Sounds like an impressive offer, right? Well yeah, except that the rug costs $149,999.99. Chairman and CEO Patrick Byrne said that ""Of course you can't ignore the offer to ship the rug for $2.95 . That policy keeps our customers coming back and clearly, the person who buys this rug will enjoy great value."
Patrick: a lot of places would ship a $150 thousand rug for free. With shares of Overstock down about 5% as I write this, the press release doesn't seem to have captured the imagination of investors. It hasn't sold the rug either. If you're interested, you can buy the rug here.
For a look at Patrick Byrne's bizarre conspiracy theories, check out this item from Gary Weiss.
It's no secret that Talk Radio host extraordinaire Rush Limbaugh has revolutionized the alternative media. With his new contract, it appears that Rush is once again on the cutting edge of societal evolution, and has once again laid down the gauntlet that he is light years ahead of his competition. What's so amazing is that in an era when traditional media is having all kinds of problems, whether it's declining newspaper sales, or declining ratings for the nightly news, the man who sits behind the golden EIB microphone is forging ahead as if nothing is happening.
According to a press release, Limbaugh has signed a long-term contract extension:
Advertiser and affiliate demand is at an all-time high for Mr. Limbaugh. President of Premiere Radio Networks Charlie Rahilly stated, "The Rush Limbaugh Show enjoys an unprecedented platform of radio affiliates. Plus, advertisers harness the intensity of listener engagement -- no one's 'word of mouth' about a product or service delivers more impact than Mr. Limbaugh does. The Premiere team is proud to partner with Mr. Limbaugh deep into the next decade."
English rock band The Verve, famous for the hit single "Bitter Sweet Symphony" and the ensuing struggle over the rights to the song (eventually awarded to Mick Jagger and Keith Richards because the song sampled a short snippet of a Rolling Stone song), are set to return in August with a new album -- the band's first since 1997's Urban Hymns that featured that bitter sweet single. Billboard reported last week that the new album, titled Forth (Billboard cites it incorrectly as Four) will be released on August 18 in the United Kingdom and a day later in the United States.
While the band had not worked together in nine years before reuniting last year to commence work on new music and play a number of festivals, lead singer Richard Ashcroft had enjoyed a semi-successful solo career built on the success that the band had enjoyed in the nineties. He joined Coldplay onstage at Live 8 in 2005 to perform "Bitter Sweet Symphony" to an elated Chris Martin (lead singer of Coldplay) and cheering crowds. The first single from Forth, "Love is Noise", was premiered on British radio June 23 and will be released a couple of weeks before the album. It is currently streaming from the band's News Corp. (NYSE: NWS) MySpace page.
In the United Kingdom, The Verve are signed to EMI Group and will release Forth via Parlophone, but in the United States, a unique release scheme will be utilized, somewhat similar to Radiohead's deal in the U.S. for In Rainbows earlier this year. The band has set up a label, On Our Own, and will release the album through a distribution deal with RED Distribution and Megaforce Records. Previously, the band's albums had been released through EMI's Virgin Records imprint in the United States.
With all the negative financial news, it's nice to be able to find a small company filling a need and not going broke trying to do it. Gerber Scientific Inc. (NYSE: GRB) manufactures eyeglass lens equipment, and a variety of flexible materials, including Spandex, for a variety of uses. With the recent introduction of its Solara ion low temperature UV inkjet printer, Gerber Scientific has moved into manufacturing and printing on flexible materials suitable for large-scale outdoor advertising banners and signage. The move seems to be working. The company recently reported positive 4Q and FY 2008 results.
4Q 2008 net income increased 9% to $6.1 million or $0.26 per share on revenues of $173.7 million. FY 2008 net income increased to $14.5 million or $0.61 per share on revenues of $640 million. These numbers were high enough for investors to bid up the stock 5% to close at just under $12. The stock's 52 week high is $12.64. Gerber Scientific CEO Marc Giles believes that FY 2009 numbers will be even better. The company is looking for big growth in its Spandex distribution business, particularly in Asian markets. Also, Giles expects many businesses to take advantage of additional outdoor advertising possibilities with the new Solara ion printer system.
