Tatum/Roulston Report

This month’s business conditions as reported in the Tatum Survey reflect the uncertainty corporations feel today. Confusing politics, an overwhelming media information flow and an increasingly complex international matrix continues to seemingly confuse directions. Regulation, health care and taxation seem to be the focus of virtually every company we talk to in interviews. Washington provides little direction and leadership. Actions reflect ineptitude dealing with oil spills, immigration or any other issue of the moment resulting in a general feeling of incompetence in resolving challenges we face today. The Tatum Survey once again reflects the mixed signals businesses feel in this environment. Orders, backlogs and employment show a mixed report of confusion of businesses that don’t seem to know how to look forward. Hiring in particular just seems to be the lightening rod of the frustration. Increasingly, it is the barometer both the markets and economists are focused on to cite how businesses in absence of clarity are hesitating to move forward.

It used to be as the US goes the world followed. Although this is still important, there are new factors influenced by emerging markets demand for products and services. This change and the technology revolution happening worldwide continue to impress us as underlying support for the economy and an important cog in the wheel that in the past became overly dependent on the US consumer. As the consumer deleverages and the government impact becomes more regulatory and less stimulative, the outlook will remain cloudy and confusing. Recent European debt concerns show us all where current trends can lead, and the markets responded to this with a sense of realization and questioning of “now what?” The age old question of inflation /deflation and growth/stagnation is in the air. Without the consumer, housing, such an important part of past cyclical growth in place, the new economy needs to truly become defined for the current frustration to disappear. The slam to the financial system has hurt confidence and investor apathy is prevalent. How do we grow wealth? This is a question that investors must be able to define to move forward.

Tatum LLC is a nationwide firm specializing in the providing financial and information technology services and executive fulfillment to companies across the country. This joint effort with Tatum is a unique partnership that will provide a differentiated view of business trends - The Tatum/ Roulston Report.

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Presenter Continues to Recommend Graftech

A New York presenter remains very positive on Graftech (NYSE: GTI, $15.28). The company will not be going on the road prior to the completion of the Seadrift Coke acquisition. The presenter is hearing that big steel players are behind the recent request from the Justice Department for more information about the proposed acquisition. The company still expects a clearance and a subsequent deal closure in 2010.

Roulston Consumer Chair Talks About U.S. Retail Sales

Craig Johnson, President of Customer Growth Partners LLC, and Chairman of Roulston Research's Consumer Group, shares his thoughts in an interview with Bloomberg TV on the outlook for U.S. retail sales.

To listen to Craig's interview click here.

Dissapointing Guidance, but Still Good Upside for Smart Balance

A New York presenter was definitely dissapointed by the lowered guidance offered by Smart Balance' management (NASDAQ: SMBL, $4.22) on the last earnings call. Nevertheless, he believes that the company's push in milk and other new products remains a reasonable strategy. SMBL's presence on supermarket shelves will continue to grow. The presenter still sees a takeover over a long-term, but his new buyout target is $10 rather than $12 he mentioned originally.

Still Positive on Corning

A New York presenter has recently met with Corning's management (NYSE: GLW, $16.91)and remains positive on the comany's prospects going forward. He anticipates a really solid Q2, with no major surprises. The longer-term story remains intact, but the stock has been pressured by concerns about peaking in the glass market and consumer challenges. The presenter is more excited about the guerilla glass potential than he was 3 months ago.

Updated Targets for SVR

A Dallas presenter continues to like Syniverse Holdings (NYSE: SVR, $20.38). He is projecting EPS of $2.01 for 201 and $2.25 for 2011, versus the Street's consensus of $1.89 and $2.08, respectively. His near-term target for the stock is $24, going up to $27 in 12 months.

Abraxis Bought Out

Our San Francisco presenter spoke of a high likelihood of a buyout for Abraxis (NASDAQ: ABII, $74.20) at our SF idea forum in April. The announcement today confirmed his view. ABII is getting acquired by Celgene, with the deal expected to be finalized in Q4. The stock was trading at $51 at the time of the presentation.