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It's cool fun sometimes to look at under-$10 stocks and see if there are any worth investing in. TiVo (NASDAQ: TIVO), famous maker of digital-video-recorder technology, is currently trading under $10 a share, and it reported its Q2 numbers on Wednesday. I can't say, though, that I'm ready to buy just yet, even though some of the stats presented in the release described a nice improvement in year-over-year comparisons.

The bottom line, in fact, improved substantially. Earnings per diluted share came in at 3 cents. Last year, TiVo saw a loss of 18 cents per diluted share. According to Earnings.com, analysts were looking for a loss of 2 cents per share during the quarter, so estimates were certainly beat.

Cash flow from operations also jumped in a very nice way. The company generated over $10 million over the last six months. During the similar time period in 2007, TiVo needed to use almost three times that amount to keep operations going. Cash flow is an important metric for investors to look at, so that was good to see.

Best Buy, Inc. (NYSE: BBY) has lowered the price of a Sharp Blu-ray disc player this week to $349.99 from $399.99. Why is that so significant? It isn't. While most buyers in the U.S. sit and wait until Blu-ray player prices reach the $199.99 level, there is a looming problem even with that.

The problem is this: standard DVDs are good enough for most of us, and with upconverting players sitting in all retailers for $50 to $75, will another upgrade cycle to another format be foisted on the buying public? This one will be much harder than the transition from VHS tape to DVD a decade ago.

If Best Buy really wants to make the next-generation optical disc format truly a best seller, the pricing will have to come down by a mile. This really won't be the responsibility of the retailer, but the manufacturer. But Best Buy can do this: guarantee an X amount of sales if the price moves to a certain price point. It's the only retailer outside Wal-Mart Stores, Inc. (NYSE: WMT) that could possibly guarantee a certain amount of sales in order to get newer consumer electronics format into the mass population. So, will Best Buy take the lead and get Blu-ray into the mainstream?

Toshiba Corp. is rolling out its own upconverting standard DVD player specifically targeted to those buyers who don't yet want to invest in the expensive Blu-ray format. This is a good move, although there are tons of competing products already on the market. Although Sony Corp. (NYSE: SNE) won a major victory in the Blu-ray format, convincing customers to buy the expensive hardware and movie software is still a major challenge. Perhaps a major Blu-ray partnership between Best Buy and Sony should be on the way?

Best Buy, Inc. (NYSE: BBY), after announcing it was going to come on strong in the United Kingdom, is now setting its sights on Russia to further its international expansion plans. This according to scattered media reports about the largest consumer electronics retailer in the U.S.

Proof comes in the form of Best Buy's registration of the Future Shop trademark in Russia. The Future Shop trademark is the name for Best Buy's Canadian subsidiary. It filed the license for trademark a few years ago and has been granted the trademark recently. Would Best Buy really try to enter a country where recent political strife has caused growing international concern? Sure -- if profits are to be made.

With Best Buy on record saying that it wants to achieve $80 billion in annual sales within five years, much of that growth won't be sitting inside its U.S. stores, but from international sales. Of course, the retailer continues to open stores inside the U.S. and won't stop that type of expansion as long as it makes business sense. For the last 18 months, Best Buy has ramped up its dominance in retail electronics and has crushed former rival Circuit City stores, Inc. (NYSE: CC). It's showing no signs of slowing down anytime soon.

TheStreet.com's Jim Cramer says that as consumers try to stretch their dining dollar, Darden, Yum! and McDonald's will benefit.

We all know we are overstored in this country and over-restauranted. There are tons of players -- so many that the competition got too hard. Now they collapse. That Uno might miss a payment, that Bennigan's and Steak & Ale are going away, that Bakers Square and Village Inn have filed for bankruptcy: All say the industry is in big trouble.

But ask yourself, if you are Darden (NYSE: DRI) (Cramer's Take), do you think this is a good or bad development? If you are Yum! Brands (NYSE: YUM) (Cramer's Take), do you think that this, at last, is your time? How about McDonald's (NYSE: MCD) (Cramer's Take)? Room to go more upscale, perhaps?

We read all of these horrible articles every day about restaurants, and yet we see that the stocks of Yum! and Darden hang in great, particularly the first, which gave hideous guidance and yet is now higher than it was before it told people commodity costs were hurting it. McDonald's? How many stocks just hit their 52-week high?

