William Shatner Wants $30 Billion for Water; Harley-Davidson’s Wall Street Hits and Misses; Under Armour Needs to Bulk Up Projections

Rain rain don’t go away…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Leave it to Star Trek legend William Shatner to take California’s drought emergency straight to Kickstarter. The 84 year old actor and Priceline shiller wants people to beam him up some cash – $30 billion’s worth, to be exact – so that a  four foot above ground pipeline can be built from Seattle to Nevada’s Lake Mead. The fact that Seattle doesn’t have a surplus of water to really be giving out to California, which is in its fourth year of drought, doesn’t seem to bother Shatner much. I’m guessing he didn’t ask officials in Seattle their thoughts on the idea. California Governor Jerry Brown has already issued a drought emergency and apparently there is about a year’s supply of water left. Mr. Shatner isn’t entirely convinced himself that he can even raise the $30 billion needed to build the pipeline but he is hoping to raise awareness on the issue. “If I don’t make 30 billion, I’ll give the money to a politician who says, ‘I’ll build it.’ I don’t think that last part is the best idea Mr. Shatner has ever had, but its sure to get a few people talking.

Not so hog wild…

Image courtesy of dan/FreeDigitalPhotos.net

Image courtesy of dan/FreeDigitalPhotos.net

Profits for iconic Hog maker, Harley Davidson, are up thanks to a somewhat reduced tax rate. So why the sad faces on Wall Street over the price of its shares? Because those very shares took a 6% hit today over revenue that fell 3.4% to $1.51 billion, down from $1.57 billion a year ago. The bike makers also revised forecasts that have less bikers getting on those legendary two-wheeled machines. Harley-Davidson initially expected to deliver between 282,000 – 287,000 Hogs this year. But now that range is looking closer to 276,000 – 281,000 orders. Some of that, of course, can be attributed to that annoyingly strong U.S. dollar that seems to be sucking the fun from just about every company’s earnings these days. But Harley-Davidson has also had to deal with competitors  – hard to believe that anyone can compete with a Harley – who have been offering better discounts and totally messing with the motorcycle company’s earnings. The good news is that the motorcycle brand still took in $270 million and $1.27 per share, even though analysts only expected $1.24 per share. Can someone please get those analysts on a Harley? A year ago the Hogs pulled in about $265 million at $1.21 per share.

Dude, what gives?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Under Armour came out with earnings today and informed those that matter that it hit its revenue targets and raised its outlook. The Maryland-based athletic company even has PGA Masters Winner Jordan Spieth shilling for it. Under Armour also pulled in 5 cents per share on revenues of $805 million when analysts only called for $802.5 million. The apparel division grew 21% while the footwear division grew 41%. So why are investors still not satisfied with the athletic apparel company’s earnings? Here’s where things get dicey. Even though Under Armour raised its outlook for revenues from $3.76 billion to $3.78 billion, investors, analysts and others who throw large sums of money at the company expected higher projections of $3.82 billion in revenues. That $.o4 billion difference put a damper on the morning for many investors. Hence the stock took a bit of a hit this morning. Nothing major, just a few percentage points, but enough to put several Wall Street-ers in a bit of a snit.

Anthem Hits a Sour Note With Major Cyber Attack; Under Armour’s Over the Moon Ratings; Sony Executive Amy Pascal Down But Not Out

Cyber-sickening…

Image courtesy of chanpipat/FreeDigitalPhotos.net

Image courtesy of chanpipat/FreeDigitalPhotos.net

Anthem now joins the illustrious list of major companies to get cyber-hacked, although the health insurance company has yet to definitively say how many of its 80 million current and former customers are affected. It can definitively be said that all sorts of personal information was taken, including social security numbers, names, birthdays, employment data etc. – the kinds of details that can facilitate a very rude and inconvenient identity theft. Anthem says no credit card information was taken. Just everything else of significance. Customers can expect to be notified if they haven’t already been, and in keeping with corporate-cyber-attack tradition, affected customers will also get free credit monitoring and identity protection.  Anthem, which just happens to be the second largest health insurance company, with Anthem Blue Cross, Anthem Blue Shield, Amerigroup and Healthlink under its wings, just might earn itself the uncoveted distinction of having suffered the largest data breach in the health care industry. Ever. However, it’s still looking to sign up new customers for that pesky February 15 Obamacare deadline. Naturally the Feds are involved and if it’s suspected that information was stolen, the FBI has graciously established the Internet Crime Complaint Center website: www.ic3.gov. Anthem also wanted everyone to know that the data of its associates was also breached if that’s at all reassuring, though I don’t know why it would be. Now go and change your passwords!

