For Under Armour, the pick is Visible outlet square footage growth, as well as new line extensions, and even its move away from sweat repellent form-fitting materials into the cotton-based market.  The firm expects over 25% top-line growth as a result.

For Foot Locker, the firm does not expect a deceleration in the athletic footwear cycle that has been driving solid comp growth in running and basketball.  The firm is also looking at the company’s opportunity to improve its margin structure through changes to its apparel business that are less top-line dependent.

Both companies have some overlaps in the customer bases.  Canaccord Genuity sees several trends to watch during 2012: 

• The firm expects broader price increases during 2012 as many companies are planning to pass on higher costs with some seeing no pushback and others being forced to mark down price.
• The athletic cycle is expected to continue in 2012 with footwear trends in running and in basketball.  The new lightweight shoes for running, based on past new product cycles, could persist for three to five years and the current cycle is robust.  This is also believed to be a secular trend towards a more active and athletic lifestyle.
• Tier 1 brands should dominate with brands having better pricing power than Tier-2 and Tier-3 retail stories.

What is interesting is that the report starts out, “Heading into 2012, we are not assuming a significant improvement to the consumer spending environment, which will likely continue to be pressured by high unemployment and low wage growth. In addition, price increases from both apparel and footwear manufacturers will begin to flow through…”

As far as the targets…. The most recent Under Armour price target is $102.00 versus a Thomson Reuters consensus price target objective of $82.00 and versus a $73.00 price target today. Canaccord Genuity is the ‘Street High’ price target objective in Under Armour.  The most recent Foot Locker price target is $30.00 versus a Thomson Reuters consensus price target objective of $27.00 and versus a $23.67 price target today.  The ‘Street High’ price target is $34.00.

JON C. OGG

Skip to the eight worst-performing retail chains in America

Analysts predict that the holiday shopping season will be difficult for many retailers this year. The National Retail Federation reported that industry sales will be up only 2.8% to $465.6 billion, not enough to make up for three brutal years. Thousands of stores have been closed as a consequence of a drop in retail activity because of the recession. Stores closures for many retailers will continue.

Several of the largest retailers have consistently performed poorly between 2005 and 2010 for reasons that go beyond the recession. 24/7 Wall St. has identified the eight retailers that lost the most in total sales during that period. The stores that fared the worst have a great deal in common.

First, some specialty retailers compete with larger chains. This is certainly the case for Foot Locker because the big box retailers and most department stores sell high-end athletic shoes.

The presence of direct competitors that are similarly sized is yet another reason for the poor performance of some stores on the list. The office products retail sector is occupied by Office Depot, Office Max and Staples. Walmart’s Sam’s Club has created lines of merchandise that also compete in the same market.

The third reason that some of the retailers have done poorly is weak management. Robert Nardelli was a former Jack Welch lieutenant at GE. Nardelli was passed over for Welch’s job. He was hired by Home Depot to run the company after he failed to get the promotion. Between 2000 and 2007, Nardelli managed to alienate both employees and shareholders with poor results and his extravagant pay packages. JCPenney has had similar management problems. Poor merchandising decisions by CEO Mike Ullman, who has run the company since 2004, hurt revenue. He was recently replaced by the head of Apple’s retail store operation, Ron Johnson.

The retail industry has fared relatively well in the past five years, despite the recession, buoyed by strong sales during 2005 to 2007. GDP grew by 16% over these same five years. Also, most big operators have been able to increase revenue since the middle of the last decade. U.S. Sales at industry giants such as Walmart, Target and Costco have risen by 21%, 13% and 28%, respectively. With $600 billion a year in combined sales, the trio are a reasonable proxy for the entire industry.

To identify the large retailers in America with the worst sales, 24/7 Wall St. reviewed data published by National Retail Federation’s Stores Magazine. We relied on “Top 100 Retailers” list to identify the retailers that had lost the most in annual retail sales from 2005 to 2010. Only public companies were ranked in order to demonstrate how declining sales affect the overall health of corporations. Because sales numbers can be distorted, companies with significant M&A activity were also excluded.

These are America’s eight disappearing store chains.

