Consumers Still on Suicide Watch

Most of the tally-taking of the holiday shopping season is reporting a joyous occasion marked by the revival of the consumer. This may have been evidenced by the Conference Board’s December reading of its Consumer Confidence Index Tuesday, as it rose to near a post-recession peak. However, I suggest you take a closer look, because you’ll see that the situation remains bleak.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relevant Tickers: NYSE: XRT, NYSE: WMT, NYSE: PIR, NYSE: ETH, Nasdaq: HOFT, NYSE: HD, NYSE: LOW, Nasdaq: AAPL, NYSE: BBY, NYSE: LTD, NYSE: CHS, NYSE: ANN, NYSE: GPS, NYSE: M, NYSE: JCP, NYSE: JWN, NYSE: TJX, NYSE: KSS, Nasdaq: COST, NYSE: TGT, NYSE: WMT, Nasdaq: WTSLA, Nasdaq: HOTT, NYSE: AEO, NYSE: ARO, NYSE: ANF, NYSE: SAK, NYSE: TIF, NYSE: TLB, NYSE: LL, Nasdaq: BLDR, NYSE: FO, NYSE: LEG, NYSE: TPX, NYSE: AYI, NYSE: LZB, Nasdaq: SCSS, NYSE: ZZ, NYSE: FBN, NYSE: NTZ, Nasdaq: SHLD, NYSE: DDS, Nasdaq: BONT, Nasdaq: CPWM, Nasdaq: BKRS, Nasdaq: BEBE, NYSE: BKE, Nasdaq: CACH, Nasdaq: CMRG, Nasdaq: CATO, NYSE: CBK, Nasdaq: CTRN, NYSE: PSS, Nasdaq: DEST, Nasdaq: DBRN, NYSE: DSW, Nasdaq: FINL, NYSE: FL, Nasdaq: GYMB, NYSE: GES, NYSE: JCG, NYSE: JNY, Nasdaq: JOSB, NYSE: NWY, NYSE: JWN, NYSE: MW, Nasdaq: SYMS, Nasdaq: PLCE.

Consumer Suicide Watch

At 64.5, the Consumer Confidence Index was up a bunch from November’s 55.2 mark. November, not coincidentally, saw the start of holiday shopping deals and also a 15 point surge from October’s 40.9 depressed state. So, it appears consumers’ pseudo-drunken state was the sole source of satisfaction. The same driver was likely behind the general rise in retailer shares over the last half of the year, but we have a warning about that as well, entitled, Sell Consumer Stocks Now, or something like that. Let’s be clear, an index reading 64.5 here does not mark a happy state of affairs, just a better state sadness.

Even Lynn Franco, the Director of the Conference Board Research Center, warned, ”While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes.” I still see mostly bad attitudes where I look. For instance, the Conference Board reports that the number of those surveyed who thought business conditions were good improved all the way up to 16.6%. Those who said business conditions were poor measured a far greater number, at 33.9%, but that was up from 38% the month before. Is this really good news?

Get this, those claiming jobs were plentiful improved to as high as 6.7%, way up from 5.6%. Meanwhile, those who felt like finding employment was difficult in December measured 41.8%, better than November’s 43%. Merry Christmas? Is this really a reason to spread holiday cheer by spending scarce dollars?

Most of the month’s confidence gains came in the expectations portion of the survey. In the past, I’ve warned that investing on this is like putting your money behind a hope and a prayer. Now, I’m the religious sort, but I tend to like to see some evidence of opportunity before investing on it. In the past, confidence gains driven by expectations have been proven easily deflated.

This latest measurement showed the Expectations Index rose to 76.4, up from 66.4. Take note now that the Present Situation Index measured a much lower 46.7, though up from 38.3. Those surveyed who saw business conditions improving over the next six months only increased to 16.7%, up from 13.7%. These gains from the prior month are what you are betting on if you invest on the basis of this month’s data. As you can see, the current state of affairs remains depressed. Of those surveyed, those anticipating improved job opportunities in the months ahead gained to just 13.3%, but that was up from 12.4%. Those who expected fewer jobs numbered a greater 20.2%, but that was improved from 23.8%.

The details of these reports are important, and it remains my pleasure to dissect the data and present it to you in easy reading form so that you may make informed investment decisions based on more than the porous reports of the traffic seeking popular press. The headlines of late have been preoccupied with the apparent positive shift in attitudes and lift in consumer spending, but I still see this economy on suicide watch.

Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

magicJack Vocal Tec (Nasdaq: CALL) - The Magic is Back

Shares of magicJack Vocal Tec (Nasdaq: CALL) were among the market’s leading gainers last Friday, on news of strong fourth quarter sales of the company’s latest Internet telephony device. The shares also got extra lift from a second simultaneous announcement, as the company canceled a dilutive share offering. The unexpected sales provided the needed operating capital in the offering’s stead. Shares of CALL were up 18% on the day, placing the company among the market’s leading gainers.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: Nasdaq: ALSK, NYSE: T, Nasdaq: ATNI, NYSE: BCE, NYSE: CTL, NYSE: CHT, NYSE: CBB, Nasdaq: CNSL, Nasdaq: EONC, Nasdaq: EQIX, Nasdaq: FRP, Nasdaq: FTR, Nasdaq: HTCO, OTC: IAGI.PK, Nasdaq: CALL, Nasdaq: SHEN, Nasdaq: SURW, Nasdaq: TWTC, Nasdaq: UNTK, NYSE: VZ, NYSE: VG, Nasdaq: WWVY, Nasdaq: WIN, Nasdaq: AMCX, Nasdaq: ASCMA, NYSE: CVC, Nasdaq: CHTR, Nasdaq: CMCSA, Nasdaq: CRWN, Nasdaq: DTV, Nasdaq: DISCA, Nasdaq: DISH, Nasdaq: LBTYA, Nasdaq: LNET, NYSE: SJR, Nasdaq: TIVO, Nasdaq: VMED.

See my review of the old magicJack

The Magic is Back

It appears the magic may in fact be back for magicJack (Nasdaq: CALL). The company announced Friday that its latest product, the magicJack Plus, is basically selling like hotcakes (whatever that means), with approximately 365K units sold in the last 30 days. The original magicJack device needed to be plugged into a computer connected to the internet to make use of it, but the magicJack Plus connects directly into the internet line. Thus, you do not have to keep your computer on 24/7 to make or receive phone calls. It’s a major upgrade in technology and utility value, and the price is likewise higher, retailing at $69.95, versus the $39.95 price for the original magicJack.

Because of the strong sales, the company expects to have a cash store of approximately $50 million by next month. Thus, it was able to kill its planned share offering. Not only did it do so, but the company will renew its share repurchase program as well. It’s an interesting shift in capital management that I find telling about the management team’s forecasting prowess. That means that both upside and downside surprises are highly possible in the future as well. Such unreliability and uncertainty likely burdens the company’s valuation a bit.

Internet telephony has been an interesting market to follow. We saw Vonage (NYSE: VG) dive after its high profile IPO in the middle of the last decade. However, Vonage’s product price point probably was not or is not far enough off the major telecoms to stick, in my view. VG shares still rose in sympathy with CALL Friday, up 7.3%, to $2.36. Likewise, Skype, now owned by Microsoft (Nasdaq: MSFT), did well enough but never caught on with the broad populace. Perhaps it was just too early or maybe the tech savvy needed to use it was too much for an older demographic of American citizens. It’s clear, though, that with the evolution of technology usage, Internet telephony will be an easy learn. Meanwhile, magicJack just made it easy enough for even non-tech savvy seniors to use.

Eventually, the Verizon’s (NYSE: VZ), AT&T’s (NYSE: T) and Sprint Nextel’s (NYSE: S) of the world will feel threatened by internet telephony and magicJack, if they aren’t already. I’ve noted that the price difference between Verizon’s independent internet service and internet and telephone service bundle is marginal, leaving me to question whether “the jack” would really offer worthwhile savings given the convenience trade-off of the first model. I suspect Verizon and other internet providers have priced this way for this very reason. You can get cheaper internet service from the big boys of the industry, but you get less bandwidth in return. Now this second product model by magicJack presents a different story, and given that the ability to port your old number has finally arrived, the game may be on.

The important question to ask is what strategy will the telecom giants employ to crush this emerging competition. Well, the big box players are well positioned to do so, given that they control the internet. However, I could see the cable providers, who are also providers of bandwidth, like Time Warner Cable (NYSE: TWC), Cablevision (NYSE: CVC) and Comcast (Nasdaq: CMCSA) having interest in acquiring a magicJack in order to provide a more competitive bundle package against the telecom players’ offerings. Thus, the new magicJack might be more than just a nifty product for a thrifty spender. Its shares and those of similar servicers might find broad appeal one way or another. Given that a recent census poll showed about half of America is poor, and given the number appears to be increasing, even the worst case scenario seems to present an expanding market opportunity.

There’s just one analyst following the company, based on Yahoo Finance data. His EPS estimate for 2012 appears to be $1.83, which puts its P/E ratio at 13.1X as of Friday. While EPS growth looks to approximate 71% in 2012, the long-term growth estimate is 17.5%, again based on Yahoo Finance and its data providers. Based on this thumbnail, the stock would appear undervalued. The question is, can Internet telephony, and more importantly, the MagicJack, really replace standard telephone service? It once seemed unlikely, but there certainly is a market of bargain seekers willing to try it out, and that market is expanding as economic difficulties continue. Meanwhile, the technology just got easier to operate.

I suspect there is untapped value in recurring revenue not currently being maximized. Today, you buy the magicJack and have telephone service all year long, and then are asked to pay the same amount the following year to continue using the service (though the company stretches that revenue across the year). I suspect that an acquirer would create value by raising the monthly charge tied to magicJack usage through the year. So, while lowering the revenue received currently through telephone service provision, they could also add value to the acquired service and position more competitively against the big three telecom providers. I see this as a clear opportunity for the cable industry, but bad news for the savvy consumer now benefiting from his "jack".

