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I Love Brands, I Love Investing in Unilever

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LONDON -- Thinking about it for a minute, it is rare for me to buy any item that is not a brand. This does not mean that I am hugely materialistic or a "brand snob," but I do seem to gravitate toward brands rather than buy supermarket own-brands or whatever else.

For instance, I buy Persil detergent, drink PG Tips tea, and (weather permitting) enjoy a Magnum ice cream, all of which are brands owned by Unilever  .

The conclusion?


Either I am the marketing department's dream customer and have been successfully brainwashed into thinking that brands are better. Or I am seemingly among the majority of consumers who favor the reliability, quality, and consistency that brands offer.

Certainly, I and many other consumers could save money through buying Tesco everyday-value products or Asda smart-price goods. Indeed, this would be entirely logical and, although I may notice a difference vs. the brand at first, I'm sure this would quickly wear off.

The thing is, though, I don't switch to non-branded products. And neither do a vast number of consumers across the developed world.

Indeed, the same is true outside of the U.K. and the developed world. More than half of Unilever's sales are derived from emerging markets, where Unilever's sales agents are ensuring the company's products are on full display in local shops as well as vast shopping malls.

So, while the consumer backdrop in the developed world may be stuttering, the growth in emerging markets is being tapped into by Unilever. Such exposure is not only beneficial for the present, but bodes extremely well for the future, with brand loyalty being gradually built up in emerging markets, ensuring the long-term success of the company.

Such rapid development means that earnings per share (EPS) are forecast to grow at an annual rate of 10.5% during the next two years. However, some of that growth seems to be priced into the shares, since the company's P/E ratio is higher than that of its sector at just under 20 (historic) vs. 16.5.

Meanwhile, a yield of 3.2% is below the FTSE 100 average, although the growth of dividends per share should at least match EPS growth in future years.

Of course, just like any leading brand: You get what you pay for. Unilever's shares may not be cheap, but in my view they are well worth the money. They are a brand, after all.

Let me finish by adding that if you already hold Unilever shares and are looking for alternative opportunities in the FTSE 100, this exclusive wealth report reviews five particularly attractive possibilities.

Indeed, all five blue chips offer a mix of robust prospects, illustrious histories, and dependable dividends and have just been declared by The Motley Fool as "5 Shares You Can Retire On."

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The article I Love Brands, I Love Investing in Unilever originally appeared on Fool.com.

Peter Stephens owns shares of Tesco. The Motley Fool recommends and owns shares of Tesco. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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AkzoNobel Divesting German Paint Stores

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In a move designed to strengthen the performance of its German decorative paints business, Netherlands-based paint giant AkzoNobel announced today that it is divesting to independent distributors that country's paints stores for professionals.

The company currently operates 72 stores in Germany that sell professional paint and third-party products. The new setup is intended to allow the paint maker to select the most efficient distribution channels for its professional paint products, rather than operating its own stores. Instead, it will focus its activities on the distribution and marketing of paint under brands such as Sikkens, Herbol, and Consolan.

Ruud Joosten, AkzoNobel executive committee member, decorative paints, said: "We are changing the marketing strategy of our German decorative paints business to focus on our key organizational strengths of marketing and distributing our strong paint brands. This is part of our ongoing efforts to strengthen both our organizational efficiency and our profitability in Germany."


While saying it remains committed to the German market, the paint company also said it's reviewing its office footprint in the country. 

Werner Fuhrmann, the executive committee member responsible for specialty chemicals and Germany, said: "These improvements are intended to reduce complexity and further improve the operational efficiency of our German activities. They will boost our competitiveness and help us to greater success for our businesses in Germany going forward."

In total, AkzoNobel's decorative paints, performance coatings, and specialty chemicals businesses have 3,900 employees in Germany, along with 17 manufacturing plants and eight offices. They generated revenues last year of close to 1.3 billion euros in the country.

The article AkzoNobel Divesting German Paint Stores originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Two-Thirds of Dassault Shareholders to Receive Stock for Dividend

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At the May 30 annual shareholders' meeting of Dassault Systemes , a dividend of 0.80 euros per share for fiscal 2012 was agreed upon, with each investor able to determine whether he or she wanted to receive the payout in cash or in new shares of the 3-D design software specialist.

Dassault announced today the results of the vote and said that 67.93% of those voting elected to receive new shares, which will be distributed at an issuance price of 91.71 euros. As a result, 741,175 new ordinary shares will be issued, representing 0.59% of the share capital and 0.44% of Dassault's voting rights calculated on the basis of the share capital and voting rights on May 31, with the new shares delivered on June 28.

Shareholders who elected to receive cash dividends will also be paid as from June 28, with the aggregate amount being 31.3 million euros. 

The article Two-Thirds of Dassault Shareholders to Receive Stock for Dividend originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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This Gun Maker Just Blew Away Earnings Estimates

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Gun-loving investors, rejoice! On Tuesday, firearms manufacturer Smith & Wesson just capped a banner year with a record fiscal fourth-quarter earnings report.

So why did the stock fall more than 3% Wednesday morning?

Some background
Well, this wasn't exactly a huge surprise, especially considering shares of Smith & Wesson rose more than 5% after the company gave investors a heads-up nearly two weeks ago with preliminary results, saying fourth-quarter net sales rose around 38% from the same year-ago period to $179 million, while GAAP net income grew 63% to $0.44 per diluted share.


At the same time, they also told us net sales for the year rose 43% year over year to $588 million and 2013 GAAP net income more than tripled from last year to $1.22 per diluted share.

