In the current economic environment, a lot of companies are cutting back costs wherever they can in hopes of boosting earnings, but entertainment giant Walt Disney (NYSE: DIS) is taking a different approach and spending in hopes of boosting its sales.

Disney is hoping that by completely revamping its retail stores that it will be able to lure in more customers, keep them longer, and encourage more sales. In order to make the best of their new marketing direction, they have enlisted the aid of one of the greatest (in my opinion) retail designers out there, Steve Jobs.

Continue reading While others are cutting back, Disney is spending

While others are cutting back, Disney is spending originally appeared on BloggingStocks on Tue, 13 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

Children's Place Retail Stores, Inc. (Nasdaq: PLCE) has been in the news recently because it hasn't been able to maximize the value of the licensing agreement it made with The Walt Disney Company (NYSE: DIS) for its Disney Store chain a few years ago. In fact, it looks like Disney will be taking a lot of the stores back (I don't think Disney should do this, though). Well, Children's Place got some more bad news Monday in the form of an earnings cut from an analyst. John Zolidis, of Buckingham Research Group, believes Children's Place will achieve $0.40 per share for Q1, a number that is $0.09 lower than his previous earnings expectation. For the year, he thinks the retailer can do $1.44 per share; his previous estimate was $1.55 per share.

Of course, an analyst is not doing his job if he doesn't send something of a mixed message. He's cutting his expectations for earnings while at the same time saying that the valuation might be attractive at the moment for Children's Place's stock. Well, I sort of understand what he is saying, but let me say this: I don't like Children's Place right now and won't be buying shares, good valuation or not. This is one of those stocks and companies that just doesn't inspire confidence; the retailer plays in a tough niche, the stock is well off its highs, it couldn't properly grow Disney's retail operations, and, perhaps most importantly, there simply might be better ideas out there. If one wants to play retail, why not a Wal-Mart Stores, Inc. (NYSE: WMT) or a Target Corporation (NYSE: TGT)?

Nope, I'm not interested in Children's Place. With this earnings cut, and with stronger retailers up for consideration, I think investors might do better buying something else. Yes, the stock and/or company will probably rebound, but I'm just not in the mood to speculate with this brand.

Disclosure: I own shares in Disney; positions can change at any time.

Children's Place might be for kids, but it's not for my portfolio originally appeared on BloggingStocks on Mon, 07 Apr 2008 17:39:00 EST. Please see our terms for use of feeds.

Children's Place (NASDAQ: PLCE) operates 899 The Children Place stores and 328 Disney Stores. PLCE is recently up $1.58 to $24.23 on renewed takeover speculation. Ex-chief executive, Ezra Dabah, a owner of 17.9% of PLCE, has said he's considering buying the company and engaged Bear Stearns (NYSE: BSC) as his financial adviser. PLCE November option implied volatility of 76 is above its 26-week average of 45 according to Track Data, suggesting traders are positioning themselves for a high share price.

RadioShack (NYSE: RSH), a company with a presence of through approximately 6,000 stores, is recently up .33 cents to $19.78 on renewed & unconfirmed buyout speculation. RSH is expected to report EPS on 10/29. RSH call option volume of 5,206 contracts compares to put volume of 514 contracts. RSH November option implied volatility of 70 is above its 26-week average of 43 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Children's Place (PLCE) & RadioShack (RSH) volatility Up originally appeared on BloggingStocks on Tue, 23 Oct 2007 16:25:00 EST. Please see our terms for use of feeds.