Continue reading American Greetings Disappoints Market with Q1 Report

American Greetings Disappoints Market with Q1 Report originally appeared on BloggingStocks on Thu, 01 Jul 2010 08:30:00 EST. Please see our terms for use of feeds.

A simple card can say so much, and that makes American Greetings (AM) a great choice for investors this Valentine's Day. But don't think this card is a seasonal wonder.

American Greetings has posted dramatic earnings performances lately, including earnings surprises of more than 550% and 245% in the past three quarters. This stock is a great investment for February and beyond.

Next: Whole Foods (WFMI)

At the time of this writing, Louis Navellier did not own shares of AM in personal or client portfolios.

Valentine's Day Stock #5: American Greetings (AM) originally appeared on BloggingStocks on Sat, 13 Feb 2010 14:00:00 EST. Please see our terms for use of feeds.

Valentine's Day may be a commercialized holiday to some, but there's no denying that its big business. And this coming Valentine's Day may be extra sweet since it falls on a Sunday, making it a great excuse for a romantic night out. In fact, total Valentine's Day spending is expected to reach $17.6 billion this year, up 3.3% over 2009, according to consumer spending researchers at IBISWorld.

That's a big payday, and one that investors should be paying attention to.

Continue reading Ten Valentine's Day Stocks to Love (and 10 to Hate)

Ten Valentine's Day Stocks to Love (and 10 to Hate) originally appeared on BloggingStocks on Sat, 13 Feb 2010 09:00:00 EST. Please see our terms for use of feeds.

Even in a holiday shortened week so close to the end of the calendar year, there are still some earnings reports dribbling in. Question is, will any of the companies reporting quarterly results this week offer up a gift for investors?

Apropos of the season, analysts surveyed by Thomson Reuters have high expectations for American Greetings Corp.'s (AM) fiscal third quarter 2010 earnings. The nation's second largest provider of greeting cards announced record second quarter results and declared a quarterly dividend during the three months that ended in November. American Greetings is expected to report that earnings rose 43.9% from a year ago to $0.66 per share. Revenue for the quarter is expected to total $445.4 million, or 1.9% lower than a year ago. So far, the full-year forecast is for its profit to more than double to $2.00 per share while revenue falls 5.6% from a year ago to $1.6 billion. This Cleveland-based company creamed earnings estimates in the past two quarters.

Continue reading The Week in Preview: Pre-holiday Earnings from Walgreen, American Greetings ...

The Week in Preview: Pre-holiday Earnings from Walgreen, American Greetings ... originally appeared on BloggingStocks on Sun, 20 Dec 2009 12:30:00 EST. Please see our terms for use of feeds.

American Greetings Corporation (NYSE: AM) 's announcement that it will acquire bankrupt competitor Recycled Paper Greetings is running into some fierce resistance from a major investor in Recycled Paper.

RPG Investment Holdings LLC and Monitor Clipper Partners voiced their opposition with RPGI director and Monitor Clipper partner Travis Metz saying that "Through its unlawful actions, we believe American Greetings is attempting to eliminate Recycled Paper Greetings as a competitor, in an effort to gain more widespread traction in the lucrative market segment in which Recycled Paper Greetings excels."

Doesn't "excel" seem like a pretty strong word for a company that filed for bankruptcy? The press release levels some pretty serious allegations: "RPGI has taken several actions to combat AG's unlawful activities, including pursuing litigation in the U.S. District Court in Chicago which is ongoing. This litigation revolves around AG's unlawful purchase of a majority interest in RPG's senior debt, in direct violation of a contractual obligation not to do so."

The investors said they believe that the interests of creditors, shareholders, employees and customers would be better served if Recycled Paper were allowed to pursue a restructuring as a stand-alone company.

American Greetings acquisition runs into resistance originally appeared on BloggingStocks on Fri, 02 Jan 2009 17:20:00 EST. Please see our terms for use of feeds.

There's not a whole lot on the economic calendar this coming week, as Thursday is Christmas day. But things are not entirely silent either.

