JC Penney (JCP) has come a long way since the once-proud retailer traded at a 30-year low and analysts were predicting $2.50 a share.� Sterne Agee’s Charles Grom and team aren’t sure how much further it can go, now that JC Penney has gained 70% since its Feb. 4 low. The reason: JC Penney management has set the bar too high:
…after working the numbers in detail, we believe management has set the comps/margin bar arguably high and with execution risk elevated and P&L losses looming, visibility into fair value is minimal…
Simply put, running the math implied by “break-even FCF guidance” suggests JCP believes the business will improve markedly in coming quarters. To this point, we can back into a rough net income number. Starting with zero FCF, we adjust upward by: (a) adding back $250.0 million in cap-ex and (b) subtracting out $630.0 million of D&A, resulting in a net “loss” of $380.0 million. Taking this one step further up the income statement, assuming 2Q-4Q comps of ~5.0% (FY14 guidance is “mid single-digits”) and keeping our other modeled P&L assumptions intact means that 2Q-4Q GPM needs to be ~39.9% in order for JCP to lose $380 million. Of course, this is likely too aggressive as JCP expects working capital to be a source of funds (although not quantified by the management team), which means the implied net loss as well as the implied comps/GPM would be lower.
Hot Regional Bank Companies To Watch For 2015: Lowe's Companies Inc.(LOW)
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.
Advisors' Opinion:- [By Brad Thomas]
Like many of the other Triple-Net REITs, Agree operates its investment platform with a variety of free-standing net lease tenants including many household names such as Walgreens (WAG), CVS (CVS), Staples, Chase Bank, AutoZone (AZO), Advance Auto Parts (AAP), Lowe's (LOW), McDonald's (MCD), Family Dollar (FDO), Harris Teeter, Dollar General (DG), and Wawa. As shown below, Agree has a majority (88%) of nationally-recognized tenants, including many investment grade retailers (62.6%).
- [By Rick Munarriz]
Home Depot (NYSE: HD ) and Lowe's (NYSE: LOW ) reported quarterly results this week, but they're no bargains. Home Depot stock is now fetching 19 times next year's earnings, and Lowe's is trading at a still-high 17 times next year's profit target.
- [By Maria Armental and Tess Stynes var popups = dojo.query(".socialByline .popC"); ]
Lowe's Cos.(LOW) said an extended period of wintry weather weighed on sales in the fiscal first quarter, although its profit still rose. The home-improvement chain’s earnings topped analysts’ expectations and the retailer pointed to improved sales in May. The retailer, citing a lower tax rate, also boosted its full-year earnings outlook. Shares fell 27 cents to $45.25 premarket.
- [By Chris Hill]
Home Depot (NYSE: HD ) reported higher-than-expected first-quarter earnings. Same-store sales were up more than 4% and the stock hit an all-time high. Competitor Lowe's (NYSE: LOW ) also reported a rise in first-quarter earnings but�same-store sales fell slightly. Shares of Lowe's also hit an all-time high. In this installment of Motley Fool Money, our analysts debate the merits of the two hardware retailers.
Hot Retail Stocks To Buy For 2014: Spectrum Brands Holdings Inc.(SPB)
Spectrum Brands Holdings, Inc., together with its subsidiaries, operates as a consumer products company worldwide. It offers consumer batteries, including alkaline and zinc carbon batteries, rechargeable batteries and chargers, and hearing aid batteries and other specialty batteries; pet supplies, such as aquatic equipment and supplies, dog and cat treats, small animal foods, clean up and training aids, health and grooming products, and beddings; and home and garden control products comprising household insect controls, insect repellents, and herbicides. The company also provides electric shaving and grooming devices; small appliances, including small kitchen appliances and home product appliances; electric personal care and styling devices; and portable lighting. Its sells its products through various trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors, and original equipment manufacturers primarily under t he Rayovac, Remington, Varta, George Foreman, Black & Decker, Toastmaster, Farberware, Tetra, Marineland, Nature?s Miracle, Dingo, 8-in-1, Littermaid, Spectracide, Cutter, Repel, Hot Shot, Black Flag, and TAT brands. The company was headquartered in Madison, Wisconsin. As of January 7, 2011, Spectrum Brands Holdings, Inc. operates as a subsidiary of Harbinger Group Inc.
Advisors' Opinion:- [By Ben Levisohn]
Shares of Energizer have jumped 15% to $112.37 at 10:24 a.m. today, while Spectrum Brands (SPB) has risen 1.4% to $76.88 and Kimberly Clark (KMB) has gained 1% to $112.14.
