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Coach's shares are headed north

Coach Inc. (NYSE: COH) has a winning 'accessible luxury' formula, which is why I'm Reiterating my Buy rating for company, first recommended on April 13, 2009 at a price of $18.22. If you bought COH in April, you're up an impressive 71%.

Most investors are aware that in the era of the 'frugal consumer' that's driven by stagnant incomes, difficult labor market conditions, and an uncertain economic recovery timetable, the retail sector is best avoided.

Continue reading Coach's shares are headed north

Analyst upgrades, downgrades and initiations: AIG, COH, LMT, MOT, MVL, NOK, RTN ...

Analyst upgrades:

  • Credit Suisse upgraded Motorola (NYSE: MOT) to Outperform from Neutral after the close Monday. The firm believes Motorola's devices segment will approach breakeven in 2010 while operating margins in nonhandset segments will expand, and that a break-up story will reemerge. Credit Suisse raised its target on shares to $9.50 from $7.
  • UBS upgraded BHP Billiton (NYSE: BHP) to Buy from Neutral. The firm cites BHP's leverage to iron ore, coking coal, copper, and oil for its upgrade after raising its commodity price forecasts.
  • Merriman upgraded Walter Energy (NYSE: WLT) to Buy from Neutral to reflect higher met coal price forecasts. The firm believes Chinese demand is strong and has a target range of $66-$72 on the stock.
  • Intersil (NASDAQ: ISIL) was upgraded to Outperform from Perform at Oppenheimer.
  • Coach (NYSE: COH) was upgraded to Buy from Neutral at BofA/Merrill.
  • Lockheed Martin (NYSE: LMT) was upgraded to Buy from Hold at Citigroup.

Continue reading Analyst upgrades, downgrades and initiations: AIG, COH, LMT, MOT, MVL, NOK, RTN ...

Earnings highlights: Coach, Corning, Goodyear, Visa, Waste Management ...

Here are some highlights from last week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Coach, Corning, Goodyear, Visa, Waste Management ...

Analyst upgrades, downgrades and initiations: AFL, COH, CPB, DOW, MS, TTM ...

Analyst upgrades:

  • Baird upgraded WinTrust (NASDAQ: WTFC) to Neutral from Underperform and raised its target to $20 from $13 citing the accretive purchase of AIG (NYSE: AIG) loans and reduced risk of a capital raise.
  • Piper Jaffray upgraded Coach (NYSE: COH) to Overweight from Neutral on expectations product sell-throughs and margin trends will improve in the coming quarters. The firm has a $32 target on the stock.
  • RBC Capital upgraded Campbell Soup (NYSE: CPB) to Sector Perform from Underperform and raised its target to $33 from $29. The firm cites Campbell's recent innovation, easy volume comps, and "reasonable" consensus estimates for its upgrade.
  • Tata Motors (NYSE: TTM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
  • Rockwell Automation (NYSE: ROK) was upgraded to Buy from Neutral at BofA/Merrill.
  • Fifth Third Bancorp (NASDAQ: FITB) was upgraded to Conviction Buy from Buy at Goldman.

Continue reading Analyst upgrades, downgrades and initiations: AFL, COH, CPB, DOW, MS, TTM ...

Movado beats estimates -- is now the moment to buy?

Movado (NYSE: MOV) is a watchmaker. It distributes timepieces based on various brands such as Lacoste and Coach (NYSE: COH). And its stock is on the rise today. During early afternoon trading, Movado is up by over 8% on very good volume. As can be expected, an earnings report is behind the excitement.

Now, to be certain, the stats weren't great. Movado is still reeling from the harsh economic times. Sales declined 33% in Q1, and there was a loss per share of $0.37. That compared very unfavorably to a profit of $0.05 per share in the year-ago period. Also, the gross margin slipped significantly.

Continue reading Movado beats estimates -- is now the moment to buy?

Coach (COH) rises on Q3 earnings, starts dividend

COH logoCoach (NYSE: COH - option chain) shares are headed higher today after the company reported a third-quarter adjusted profit of 38 cents per share this morning, above analysts' estimates of 36 cents per share. However, the even bigger news is that the company announced it will begin paying a quarterly dividend of 7.5 cents per share on June 29. That is a pretty bold statement in this environment. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on COH.