As this is Christmas card season, it's somehow appropriate that American Greetings Corp. (NYSE: AM) is scheduled to report fiscal third-quarter results. Analysts surveyed by Thomson Reuters expect the nation's number two producer of greeting cards to report earnings of $0.52 per share, essentially the same as a year ago. Estimated revenue for the quarter is $474.5 million, down 2.3% from a year ago. American Greetings missed analysts' estimates in three of the past four quarters -- by 55.4% in the first quarter. After falling to a multiyear low of $7.85 per share in late November, the price closed Friday at $9.92. But the share price is 53.8% lower than a year ago.

Drugstore chain Walgreen Co. (NYSE: WAG), where one may find American Greetings cards, is expected to also report earnings the same as a year ago, or $0.46 per share, on revenue of $15.1 billion (+7.5%). Walgreen reported a modest increase in sales in October and again in November. The company only missed profit estimates in one of the past four quarters, and that by only a penny. The consensus recommendation remains to buy WAG, which has a long-term EPS growth rate forecast of 12.5%, better than the S&P 500 but less than that of rival CVS Caremark Corp. (NYSE: CVS). Walgreen's share price has been creeping upward since reaching a multiyear low of $21.28 in October and closed Friday at $26.08. (For more on Walgreen, see Steven Mallas's earnings preview.)

Continue reading The week in preview: Pre-holiday reports

The week in preview: Pre-holiday reports originally appeared on BloggingStocks on Sun, 21 Dec 2008 12:30:00 EST. Please see our terms for use of feeds.

Earnings reports continue to dribble in as the quarter winds down. Much of the attention this week will be on homebuilders KB Home (NYSE: KBH) and Lennar Corp. (NYSE: LEN) as investors look for any sign that the housing sector has bottomed (home sales numbers are also due out this week; see below). Analysts surveyed by Thomson Financial anticipate that both companies will report that they narrowed their losses in the most recent quarter.

KB Home's expected $1.25 per share loss, on revenue of $725.5 million, compares to the previous quarter loss of $3.30 and to a year-ago loss of $6.19. However, KB Home's losses in the past few quarters have been deeper than expected. The Los Angeles-based homebuilder's long-range earnings growth forecast is 10.5%, less than the S&P 500. Analysts continue to recommend holding KB Home, and have for at least 120 days. Shares, however, reached a new 52-week high of $31.69 on Friday, and they are up 10.5% year to date.

Lennar is expected to post a loss of 52 cents per share, on revenue of $1.1 billion. That compares to the previous quarter's per-share loss of 76 cents and to a year-ago loss of $3.25. While Lennar also has tended in the past few quarters to miss expectations, the Miami-based company managed a positive surprise in the first quarter of 2008. Lennar's long-range earnings growth forecast is 10.3%, about the same as KB Home's. Analysts also recommend holding Lennar. Friday, shares of Lennar also reached a 52-week high, $27.75, but they are down 6.4% year to date.

Continue reading The week in preview: A bottom for the housing sector?

The week in preview: A bottom for the housing sector? originally appeared on BloggingStocks on Sun, 21 Sep 2008 12:30:00 EST. Please see our terms for use of feeds.

American Greetings (NYSE: AM) knows how to deal with changing times. After all, the company got its start in 1906.

In fact, the company was an early adopter of dot-com technologies (going back about 13 years), and has purchased a variety of digital companies, such as BlueMountain.com.

And yes, American Greetings is also making moves on the social networking front through its popular Kiwee.com destination. In its first six months out of beta, the site has attracted more than 1 million members. A key has been its IM Toolbar, which allows for cool digital icons and expressions for messaging platforms like Microsoft (NASDAQ: MSFT), Yahoo! (NASDAQ: YHOO), and Time Warner (NYSE: TWX)'s AOL.

However, Kiwee is not a social networking site. "There are already strong players in social networking, such as MySpace and Facebook," said Rajiv Jain, the SVP and general manager of Kiwee, in an interview with me Wednesday. "Instead, we focus on our core strength, which is creating great content."

No doubt, the content is pretty cool. Most importantly, there are a variety of tools to allow for customization, letting users easily create unique online personalities.

So far, it seems the formula is getting traction -- and shows that old companies can still find ways to innovate.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

American Greetings buddies up with MySpace, Facebook originally appeared on BloggingStocks on Thu, 24 Jan 2008 11:11:00 EST. Please see our terms for use of feeds.

