Retail/Manufacturing

  • The Star joins the parade against the Brewers Retail-

    Our pals at The Toronto Star launched a two-part series yesterday titled “The real reason your beer costs more than it should“. They are understandably focused on the ownership situation at The Beer Store.

    According to a poll, 6 out of 10 customers believe that the Ontario Government owns these retail beer outlets, not three international brewing conglomerates. There’s also a piece on the strangeness that is the ban on corner store beer, unless you live in anywhere north of urban Ontario, such as the intersection of Highways 6 & 10, where beer is sold cheek by jowl with pop and chips at the Minimart.

  • PPI and Retail Sales-

    The reports reflect the reality of rising gas and food prices but don't change the economic outlook.

  • Another Retailer (Canary in Coal Mine) Down - Steve & Barry's- A few months ago we discussed the beginning bankruptcies - the first major retailer, Linen 'n Things, bit the bullet back then. [Apr 11: This Day in Bankruptcies - Another Airline and Our First Major Retailer] Now we have news of another major retailer, this one a major mall tenant - Steve & Barry's. This store has actually always amazed me - you walk in there and you can get a jacket for $9. I had no idea how they did it, but whatever they did, it was not working out. Sort of ironic since it was the type of store you would think would be thriving in the 'Pooring of America' scenario.
  • Buffalo Wild Wings reiterates 2008 outlook- Buffalo Wild Wings reiterates 2008 outlook

    Tue Jul 8, 2008 4:05pm EDT

    BANGALORE, July 8 (Reuters) - Restaurant operator Buffalo Wild Wings Inc (BWLD.O: Quote, Profile, Research, Stock Buzz) reiterated its estimate of a 25 percent net income growth in 2008 at the Oppenheimer consumer growth conference on Tuesday, as it sees lower spending on new restaurants for the remainder of the year.

    The company said it had taken most expenses related to opening new restaurants and the conversion of eight Don Pablo restaurants in the first two quarters of the year. Buffalo Wild Wings expects more of the year-over-year net income growth to be realised in the second-half of the year, excluding one-time costs related to an acquisition of Las Vegas restaurants, CEO Sally Smith said.

    ...

    The Minneapolis-based company does not plan to raise menu prices in the third quarter when it will be bringing out a new menu design.
  • Analysis of Hansen's New Low- Note: This was originally written on July 3, 2008.

    Today Hansen has been smacked down to $25, so I thought I'd take a look into it and see if there is good reason for the drop. The stock is at a new 52 week low and it actually hasn't been at these levels since 2006. I already own a bundle of Hansen stock, but an opportunity is an opportunity and I'm willing to increase my position if one is presented.

    First, let's do a quick summary of the company's 1Q 2008 results. Net sales increased 27.9% to $212.2 million, net income increased 42.6% to $28.8 million ($0.29 per share) from $20.2 million ($0.21 per share) in 1Q 2007. The Monster brand remains strong and the new drinks in the Monster and Java Monster lines are proceeding as planned. Plans to expand the Monster line into the U.K. are going along as expected.$159.11 million in cash with no debt. One thing that isn't pleasing to see is that cash flow decreased to $25.93 million from $48.03 million in 1Q 2007. In the 10-Q, the decrease is explained a bit more:
  • Three reasons to buy consumer staples right now!- Mr Market has been in a good mood these days. The recent upward movement in stock prices has led to a return of investor’s risk appetites. While we may very well trend higher, it may be a wise idea to consider a shot of consumer staples in your portfolio. Here’s why: * The arguments for and against a recession are purely academic. The simple fact is that we are looking at below trend GDP growth for at least the next 2 years, and possibly a decline in GDP per capita. Right now, large caps with consistent cash flows are trading at historically cheap valuations. As the investing boat tosses and turns, investors will begin to pay up for companies generating stable consistent cash flows that are impervious to a slowdown. Advantage: consumer staples.
  • Foot Lockers Achillies Heel- My scans of the stock charts this week are showing a nice short sell on a famous tennis shoe retailer. It sold off about 5% on Friday after the unemployment rate hit 5.5%, oil spiked back up to $11.00 to end the day at about $138 a barrel, and an analyst at research firm Sterne Agee posted a hold rating on this stock giving it a $12.00 price target. Short Sell: Foot Locker. Ticker FL
  • Stock Picks for a Troubled Market- I am tired of all the gloom and doom that most analysts are reporting on the casual dining sector. There are a few standouts with valuations absurdly low and ready for the taking. Over the past 10 years the casual dining segment has mushroomed and it is now experiencing a natural pullback. A number of chains have had uncontrolled growth including Ruby Tuesday, TGI Fridays, Macaroni Grill, Lone Star Steakhouse and Applebees and stock prices have suffered and some chains have sold to private equity.
  • Hot Stock: Wal-Mart’s Little Known Secret Can Make You Wealthy-

    walmart logoIf you had invested $5000 in Wal-Mart back in 1971, today that investment would be worth over $10 Million. They say hindsight is 20/20, but knowing what you know today about Wal-Mart would you pass up the opportunity to invest in the world’s largest retailer in the world for less than $4 dollars a share? Let me explain how lightning might be striking twice again for some investors of Wal-Mart.

  • Kohl’s (KSS): Most Attractive Relative to Retailers: Costco (COST), Target (TGT) & Wal-Mart (WMT)-
  • Office Depot Looks Cheap Relative to Peers- Office Depot Corporation (NYSE: ODP) has dropped to around $23 from a 2007 high of nearly $40. Analysts have been cutting back their earnings estimates amid worries of a softening economy as well as management announcing a reduction in planned new store openings. Pessimism surrounding ODP and the outlook for the retail sector presents a buying opportunity for Office Depot shares with significant upside potential.