General Mills (NYSE: GIS), arch competitor of fellow cereal seller Kellogg (NYSE: K), posted some good news for shareholders on Monday. In an otherwise gloomy day that saw the Dow remain below the 12,000 level and inflationary pressures still exerting a hold over the market, General Mills proved that dividends are at least one island of safety in a sea of trouble.
The company indicated that it will now pay an annual dividend of $1.72 per share. Previously, the annual dividend was set at $1.57 per share. This is a nice example of double-digit appreciation of approximately 10%. Based on Monday's closing price, General Mills' stock now yields a hearty 2.7%.
As a long-term idea, General Mills is certainly one of the best. As I observed with Kellogg, you can put this one on perpetual dollar-cost-averaging. However, with the stock in 52-week-high territory, and with prices for commodities, especially corn, still exerting a negative effect on businesses, I'd be a bit cautious about entering just now. Is it possible one might get General Mills closer to a 3% yield? I can't predict the short-term future, but my gut says that a pullback is inevitable. Even with cool dividend increases, stocks can return to the low end of a 52-week range at any point. Just look at Coca-Cola (NYSE: KO) and the recent pressure its stock has been under. And Coke is a dividend stalwart. Nevertheless, I am bullish on General Mills' future. Just watch out for commodity trends, and perhaps remain patient for better prices on the shares.
Disclosure: I own Coke; positions can change at any time.
British band Oasis have reportedly signed a new record deal with Sony BMG Music Entertainment via the band's own record label Big Brother Recordings. Big Brother will release the band's new material while Sony BMG, a joint venture of Sony (NYSE: SNE) and Germany's Bertlesmann Media Group, handles distribution of the new album and the band's back catalog in all markets, and the two companies will share profits. Music newspaper NME additionally reports that all signs indicate the first album as part of the new arrangement will be released this fall.
The band has been associated with Sony BMG in some form or another since its first album was released in 1994. Creation Records, the band's first label in the United Kingdom, handled distribution and release there, while Sony handled the same duties in other markets, including the United States. When Creation folded in the late 90s and Big Brother was set up, the same arrangement was kept. The band's last album of new material was released in the U.S. by Sony BMG's Epic Records, while the band's final album under the old contract, a "best of" compilation, was released by Columbia Records.
Oasis' management reported that the band is excited about the deal and the prospects that it gives the band in "building on the band's already considerable international success." The band's management reported that the new deal "allows the band to take advantage of all the opportunities presented by the new business models available today as well as remaining totally in control of their own destiny." Other band's at the same level of international success as Oasis, like Radiohead or Nine Inch Nails, have pursued different business methods than more traditional record labels.
Industrial progressive rock band Nine Inch Nails' most recent album The Slip will be available in physical formats on July 22, Billboard reported Wednesday. First reported on May 5, the album is the band's third album in a little over a year and the second since leaving music company Universal Music Group. Unlike other physical releases though, a CD version will be limited to 200,000 copies in the United States, Canada and Japan, while a later vinyl version will be unlimited. Band leader Trent Reznor also told Billboard the album "will remain free to download 'indefinitely' from the band's site."
The availability of a vinyl copy of The Slip versus that of the CD version mirrors similar sentiments that I commented about yesterday. Music company EMI packaged the vinyl version of Coldplay's Viva la Vida or Death and All His Friends with a CD version, indicating that despite vinyl's allure, the industry is aware that listeners want versions that can be transferred to portable devices.
NIN leader Trent Reznor was obviously aware of this desire from his fans, since the album will feature an unlimited release for the vinyl version. It could also indicate his own preference, which would not be surprising. Either way, when The Slip is released physically, consumers and listeners will still have the option to download the album for free if they decide to buy a physical copy, whether it's the limited CD or the unlimited vinyl. Numerous formats may seem tedious, but if the experience is part of the joy of listening to music then it is being accommodated.
