Kraft Paves APath

Kraft Foods (NYSE:KFT) third quarter earnings followed a somewhat similar pattern to that of Procter and Gamble (NYSE:PG) and Kellogg (NYSE:K), which were announced a week prior. Kraft reported profits of 55 cents a share, compared to 91 cents per share a year earlier. Sales were down by 6%, mainly as a result of a stronger dollar affecting Kraft's overseas profits. IN PICTURES: 20 Tools For Building Up Your PortfolioBrighter Days AheadSimilar to P&G and Kellogg, Kraft exceeded analysts expectations, which were estimating 48 cents a share. If anything, this surprise should reiterate the notion that analysts don't often get right, especially when markets are at extremes, with estimates coming in low during weak times and high during periods of optimism. Analysts, after all, are humans as well. Kraft also increased its full year guidance to nearly $2 a share.That forecast would imply that Kraft, currently trading near $27, is trading for about 13.5-times this years profits. For a business of this quality, that's a very attractive price. The price becomes even more attractive when y...
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Drugstore Cowboy Shot Down

CVS Caremark Slammed on Contract Losses Shares of CVS Caremark are down 20% Thursday, following the company's third-quarter earnings release in which the company said its pharmacy benefits management unit lost $2 billion in business over the last few months.Management revealed during the earnings call that profits at Caremark could drop as much as 10% or 12%. The latest contract losses include $1.7 billion in business for "dual eligible" people who can receive both Medicare and Medicaid benefits. This follows lost contracts in New Jersey state Blue Cross plan and Ohio's managed Medicare business. Looking for the best dividend-paying stocks? Click here to try Dividend.com Premium free for 14 days for new buy and sell recommendations. The company can take solace in that it's revenue from its drugstores rose 17.9%, with sales at stores open at least a year rising 5.7%. The Bottom Line We removed shares of CVS from our "recommended" list Thursday on the company's poor performance and disappointing news regarding its PBM business. The company has a dividend yield of 0.83%, based on Wednesday's stock price of $36.15CVS Caremark is not recommended at this time, holding a Dividend.com rating of 3.3 out of five stars. Beat Stocks with Fat Yields & Less Volatility: Richard Lehmann's "medium risk" fixed-income portfolio is up 38% year-to-date and it yields 9.2%. Click here for bonds, preferreds, convertibles, closed-end funds--and income trusts like Providence Energy (PVX) y...
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Firm Up The Team Unity

Should you keep your business strategy secret, even from employees? Some top marketers invite the entire firm into the huddle. How to build a top-flight game plan: Open the book. At data center tech firm Egenera, any employee can read the marketing playbook by clicking on an online calendar. Chief Marketing Officer Christine Crandell says making marketing transparent eliminates the Monday-morning quarterbacking that goes on in organizations. "It removed a lot of the questions," she told IBD. Instead of asking how money is being spent, employees offer more constructive input. "The conversation changed within the company," Crandell said. "They started asking the right kinds of questions." Keep it safe. Persuading marketing staffers to put their work on the companywide chalkboard isn't easy. "For a lot of people it feels like an unnatural act," Crandell said. She calms fears by telling her people that being public doesn't mean being perfect. "It has to be OK if there's experiential failure," she said. "It's OK to share, and it's OK if stuff doesn't work."Welcome the walk-on. Crandell noticed that salespeople weren't taking marketing-generated leads and running with them, so she placed top salespeople on marketing committees for six-month rotations.The hands-on experience has an impact on those rookies."What happens is they start to evangelize" about what marketing can do for sales, Crandell said.Respect the divisions. Getting an entire organization behind a marketing leader can be tough. Some departments want more attention. Others want to work out their own plays. "Spanning Silos" author David Aaker says many CMOs push too hard for a cohesive approach. "They typically move too aggressively and the silos push back," he told IBD. Using a lighter touch shows that you respect the differences ins...
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Heinz Is Worth A Look Ahead Of Earnings

America's interest in backyard barbecuing and tailgating at sporting games are two reasons why I am bullish on Heinz (NYSE:HNZ). Actually, I think that the potential demand for its products around the world can be very big going forward. And perhaps not surprisingly, I'm interested in the stock as well. IN PICTURES: 20 Tools For Building Up Your Portfolio Why Heinz Can Still CookDrilling down into its stock looks like Heinz is worth a nibble. For example, right now Heinz is flirting with its 52-week high, and while I am no chartist, if the company makes a new high, it will grab a lot of attention in the press and among analysts. It's also hard to ignore that the company has been able to dish out some nice earnings-per-share beats. A quick look reveals Heinz has zipped past estimates in a healthy way in three of the past four quarters, which certainly grabs my attention. Upcoming EarningsAnd speaking of earnings, the company is expected to release its second-quarter results later this month. As of now, the estimate for the period is 70 cents, but I think Heinz will beat that number. If my speculation is right, it may draw people and possibly analysts into the stock. Heinz's long-standing history, its recent ability to deliver earnings, the possibility that it can hit a new 52-week high and my feel that another earnings beat could ha...
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Lightning Round: CVS Caremark, Devon Energy, Tyson Foods and More

Chesapeake Energy [CHK  Loading...      ()   ]: Don’t buy, Cramer said. Chesapeake carries too much debt. He’d rather see investors in Devon Energy ...
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