24/7 Wall St. » SCSS

24/7 Closing Bell (BIDU, MON, T, CRUS, PLCM, PM, NOK, SCSS, RVBD, AMLN, CLWR, BWLD)

Paul Ausick — Thu, 20 Oct 2011 20:17:37 +0000

The market sure didn’t feel too great through much of the warning, but the day turned out a lot better than it was looking. Weekly jobless claims remained stubbornly above the 400,000 mark. The big surprise was a better-than-expected Philly Fed manufacturing report today and then also came the news that Greece somehow managed to pass another round of austerity measures. And to top it off, the Grim Reaper caught up with Moammar Gadhafi today and Libya can now work to build into whatever direction the new leadership wants to go in.The unofficial closing bells put the DJIA up nearly more than 37 points to 11,541.78, the NASDAQ fell more than 5 points (-0.21%) to 2598.62, and the S&P 500 rose 0.45% or more than 5 points to1,215.38.

We had many key analyst upgrades and downgrades today, including calls in shares of Baidu, Inc. (NASDAQ: BIDU) and Monsanto Co. (NYSE: MON). The retail sector did not follow the news, due to some fears that the holiday season is not going to be as strong as many expected. Speaking of analyst calls and projections, there are still some extremely lofty upside price targets out there in the automotive sector.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: (only show late-day percent change and price): AT&T (NYSE: T) down about -0.1% at $28.97, Cirrus Logic, Inc. (NASDAQ: CRUS) down nearly -17% at $14.21; Polycom, Inc. (NASDAQ: PLCM) down -25%, at $16.46; Phillip Morris International, Inc. (NYSE: PM) up more than 4%, at $68.77; Nokia Corporation (NYSE: NOK) up more than 6%, at $6.50; and Select Comfort Corporation (NASDAQ: SCSS) up more than 20%, at $19.38.

Several other standouts from today are as follows…

Riverbed Technology, Inc. (NASDAQ: RVBD jumped more than 9.5%, to $24.69, following a better than expected earnings report after markets closed last night.

Amylin Pharmaceuticals, Inc. (NASDAQ: AMLN) rose nearly 13%, to $11.56, after getting approval for wider use of its diabetes drug and posting a smaller than expected third-quarter loss.

Clearwire Corp. (NASDAQ: CLWR) shares are up nearly 13% as well, to $1.57, probably as a result of indications that its spectrum licenses could get some competitive bids.

Buffalo Wild Wings, Inc. (NASDAQ: BWLD) is up nearly 7%, to $62.06, after reporting a 33% rise in income for the third quarter.

After a busy week of economic data, there are no major market moving economic reports due Friday morning. Look for Fed-head speeches on Friday from Kocherlakota, Fisher, and Yellen throughout the day. Most importantly, watch for more news out of Europe on just how much the Europeans are going to throw into their European Financial Stability Fund (Europe’s mini-me version of the TARP).

Paul Ausick

Filed under: General Tagged: AMLN, BIDU, BWLD, CLWR, CRUS, MON, NOK, PLCM, PM, RVBD, SCSS, T

High Return on Equity, A Primer For Future High Dividends (PM, CL, SCSS, CPB, TRW, KO, BLL)

Administrator — Tue, 14 Jun 2011 16:21:04 +0000

Our screen today is for companies with an attractive Returns on Equity (ROE) in the consumer goods sector. It is our view that ROE is one of the better quick indicators of a well-managed company. We also wanted to see what sort of dividends were being paid out as well. Except where otherwise noted, the source for all performance and financial data is Finviz.com.

Our screen produced seven respected companies. We list them here in descending order of their respective ROE’s: Phillip Morris International, Inc. (NYSE: PM), Colgate-Palmolive Co. (NYSE: CL), Select Comfort Corporation (NASD: SCSS), Campbell Soup Co. (NYSE: CPB), TRW Automotive Holdings Corp. (NYSE: TRW), The Coca-Cola Company (NYSE: KO), Ball Corporation (NYSE: BLL). These seven companies sport ROE’s ranging from 36.4% to 167.8%. Their PE ratios range from 7.5 to 19.8, while their forward PE’s range from 7.2 to 15.3.

Among these seven companies, Phillip Morris, Campbell Soup, Coca-Cola and Colgate Palmolive pay the better dividends. Some of these companies already offer high dividends, but using the return on equity may help us determine which can offer high dividends (or even higher dividends) in the future.

