In today's wrap up we highlight the prospects for SunPower's
(NASDAQ:SPWRA) commercial and residential components business. We
also take a look at Sprint's (NYSE:S) plans to navigate the
consolidation in the US telecom market.
) posted results recently and highlighted its plans to improve
profit margins and refocus its N. America business.
(NYSE:MCD) sees food prices increasing by 4-4.5% in the US and
Europe and said it will take a hit on gross margins to keep its
growth intact. Finally, we launch coverage on RadioShack (
) with a price estimate of $18.30 and we look at the contribution
of mobile electronics that contributes around 50% of its stock
SunPower Could Triple Commercial & Residential
Components Sale by 2015
SunPower (NASDAQ:SPWRA) boasts of being able to manufacture the
most efficient large-scale solar modules in the solar power
industry. Starting off as a producer of solar power products
for installation on residential and commercial units,
SunPower has been able to foray into large-scale utility power
projects with its acquisition of PowerLight Corporation. But we
believe that the residential & commercial components business
will continue to be the biggest source of value for the company -
almost 43% of the
$16.22 price estimate we maintain for SunPower's
. And this is because of the exponential growth expected in the
company's shipments of components for residential & commercial
use. SunPower's primary competitors include First Solar (
), SuntechPower (NYSE:STP), and Yingli Green Energy Holding
Sprint Looks to Shake Up the Big Guys
In March, we wrote an article examining the impact
of AT&T (NYSE:T) and T-Mobile's merger on Sprint
(NYSE:S). We noted that, apart from pushing for 4G, Sprint could do
well to distinguish its services through new and powerful marketing
campaigns. It looks like that company has now done just that. Below
we discuss what Sprint is doing and the potential impact on its
stock value. Apart from AT&T and T-Mobile, the other big
competitor for Sprint is Verizon (NYSE:VZ).
Pedal to the Metal for GM's Stock if Margins Kick Into
) reported solid 2011 Q1 net income a few weeks back. While the
company's revenues increased 15% year-on-year, its adjusted-EBIT
improved almost 18%. We believe that continued improvement in GM's
operating profits can add significant upside to its stock value.
The company competes with other global automakers
like Ford (
), Daimler AG (NYSE:DAI), Honda (NYSE:HMC), Toyota
(NYSE:TM), Hyundai (SEO:005380) and Nissan (
Higher Food Costs Will Pressure Profit Margins at
McDonald's (NYSE:MCD) expects food costs to rise between 4 and
4.5 percent in the United States and Europe this year, a situation
that would put pressure on the company's profit margins. McDonald's
is the market leader in the fast food market with about 19% share.
It competes with Wendy's (WEN), Subway, Burger King, and Yum!
Brands (NYSE:YUM). In the specialty coffee market, it competes
with Starbucks (NASDAQ:SBUX).
Coverage Launch on RadioShack - $18.30 Trefis Price
) sells consumer electronics goods and services through its
RadioShack chain of stores and competes with retailers like
Wal-Mart (NYSE:WMT), Target (TGT) and Best Buy (BBY). The
seven broad categories of products it sells are: wireless,
accessory, modern home, personal electronics, power, technical,
service and others. Of these, wireless is a major segment for
RadioShack and contributes approximately 48% to its net revenues.
The key to RadioShack's growth is whether it can maintain revenue
growth by optimizing its product mix based on consumer trends.