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“Barnes & Noble has put up an excellent fight over the past few years against the rising tide of digital competitors like iPad, Kindle Fire, etc.

But it would seem that the bookseller has still come up a bit short, as the Wall Street Journalreports that the company has plans to shut down nearly 20 stores per year over the course of the next decade.

Just last week, we learned that B&N had a rough holiday sales season with a 10.9 percent sales decrease over last year’s holiday season.

Barnes & Noble currently has around 689 retail stores in operation, but the cuts would eliminate around a third of those stores, leaving the total somewhere between 450 to 500 stores.

However, Barnes & Noble’s Mitchell Klipper, who delivered the news to the WSJ, explains that less than 3 percent of B&N stores lose money. Still, shutting down stores is expected to strengthen B&N’s hardware business, including the Nook HD and Nook HD+, which has been a growing focus at the company.

In the face of such a digital shift, it would appear that the bookseller expects its brick-and-mortar business to become more and more of a liability over the coming years.”

Full report

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Mitigating risk or raising dome capital….?

Full article

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“LONDON (Reuters) – Burger King, one of the most popular fast-food chains in Britain, said on Thursday it had stopped using one of the firms caught up in the scandal of supplying grocers with beef that contained horse meat.

The British food industry has been rocked by the revelation last week that retailers including market leader Tesco and smaller chains Aldi, Lidl and Iceland had sold beef products that contained horse meat.

Food safety experts say horse meat poses no added health risks to consumers, but the discovery has raised concerns about the food supply chain and the ability to trace meat ingredients.

On its website, Burger King said it had decided to replace all Silvercrest products in Britain and Ireland with products from another approved Burger King supplier.

“This is a voluntary and precautionary measure,” Burger King, famed for its flame-grilled burgers, said. “We are working diligently to identify suppliers that can produce 100 percent pure Irish andBritish beef products that meet our high quality standards…”

Full article

“Commerzbank AG (CBK), Germany’s second- biggest bank, will cut 4,000 to 6,000 jobs over the next four years to reduce costs and meet its profit goals.

The job reductions will apply to all units worldwide with the retail bank having “significant overcapacity,” according to an internal memo obtained by Bloomberg news, the contents of which were confirmed by spokesman Simon Steiner in Frankfurt. Chief Executive Officer Martin Blessing declined to comment on the cuts at the World Economic Forum in Davos,Switzerland….”

Full article

“Nokia Oyj (NOK1V) will omit a dividend for the first time in at least 143 years as the struggling Finnish mobile-phone maker retains cash for its comeback attempt.

The company announced the decision as it reported its first net income in seven quarters and an increase in net cash. Even the World Wars and the breakup of the Soviet Union, a major buyer of Nokia’s networking gear, didn’t stop the company returning cash to investors.

Nokia is trying to claw back business after sales plunged and combined losses had reached almost 5 billion euros ($6.7 billion) since early 2011. Chief Executive Officer Stephen Elop has cut more than 20,000 jobs and is conserving cash to challenge Apple Inc. (AAPL) and Google Inc. (GOOG) with devices running Microsoft Corp. software….”

Full article

$AAPL is more akin to $IBM or $JNJ as opposed to its God like status when Jobs was around….

Full article & video

“Last week, following documentation from Deutsche Bank (and Nomura), it became clear that Italy’s Monte Paschi (BMPS) bank (the oldest in the world) has engaged in derivatives with the German and Japanese banks in order to save itself during the financial crisis. The derivatives, according to Bloomberg, were done off-market and allowed the booking of large upfront gains which covered losses optically that the bank faced as European liquidity dried up completely – the offsetting ‘losses’ are now coming due. Today, amid growing outcry over the ‘deal’, the former head of BMPS hasresigned. Bloomberg reports that Giuseppe Mussari, now Italy’s top banking lobbyist, was the Chairman of BMPS during the derivative deal period. BMPS shares were halted after plunging dramatically as investors are still unclear of the extent of losses it faces on derivatives. If that was not enough chicanery, there is a twist in that none other than Mario Draghi, as Director of the Bank of Italy, would have had to vet Mussari (and his banks’ regulated books) during this period – as BMPS accumulated what is obviously undocumented derivatives positions to intentionally obscure losses. Once again, years later, it seems the truth comes out – and of course we would expect no-one to go to jail – and the lying in Europe (then and now) continues unabated – as the reality of financial system health remains hidden from view.