Phillip Morris International, Inc. (NYSE: PM) boasts a nearly startling 167.8% ROE. Is that too good to be true? In the face of health warnings and litigation, the cigarette giant’s annual earnings are up more than 21%. PM’s forward price to earnings ratio is 13.3. The dividend looks high at a yield of 3.8%, but that is low for a tobacco company as it is still considered more of a growth story than the domestic tobacco players. The shares currently trade near $68. Its 52-week price range is $42.64 to $71.75.

Colgate-Palmolive Co. (NYSE: CL) shows an eye-catching 98.8% ROE, again something that seems almost too good to be true. The personal products company boasts quarter-over-quarter growth of 68%. Colgate’s forward PE is 15.4 and it pays a dividend yield of 2.7% to its common stock holders. Currently trading around $86, CL’s 52-week price range of $71.61 to $87.58.

Select Comfort Corporation (NASDAQ: SCSS): The home furnishings company sports a ROE of 76.2%. Its quarter-over-quarter earnings are up 110%, having recovered from a 26% annual earnings drop. The company has a forward PE of 13.1, it has traded since the late-1990s, yet has no dividend… Maybe it is time to loosen up the company’s purse strings for shareholders. SCSS shares trade just under $15, up 4.6% from yesterdays close. Its 52-week trading range is $4.92 to $17.86.

Campbell Soup Co. (NYSE: CPB) is shown to have a ROE of 74.9%. Its quarter-over-quarter earnings are up 18%. The company’s forward PE ratio is 13.7 and it offers a high dividend yield of about 3.4%. CPB’s shares are trading almost unchanged today after closing at $33.92 yesterday. Its 52-week trading range is $32.38 to $36.68.

TRW Automotive Holdings Corp. (NYSE: TRW): The auto parts company boasts a 48.0% ROE. TRW’s quarter-over-quarter earnings are up 32.3%. The company’s forward PE is 7.2 but there is no dividend today. After closing at $52.36 yesterday, the shares currently trade near $54, up more than 3%. The 52-week price range is $26.20 to $63.26.

The Coca-Cola Company (NYSE: KO) return on equity is 42.3%. Its annual earnings are up almost 73%. Coke’s forward PE is 15.2, a tad greater than its current PE of 12.6. It boasts a 2.9% dividend yield. With the shares currently trading near $65.50, its 52-week price range is $48.07 to $68.28.

Ball Corporation (NYSE: BLL), the maker of Ball home canning jars and other packaging and container products, shows a ROE of 36.4%. The company’s annual earnings are up 44% and its quarter-over-quarter earnings are up more than 22%. Ball’s forward PE is 11.7 and its dividend yield is only 0.7%. The shares currently trade near $38. Its 52-week price range is $25.53 to $39.51.

As with any screens, we always recommend for investors to use their own methodology for their own investment objectives. Return on equity and dividend screening with forward P/E ratios can be wonderful tools for value, growth, and income investors. That being said, we are the first to admit that there are many pieces to a puzzle. As always, don’t forget our one underlying mantra in investing that never changes regardless of the business and market cycle: “Know what you are investing in.”

Jim Berdou

Filed under: Consumer Goods, Corporate Governance, Dividend, Value Investing Tagged: BLL, CL, CPB, KO, PM, SCSS, TRW

Top 10 Analyst Upgrades and Downgrades (AMGN, AVY, COLM, DSGX, EJ, JASO, KG, SCSS, SPWRA, THC)

247wallst — Fri, 14 Aug 2009 11:51:41 +0000

These are the ten top analyst upgrades,downgrades, and initiations we have seen early this Friday morning with roughly two hours until the market opens:

Amgen (AMGN) Cut to Hold at Citigroup.
Avery Dennison (AVY) Raised to Overweight at JPMorgan.
Columbia Sportswear (COLM) Raised toOverweight at Barclays.
Descartes Systems (DSGX) Started as Overweight at Thomas Weisel.
eHouse China (EJ) Raised to Outperform at Oppenheimer.
JA Solar (JASO) Cut to Equal Weight t Barclay.
King Pharma (KG) Cut to Hold at Needham.
Select Comfort (SCSS) Reinitiated as Buy at KeyBanc.
SunPower (SPWRA) Started as Buy at Needham.
Tenet Healthcare (THC) Raisd to Outperform at Baird.

