Filed under: Gap Inc (GPS), Kohl’s Corp (KSS)

On tonight’s MAD MONEY on CNBC, Jim Cramer said it is time to start nibbling into retail stocks after he’s been negative for a while. He thinks the Fed will start cutting rates soon and not everyone has realized they have bottomed out. The ultimate turnaround stock in the sector will be Gap Inc. (NYSE: GPS) because of the new management team. He is very particular here to only ease into the stock. He also likes Kohl’s Corp. (NYSE: KSS) because it is down 20% and has a major growth vehicle. American Eagle Outfitters (NYSE: AEO) is one that has insiders buying stock.

These 3 picks are interesting picks, although Gap seems to be mauled every month in crummy stores and won’t be able to fix itself fast. maybe that huge stock buyback can help it. This one may only have the “less bad is good” future, because its shoppers have abandoned it. It’s too hard to love the Gap and in a private equity absent market the hopes for a buyout seem a bit childish. Kohl’s and American Eagle are both in a spot that could generate serious returns if these go back to their prior highs. American Eagle at $25.00+ would generate close to a 40% gain if it goes back to a year high of $34.80, and Kohl’s at $57.00+ would also show close to a 40% gain for it to hit $79.55.

It is far too easy to call for the death of the consumer because you’d have to say “But, this time the consumer really will be dead.” Rumors of the death of the consumer seem to ALWAYS be exaggerated time after time. The safest bet here for the whole retail sector is perhaps the Merrill Lynch Retail HOLDRs, although you should realize that the big box retail plays dominate this and smaller clothing retail plays are not represented well at all in this one. The other targeted ETF for the group is PowerShares Dynamic Retail. That one does have this specific clothing retail mixed into more of a broad pool. It is just less liquid.

Jon Ogg can be reached at jonogg@247wallst.com; he produces the 24/7 Wall St. Special Situation Investing Newsletter and does not own securities in the companies he covers.

Permalink | Email this | Comments

Share This

Filed under: SEC filings, Other issues, Deals, Initial public offerings

Wall Street’s equity market has a very light schedule this week, with many investment banks and related financial organizations on summer break. Only one deal, a Secondary, may price this week:

Secondaries:

Possible

CVD Equipment (AMEX: CVV), a 2.5M share Secondary for this semiconductor equipment company. C.E. Unterberg is the lead manager.

- -

For the latest market intelligence on IPOs, Syndicate, and after-market trades, check out The Fly Syndicate at www.theflyonthewall.com. [Subscription required.]

Permalink | Email this | Comments

Share This

Filed under: Microsoft (MSFT), Oracle Corp (ORCL), salesforce.com inc (CRM)

With its media prowess, it seems like Salesforce.com is the only player in the customer relationship management (CRM) space.

But, of course, there are a variety of competitors. Some are big players, like Oracle (NASDAQ: ORCL), Microsoft (NASDAQ: MSFT), and SAP (NYSE: SAP).

There are also some privately-held players, such as SugarCRM.

In fact, the company is launching its newest version of its software (the official release date is the end of September). Some of the new capabilities include improved customization and better approaches for an on-demand architecture.

Actually, the company has an interesting strategy. That is, there is an open source version of the software as well as different commercial solutions.

But is it really enough? Well, according to a piece in CNET, it looks like SugarCRM plans for a public offering for 2008 to 2009. The company hopes to achieve $100 million in revenues over this time period.

Of course, Salesforce.com is on track for $700 million in revenues for the year and is still growing at break-neck speed. Yes, SugarCRM has a lot to catch-up on — and perhaps the better strategy is to sell out.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Permalink | Email this | Comments

Share This

Filed under: Scandals, Business of sports

So in case you missed it, Michael Vick has plead guilty and apologized today at a press conference. He took no questions, but offered this statement (emphasis added):

“… I was ashamed and totally disappointed in myself, to say the least,” he continued. “And I want to apologize to all the young kids out there for my immature acts. What I did was very immature, so that means I need to grow up. I totally ask for forgiveness and understand as I move forward to a better Michael Vick the person, not the football player. I take full responsibility for my actions. Not for one second will I sit here and blame anyone else for my actions. It was totally irresponsible. I feel like we all make mistakes. I made a mistake in using bad judgment and making bad decisions. And those things just can’t happen. Dogfighting is a terrible thing and I did reject it.”

Immature? Immature? Right, normally bankrolling dogfighting rings that involve drowning dogs is something you get over by the time you’re 14 or so? Immature would be flipping off the fans during a tough game. Irresponsible? That would be like not showing up for practices on time.

Michael Vick had an opportunity to achieve some sort of redemption. He should have stood up there and said “What I did was evil, despicable, unconscionable, unforgivable, and disgusting. I am going to burn in hell for a very long time before I go upstairs, but I hope that I can go on and do some kind of good in my life.”

Instead, Vick cemented his reputation as another arrogant athlete, who doesn’t fully appreciate how heinous his actions were.

Read | Permalink | Email this | Comments

Share This

Filed under: International markets, Market matters, Money and Finance Today, Technical Analysis, S and P 500

Foreign financial stocks have outperformed their U.S. counterparts by a wide margin over the past four years.

The sector has been aided by positive industry consolidation trends, booming overseas property markets, and domestic monetary policies that have, on balance, been more accommodating than in the U.S.

And because of the shares’ heavy weighting in many equity benchmarks around the world, they have naturally attracted a disproportionate share of the sizable U.S. investment flows pouring into foreign markets since 2003.

