This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

There are probably very few people growing up in North America that have not had Kellogg's (NYSE: K) cereal at some time. I know people that have breakfast cereal for lunch or diner as well. It is the number one U.S. breakfast cereal maker, ahead of General Mills (NYSE: GIS). Among its well-known brands are Frosted Flakes and Rice Krispies.

The company, founded by Keith (W.K.) Kellogg and brother, Dr. John Harvey Kellogg, began with only 44 employees in 1906. Today it employs more than 30,000 people, manufactures in 18 countries, and sells products in more than 180 countries.

Kellogg is a big company in a small town but it is not alone. Battle Creek, Michigan, known as the "Cereal City," is the world headquarters of Kellogg Company and also the home of Post Cereals, which was part of General Foods Corporation and is now part of Kraft Foods (NYSE: KFT). When Kellogg started, there were 42 other cereal companies in Battle Creek.

Looking at the history, the village of Battle Creek began as a market and mill center for prairie farmers. The introduction of rail lines supported farming and the distribution of farm products, and the cereal companies clustered there in the same way that Detroit became the home of the auto industry or the movie business developed with its focal point in Los Angeles.

During the Great Depression, Kellogg altered its production schedule from three to four shifts to keep putting paychecks in people's hands, built a 10-acre park around their plant, and started the W.K. Kellogg Foundation, establishing a clear pattern of investing in the people and supporting their town. There is even a W.K. Kellogg Airport.

Kellogg has been trading between $46.25 and $56.89 over the past 52 weeks. I do not know what to make of its key ratios, which indicate some positives along with some puzzles. Somehow Kellogg has managed to generate a ROE of almost 48% -- that's amazing. Part of the reason is that it seems to have a substantial amount of debt on its books, so it must be using some leverage to achieve that.

A recent press release, Kellogg Company Reports Progress on Its Global Health and Nutrition Initiatives, suggests the company is not sitting idle but trying to focus on growth (and cost cutting) while its source material, all sorts of grains, keep rising in price.

The price-to-sales (TTM) seems fair, but I am put off by the price-to-book of almost 9. At 19, its P/E is higher than average, but it also pays a higher than average dividend yield of 2.38%.

Among the types of consumer goods that look like safe bets in a soft economy I would think Kellogg would be a relatively inert one, but I do not know that I would favor it over an index fund unless I was getting a deep discount.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of any stock mentioned.

Be sure to check out more Big Company, Small Town posts.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bed Bath & Beyond Inc. (NASDAQ: BBBY) Q1 earnings tumbled while revenues rose.
• Casella Waste Systems Inc. (NASDAQ: CWST) posted a narrower-than-expected Q4 loss.
• CKE Restaurants Inc. (NYSE: CKR) Q1 earnings increased but its revenue slipped.
• Darden Restaurants Inc. (NYSE: DRI) swung to a Q4 profit on strong sales at Olive Garden.
• Ericsson (NASDAQ: ERIC) said it might not see Q2 profit growth on lower demand and shipping delays.
• General Mills Inc. (NYSE: GIS) Q4 earnings declined but were in line with expectations.
• Gerber Scientific Inc. (NYSE: GRB) reported solid Q4 and full-year results that pleased investors.
• IHS Inc. (NYSE: IHS) beat Q2 expectations and posted record quarterly cash flow from operations.
• Jabil Circuit Inc. (NYSE: JBL) stronger-than-expected Q3 results led to an analyst's upgrade.
• KB Home (NYSE: KBH) widened its Q2 loss due to weak sales and falling prices.
• Kroger Co. (NYSE: KR) beat Q1 expectations as consumers sought discounts on food and gas.
• Monsanto Co. (NYSE: MON) beat Q3 earnings estimates but fell short of revenue estimates.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q4 results boosted by international strength.
• Oracle Corp. (NASDAQ: ORCL) posted strong Q4 results that topped analysts' expectations (see transcript).