The stock’s chart seemed to show market disinterest until volume picked up in 2010. The cure for questions is earnings growth, and earnings visibility is a new development here. As earnings grow now, and with a P/E near single digits, there would be little stopping the share price following earnings per share higher. The company managed to sell 8 million of its original magicJacks® into a market of roughly 100 million households. This newest product is far superior and the economics more attractive. Its appeal can reach a broader span of Americans, in my view. So, I am a short to medium term fan of magicJack shares (Nasdaq: CALL) and recommend them for aggressive, emerging growth and micro to small cap portfolios.

Editor’s Note: This article should interest investors in Alaska Communications Systems Group (Nasdaq: ALSK), AT&T (NYSE: T), Atlantic Tele-Network (Nasdaq: ATNI), BCE Inc. (NYSE: BCE), CenturyLink (NYSE: CTL), Chunghwa Telecom (NYSE: CHT), Cincinnati Bell (NYSE: CBB), Consolidated Communications (Nasdaq: CNSL), eOn Communications (Nasdaq: EONC), Equinix (Nasdaq: EQIX), FairPoint Communications (Nasdaq: FRP), Frontier Communications (Nasdaq: FTR), Hickory Tech (Nasdaq: HTCO), IA Global (OTC: IAGI.PK), magicJack VocalTec (Nasdaq: CALL), Shenandoah Telecommunications (Nasdaq: SHEN), SureWest Communications (Nasdaq: SURW), tw telecom (Nasdaq: TWTC), UniTek Global Services (Nasdaq: UNTK), Verizon (NYSE: VZ), Vonage (NYSE: VG), Warwick Valley Telephone (Nasdaq: WWVY), Windstream Corp. (Nasdaq: WIN), AMC Networks (Nasdaq: AMCX), Ascent Media (Nasdaq: ASCMA), Cablevision (NYSE: CVC), Charter Communications (Nasdaq: CHTR), Comcast (Nasdaq: CMCSA), Crown Media (Nasdaq: CRWN), DIRECTV (Nasdaq: DTV), Discovery Communications (Nasdaq: DISCA), DISH Network (Nasdaq: DISH), Liberty Global (Nasdaq: LBTYA), LodgeNet Interactive (Nasdaq: LNET), Shaw Communications (NYSE: SJR), TiVo (Nasdaq: TIVO) and Virgin Media (Nasdaq: VMED).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

eBay a Short-Term Sell and Long-Term Buy

Shares of eBay (Nasdaq: EBAY) fell roughly 5% after hours Wednesday, following the company’s third quarter results. eBay’s earnings per share were in line with the analysts’ consensus forecast. However, just meeting expectations is not good enough for a company that has a consistent record of beating the Street. Yahoo Finance indicates eBay exceeded expectations for at least the last four consecutive quarters heading into Q3. Furthermore, the company’s guidance for the coming quarter and the full year were not impressive when compared with the consensus of analysts’ views for the shares. Thus, eBay (Nasdaq: EBAY) joins Apple (Nasdaq: AAPL), IBM (NYSE: IBM), VMware (NYSE: VMW) and Cree (Nasdaq: CREE) in resetting investor expectations and equity valuations.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers include: Nasdaq: AAPL, Nasdaq: CREE, NYSE: IBM, NYSE: VMW, NYSE: ATV, Nasdaq: AMZN, OTC: ARIS.OB, Nasdaq: BIDZ, Nasdaq: DLIA, Nasdaq: DANG, Nasdaq: EBAY, Nasdaq: GAIA, Nasdaq: IACI, Nasdaq: LINTA, Nasdaq: OSTK, Nasdaq: PCCC, Nasdaq: STMP, Nasdaq: VVTV and Nasdaq: VITC.

eBay a Short-Term Sell and Long-Term Buy

eBay beat the Street on the top line, making $2.97 billion against expectations for $2.91 billion, based on Factset data. eBay reported a 32% increase in revenue against the prior year quarter, attributing its growth to each of its business segments. However, investments made to assimilate acquisitions and market the brand, and some difficulty with the learning curve on mobile business led it to only earn the $0.48 per share (on a non-GAAP basis) that analysts were looking for. According to Yahoo Finance, over the last four quarters, eBay beat estimates by between 2% and 11%. Thus, expectations for the same were likely built into the company’s valuation, and so were squeezed out of it on Wednesday evening. However, by 8:00 PM ET, and after the conference call concluded, the stock had mitigated its decline to minus 4%.

The company’s Payments business generated a 32% net revenue increase, to $1.107 billion. Within Payments, its merchant services business grew sharply in Q3, with net total payment volume rising 36%. eBay’s signature Marketplaces operations generated a 17% net revenue rise, to $1.653 billion. Within this segment, its international gross merchandise volume exceeded the rate of growth in domestic volume, growing 18% to $9.078 billion. The company’s GSI business, the operations just acquired in Q2, generated $203 million in net revenue.

