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Low Income Black Friday Shoppers Sought Deals On Basic Necessities

And the mall gods spoke.

This year marked a record turnout for America’s holy ritual of consumption, Black Friday. Retail sales were up 9.1 percent over last year, according to the National Retail Federation, with some experts scrambling to declare the beginnings of a large-scale consumer comeback.

But while some did splurge on flat screen televisions and jewelry, many others rushed into stores for more basic necessities — the .47 baby clothes and .28 towels that have become increasingly difficult for low-income Americans to afford.

At a Walmart in North Charleston, S.C, Black Friday shoppers huddled around stacks of children’s Disney pajamas, waiting for employees to tear off the plastic casing at 9:50 p.m. At Walmarts in Benton Harbor, Mo. and Little Rock, Ark., shoppers-turned-YouTube spectacles fought over towels and waffle makers.

But these scenes, humorous to some, also paint a bleak picture for an American economy in the grip of a recovery that to many still feels like a recession. Nearly half of Americans lack economic security and are unable to afford basic needs like food, transportation and health care, according to a recent study by the nonprofit Wider Opportunities for Women. In fact, families’ abilities to pay for food recently hit a new low this month, nearing 2008 recessionary levels, according to a Gallup Poll.

“It’s competitive because the economy is bad,” said Melissa Wolford of California, Mo. Her Black Friday list included towels and the “Straight Talk” prepaid Motorola phone from Walmart.

RECESSIONARY NECESSITIES

Dev Shapiro, a spokesman for Gottadeal.com, a website that has tracked Black Friday discounts since 2003, said his company began noticing deals on basic household items at the start of the recession in 2008.

Shapiro, who lives in Dallas, Texas, said many of his friends no longer buy each other cruises for Christmas, instead choosing to go to Best Buy on Black Friday to buy appliances like washing machines and driers.

Kmart, for one, has long offered discounts on basic household items on Black Friday, according to Tom Aiello, VP of communication for Sears Roebuck & Co. There’s just been “more of a slant to practical gifts” since the recession, he said. “Families are giving gifts like sheets, comforters, towels.”

Yet gadget deals remain the ones most heavily promoted by the stores themselves in the lead-up to Black Friday. Best Buy’s most talked about item this year was a 9 42-inch Sharp TV. Meanwhile, Amazon.com reported Monday that Black Friday Kindle sales were four times higher than last year.

It’s not that customers buying flatscreens aren’t buying towels, according to Aiello. While most shoppers won’t camp out for five hours for a set of towels alone, they’re aware of those deals and include such items on their lists, he said.

DESPERATE DEALS?

With the median national income falling more during the recovery than in the recession itself, it’d be wise not to pin the Black Friday sales jump on any increase in customer cash, according to Candace Corlett, president of WSL Strategic Retail. Instead, shoppers may feel Black Friday is the one day they can find affordable prices, Corlett said.

Indeed, in a survey of 1,500 people, WSL concluded that a large majority of shoppers of all incomes, ages and ethic groups perceived Black Friday prices to be the best of any holiday shopping day. And it’s also the exception to the growing spending gap between affluent shoppers and all others, according to Corlett.

“For six months now we’ve seen a sharp divide between people with incomes over 0,000 and everyone else,” she said. “Black Friday is different. It brings out that competitive spirit of those who just want to get the deal regardless of how much money they have.”

“This is the shopping day of the year,” 18-year-old Seth Hollibaugh said. Hollibaugh waited in front of Best Buy in North Charleston, S.C. for more than 30 hours in anticipation of Black Friday and the 9 42-inch flat screen TV.

“Then you start saving up for next year,” he said.