Next, Smith & Wesson took the opportunity in their pre-release to announce a significant debt exchange of $49.2 million in 9.5% notes for $75 million of new, lower interest 5.875% notes, primarily to take advantage of lower interest rates and to afford them the chance to make "strategically opportunistic" investments with the difference in principal.

Finally, the company announced a $100 million stock repurchase program, whereby $75 million would be repurchased through a fixed-price issuer tender offer at $10.00 per share -- or a premium of 3% to the current share price of $9.71 per share -- with the remaining amount to be handled either in the open market or through privately negotiated deals. In all, the buyback had the potential to reduce the number of outstanding Smith & Wesson shares by as much as 15%.

The bigger picture
That was all well and good, but Tuesday's release gives us a better view of the bigger picture for Smith & Wesson -- and from what I can tell, that picture is largely a good one.

Sure enough, the pre-release numbers proved accurate, and the company reaffirmed that, while it continued to increase its production capacity, it's still "unable to meet the ongoing demand across most of its firearm product lines, resulting in additional growth in the company's order backlog."

However, yesterday's press release also indicated that the company has since sold an additional $25 million in 5.875% notes, bringing the total new debt issuance to $100 million, with no additional plans to issue more going forward. 

In addition, the $75 million fixed-price tender offer at $10 per share commenced on June 17, 2013, and is expected to close on July 15.

Enjoy it while it lasts?
Of course, the big worry on investors' minds is that the current surge in demand will end. Remember, as I wrote back in April, Joseph Rupp, the CEO of Winchester ammo manufacturer Olin Corporation , has already stated this surge predictably began just before last year's presidential election and should last "well into the third quarter" of 2013. But the fact remains, the party must stop eventually, right?

But, really, it's extraordinarily difficult to pinpoint exactly when that will happen, and Rupp himself said the last time they experienced demand like this, the drop-off was gradual -- a 10% to 20% fall over a two-year period.

This time, Rupp says, the industry fully expects a similar decline. In the meantime, firearms-centric businesses like Olin and Smith & Wesson are left doing their best to intelligently gauge that demand, being careful not to simply build out their capacity only for it to become useless after sales wane.

Luckily, Smith & Wesson CEO James Debney provided some consolation on the company's earnings conference call by stating that it's not taking a haphazard approach to building out capacity. Instead, Debney says, the company will add it where it "believe[s] it is appropriate, and with a focus on balancing internal capacity expansion with the outsourcing of selected components." This, in turn, provides the flexibility to enable growth while at the same time "providing a layer of insulation should the markets soften."

Foolish takeaway
In the end, I'm encouraged not only by Smith & Wesson's current results but also by the fact that it's wisely managing the business for the long term with a shareholder-friendly attitude -- and absent any delusions that the current boom will go on forever.

With shares currently trading at just 10 times last year's earnings and 8.6 times next year's estimates, then, I'm convinced Smith & Wesson stock represents a fantastic value at today's levels.

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The article This Gun Maker Just Blew Away Earnings Estimates originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Dr. Reddy's Launches Generic Lamictal

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Following FDA approval of its abbreviated new drug application, or ANDA, Dr. Reddy's Laboratories announced today that it launched its lamotrigine extended-release tablets, the generic version of GlaxoSmithKline's Lamictal. 

Lamotrigine is an anticonvulsant used to treat epilepsy and bipolar disorders. The generic-drug maker said it launched the drug on June 25 and the extended-release tablets are available in dosages of 25 mg, 50 mg, 100 mg, 200 mg, and 300 mg in 30-count bottles.

Dr. Reddy's Labs quotes IMS Health in noting the branded drug had domestic sales of approximately $300.5 million for the trailing 12-month period ending in April.

The article Dr. Reddy's Launches Generic Lamictal originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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1 Stock Portfolio for Boomer Children

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Three out of five Americans in their 30s are at risk of experiencing a decline in their standard of living after they retire. But despite this dire statistic, your retirement preparedness doesn't have to be hopeless. Constructing a great retirement portfolio is actually quite simple.

Getting a head start
Young investors harness the single most desirable trait in the entire investing universe: time. With time on your side, you have wiggle room to make up for any investing mistakes. Also, being young allows you to invest more aggressively than many investors. And investing small amounts of money now will give you significant advantages later in life.

If those reasons aren't enticing enough, consider that between 1926 and 2010, there was not one single rolling 20-year period with negative returns for stocks. Not one.


So let's get started!

Building your portfolio
You can construct a great portfolio using a simple method and several high-quality stocks. Allocate a portion of your portfolio in core stocks, a piece in growth stocks, and a sliver in aggressive stocks. If your risk tolerance is exceptionally high, consider stomaching an extra stock or two in the growth and aggressive piles. Instead, if your risk tolerance is low, add more core stocks and fewer aggressive ones.

Core
Core stocks build the foundation for your portfolio and provide you with slow but steady growth. They're stocks of big companies that have been around for many decades and are considered industry leaders in their respective sectors. Core stocks are often considered boring, but you can sleep soundly knowing they'll be around tomorrow. In fact, you'll probably own your core stocks for the rest of your life.

We often use these companies' products and services on a daily basis. For example, think about your favorite soft drink, the type of toothpaste you like, or where you bank. There's a good chance that the companies behind those products are considered core. For example, Coca-Cola is a core stock you'll want to consider. As the world's largest beverage company, Coke boasts 16 billion-dollar brands -- including Diet Coke, Coca-Cola Zero, and Sprite -- and sells 1.8 billion servings of its beverages every single day. 