A key problem with the quarter, as far as investors indicated Wednesday evening, was the contraction of the operating margin. Also, it looks as though the margin will hold stubbornly lower than the comparable period through Q4 as well. eBay’s net operating margin was squeezed to 25.3% on a non-GAAP basis in Q3, from 28.7% last year. Executives on the call attributed the contraction to acquisitions, including of GSI, and to business mix. Increasing business via mobile phones played at a higher cost than was expected to be the case. As the company moves up the learning curve, according to executives on the conference call, things should improve. The effective tax rate was also unfavorable against the prior year comparison, but the company’s executives focused their discussion on costs, and assurances of expected improvement over coming quarters. eBay also experienced a higher effective tax rate and completed its share repurchase program in the quarter.

When it came to guidance, eBay raised its outlook, but it seems not enough to satisfy investors. The company guided for a Q4 revenue range of between $3.2 billion and $3.35 billion, but the average of the two points was a bit short of the analysts’ consensus, which according to Yahoo Finance, sits at $3.3 billion. Also, the company’s fourth quarter EPS forecast for between $0.55 to $0.58 matches poorly against the consensus estimate for $0.58. eBay’s full year 2011 revenue forecast for between $11.5 billion and $11.6 billion sits well against the analysts’ consensus estimate for $11.51 billion. However, the company’s EPS forecast range of between $1.98 and $2.01, which is a penny higher than previously forecast, only encompasses the analysts’ consensus view for $2.00. Again, investors were likely looking for more.

Given eBay’s risk tied to the euro and its questionable forecast for an okay holiday season, which is certainly at risk, there appears to be good enough reason to temper short-term enthusiasm for the shares. However, eBay’s Paypal expansion to point of sale, with a beta test at play with one major retailer this Q4, could set this company’s growth into a higher gear in the next few years. According to Yahoo Finance, the company’s P/E/G ratio sits at 1.4, with growth forecast at 12.1% over the next five years. Thus, it seems to me that its trading range should not vary much in the near-term, with downside cushioned by its potential for greater long-term growth and its upside burdened by current issues. Therefore, while I’m cautious over the short-term, based on cost pressures, macroeconomic risks, and what I see as deteriorating broader market sentiment, I would put eBay in a category of names to look up again on weakness based on its opportunity in the emerging blockbuster point of sale business. Therefore, a hold rating would be in order for this stock today for most investors, and depending on your patience and investment style, I would label it a short-term avoid (weak sell) and long-term accumulate (weak buy).

This article should interest investors in Catalog and Mail Order House stocks including Acorn International (NYSE: ATV), Amazon.com (Nasdaq: AMZN), ARI Network Services (OTC: ARIS.OB), Bidz.com (Nasdaq: BIDZ), dELiA’s (Nasdaq: DLIA), E-Commerce China Dangdang (Nasdaq: DANG), eBay (Nasdaq: EBAY), Gaiam (Nasdaq: GAIA), IAC/ InterActiveCorp (Nasdaq: IACI), Liberty Interactive (Nasdaq: LINTA), Overstock.com (Nasdaq: OSTK), PC Connection (Nasdaq: PCCC), Stamps.com (Nasdaq: STMP), ValueVision Media (Nasdaq: VVTV) and Vitacost.com (Nasdaq: VITC).

