Continue reading Can magazines get away with price increases?

Can magazines get away with price increases? originally appeared on BloggingStocks on Mon, 13 Apr 2009 13:30:00 EST. Please see our terms for use of feeds.

Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.

Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.

Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.

Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.

Continue reading The week in preview: High hopes for solar, not so much for home improvement

The week in preview: High hopes for solar, not so much for home improvement originally appeared on BloggingStocks on Sun, 16 Nov 2008 12:30:00 EST. Please see our terms for use of feeds.

Late summer bestsellers won't be enough to save the bookstores originally appeared on BloggingStocks on Mon, 04 Aug 2008 11:15:00 EST. Please see our terms for use of feeds.

Being a shareholder in Trans World Entertainment (NASDAQ: TWMC) hasn't been a lot of fun for the past decade or so. The company is the leader in mall-based music sales but, as you can imagine, iTunes and Wal-Mart (NYSE: WMT) have made that market position into a Pyrrhic victory.

Founder and CEO Robert Higgins withdrew his $5-per share takeover offer back in May, citing the poor credit market, and a $7-per share offer from a fund calling itself Sherwood Investments mysteriously evaporated. Now the stock is down in the $2.50 per share range and, with no going-private deals on the horizon, the company is making a last ditch effort to execute some kind of turnaround that might restore some modicum of shareholder value.

The company is in the process of rebranding all of its stores under the f.y.e. label, and is also embarking on an ambitious ad campaign featuring R&B star Ne-Yo and WWE star Batista in television commercials. The Business Review reports:

In one 30-second commercial, Batista and another WWE wrestler, MVP, drop-kick and body-slam each other in what seems like an impromptu fight inside an f.y.e. mall store. Bass-thumping rock music blares as fans cheer from outside the roll-down security gate.

In the other spot, teenage girls at an f.y.e. realize the chart-topping singer Ne-Yo is wearing headphones in the store, singing aloud to himself a cut from his yet-be-released album, "Year of the Gentleman."

Continue reading Trans World Entertainment attempts revival with ad campaign

Trans World Entertainment attempts revival with ad campaign originally appeared on BloggingStocks on Sun, 13 Jul 2008 15:10:00 EST. Please see our terms for use of feeds.

MGL Asset Management Group's press release purporting to offer $7.25 per share for Krispy Kreme Doughnuts (NYSE: KKD) was pretty quickly debunked as illegitimate and, very probably, an effort to hype the stock for a quick buck. Jon Ogg reported on the mysterious offer on our sister site, BloggingBuyouts.

The stock jumped on the news of the offer, but quickly gave up all the gains and then some after media and analyst reports dismissed the offer. But anyone who jumped on the stock at the sight of the press release got burned.

How can you prevent this from happening to you? A good rule of thumb: When you're looking for information on material developments, look to the SEC filings. The offer was made solely through a press release -- something that anyone with a few hundred bucks to pay the wire fee could send into the hands of millions of investors in a few minutes. Until you see something about the "offer" in the SEC's Edgar Database, it should be regarded as a rumor. I wrote about a similarly non-materializing offer at Trans World Entertainment (NASDAQ: TWMC) back in November.

Another solution is to leave the "in-play" trading to the pros -- it's all about information and you're unlikely to have an edge. If you see a news item that a company has received an offer, don't jump in.

What exactly is a takeover rumor? Be skeptical originally appeared on BloggingStocks on Sun, 06 Jul 2008 15:10:00 EST. Please see our terms for use of feeds.

CNBC reports that the video game industry is making progress in its efforts to offer downloads of high-quality games over the internet. Nintendo has introduced WiiWare, which lets users download games for the Wii from independent publishers. Developers set the price -- far cheaper than the high-budget games put out by the big publishers -- and Nintendo takes a chunk of the revenue. CNBC adds that "Digital delivery of all forms of entertainment is widely considered to be a foregone conclusion. Only the timeframe is in question. Not only will publishers have to learn to adapt, but game retailers such as Gamestop (NASDAQ: GME) will have to figure out how to compete directly with companies that are also clients."

What happens if the downloading trend takes off as most experts assume it will? The story of Trans World Entertainment (NASDAQ: TWMC) could be a harbinger of things to come if Gamestop is unable to adapt. As the number-one operator of mall-based CD stores, Trans World has seen its sales and profitability plummet -- the shares have declined from over $13.00 in 2005 to the current price of $2.60. The market was very late in pricing in the disastrous effects that the MP3 would have on the brick-and-mortar industry.

Maybe Gamestop can adapt. But with a P/E ratio of over 30 for a company whose business model will have to change drastically over the course of the next decade, investors may want to keep in mind the collapse of Trans World Entertainment.