Growth
Growth stocks aren't as stodgy as core stocks, but they aren't as sexy as aggressive. These stocks still have excellent growth potential and boast well-established business models. For example, consider a growth stock like Chipotle Mexican Grill . Chipotle boasts a proven business model of providing yummy, high-quality fast food. This burrito maker has enjoyed sizzling success, but its growth story isn't over. Recently found to be the No. 1 fast-food restaurant choice among health-conscious consumers, Chipotle boasts vast growth opportunities internationally, and its Southeast Asian restaurant concept houses huge potential.

Aggressive
These companies potentially cause paradigm shifts, turning an industry totally on its head. Think of the small biotech company that might come up with a cure for cancer. Or consider today's red-hot 3-D printing sector, spurred by a disruptive technology that's reshaping the way the world converts data into physical objects. For example, last year's stock market darling, 3D Systems , returned nearly 248% in 2012! And that might be just the beginning if this exciting technology is adopted widespread.

Caution: These are swing-for-the-fences stocks. You probably will either hit a home run or strike out miserably. Be sure not to invest so much money in aggressive stocks that you'll be broke and inconsolable if you swing and miss.

Foolish takeaway
By starting at a young age, you'll not only build a great stock portfolio but also set yourself up for a fruitful retirement.

Your financial health is just as important as your personal health. The Motley Fool's special free report "3 Stocks That Will Help You Retire Rich" names specific investment opportunities that could help you build long-term wealth and help you retire well. The Fool also outlines critical wealth-building strategies that every investor should know. Click here to keep reading.

The article 1 Stock Portfolio for Boomer Children originally appeared on Fool.com.

Fool contributor Nicole Seghetti has no position in any stocks mentioned. Follow her on Twitter: @NicoleSeghetti. The Motley Fool recommends 3D Systems, Chipotle Mexican Grill, and Coca-Cola, owns shares of 3D Systems and Chipotle Mexican Grill, and has options on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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When Value Investing Fails

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Though I am definitely a value investing advocate, there are simply times when basic value concepts like fair value and margin of safety fail to provide useful conclusions in analysis. Case in point: the valuation of a fast-growing business like LinkedIn . To illustrate, I'll attempt to find LinkedIn's fair value and its margin of safety.

Meteoric growth is hard to estimate
LinkedIn's first-quarter revenue increased by 72% from the year-ago quarter. That's impressive. Yet it presents a serious problem for value investors.

Value investors, of course, seek out the intrinsic value of a business. And forecasting growth rates for the business going forward is central to any valuation of an ongoing business. But LinkedIn's current high growth rates make forecasting the next several years very difficult. High growth rates present investors with extremely high levels of uncertainty. Difficult questions arise: When will the decline in growth rates begin? To what degree will it unfold? The answers to these two questions will drastically affect valuation.


Sure, year-over-year revenue growth rates have topped 85% in each of the past three years, making LinkedIn's high growth rates pretty consistent. But this doesn't mean we can expect revenue to grow by exceptional rates over the next several years, or even next year for that matter.

For instance, in each of the last three years, Apple's revenue and EPS year-over-year growth rates topped 44%. But in the trailing 12 months, EPS is up only 1.8% from the year before. Who could have seen that coming? Apple shares have fallen right along with growth rates, trading more than 40% lower than they were about nine months ago. Apple is no longer a growth stock. In fact, at today's prices, it could make an excellent value investing candidate or even be considered a worthy dividend stock.

What is LinkedIn worth?
Ignoring the notion that growth stocks are tough to value, let's give LinkedIn a proper shot at a valuation.

Consider two different scenarios. In Scenario A, LinkedIn manages to increase free cash flow by 50% next year, followed by growth rates that decelerate by about 10% annually for the next nine years.

Year

Growth Rate

1

50%

2

45%

3

40.5%

4

36.5%

5

32.8%

6

29.5%

7

26.6%

8

23.9%

9

21.5%

10

19.4%

Given these assumptions, a discounted cash flow valuation yields a fair value of about $197 for LinkedIn shares, giving shares about an 11% margin of safety at today's price around $177.

But in Scenario B, things don't go quite as well. Free cash flow growth rates decelerate by 15% every year.

Year

Growth Rate

1

50%

2

42.5%

3

36.1%

4

30.7%

5

26.1%

6

22.2%

7

18.9%

8

16%

9

13.6%

10

11.6%

This scenario also seems realistic. Yet now investors face a conundrum. If a scenario like this unfolds, a better estimate of the fair value of LinkedIn's shares is $132, based on a discounted cash flow valuation. In other words, shares would be about 33% overvalued at today's price.

We could also explore a Scenario C, in which growth rates in excess of 40% are sustained for more than five years. In this case, LinkedIn shares would be grossly undervalued.

Herein lies the problem with applying the concepts of value investing to stocks like LinkedIn. Slight changes in estimated growth rates for these fast-growing companies present an uncomfortably wide range of fair value estimates, leaving value investors with nothing more than a headache.

Another approach
So does this mean stocks like LinkedIn do not make the grade as an investment? Not necessarily. Another way to add some context to the stock is to look at the company's addressable market.

LinkedIn's largest operating segment, recruiting, accounts for about 57% of revenue. And fortunately for investors, the segment is plush with opportunity. There's an estimated field of 200,000 corporate clients, and only about 18,000 use LinkedIn. Its recruiting segment already appears to be on a path of massive market share gains, with the segment's revenue up 80% in the first quarter of 2013 from the year-ago quarter.