Via Bloomberg,

Former Banca Monte dei Paschi di Siena SpA Chairman Giuseppe Mussari quit as Italy’s top banking lobbyist as scrutiny of the lender’s use of derivatives deepens….”

Full article

“The U.S. Securities and Exchange Commission barred Egan-Jones Ratings Co. from issuing ratings on certain bonds, an unprecedented step by the regulator and a setback for a small credit-rating firm with a history of courting controversy.

The SEC said Tuesday that Egan-Jones couldn’t officially rate bonds issued by countries, U.S. states and local governments, or securities backed by assets such as mortgages, for at least the next 18 months.

The ban was part of an agreement the SEC reached with Egan-Jones and its president, Sean Egan, to settle charges that they filed inaccurate documents with the regulator in 2008. The SEC alleged that Egan-Jones misled investors about its expertise, and that Mr. Egan caused the firm to violate conflict-of-interest provisions.

The firm and Mr. Egan agreed to the settlement without admitting or denying the findings.

Mr. Egan didn’t respond to a request for comment. He has been outspoken in the past in his defense of the firm and its ratings…..”

Full article

“BASEL, Switzerland— Daniel Vasella, the longtime chairman who helped create Swiss drug giant Novartis AG NOVN.VX +5.41% through a big 1996 merger, is stepping down next month after 25 years at the company, Novartis said as it reported a rise in net profit and flat sales in the fourth quarter.

Novartis said it is nominating Joerg Reinhardt, chief executive of Bayer Healthcare AG and a one-time contender for the Novartis CEO job, as the company’s new chairman. If shareholders approve him for that job, he will step down from his Bayer post in August, Novartis said.

Joe Jimenez will remain as Novartis chief executive. Novartis vice chairman Ulrich Lehner will lead the board until Mr. Reinhardt’s likely arrival in August.

Dr. Vasella, 59, said he felt the time was right to step down after a long tenure at the company. “Novartis is solidly on course to navigate the volatility and uncertainties of today’s economic environment,” he said in a statement.

“I am confident in the leadership of Joe Jimenez and his top team, the company’s strategy with its commitment to innovation, and the course charted to strengthen Novartis as one of world’s leading health-care companies. I have therefore concluded that after 25 years with the company, the time is right for me to ensure a smooth transition.” He didn’t say what his future plans involve…..”

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“WASHINGTON, Jan 23 (Reuters) – Fewer investors are taking corporate America to court for fraud.

The number of new federal securities fraud lawsuits seeking class-action status fell to a 7-year low in 2012, according to a study by Stanford Law School and Cornerstone Research released on Wednesday.

Just 152 such lawsuits were filed last year, down 19 percent from 188 in 2011, mainly because of fewer lawsuits challenging mergers.

Last year’s total is also 20 percent below the average of 190 for the period from 1997 to 2012.

Only 2005, when 120 lawsuits were filed, was a quieter year for new cases. And in last year’s fourth quarter, just 25 new securities fraud lawsuits were filed, the fewest in any quarter since 1997, the first year included in the study.

Big companies also were sued less in 2012 than in prior years. Seventeen companies in the Standard & Poor’s 500 index were named as defendants in 2012, versus an average of 31 over the prior decade….”

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“$AAPL is covered almost every hour by the financial media and reported on by outside websites quite literally thousands upon thousands of times each and every day. Today is reckoning day as the consumer electronics giant and largest company by market cap is due to report earnings after the close of trading.

Thomson Reuters has a consensus forecast of $13.44 earnings per share (EPS) and a gain of 18% in sales to $54.73 billion. For the current quarter’s guidance, Thomson Reuters has a consensus grouping of $11.70 EPS and $45.63 billion in revenue, for 16.4% expected sales growth. Wall St. will be focused on margin compression.