The day's EPS reports came from American Express (NYSE: AXP), Xilinx (Nasdaq: XLNX), Abbott Laboratories (NYSE: ABT), Wynn Resorts (Nasdaq: WYNN), St. Jude Medical (NYSE: STJ) and U.S. Bancorp (NYSE: USB). Also look for news from 8X8 (Nasdaq: EGHT), Access National (Nasdaq: ANCX), Amphenol (NYSE: APH), AMR (NYSE: AMR), Amylin Pharmaceuticals (Nasdaq: AMLN), Apollo Group (Nasdaq: APOL), Astoria Fin’l (NYSE: AF), ATMI (Nasdaq: ATMI), Bank of New York Mellon (NYSE: BK), Banner (Nasdaq: BANR), BlackRock (NYSE: BLK), Buffalo Wild Wings (Nasdaq: BWLD), Cardinal Fin’l (Nasdaq: CFNL), Cathay General Bancorp (Nasdaq: CATY), Central Valley Community (Nasdaq: CVCY), Cheesecake Factory (Nasdaq: CAKE), Cirrus Logic (Nasdaq: CRUS), Cohen & Steers (NYSE: CNS), Cohu (Nasdaq: COHU), Comerica (NYSE: CMA), Community Trust Bancorp (Nasdaq: CTBI), Core Laboratories (NYSE: CLB), Covanta (NYSE: CVA), Cubist Pharmaceuticals (Nasdaq: CBST), CVB Financial (Nasdaq: CVBF), CYS Investments (NYSE: CYS), Datalink (Nasdaq: DTLK), DiamondRock Hospitality (NYSE: DRH), E*Trade Fin’l (Nasdaq: ETFC), East West Bancorp (Nasdaq: EWBC), eBay (Nasdaq: EBAY), Edwards Lifesciences (NYSE: EW), Exponent (Nasdaq: EXPO), F.N.B. Corp. (NYSE: FNB), Fidelity National Financial (NYSE: FNF), First Cash Financial (Nasdaq: FCFS), Forward Air (Nasdaq: FWRD), Freeport-McMoRan Copper & Gold (NYSE: FCX), Greenhill (NYSE: GHL), Gulfmark Offshore (NYSE: GLF), Heritage Crystal Clean (Nasdaq: HCCI), IDEX (NYSE: IEX), iParty (AMEX: IPT), Kinder Morgan Energy Partners (NYSE: KMP), Kinder Morgan Management (NYSE: KMR), Knight Capital (NYSE: KCG), Knoll (NYSE: KNL), Lam Research (Nasdaq: LRCX), LaSalle Hotel Properties (NYSE: LHO), Lufkin (Nasdaq: LUFK), M&T Bank (NYSE: MTB), Mastech (NYSE: MHH), Media General (NYSE: MEG), MKS Instruments (Nasdaq: MKSI), Morgan Stanley (NYSE: MS), New York Community Bancorp (NYSE: NYB), Noble (NYSE: NE), Northern Trust (Nasdaq: NTRS), NVE Corp (Nasdaq: NVEC), Piper Jaffray (NYSE: PJC), PNC Fin’l (NYSE: PNC), Polycom (Nasdaq: PLCM), Popular (Nasdaq: BPOP), Raymond James (NYSE: RJF), Riverbed Technology (Nasdaq: RVBD), Rockwood Holdings (NYSE: ROC), S.Y. Bancorp (Nasdaq: SYBT), SEI Investments (Nasdaq: SEIC), Select Comfort (Nasdaq: SCSS), Sensata Technologies (NYSE: ST), SLM (NYSE: SLM), Spartan Stores (Nasdaq: SPTN), Stepan (NYSE: SCL), Stryker (NYSE: SYK), Supervalu (NYSE: SVU), Swift Transportation (Nasdaq: SWFT), Temple Inland (NYSE: TIN), Texas Capital Bancshares (Nasdaq: TCBI), Textron (NYSE: TXT), Tractor Supply (Nasdaq: TSCO), Travelers (NYSE: TRV), Umpqua (Nasdaq: UMPQ), United Technologies (NYSE: UTX), Virginia Commerce (Nasdaq: VCBI), West Corp. (Nasdaq: WSTC), Westamerica Bancorp (Nasdaq: WABC), Westell Technologies (Nasdaq: WSTL), Western Digital (NYSE: WDC), Westwood Holdings (NYSE: WHG), WNS Holdings (NYSE: WNS) and Zhone Technologies (Nasdaq: ZHNE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Surprise! Surprise? Retail Sales Demise

Was anybody really surprised to learn that retail sales stalled in August? Apparently economists were, given their consensus forecast for growth of 0.2%, based on Bloomberg’s survey. Census Bureau data reported Wednesday showed retail sales actually stuck around the same mark set in July. Considering the damage DC and S&P brought to the stock market and consumer confidence through the summer, there should be no surprise about August retail sales dribble. The job now ahead of our government is how to restore confidence before an economic death spiral gains momentum.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relevant Tickers: NYSE: XRT, NYSE: WMT, NYSE: PIR, NYSE: ETH, Nasdaq: HOFT, NYSE: HD, NYSE: LOW, Nasdaq: AAPL, NYSE: BBY, NYSE: LTD, NYSE: CHS, NYSE: ANN, NYSE: GPS, NYSE: M, NYSE: JCP, NYSE: JWN, NYSE: TJX, NYSE: KSS, Nasdaq: COST, NYSE: TGT, NYSE: WMT, Nasdaq: WTSLA, Nasdaq: HOTT, NYSE: AEO, NYSE: ARO, NYSE: ANF, NYSE: SAK, NYSE: TIF, NYSE: TLB, NYSE: LL, Nasdaq: BLDR, NYSE: FO, NYSE: LEG, NYSE: TPX, NYSE: AYI, NYSE: LZB, Nasdaq: SCSS, NYSE: ZZ, NYSE: FBN, NYSE: NTZ, Nasdaq: SHLD, NYSE: DDS, Nasdaq: BONT, Nasdaq: CPWM, Nasdaq: BKRS, Nasdaq: BEBE, NYSE: BKE, Nasdaq: CACH, Nasdaq: CMRG, Nasdaq: CATO, NYSE: CBK, Nasdaq: CTRN, NYSE: PSS, Nasdaq: DEST, Nasdaq: DBRN, NYSE: DSW, Nasdaq: FINL, NYSE: FL, Nasdaq: GYMB, NYSE: GES, NYSE: JCG, NYSE: JNY, Nasdaq: JOSB, NYSE: NWY, NYSE: JWN, NYSE: MW, Nasdaq: SYMS, Nasdaq: PLCE.