In other words, LinkedIn's addressable market is huge.

Be flexible
Does LinkedIn's huge addressable market imply the stock is undervalued? No, but it does present a new way to look at its opportunities.

We have to face the fact that there's just no excellent way to find the fair value of the shares of fast growing companies like LinkedIn. Investors brave enough to put their money in these stocks should do so only with a very strong conviction of the company's competitive advantage and its addressable market. A plan to hold for a very long time is essential because the astronomic valuations pinned to stocks like these will most likely be accompanied by very volatile price swings.

Typical value investing methods may not always work. Even when they don't, there's no reason to turn a cold shoulder on a stock. Instead, change your approach and tread carefully.

This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table -- and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!

 

The article When Value Investing Fails originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com, Apple, Facebook, Google, and LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Buy Amazon Before Other Investors Realize Their Mistake

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I consider Amazon.com one of the rare companies that an investor can buy and add to over a period of not just years, but potentially decades. It has one of the strongest competitive moats I've ever seen, and it's growing stronger by the day. Amazon's tremendous scale and reach allow it to offer a broader selection of products at cheaper prices, and via a more convenient shopping experience (order from your Kindle while lying on your couch and have it shipped to your doorstep) than anyone else of the planet. That's a powerful competitive advantage.

Beyond these more obvious benefits, Amazon is expanding its moat through its Amazon Prime program. With each new feature Amazon adds to Prime -- such as its ramped-up content library on Amazon Instant Video -- the service becomes more valuable to customers, making them more likely to renew. And the more "sticky" Prime becomes, the more purchases consumers are likely to make through Amazon.

Amazingly, in addition to its massive global opportunity in e-commerce, Amazon has another megagrowth business in Amazon Web Services. In fact, Andrew R. Jassy, the head of A.W.S, has stated that "we believe at the highest level that A.W.S. can be at least as big as our other businesses." That's incredible, especially when you consider that Amazon's "other businesses" include its core retail operations, which in time may grow to make the e-commerce titan the largest retailer on the planet. Wall Street is beginning to catch on; Morgan Stanley recently published a report that highlights just how disruptive AWS could be to a huge segment of the IT industry.


I think the time is right to increase Tier 1's position in Amazon -- before more investors begin to realize the immense potential of AWS. And so, at least 24 hours after this article is published -- standard operating procedure for The Motley Fool's Real-Money Stock Picks program that's designed to give Fools the opportunity to buy ahead of us should they so choose -- I will be buying more shares of Amazon in the Tier 1 Portfolio.

The article Buy Amazon Before Other Investors Realize Their Mistake originally appeared on Fool.com.

Joe Tenebruso manages a Real-Money Portfolio for The Motley Fool and is an analyst on The Fool's Stock Advisor and Supernova premium service teams. You can connect with him on Twitter: @Tier1Investor. Joe has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Great News! GDP's in the Pits

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Markets jumped today in response to a surprising downward revision in Q1 GDP from 2.4% to 1.8%, with the Dow Jones Industrial Average gaining 150 points, or 1%, as a result. You read that right. In the backwards logic of the current financial zeitgeist, bad economic news is being construed as advantageous for stocks, as traders believe it will help dissuade the Federal Reserve from tapering its bond-buying program.

Long-term investors should be aware that rallies such as today's are purely trader-driven. While it may be reasonable that negative data would influence the Fed, the best outcome for long-term investors would be to see strong GDP and job growth, as an economy returning to full health is the best medicine for stocks.

On an up day on the market and a session where only three blue chips fell, Alcoa was actually the Dow's biggest mover, falling 2.2% as metal prices continue to decline. Gold has a hit a three-year low amid uncertainty from central banks around the world, and base metals have also declined recently on the Chinese credit crisis, since China is a major buyer of commodity metals. Alcoa has been the Dow's worst performer this year, as its dependence on aluminum prices has prevented it from taking advantage of the overall bull market.


Back on the plus side, Boeing gained 2.1% on a couple of items. First, the aircraft maker said it will lease additional 717 jets to QantasLink and Volotea, a small European carrier, later this year. Boeing also made its first 787 Dreamliner delivery to British Airways, with the long-haul carrier having 23 more on order. The delivery is a reminder that the aerospace giant could see significant sales growth from the new composite jet now that it's put the battery-fire issues behind it.

Another big mover was Home Depot , gaining 2.1%. There was no specific news surrounding the home-improvement retailer, but investors were likely pleased to see Treasury yields falling for the first time in eight sessions, easing concerns about rising mortgage rates, which could affect the housing recovery and, consequently, the housing-focused retailer. Shares may have also gotten a boost by reports yesterday that showed new-home sales increasing faster than expected, and a 12.1% increase in home prices in April, also topping projections.

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The article Great News! GDP's in the Pits originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Kratos Wins $18 Million Medical Amplifier Award

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Although Kratos Defense & Security Systems is primarily a national security contractor whose work is typically performed on a military base, in a secure facility, or at a critical infrastructure location, it announced today that it's ready to cook up sales in the health-care field, after being awarded an $18 million contract from a major health-care and medical-equipment provider for high-power microwave amplifiers used in oncology therapy systems.

The initial award is valued at more than $6 million, but it also received the service and maintenance contract for the amplifiers, which has a minimum value of $12 million. With the amplifiers to be built at Kratos' Herley Lancaster facility, the expected delivery date is for the third quarter of this year. The service and maintenance performance portion of the contract runs through 2022.