COH opened this morning at $20.18. So far today the stock has hit a low of $20.76 and a high of $21.62. As of 11:20, COH is trading at $20.76, up 2.53 (13.9%). The chart for COH looks bullish and S&P gives COH a positive 5 STARS (out of 5) strong buy ranking.

Continue reading Coach (COH) rises on Q3 earnings, starts dividend

Look for Coach's 'accessible luxury' lines to survive the downturn

In this era of the 'frugal consumer' -- characterized by stagnant median incomes, difficult labor market conditions, and an uncertain economic recovery timetable -- most investors agree the retail sector is best avoid.

But there are exceptions to the rule for investors who can tolerate moderate risk, and Coach (NYSE: COH) is one.

Continue reading Look for Coach's 'accessible luxury' lines to survive the downturn

Movado posts big loss -- don't waste your time on this stock

Movado Group (NYSE: MOV), maker of watches, reported numbers for the fourth quarter. Really bad numbers. Net sales dropped over 32%. For the bottom line, there was a net loss of $0.42 per share on an adjusted basis. In last year's Q4, Movado generated adjusted income of $0.40 per share. That is one hell of a drop. Furthermore, the market wasn't even close to anticipating this ugly performance. According to this source, analysts thought that the company would only bleed about $0.02 per share.

You know, I haven't worn a watch in a long time. Maybe a lot of people are thinking like me, that they don't really need watches since we have so much access to clocks via cell phones and other devices (I don't own a cell phone, but I'm content to simply seek out a clock if I'm out and about). Of course, I'm being a little facetious here. Movado is merely suffering through a bad economy. And it's perhaps in need of some better management. The company sells timepieces based on licensed brands such as Coach (NYSE: COH) and Tommy Hilfiger. Consumers are apparently satisfied with purchasing cheap, non-branded watches. Can't blame them.

Continue reading Movado posts big loss -- don't waste your time on this stock

Analyst upgrades, downgrades and initiations: RBS, COH, BJ, QCOM, SNDK, MAT, MGM ...

Analyst upgrades:
  • HSBC upgraded Royal Bank of Scotland (NYSE: RBS) to Overweight from Neutral as it believes the risk of immediate nationalization has been removed.
  • JP Morgan upgraded DTS Inc (NASDAQ: DTSI) to Overweight from Neutral to reflect accretion from the Neural acquisition and its expectation the company can generate strong cash flow during the downturn. The firm raised its target to $18.
  • Cowen upgraded Coach (NYSE: COH) to Outperform from Neutral citing the recent sell-off in shares.
  • BJ's Wholesale (NYSE: BJ) was upgraded to Buy from Neutral at UBS.
  • First Horizon (NYSE: FHN) was upgraded to Overweight from Equal Weight at Morgan Stanley.
  • Spartech (NYSE: SEH) was raised to Hold from Underweight at KeyBanc.

Continue reading Analyst upgrades, downgrades and initiations: RBS, COH, BJ, QCOM, SNDK, MAT, MGM ...

Stock pick and pans for troubled times: TIVO, MCD, BAA, SJM, AVP, SYK, CL ...

Earnings season was in full bloom this week, and BloggingStocks contributors often made their choices following a company's report. With the exception of very few, the conclusion was to stay away from most stocks, which says a lot about how companies did overall.

Still, there have been a select few that looked like good investment ideas even in these troubled times. So for those who can brave investing during such an earnings season, here are a few ideas from BloggingStocks contributors:

TiVo, Inc. (NASDAQ: TIVO) is a stock Peter Cohan looked at and gave five good reasons why this one could be a buy. The question is, however, whether the recent surge in the stock price already reflects these positives, or whether it still has room to grow.

Continue reading Stock pick and pans for troubled times: TIVO, MCD, BAA, SJM, AVP, SYK, CL ...

Coach no longer first class

Investors in luxury leather goods maker Coach Inc. (NYSE: COH) saw their shares tumble earlier this week when the company announced that profit fell 14% in its second fiscal quarter.