Surprise! Surprise? Retail Sales Demise

Back to school or back to broke? The back to school shopping season tends to heat ahead of Labor Day, but this data is adjusted for seasonal variation, and so should not be seen as worse for it. And how bad is it really? On a year-over-year basis, sales were 7.2% higher. Even after adjusting for inflation, that’s not shabby growth. However, gasoline station sales increased 20.8% on a year-over-year basis, thus reflecting the rise in gasoline prices through the period. This leads one to wonder if gas padded the numbers. However, if we measure retail health excluding gasoline, it still doesn’t look that bad. Most of the categories listed in the report show better than inflation rates of growth on an annual basis. That said, and like I’ve often stated in the past, we slow before we stop and we stop before we reverse course.

The month-to-month 0.0% growth rate proved harder to digest because July’s growth was revised downward to +0.3%, from the initially reported 0.5% rise. The July data was reassuring to investors when reported, so this is like a rug has been pulled out from under us. Still, the stock market was higher through early afternoon trading Wednesday on the appeasement of investors by an Italian vote of confidence for its government and on the reassurances of Angela Merkel and other European leaders regarding a feared Greek default.

Surprising motor vehicle sales weakness cost the overall growth performance, as the rate excluding auto sales was a better +0.1%. Motor vehicle and parts dealers’ sales were reported down by 0.3% through the month. This was consistent with data reported at the start of September, with domestic auto sales estimated running at a 9.4 million annual rate, down from 9.5 million in July. Total auto sales were down to a rate of 12.1 million, from 12.2 million in July.

Significant softness was also seen in apparel sales (clothing & clothing accessories), which was reported down 0.7% month-to-month. And the August drop was preceded by a decline of 0.3% in July. Clothing is perhaps one of the more discretionary spends made by consumers. Department stores did especially poorly, with those sales down 0.3% month-to-month. That news has not hurt the stocks of the big boxes today, with shares of J.C. Penney (NYSE: JCP) up 4.1%, Macy’s (NYSE: M) up 2.8%, Kohl’s (NYSE: KSS) up 2.2% and Nordstrom up 0.3% at the hour of publishing here. Grocery store sales, an area of necessity, rose 0.5%; though food sales, like gasoline, may reflect rising pricing as well (Kroger NYSE: KR up 0.3%). Spending at restaurants and bars (food services and drinking places), which are certainly discretionary for most of us, declined by 0.3% in August; and that followed the 0.4% decline in July. Shares of Brinker International (NYSE: EAT) and Darden Restaurants (NYSE: DRI) are up 5.3% and 2.4%, respectively, nonetheless. This discretionary spending drop-off should make DC and S&P feel a little guilty, if either has a conscience, but it looks like investors in these companies expected worse news today.

Nonstore retailers, which is basically online business now (once dominated by catalog), saw a sales increase of 0.5% in August and a strong 10.4% increase year-over-year. This continues to be a market share story, as the web keeps grabbing business from the street. Perhaps a sign of renewing decline in housing, furniture and home furnishing stores saw a sales drop of 0.2% in August, and have only modest growth of 0.2% to report on a yearly basis.

Sporting goods and other hobby stores posted strong growth of 2.4% in August, and I continue to believe this is due to a little understood phenomenon among the tally takers. Heading into the school year, student athletes and musicians must restock on equipment and supplies for their game and music playing efforts. It’s my view that the seasonal adjustment has not been accounted for here, as I recall this happening in years past as well.

In conclusion, the decline in August, following a moderated growth rate in July, can be directly attributed to Washington D.C. and to Standard & Poor’s in my opinion. The two perhaps equally responsible entities managed to scare the consumer, both employed and unemployed, into their bunkers. The capital destruction that occurred in the stock market on dire debt ceiling debate and the prospective economic collapse threatened by a downgraded sovereignty kept Americans focused on preservation of capital, and perhaps food as well. Hopefully, American confidence can be restored as quickly as it was damaged, but it appears a self-feeding down spiral is more likely.

Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

COST EPS Q3 FY 2011 - Costco Trouble Passing Prices Through

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Costco

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

COST EPS Q3 FY 2011

Costco (Nasdaq: COST) shares were down 1% in Wednesday trading, after the company reported its third quarter profit up 5.9%. Revenue gained 16%, benefiting from U.S., Canadian and Mexican growth. COST’s EPS of $0.73 though, fell short of the consensus view for $0.77, based on Factset data. Costco’s revenue growth benefited from higher gasoline and food prices, but its gross margin was pressured. It appears many companies are having trouble passing price increases completely through. When a discounter's cost of goods sold is pressured, and it competes on price, its margins are getting squeezed. So while a tough economy and rising prices send people to the discounters, driving up their volumes, it also contracts their variable cost margins.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

AEO Q1 FY 2012 EPS - American Eagle Faces Tight Environment

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American Eagle

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

AEO Q1 FY 2012 EPS

American Eagle Outfitters (NYSE: AEO) shares were down about 5% Wednesday, after the company reported revenues fell 6% in its fiscal first quarter. Cost cuts still allowed AEO to nearly triple EPS to $0.14, which was in line with the analysts’ consensus, according to Factset. Revenues missed consensus though by nearly $30 million. Same-store sales fell 8%. While the company indicated sales were a bit better in the second quarter so far, and that it would be making some inventory changes to help sales along, its EPS guidance of $0.10 to $0.13 a share was disappointing against the analysts’ consensus for $0.13.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Beginning of the End for Service Sector

Service Sector Stall?

Tuesday's service sector data release, the ISM Non-Manufacturing Index, disappointed against economists' views. So is this the beginning of the end for the service sector expansion?

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

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Beginning of the End for Service Sector?

The Institute for Supply Management (ISM) reported its Non-Manufacturing Index for the month of March this week. ISM's NMI fell to 57.3, from the high mark of the last six years set in February at 59.7. While the result also fell short of the economists' consensus, the report was generally positive otherwise. Thus, the popular press did not make much of the change in the rate of expansion, but should they have?

The Non-Manufacturing Index showed a level of activity better resembling December of 2010 than its predecessors in 2011. It was two-tenths higher than December, but well short of January's 59.4 and February's 59.7. Given revelations from the survey, we are openly wondering if we are seeing the start of trend change. Indeed, other economic data, including consumer confidence, seems to offer good enough reason to worry the economy could be headed for rougher waters once more. Some of the catalysts for this are discussed in the paragraphs here following, but they include pressure from rising commodity and energy costs and a vulnerable balance sheet on the small business level.

The survey's Business Activity Index is a widely followed economic barometer in and of itself, and it fell sharply, by 7.2 percentage points in March, to 59.7. Fifteen of eighteen reporting industries showed increased business activity in February, though. Remember, it's the pace of expansion that slowed, not the expansion itself. But as we have said here before, you slow before you stop. Two industries did already report a contraction in March; those were "Other Services" and "Transportation and Warehousing". Among industries reporting expansion were Real Estate, Retail Trade and Finance and Insurance. We don't see much to fear in those details, except for that nagging reality that the pace of expansion eased.

The Survey measures New Orders, and the indicator of future activity only eased off its robust pace, slipping to 64.1, from 64.4 in February. This index is down from its recent peak of 64.9 in January. Some of the comments from survey respondents do more than quell any concern about a downturn. In fact, they point toward the "turn around" materializing. However, these guys are too close to the action to see the bigger picture. They, being corporate American executives, certainly did not foresee the degree of economic decline ahead of them a few years ago, and then they overreacted once caught in the middle of the fire – and in turn fired too many people, in my view. Again though, 16 of 17 queried industries reported growth in March, and only "Other Services" saw a decline.

ISM's Non-Manufacturing Employment Index also gave ground in March, which is of course inconsistent with the employment report data. The Employment Index fell to 53.7, from 55.6 in February, reflecting still cautious hiring activity, which fits with our analysis of labor. That said, 11 of 18 industries surveyed still reported increased hiring in March. The respondents' comments reflected less enthusiasm than with regard to some of the other activity, some even reporting hiring freezes still in place. Industries reporting reductions in workforce included Educational Services, Finance and Insurance and Health Care and Social Assistance. Two of these are of course pressured by public sector budget cutting and decreased spending generally.

Supplier Deliveries reflected a different dynamic, with that index falling to 51.5. Inventory levels were reported about the same, but companies dealing with Japan reported stockpiling of product in anticipation of a supply squeeze. The Backlog of Orders Index grew in March, however, 45% of respondents do not measure backlog of orders. The New Export Orders Index increased, so the driver of manufacturing demand is drawing on our services sector too. Imports dropped though to about break-even.

Here's a problem: 37% of respondents said their inventory levels were too high in March, versus 23% reporting this in February. This is a sign, of course, that purchasing managers (in services) are sensing a slowing business environment. A second issue is raised for services companies within the Prices Paid Index, which shows some 51% of respondents reported higher prices paid for supplies and services. Only 2% reported lower prices, and all 18 industries reported price increases. This puts pressure on profit margins and impacts the hiring decision, however, less than sales activity does.

In conclusion, it looks like the message is, keep an eye on services, as this lulling of activity could be an early sign of something more important. Or, it could simply be due to temporary effects of chaos overseas, in Japan and the Middle East, affecting business activity by introducing uncertainty. It is more likely the result of the Middle East impact on fuel prices and energy prices though, not to mention consumer sentiment and spending. If energy prices continue higher or even remain at current levels, you can expect a meaningful impact to GDP, so there should be no surprise in our warning.

