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Investing & Finance - Max G Publishing

Schulze Makes an Offer for Best Buy

10/08/12 09:38
Richard Schulze, the founder and former chairman of Best Buy (NYSE: BBY), recently made a purchase offer on the remaining shares of the company that he doesn’t already own.  This deal values the company at up to $8.84 billion.  The offer is worth $24 to $26 per share, representing a premium at the time of announcement of 36% to 47%.  Schulze already has a 20% ownership stake in the company and the offer appears to stem from his deep experience with the company and therefore interest in its long-term success.
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Home Improvement Making Deals

10/08/12 07:37
Home Depot (NYSE: HD) announced recently that they will be paying $12.50 per share to acquire US Home Systems (NASDAQ: USHS), a supplier of kitchen and bath products, representing a 38% premium for shareholders at the time.  This will allow Home Depot to boost its home service business.  The deal is expected to close by the end of the year.  US Home Systems manufactures, designs, sells, and installs custom kitchen and bathroom cabinets and organizational storage systems for closets and garages.  The company markets, sells, and installs its products and services through Home Depot.  Bringing US Home Systems under Home Depot’s roof assists in expanding its home service offerings even further.  The deal was unanimously approved by the US Home Systems board of directors.  The companies already had a long-standing business relationship, with the company already serving Home Depot in 66 markets in the U.S. plus two in Canada.
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Accessories on the Rise

10/08/12 07:35
Coach (NYSE: COH) increased 5% recently after being raised to a buy rating by a Canaccord Genuity analyst.  The analyst stated that the recent drop in the upscale handbag and accessories maker’s shares makes it an attractive investment.  Analyst Laura Champine noted that the company’s shares have fallen about 10% so far this year, while shares of similar luxury retailers have risen.  Coach has a 28% share in the U.S. handbag market, 17% in Japan, and 6% in China.  The company’s shares are currently trading at about 25% of other luxury retailers, where they have historically traded at about 15% below.  According to Champine: “We do not believe this discount is justified, given that Coach boasts industry-leading margins and returns.”  Coach does have a good track record.  The company has beaten Wall Street estimates in 85% of all quarters for the past five years.  However, in the most recent quarter, sales missed analysts’ projections in addition to the company’s own projections.  The company is facing rising competition from companies such as Michael Kors (NYSE: KORS) that are finding their way into the handbag category Coach previously dominated.
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Under Armour Resonates with Customers

26/07/12 15:27
Under Armour (NYSE: UA) recently reported a second quarter profit increase of 6.8%.  This increase was the result of sales growth across all segments, led by footwear, which experienced a 44% surge.  Accessories and apparel also experienced double-digit gains, which led to sales and earnings exceeding Wall Street’s expectations, although higher marketing expenses did have an effect on bottom-line growth.  The company is continuing to build on its 2011 success when net sales climbed 40% to $1.44 billion.
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JC Penney Redesigns

18/07/12 14:43
J.C. Penney (NYSE: JCP) recently made a bold move when it hired former Apple retail chief Ron Johnson last November.  Then, this April, the company also snagged Benjamin Fay, former Apple Senior Director of Retail Real Estate and Development.  The company is trying to re-brand itself and is already making plans to face lift several of its stores throughout the U.S.  J.C. Penney currently operates 1,100 stores.  According to its website, the company is “re-imagining every aspect of its business in order to reclaim its birthright and become America’s favorite store.  The company is transforming the way it does business and remaking the customer experience.”  However, the company may be facing resistance from within its own walls.
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Premium Furniture Heats Up

18/07/12 10:33
Though the numbers show that American consumers are spending less on furniture than they have previously, that does not go to say that all furniture companies are losing ground.  Similar to general retail and automotive, the high-end and luxury brands are still proving to be desired products.
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Target and Neiman Marcus Join Forces

10/07/12 16:02
Target (NYSE: TGT) and Neiman Marcus have joined forces to unveil a collection featuring more than 50 limited-edition gifts from 24 designers on December 1 this year, just ahead of the Christmas season.  The products will sell at prices from $7.99 to $499.99, with most costing less than $60.  Neiman Marcus held talks with Target for several years before it approached the company again in December about a potential partnership.  Target has introduced its own designer collections that have helped it increase store and online traffic.  Neiman Marcus has now introduced Target to its designers.  Target will oversee the sourcing and manufacturing for the collection.  The collaboration allows both companies to broaden their customer base and add to its selection of holiday gift items under $100.
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Michael Kors Earnings Not a Fluke

18/06/12 17:56
Michael Kors (NYSE: KORS) is one of the more widely known luxury brands. The company's namesake has garnered attention for both himself and his brand through judging reality tv show Project Runway. Kors' products include clothing, jewelry, and accessories for both men and women. The line also produces shoes and handbags in addition to fragrances. All of their products are equally known and liked. And, being headquartered in Hong Kong, the company has a large Asian fan base. Kors' earnings results, obtained from Daily Finance, were announced earlier this month, beating estimates and expectations. Their profit tripled creating a lot of buzz around the company. The company is more than just buzz, however. It is a good solid company.