Apple (NASDAQ: AAPL) wants to get beyond AT&T (NYSE: T) outlets to sell its new iPhone. So, it will turn to consumer electronics giant Best Buy (NASDAQ: BBY).

The new distribution deal has significant risk. Part of the iPhone's appeal is that it is not as "easy" to get as other handsets. Apple and AT&T are the only sources for the device. To some extent, that makes it "special" in the consumer's mind.

Putting the iPhone into a large chain of stores that sell hundreds of devices including a large number of cellular handsets turns the iPhone into a bit of a commodity. While it may help sales some, it may take away part of the product's luster and its image as a superior handset product.

Broad distribution worked for the iPod. Whether it will be good for the iPhone's branding remains to be seen.

Douglas A. McIntyre is an editor at 247wallst.com.

U.S. stock futures were mixed Wednesday ahead of retail sales, import price data and oil inventories reports. Analysts expect retail sales, to be reported at 8:30 a.m., rose 0.5% in July. Futures may find direction after the report. Meanwhile, oil futures rose ahead of the inventory report due out at 10:35 a.m., the dollar fell against some currencies and gold futures rose.
[Update: Following a decline in retail sales in July, futures turned lower.]

Deere & Co. (NYSE: DE) has just reported quarterly results and shares sank 6.1% in premarket trade. The world's largest maker of farm machinery, said earnings in the latest quarter rose 7% and revenue increased 17% as soaring crop prices boosted global demand for its agricultural equipment. The company, however, missed on earnings and gave forecast that was lower than estimations.

Liz Claiborne (NYSE: LIZ) reported a net loss this quarter but beat estimates on an adjusted basis. It also issued a downside guidance.

Earnings are still due from Macy's (NYSE: M), among others.

Nvidia (NASDAQ: NVDA) shares rose 7.3% in premarket trading despite reporting a $121 million loss Tuesday. Investors liked that Nvidia announced a stock buyback of $1 billion and predicted margin improvement.

Applied Materials (NASDAQ: AMAT) also rose, up 1.2% in premarket trading after the largest maker of semiconductor-production machinery forecast better-than-estimated orders and CEO Mike Splinter said conditions will improve. Its fiscal third-quarter profit plunged 65%, but sales results beat estimates.

Best Buy, Inc. (NYSE: BBY) continues to be the innovator in the consumer electronics space. The next time you saunter into an airport and plop out your laptop and cellphone, you may see a bright yellow Best Buy Express kiosk nearby.

That's right -- Best Buy is testing a concept to have the most-needed gadgets and accessories available for retail sale at an automated kiosk in your nearest airport terminal. Get ready to whip out that credit card.

If you forgot to charge that cellphone (oh no!) or need a last-minute Christmas gift after you arrive at the airport, you may soon be in luck. Initially, Best Buy is going to have these kiosks available at 12 major international airports in the U.S. to test the concept. The pricing? Very similar to what you'd find in a typical Best Buy retail location (read: cheap). This will be a comfort to those who are tired of paying those over-inflated fees at airport shops.

These kiosks will match the wish list of every gadget-hungry traveler: MP3 players, digital cameras, unlocked cell phones, portable gaming systems and all kinds of chargers for all your electronic toys. Want some headphones for the plane? You'll find those as well. Even Best Buy gift cards will be available -- the one-size-fits-all holiday gift. This is a very innovative approach by Best Buy to grow sales in a captive audience, and should provide a decent lift to upcoming holiday season sales.

Best Buy, Inc. (NYSE: BBY) is looking to expand faster and more furiously than previously thought in the United Kingdom. Best Buy, which joined up with Britain's Carphone Warehouse in a 50% ownership venture earlier this year, wants to take England by storm and is wasting little time in the effort.

The largest consumer electronics chain in the U.S. said that it would eventually roll out more than 200 stores in the UK over the long term, which is quite a bit more than had been expected. Best Buy wants to dominate that market just as it has conquered the U.S. market, and an aggressive international expansion like this cements Best Buy's goal of becoming a global retail player in consumer electronics.