Is Gamestop the next Trans World Entertainment? originally appeared on BloggingStocks on Sun, 18 May 2008 16:10:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Citigroup upgraded shares of National Financial Partners (NYSE:NFP) to Buy from Hold on valuation, as they believe the recent weakness is overdone. Citigroup also added the stock to their Top Picks Live list.
  
• Jefferies upgraded shares of Blackbaud (NASDAQ:BLKB) to Hold from Underperform on valuation, as they believe management did the right thing by lowering guidance while buying back stock more aggressively.
  
• B. Riley lifted Trans World (NASDAQ:TWMC) to Buy from Neutral as they believe the company could ultimately go private should credit conditions improve

• Keefe Bruyette raised Anworth Mortgage (NYSE:ANH) to Outperform from Market Perform.
  
• Unit Corp (NYSE:UNT) was upgraded at Raymond James to Outperform from Market Perform.
  
• RBC Capital upgraded Brandywine Realty Trust (NYSE:BDN) to Sector Perform from Underperform.

Analyst upgrades: NFP, BLKB and TWMC originally appeared on BloggingStocks on Thu, 08 May 2008 11:07:00 EST. Please see our terms for use of feeds.

Trans World Entertainment CEO withdraws takeover offer originally appeared on BloggingStocks on Wed, 07 May 2008 11:18:00 EST. Please see our terms for use of feeds.

Continue reading Sherwood Investments' flipflop on Trans World

Sherwood Investments' flipflop on Trans World originally appeared on BloggingStocks on Thu, 13 Dec 2007 08:38:00 EST. Please see our terms for use of feeds.

Continue reading Trans World Entertainment gets a 13-D filing from Sherwood

Trans World Entertainment gets a 13-D filing from Sherwood originally appeared on BloggingStocks on Wed, 12 Dec 2007 14:20:00 EST. Please see our terms for use of feeds.

Trans World Entertainment Update: Is Sherwood serious? originally appeared on BloggingStocks on Fri, 30 Nov 2007 16:31:00 EST. Please see our terms for use of feeds.

On November 19th, I reported that Sherwood Investments, an investment manager purporting to own a 4.34% stake in Trans World Entertainment (NASDAQ: TWMC) had put out a press release announcing its opposition to CEO Robert Higgins' proposed buyout of the company at $5 per share.

Now, Sherwood Investments has upped the ante, putting out another press release offering to buy the company for $7 per share, disclosing a 4.95% stake in the company.

The stock soared on the news, closing at $5.76, a rise of nearly 16%. But I think investors should react to the "news" with a good deal of skepticism.

Continue reading Is Sherwood Investments tossing Trans World shareholders an air ball?

Is Sherwood Investments tossing Trans World shareholders an air ball? originally appeared on BloggingStocks on Fri, 30 Nov 2007 08:15:00 EST. Please see our terms for use of feeds.

Trans World chief's buyout plan runs into opposition originally appeared on BloggingStocks on Mon, 19 Nov 2007 20:10:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: The U.S. banking sector, HSBC Holdings, Trans World and Mips Technologies were today's noteworthy downgrades:

• CIBC downgraded the U.S. Banks sector to Underweight from Market Weight as they see another leg down as investors shift focus away from write-downs to the impact the write-downs will have on risk-weighted assets and capital ratios.
• Morgan Stanley downgraded shares of HSBC Holdings Plc (NYSE: HBC) to Equal Weight from Underweight, as they believe the company may have to set aside more money for bad loans in the U.S.
• B. Riley downgraded shares of Trans World Entertainment Corporation (NASDAQ: TWMC) to Neutral from Buy, as they believe the downside risk should the Bob Higgins acquisition proposal fall through outweighs the potential upside should the bid be raised or should another bidder emerge.
  
• B. Riley also downgraded Mips Technologies Inc (NASDAQ: MIPS) to Neutral from Buy following the company's Q1 results to reflect the company's deteriorating balance sheet and licensing business softness.

• Lehman downgraded Federal National Mortgage Association (NYSE: FNM) and Federal Home Loan Mortgage Corporation (NYSE: FRE) to Equal Weight from Overweight.
• Bear Stearns downgraded Wyeth (NYSE: WYE) to Peer Perform from Outperform.
• Concur Technologies Inc (NASDAQ: CNQR) was downgraded to Market Perform from Outperform at Piper.
• Citigroup downgraded shares of E-Trade Financial Corporation (NASDAQ: ETFC) to Hold from Buy.

Analyst downgrades: U.S. banking sector, HBC, TWMC and MIPS originally appeared on BloggingStocks on Mon, 12 Nov 2007 09:55:00 EST. Please see our terms for use of feeds.