• Palm Inc. (NASDAQ: PALM) posted dismal results as revenue fell despite higher sales volume.
• Red Hat Inc. (NYSE: RHT) Q1 revenues soared as results beat Wall Street expectations.
• Research in Motion Ltd. (NASDAQ: RIMM) posted disappointing results and lackluster guidance (transcript).
• Rite-Aid Corp. (NYSE: RAD) swung ot a larger-than-expected Q1 loss on integration difficulties.
• Sonic Corp. (NASDAQ: SONC) earnings warning took shares to a new 52-week low.
• Symmetry Medical Inc. (NYSE: SMA) beat Q1 estimates on increased demand and acquisitions.
• United Parcel Serivce (NYSE: UPS) cut its earnings forecast due to rising fuel prices and less demand.
• Walgreen Co. (NYSE: WAG) posted sluggish Q3 results despite cost-cutting measures.

Also, do the results from Oracle, Research in Motion, and Red Hat point to a bottom for tech stocks? Will Google's (NASDAQ: GOOG) new CFO be more likely to provide the guidance that analysts crave?

Upcoming results to watch for include H&R Block (NYSE: HRB), Constellation Brands (NYSE: STZ), Apollo Group (NASDAQ: APOL), Family Dollar (NYSE: FDO), WD-40 (NASDAQ: WDFC), and Berkshire Hathaway (NYSE: BRK.A).

Visit AOL Money & Finance for more earnings coverage.

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Here's a quick recap of some additional earnings reports on Wednesday.

Beaverton, Ore.-based Nike Inc. (NYSE: NKE) said strong growth overseas helped boost its fourth-quarter profit by 12% to $490.5 million, or 98 cents per share. Analysts polled by Thomson Financial expected the company to earn 96 cents per share for the quarter. Shares fell more than 5% in after-hours trading to $62.15.

CKE Restaurants Inc. (NYSE: CKR) said its first-quarter profit climbed 8% to $16.6 million, or 31 cents per share, helped by a small increase in same-store sales at Carl's Jr. restaurants. Revenue fell 3% to $466.2 million. Analysts polled by Thomson Financial expected profit of 27 cents per share on revenue of $465.5 million. Shares fell 5 cents to $12.25 in after-hours trading.

Red Hat Inc. (NYSE: RHT) said its fiscal first-quarter profit rose 6.6% to $17.3 million, or 8 cents per share. Adjusted earnings were 18 cents per share. Revenue rose 32% to $156.6 million. Analysts polled by Thomson Financial on average predicted a profit of 18 cents per share on revenue of $153 million. Shares fell 19 cents in after-hours trading to $22.11.

General Mills Inc. (NYSE: GIS) said its fourth-quarter profit dropped 17% to $185.2 million, or 53 cents per share. Adjusted earnings were 73 cents per share, which met Wall Street expectations. Sales increased 13% to $3.47 billion beating expectations. The company reaffirmed its guidance for the full year. Shares fell almost 2% to $61.19.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) said its fiscal first-quarter profit tumbled 27% to $76.8 million, or 30 cents per share, as costs outweighed sales growth. Sales rose 6.1 percent to $1.65 billion, Analysts surveyed by Thomson Financial had expected a profit of 27 cents per share on $1.62 billion in revenue. Shares rose 8.5% in after-hours trading to $31.00.

Visit AOL Money & Finance for more earnings coverage.

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Food giants General Mills Inc. (NYSE: GIS) and ConAgra Foods Inc. (NYSE: CAG) are scheduled to report fiscal fourth-quarter earnings this week. While cereal-maker General Mills is expected by analysts surveyed by Thomson Financial to post higher profits, frozen-foods packager ConAgra is expected to report a profit decline.

General Mills is expected to report net income of 70 cents per share, up 11.4% from the same period of last year, on revenue of $3.4 billion. The company has tended to provided positive surprises recently -- by eight cents, or 10.4%, in the previous quarter.

