Investing For Growth
Investing For Growth
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FOOL GLOBAL WIRE LEXINGTON, Kentucky (December 6) -- This must be a week for turbulence! First an airline flight from Dallas to Salt Lake City hit such a rough patch that seventeen people were injured, and now the market hits a down-draft and bounce-back that probably spilled more than a few cups of coffee around the nation today. Almost immediately after the market opened, the Nasdaq Composite was trading off more than 40 points (the equivalent of roughly 200 Dow points). But it turns out that this morning would have been a great time to buy as the markets spent the rest of the day recovering the lion's share of the early plunge. For my take on the wicked reaction to Alan Greenspan's comments, check out my Foolish Four report tonight. On to company news. In the move to bring Coke to everyone, Britain's Inchcape Plc will invest more than $30 million to build a factory to produce Coca-Cola in Yekaterinburg (in the Urals). Construction is expected to be over by the end of next year and the plant should be sufficient to supply all of Yekaterinburg and the surrounding environs. Never heard of the place? It's one of Russia's six largest cities! Both Coca-Cola and Pepsico <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:PEP)") else Response.Write("(NYSE:PEP)") end if %> are investing heavily in Russia and other former Soviet states. Yesterday, Lehman Brothers reiterated its buy rating on telecom equipment maker ADC Telecom. "We believe that ADC continues to experience extremely robust demand across a broad range of businesses in broadband connectivity, transmission and data networking," analyst Tim Luke wrote. "Following conversations with management, we consider that the company remains on track to secure several significant hybrid fiber coax (HFC) contracts over the next several weeks and that ADC may be able to formally announce at least one of these contracts within the next 10-15 days." Lehman's 12-month target price is $40 and their 1998 earnings estimate is $1.18 a share. Today, ADC itself estimated that fourth-quarter revenue will reach $254 million (an increase of more than 46% over last year's fourth quarter). ADC estimated its revenue for the full year will be $827 million, a 41% improvement over the $586 million it recorded in fiscal 1995. In fiscal 1995, the company earned $55.2 million, or 94 cents a share, after a $4 million charge. About $32 million of its fourth-quarter revenue and $68 million in full-year revenue came from companies acquired during fiscal 1996.
Also yesterday, Claire's Stores reported sales for the four weeks ended November 30 of $36.22 million, 32% percent higher than the four weeks ended November 25 of last year. Although same-store sales were off 3% for the four-week period, the company believes this is attributable to the different reporting schedule and not because of any real decline in sales momentum.
And finally, the new Classic Investing for Growth rankings are posted for the coming week. No changes to the ten stocks save for Nike and Green Tree playing musical chairs again for top billing. Check in with us this weekend to get all the updates to the monthly screens. |
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