Friday , 24 May 2013

Category Archives: Retailer Stocks

Printing Money.. And No We Are Not The Federal Reserve Or The Bank Of England


In this market it is tough to find the right trades as an overall consolidation makes it rough to find bottoms and play the right trades.  As we mentioned in Smart Play For The Smart Phone we see value in many waning stocks such as RIMM.  As our readers should know by now you make the best money buying when others are selling and selling when others are buying.  Today is no exception we are calling a special alert on VistaPrint traded under symbol VPRT.  Why you say?

Well first off it just took a major jump off a cliff and prices are way lower in the last few sessions.  On top of that earlier this year it was nearly double the price it is now.  Can you say bounce play??  Not convinced?  Consider the following:

No matter your opinion of Vistaprint, you cannot argue with its amazing history of profitable growth. The company has grown from $6.1 million in revenue in 2001 to $670 million for fiscal year 2010. That’s a 69% compounded annual growth rate — all done organically.

Vistaprint fast facts:

Market capitalization $1.5 billion
3-year revenue growth (annualized) 37.8%
5-year revenue growth (annualized) 49.1%
Cash & investments | debt $172.3 million | $5.2 million
EV / EBITDA 10.8

Source: Capital IQ, a division of Standard & Poor’s.
EV is enterprise value, which nets out the company’s debt and cash position. EBITDA is earnings before interest, taxes, depreciation, and amortization.

Research shows with Vistaprint, you have a company with an enterprise value / EBITDA of about 11, growing at more than 20%, with a rock-solid balance sheet. Add in an additional 1.6 million new customers during last quarter and a reliable revenue base comprised of 67% repeat customers, and you’ve got the makings of company on a mission.

Sound like a story you might of heard before; thats because you have, a formerly unknown company called Amazon (AMZN).  So what should you do? That is for you to decide with the help of your adviser and your own due diligence but for us, we already are buying the stock and recommending it to our friends and readers.  Want research up to the minute; then follow us on Twitter.

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Golden Gate Can’t Resist A $ZLC In The Rough


Shares of staggering diamond retailer Zale ($ZLC) are up 10 cents, or 3%, in after-hours trading at $3.10 after the firm reported this afternoon it got $150 million five-year senior secured term loan from private equity firm Golden Gate Capital. Golden also took warrants to purchase up to 25% of the company’s common stock.

“With the completion of our financial restructuring, we will now be able to focus 100% of our time on key merchandising, in-store and marketing initiatives to grow sales and return to profitability,” said CEO Theo Killion.

With strong financing and a keen focus on profitability we will continue to add to our position and buy on the dips. This one should make a nice move moving into the wedding season starting middle of year. Last time we called it in February from $2.78 it rallied to nearly $4 so make sure you don’t miss this run.

Zale in late February reported revenue down 14%, year over year, but still managed to beat analysts’ estimates, delivering its first quarterly profit in two years.

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