Trans World CEO makes an offer for the company -- is it fair? originally appeared on BloggingStocks on Fri, 09 Nov 2007 18:31:00 EST. Please see our terms for use of feeds.

Buffalo Wild Wings-(NYSE: BWLD) August volatility Elevated at 98 into 7/31 EPS. The company owns, operates and franchises 445 restaurants featuring chicken wings. BWLD is recently up .28 to $39.54. It will report EPS after the close on July 31st. BWLD August option implied volatility of 98 is above its 26-week average of 42 according to Track Data, suggesting larger risk.

Indymac Bancorp-(NYSE: IMB) August volatility Elevated at 110 into 7/31 EPS. Indymac, the 7th largest savings and loan and the 9th largest mortgage originator in the nation, will report EPS on July 31. Shares are recently down .48 to $22.61 on subprime mortgage concerns. IMB call option volume of 4,261 contracts compares to put volume of 13,489 contracts. IMB August option implied volatility of 110 is above its 26-week average of 44 according to Track Data, suggesting larger risk.

Disney-(NYSE: DIS) August volatilities up as expected into 8/1 EPS. Disney is expected to report EPS of .55 cents after the close on 8/1 according to Thomson First Call. CIBC has a $40 price target on DIS. DIS August option implied volatility of 27 is above its 26-week average of 21 according to Track Data, suggesting larger price fluctuations.

Time Warner-(NYSE: TWX) August volatility Elevated at 31 into EPS & Outlook. TWX is expected to report EPS of .21 cents on 8/1. TWX August option implied volatility of 31 is above its 26-week average of 21 according to Track Data, suggesting larger price fluctuations.

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

Option update 7-30-07: Buffalo Wild Wings-BWLD August volatility Elevated at 98 originally appeared on BloggingStocks on Mon, 30 Jul 2007 17:15:00 EST. Please see our terms for use of feeds.

While the record industry continues its death-spiral, evidenced by declining share-prices of companies like TransWorld Entertainment (NASDAQ: TWMC) and Handleman (NYSE: HDL), there is at least one bright spot: Sales of Latin music are on the rise. As a big fan of contemporary Latin music, I'm going to make a confession here: I first got interested in Latin Music in 1999 when Ricky Martin sang "The Cup of Life" at the Grammys. Yeah, good stuff. I also liked Latin pop singers like Enrique Iglesias and Marc Anthony. But at the Latin Invasion faded out of mainstream American pop culture, a new breed of Latin stars are cropping up, demanding attention: groups like Bacilos and rappers like Daddy Yankee are providing edgier, more interesting music for a more mature audience.

According to Enrique Reyes of Reyes Musica, Latin Americans haven't yet become interested in downloading music, preferring the now old-fashioned CDs. While Latin music may buy some time for traditional record stores, ultimately it will move online. As Latin Americans earn more money and gain access to technology and credit cards, they too will buy their music online. As they have more money and access to the Internet, companies like iTunes and Napster will move quickly to provide them with the more obscure tracks from their native countries that they are looking for.

With the outlook for music retailers looking so bleak, might these make an interesting contrarian play? I don't think so. Handleman, which currently trades around its net current asset value, is losing money and recently eliminated its dividend. Most of its assets consist of inventory and the whole point is that CDs aren't selling. If the inventory was worth what it's listed at, they wouldn't be in trouble.

TWMC, for better or for worse, has chosen to go all-in. The operator of music retail outlets acquired Sam Goody and the Suncoast Motion Picture Company last year, and narrowly missed out on its bid to acquire the assets of Tower Records out of bankruptcy. The company is trying to refocus itself as an "Entertainment Store" and with its Mix&Burn service consumers can download songs at the store and burn them onto a CD or iPod, for a fee. Problem: Why would you go to a mall to do something you can do at home? I don't see in-store CD burning as being the future of music delivery. But I could be wrong.

I enjoy a contrarian play as much as the next guy, and music retailers certainly qualify. But while many newspapers (another interesting contrarian play) continue to generate excellent cash-flow, these music companies have stopped doing that. Perhaps this is why there has been a lot of merger and acquisitions activity surrounding newspaper companies and none to speak of around the music retailers.

Latin music booms, CD retailers fizzle originally appeared on BloggingStocks on Mon, 05 Mar 2007 12:40:00 EST. Please see our terms for use of feeds.

Cashin' in on the country music boom originally appeared on BloggingStocks on Mon, 15 Jan 2007 10:50:00 EST. Please see our terms for use of feeds.

Trans World's sack of coal originally appeared on BloggingStocks on Thu, 04 Jan 2007 12:18:00 EST. Please see our terms for use of feeds.