- [By Marc Bastow]
Consumer products manufacturer Spectrum Brands (SPB) raised its quarterly dividend 20% to 30 cents per share, payable on Mar. 18 to shareholders of record as of Feb. 19.
SPB Dividend Yield: 1.58%
Hot Retail Stocks To Buy For 2014: Lumber Liquidators Holdings Inc (LL)
Lumber Liquidators Holdings, Inc. (Lumber Liquidators) is retailer of hardwood flooring, and hardwood flooring enhancements and accessories. The Company offers an assortment of wood flooring, which includes prefinished domestic and exotic hardwoods, engineered hardwoods, unfinished hardwoods, bamboo, cork and laminates, as well as resilient flooring. Its flooring enhancements and accessories include moldings, noise-reducing underlay and adhesives. Lumber Liquidators and Bellawood are it brands. Its hardwood flooring products are available in various widths and lengths. It offers approximately 350 different flooring product stock-keeping units. In September 2011, it acquired certain assets of Sequoia Floorings Inc. (Sequoia) relating to Sequoia�� quality control and assurance, product development and logistics operations in China.
In June 2013, Lumber Liquidators Holdings Inc announced that the Company has opened its 300th store, located in Las Vegas, Nevada.
During the year ended December 31, 2011, the Company opened 40 stores. As of February 20, 2012, the Company operated 266 stores located in 46 states and Canada. During 2011, Lumber Liquidators opened its first stores in Canada. It operates a central distribution center located in Hampton, Virginia, supplemented by its facilities in Toano, Virginia. In addition, it operates a facility in Toronto, Canada, with both a store front and a small warehouse serving that metropolitan market. In 2011, Lumber Liquidators finished approximately 79% of its Bellawood products at its finishing facility in Toano, Virginia.
Solid Hardwood
The Company�� solid hardwood products are milled from one thick piece of wood, which can be sanded and refinished numerous times. It offers flooring products made from more than 25 wood species, including both domestic woods, such as ash, beech, birch, hickory, northern hard maple, northern red oak, pine and American walnut, and exotic woods, such as bloodwood, cherry, cypress, e! bony, koa, mesquite, mahogany, rosewood and teak. Lumber Liquidators sells these products either prefinished or unfinished.
Engineered Hardwood
The Company�� engineered hardwood products are produced by bonding a layer of hardwood to a plywood or fiber board backing. Its engineered hardwood floors are offered in domestic and exotic wood species, and in either glue down or floating application. All of its engineered hardwood products are prefinished. Engineered flooring is designed primarily to be installed in areas where hardwood is not conducive, such as slab construction, basements and areas where moisture may be a factor.
Laminates
Lumber Liquidators Holdings, Inc.�� laminate flooring is constructed with a fiber board core, inserted between a melamine laminate backing and photographic paper displaying an image of wood and a ceramic finish, abrasion-resistant laminate top. Its laminate flooring brands allow for easy-click installation, and some include a pre-glued undersurface, moisture repellent, soundproofing, single-strip format or a handscraped textured finish.
Moldings and Accessories
Lumber Liquidators offer a variety of wood flooring moldings and accessories. It sells stair treads and risers in both finished and unfinished versions. Accessories include underlayments that are placed between the new floor and the sub-floor, insulating sound and cushioning the floors. In addition, it sells installation supplies, such as sealers, adhesives and trowels, floor cleaning supplies, and butcher-block kitchen countertops.
Bamboo and Cork
The Company�� bamboo products, harvested from the bamboo plant, are offered as a prefinished, natural or stained, solid or engineered floor. Its cork flooring is produced by harvesting the outer bark of the cork oak tree.
Advisors' Opinion:- [By Sean Williams]
What: Shares of discount flooring specialist Lumber Liquidators (NYSE: LL ) soared as much as 14% after its first-quarter results handily topped Wall Street's estimates.
- [By Jayson Derrick]
Lumber Liquidators (NYSE: LL) tumbled, and tumbled fast following Whitney Tilson presenting the company as a short idea at the Robin Hood Investors Conference. Shares immediately fell almost nine percent, then continued lower throughout the afternoon before closing the day lower by 11.78 percent at $101.77.
- [By Steve Symington]
If that sounds familiar, it's because Tile Shop's hardwood counterpart in�Lumber Liquidators (NYSE: LL ) follows nearly the exact same business model by negotiating directly with the lumber mills which produce its products. Of course, this is also the same Lumber Liquidators that recently taught me a humbling lesson�after I doubted its seemingly rich valuation.