Business on HuffingtonPost.com

Basic Energy Services Reports Third Quarter 2011 Results

MIDLAND, Texas, Oct. 20, 2011 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today announced its financial and operating results for the third quarter and nine months ended September 30, 2011.
THIRD QUARTER 2011 HIGHLIGHTS
Third quarter net income as reported was .6…
PR Newswire: Financial Services

3 Undervalued Basic Materials Dividend Stocks

Double Dividend Stocks submits:

Standard & Poors shows the Basic Materials as being the 2nd worst sector year-to-date in 2011, up only .84%, lagging only the dreaded Financial sector, which was down -2.99%, as of May 25th. One might think that such poor share performance would suggest lousy future growth prospects for Basic Materials stocks, but, on the contrary, Standard & Poors shows the 2011 estimated EPS growth for this sector as second only to Energy stocks – (click charts to expand):

(Data Source: Standard & Poors. EPS Estimates as of 5-18-2011)

Digging back further into past years, 2006 was the record year for overall S&P earnings, and even though 2010 was a good year, only 5 out of the 10 sectors managed to exceed their 2006 aggregate EPS figures:

The Basic Materials sector, along with most other sectors, is projected to beat its record 2006 Operating EPS in 2011, by over 17%, and


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Chasing High Dividends in Basic Materials Sector: A Look at Sunoco Logistics

Double Dividend Stocks submits:

If you’re looking for basic materials stocks paying high dividends, join the crowd. Most basic materials stocks paying dividends have had quite a run over the past year, as it has been the leading sector in price gains, due to strong demand from emerging nations, and a cheap dollar:

The sector is still holding its own in 2011, although it has been overtaken by the long out-of-favor health and conglomerates sectors, in addition to industrials. (The conglomerates sector is dominated by GE (GE), which makes up approx. 47% of it.)

Here’s a look at overall P/E’s, projected EPS and PEG figures, and past EPS and sales history for all of the sectors:

Only tech outgrew basic materials in both sales growth over the past five years, but basic materials had only average EPS growth. Looking ahead, the projected 1.27 PEG ratio for basic materials stocks is cheaper than the avg.


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2 Undervalued Basic Materials Dividend Stocks

Double Dividend Stocks submits:

Is it still possible to find undervalued dividend paying stocks after this fall’s rally? Since the Basic Materials sector has been the leading sector during the past 3 months, having risen 16%, you’d think that there wouldn’t be any undervalued dividend stocks there, but we’ve found 2 that may fit the bill, even though they’ve both had good gains this past quarter:

Southern Copper (SCCO): As you may know, copper has been on a royal tear in 2010, up 28%, but many analysts feel that it has a long way to go in 2011. Forbes reports that:


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Double Dividend Stocks – Seeking Alpha

3 Undervalued Brazilian Basic Materials Dividend Stocks With High Option Yields

Double Dividend Stocks submits:

Are you looking for undervalued dividend paying stocks? If you think that emerging markets will keep expanding, maybe you should take a look at the Basic Materials sector, which has only risen 6.6% in the past year, vs. the Consumer Goods sector, which is up 19.5%. We found 3 Brazilian stocks in the Basic Materials sector that stand to profit from emerging market growth: Vale (VALE), Gerdau (GGB), and Companhia Siderurgica Nacional (SID).

Although none of these firms’ dividends are high enough to be in our High Dividend Stocks tables, you can still achieve double digit yields via selling covered calls or cash secured puts (see tables below). These dividend stocks all suffered in the ongoing downturn, as evidenced by their negative EPS growth for the past year, but when you look at their prospects for next year, it’s a much better story, with very low next-year PEG ratios:


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5 Undervalued Basic Materials / Energy Dividend Stocks

Double Dividend Stocks submits:

Are you looking for bargain basement dividend paying stocks with good earnings growth forecasts? Here’s a good place to start your search:

Our Stock Market Data page shows the Energy sector is off 8.65%, while the Basic Materials sector is down -8.43% year-to-date. Additionally, our Market Cap/Style table shows that Large Cap Growth has taken the biggest hit, dropping -3.92% YTD. These two sectors have lagged way behind other industry sectors over the past year, as investors have questioned the strength of the global recovery, and future demand. If you believe that there will be steady or increased future demand for oil, natural gas, copper and the like, then you may want to research these 5 dividend stocks further.


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