Minneapolis-based General Mills is the second largest cereal-maker in the U.S., after Kellogg Co. (NYSE: K). Its other brands include Gold Medal flour, Bisquick, Hamburger Helper, Pop Secret, and Yoplait. The company had revenues in the past year of $12.4 billion and net income $1.1 billion. Its long-term EPS growth forecast is only 8.7%, much less than the industry average but about the same as Kellogg's. The consensus recommendation of analysts remains to buy General Mills.

Shares reached a 52-week high of $63.91 in early June, and closed Monday at $63.40.The share price is up 11.5% since the beginning of the year. It trades at a P/E ratio of 16.60.

ConAgra is expected to report net income of 36 cents per share, down 5.2% from the year-ago period, on revenue of $3.4 billion. The company has provided positive surprises recently -- by 22 cents, or 55.6%, in the previous quarter.

Omaha-based ConAgra is one of the nation's leading producers of packaged foods, as well as one of the largest food-service suppliers. Brands include Chef Boyardee, Egg Beaters, Healthy Choice, Orville Redenbacher's and PAM. In the past year, the company's revenues were $12.0 billion and its net income totaled $764 million. The company's long-range EPS growth forecast is only 8.2%, far less than the industry average and the S&P 500. But the consensus recommendation of analysts has swung from hold to buy ConAgra in the past 90 days.

Shares closed Monday at $22.22. The share price is down 6.6% year to date, and has fallen 12.7% from a year ago. It trades at a P/E ratio of 11.95.

General Mills is scheduled to report earnings Wednesday morning, ConAgra on Thursday morning.

For more news that could influence the results, see BloggingStocks' General Mills and ConAgra coverage.

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General Mills (NYSE: GIS), arch competitor of fellow cereal seller Kellogg (NYSE: K), posted some good news for shareholders on Monday. In an otherwise gloomy day that saw the Dow remain below the 12,000 level and inflationary pressures still exerting a hold over the market, General Mills proved that dividends are at least one island of safety in a sea of trouble.

The company indicated that it will now pay an annual dividend of $1.72 per share. Previously, the annual dividend was set at $1.57 per share. This is a nice example of double-digit appreciation of approximately 10%. Based on Monday's closing price, General Mills' stock now yields a hearty 2.7%.

As a long-term idea, General Mills is certainly one of the best. As I observed with Kellogg, you can put this one on perpetual dollar-cost-averaging. However, with the stock in 52-week-high territory, and with prices for commodities, especially corn, still exerting a negative effect on businesses, I'd be a bit cautious about entering just now. Is it possible one might get General Mills closer to a 3% yield? I can't predict the short-term future, but my gut says that a pullback is inevitable. Even with cool dividend increases, stocks can return to the low end of a 52-week range at any point. Just look at Coca-Cola (NYSE: KO) and the recent pressure its stock has been under. And Coke is a dividend stalwart. Nevertheless, I am bullish on General Mills' future. Just watch out for commodity trends, and perhaps remain patient for better prices on the shares.

Disclosure: I own Coke; positions can change at any time.

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General Motors (NYSE: GM) is recently down 56 cents to $13.23. Deutsche Bank has a Hold rating on GM. GM call option volume of 24,528 contracts compares to put volume of 37,879 contracts. GM July option implied volatility of 83 is above its 26-week average of 60 according to Track Data, suggesting larger price movement.