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Motley Fool Blog Network "Fine Jewelry Will Prevail"

30/05/12 09:35
Global economic crisis might keep Wall Street bankers and Europe's elite from spending money on high dollar jewelry for not, but in the long-term the sparkly jewels will call their names again.  Shares of both Tiffany & Co. (NYSE: TIF) and Signet Jewelers Limited (NYSE: SIG), which owns Kay Jewelers and Jared the Galleria of Jewelry, declined just last week.  Both jewelers provided disappointing profit forecasts for the coming months.  Tiffany & Co. also noted a weaker first quarter profit, noting a loss of sales at its New York location.  There are several factors that are currently weighing heavily on the jewelers causing these disappointing forecasts.  Europe's debt crisis is one of them.  Both companies do significant business in Europe.  They also do significant business in China, which is showing signs of a slowing economy.  The U.S. is not faring much better for their business.  Wary shoppers, waning consumer appetites, and decreased spending by financial sector employees continues to eat away at jewelers' profits.
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Seeking Alpha "Guess Cash May Lure Buyers"

28/05/12 05:22
On Tuesday Guess (NYSE: GES) slumped to nearly a three-year low. The designer/retailer was valued at almost 3.5 times earnings before interest, taxes, depreciation, and amortization. That is the lowest of any apparel retailer in the U.S. and less than half of the median. This is Guess' first consecutive drop in profit in eight years. The global economic slump has done little to help in this area. Also, stiff competition is eroding the profit margins. Guess has sank 41% in the past year as the eurozone crisis undercut consumer demand and lower-priced brands pushed its operating margins to a six year low. This does not bode well for the company.

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Seeking Alpha "Big Lots Reports Earnings Miss"

28/05/12 05:20
Big Lots (BIG) posted some disturbing numbers for Q1 2012 when it reported earlier this week. The closeout retailer posted a net income decline of 22% on 5.5% higher sales. Earnings per share and adjusted earnings from continuing operations were both down. For Q2 2012, Big Lots expects to earn a mere 37 cents to 42 cents per share from continuing operations. Same-store sales are expected to range from slightly positive to slightly negative. This is a bit disconcerting, given that consumer spending is up and other retailers fared much better in the first quarter of this year.

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Seeking Alpha "Best Buy Gets Mixed Reviews"

25/05/12 08:10
Best Buy (BBY) posted its Q1 2012 financial figures Tuesday morning. Its Q1 2012 profit fell to $158 million from $212 million in the same quarter the year prior. However, revenue saw a slight increase to $11.61 billion from $11.37 billion in the same quarter the prior year. This could be a double-edged sword for the company. Profit slipped, but revenue topped estimates. One could interpret this to mean several things.

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Motley Fool Blog Network "The Vices"

25/05/12 08:08
I remember when I first stumbled across The Vice Fund (VICEX).  My first reaction was that there must be some very cynical people in this world.  My second reaction was that they are probably right.  Several socially responsible investing funds began popping up in response to this fund.  They were all outperformed by bad habits.  Giving up any bad habit such as drinking or smoking takes quite an emotional toll on a person.  When they have no job, their home is getting foreclosed on, and their car repossessed, the success rate for quitting smoking at the same time is pretty much zero.  The stress of quitting on top of financial worries does not mesh well.  Any good psychiatrist would agree with that.  So The Vice Fund, though cynical, had a point.
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Motley Fool Blog Network "Krispy Kreme Wins On Wall Street"

24/05/12 14:50
Krispy Kreme's (NYSE: KKD) Q1 2012 earnings beat out Wall Street expectations, proving that despite how much weight loss or obesity epidemic media is thrown at us, the U.S. still has a sweet tooth.  In addition to surpassing analysts' earnings per share Krispy Kreme also reported a revenue increase of 3.7% from Q1 2011.  The company reported higher consumer traffic and price increases as some of the major contributors to these better-than-expected numbers.
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Motley Fool Blog Network "Summer Means Home Improvement"

23/05/12 12:04
The first day of summer is only about a month away.  The kids will be out of school, the sun will be shining, trips will be taken, and some will be faced with a long list of home improvement tasks that has been carefully and thoughtfully compiled through the winter.  Landscaping, carpentry, and overall upkeep will make some of us look forward to fall.  Home improvement is a pretty hefty industry in the U.S. Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) are two of the largest home improvement stores in the nation.  They are gearing up for a big season.
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Motley Fool Blog Network "PVH: A Cheap Retail Buy"

05/05/12 09:37
PVH Corp. (NYSE: PVH) licenses, merchandises, distributes, and sells apparel lines such as Calvin Klein, Izod, Van Heusen, Chaps, Kenneth Cole, and Tommy Hilfiger.  PVH is the largest shirt company in the world and sells its products through 17,000 retail venues, including department stores and 1,000 stores of its own.
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Motley Fool Blog Network "Traditional Booksellers: Time to Evolve or Dissolve

03/05/12 17:50
Barnes & Noble (NYSE: BKS) is evolving to compete with its digital counterparts.  It developed the nook, its digital e-reader, to compete with the likes of the iPad and Amazon's Kindle.  Now B&N is entering a partnership with software giant Microsoft (NASDAQ: MSFT).  The companies will form a subsidiary, 84% of which is to be held by B&N.  One of their first plans for the subsidiary will be a nook application for the Windows 8 operating system.  Also, both companies stated that any patent litigation between them had been settled.  This new partnership is a great value for Barnes and Noble shareholders.  Especially, since the share price has pretty much doubled since the news of this partnership.  It seems like there are more good things to come for Barnes and Noble.
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Motley Fool Blog Network "Why Nike Is Still Fundamentally A Great Buy"

27/04/12 18:42
Nike (NYSE: NKE) is one of the world's largest manufacturers of athletic apparel.  They are also one of the most popular.  However, Nike is so much more than a manufacturer.  They are engaged in design, development, and marketing.  What is great about this company is that it evolves.  They will always be old school with the Air Jordan's and hi-top sneakers,  but they have realized that the morning runner or the late-night gym-goer are just as important as the team athletes.  That is the new school, catering to the individual athlete.  But they have been able to do so without losing their old customer base. Their newly acquired contract with the NFL doesn't seem to hurt things, either.
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