What investors need to care about the most is that Apple’s fundamental growth story remains, but its stock is broken and similar to peaking trends seen in many past great tech stories. It closed at $504.77, and its 52-week trading range is $443.14 to $705.07. Analysts have been lowering their price targets regularly of late, and the consensus price target from Thomson Reuters is now just under $710.00 for one-year from now. Apple is still worth some $475 billion in market value….”

Full article

“Molycorp Inc. (NYSE: MCP) may have had some serious problems of late, but now the company is raising new capital and the move is adding pressure on the stock as this will be dilutive to earnings. So what if this capital may be needed as a buffer. So what if this proves to the market that Molycorp also can still attract new investment capital.

The rare earth metals leader in the United States plans a sale of $200 million in equity and another $100 million in a note offering. Molycorp plans to use the capital to fund its capital expenditure plans that include its Mountain Pass facility in California….”

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“David Bianco and Deutsche Bank’s U.S. equity strategy team believe that the S&P 500 will reach 1,575 by the end of 2013.

If we get a decent deal to address the sequestration, Bianco thinks the index goes as high as 1,600.

But within the market, some stocks look better than others.

In his latest note to clients, Bianco includes a list of the 30 stocks he likes right now.

All of these stocks are buy-rated by Deutsche Bank analysts.  Each have a market capitalization over $10 billion, a price-earning ratio on 2013 EPS below 18, 2013 EPS growth above 5 percent, and a net debt to market cap ratio below 30 percent (excluding Financials).

Full article

“Robert Bosch GmbH, the world’s biggest car-parts maker, said it will hold back on investments this year as a recession in Europe caused profitability in 2012 to miss targets and sales rose only because of currency effects.

The operating return on sales was about 2 percent last year, compared with a long-term goal of 8 percent, Chief Executive Officer Volkmar Denner said at a press briefing. Revenue, which increased 1.6 percent to 52.3 billion euros ($69.5 billion) from 51.5 billion euros in 2011, would have fallen without a boost from exchange rates, he said.

“We can’t be satisfied with the business year 2012,” Denner said at the press conference in Bosch’s headquarters city of Stuttgart, Germany. “We’re looking at fixed costs very closely, and will be restrictive regarding investments and acquisitions.”

The European auto market contracted by 16 percent last year to the lowest in almost two decades, and carmakers such as PSA Peugeot Citroen (UG) and General Motors Co. (GM)have announced factory shutdowns in response. Bosch also said today that it wrote down 600 million euro in assets at its unprofitable solar-panel division, a unit whose future it’s reviewing…”

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“Amgen, Inc., the world’s largest biotechnology firm, will continue to sell one of its best selling drugs at unregulated prices, thanks to a provision buried within the fiscal-cliff compromise.

With the help of its corps of 74 lobbyists, Amgen convinced lawmakers to include a clause that will prevent Medicare from imposing price restraints on a class of drugs that includes Sensipar, an Amgen medication sold to kidney dialysis patients.

The provision buys Amgen another two years of selling the drug without federal caps. That’s great news for the company’s bottom-line, but bad news for Medicare, which will pay an extra $500 million for the drug.

Some congressional aides privately criticized the gift to Amgen, noting the biotech giant had already received a two-year delay.

“That is why we are in the trouble we are in,” Dennis J. Cotter, a health policy researcher who studies the cost and efficacy of dialysis drugs, told The New York Times. “Everybody is carving out their own turf and getting it protected, and we pass the bill on to the taxpayer.”

The delay will go a good way towards making up for Amgen’s most recent criminal activity. On December 19, Amgen—as a corporate entity—pleaded guilty to illegal marketing of its anti-anemia drug, Aranesp, and agreed to pay penalties totaling $762 million.”

“BBY has announced that it’s closing around 300 stores in the U.S. over the next few weeks.

That’s around 35 percent of its total brick-and-mortar presence of 850 stores.

Around 3,000 employees will be laid off as a result of the closings, according to a spokesperson from parent company Dish Network.

“We continue to see value in the Blockbuster brand and we will continue to analyze store level profitability and — as we have in the past — close unprofitable stores,” the spokesperson told the Los Angeles Times….”

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