Intel’s Feeling “Chipper”; Hey Big Spender…Where Have You Gone?; BlackBerry: Buh-Bye Seacrest

Just because you don’t care, doesn’t mean it doesn’t affect you…

Image courtesy of phasinphoto/FreeDigitalPhotos.net

Image courtesy of phasinphoto/FreeDigitalPhotos.net

There’s some big juicy merger news coming down the fiscal/tech pipeline. Intel announced it’s plunking down $16.7 billion for fellow chipmaker, Altera. In case you were wondering – because I know you were, that comes out to $54 per share. Last year Altera pulled down revenues of close to $2 billion. So it stands to reason that Intel knows what it’s doing. It should be duly noted, my dear reader, that these are not just any personal computer chips we’re talking about either, but rather, programmable chips that can be used in smart cars, clothes and other everyday use items. Pretty rad, huh? Of course, like any multi-gazillion dollar deal, regulatory approval is still needed and shareholders also need to give their thumbs up. But at least Wall Street seems to be showing its enthusiasm in its own special fiscal way.

Spendthrift?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

April was a wash and I am not talking showers here. According to the Commerce Department, there was no rise in spending for April. Nor was there any decrease  – which I guess is a positive too. Consumer spending flat-lined and gave us the worst showing in three months. Gee, thanks April. While personal income was up a whopping 0.4%, Americans are choosing to save save save all that cash that they didn’t have to shell out for gas lately, much to the chagrin of economists who were certain Americans would be whipping out their wallets and just buy buy buy. Wages also didn’t increase that much which definitely helped spoil some much-needed spending fun. In fact, the personal savings rate (yes, that is a real thing) jumped to 5.6%, the highest rate since December of 2012. Burned by that awful fiscal nightmare of 2008, would-be consumers are discovering the joys of saving, in addition to paying down the odious burden of debt. Economists are expecting – and very much hoping (because it would be embarrassing for them if they were wrong) – that spending will pick up in the coming months and put some much needed oomph back into the economy, since spending does account for 70% of it. Here’s hoping they get it right.

So random…

Image courtesy of adamr/FreeDigitalPhotos.net

Image courtesy of adamr/FreeDigitalPhotos.net

Remember BlackBerry? Not the fruit but the device? Just admit it that you had one right before you unceremoniously ditched it for a first generation iPhone. Well the once-beloved device actually kicked the iPhone’s tush today. And Ryan Seacrest’s tush too. Sort of. The company, whose products are still quite the rage in other parts of the world, finally settled some “outstanding legal disputes” with a company called Typo Products, which happens to be backed by everyone’s favorite karaoke host, Ryan Seacrest. Typo was making iPhone cases with a QWERTY keyboard that bore a striking resemblance to a BlackBerry design. Talk about “F” for lack of creativity. In any (iPhone) case, Typo ponied up some settlement cash, tweaked the design and presumably found a way to, as they say on American Idol, make it their own.

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Is it Formally Formaldehyde From Lumber Liquidators; Adidas Who? Carrie Underwood Kicking the Right Game for Dick’s; Best Buy’s Electricfying Earnings

Wood you mind?

Image courtesy of scottchan/FreeDigitalPhotos.net

Image courtesy of scottchan/FreeDigitalPhotos.net

Just a day after a scathing “60 Minutes” report that accused Lumber Liquidators of selling products containing excessively high amounts of formaldehyde, the stock rallied today. Just not as much as the 25% hit it took yesterday. The company stands accused, by “60 Minutes” anyway, of selling Chinese-made flooring containing formaldehyde at much higher levels than what is acceptable and, for that matter, legal. The company, however, said the claims are “overblown” and went on to cast doubt on the “60 Minutes” report, pointing out that no victims were “highlighted,” no feedback was provided from regulators and the piece “relied on anonymous Chinese factory workers making accusatory statements.” Hence, analysts were able to send the stock rallying today. Lumber Liquidators has 318 stores in the U.S. and Canada. Incidentally (or not), the Department of Justice may also be filing criminal charges against the company for violating import laws.  Naturally, Lumber Liquidators said, “We stand by every single plank of wood and laminate we sell around the country.” Aw. Now if we could just know for sure if those planks are gonna kill us or not.

Losing your stripes…

Image courtesy of woravit.w/FreeDigitalPhotos.net

Image courtesy of woravit.w/FreeDigitalPhotos.net

Some big changes are in store for Dick’s Sporting Goods come Thursday and they’ve got Carrie Underwood’s name written all over them. Literally. The American Idol winner and country music superstar is launching her very own “athleisure” brand, “Calia by Carrie Underwood.” And yes, “athleisure” is a real thing. However, in order to give the athletic apparel line the attention it deserves, Dick’s will be chucking its Adidas and Reebok lines (remember that one? Adidas owns it). While sales of women’s athletic apparel has been outpacing men’s, Adidas’ sales have been taking a big hit in the United States for some time now. People just aren’t digging the brand’s traditional looks that it keeps churning out. So goodbye Adidas. Hello Carrie! Or Calia!

Take that Amazon!

Image courtesy of patrisyu/FreeDigitalPhotos.net

Image courtesy of patrisyu/FreeDigitalPhotos.net

Best Buy had a rockin’ good quarter thanks to people shelling out tons of money for big screen televisions and mobile phones. The electronics retailer reported its overall fourth quarter revenue was up 1.3% to $14.2 billion. Analysts were actually expecting $14.34 billion but for that minor failing we look no further than the strong U.S. dollar and some store closures in Canada (almost makes you think of Target, doesnt it?).  So why exactly was it rockin’? The company picked up a 77%  profit increase at $1.47 per share when analysts only expected a $1.35 gain per share. Even better, shareholders get to rake in a 51 cent per share dividend some time in April.  In case you were wondering where that mysterious “installation” charge on your bill came from, well, just take a look at Best Buy’s 3.2% revenue increase in the U.S. alone, not to mention its $519 million profit and voila – your phone bill financed Best Buy’s impressive digits by spreading out your mobile payments. Clearly, Best Buy didn’t have this lucrative little plan in place last year as it only pulled in $293 million. But hey, at least you get an upgrade soon, right?