Checking on one of my big calls of the year:Newcastle Investments (NYSE: NCT), which is down significantly so far through mid June, it is nice to see that a dividend will be paid for this past quarter of $0.25 per share. This amounts to a current yield of over 12%.
Some would say it was to good to be true as the stock price drifted downward and the dividend was cut. I maintain that this is just a waiting game until the real estate market migrates back to a more sure footing while you collect a healthy dividend.
Most advisers would remind investors not to try and catch a falling knife and I would agree, but at some point there is real value and I have taken several "stabs" at this one trying to dollar cost average while a I wait.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of NCT.
PepsiCo (NYSE: PEP), major rival of Coca-Cola (NYSE: KO), is letting the investing world know that it's doing fine. In one of the shortest press releases I've ever read, management at the beverage maker let shareholders in on the fact that it intends to reiterate guidance at The Deutsche Bank Global Consumer and Food Retail Conference that takes place next week in Paris. PepsiCo believes it's still good for $3.72 per share in earnings for the fiscal year.
When the world seems to be heading for the dark pits of economic hell, it's nice to know that PepsiCo expects to be able to stay the course and deliver on an earlier forecast. After all, with all this talk of inflation, one would have to wonder how companies like PepsiCo and Coke can possibly remain stable given the difficult input-cost environment. The big question on my mind is how high these two companies might rise during the summer, since they are considered defensive plays. They didn't seem defensive at all on Wednesday during the Dow's 200-point bleed, but my gut is telling me they might be good short-term plays.
They certainly are excellent long-term plays, and while I own Coke, I'll concede that right now, in terms of P/E ratios and dividend yields, an investor wouldn't go wrong with either. And, yes, I'll further concede that one gets an added bonus with PepsiCo since it owns the strong Frito-Lay salty-snack business. But with both stocks down over the last six months (As of this writing, PepsiCo is down more than 11% for the six-month period while Coke is down more than 9%), and with problems in the markets, they might be interesting ideas right now. Again, though, the effect of input costs must be part of your due diligence before buying.
Disclosure: I own shares of Coke; positions can change at any time.
Sony Corporation (NYSE: SNE) has made two deals with Napster and 7digital.com to bundle music with "certain Walkman-branded portable music devices." Both deals apply to products sold in the United Kingdom, and offer similar vouchers and trials for tracks and the services to consumers.
Sony's deal with 7digital.com will package vouchers with the "Walkman Wirefree" series that give consumers the opportunity to download five free music videos. It is the first such deal with a hardware manufacturer for 7digital.com, a British-based digital store. Ben Drury, the company's CEO, acknowledges that the partnership is intended "to provide more choice for consumers, encourage more competition in the digital music market and ultimately offer a better deal for the consumer." The same devices will also come "pre-loaded with the Napster service" and those models will offer users "five free downloadable tracks, and a free 14-day trial of the Napster To Go service." Napster's VP of sales and marketing for Europe, Thorsten Schliesche, comments that the partnership is designed to "offer music lovers a complete service from the moment they purchase the product."
The goal of offering consumers and listeners a complete service right away indicates that at least hardware makers and digital stores are aware that music fans want the product. Easily available and quick access mean that users of this product will at least have access to a large range of tracks already available. Other devices have featured similar services, but never bundled with free music. Although the amount offered free of charge comes with limits, the ease of listening to future music should make it desirable.
As expected, Apple announced today the launch of its next generation iPhone, and the new phone will come with a price tag that is $200 less than the current model. The new 3G iPhones are going to hit the market with a $199 price tag.
A big reason for the release of the the new iPhones is the desire by Apple (NASDAQ: AAPL) to hit their goal of selling 10 million phones by the end of the year. The new phone will have faster Internet connection and satellite navigation capabilities. If you are like me, and have been postponing the purchase of a new phone in anticipation of today's announcement, you will have to wait a bit longer. The new phones will be available on July 11.