Up until very recently, overseas banks and other such firms have also benefited from the perception that problems in the U.S. credit markets stemming from a bursting housing bubble and the subprime lending debacle are a localized concern.

As it happens, developments over the past few months indicate that some of the factors that have favored non-U.S. financials, in comparative terms at least, are beginning to fall by the wayside.

Continue reading Foreign financials: long-running outperformance coming to an end?

Permalink | Email this | Comments

Share This

Filed under: China, Options

iShares Trust FTSE/Xinhua China 25 Fund (NYSE: FXI) volatility up:

FXI rallied 6% to a record. FXI is an index fund that seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index. FXI was recently up $10.29 to $153.94. FXI September option implied volatility was at 53 above its 26-week average of 30 according to Track Data, suggesting larger risk.

China Mobile LTD (ADR) (NYSE: CHL) volatility elevated as CHL rallies 5% to record High.

CHL, a global wireless carrier with 301 million subscribers, was recently up $3.77 to $67.65. CHL September option implied volatility of 47 was above its 26-week average of 33 according to Track Data, suggesting larger price risk.

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

Permalink | Email this | Comments

Share This

Filed under: Products and services, Launches, Consumer experience, PepsiCo (PEP), Marketing and advertising, Media World

Billboard.com reported Friday that rapper Missy Elliott will appear in a new commercial for PepsiCo, Inc. (NYSE: PEP)’s Frito-Lay Doritos division beginning in mid-September. According to the piece, the rapper will stop working on a new song for her upcoming album to eat some of the brand’s new “Collisions” chips, where two different tasting chips reside in the same bag. As a result, the rapper decides to mix her hip-hop track with country, mimicking the pitch of the snack line.

The commercial is accompanied by a website that contains a link for fans to connect directly with Missy Elliott’s website and interact with information about her new album The Countdown, set for release in December. An interview with the rapper’s manager Mona Scott confirmed that the campaign, in particular the online experience, is seen “as a great way to further maximize Missy the artist and the new album” due to the provided exposure. The online campaign includes exclusive footage of the rapper, in addition to allowing consumers to create “mash-ups” (the article notes the campaign’s use of the word “collision”) of other tracks using the new song as the base.

Of course, the success that this campaign yields Missy Elliott and Warner Music Group Corp. (NYSE: WMG)’s Atlantic Records, is that fans will already be familiar with the new album when it is released. The growth of digital downloads rests with the success of online campaigns such as this (even if it is based in a TV campaign), and adds to their accessibility (even more than the TV component offers). It is in no way a new idea, but basing it with a new product and a tried and successful music style (mash-ups) offers a new perspective and potential for music growth online, even if it hurts CD sales.

Permalink | Email this | Comments

Share This

Filed under: Newspapers, Employees, Workspace

You mean watching reality television and playing Playstation doesn’t make you a good writer?

That seems to be the conclusion that a number of employers have reached. In a survey of 100 human resource executives, 45 listed written communication skills as the skill-set that entry-level employees most often lack. Other top choices were critical thinking and time management.

The problem may be that workers have just gotten too informal with their communications because of instant messaging and text messaging. “Yo bro, waz gud” may work with friends, but hirers tend to be unimpressed.

So if you’re looking for a job, keep the survey’s results in mind: If you can shine with your communication skills, you’ll be providing the strength that so many human resources people see as a common weakness.

If you need brush up on your punctuation, this is easily the most fun way to do it: Eats, Shoots & Leaves.

Read | Permalink | Email this | Comments

Share This

Filed under: Internet, Marketing and advertising

Last week on BloggingStocks, I wrote about Playboy Enterprises, Inc. (NYSE: PLA)’s foray into social networking, and wondered whether it would help the company to launch itself out of the doldrums.

Michael Schneider of www.barrelomoney.com left a comment to let me know that he thinks the company is already launching itself out of the doldrums:

Playboy, in our view has already started a substantial turnaround that has set the company of the right course. they have added many new sources of revenue and have strengthened the brand. Recent results are telling as many print media companies are floundering and competitors like New frontier turned in weak results.

But the stock isn’t showing evidence of this turnaround — which is good. If the company really is turning itself around, the stock could present an opportunity for investors.

Now we have the latest evidence of Playboy moving in a new direction: It’s opening a store in London, establishing a presence that has been missing there for the past 25 years. Playboy is also looking at opening a casino in London.

There’s been a lot of evidence lately that Playboy is at least trying to reinvent itself and become relevant again. If you think it has a chance, you may want to look at buying the stock.

Read | Permalink | Email this | Comments

Share This

Filed under: Launches, Industry, Competitive strategy, Wal-Mart (WMT), Home Depot (HD), Marketing and advertising, Target Corp. (TGT), Costco Wholesale (COST), Lowe’s Cos (LOW)

The Financial Times (subscription required) reports that Wal-Mart (NYSE: WMT) is considering acquisitions in the U.S. as it attempts to broaden its reliance on its 2,300 colossal “Supercenters” for future growth, citing a job posting that requests an executive to assess the “strategic implications of any possible M&A on our overall portfolio.”

This is Wal-Mart’s first attempt in more than 25 years to acquire a company in its own backyard. The move is seen as a response to the upcoming opening of Tesco’s (OTC: TSCDY) “Fresh & Easy” grocery markets in the United States. Tesco’s smaller neighborhood grocery markets cover 10,000 square feet of selling space, compared to Wal-Mart’s Supercenters, which dominate the landscape with 187,000 square feet. Wal-Mart also has discount stores without groceries that average 107,000 square feet.

Continue reading Wal-Mart fears Tesco’s potential

Permalink | Email this | Comments

Share This