JON C. OGG
August 14, 2009

Posted in Analyst Calls Tagged: AMGN, AVY, COLM, DSGX, EJ, JASO, KG, SCSS, SPWRA, THC

The 52-Week Low Club (SOV)(SCSS)(SBUX)(TSFG)

247wallst — Thu, 24 Apr 2008 14:52:28 +0000

Sovereign Bancorp (SOV) Moody’s cuts rating. Drops to $6.48 from 52-week high of $24.71.

Select Comfort (SCSS) Quarter short of expectation. Down to $2.45 from 52-week high of $19.03.

Taser (TASR) Misses estimates for quarter. Sells off to $7.30 from 52-week high of $19.36.

Starbucks (SBUX) What a mess. Misses every number imaginable. Drops to $15.39 from 52-week high of $32.30.

South Financial Group (TSFG) Posts a first quarter loss. Off to $6.02 from 52-week high of $24.79.

Douglas A. McIntyre

Top 10 Pre-Market Analyst Calls (CHTR, CTXS, DNE, LULU, MDTH, MSFT, PLX, SCSS, VNO, WY)

247wallst — Tue, 11 Mar 2008 06:42:14 +0000

These are not the only analyst calls affecting shares this morning, but these are the first ones that 247WallSt.com is focusing on:

Charter Communications (NASDAQ: CHTR) Cut to Neutral at Credit Suisse.
Citrix Systems (NASDAQ: CTXS) cut to Hold at Jefferies.
Dune Energy (NYSE: DNE) Started as Buy at Jefferies.
lululemon athletica (NASDAQ: LULU) raised to Outperform at Credit Suisse.
MedCath Corp. (NASDAQ: MDTH) Raised to Outperform at Credit Suisse.
Microsoft (NASDAQ: MSFT) started as Buy at Jefferies.
Protalix Biotherapeutics (AMEX: PLX) started as Buy at UBS.
Select Comfort (NASDAQ: SCSS) Raised to Market Perform at Morgan Keegan.
Vornado Realty (NYSE: VNO) Raised to Buy at Goldman Sachs.
Weyerhaeuser (NYSE: WY) raised to Buy at UBS.

Jon C. Ogg
March 11, 2008

The 52-Week Low Club (NT)(GSK)(IAR)(IFX)

247wallst — Thu, 07 Feb 2008 16:04:21 +0000

Idearc (NYSE: IAR) Big earnings miss mugs shares, Down to $11.21 from 52-week high of $38.

Infineon Technologies (NYSE: IFX) German company posts weak numbers. Sells off to $7.89 from 52-week high of 18.74.

R H Donnelley (NYSE: RHD) Printing operation has rough day. Falls to $21.10 from 52-week high of $84.49.

Prudential (NYSE: PRU) Joins other financials in the basement. Drops to $69.05 from 52-week high of $103.27.

Nortel Networks (NYSE: NT) Concerns about tech catch up to enterprise telecom equipment firm. Falls off to $10.95 from 52-week high of $31.79.

GlaxoSmithKline (NYSE: GSK) Drug maker has headache. Sells off to $41.71 on earnings from 52-wek high of $59.98.

Orion Energy Systems (NASD:OESX) Brutal quarter. Drops to $6.56 from 52-week high of $22.46.

Edge Petroleum (NASD: EPEX) Company is selling some of its assets. Sells off to $4.05 from 52-week high of $15.78.

Select Comfort (NASD: SCSS) Bad quarter and downgrade. Drops to $4.94 from 2-week high of $20.17.

Douglas A. McIntyre

Sealy and Tempur Pedic Sleeping Separately (ZZ, TPX, SCSS)

247wallst — Mon, 08 Oct 2007 11:33:43 +0000

After looking at downgrades this morning and then after the stocks that hit 52-week lows, Sealy Corp. (NYSE:ZZ) showed up on the list. Sealy saw its stock become broken last week after its $0.22 EPS was well short of $0.32 estimates. It seems that soft housing is the obvious, but lower pricing power is also a factor here. Its share buyback plan isn’t doing much to keep it off of lows either. Banc of America’s downgrade from a Buy to Neutral is the extra catalyst for selling today. The 52-week low of $13.000 from Friday was taken out today, and while shares are back within a few pennies of that level it appears that $12.52 was the new low put in today. After this came public in early 2006 shares did drop down to $12.00 before coming back up to $18.00.