Bringing it on…

Image courtesy of iosphere/FreeDigitalPhotos.net

Image courtesy of iosphere/FreeDigitalPhotos.net

Don’t you just love a good athletic apparel smackdown? Today’s  smackdown is brought to you by Under Armour and its CEO Kevin Plank, who not so graciously told Nike and Adidas to get used to being number two during a CNBC interview. Charming, right? But after posting some boffo earnings that boasted 31% revenue growth to $895 million, I guess he earned the right to say that. Except that Under Armour is, in fact, currently the number two fitness apparel maker, behind Nike. Just saying. In any case, CEO Kevin Plank’s numbers were no accident. The company’s profits were up 37% to $88 million coming out to $0.40 per share. That, my virtual pals, was one cent more than what analysts predicted. Plank’s fiscal logic for Under Armour is pure fitness genius: The more people exercise, the more exercise apparel they’ll need. To add to its fitness arsenal, Under Armour picked up not one, but two calorie-counting, fitness-tracking apps: MyFitnessPal for the very robust price of $475 million and Denmark-based Endomondo, for a cool $85 million. MyFitnessPal currently has 80 million users with Endomondo coming in at 20 million users, mostly in Europe, and with those two acquisitions under its svelte belt, Under Armour hopes to become “the world’s largest digital health and fitness community.” How nifty.

Hack Attack Comeback…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Sony Pictures Entertainment studio head Amy Pascal may be stepping down from her cushy spot at the top, but she’s not out of the picture. The executive, whose emails figured prominently in the Sony hack attack in December, if only because she made some racist comments about President Obama and called Angelina Jolie a spoiled brat (though she did say sorry), will now get a four year production deal with Sony.  While it’s safe to assume she won’t be working with Jolie, or Adam Sandler, or the President for that matter, she will get distribution rights to the the films she does. Not bad for someone who put her foot in her mouth, via email, subsequently earning herself some of the biggest A-list enemies imaginable. The movie “The Interview,” starring the cuddly duo of Seth Rogen and James Franco, was allegedly the source for all the hacking misery, as it poked fun at North Korean dictator Kim Jong Un. The scandal cost Sony $15 million which coincidentally is the same amount of money the “The Interview” made from 2 million digital downloads – in its first few days of its release.

Wall Street Is Sour On Lulu, Phil Mickelson In the Clear and Sale Away

Namistakes…

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Shares of Lululemon (LULU) went sour today after the company announced its quarterly earnings. While the athletic apparel company barely beat Wall Street’s predictions by $0.02 a share, its profits fell to a very un-zen $19 million from over $47 million a year ago. Its see-through yoga pants debacle certainly helped bring in those awful numbers. But it wouldn’t be right not to mention and wonder if some of these earnings come courtesy of Lululemon’s founder (no longer, chairman) and biggest shareholder Chip Wilson. Wilson idiotically remarked that heavy – and even not so heavy women – should steer clear of his company’s merchandise. An ignorant statement like that – see-through yoga pants or not – ought to help destroy a company’s earnings. Besides that, the company is staring at some fierce competition from Gap’s Athleta brand and Under Armour. Shares of the company went downward dog by 35% in the past twelve months.

SEC no longer teed off at Phil?

Image courtesy of Naypong/FreeDigitalPhotos.net

Image courtesy of Naypong/FreeDigitalPhotos.net

Pro-golfer Phil Mickelson is happily teeing off now that SEC is pulling back from its investigation into whether he might have been involved in insider trading. Apparently the eleventh ranked golfer in the world wasn’t buying Clorox, shares of it that is, while billionaire Carl Icahn was planning to buy the company. However, the Feds are still curious about some “well-timed trades” by Mickelson and his buddy, pro-gambler Billy Walters back in 2012. While Phil Mickelson scored a million bucks on those trades, Walters allegedly notched a whopping $15 million on shares of Dean Foods.

Where o’ where does the economy stand?

Image courtesy of jscreationzs/FreeDigitalPhotos.net

Image courtesy of jscreationzs/FreeDigitalPhotos.net

The economy once again is toying with our emotions as it continues to pull in numbers with very mixed messages. The good news is that retail increased. The bad news is that it didn’t increase enough gaining only by 0.3% instead of the 0.6% predicted (and hoped for) by some supremely intelligent economists. Then there’s our fickle little job market. The good news: In May we say 217,000 jobs added. It’s been five years since the country has seen monthly job growth of over 200,000 per month. Yippee, right? No because the bad news: The number of people filing for unemployment went up to 317,000 last week. However, that number is still less than the yearly average so a slight yippee can be uttered. Then there’s the issue of wage growth. The issue being that wages aren’t doing that much growing.