Coach earned 67 cents per share for the quarter compared to earnings of 69 cents per share in the year-ago quarter, and sales fell 1.8% to $960.3 million. Gross margin narrowed to 72.1% from 75.4% last year.

Like many other companies, Coach did not provide guidance for the balance of the fiscal year, signifying its lack of visibility going forward. But the company did try to assure investors by pointing to its nearly debt-free balance sheet and large cash position. Shares fell by as much as 15% during trading on Wednesday, but rallied to halve that loss later in the day.

In order to "protect our brand identity," CEO Lew Frankfort said the company resisted discounting during the holiday season. It paid a steep price to do so, because other retailers' heavy discounts hurt traffic at Coach's stores and in department stores.

Continue reading Coach no longer first class

Earnings highlights: Apple, Microsoft, GE, Johnson & Johnson, Harley Davidson and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

For more highlights from this week, see eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others

Continue reading Earnings highlights: Apple, Microsoft, GE, Johnson & Johnson, Harley Davidson and others

Coach's Q2 earnings prove that retail investing isn't fashionable

Okay, put your hand up if you like the idea of investing in retailers that base their shareholder value on fashion trends? Just as I thought. And while a lack of interest might be a contrarian indicator in some cases, I don't think it is in this case. Let's take Coach (NYSE: COH) as an example. The company reported Q2 earnings on Wednesday. As one might expect, they were weak and unattractive, the exact opposite of one of those Coach bags. Sales were down 2%, and earnings per diluted share were down 3% to $0.67, which this source says met expectations.

I'll give ample credit to Coach for meeting expectations. That's not easy to do given its business model, especially since Christmas was not kind to any of the malls across the country. There's not much Coach can do to thrive. The press release talks about keeping innovation strong, and about offering new collections, and about strong growth opportunities over in China. It's all meaningless. That previously cited source speaks of Coach's plans to cut prices and reduce expansion strategies. Coach is simply in defensive mode, it can do precious little to get traffic in its stores because consumers are reticent to spend. Actually, that last point will probably go down as one of the biggest understatements ever offered up in the history of financial commentary.

Continue reading Coach's Q2 earnings prove that retail investing isn't fashionable

Stocks in the news: IBM, BHP, ERIC, AAPL, UTX, F, BCS, C, UL, WMT ...

IBM (NYSE: IBM), the tech bellwether, reported quarterly results Tuesday after the close, surprising analyst with a 12% rise in profit. It also forecast 2009 earnings of at least $9.20 a share, compared to analyst expectations around $8.70 a share. Shares were up about 3.9% in premarket trading.

BHP Biliton (NYSE: BHP), the largest mining company in the world, said it would lay off 6% of its global workforce or 6,000 workers as a result of production cuts. Around 550 of them will be in the U.S. Shares declined nearly a percent in premarket trading.

Ericsson (NASDAQ: ERIC), the Swedish telecom equipment maker, announced a 31% profit drop and a 23% surge in sales. It also said it would cut 5,000 jobs in the attempt to save $1.2 billion in costs in 2009. Shares gained nearly 13.5% in premarket trading.

Many companies are due to report results on Wednesday: AMR Corp. (NYSE: AMR), UAL Corp. (NASDAQ: UAUA), BlackRock (NYSE: BLK) and Coach Inc. (NYSE: COH) and after the close, Apple Inc. (NASDAQ: AAPL) and eBay Inc. (NASDAQ: EBAY).

Apple Inc. (NASDAQ: AAPL) said it expects to earn $1.06 to $1.35 per share on sales from $9 billion to $10 billion in the first quarter, but analysts seem to expect more, estimating income of $1.39 per share on $9.74 billion in revenue, according to Thomson Reuters. Meanwhile, U.S. regulators are examining Apple's disclosures about Jobs' health problems to ensure investors weren't misled, according to Bloomberg sources. Shares gained about 1.3% in premarket trading.

Continue reading Stocks in the news: IBM, BHP, ERIC, AAPL, UTX, F, BCS, C, UL, WMT ...

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DJIA+17.4610,023.42
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S&P 500+2.671,069.30

Last updated: November 08, 2009: 10:11 PM

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