Our current screen yielded nine retailers in different retail segments.  Apparel, discount stores, groceries, home improvement:  they are all there.  We list the companies in order of the size of the dividend yield in descending order: The Home Depot, Inc. (NYSE: HD); Foot Locker, Inc. (NYSE: FL); Wal-Mart Stores Inc. (NYSE: WMT); Staples, Inc.  (NASDAQ: SPLS); Target Corp. (NYSE: TGT); Safeway Inc. (NYSE: SWY); Gap Inc. (NYSE: GPS); Lowe’s Companies Inc. (NYSE: LOW); Nordstrom Inc. (NYSE: JWN).     Lastly, there is the Retail HOLDRs (NYSE: RTH) and the SPDR S&P Retail (NYSE: XRT) for investors consider.

The nine companies pay dividends ranging from 2.1% to 2.9%.  Beyond attractive dividends,  these companies boast additional positive characteristics including: EPS growth this year exceeding 12%; forward PE’s lower than 13; price to free cash flow (P/FCF) per share lower than 28.50; returns on Equity (ROE) greater than 10%.  All boast good liquidity with an average daily trading volume exceeding 2 million shares. As you can see, something for value investors, income investors, and others.

Except where otherwise noted, the source for all performance and financial data is Finviz.com. There is one other thing for income and retail-sector investors to remember.  Some of these have much more implied upside to what Wall Street is targeting.  We evaluated the implied upside to Thomson Reuters analyst targets so that we could weed out those companies trading above their implied value.

The Home Depot, Inc. (NYSE: HD) pays a 2.9% dividend with an earnings-to-dividend payout ratio 45.7%. Home Depot’s  shares closed at $34.53 Friday. Its 52-week price range is $25.82 to $38.82.  Home Depot has an implied upside of about 19% to its consensus Thomson Reuters analyst price target of $41.04. The most recent upgrades in both Lowe’s and Home Depot got it names as one of the “Top 10 Analyst Calls of the Week” this last weekend as well.

Foot Locker, Inc. (NYSE: FL) pays nearly 2.9% in dividends with a payout ratio of 46.6%.
The company’s forward PE is a modest 12.8, but is among the highest among this group of retailers.  At 10.2%, its return on equity (ROE) is among the lowest on this list.  Foot Locker’s  shares closed at $22.82 Friday.  Its 52-week price range is $11.30 to 25.50. Foot Locker, Inc. has an implied 22% to its consensus Thomson Reuters analyst price target of $27.82.

Wal-Mart Stores Inc. (NYSE: WMT) pays almost 2.8% in dividends with a payout ratio of 29.2%.   Wal-Mart’s  shares closed at $52.82 Friday. Its 52-week price range is $46.59 to 57.12.

Wal-Mart Stores Inc. has an implied upside of about 15.5% to its consensus Thomson Reuters analyst price target of $61.00.  For whatever it is worth, that $61.00 price has only been hit once in the last 5-year period.  Wal-Mart is also in that buyout plan which we have argued could even be large enough to eventually almost take itself private if maintained year in and year out.

Staples, Inc.  (NASDAQ: SPLS) pays a 2.6% dividend with an earnings-to-dividend payout ratio 29.7%.  The share price of Staples closed at $15.35 Friday. Its 52-week price range is $14.75 to 23.63. Staples has an implied upside of about 28% to its consensus Thomson Reuters analyst price target of $19.71.

Target Corp. (NYSE: TGT) pays almost 2.6% in dividends with an earnings-to-dividend payout ratio of 24%.  Target’s  shares closed at $46.53 Friday. Its 52-week price range is $46.15  to  60.40. Target Corp. has an implied upside of about 28% to its consensus Thomson Reuters analyst price target of $46.99.

Brocade Communications Systems, Inc. (NASDAQ: BRCD) is trading more like Broke-Cade at the Arcade after earnings.  While we expected weak earnings, this is still one of our few stocks which can double over the next couple of years.  Shares closed down 3% at $5.87 today, and then the stock is down almost 9% at $5.35 on over 2.5 million shares since the closing bell. Keep in mind this is averaging about 24 million shares a day now.

Celldex Therapeutics, Inc. (NASDAQ: CLDX) had a bad day with a 14% drop to $7.68, but in the after-hours session the stock is down another 19% at $6.20 on another 68,000 shares since the closing bell.  Someone yelled out “Sell-Dex!” it seems.

Dell Inc. (NASDAQ: DELL) is off the earlier lows after earnings failed to impress.  We have seen 3,270,435 shares trade since the close and shares are down 3.8% at $13.77 after the stock closed lower at $14.32 today.

Foot Locker, Inc. (NYSE: FL) is trading higher with a 74% profit gain and after beating earnings expectations.  Shares were up over 6% in the after-hours session but shares are now up 4.17% at $14.00.

Hot Topic, Inc. (NASDAQ: HOTT) closed down  almost 10% in regular trading after posting a loss.  But shares have slid further by 9.8% at $5.30 on 63,000 shares since the closing bell.

Marvell Technology Group Ltd. (NASDAQ: MRVL) is trading higher after earnings showed it moved from a loss to a $206 million profit above estimates.

Nordson Corporation (NASDAQ: NDSN) beat earnings as sales rose 33% and the stock is up 5% at $66.00 on only 7600 shares.

Salesforce.com Inc. (NYSE: CRM) is down and it may finally have to start worrying about that incredibly high P/E ratio.  Shares closed down 3% at $79.03 and shares are down another 6.2% at $74.10 in the after-hours session.  While sales rose 24%, its net income after items was down and its guidance was short of some expectations.

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) beat first quarter results, but its lower guidance left holders feeling like they own stock in a buger joint called Dead Robin.   Shares closed down 6.3% at $23.56 in normal trading, and Dead Robin is down another 11.3% in the after-hours session at $20.90 on 33,000 shares since the closing bell.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Aixtron Aktiengesellschaft (NASDAQ: AIXG) Started as Buy at UBS.
BlackRock, Inc. (NYSE: BLK) Cut to Sell at Citigroup.
CNOOC Ltd. (NYSE: CEO) Cut to Neutral at HSBC.
Devon Energy Corporation (NYSE: DVN) Raised to Outperform at Scotia.
Foot Locker (NYSE: FL) Raised to Outperform at FBR.
Gap Inc. (NYSE: GPS) Started as Buy at SunTrust Robinson Humphrey.
Human Genome Sciences (NASDAQ: HGSI) Started as Buy at Jesup & Lamont.
J. Crew Group (NYSE: JCG) Raised to Outperform at KBW.
Marathon Oil Corporation (NYSE: MRO) Cut to Sector Perform at Scotia.
Research-in-Motion Ltd. (NASDAQ: RIMM) Cut to Sell at Goldman Sachs.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

We have compiled data and analysis here using Thomson Reuters consensus estimates, recent metrics offered by the companies, relative performance, and more.  As with what we have seen at most retail and apparel earnings this week and last, many of these are richly valued and probably cannot just hope to please the bulls by meeting estimates on cost cutting and inventory management and then giving cautious guidance.

Dick’s Sporting Goods Inc. (NYSE: DKS) estimates are $0.09 EPS and $961.5 million, both higher than last week’s estimates; estimates for the holiday quarter are $0.57 EPS and $1.27 billion in revenues, both also higher than last week.  With shares at $24.60, its 52-week trading range is $9.21 to $26.00.  A look at forward annual earnings estimates of $1.13 EPS for Jan-2010 and $1.29 for Jan-2011 will bring up some of the same valuation concerns we have seen elsewhere in retail.

Foot Locker Inc. (NYSE: FL) estimates are $0.13 EPS on $1.19 billion in revenues.  For the holiday quarter ahead estimates are $0.28 EPS and $1.29 billion in revenues.  The stock is probably not overly expensive at $11 at almost 18-times the $0.60 EPS target for FY Jan-2010 and 14.5-times the $0.73 EPS target for FY Jan-2011.  They are not exactly cheap either.  The 52-week trading range is $3.65 to $12.95.

Gap Inc. (NYSE: GPS) is in a totally new light as the new CEO has really gotten this longstanding turnaround candidate turned around and heading in the right direction.  Things are good enough and not-bad enough that we aren’t calling Old Navy a dead brand thanks to the new efforts.  Estimates are $0.44 EPS and $3.57 billion in revenues.  Next quarter estimates are $0.43 EPS and $4.15 billion in revenues.  The CEO deserves praise, but the question here is one of how to value Gap shares in looking ahead now that it is mature, has managed to get much of a turnaround under its belt considering the economy and peers, and since it is no longer the great growth story it once was.  Estimates are $1.50 EPS for FY Jan-2010 and $1.65 EPS for FY Jan-2011.  With a $22.20 price, Gap trades at 14.8-times this year’s earnings and trades at 13.5-times next year’s expected earnings.  That is not expensive in the current climate, particularly when you consider that it has provided an upside surprise for the last four quarters.  We don’t expect it to come any time soon, but we have always had Gap as a break-up candidate where it could break the three major brands apart.  The company also noted how October same-store sales were up 4% and the total sales rose 5% after seeing gains over at Banana Republic and Old Navy.  The Gap brand continues to drag the ship now.

Ross Stores, Inc. (NASDAQ: ROST) $0.84 EPS and $1.73 billion in revenues.  For the holiday quarter those estimates are $0.99 EPS and $1.92 billion in revenues.  With shares at $45.65 and with a 52-week trading range of $21.70 to $50.50, this doesn’t sound that expensive or like it has to blow numbers away to keep the bulls happy.  The off-price and home accessories retailer trades at 13.5-times expected Jan-2010 earnings estimates of $3.37 EPS and 12.5-times the expected Jan-2011 earnings estimates of $3.67 EPS.

The Buckle (NYSE: BKE) estimates are $0.70 EPS and $231.07 million in revenues; and estimates are $0.81 EPS and $269.94 million in revenues.  At $28.96, the retailer of casual apparel, footwear, and accessories for young men and women has a 52-week range of $13.57 to $39.09 and it trades at 11-times both the Jan-2010 estimates of $2.62 and Jan-2011 estimates of $2.63.  That sounds cheap, but the lack of growth is probably part of the reason when you consider about 6% top-line revenue growth from fiscal years Jan-2010 to Jan-2011.

Sears Holdings Corporation (NASDAQ: SHLD) estimates are -$1.09 EPS on $9.92 billion in revenues.  For the ever-important holiday quarter the estimates are $2.64 EPS and $12.61 billion in revenues.  This has a huge premium close to 70-times this year’s expected earnings and about 50-times FY Jan-2011 estimates.  The premium is due to the old belief of the value of the dirt underneath the shops and because of brands and trademarks which can be sold or licensed.  At $76.00, the 52-week trading range is $26.80 to $79.35.  Calling the history here spotty is an understatement, yet shares continue to rally after selling off on bad news.

The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE) still has a discrepancy from source to source on its earnings estimates so that is about all we will add: $1.38 EPS on $461.18 million in revenues; next quarter estimates are $1.05 EPS on $463.78 million in revenues. The largest unquantifiable risk here is what happens in flu season and how protective Mommy is over Junior. With shares around $34.65, and the 52-week trading range is $16.45 to $37.68.

Wet Seal Inc. (NASDAQ: WTSLA) is a young women’s apparel retailer.  Normally, we might not cover this one, but it is a retailer that has been very range-bound because of a turnaround and because of its mixed performance metrics.  Estimates are $0.03 EPS and $139.79 million in revenues for the past quarter, yet the coming holiday quarter-end estimates are $0.08 EPS and $155.19 million in revenues, yet the company gave guidance of $0.04.  We will hold off on forward valuation multiples because each penny in an EPS scenario for a $3.36 stock will skew the ratios.  October same-store sales were down 1.3%.

Williams-Sonoma Inc. (NYSE: WSM) is not just in the apparel market, but steadfast in the retail market for middle and upper-middle class spending for the kitchen and house. Its estimates are $0.05 EPS and $686.1 million in revenues. For the important Christmas quarter the estimates are much higher at $0.38 EPS and $949.9 million in revenues.  At $20.66 and with a $4.35 to $22.25 52-week trading range, this company absolutely has to knock the cover off the ball here.  Otherwise, this trades at 62-times Jan-2010 fiscal estimates and 38-times Jan-2011 fiscal earnings estimates.  Meeting estimates and maintaining guidance won’t likely be enough here.

Zumiez, Inc. (NASDAQ: ZUMZ) is the last of the retailers out on Thursday Estimates for the action sports equipment and apparel retailer are $0.15 EPS and $112.01 million in revenues for the last quarter, which is higher than estimates last week.  For the important holiday quarter-end ahead the estimates are $0.25 EPS and $131.17 million in revenues, also higher than last week. Unfortunately, its same store sales in October were off by -8.9% and that may erase its habit of beating estimates.

JON C. OGG
NOVEMBER 17, 2009

We have provided estimates from Thomson Reuters, recent sale store sales data, share performance, and added color on what else to consider where applicable.

Saks Incorporated (NASDAQ: SKS) reports on Tuesday.  This is still deemed the troubled and challenged of the higher-end retailers, and it is after the sell-off seen so far in Nordstrom.  Earnings are expected to be -$0.12 EPS and $621.95 million in revenues.  The problem is that analysts still see a loss for the ever-important Q4 period of -$0.04 EPS and $792.7 million in revenues.  Investors are not exactly keen on retail plays that lose money in the holiday quarter.  That being said, it may take a “we should be profitable in Q4″ statement to garner much excitement.  Another issue is that Saks is expected to lose money not just for fiscal Jan-2010 but also for Jan-2011.  The good news is that Carlos Slim invested in it and it recently showed October same-store sales were up 0.7%.  At $6.00+ today, its 52-week range is $1.50 to $7.45.

BJ’s Wholesale Club Inc. (NYSE: BJ) is on deck next Wednesday, and we have already seen Wal-Mart and Costco data.  Estimates for the big box-club retailer are $0.45 EPS and $2.48 billion.  For the Q4 period the estimates are $0.97 EPS on $2.76 billion in revenues.  A significant problem for many investors is that BJ’s stock has been range-bound for some time despite some gains it has made.  The company’s same-store sales were -1.1%, but that included gasoline. At $36.50, the 52-week trading range is $27.26 to $40.77.

Gymboree Corp. (NASDAQ: GYMB) is also on deck for earnings on Wednesday.  The special situation and turnaround kid’s retail destination is 20% off of a recent 52-week high, but is still up about 200% from its 52-week low.  Earnings estimates are $1.10 EPS and $270.8 million in revenues.  For the holiday quarter those estimates are $1.12 EPS and $302.2 million in revenues.  While this is not quantifiable without seeing it, the notion that this is for kids does put its swine flu risks higher than most companies elsewhere in the retail stocks reporting next week.  Same-store sales were also down 4% for October.

Dick’s Sporting Goods Inc. (NYSE: DKS) is on deck next Thursday, Nov. 19.  Estimates are $0.08 EPS and $957.6 million; estimates for the holiday quarter are $0.56 EPS and $1.26 billion in revenues.  With shares at $24.00, its 52-week trading range is $9.21 to $26.00.  A look at forward annual earnings estimates of $1.11 EPS for Jan-2010 and $1.26 for Jan-2011 will bring up some of the same valuation concerns we have seen elsewhere in retail.

Foot Locker Inc. (NYSE: FL) is reporting next Thursday and estimates are $0.13 EPS on $1.19 billion in revenues.  For the holiday quarter ahead estimates are $0.28 EPS and $1.29 billion in revenues.  The stock is probably not overly expensive at $10.80 at 17.7-times the $0.61 EPS target for FY Jan-2010 and 14.5-times the $0.74 EPS target for FY Jan-2011.  They are not exactly cheap either.  The 52-week trading range is $3.65 to $12.95.

Gap Inc. (NYSE: GPS) is also on deck next Thursday.  The new CEO has really gotten this longstanding turnaround candidate turned around and heading in the right direction.  We are not even calling Old Navy by the name of ‘Old Lamie’ any longer.  Estimates are $0.44 EPS and $3.57 billion in revenues.  Next quarter estimates are $0.43 EPS and $4.15 billion in revenues die to higher inventory costs.  The CEO deserves praise, but the question here is one of how to value Gap shares.  It is mature and no longer the great growth story.  Estimates are $1.50 EPS for FY Jan-2010 and $1.65 EPS for FY Jan-2011.  With a $22.20 price, Gap trades at 14.8-times this year’s earnings and trades at 13.5-times next year’s expected earnings.  That is not expensive in the current climate, particularly when you consider that it has provided an upside surprise for each of the last four quarters.  We don’t expect it to come any time soon, but we have always had Gap as a break-up candidate where it could break the three major brands apart.  October same-store sales rose by 4% and the total sales rose 5% led by gains at Banana Republic and Old Navy, and dragged by Gap.

Sears Holdings Corporation (NASDAQ: SHLD) is due next Thursday from Eddie Lampert and friends.  The shares are up massively, yet Eddie’s minions at the retail giant keep showing dull earnings.  Estimates are for another loss at -$1.09 EPS on $9.89 billion in revenues.  For the ever-important holiday quarter the estimates are $2.64 EPS and $12.6 billion in revenues.  This has a huge premium at over 70-times this year’s expected earnings of $0.85 EPS and about 50-times FY Jan-2011 estimates.  The premium is because there is a huge asset play here for Lampert’s real estate under the stores.  Investors are probably betting that Lampert traded well in investments too.  So the traditional P/E ratio here doesn’t matter.  At $72.40, the 52-week trading range is $26.80 to $79.35.  Sears has a history of very spotty earnings, yet shares are up significantly from lows and went well above our “stocks to double” price target.