Fuel Systems Solutions (NASDAQ: FSYS) is recently up $6.24 to a seven-year high of $41.43. FSYS develops internal combustion engines to run on clean-burning gaseous fuels. FSYS option volume of 654 contracts compares to put volume of 52 contracts. FSYS July option implied volatility of 84 is above its 26-week average of 69 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Best Buy Inc. (NYSE: BBY) beat Q1 estimates as consumers spent their government stimulus checks.
• Carnival Corp. (NYSE: CCL) posted better than-expected Q2 results but offered cautious Q3 guidance.
• Cyberonics Inc. (NASDAQ: CYBX) beat Q4 expectations and offered full-year guidance.
• FactSet Research Systems (NYSE: FDS) had better-than-expected Q3 results and 500 new subscribers.
• General Mills Inc. (NYSE: GIS) raised its full-year guidance, sending shares up near the 52-week high.
• Goldman Sachs Group Inc. (NYSE: GS) results beat the previous quarter and analysts' estimates.
• John Wiley & Sons Inc. (NYSE: JW.A) doubled its Q4 earnings due to an acquisition.
• Life Partners Holdings Inc. (NASDAQ: LPHI) lifted its Q1 outlook after "best quarter" in company history.
• Lindsay Corp. (NYSE: LNN) Q3 profits nearly doubled, but the share price plunged anyway.
• Meade Instruments Corp. (NASDAQ: MEAD) narrowed its full-year net loss due to restructuring.
• Pall Corp. (NYSE: PLL) beat Q1 expectations on sales growth that was broadly based across markets.
• Titan Machinery Inc. (NASDAQ: TITN) beat Q1 estimates on strong demand for agricultural equipment.
• Vermont Pure Holdings Ltd. (AMEX: VPS) posted strong Q2 results despite a bad debt write-off.
• Western Union Co. (NYSE: WU) said 2008 profits would beat estimates and announced share buyback.

More earnings highlights from this week: Morgan Stanley, FedEx, Ford, GE, Circuit City and others

Also, BusinessWeek likes the earnings prospects for agricultural stocks such as Archer Daniels Midland (NYSE: ADM), Monsanto (NYSE: MON), and Deere & Co. (NYSE: DE).

Upcoming results to watch for include Walgreen (NYSE: WAG), Kroger (NYSE: KR), Bed Bath & Beyond (NASDAQ: BBBY), General Mills (NYSE: GIS), Monsanto (NYSE: MON), Nike (NYSE: NKE), Oracle (NASDAQ: ORCL), Research in Motion (NASDAQ: RIMM), ConAgra (NYSE: CAG), Discover (NYSE: DFS), McCormick (NYSE: MKC), Rite Aid (NYSE: RAD:), and KB Home (NYSE: KBH).

Visit AOL Money & Finance for more earnings coverage.

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General Mills (NYSE: GIS) shares are trading higher today after the company raised its fiscal-2008 earnings estimate to $3.52 per share, up from a range of $3.45 to $3.47 per share. Analysts are expecting a profit of $3.48 per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GIS.

After hitting a one-year low of $51.00 in January, the stock hit a one-year high of $63.91 earlier this month. GIS opened this morning at $61.13. So far today the stock has hit a low of $61.13 and a high of $63.37. As of 11:30, GIS is trading at $62.87, up $2.14 (3.5%). The chart for GIS looks bullish but deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $55 range. A bull-put credit spread is an options position that combines the purchase and sale of put 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 a 9.9% return in just four months as long as GIS is above $55 at October expiration. General Mills would have to fall by more than 12% before we would start to lose money. Learn more about this type of trade here.

GIS hasn't been below $55 since March and has shown support around $60 recently. This trade could be risky if the company's earnings (due out 6/25) disappoint, but even if that happens, this position could be protected by the support the stock might find at its 200 day moving average, which is currently around $58 and rising.

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 GIS.

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Talk about a tough time in the markets. Between the financial crisis and oil prices rising on an almost daily basis, with the Fed damned if it raises rates and damned if it doesn't, the floods in the Midwest are now threatening to make a trip to the supermarket much more expensive. Yes, break out the coupons and pray for sales, because, according to The Wall Street Journal [subscription], food prices are destined for one direction: higher. That's because a lot of farmland has been damaged, throwing the supply-demand dynamic into chaos.

What does this mean for investors? Look for potential pressure on the stocks of companies such as Coca-Cola (NYSE: KO), PepsiCo (NYSE: PEP), Kraft (NYSE: KFT), Kellogg (NYSE: K), General Mills (NYSE: GIS), and Hershey (NYSE: HSY). I happen to own Coke, and I've heard the news reports talking about how higher corn prices will affect Coke and Pepsi because they use corn syrup as an ingredient for their sodas. It's also been pointed out by others that PepsiCo owns Frito-Lay, and since that company manufacturers salty snacks such as Doritos and Tostitos (I love them both), corn prices will also have an impact on that division.