Select Comfort (NASDAQ:SCSS) shares are up almost 1% today, although it hasn’t done much better in general. At $14.55, shares are close to the bottom of its $13.85 to $25.25 trading range over the last 52-weeks. The standout is Tempur-Pedic (NYSE:TPX). Its shares are down marginally today at $38.91, but its 52-week trading range is $17.12 to $37.87.

These companies are all profitable and are expected to remain that way. Market caps are all somewhat low: Sealy $1.4 Billion; Tempur-Pedic $2.9 Billion; Select Comfort $637 million. These all have straight forward business models where competitors might not want to come into an established industry, and in the past each one of these have been thought of that under the right conditions could become targets of private equity. Those thoughts are probably long gone for the current buyout climate. But if they get too cheap it may be too hard not to look at.

Jon C. Ogg
October 8, 2007

Massive List of 52-Week Lows (June 20, 2007)

247wallst — Wed, 20 Jun 2007 15:38:06 +0000

Stock Tickers: AVR, BCRX, CACH, CHCI, COLY, CTIC, FSII, HOV, HR, INFS, LEG, MTH, PEIX, RSYS, SCSS, SEPR, SNY, STAA, USBE, UTSI, VSE, YSI

Once again, many many more losers…..This list is larger than most of recent note. There is just about any given day where there are fresh 52-week lows:

Aventine Renewable (AVR)…-3.9% to $14.09; $14.60 prior low. Watch the renewable energy names as they are plentiful on 52-week lows.

BioCryst Pharma (BCRX)…-3.3% at $6.92; prior 52-week low $7.13; follow-on weakness from Peramivir Monday.

Cache (CACH)…-2.7% to $13.92; not lowest intraday but low close.

Comstock Homebuilders (CHCI)…-4.4% to $2.83; another stinking homebuilder.

Coley Pharma (COLY)….-59% to $3.46; $8.00 prior lows; intra-day implosion as Pfizer ditches its cancer drug.

Cell Therapeutics (CTIC)…-9.4% to $3.09; prior 52-week low was $3.38.

FSI International (FSII)….-13% to $3.43; $3.91 was prior low; weak guidance; hedge fund pressures CEo.

Hovnanian Enterprises (HOV)…-3% to $19.08; prior 52-week low $19.53; another stinking homebuilder.

Healthcare Realty (HR) -2.2% to $28.34; prior 52-week low was $28.57; this one goes lower and lower each week it feels like.

InFocus (INFS) -4% to $2.33; follow-on weakness after CFO quit; stock imploding….

Leggett & Platt (LEG)…-0.7% to $21.92; not tru 52-week low but low close; continued weakness after estimates cut from housing.

Meritage Homes (MTH)..-1.5% to $28.75; another stinking homebuilder.

Pacific Ethanol (PEIX)…-2.35 to $12.35; lowest close of late; and we thought ethanol was king…..

Radisys (RSYS)…-3.8% to $12.80; not true low but low close and hit intraday lows; no news today.

Select Comfort (SCSS)…-2.1% to $16.03; prior low $16.09; weak housing must mean weak bed sales; maybe hamocs are the new rage?

Sepracor (SEPR)…-2.5% to $43.67; prior 52-week low $43.84; insiders exercising stock options this week; P/E ratio drifting lower and lower; now down 33% from highs.

Sanofi-Aventis (SNY)…-1.8% to $40.84; prior low $41.09; drug woes continue; worries they’ll dilute to buy Bristol-Myers.

Staar Surgical (STAA)…-2.85% to $4.09; $4.14 prior 52-week lows; no news, but not a ‘staar’ after all.

US Bioenergy (USBE)…-2.6% to $10.67; $10.78 prior low; busted IPO looks like worse getting even worse.

UTSarcom (UTSI)…-3.8% to $5.28; $5.43 was prior 52-week low; down more than 50% in last year; the beatings will continue until leadership improves AND until they actually report and open the books.

VeraSun (VSE)…-4.7% to $13.08; $13.69 was prior 52-week low; ethanol slide continues.

u_Store-It Trust (YSI)…-2.9% to $16.97; $17.05 was prior intra-day low; no news, but they obviously aren’t storing enough.

Jon C. Ogg
June 20, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in any of the companies he covers.