Today’s Big Story: Chindia calls the shots.
As you know, one of the biggest trends we’re following these days is the rapidly growing economies of China, India, and their Asian neighbors – Chindia, for short.
Chindia’s affect on American businesses is a two-edged sword. If an American manufacturer is competing with Chindia, heaven help it. But on the other hand, companies that can successfully sell to Chindia will grow rich beyond the dreams of Midas.
Friday’s news offers us a perfect case in point.
Maytag (MYG) is a stock we’ve been recommending investors sell short. On Friday, it announced a loss of $14.1 million, or 18 cents per share for the last quarter of 2004. That’s down from a gain of 30 cents a share the previous year. In response, Standard and Poor’s lowered Maytag’s debt rating to BBB-minus, and said it may further reduce its bonds to junk status at a later date.
The result: Maytag shares dropped 10.5% on the day.Read more...
Bookmark/Search this post with:
