Friday Morning Update

Best Buy (BBY) – Reuters firms up speculation that following a sharp fall in Best Buy’s share price, founder Richard Schulze could make a lower bid for the retailer than what he originally suggested in August. The deal was originally valued at $8.16 – $8.84 billion, or up to $10.9 billion including debt. A bid for the company is now not expected before December.

Target (TGT), Best Buy (BBY) – Brad Wilson believes retailers are launching Black Friday deals earlier this year in order to create a lot of noise to confuse smartphone-enabled shoppers. He also notes that more brick-and-mortar retailers haven’t jumped in with online price matching programs like the ones from Target and Best Buy.

Amazon (AMZN) – U.S. e-commerce sales will rise 15% this holiday season and the average shopper is expected to spend 12% more online. Amazon, whose North American sales rose 33% in Q3, should again be a share-gainer. So might eBay, whose U.S. merchandise volume growth rose to 16% in Q3 thanks to strong mobile uptake.

Kellogg’s (K) – Heard at yesterday’s Kellogg’s Analyst Day presentation:

  1. Innovation will continue to be the growth driver for the North American business.
  2. Kellogg’s plans to tackle challenges presented by shoppers empowered with online and mobile tools
  3. Company is increasing investments in digital marketing as well as in the Hispanic market.
  4. 2013 Outlook: Internal sales growth of 2% – 3% and EPS of $3.18 – $3.30

Wal-Mart (WMT) – The Reserve Bank of India refers the issue of Wal-Mart’s $100 million investment in an Indian company to regulators to see if any rules were violated in the deal.

Amazon (AMZN– Consumers in a dozen states can buy wine from Amazon’s website starting today in the company’s latest far-reaching venture. As is usually the case, it’s quantity over quality with over one thousand different wines for sale.


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