Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at
http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above.
------------------------------------------------------------------------
Teen apparel retailers American Eagle Outfitters and Urban Outfitters are both making the news today after being beaten up on the market, with both stocks near 52-week lows. While Urban Outfitters did see some pretty good Q4 results from its Anthropologie business at least, American Eagle's earnings report was awful, with profits down a staggering 89% from the same quarter last year.
On Tuesday's Investor Beat, host Chris Hill and Motley Fool analysts Morgan Housel and Mike Olsen take a look at the extremely difficult business of teen apparel. Not only is the customer base notoriously fickle, but Mike also notes that they are a very underemployed demographic at the moment, even while the broader economy recovers. Those two factors together make this an exceptionally difficult consumer base to appeal to, though Mike also takes a look at one advantage Urban Outfitters may have over the competition.
Then, in a deal worth $1.8 billion, Men's Wearhouse is finally buying Joseph A. Bank. The market loved the deal with both stocks up on the news, but Mike points squarely at JoS. A. Bank shareholders as the real winners of the deal, as Men's Wearhouse will be paying an outstanding ten times EV/EBITDA for the company. The guys discuss why the elimination of an element of irrational competition is one factor making the deal worth the price, as well as why men's apparel may be an easier market than other apparel markets, and what the experience of shopping at the new combined company may look like from here.
Also, shares of J.C. Penney moved upward today, after analysts upgraded the stock to a buy on expectations that same-store sales will continue to grow in 2014. However, with such low hurdles to clear for J.C. Penney to grow its same-store sales, is this prediction really indicative of a company turning around, or is the optimism here short sighted? Morgan makes the point that this could be what Warren Buffett once called a "cigar butt stock." They also consider whether the company would need to get a lot smaller before a turnaround was even possible, and what plan, if any, management could have for bringing customers back in the door.
And finally, Mike and Morgan each discuss stocks they're watching closely this week. Morgan says that for a real circus, keep an eye on Plug Power. The insane volatility around this stock is a symbol of the amount of speculation there is in the power market at the moment. For a stock to buy however, Morgan tells investors why he still loves Paychex. Meanwhile, Mike takes a look at Chiquita Brands International, and its billion-dollar deal to buy Fyffes, creating the world's largest banana supplier. Mike discusses what impact this will have on the banana market, and why it may not be struck down by regulators, despite starting to seem like a monopoly.
Visit us on the web at http://www.fool.com, home to the world's greatest investing community!
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/p...
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool
Big Consolidations in Men's Fashion | Investor Beat - 3/11/14 | The Motley Fool investors bank email | |
| 4 Likes | 4 Dislikes |
| 1,964 views views | 205K followers |
| News & Politics | Upload TimePublished on 11 Mar 2014 |
Không có nhận xét nào:
Đăng nhận xét