- [By Rick Munarriz]
Then we have Trex (NYSE: TREX ) and Lumber Liquidators (NYSE: LL ) , the wood-alternative decking and hardwood-flooring retailers that posted double-digit revenue growth in their most recent quarters. Yes, those stocks trade at slightly higher multiples, but in this video longtime Fool contributor Rick Munarriz explains why they are worth it and why it might be time to trade in the orange aprons for a better alternative to both Lowe's and Home Depot stock.
Hot Retail Stocks To Buy For 2014: The Pantry Inc.(PTRY)
The Pantry, Inc. operates a chain of convenience stores in the southeastern United States. The company?s stores offer a selection of merchandise, fuel, and ancillary products and services. Its merchandise products include cigarettes, grocery and other tobacco products, packaged beverages, beer, and wine. The company operates stores under various selected banners, which primarily include Kangaroo Express. As of September 29, 2011, it operated 1,649 convenience stores located in Florida, North Carolina, South Carolina, Georgia, Alabama, Tennessee, Mississippi, Virginia, Kansas, Kentucky, Louisiana, Indiana, and Missouri; and 233 quick service restaurants. The company was founded in 1967 and is headquartered in Cary, North Carolina.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of The Pantry (NASDAQ: PTRY ) were down as much as 15% today after the convenience-store chain posted a second-quarter loss and missed Wall Street estimates.
- [By Geoff Gannon]
For one thing, I can�� tell a great oil company from a not so great oil company. I can�� evaluate the company�� culture, management, etc. There was no way I was ever going to answer questions like that. But I can easily split Murphy�� U.S. retail business from its other operations. And I can compare that part of the company to other public companies like Pantry (PTRY) and Susser (SUSS). I can also ��this is much harder ��look at Murphy�� reserves and compare them to other oil companies��reserves. The SEC now requires a standardized way of reporting discounted net cash flows for all oil companies. So, there�� certainly a specific number available for every company. Whether it�� a very good number or not depends on the assumptions the method uses.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Pantry (Nasdaq: PTRY ) , whose recent revenue and earnings are plotted below.
Hot Retail Stocks To Buy For 2014: Ross Stores Inc.(ROST)
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home accessories stores under the Ross Dress for Less and dd?s DISCOUNTS brand names in the United States. Its Ross Dress for Less brand stores sell brand and designer apparel, accessories, footwear, and home fashions for the entire family at everyday savings of 20 to 60 percent off department and specialty store regular prices; and dd?s DISCOUNTS brand stores sell apparel, accessories, footwear, and home fashions for the entire family at everyday savings of 20 to 70 percent off moderate department and discount store regular prices. As of January 29, 2011, the company operated 1,055 stores, of which 988 were Ross Dress for Less brand stores in 27 states and Guam, and 67 were dd?s DISCOUNTS brand stores in 6 states. Its Ross Dress for Less brand stores primarily target middle income households and dd?s DISCOUNTS brand stores target moderate income households. Ross Stores, Inc. was found ed in 1957 and is headquartered in Pleasanton, California.
Advisors' Opinion:- [By GuruFocus] ref="http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner">Tom Gayner initiated holdings in Ross Stores, Inc.. His purchase prices were between $59.26 and $66.5, with an estimated average price of $64.05. The impact to his portfolio due to this purchase was 0.04%. His holdings were 18,000 shares as of 06/30/2013.
New Purchase: Carlyle Group LP (CG)
Tom Gayner initiated holdings in Carlyle Group LP. His purchase prices were between $24.19 and $32.87, with an estimated average price of $29.56. The impact to his portfolio due to this purchase was 0.02%. His holdings were 20,000 shares as of 06/30/2013.
Sold Out: EOG Resources (EOG)
Tom Gayner sold out his holdings in EOG Resources. His sale prices were between $113.44 and $137.9, with an estimated average price of $128.22.
Sold Out: State Street Corp (STT)
Tom Gayner sold out his holdings in State Street Corp. His sale prices were between $56.51 and $67.44, with an estimated average price of $62.2.
Sold Out: Bunge Ltd (BG)
Tom Gayner sold out his holdings in Bunge Ltd. His sale prices were between $66.4 and $73.51, with an estimated average price of $70.39.
Added: UnitedHealth Group Inc (UNH)
Tom Gayner added to his holdings in UnitedHealth Group Inc by 45.25%. His purchase prices were between $58.54 and $66.09, with an estimated average price of $62.22. The impact to his portfolio due to this purchase was 0.4%. His holdings were 569,800 shares as of 06/30/2013.
