in 2012 than they did in 2011. They may be in the minority now as Wall Street generally waxes positive on the profit potential of most companies, but there are more than a few companies to keep an eye on that are going the wrong way.
Company | 2011 EPS (estimated) | 2012 EPS (estimated) | My Watchlist |
|---|---|---|---|
| Annaly Capital (NYSE: NLY ) | $2.41 | $2.29 | Add |
| Corning (NYSE: GLW ) | $1.79 | $1.71 | Add |
| Dangdang (Nasdaq: DANG ) | ($0.35) | ($0.55) | Add |
| Strayer Education (Nasdaq: STRA ) | $8.83 | $7.09 | Add |
| Exelixis (Nasdaq: EXEL ) | $0.04 | ($0.92) | Add |
Source: Thomson Reuters.
Clearing the tableLet's start at the top with Annaly Capital.
The real estate investment trust investing in mortgage-backed securities is popular around Fooldom, largely for its chunky 14.2% yield. Yes, that's not a typo. The problem is that the niche itself lost investors money last year, as meaty dividends weren't enough to offset larger losses at some mortgage REITs. More specific to Annaly's situation, what do you think happens to a REIT's yield if its earnings shrink? We may be about to find out this year.
Specialty glass giant Corning has been strumbling lately. Strumbling? Sure, that's when a company is both stumbling and struggling. Look it up. It probably exists. Corning hosed down its fourth-quarter guidance on soft demand for its Gorilla Glass, lower glass prices in general, and losing a contract with a major South Korean customer. Things have to get better? Not really. The pros now see Corning's profitability dipping slightly in 2012.
Dangdang went public a little more than a year ago as a fast-growing Web-based retailer. Books are Dangdang's specialty, though it's been expanding into bigger ticket items. Unfortunately, it's not easy running an e-commerce operation in China where fulfillment costs can be prohibitive. Dangdang seemed to be closing in on profitability early last year, but now the profitless e-tailer is posting widening deficits.
For-profit post-secondary educators have gone from being seen as all-weather recession-resilient darlings to a problematic industry where aggressive marketing, dubious educational accomplishments, and terrible student loan repayment rates are eating away at key players. Strayer's profitability fell in 2011, and the pros see it losing ground again in 2012.
Finally, we have Exelixis. The biotech working on potential cancer treatments has ha! d a year of ups and downs on the regulatory approval front. It did manage to squeeze out a rare profit along the way, but Wall Street's ready for another steep deficit this year. Perhaps even more problematic -- eyeing the next four quarters -- is that analysts see the company's deficits accelerating with every passing quarter.
Why the long face, short-seller?
This doesn't necessarily mean that investors should run the other way from these stocks. Exelixis may finally gain the FDA approval it seeks. Who knows where Annaly will be a year from now if the volatile nature of the mortgage-backed securities market actually improves.
However, as things stand right now, these aren't pretty places to be.
The good news here is that Wall Street already expects these companies to deliver shrinking bottom lines. I wasn't tapping into some secret data bank to pull out the projections for the year that lies ahead. In other words, the bad news is already baked into the shares.
The more I think about it, the less worried I become.
If five reasons to worry aren't enough, let's make your future No. 6. There's a single shocking truth about your retirement that you may not know. It's part of a free report that won't be around forever, so check it out now.
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