Article interests Omnicom (NYSE: OMC), Interpublic (NYSE: IPG), Focus Media (Nasdaq: FMCN), Monster Worldwide (NYSE: MWW), ValueClick (Nasdaq: VCLK), QuinStreet (Nasdaq: QNST), ReachLocal (Nasdaq: RLOC), Visa (NYSE: V), Mastercard (NYSE: MA), Fidelity National Information (NYSE: FIS), Fiserv (Nasdaq: FISV), Moody’s (NYSE: MCO), Verisk Analytics (Nasdaq: VRSK), Cintas (Nasdaq: CTAS), Global Payments (NYSE: GPN), R.R. Donnelley & Sons (NYSE: RRD), Mercadolibre (Nasdaq: MELI), Total System Services (NYSE: TSS), Rollins (NYSE: ROL), Lender Processing (NYSE: LPS), FleetCor Technologies (NYSE: FLT), OpenTable (Nasdaq: OPEN), HMS Holdings (Nasdaq: HMSY), Vistaprint (Nasdaq: VPRT), SAVVIS (Nasdaq: SVVS), Wright Express (NYSE: WXS), Quad/Graphics (Nasdaq: QUAD), GSI Commerce (Nasdaq: GSIC), Greendot (Nasdaq: GDOT), Giant Interactive (NYSE: GA), Athenahealth (Nasdaq: ATHN), Emdeon (NYSE: EM), Portfolio Recovery Services (Nasdaq: PRAA), Deluxe (NYSE: DLX), Maximus (NYSE: MMS), ABM (NYSE: ABM), CoStar (Nasdaq: CSGP), Fair Isaac (Nasdaq: FICO), Healthcare Services (Nasdaq: HCSG), Synnex (NYSE: SNX), TeleTech (Nasdaq: TTEC), XXXXXXXXXXX McDonald’s (NYSE: MCD), Yum Brands (NYSE: YUM), Chipotle Mexican Grill (NYSE: CMG), Tim Horton’s (NYSE: THI), Darden (NYSE: DRI), Brinker (NYSE: EAT), Marriott International (NYSE: MAR), Starwood (NYSE: HOT), Hyatt (NYSE: H), Expedia (Nasdaq: EXPE), Wyndham Worldwide (NYSE: WYN), Choice Hotels (NYSE: CHH), Home Inns & Hotels (Nasdaq: HMIN), Gaylord Entertainment (NYSE: GET), Orient-Express (NYSE: OEH), China Lodging (Nasdaq: HTHT), Comcast (Nasdaq: CMCSA), DirecTV (NYSE: DTV), Viacom (NYSE: VIA-B), Time Warner Cable (NYSE: TWC), Discovery (OTC: DISCA), Dish Network (Nasdaq: DISH), Cablevision (NYSE: CVC), Liberty Global (OTC: LBTYA), Shaw Communications (NYSE: SJR), Virgin Media (Nasdaq: VMED), Charter Communications (Nasdaq: CHTR), TiVo (Nasdaq: TIVO), Crown Media (Nasdaq: CRWN), CBS (NYSE: CBS), Scripps Networks (NYSE: SNI), CTC Media (Nasdaq: CTCM), Central European Media (Nasdaq: CETV), Bally (NYSE: BYI), Pinnacle (NYSE: PNK), Churchill Downs (Nasdaq: CHDN), The9 Limited (Nasdaq: NCTY), Multimedia Games (Nasdaq: MGAM), Dover Downs (NYSE: DDE), Asia Entertainment (Nasdaq: AERL), Walt Disney (NYSE: DIS), Time Warner (NYSE: TWX), Warner Music (NYSE: WMG), World Wrestling (NYSE: WWE), UPS (NYSE: UPS), FedEx (NYSE: FDX), Delta (NYSE: DAL), United Continental (NYSE: UAL), China Eastern (NYSE: CEA), China Southern (NYSE: ZNH), AMR (NYSE: AMR), US Airways (NYSE: LCC), Apollo Group (Nasdaq: APOL), Hertz (NYSE: HTZ), Ryder (NYSE: R), United Rentals (NYSE: URI), Carnival (NYSE: CCL), Priceline.com (Nasdaq: PCLN), Six Flags (NYSE: SIX), Orbitz (NYSE: OWW), Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), MGM Resorts (NYSE: MGM), Melco Crown (Nasdaq: MPEL), Penn National (Nasdaq: PENN), Vail Resorts (NYSE: MTN), Ameristar (Nasdaq: ASCA), Boyd Gaming (NYSE: BYD), Western Union (NYSE: WU), H&R Block (NYSE: HRB), Weight Watchers (NYSE: WTW), Ulta Salon (Nasdaq: ULTA), Service Corp. (NYSE: SCI), VCA Antech (Nasdaq: WOOF), Hillenbrand (NYSE: HI), Regis (NYSE: RGS), PrePaid Legal (NYSE: PPD), Accenture (NYSE: ACN), Gartner (NYSE: IT).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.