Added: Liberty Media Corporation (LMCA)
Tom Gayner added to his holdings in Liberty Media Corporation by 102.38%. His purchase prices were between $108.75 and $130.01, with an estimated average price of $119.32. The impact to his portfolio due to this purchase was 0.2%. His holdings were 85,000 shares as of 06/30/2013.
Added: National Oilwell Varco, Inc. (NOV)
Tom Gayner added to his holdings in National Oilwell Varco, Inc. by 40.44%. His purchase prices were between $64.14
Hot Retail Stocks To Buy For 2014: Ulta Salon Cosmetics and Fragrance Inc (ULTA)
Ulta Salon, Cosmetics & Fragrance, Inc. (Ulta), incorporated on January 9, 1990, is a beauty retailer, which provides one-stop shopping for prestige, mass and salon products and salon services in the United States. During the year ended January 28, 2012 (fiscal 2011), the Company opened 61 new stores. It operates full-service salons in all of its stores. Its Ulta store format includes an open and modern salon area with approximately eight to 10 stations. The entire salon area is approximately 950 square feet with a concierge desk, skin treatment room, semi-private shampoo and hair color processing areas. Each salon is a full-service salon offering hair cuts, hair coloring and permanent texture, with salons also providing facials and waxing.
The Company offers products in the categories, such as cosmetics, which includes products for the face, eyes, cheeks, lips and nails; haircare, which includes shampoos, conditioners, styling products, and hair accessories; salon styling tools, which includes hair dryers, curling irons and flat irons; skincare and bath and body, which includes products for the face, hands and body; fragrance for both men and women; private label, consisting of Ulta branded cosmetics, skincare, bath and body products and haircare, and other, including candles, home fragrance products and other miscellaneous health and beauty products. The Company has combined its three operating segments: retail stores, salon services and e-commerce, into one reportable segment.
The Company competes with Macy��, Nordstrom, Sephora, Bath & Body Works, CVS/pharmacy, Walgreens, Target, Wal-Mart, Regis Corp., Sally Beauty and JCPenney salons.
Advisors' Opinion:- [By Selena Maranjian]
Among holdings in which Lone Pine Capital increased its stake are Intuitive Surgical (NASDAQ: ISRG ) and Ulta Salon (NASDAQ: ULTA ) . Intuitive Surgical, specializing in robotic surgical equipment, has had a bumpy year, thanks to bearish comments from a research company and questions about the efficacy of its systems. Some legal worries were eased recently, with a victory in court. While some wonder whether the company's growth prospects are slowing down, others love the company's competitive advantages and dominance in its promising market.
Hot Retail Stocks To Buy For 2014: Firstin Wireless Technology Inc (FINW)
Firstin Wireless Technology, Inc., formerly Passionate Pet, Inc., incorporated on September 30, 2010, is a mobile service provider. The Company is a software-based mobile service provider that enables enterprises and business users to make affordable and business-quality international long distance and roaming calls over its hybrid mobile VoIP (HY-mVoIPTM) technology. Its service does not replace a user�� existing wireless service, it augments it with global communication capabilities. The Company's application is free to download, and is available on Apple iPhone, Blackberry and Android smartphones.
The Company provides international long distance and roaming services to enterprises and business travelers over smartphones. Business users need to download the Firstin application onto their smartphones to allow them to place and receive international long distance and roaming calls from anywhere in the world for a fixed monthly fee and unlimited usage. The Company intends to revolutionize business mobile communications by spearheading the enterprise mobile VoIP revolution allowing for anywhere, anytime, business-quality and low-cost voice and data communications over smartphones.
Advisors' Opinion:- [By Peter Graham]
A look at SofTech, Inc�� financials reveals revenues of $1,375k (most recent reported quarter), $1,558k, $1,458k and $1,772k for the past four quarters along with net losses of $266k (most recent reported quarter), $51k and $14k and net income of $252k. At the end of August, SofTech, Inc had $828k in cash to cover $2,717k in current liabilities and $5,445k in total liabilities. Given the recent Asset Purchase Agreement and the deal with lenders, it would be good to wait for some more financials to see how SofTech, Inc�� balance sheet has improved.
Firstin Wireless Technology Inc (OTCMKTS: FINW) Has Been Quiet Since FebruarySmall cap Firstin Wireless Technology is a mobile communications company that is leading the shift to the enterprise mobile VoIP revolution through its mobile telephony platform and apps, including a flagship Firstin solution that allows for anywhere, anytime mobile communications at significant cost reductions. On Friday, Firstin Wireless Technology closed at $0.255 for a market cap of $8.57 million plus FINW is down 3,087.5% over the past year and down 78.7% since August 2011 according to Google Finance.
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