Kratos Electronics Product Division President Rich Poirier said: "Kratos continues to execute on its strategy to apply proven products and technology in certain very specific commercial applications, and these contract awards are representative of the continued success of this initiative."


Shares of the company closed 3.75% higher, finishing the day at $6.37.

The article Kratos Wins $18 Million Medical Amplifier Award originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Court Sets Office Depot Annual Meeting in Stone

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Ever since private-equity firm Starboard Value became Office Depot's largest shareholder late last year, the two have been butting heads over replacing the company's board members. A court ruling firmly setting the date of the office-supply retailer's annual meeting has both sides claiming victory.

For its part, Office Depot says it's a shame it had to waste money going to court to defend against Starboard's action to force an annual meeting. Since they're working on the merger with OfficeMax , it was a process that had to play out. That's why they announced last week they were going to have the meeting on Aug. 21.

Starboard says Office Depot has historically held the meeting in April, and the company postponed the gathering to thwart the PE firm's efforts at replacing the board. It previously noted that OfficeMax had gone forward with its annual shareholder meeting despite the pending merger. And in spite of what Office Depot management now says, they never notified Starboard they were going to set the meeting date, which is why it was forced to go to court.


Yet with the court saying the date will be Aug. 21, there can be no more delays, and in light of that, Starboard has dropped its motion for consent solicitation, which allows stockholders to take action in the absence of a stockholder meeting. 

Starboard is offering up four candidates for the board, which it says are highly qualified individuals, certainly more so than those currently on the board. Office Depot shareholders of record on July 11 will be eligible to vote at the annual meeting.

The article Court Sets Office Depot Annual Meeting in Stone originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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The 3M You Don't Know

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Forget what you know about 3M : that it's been around for more than a century, posts sales in the tens of billions of dollars, and enjoys a reputation as a consistent, if slightly stodgy, manufacturer of adhesives and abrasives. The company also happens to possesses an alter ego that is focused on the future and gunning for growth. Let's examine three characteristics of 3M that contradict conventional wisdom.

3M is young
Sure, 3M has been in existence since 1902, and still reaps benefits from inventions introduced in the early 20th century, such as masking tape and Scotch tape. But to borrow a metaphor from physiology, while the company's chronological age is 111, its biological age is a much smaller number. 3M is bent on bringing new products to market. The company measures itself in this area by a metric it developed in the late 1980s known as the "New Product Vitality Index," or NPVI. This metric tracks the proportion of company revenues from new products (defined as products less than five years old) to all products sold. In 2008, 3M calculated its NPVI at 25%. Last year, 3M's NPVI was 33%. The company is shooting for an NPVI of 40% by 2017.

Achieving such a high ratio of new sales to total sales may trigger a few complications, including a potential attention deficit to products that take more than five years to achieve their maximum revenue potential. But, as an investor, you would rather the company take risks in favor of innovation than to rest on the broad shoulders of its longer-lived product lines.


3M's opportunity in the developing markets of Latin America, Asia, and Africa is another sign of its relative youth. The company identifies its health-care and consumer business segments as ripe for developing market expansion, as the revenues in these segments are for now concentrated in mature markets. The health-care segment, for example, derives only 21% of present revenue from developing markets. At a 31.9% operating margin, health care is far and away the most profitable operating segment at 3M. Health care generates 42% higher returns than the next most profitable segment (Industrial). Maintaining this ballpark operating margin while expanding sales in developing markets will contribute quite efficiently to 3M's overall profit margin.

3M is small and diversified
By most standards, 3M is a leviathan of a company. It employs more than 88,000 people, and it ranked 101st on the 2013 Fortune 500 list. But in the select group of diversified international conglomerates to which it belongs, 3M is relatively small. By revenue ($30.4 billion in 2012), it's half the size of U.S. peer United Technologies , one-third the size of German conglomerate Siemens , and one-fifth the size of General Electric . The company's operating segments are fairly even in terms of revenue: 

Segment2012 Revenue% of Total
Industrial $9.9 32.6%
Health Care $5.1 16.8%
Consumer $4.4 14.5%
Safety & Graphics $5.5 18.1%
Electronics & Energy $5.5 18.1%
Total $30.4 100.00%

Source: 3M Company. All dollar figures in billons.

 

While nearly a third of revenues is generated by the Industrial segment, this segment also has the highest growth rate, with a three-year compounded annual growth rate, or CAGR, of 13%. The remaining segments average out at roughly $5 billion in annual sales each, with CAGRs that range from 6% to 9%. These segments are small enough to be manageable, with ample room to grow. Moreover, their relatively small footprint can be a virtue as the company continues to maintain the consistent returns it is known for.

For an illustrative counter example, we need look no further than GE: At its comparatively unwieldy size, it is less able to react quickly to changing demand within business segments. GE's first quarter of 2013 was significantly affected by a decrease in its power and water segment revenues. Due to lower thermal and wind sales within this segment, revenue decreased from $6.5 billion to $4.8 billion, a 26% decrease year over year. Bear in mind that this segment's revenues in a single quarter are roughly equal to what one of 3M's segments sells in a year. At GE's scale, it can be difficult to stop the momentum of a single division if it experiences significant weakness. The power and water segment declined dragged down GE's entire results. Luckily for GE, it realized a gain from the sale of its remaining NBC stake to Comcast, effectively rescuing the business quarter. 3M has a long way to go before it reaches GE's proportions, and in the meantime it will continue to be a more agile company.