While the new phones will be about half the price of the current models, the monthly service plans will be a bit higher. Look for a $39.99 monthly plan, plus another $30 monthly fee for unlimited data. This works out to be about a $10 monthly increase, but considering the improvements of the new phones, not too bad of a deal if you ask me. Supposedly the new iPhones will be able to download data twice as fast as the current model.
Former Beatle and recently divorced Paul McCartney is reportedly planning to host a virtual dinner to raise funds for Adopt-A-Minefield, promising donors and fans who pledge $25 a new, unreleased track entitled "Lifelong Passion (Sail Away)." Those who register with McCartney's official website, www.paulmccartney.com, and donate will also receive "some special vegetarian recipes from celebrity chef Jamie Oliver."
It was this time a year ago that McCartney released the debut album for Starbucks' (NASDAQ: SBUX) music label Hear Music. Also his first album upon leaving EMI after 45 years, Memory Almost Full debuted at #3 in Billboard and sold 161,000 copies in its first week. McCartney's website reported earlier this year that the album had sold over 1,000,000 copies. Last month, McCartney also gave a copy of the album away with the Mail on Sunday in the UK.
Although that album and the new track promised for donations are likely not related, McCartney has enjoyed a very profitable and successful year. Pledging such strong support for the charity is also not surprising from McCartney, and indicates another step forward for the rock icon into the digitally-based music market. In a statement announcing the virtual dinner, McCartney said, "It should be a priority to clear arable land of landmines so that communities can once again use their land to grow their own food. Some music, some fantastic recipes from Jamie and hopefully, with your help, we'll be able to raise the much needed funds for the cause."
The transaction will close as of trading on Tuesday, June 10. Lorillard is being distributed to the public via a two-tier process involving: 1) the retirement of the tracking stock Carolina Group (NYSE: CG), in exchange for which approximately 62% of Lorillard's common stock will be issued, and 2) an offer in which shares of S&P 500 constituent Loews Corp. can be exchanged for the remaining shares of Lorillard
It was a smart move by Loews company management to separate the tobacco company from its other interests in hospitality, oil exploration, real estate and insurance.
Apple Inc. (NASDAQ: AAPL) Store's across the country will celebrate Black Music Month with 22 live in-store performances at various major city locations by "hometown heroes." Black Music Month was first proclaimed last year by President George W. Bush in "recognition of the outstanding contributions that African-American singers, composers, and musicians have made to our country," and in order to "express our appreciation for the extraordinary music that has enriched our Nation."
Apple's recognition of the month-long celebration may appear like a marketing tool from the number one music retailer, but it also signals the importance of retailers in promoting the celebration so it can achieve a higher level of awareness with the mass public. Even without Apple's promotion, this year's month-long celebration is looking very successful and very well received, and artists are obviously on board. Aretha Franklin has provided an essay for BlackVoices.com's celebration "expressing her enthusiasm with the state of modern R&B."
Above Apple, BlackVoices.com's promotion and website provides the most comprehensive and electrifying coverage of Black Music Month, providing discussion of various decades in music history from the 1960s to present, notes about events in that history, polls on favorite albums, blogs from celebrities and countless other features that expertly discuss black music. The AOL-owned website also discusses various styles and genres of music and important business leaders that have helped pave the way for black music.
The CD single is dead. At least that is what British supermarket giant Woolworths Group plc (LSE: WLW) is predicting as the company drops the format due to declining sales and with hopes of creating a download store. The chain will remove CD singles from shelves starting in August, but will retain the format for one-off releases like the British TV show X Factor, similar to American Idol in the United States.
Billboardreports that this move could end the use of CD singles across Britain altogether, but figures for CD singles sold versus digital downloaded single tracks were not made available. Woolworths stores sold 25.5% of singles in 2006, while the format has dropped from 55 million units sold in 2000 to just eight million last year.
With its stock trading down significantly yesterday, the good folks at Overstock.com (NASDAQ: OSTK) decided that it was time for a press release: Worldstock Offers to Ship 400-Pound Rug for $2.95.
General Mills
Checking on one of my big calls of the year:
As expected, Apple announced today the launch of its 
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
Starbucks: The next McDonald's