But some are concerned that Best Buy's $2.1 billion chunk of Carphone Warehouse -- which is 50% of the company -- may be used to expand the Best Buy brand at the expense of the Carphone Warehouse brand. Best Buy wanted an immediate presence in the UK market by partnering with a leader there, and now it has that.

Analyst upgrades

• Rodman & Renshaw upgraded shares of Amgen (NASDAQ: AMGN) to Outperform from Market Perform following the positive top line results from the FREEDOM study. The firm established an $80 target. Jefferies upgraded shares to Buy from Hold following the positive top-line efficacy and safety results for Denosumab in PMO as they view it as a "big win." The firm raised their target to $71 from $47.
• Best Buy (NYSE: BBY) was upgraded to Buy from Neutral at Banc of America.
  
• Goldman upgraded Kimberly Clark (NYSE: KMB) to Neutral from Sell and Dick's Sporting Good (NYSE: DKS) to Buy from Neutral.
  
• Rowan Companies (NYSE: RDC) was lifted at JP Morgan to Neutral from Underweight.

Analyst downgrades:

• Jesup & Lamont downgraded shares of Moog (NYSE: MOG.A) to Neutral from Buy on concerns of the company's high rate of R&D and its relative valuation. Keefe Bruyette downgraded shares of Federated Investors to Market Perform from Outperform following the company's lower than expected Q2 results and cut their target to $35.
  
• Ryanair (NASDAQ: RYAAY) was cut to Hold from Buy at Citigroup.

Analyst initiations:

• Morgan Joseph believes Amgen (NASDAQ: AMGN)'s positive FREEDOM trial results will have a profound and lasting impact on the company's growth but also on its scientific credibility. The firm initiated coverage with a Buy rating and $77 target.
• Piper assumed Ctrip.com (NASDAQ: CTRP) with a Neutral rating and Epicor Software (NASDAQ: EPIC) with a Buy rating and $8 target.
  
• Banc of America initiated Britannia Bulk (NYSE: DWT) with a Buy rating and $19 target.

Welcome to the 70th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.

This week, I'm pitting Wal-Mart Stores Inc. (NYSE: WMT) against Best Buy, Inc. (NYSE: BBY) in terms of one nice and profitable category of product: consumer electronics. Although many would argue that consumer electronics have a slender profit margin, the fact is that consumers can't get enough gadgets.

They keep buying and buying and buying. Flat-panel televisions, iPods, cellphones, PCs -- you name it. With the insatiable appetite U.S. consumers have for these products, Wal-Mart has really upped the product presentation game recently within stores I've seen in my area. My guess is that it will only get more intense as Wal-Mart tries to strike at the heart of Best Buy.

When Best Buy Inc. (NYSE: BBY), Circuit City Stores Inc. (NYSE: CC) and Wal-Mart Stores Inc. (NYSE: WMT) are all stacked up together, which one comes out on top? Well, it depends on how you phrase the question: Are we talking solely prices here, or customer service? The pricing angle can be debated all day long. When it comes to service though, my experience is very similar to the conclusion that this article states: Best Buy is king.

Target Corp. (NYSE: TGT), although a much cleaner and brighter location in which to shop, seems to have a weak schedule in the consumer electronics department. Most weeks, I roam into many retail chain locations just to walk around and observe. In many cases, Target seems well-stocked when it comes to checkout personnel, but not if you have questions about a flat-panel television. At Circuit City, its tarnished reputation is well-deserved: It's hard to just find anyone to help you.

And Wal-Mart? The world's largest retailer has made strides to really improve the consumer electronics sections in its stores. The customer service, however, is a completely separate story. If I step into a Best Buy, there's a 99% chance that I will be greeted by a security guard manning the front door, and will be asked at least four times within five minutes if I need help.

While Wal-Mart may have slightly better prices on many consumer electronics items, is that all that matters? Of course not. I give Wal-Mart props for making large strides in product presentation, though. Chris Denove of J.D. Power and Associates says that "Across many industries, we've seen that the retailers that grow customer-service ratings the fastest have greater sales growth." If Wal-Mart wants to try and really compete with Best Buy's winning combination of price and service, it best listen to that advice. Target -- it's also time to step it up on your end. What are you waiting for?