 3M is hungry
3M is committing between $1 billion and $2 billion per year for mergers and acquisitions in order to augment organic revenue at the company. At that dollar amount, 3M will likely engage in prudent, small deals, mostly cash, with mergers that can quickly accrete to its bottom line. The company historically has been quite efficient in utilizing its capital to acquire smaller companies. On the company's first quarter 2013 conference call, CFO David Meline cited three deals in three different segments that added 1.7% to 3M's sales growth in the quarter: Cerdayne (industrial), CodeRyte (health care) and FS Tech (safety and graphics). This boost in sales revenue from acquisitions was almost as great as organic growth of 2.1% during the quarter. CEO Inge Thulin recently stated that future acquisitions would occur in all five of the company's segments. 


Research and development is another area of appetite for 3M. Comparing 3M to the peers discussed above, we can see that it leads its much bigger colleagues in R&D spending:

Company2012 RevenueR&D ExpenditureR&D % of Sales
       
MMM $29,900 $1,634 5.5%
GE, excluding GE Capital $102,712 $4,520 4.4%
UTX $57,710 $2,371 4.1%
SI $101,110 $5,437 5.4%

Source: Ycharts. All dollar figures in millions.

 
 
3M is a full percentage point ahead of GE and United Technologies and surpasses Siemens by a hair. Going forward, in its hunger to innovate and increase revenue, 3M plans to push its R&D spending to over 6% annually. Increased R&D spending won't necessarily yield more revenue -- the company will have to continue to execute on monetizing its discoveries. But given 3M's long history of extending products across its business segments, this may be one of the best areas of the company's operations to fund risk.

 What to do with this upstart
3M stock has marched steadily upward in the first half of 2013, gaining 17.7%, which exceeds the performance of the S&P 500 index by more than five percentage points. Depending on your investing horizon, it may be prudent to wait for a pullback before taking a position. But even at current pricing, it's hard not to like this young, small, diversified, and hungry company: a steady portfolio choice that becomes more growth and future oriented with each passing business quarter.

 

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The article The 3M You Don't Know originally appeared on Fool.com.

Fool contributor Asit Sharma has no position in any stocks mentioned. The Motley Fool recommends 3M and owns shares of General Electric. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Shareholders Approve Going-Private Plan for 7 Days Group

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Chinese economy hotel chain 7 Days Group announced today that the company's shareholders had approved the going-private proposal that was offered up on Feb. 28. Approximately 88.3% of the hotel chain's shares voted on the proposal, and approximately 86% voted in favor of it. 

7 Days is selling itself to a consortium of companies led by Keystone Lodging, which will be paying $4.60 per share. Its American depository shares will fetch $13.80 per ADS, as each one represents three shares of the hotelier's common stock.

When the transaction is completed, subject to the satisfaction or waiver of the conditions set forth in the merger agreement, 7 Days Group's stock will be delisted from the New York Stock Exchange. The transaction is expected to close in the second half of the year, however.

The article Shareholders Approve Going-Private Plan for 7 Days Group originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Tessera Tech Names an Interim CFO

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Troubled Tessera Technologies announced today that it has named a new interim chief financial officer, John Allen, who was previously the company controller. He will immediately assume the new role as his predecessor C. Richard Neely, Jr., who was only appointed to the position this past August, saw his tenure come to an abrupt end today. The press release announcing the change didn't even wish him luck in his endeavors.

Perhaps it's not so extraordinary since this is a company that has appointed two CEOs in two months' time. Tessera's non-executive chairman, Richard S. Hill, was appointed to the position on an interim basis on April 15 after the previous chief executive quit when his compensation package was changed. Hill was replaced on May 29 when the current interim CEO, Thomas Lacey, was appointed to the position. A search for a permanent CEO is still ongoing.

The new CFO was appointed to his position as controller and senior VP in December, having previously been controller and chief accounting officer at Corsair Components. He's also held finance and accounting roles for a number of other publicly traded technology companies, including Advanced Micro Devices, Xilinx, and Asyst Technologies. He was also formerly employed by Ernst & Young as a CPA. Allen holds a bachelor of arts degree in business economics from the University of California, Santa Barbara.

The article Tessera Tech Names an Interim CFO originally appeared on Fool.com.

Fool contributor Rich Duprey has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Equity Lifestyle Properties to Split Stock 2-for-1

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Real estate investment trust Equity Lifestyle Properties announced yesterday that it's splitting its stock 2-for-1 on July 15 for holders of record on July 5. 

Investors will receive an additional share for each share they own on the record date. The stock split will increase the total number of outstanding shares of the REIT's common stock and operating partnership units from approximately 41.7 million and 3.7 million to approximately 83.4 million and 7.4 million, respectively.

The market price of each share will adjust to the split and individual investors will end up owning roughly the same dollar amount of stock after the split as they owned before it.


Equity Lifestyle Properties owns and operates 383 lifestyle-oriented properties in 32 states and British Columbia consisting of 142,682 sites.

The article Equity Lifestyle Properties to Split Stock 2-for-1 originally appeared on Fool.com.

Fool contributor Rich Duprey has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Don't Count Coal Stocks Out Yet

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Why were investors so surprised that President Obama wanted to launch a "war on coal"? They were warned during his first presidential campaign that he wanted to bankrupt anyone that operated a coal-fired power plant so it's a given this administration has a deep-rooted animus against the industry.

Even so, coal stocks plummeted following Obama's speech with Peabody Energy  and Alpha Natural Resources  dropping 8% and Arch Coal  down more than 6%. Using an end-run around Congress to implement overreaching regulations through executive order are a worrisome possibility even if they'll have minimal impact on carbon emissions. Why? Because China doesn't care a whit about it and they'll continue burning coal regardless of presidential platitudes.