A well-known Cleveland-based greeting card company was founded over a hundred years ago by a family that bought ornate post cards from German manufacturers and sold them to local merchants. The firm subsequently introduced the self-serve card display, developed the number one online greeting card destination in the world and invented such iconic characters as Holly Hobbie, Strawberry Shortcake and the Care Bears.

American Greetings Corporation (NYSE: AM) designs, manufactures and sells greeting cards and other social expression products. It offers everyday and seasonal cards, gift wrap, party goods, stationery and giftware. It also distributes greetings over the Web. The company operates about 500 retail outlets in North America. Its products are sold in some 125,000 retail stores worldwide. Target (NYSE: TGT) and CVS Caremark (NYSE: CVS) are major retail customers.

Investors were pleased last week, when the company reported Q2 EPS of 16 cents and revenues of $377.4 million. Analysts had been looking for a seven cent loss and $337.5 million. The CEO attributed the solid numbers to improved performance in the firm's card business and careful management of costs. Management also guided FY08 EPS to $1.35-1.55, versus Street consensus of $1.45.

Continue reading American Greetings (AM): A long history of salutations

American Greetings (AM): A long history of salutations originally appeared on BloggingStocks on Tue, 25 Sep 2007 14:31:00 EST. Please see our terms for use of feeds.

A piece in today's New York Times looks at the ways that American Greetings (NYSE: AM) and Hallmark are trying to compete with online alternatives for consumer greeting dollars. American Greetings is betting that people will respond more to everyday humor, and has signed Ellen DeGeneres to create a line of Ellen cards to appeal to the women who purchase 80% of greeting cards. Hallmark has the Shoebox series, and is increasingly focusing on current events humor.

According to the piece, "While the paper card market is declining, it is still five times as large as the e-card market, according to the Greeting Card Association, a trade group... newer forms of communication - not just e-mail, but also social networks and chat boards - do seem to threaten its relevance."

Are greeting card companies a good investment? My hunch is no. The only major publicly traded option is American Greetings, whose net income has declined in each of the past 5 years, and sales are also trending down. Nearly all college-age kids have Facebook or Myspace pages and, while an online wedding card might be frowned upon by older folks, it seems likely that the next generation will feel differently. I would argue that it's entirely possible that, in 25 years, the greeting card industry will be pretty much gone. Without any catalyst for short-term growth, the stock looks expensive.

The company lists this as a risk factor in its most recent 10-K: The growth of our greeting card business is critical to future profitability and cash flow. But that seems hardly assured, and I would argue downright unlikely.

Will the internet kill traditional greeting cards? originally appeared on BloggingStocks on Mon, 20 Aug 2007 07:45:00 EST. Please see our terms for use of feeds.

Did you know that the creator of Care Bears also invented the Strawberry Shortcake and Holly Hobbie characters? No? It's true. In fact, it's a Cleveland-based outfit that has been selling greeting cards for 101 years.

American Greetings Corporation (NYSE: AM) designs, manufactures and sells greeting cards and other social expression products. It offers everyday and seasonal cards, gift wrap, party goods, stationery and giftware. It also distributes greetings over the Internet. The company operates about 500 retail outlets in North America and its products are sold in some 125,000 retail stores worldwide. Target Corp. (NYSE: TGT) and CVS Caremark (NYSE: CVS) are major retail customers.

Investors were pleased last week, when the company reported Q1 EPS of 55 cents and revenues of $418 million. Analysts had been looking for 34 cents and $393.9 million. Management also guided FY08 EPS to $1.35-$1.55, versus Street consensus of $1.35. The stock popped through 30-day and 50-day moving average resistance on the news and has since begun to consolidate the gain in a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers currently recommend the issue with three "holds." Analysts see a 19% growth rate, through the next year. The AM P/E ratio (19.28), Price to Sales ratio (0.87), Price to Book ratio (1.48) and EPS Growth rate (139.13%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $20.65 and $29.00. A stop-loss of $24.20 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

American Greetings: Salutations by mail, or the Web originally appeared on BloggingStocks on Wed, 27 Jun 2007 12:21:00 EST. Please see our terms for use of feeds.

American Greetings signs Ellen DeGeneres originally appeared on BloggingStocks on Mon, 26 Mar 2007 13:11:00 EST. Please see our terms for use of feeds.