The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE) is also on deck next Thursday.  We had a severe discrepancy in estimates here when we were looking them up, so we are not going to provide that data on this stock.  Sorry.  We recently saw October sales metrics down 2%, but online sales were up 36% in October.  Again, the unquantifiable risk here is what happens in flu season because of the kid factor.  With shares around $35.00, and the 52-week trading range is $16.45 to $37.68.

Wet Seal Inc. (NASDAQ: WTSLA) is on deck as a young women’s apparel retailer.  Normally, we might not cover this one, but it is a retailer that has been very range-bound because of a turnaround and because of its mixed performance metrics.  Estimates are $0.03 EPS and $139.79 million in revenues for the past quarter, yet the coming holiday quarter-end estimates are $0.08 EPS and $155.19 million in revenues, yet the company gave guidance of $0.04.  We will hold off on forward valuation multiples because each penny in an EPS scenario for a $3.36 stock will skew the ratios.  October same-store sales were down 1.3%.

Zumiez, Inc. (NASDAQ: ZUMZ) is the last of the retailers we track for next Thursday.  As much as you have seen “Thursday” you may have figured that was never-ending.  Estimates for the action sports equipment and apparel retailer are $0.14 EPS and $111.89 million in revenues for the last quarter.  For the important holiday quarter-end ahead the estimates are $0.24 EPS and $130.97 million in revenues.  Before last quarter, Zumiez had a habit of beating estimates handily. Unfortunately, its same store sales in October were off by -8.9%.

Ann Taylor Stores Corp. (NYSE: ANN) is on deck next Friday morning.  Estimates are $0.06 EPS and $476.2 million in revenues.  Shares are just under $13.00 and the 52-week trading range is $2.41 to $17.50.  While shares have recovered handily from 2008 lows, this one has never recaptured its mojo from when it lost its growth trajectory from 2000 to 2007.

Again, these estimates are likely to change slightly ahead of the actual earnings report next week.  This is also not every single company in the retail and apparel sector with earnings on deck and it follows a sloppy reaction from the retail and apparel reports from many peers this week.  The notion that many CEOs and CFOs this week have not been very clear on what to expect for the holiday season leaves us with even more pause after the significant stock runs we have seen.

Target Corp. (NYSE: TGT) is also on deck next Tuesday.  That one is large enough compared to the rest of the crowd that we are holding to give a very detailed analysis and preview on Monday.

JON C. OGG
NOVEMBER 13, 2009

Finish Line (FINL) Started as Outperform at Oppenheimer.
FMC Technologies (FTI) Raised to Outperform at FBR.
Foot Locker (FL)  Started as Outperform at Oppenheimer.
Franklin Resources (BEN) Started as Buy at Deutsche Bank.
Goldman Sachs (GS) Raised to Outperform at Bernstein.
KeyCorp (KEY) Raised to TopPick at RBC.
NASDAQ (NDAQ) Started as Buy at Deutsche Bank.
Nokia (NOK) Started as Outperform at Baird.
NRG Energy (NRG) Raised to Buy at Jefferies.
Vimpel Communications (VIP) Raised to Overweight at Morgan Stanley.

JON C. OGG

Citgroup (C) Still concerns about whether government will have to step in to stop bleeding. Down to $3.05 from 52-week high of $35.29.

JP Morgan (JPM) Layoffs and earnings concerns. Drops to $19.69.

The New York Times (NYT) October revenue down. Dividend cut. End of the line. Sells down to $4.95 from 52-week high of $21.14.

Bank of America (BAC) Sucked down by Citi selling. Plunges to $10.01 from 52-week high of $47.

Dell (DELL) Reasonable earnings but iffy forecast. Drops to $8.72 from 52-week high of $28.40.

Douglas A. McIntyre

• Columbia Sportswear Co. (NASDAQ: COLM),
• Nike Inc. (NYSE: NKE),
• Under Armour (NYSE: UA),
• lululemon athletica inc. (NASDAQ: LULU),

There were also many names in footwear and shoe retailing that were dropped:

• Foot Locker (NYSE: FL)
• Genesco (NYSE: GCO)
• Finish Line (NASDAQ: FINL)
• K-Swiss Inc. (NASDAQ: KSWS).

As a reminder, these are not true downgrades.  This coverage was dropped as the analyst has left the firm and it appears to be in a rapid enough manner that Goldman Sachs was not able to transition coverage away to another analyst.

Jon C. Ogg
May 20, 2008

Jon Ogg produces and edits the "10 Stocks Under $10" weekly newsletter and he does not own securities in the companies he covers.