retail sector

Wal-Mart Sales Concerns Bad Sign for Retail Sector This Holiday Season?

By Friday, November 14, 2014
Bad Sign for Retail Sector This Holiday SeasonIn two weeks from today, all eyes will be on Black Friday and the official beginning of the holiday shopping season, which for some in the retail sector is the most critical time of the year. While I do expect consumers to be out and spending in full force, I’m not sure about the retail sector and margins. The decline in gasoline prices should help add some money to the .

This Luxury Retailer Now Affordable?

By Friday, August 29, 2014
Should You Take This Opportunity to Buy This Luxury StockThe top one percent are spending and don’t really care about the other 99%. For the retail sector and particularly the luxury-brand stocks, this is welcome news. High-end jeweler Tiffany & Co. (NYSE/TIF) pleased investors and Wall Street on Wednesday after reporting better-than-expected results and increasing its fiscal 2015 earnings estimate for the second time. Consumers in the Americas, Asia, and Europe are spending in the retail sector. While Tiffany .

The New Land of Oz

By Wednesday, May 28, 2014
When Gold Will Finally BottomYesterday was an amazing day for the markets. Gold bullion hit a three-month low despite: 1) inflation rising rapidly in North America; and 2) the Chinese buying half of this year’s world gold production. The stock market was up to a new high despite: 1) corporate insiders selling like mad; 2) corporate earnings growth collapsing; 3) the amount of money investors have borrowed to buy stocks standing at a record .

The Opportunity Coming to the Luxury Retail Stocks

By Friday, February 28, 2014
The Pros and Cons I See in the Retail Sector Right NowWe all know how bad this winter has been so far. The harsh weather across the majority of the country has impacted jobs growth, commerce, housing, and consumer spending. Of course, with the spring season on the horizon, we’ll soon see if the weak economic metrics mentioned were really an aberration due to the weather—or a sign of further slowing to come. From what I can tell right now, we .

Why the Winter Storm Is Skewing More Than Jobs Growth

By Tuesday, February 18, 2014
Winter Storm Skewing More Than Jobs GrowthOld Man Winter appears to be killing the retail sector and the economic renewal. Extreme cold and nasty weather has engulfed about 70% of the country, reaching as far south as Georgia, North Carolina, and Texas, which don’t traditionally experience winter weather. All that nasty weather means less driving to the malls and shops, which, judging by the numbers, appears to have been the case over the last two months. .

Stock Falling, but Rich Still Spending; My Top Luxury Stock Play

By Thursday, February 6, 2014
Why This Luxury Retailer Is Simply the BestThe stock market is in turmoil and looking for help from buyers. While some are calling for investors to run to the exits, I look at weakness and market chaos as a buying opportunity. It’s simply unrealistic to think that all stocks deserve to fall during a market adjustment like what we are seeing at this time. There are good companies out there that will stage a strong rally when .

Fourth-Quarter Earnings Season Another Dud

By Monday, January 27, 2014
4Q Earnings Reveal More DudsYou can tell from the activity and the lack of direction in the stock market that the much-anticipated fourth-quarter earnings season has, yet again, been another letdown. Now I’m not saying the early results this earnings season have been that bad; it’s just that the numbers from corporate America have not been that great. And with just four days remaining in January, the NASDAQ and Russell 2000 are slightly positive, .

The “Big Thing” for Companies This Year

By Friday, January 24, 2014
Here Come the Job CutsLast year, the “big thing” with companies was buying back their shares to boost per-share corporate earnings. In 2013, share buybacks hit their pre-financial crisis high. If big public companies didn’t buy back so much of their own stock in 2013, per-share corporate earnings just wouldn’t be that great. This year, I expect share buybacks to continue at the pace we saw in 2013. Another “big thing” companies will do .

These Retail “Screw-ups” Could Turn Things Around This Year

By Friday, January 24, 2014
Two Contrarian Plays for the Retail SectorThe retail sector can be a brutal place for retailers at all times. Think about it. You have to convince the consumer to buy your stuff instead of a rival brand’s. It’s all about the product, image, and marketing. That’s why shoppers look to brand-name items versus no-name products. Are the brand-name goods better? Perhaps, but is it enough to justify the price differential?  Yoga pants maker lululemon athletica inc. .

The Company I Like Among the “Out-of-Favor” Stocks

By Wednesday, January 22, 2014
Top Stocks for Investing Against the HeardWhen it comes to love, we often hear the phrase, “Beauty is in the eye of the beholder.” Well, the same could be said for the stock market. Many investors look for the companies that deliver consistent results and satisfy the number-crunchers on Wall Street. While I belong to that group, I also take alternative views and search for companies that are the so-called dogs of the stock market. However, .
Sep. 4, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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