The U.S. coal industry can survive this latest assault because its production capabilities are already gearing toward supplying the Orient's insatiable demand for it. And while thermal coal largely been a small component of our exports, we're likely to see that expand. Further, nearly 70% of all metallurgical coal produced in the U.S. is exported overseas and it carries higher margins than does thermal coal.


According to BP's latest review of world energy, global oil consumption grew 0.9% in 2012 and natural gas rose 2.2%. Yet it was King Coal that led the way with a 2.5% rise in global consumption.

Admittedly, that's almost half the rate it was growing over its 10-year average, or 4.4%, but it shows that many countries, particularly China, still view this cheap, abundant resource as a key component of their economic development and growth.

Indeed, growing at a 6.1% clip, China was the biggest consumer of coal anywhere in the world, and for the first time ever accounted for more than half of the resources consumption. It is coal that allows developing economies to achieve growth while the U.S. hamstrings its efforts by placing impediments in the path to coal.

Consumption in the U.S. declined almost 12% in 2012, more than offsetting the gains realized in Europe and Japan and almost single-handedly causing the 4.4% drop in consumption in OECD countries.


Source: BP Statistical Review of World Energy, June 2013.

Now there are still risks inherent in the international trade. Goldman Sachs says the seaborne trade for coal may wane over the next few years because China's own production of coal has jumped at the same time its economy is slowing. Exports have slumped as a result and an inventory glut has grown in Asia. 

Although problematic, not everyone's convinced the China trade is doomed. Peabody, the largest private coal company, is looking for the seaborne trade for thermal coal to grow this year after total coal imports to China grew 30% in the first quarter to 80 million tons. India is also a major coal-consuming nation and imports rose 25% in the quarter allowing the subcontinent to surpass Japan as the second-largest thermal coal importer. 

While Peabody and Arch have largely abandoned the higher-cost Appalachia coal region, they've turned their sights to the Powder River Basin in Montana and Wyoming, where more coal can be exported. Arch's first-quarter sales in the Basin were down slightly sequentially as prices fell, but its cash margins per ton jumped 30%.

The Powder River Basin produces 500 million tons of coal annually, most of it for domestic consumption, but only because there's not enough of an export infrastructure in place to support it. While there had been six export terminals planned for the West Coast, after Kinder Morgan cancelled its plans for a terminal in northern Oregon, it marked the third one that had been cancelled.

These are hurdles the coal industry can surmount, even in the fog of battle. The International Energy Association says the world will burn around 1.2 billion more tons of coal per year by 2017 than it does today, equal to the coal Russia and the U.S. combined are currently consuming. It will almost surpass oil as the world's top energy source.That's a trend I'd still be willing to count on, even if the miners themselves are fighting with one hand tied behind their backs.

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

The article Don't Count Coal Stocks Out Yet originally appeared on Fool.com.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. It recommends and owns shares of Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Tremor Video Prices Initial Public Offering

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Tremor Video Prices Initial Public Offering

NEW YORK--(BUSINESS WIRE)-- Tremor Video, Inc. (NYS: TRMR) , a leading provider of technology-driven video advertising solutions, today announced the pricing of its initial public offering of 7,500,000 shares of common stock at a price to the public of $10.00 per share. The shares are expected to begin trading on NYSE under the ticker symbol "TRMR" on Thursday, June 27, 2013. In addition, Tremor Video has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares to cover over-allotments, if any.

Credit Suisse Securities (USA) LLC and Jefferies LLC serve as joint book-running managers for the offering. Canaccord Genuity Inc. and Oppenheimer & Co. Inc. are co-managers for the offering.


This offering is made only by means of a prospectus. A copy of the final prospectus related to the offering can be obtained from Credit Suisse Securities (USA) LLC, Prospectus Department, at Eleven Madison Avenue, Level 1B, New York, New York 10010, and by phone at (800) 221-1037 or by emailing newyork.prospectus@credit-suisse.com; or Jefferies LLC, Equity Syndicate Prospectus Department, at 520 Madison Avenue, 12th Floor, New York, NY, 10022, and by phone at (877) 547-6340 or by emailing Prospectus_Department@Jefferies.com.

A registration statement relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.



Public Relations Contact:
Tremor Video, Inc.
Sally O'Dowd, 646-278-7416
Sr. Director, Corporate Communications
sodowd@tremorvideo.com
or
Investor Relations Contact:
ICR, Inc.
Denise Garcia, 212-792-2315
IR@TremorVideo.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:

The article Tremor Video Prices Initial Public Offering originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Why Are So Many Companies Incorporated in Delaware?

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You can find the words "A Delaware Company" on the first page of SEC filings from many companies. Perhaps you skip over the boring format pages in the beginning. Maybe you just accept it because it's always been that way. But after noticing that a company I follow closely was listed as a Delaware company -- despite being headquartered 3,000 miles away in San Francisco -- I had to ask, "Why are so many companies incorporated in Delaware?"

One reason is obvious. Companies from all sectors of the economy -- Halliburton , Wal-Mart, Google , and Coca-Cola -- have flocked to the state for the coveted Delaware Loophole, which allows companies to shift royalties and revenues to holding companies in the state to avoid paying taxes in other states. It may sound like a good time, but there is a growing chorus of international governments speaking out about the shadowy tax-haven of Delaware. It is certainly a big problem -- almost 1 million corporations call Delaware "home" -- but it actually isn't the only reason to incorporate in the state.

