Friday, May 22, 2009

Analysts blablabla and advertising shmadvertising.

According to what I think I heard on Bloomberg, Sears radically cut their advertising costs. According to the analyst reports posted at Bloomberg, Sears Holdings had the lowest consensus ratings of any company in their sector. Analysts are great to get a feel of the common wisdom. But not for making bets on the future.

It sort of make you wonder why globals spend so much time and effort and really smart people managing what "analysts" say or carrying unsustainable SAG with advertising expenses. see second snippet below.

U.S. Stock Futures Advance After Sears Posts Unexpected Profit -
@Bloomberg.com: "May 22 (Bloomberg) -- U.S. stock futures rose, indicating the Standard & Poor’s 500 Index will extend its weekly advance, as better-than-estimated earnings at Sears Holdings Corp. offset concern the U.S. may lose its AAA credit rating.

Sears, the largest U.S. department-store chain, soared 24 percent in pre-market New York trading as the retailer also said it amended a credit agreement"
The advertising snippet
CHICAGO (AdAge.com) -- You don't have to have a nine-figure ad budget to boost sales and get your brand noticed -- but it could require some ingenuity. The Taco Maker, a Puerto Rico-based fast-food chain, saw 21% same-store sales increases in central Florida following a combination radio and mobile-marketing promotion in which it offered free burritos.

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