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The week in preview: Eye on Marvel, KBR, First Solar, Deckers and more

Analysts surveyed by Thomson Reuters expected the parade of earnings declines to continue into the final week of February, with Martha Stewart Living Omnimedia Inc. (NYSE: MSO), Nordstrom Inc. (NYSE: JWN), Home Depot Inc. (NYSE: HD), Wynn Resorts Ltd. (NASDAQ: WYNN), Macy's Inc. (NYSE: M), DreamWorks Animation SKG Inc. (NYSE: DWA), Limited Brands Inc. (NYSE: LTD), Target Corp. (NYSE: TGT), Royal Bank Of Canada (NYSE: RY), Del Monte Foods Co. (NASDAQ: DLM), Kohl's Corp. (NYSE: KSS), Washington Post Co. (NYSE: WPO), Dell Inc. (NASDAQ: DELL), Gap Inc. (NYSE: GPS), Campbell Soup Co. (NYSE: CPB), RadioShack Corp. (NYSE: RSH), and H.J. Heinz Co. (NYSE: HNZ) all expected to post lower earnings for the most recent quarter. Office Depot Inc. (NYSE: ODP), Saks Inc. (NYSE: SKS), and Cooper Tire & Rubber Co. (NYSE: CTB) are expect to have swung to a loss.

Continue reading The week in preview: Eye on Marvel, KBR, First Solar, Deckers and more

Battle of the Brands: The ugly shoe fight: Crocs vs. Uggs!

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Crocs, those ubiquitous colorful rubber clogs you either love or hate, are perhaps on the road out as a fad. But don't blame the fashion police: blame company shenanigans and a spate of bad PR.

Recent news reports about their safety (Japanese children have reportedly been hurt riding on escalators in their rubber shoes) have only added to the company's woes.

Crocs Inc. (NASDAQ: CROX) has seen its share price plummet in recent months, reaching an all-time 52-week low after announcing it would adjust its first quarter guidance sharply downward. The company recently shut down its rubber plant in Quebec City due to the slowdown in U.S. retail orders. The guidance adjustment shocked analysts, and the stock began to melt like, well, like rubber. Indeed, this once darling of Wall Street has been brought low from all sides. My colleague Zac Bissonnette follows the company closely, (although I doubt he owns a pair himself) and recently wondered why the company wasn't addressing its safety concerns in its 10K.

Continue reading Battle of the Brands: The ugly shoe fight: Crocs vs. Uggs!

Bloggers' best stocks for 2008: VeriSign, Deckers and Priceline rank

Regular readers of BloggingStocks will find no shortage of stock picks for 2008 on our pages. Steven Halpern alone has compiled about 120 picks from the investment advisors he follows. But plenty of other bloggers have favorites for 2008 to share.

In an effort to consolidate the wealth of ideas into one handy post, here are a few of our bloggers' favorite selections for the year ahead:

VeriSign (NASDAQ: VRSN) is the 2008 pick of Georges Yared (check out how his 2007 picks did). He expects this internet security and domain registry firm to sell off its non-core assets and grow its core business in 2008.

Priceline (NASDAQ: PCLN) is the current favorite of Beth Gaston Moon. It's already had an amazing run in 2007, climbing from about $45 to $120 a share. Looking for a lower-priced stock? Beth recently spotlighted 10 Stocks for Under $10.

Deckers Outdoor (NASDAQ: DECK) is a stock I picked in a recent video, which Beth likes as well. I think it will continue to surprise to the upside on the strength of sales of its trendy Ugg boots. Zac Bissonnette thinks it will no doubt flame out at some point.

Continue reading Bloggers' best stocks for 2008: VeriSign, Deckers and Priceline rank

Ugg sales stay strong -- How about Deckers?

I've seen too many high-flying fashion stocks crater back to earth to take bullishness with companies like Deckers Outdoor (NASDAQ: DECK), the maker of Uggs, too seriously. Remember L.A. Gear?

But Deckers has had an amazing run this year, hitting a new 52-week high on Friday, making it a solid triple for the year.

According to Fortune, "Now, analysts are predicting even more upside for Deckers' stock. The reason? While other brands have been heavily discounted this holiday season, Ugg boots, which can cost upward of $200 a pair, are selling at full-price in most major department and specialty stores. More full-price sales mean fatter profits for the all-important fourth quarter."

It's all very exciting but I think investors need to be very careful. Uggs account for nearly 90% of Deckers' revenue, far outshining their Simple and Teva brands.

A bet on Deckers is a bet on the continued success of a pretty bizarre fashion trend -- at 50 times earnings and more than 5 times sales.

It's easy to be bullish when everything is going well, but traders will be dumping this one like they dumped Crocs (NASDAQ: CROX) at the first sign of slowing growth. And at some point, won't people have all the Uggs they need?

With about 19% of the float short, it looks like more than a few investors are lining up to bet signs of weakness are near.

Analyst initiations 5-16-07: AXP, CROX, EK, MA and URBN

MOST NOTEWORTHY: Crocs, Inc (CROX), Plantronics, Inc (PLT), MasterCard Inc (MA) and American Express Co (AXP) top Wednesday's noteworthy list:
  • JP Morgan started Crocs Inc (NASDAQ: CROX) with an Overweight rating based on the company's strong growth model.
  • JMP Securities upgraded Plantronics Inc (NYSE: PLT) with a Market Perform citing price competition and visibility in the speaker market.
  • MasterCard Inc (NYSE: MA) was started with an Underweight rating at Thomas Weisel citing concerns regarding increased pressure from bank issuing partners regarding fees and reduced cross border pricing benefits. Additionally,
  • Thomas Weisel started American Express Co (NYSE: AXP) with an Overweight rating, expecting increased card issuance migration and merchant migration due to increased pressure on bank fees and increasing consumer demand for rewards...
OTHER INITIATIONS:
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Symbol Lookup
IndexesChangePrice
DJIA+30.6910,464.40
NASDAQ+6.872,176.05
S&P 500+4.981,110.63

Last updated: November 27, 2009: 07:05 AM

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