stock pickers
REITMANS, $14.60, symbol RET.A on Toronto, has decided to close its 25 Cassis stores. The company will then add these outlets to its other chains. Cassis is the newest of Reitmans’ banners. The company launched the chain in 2006. Its stores, which average 3,400 square feet, are located in major malls. Cassis sells business-casual clothing for women in their forties. Cassis supplies less than 2% of Reitmans’ yearly sales. However, the company will take a one-time charge of $4 million (after tax) in the current quarter to write down Cassis’ assets and pay severance to laid-off employees....
Pat McKeough responds to many personal questions on stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions. This week, an investor asked about one of the telecommunications giants of the world stock market, Telefonica. That prompted Pat to examine the balancing act a company like Telefonica undergoes when it experiences weakness in some markets and strength in others....
WESTJET AIRLINES $12.60 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 139.4 million; Market cap: $1.8 billion; No dividends paid) has just signed an interline agreement with Dubai’s Emirates airline. Under these agreements, two airlines cooperate on flights and baggage handling. WestJet has similar arrangements with Air France, China Airways of Taiwan, China Eastern, Alitalia, Korean Air, Australia’s Qantas Airlines, Japan Airlines, Hong Kong-based Dragonair and El Al Israel. Interline deals can become code-sharing agreements. These are similar to interline pacts, but they also let airlines sell seats and move luggage under their own names onto another carrier’s flights. WestJet has codesharing deals with Cathay Pacific, KLM and American Airlines....
Sweeping up after the 1929 Crash
Today, many investors might not immediately recognize the name of master investor John Templeton. In the final quarter of the last century, however, Templeton was as famous and highly regarded as Warren Buffett is today.
Today, many investors might not immediately recognize the name of master investor John Templeton. In the final quarter of the last century, however, Templeton was as famous and highly regarded as Warren Buffett is today.
Templeton’s investing strategy focused on value, not negative predictions
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FORTRESS PAPER, $41, symbol FTP on Toronto, is an international specialty paper producer.
In April 2010, Fortress bought an idled pulp plant in Thurso, Quebec, for $3 million. It then restarted pulp production at this plant. That has been contributing to the company’s revenue and earnings.
Meanwhile, Fortress has been converting the plant to produce a type of cellulose called dissolving pulp, which is mainly used in viscosefibre, or rayon. The conversion should be finished in early November. Dissolving pulp prices are high, and Fortress has already signed contracts with companies in China.
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In April 2010, Fortress bought an idled pulp plant in Thurso, Quebec, for $3 million. It then restarted pulp production at this plant. That has been contributing to the company’s revenue and earnings.
Meanwhile, Fortress has been converting the plant to produce a type of cellulose called dissolving pulp, which is mainly used in viscosefibre, or rayon. The conversion should be finished in early November. Dissolving pulp prices are high, and Fortress has already signed contracts with companies in China.
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Pat McKeough responds to many personal questions on stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions. This week, a particularly interesting request concerned a U.S. retailer with a reputation for quality. Deckers Outdoors has many popular brands, but it is contending with a highly competitive market. ...
EUROPEAN GOLDFIELDS, $9.65, symbol EGU on Toronto, has attracted a number of investments from Qatar Holdings LLC, a division of Qatar’s sovereign wealth fund, to develop its mines. Qatar Holdings has given European Goldfields a seven-year, $600 million U.S. loan. In addition, Qatar Holdings is buying a 9.9% stake in European Goldfields from Greek building firm Aktor Construction, and has an option to buy another 5.3%. European Goldfields will also issue 40.4 million warrants to Qatar Holdings at an exercise price of $9.08 a share. If Qatar Holdings exercises the warrants, it could increase its stake in European Goldfields to about 29%. It would also give European Goldfields an additional $366.8 million in development funding....
Adobe Systems Ltd., symbol ADBE on Nasdaq, makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use Adobe’s software to create print publications and web pages. The company also makes Adobe Flash, which lets web site developers make web pages more interactive by adding animation and video. In its third quarter, which ended September 2, 2011, the tech stock’s earnings fell 15.2% to $195.1 million, or $0.39 a share. A year earlier, it earned $230.1 million, or $0.44 a share. Without one-time items, earnings per share would have risen 1.9%, to $0.55 from $0.54. That beat the consensus estimate of $0.54 a share. Revenue rose 2.3%, to $1.01 billion from $990.3 million. That missed the consensus revenue estimate of $1.03 billion....
Stock option investing includes selling options; covered call writing is where you sell a call option against a stock you currently own.