If you're a trader, be wary. We might be in for a rough ride this summer with not only the stocks I've mentioned here, but in a general sense. Since I own Coke, I've been acutely aware of the pullback experienced in that stock as the external pressures surround it. As I write this, the stock is trading at $54.27. The shares were over $65 during their wonderful stay at the 52-week-high suite. So, yes, buyers with short-term mentalities must be wary. However, long-term investors should look upon any pullbacks as potential opportunities for some of these food-selling companies. If you don't intend to trade, then adding to a Coke or Pepsi position might make sense.

Disclosure: I own Coke; positions can change at any time.

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Investors in GM (NYSE: GM) have hoped that overseas sales would help offset the tremendous weakness of the car company's U.S. operations. When it comes to Europe, no such luck. That leaves fewer and fewer places for the firm to make money.

According to Reuters, "General Motors Corp's head of European operations said rising oil prices, high commodity costs and the strength of the euro could drive European sales down to levels not seen in decades." Sales in China and Latin America are pretty much all that is left to push up margins.

It is fair to ask how much of this is GM's fault. The answer is a large amount of it. The core reason for the sales slump in Europe is the same as in the US: Gas prices are up. Fewer people may be buying cars, but when they are, they want fuel-efficient models. Firms like VW and Toyota (NYSE: TM) are sitting there waiting to whisk those customers into their showrooms.

Buicks and Cadillacs may sell well in China were the cost of gas is underwritten by the government. But GM's problems in Europe could have been, to some extent, avoided. Mile-per-gallon and miles-per-meter may sound different, but they really aren't.

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

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This post is part of a series on some of the most memorable companies that have disappeared.

Although the name Lionel, synonymous with electric model trains, is still the hallmark of that toy genre, the current Lionel LLC, is in no way directly connected to the original Lionel Corporation.

The root stock of Lionel trains, Lionel Corp., was founded in 1900 by Joshua Lionel Cowen and Harry C. Grant in New York City. However, that company did not originally set out to manufacture toy trains. At the outset, Lionel was in the business of manufacturing small electrical devices, including fans and light fixtures. Lionel's first model train was in fact a window display designed to attract customers to other Lionel products. The train display was an immediate hit with customers, who then wanted similar sets for themselves, and thus the toy train business was set in motion.

Lionel had a bumpy yet upward ride from the time of its incorporation until 1957. In that year, a convergence of factors quickly brought trouble upon the company. A shift in consumer preference from Lionel's classic "O" gauge trains to the smaller "HO" scale cut deep into Lionel's sales. Toy buyers also began taking greater interest in the automobile, which compounded the company's troublesome decline. Then began a series of critical yet unsuccessful business moves that finally drove the company to bankruptcy in 1967. In 1969, Lionel acquiesced to the reality of its financial troubles and its toy train legacy was sold in its entirety to General Mills (NYSE: GIS).

After selling it's toy train interests, Lionel continued down a tumultuous path in the pursuit of operating its own chain of toy stores. The company had highs and lows in that regard also, yet the decline of the company seemed to be in the cards. Competitive forces, corporate misguidance, and irreconcilable financial difficulties figuratively conspired to bring the company to its knees.

Finally, in June of 1993, Lionel announced its intent to liquidate assets and cease operations. Today, all that remains of the original Lionel Corporation is the stalwart Lionel name (a new company purchased the rights to the name). Now it is that new Lionel that proudly wears the patina of 108 years of childhood exuberance, and which is coupled with a deep loving respect for the railroads.

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I love coupons; who doesn't? They are, arguably, one of the most important marketing tools used by companies such as Procter & Gamble (NYSE: PG), Colgate-Palmolive (NYSE: CL), and General Mills (NYSE: GIS). I also love coupon distribution on the web, so I'm hoping a new technology reported on by BusinessWeek really takes off.