RBC downgraded Best Buy (NYSE:BBY) to "outperform" from "top pick", according to Briefing.com. The news service also reports that JP Morgan upgraded United Airlines (NASDAQ:UAUA) to "overweight" from "underweight".

Coca Cola (NYSE:KO) removed from Goldman Sachs Conviction Buy List, according to 24/7 Wall St.. The financial site also reports that EBay (NASDAQ:EBAY) Cut to Neutral from Buy at Goldman Sachs.

Douglas A. McIntyre is an editor at 247wallst.com.

Best Buy (NYSE: BBY) shares are falling today after a retail analyst at research company RetailMetrics LLC noted that, despite moderately encouraging same-store sales in June, retailers could face challenges through the remainder of the year. Rebate checks helped retailers this month, he notes, but they only provided a "one-time bump." He added that the back-to-school season is going to be challenging for retailers, which could be bad news for BBY. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on JPM.

After hitting a one-year high of $53.90 in December, the stock has hit a new one-year low today. This morning, BBY opened at $40.01. So far today the stock has hit a low of $38.20 and a high of $40.06. As of 12:15, BBY is trading at $38.54, down 1.31 (-3.3%). The chart for BBY looks bearish and steady, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider a September bear-call credit spread above the $47.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in ten weeks as long as BBY is below $47.50 at September expiration. Best Buy would have to rise by more than 22% before we would start to lose money. Learn more about this type of trade here.

BBY hasn't been above $47.50 since January and has shown resistance around $41 recently. This trade could be risky if the company's earnings (due out on 9/16) are a positive surprise, but even if that happens, this position could be protected by resistance BBY might find at its 200-day moving average, which is currently around $46 and falling.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BBY.

When Best Buy, Inc. (NYSE: BBY) decided to pick up the ZAGG (OTC: ZAGG) invisibleSHIELD product, gadget fans everywhere need to have cheered. After all, the ZAGG product, which I've used, is an invisible shield made of military-grade film that covers all exposed surfaces of thousands of portable electronics, saving them from harm, scratches and nicks. What's not to love? Instead of those bulky and hard to handle leather and rubber cases, just cover your beloved iPhone, BlackBerry or digital camera with some clear film and drop it all you want. Well, hopefully not.

Best Buy has a unique marketing opportunity here that it may not recognize yet. Portable electronics are where it is at. We all want to have our email, voice-mail, digital camera capability, text messaging and maybe even portable Internet access anywhere we go, at any time. This means portable gadgets. While most of them are designed to look and feel extremely nice, the rigors of abuse in the real world don't generally agree. That's where ZAGG's product comes in.

Best Buy needs to land a major web and possibly TV marketing campaign to show just how easily this product can protect their sensitive and loved personal portable electronics. Get customers into stores to buy or special order one and make sure they leave with a few peripheral purchases. Accessories generally don't get the general public excited, but this is one that should. Some retailer needs to take advantage of it.

According to this Wall Street Journal (subscription required) piece, a member of the Circuit City Stores, Inc. (NYSE: CC) board has left the building. Lead outside director Mikael Salovaara resigned yesterday. Can you blame the guy?

No you can't. Circuit City doesn't have any sort of game plan at the moment, and it's sinking fast. The company's stock is priced at $2.31 as I write this. The goofy Blockbuster Inc. (NYSE: BBI) transaction is gone (for now, at least...there are reports saying that it could be resurrected at a later date, although I don't buy that it will happen at all). It isn't competing effectively against Best Buy Co., Inc. (NYSE: BBY) and Wal-Mart Stores, Inc. (NYSE: WMT). In short, Circuit City is a Titanic-like electronics retailer that doesn't know how to keep its ship from hitting icebergs.

So this resignation isn't surprising. Of course, is there any way to make money off the stock? I do believe there is downside to come on the share price, which would therefore imply that shorting it could work out. Alas, I wouldn't recommend it. You just know that some company and/or financial entity out there might come in at any point and make a bid, and the shares could skyrocket. Although the Blockbuster deal didn't make sense, it doesn't mean that there isn't some transaction scheme out there that would be logical. Circuit City is a stock merely to watch out of curiosity, it's not one to do anything about.

Disclosure: I don't own any company mentioned here; positions can change at any time.