Starbucks Sets Sights on Mexico and 3 Morning Hot Stocks Buzzing Today
Dell Inc (NASDAQ:DELL): Current Price $12.92
Silver Lake Partners is trying to rope in the $170 billion Canada Pension Plan Investment Board and other big investors in an effort to setup a buyout that would take Dell Inc (NASDAQ:DELL) private. Silver Lake has also arranged financing from Credit Suisse (NYSE:CS), Bank of America Merrill Lynch (NYSE:BAC), Barclays (NYSE:BCS) and RBC even though Wall Street analysts have raised doubts on Dell’s prospects given that the PC industry has been showing stagnant growth in the wake of competition from mobile devices such as tablet computers. Singapore Sovereign Fund, Temasek Holdings, is said to not be interested in becoming a part of the bidding group.
Coca-Cola Femsa (NYSE:KOF): Current Price $159.05
Coca-Cola Femsa (NYSE:KOF) announced the merger of its operations with Grupo Yoli, one of the oldest family-owned Coca-Cola bottlers in Mexico, in a deal worth approximately $700 million paid for by Femsa through stock and assumption of debt. Coca-Cola Femsa is the largest public bottler of Coca-Cola products in the world, and the deal will also give it ownership of an additional 10.14% stake in sugar producer Promotora Industrial Azucarera, S.A. de C.V., in which it already owns 36.3%. Grupo Yoli operates two bottling facilities and 20 distribution centres and has approximately 3,500 employees. In 2012, it sold about 99 million unit cases of beverages.
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Johnson Controls (NYSE:JCI): Current Price $30.60
Johnson Controls (NYSE:JCI) announced FQ1 EPS of $0.52 and revenue of $10.4 billion which beat estimates by $0.01 and $0.16 billion respectively. Net sales were flat compared to the same quarter last year. Net income of $354 million fell 16.5% compared to $424 million last year. The results reflected softer global demand in the company’s markets, particularly in Europe. The building efficiency segment improved income 19% to $172 million, while the automotive experience segment reported 50% lower income at $101 million. Earnings in the first half of fiscal 2013 are expected to be significantly lower than 2012, and for the second quarter, the company expects earnings per share of $0.40-$0.42.
Starbucks Corp (NASDAQ:SBUX): Current Price $54.88
Fast growing coffee consumption trends in Mexico lead Starbucks Corp (NASDAQ:SBUX) to see a large potential in the country, where it plans to open 45 new stores every year for the next four years. “The market is there, and if we could open 200 stores this year, we would,” said Federico Tejado, Starbucks Mexico director. “We do see an opportunity to continue growing at these levels, and if things continue at the current pace, perhaps a little more.” Mexico is the fastest growing coffee market in Latin America.
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