A company called Coupons, Inc. has developed a system dubbed Brandcaster. It essentially follows Google's (NASDAQ: GOOG) model of monetization. Depending on where you are on the web and what you are looking at, the Brandcaster will determine if a coupon may be applicable to you. It will then try to get you to access the coupon and print it up. Web sites who use the application will be given a cut of revenues generated from successful coupon printings. So, speaking hypothetically, if I'm on a site that's dedicated to video games, maybe this Brandcaster thing will someday tell me that I can print up a coupon allowing me to get $5 off a new software title.

If this is promoted properly, and if the value to consumer companies can be adequately communicated, then I think Coupons, Inc. has a hit on its hands. Like I say, people love coupons, and I think they are more likely to act on printing out a coupon then they are to, say, buy a product immediately online through a banner ad. I see this kind of advertising as being more effective over the long-term than other kinds of ads.

But, there's a significant challenge, in my opinion, to Coupons, Inc. and Brandcaster. I'm not sure how it is in all parts of the country, but in my area, there are many businesses, including a major regional supermarket chain, that are either very suspicious of Internet coupons or don't accept them at all. There's a good reason for this that probably goes without saying, but I'll say it anyway: the chance for counterfeit coupons is always there. I think web-coupon distributors are still a long way off from finding quality solutions to the piracy issue (or at least, that's the current perception from where I sit).

Nevertheless, I think this Brandcaster is neat. Companies signed up so far for the program include Kraft (NYSE: KFT), Kimberly-Clark (NYSE: KMB), and Clorox (NYSE: CLX), as well as the aforementioned General Mills. Apparently 200 coupons will be distributed to over 3,000 websites initially, with hopes that the network can grow to over ten times as many websites in a short period of time. I think this has a great chance for success.

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

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Sonoco Products Company (NYSE: SON) provides industrial and consumer packaging products, and packaging services. The industrial division makes paper cores, cones and tubes used by customers in the textile, paper, film, and construction industries. The consumer unit manufactures a variety of paper and plastic containers for food, chemicals, and personal care items. The packaging services unit provides supply chain management, artwork and displays. The firm conducts more than 300 operations in 35 countries. Customers include General Mills (NYSE: GIS), Wal-Mart Stores (NYSE: WMT) and William Wrigley Jr. Co. (NYSE: WWY).

Sonoco pleased investors last week, when it reported Q1 EPS of 54 cents and revenues of $1.04 billion. Analysts had been expecting 51 cents and $995.4 million. Management also guided Q2 EPS to 58-61 cents (60 cent consensus) and FY08 EPS to $2.44-$2.47 ($2.42 consensus).

SON shares popped on the news and have since been consolidating the gain in a bullish "pennant" pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", two "buys" and two "holds". The SON Price to Sales ratio (0.81) and Price to Book ratio (2.29) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 62% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $25.97 and $44.91. A stop-loss of $28.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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McDonald (NYSE: MCD) has issued a press release recently concerning the use of cellphone coupon marketing. The fast-food juggernaut wants its consumers to have the ability to snag a coupon whenever they desire and by
hooking up with a company called Cellfire, McDonald's is hoping it can establish a relationship with some of the
hip texters out there.

Cellphone users who download the Cellfire app can then text a certain number and receive a special code good for a specific offer. According to the release, McDonald's fans can take advantage of a free iced coffee promotion through April 27 in certain locations in Utah, Wyoming, and Nevada.

McDonald's knows we're an on-the-go society, and it obviously wants to leverage the fact that mobile devices are no longer just for talking -- we text, we play games, we surf the net, and, as I recently observed, we can even shop on Amazon on our cells (I say "we," but I should point out that I do not own a cell phone, believe it or not). However, as I stated in my previous post, I'm not so certain that Amazon's text-shopping service will take off.

