We’re always on the lookout for new stocks that we feel offer
conservative investors strong growth with limited risk. International
Flavors & Fragrances (this issue), is a good example.
At the same time, we constantly monitor our current recommendations
for reasons that might cause us to change our opinion.
Here are six with limited prospects that we now see as sells:
HARTE-HANKS INC. $12 (New York …read more »
LIZ CLAIBORNE INC. $6.38 (New York symbol LIZ; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 94.5 million; Market cap: $602.9 million; Price-to-sales ratio: 0.2; No dividends paid since December 2008; WSSF Rating: Extra Risk) designs and sells clothing and accessories for men and women. Its top brands include Liz Claiborne, Juicy Couture and Kate Spade.
Liz Claiborne continues to cut …read more »
LIZ CLAIBORNE INC. $4.76 (New York symbol LIZ; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 94.5 million; Market cap: $449.8 million; Price-to-sales ratio: 0.2; No dividends paid since December 2008; WSSF Rating: Extra Risk) will close its 87 “Liz Claiborne” outlet stores over the next few months. These stores sell heavily discounted clothing and accessories.
The company has sold many of …read more »
Consumer confidence is rising in the U.S., but the recovery remains fragile. To cut your risk, we look for consumer companies with well-known brands, like these three clothing retailers. Their strong brands should help them keep increasing sales, both in the U.S. and overseas. But only two are buys right now.
LIMITED BRANDS INC. $24 (New York symbol LTD; Aggressive Growth …read more »
J.C. PENNEY CO. INC. $31 aims to increase its annual sales by 25% over the next four years, mainly through exclusive merchandise deals. For example, it recently signed a 10-year deal with LIZ CLAIBORNE INC. $8.64 that made J.C. Penney the only U.S. department store that carries Liz Claiborne’s clothing and accessories. J.C. Penney also aims to spur its growth …read more »
WESTERN UNION CO. $18 has raised its dividend by 500%. The new annual rate of $0.24 yields 1.3%. The money-transfer specialist will also buy back $1 billion of its shares over the next three years. That’s equal to 8% of its market cap. Best Buy.
TENNANT CO. $25 has increased its dividend by 7.7%. The new annual rate of $0.56 yields …read more »
J.C. PENNEY CO. INC. $33 (New York symbol JCP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 235.9 million; Market cap: $7.8 billion; Price-to-sales ratio: 0.5; WSSF Rating: Average) has entered into a 10-year alliance with clothing maker LIZ CLAIBORNE INC. $5.69 (New York symbol LIZ; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 95.1 million; Market cap: $541.1 million; Price-to-sales ratio: …read more »
CANON INC. ADRs $34 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.2 billion; Market cap: $40.8 billion; Price-to-sales ratio: 1.0; WSSF Rating: Above Average) earned $181.1 million, or $0.15 per ADR, in the three months ended March 31, 2009. (Each American Depositary Receipt represents one Canon common share). That’s down 83% from $1.1 billion, …read more »