Find out more in the following video.


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The article Why Are So Many Companies Incorporated in Delaware? originally appeared on Fool.com.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio or his CAPS page, or follow him on Twitter, @BlacknGoldFool, to keep up with his writing on energy, bioprocessing, and biotechnology. The Motley Fool recommends Coca-Cola, Google, and Halliburton and owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Why Tesla's Battery-Swap Machine Will Boost Profits

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Last week, Tesla Motors showed off an innovation that can only be described as "cool": a system that swaps out the battery pack of the Model S and installs a new one -- in just seconds.

Tesla plans to roll this system out to its busiest recharging stations, to offer Model S owners an option to "refuel" quickly. But as Fool.com contributor John Rosevear explains in this video, Tesla isn't just doing it for the cool factor -- there are a couple of good reasons to think that this will boost Tesla's profits.

Tesla's plan to disrupt the global auto business has yielded spectacular results. But giant competitors are already moving to disrupt Tesla. Will the company be able to fend them off? The Motley Fool answers this question and more in our most in-depth Tesla research available. Get instant access by clicking here now.


The article Why Tesla's Battery-Swap Machine Will Boost Profits originally appeared on Fool.com.

Fool contributor John Rosevear has no position in any stocks mentioned. Follow him on Twitter at @jrosevear. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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What Ford's 2015 Mustang Could Look Like

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Ford's Mustang has been a hit with muscle car fanatics over the decades and has appeared in thousands of movies, television shows, and games. For that reason we shouldn't be surprised that Ford will be making a splash for the Mustang's 50th birthday next April -- including being a hero car in a Need for Speed movie. Its birthday also coincides with what is shaping up to be the most important redesign in the Mustang's history.

At a time when Ford is going global with its vehicle lineup, the Mustang doesn't attract consumers outside the U.S. -- forcing a drastic and historic design change. Will the redesign be enough to save the iconic muscle car, or will it be the cause of its ultimate demise?


An artist rendering of a 2015 Ford Mustang. Courtesy of TopSpeed.


Our friends over at TopSpeed just released a rendering of what the 2015 could look like based on some spy photos. Chances are that the designers at Ford will make it more aggressive to attract the younger crowd. This is one of the freshest renderings out there and could be close to what the modern Mustang will look like. It's also possible Ford's designers will go more aggressive on the front end, as pictured here

When the redesigned Mustang is finally revealed -- Ford has kept its new look very secretive -- it will be a night-and-day difference from the retro style we see today. Ford is targeting a different and younger Generation-Y consumer, as well as a fuel-conscious international consumer, and is said to based on the Evos concept vehicle.

Many Mustang owners have expressed their displeasure after viewing the Evos concept, but Ford has been delivering hit after hit with its vehicle designs based on the concept in recent years -- this should be no different. Ford needs the 2015 redesign to hit its mark and revive the slipping Mustang sales.


2013 is projected from sales through May. Information from Automotive News DataCenter.

2015 Mustang specs
Fans of the front-engine, rear-wheel-drive layout have nothing to fear, as that will remain. Die-hard mustang enthusiasts will cheer as they have long awaited to see the Mustang get its independent rear suspension, which the Camaro and Challenger already have.

What's intriguing about the redesigned pony car will be its engine options. Ford's EcoBoost engines have been selling extremely well in other models and according to Car and Driver, a 2.4-liter turbocharged four-cylinder will also be available in the U.S. for the younger consumers who are more interested in fuel efficiency than in raw horsepower. That sound you just heard was Mustang enthusiasts throwing their keyboards out the window at the idea of a Mustang with an EcoBoost engine. 

Fortunately for those who just lost their keyboards, they'll be happy to know the standard 3.7 liter V-6 and 5.0 liter V-8 will of course still be available for us power-hungry consumers. For the Mustang to gain global popularity and rebound from years of declining sales, as well it should, the EcoBoost will be absolutely key to selling in Europe and China. 

Bottom line
You saw the sales decline the Mustang has suffered through, and this redesign will be make-or-break for the iconic muscle car's future. General Motors' Chevy Camaro has outsold the Mustang the past three years and is on pace to continue that trend in 2013. Last year the Mustang sold just under 83,000 models, which was only the eighth best model in Ford's lineup. Its sales haven't broken 100,000 vehicles since 2007, and the trend isn't going to reverse unless the new design retains die-hard fans and attracts younger consumers.

Its next-generation Mustang is an even bigger deal for Ford and its investors, because it represents more to the company than just 83,000 in sales. It's a halo vehicle, an iconic car for Ford's brand image and advertisement in the media. When consumers think of getting the most muscle for their buck, the Mustang comes to mind immediately.

The Mustang driver in me cringes at the idea of what the redesigned muscle car would look like to sell overseas, as Ford is planning. As an investor, I cringe at the idea that Ford could flop with its design and alienate its die-hard fans in the U.S., as well as swinging and missing with global ambitions. The risk and reward are huge, and if Ford can make this new style a hit here in the U.S. as well as in Europe and China, we could be witnessing the rebirth of the Mustang into one of Ford's most popular and profitable vehicles.

One thing is for sure: The Mustang's 50th birthday is going to be one heck of a show. I expect the new design to be unveiled then, and I can't wait to officially see it. Ford designers, consumers, and investors are all hoping it's a smash hit -- and with Ford's track record recently, I bet it will be.

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The article What Ford's 2015 Mustang Could Look Like originally appeared on Fool.com.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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