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The week in preview: Are Father's Day gifts coming from DELL, RL, or MW?

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Father's Day is around the corner. Why not spend some time looking at the coming earnings and how Dad's Day may have an impact. It is funny to see how many of the companies reporting earnings this week actually have links to Father's Day.

While this column has been obviously bearish of late, there are a few potential winners that may appear, just in time for the big day. Time to stock up on gifts for dear-ole-dad, or get farther away from stocks? You tell me... (by the way, comments and ideas are always appreciated)

Monday, May 26

Markets will be flat. I am certain that stocks on the U.S. Market will close at the exact price they closed last Friday. But what do I know!

Tuesday, May 27

Gander Mountain Company (NASDAQ: GMTN) shares have been bouncing all over the place and have formed an interesting chart pattern of two peaks and a crater in March. Now shares are continuing a downward slope and look to be ready to fall off a cliff. This sporting retailer has recent sales approaching $1 billion yet somehow managed to lose $31 million during the last 12 months. Blame it on the discretionary buying patterns of consumers? Sure... why not, it couldn't be management, could it? Whatever the reason, consumers are having enough of a hard time already, so the expected loss of 60 cents per share is no stretch. I hope they sell hard hats there for shareholders.... Watch out below!

If your dad is into gaming and he speaks Chinese, he more than likely enjoys role-playing games on the Shanda Interactive Entertainment (NASDAQ: SNDA) network. There is no denying the fact that China stocks have been on fire. Technically, shares of Shanda are displaying a bullish double bottom and are trending higher as it makes higher lows. Earnings have been very strong with this group as has been relative strength. If the stock can break through resistance of $38, it could show a significant upside with an earnings beat. Their fundamentals are strong so don't be surprised if investors bid up into the earnings release. Look for 51 cents per share on $106 million of revenue.

Wednesday, May 28

The Men's Warehouse, Inc. (NYSE: MW) is where an educated investor is their best short-seller. It's no surprise that this specialty retailer has seen a dramatic pullback during this recessionary environment. Since October 2007 the shares have lost 50% of their value and earnings are now expected to be 22 cents per share, or 1/3 of what they were just one year ago. If you have any reason to get back at your dad for not letting you borrow the car or embarrassing you as a kid, here's your chance by buying him 1,000 shares of Men's Warehouse before earnings. That should teach him.

What is the perfect gift for dad? A tie, cologne, or a gorgeous shirt? Either one will lead you to something from Polo Ralph Lauren Corporation (NYSE: RL). The name is synonymous with class and distinction, but it is not exempt from the powerful impact of an economic slowdown. This stock is riding its 50-day moving average. Watch the quarterly earnings, estimated to be 65 cents per share. If the stock breaks below its support of $57.50, as you may see another 10% drop to the next support level.

In all fairness, not all dads dress in the traditional suit and tie. That is good news for The Dress Barn, Inc. (NASDAQ: DBRN). Recently, shares skirted near disaster when they dipped under $10 in March. Earnings expectations have been falling for the coming year yet shares have been moving slowly higher on increasing volume. This specialty store that offers women's regular and plus sized apparel has seen its price ride its 200-day moving average as institutions have been increasing their holdings. What do the big boys know? This could be a signal to buy this beaten down stock. Revenue is estimated to be $350 million for the quarter and per share earning 26 cents.

Thursday, May 29

Real men don't eat quiche; but they do have loud cars! Well, not if Monro Muffler Brake, Inc. (NASDAQ: MNRO) has anything to do with it. First Call is expecting a much quieter quarter with earnings coming in at 14 cents per share as compared to 19 cents during the same period last year. Revenues are estimated to come in at $108.74 million for the period. Shares should continue to stall as the entire automotive sector is stuck in neutral, except for the fact that the chart is showing bullish pattern. Don't be surprised if this is a winner as expectations are low.

Timing is everything they say. Movado Group, Inc. (NYSE: MOV) will probably agree with that. Watch earnings as they are expected to tick lower by 50% as compared to last year. First Call is showing estimates at 4 cents per share on $97.30 million of revenue. Earnings growth is slowing and has been estimated to continue to be negative through 2010... not encouraging.

Dell Inc. (NASDAQ: DELL) has been up against hard times. In April the company announced a $1 billion share buyback plan. So, either management believes that it is the best use of their excess cash or they are doing everything possible to keep the share price up. Either way, this could be a short-term bullish sign. The problem is that they are just not sexy anymore. Even with the acquisition of AlienWare in 2006 and Michael Dell coming back to the helm as of January 2007, shares have been moving lower. The chart is showing a head-and-shoulders reversal pattern during 2008. Is Dell ready for a comeback? Just ask Dad what type of computer he wants this year for Father's Day. Want to bet it isn't a Dell? Look for earnings of 33 cents per share on $1.56 billion of revenue.

I know my dad loves Sears Holdings Corp (NASDAQ: SHLD) ...how about yours? Those tools and overalls, those washers and dryers...Oh, the riding mowers. I love that place! Yet it seems that the love affair with Sears waning. Last September, I wrote about the problems that Sears was about to endure. The idea had been that during the past several years, shares had been climbing because of the idea that the underlying real estate had unrealized value. That was the same reason that it was about to get clobbered. (see Sears in Focus) The stock has fallen from $125, at the time that analysis was written to about $85 today. The effect of falling land values combined with the problems of being a retailer in a slowing economy has been tough on Sears. Analysts are looking for .15 per share this quarter and it may be time to start nipping at this after earnings are released. If they make or exceed the number, shares should rebound to $100. If you want to play it conservatively, perhaps consider buying call options - just out of-the-money.

Friday, May 30

Sell in May and go to the movies. Grab some popcorn and tickets for you and Dad and head over to the next big movie from Lions Gate Entertainment Corp. (NYSE: LGF). Wait, and I mean wait. It seems that the next movie to be released by LGF is slated for September 2008. What happened to the summer? Earnings are expected to come in at 37 cents per share of the period, up from 23 cents for the same period last year. The good news is the fundamentals with this company as they have little, if no debt and plenty of cash. That could be a great benefit to LGF shareholders as other companies in the sector could have a hard time raising cash for productions.

Disclosure: Horowitz & Company clients do not hold positions in stocks mentioned as of the publish date.

Andrew Horowitz is a money manager and author of The Disciplined Investor: Essential Strategies for Success. Now available on Audiobook!

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Last updated: November 09, 2009: 12:01 AM

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