In this case, though, I think consumers might indeed be apt to send a quick text and save some cash at their favorite fast-food joint. It's a simple protocol that just might inspire a significant amount of users to stop at their local Mickey Dee's establishment while running here and there. Certainly a lot of the youthful demographic will be targeted with this initiative.

I see the merit in this experiment. According to a Brandweek piece, consumer companies such as Procter & Gamble (NYSE: PG), Clorox (NYSE: CLX) and General Mills (NYSE: GIS) are also interested in coupon distribution via cellphones.

Obviously, traditional methods of distributing coupons won't disappear, but cell-phone marketing seems to me to be a great way to market to the youth and anyone who's away from home. Fast-food entities such as Burger King (NYSE: BKC) and Wendy's (NYSE: WEN), in addition to McDonald's, will benefit from an exploration of the limits of cell-phone targeted coupons.

Disclosure: I don't own shares in any of the companies mentioned here; positions can change at any time.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) first-quarter profit soared and it offered an encouraging outlook.
• AgFeed Industries Inc. (NASDAQ: FEED) full-year results were in line with expectations.
• Credit Suisse Group (NYSE: CS) warned that it expects a first-quarter loss due to write-downs.
• Discover Financial Services (NYSE: DFS) first-quarter profit plunged on the unloading of Goldfish
• FedEx Corp. (NYSE: FDX) posted lower-that-expected third-quarter earnings on rising fuel prices.
• 4Kids Entertainment Inc. (NYSE: KDE) posted dismal fourth-quarter and full-year results.
• GameStop Corp. (NYSE: GME) posted strong fourth-quarter earnings on Guitar Hero and other games.
• General Mills Inc. (NYSE: GIS) third-quarter profit surged on increased demand for Cheerios, yogurt, etc.
• Goldman Sachs Group Inc. (NYSE: GS) posted better-than-expected first-quarter earnings.
• Lehman Brothers Holdings Inc. (NYSE: LEH) posted better-than-expected first-quarter earnings.
• Lumber Liquidators Inc. (NYSE: LL) beat estimates on infrastructure investments and merchandise variety.
• Morgan Stanley (NYSE: MS) posted better-than-expected first-quarter earnings.
• Nike Inc. (NYSE: NKE) third-quarter profits soared on strong international demand.
• Shuffle Master Inc. (NASDAQ: SHFL) missed expectations for the first quarter.
• Siemens AG (NYSE: SI) lowered its earnings outlook on delays and order cancellations.

Also, Google Inc. (NASDAQ: GOOG) is recession proof? Ted Allrich wonders if there are any safe stocks. Jim Cramer doesn't expect much from tech stocks. And Aaron Katzman looks at the effect of rising grain prices.

Upcoming results to watch for include Walgreen Co. (NYSE: WAG), Tiffany & Co. (NYSE: TIF), Oracle Corp. (NASDAQ: ORCL), ConAgra (NYSE: CAG), and KB Home (NYSE: KBH).

Visit AOL Money & Finance for more earnings coverage.

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As grain prices continue to rise, fueled in part by increasing demand worldwide, as well as farmers turning over their fields to grow corn for ethanol, earnings out from General Mills, Inc. (NYSE: GIS), while good, were weighed down by those soaring grain prices.

According to an AP report: "The cost of grain has affected a number of companies, especially those that make cereals. Grain prices have skyrocketed largely due to demand for corn used to make the alternative fuel ethanol."

So now my Cheerios and Wheaties cost substantially more, partly in order to produce ethanol, which is a suspect alternative fuel that's being used to fight a suspect phenomenon, global warming. Legislators, together with environmentalists, have created global inflation, to fight a problem that some scientists don't think exists. Does that make sense?

Grain costs not withstanding, General Mills had a very strong quarter. Sales were up across the board and international sales grew by more than 20%. Could it be that the weak dollar, is starting to help the bottom line of U.S. multinationals?

Look for other consumer staples companies to potentially post strong earnings in upcoming quarters as they profit from the sagging greenback.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/19/08.

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