Hot Logistics Stocks For 2015


Highway crashes create an enormous economic toll on the lives of Americans, the National Highway Traffic Safety Administration says in a new study. The annual price tag for those crashes: $871 billion in economic loss and societal harm in 2010.

The total includes $277 billion in economic costs – nearly $900 for each person living in the USA – and $594 billion in societal harm from the loss of life and the pain and decreased quality of life because of injuries.

“No amount of money can replace the life of a loved one, or stem the suffering associated with motor vehicle crashes,” U.S. Transportation Secretary Anthony Foxx said. “While the economic and societal costs of crashes are staggering, today’s report clearly demonstrates that investments in safety are worth every penny used to reduce the frequency and severity of these tragic events.”

Hot Logistics Stocks For 2015: Rentec h Nitrogen Partners LP (RNF)


Rentech Nitrogen Partners, L.P. is a provider of clean energy solutions and nitrogen fertilizer, to own, operate and grow its nitrogen fertilizer business. The Company primarily produces anhydrous ammonia, or ammonia, and urea ammonium nitrate solution (UAN), at the Company’s facility, using natural gas as its primary feedstock. In November 2012, the Company acquired Agrifos LLC.

The Company’s facility is located in the center of the Mid Corn Belt. The Mid Corn Belt includes the States of Illinois, Indiana, Iowa, Missouri, Nebraska and Ohio. The Company considers its market to be consisted of the States of Illinois, Iowa and Wisconsin.


Advisors’ Opinion:

  • [By Robert Rapier]

    2. Rentech Nitrogen Partners

    Rentech Nitrogen Partners (NYSE: RNF) is a variable distribution MLP that saw fertilizer margins decline in response to much higher natural gas prices than in 2012. As a result, by the third quarter the distribution was reduced to $0.27/unit, down from $0.50 in Q1 and $0.85 in Q2. The unit price for the year declined by 54 percent in 2013.

    3. EV Energy Partners

  • [By Sally Jones] urrent share price is $17.34, or 64.7% off the 52-week high of $49.18.


    Down 54% over 12 months, RNF has a market cap of $673.66 million, and trades with a P/B of 13.30. The dividend yield is 13.67%.

    Rentech Nitrogen Partners LP is a pure-play nitrogen fertilizer company structured as a publicly traded master limited partnership. The company manufactures and sells nitrogen fertilizer products including ammonia, UAN solution and ammonium sulfate.

    Guru Action: As of Sept. 30, 2013, there is one guru stakeholder and one recent insider sell.

    As of Sept. 30, 2013, the sole guru owner Jim Simons reduced his position by 14.04%, selling 49,490 shares at an average price of $28.06 for a loss of 38.2%.


    Over four losing quarters, he has averaged a loss of 52% on 352,600 shares at an average price of $36.30 per share. Selling, he has averaged a loss of 38% on 49,490 shares at an average price of $28.06 per share.

    His current shares of 303,110 represe nt 0.78% of shares outstanding.

    Track share pricing, revenue and net income:

    Highlight: Turquoise Hill Resources Ltd. (TRQ)

    The current share price is $3.25, or 66.2% off the 52-week high of $9.62.

    Down 57% over 12 months, TRQ has a market cap of $3.27 billion, and trades with a P/B of 0.60. The company does not pay a dividend.


    Turquoise Hill Resources Ltd. is an international mining company focused on copper, gold and coal mines in the Asia Pacific region. The company has other projects containing molybdenum, rhenium, copper, gold, zinc, silver and uranium.

    Guru Action: As of Sept. 30, 2013, there are six guru stakeholders and one recent insider trade.

    The top guru owner is RS Investment Management who increased its position by 29.59% in the third quarter of 2013, buying 13,234,642 shares at an average price of $5.12 for a loss of 36.5%.

    Over six losing quarters, the firm has averaged a loss of 55% on 57,968,897 share s at an average price

  • [By Maxx Chatsko]

    Meanwhile, the fine print in the 10-K of Rentech Nitrogen Partners (NYSE: RNF  ) noted that every increase of $0.10 per MMBtu of natural gas increases its production costs by $3.50 per ton of ammonia produced. Natural gas futures have increased by $2.10 per MMBtu since April 2012, which calls for an eye-popping experiment.

  • [By Sean Williams]

    For this week’s round of “Better Know a Stock,” I’m going to take a closer look at Rentech Nitrogen Partners (NYSE: RNF  ) .

    What Rentech Nitrogen Partners does
    As you may have correctly suspected from the name, Rentech Nitrogen is a nitrogen-based fertilizer company. It has two production facilities in the U.S., and its fertilizers, which include ammonia, urea ammonium nitrate solution (UAN), and ammonium sulfate, are sold through distribution agreements to help aid farmers with regard to crop yield.

Hot Logistics Stocks For 2015: Sarepta Therapeutics Inc (SRPT)


Sarepta Therapeutics Inc., formerly AVI BioPharma, Inc., incorporated on July 22, 1980, biopharmaceutical company focused on the discovery and development of ribonucleic acid (RNA)-based therapeutics for the treatment of rare and infectious diseases. The Company’s product candidates include Eteplirsen, AVI-6002, AVI-6003, and AVI-7100. As of December 31, 2011, the Company primarily focused on advancing the development of its Duchenne muscular dystrophy drug candidates, including its lead product candidate, eteplirsen, which is in a Phase IIb trial. The Company is also focused on developing therapeutics for the treatment of infectious diseases, including its lead infectious disease programs aimed at the development of drug candidates for the Ebola and Marburg hemorrhagic fever viruses. The Company’s program focuses on the development of disease-modifying therapeutic candidates for Duchenne muscular dystrophy (DMD). The Company initiated a Phase IIb trial for eteplirsen in August 2011 with an objective of initiating a pivotal trial subsequent to 2011.


The Company is also leveraging the capabilities of its RNA-based technology platforms to develop therapeutics for the treatment of infectious diseases. The Company’s RNA-based drug programs are clinically evaluated for the treatment of DMD and have also demonstrated anti-viral activity in infectious diseases such as Ebola, Marburg and H1N1 influenza in certain animal models. The Company’s lead product candidates are at various stages of development.

Duchenne Muscular Dystrophy Program

The Company’s lead program is designed to address specific gene mutations that result in DMD by forcing the genetic machinery to skip over an adjacent contiguous piece of RNA and, thus, restore the ability of the cell to express a new, truncated but functional, dystrophin protein.


Eteplirsen is an antisense PMO-based therapeutic in clinical development for the treatmen t of individuals with DMD who have an error in the gene codi! ng for dystrophin that can be treated by skipping exon 51. Eteplirsen targets the frequent series of mutations that cause DMD. Eteplirsen has been granted orphan drug designation in the United States and European Union. In addition to the Company’s lead product candidate, eteplirsen, the Company is actively pursues development of a product candidate that skips exon 45 through an IND-enabling collaboration.


Anti-Viral Programs

The Company is implementing its RNA-based technology platforms in its anti-viral programs for the development of therapeutics to treat viruses, such as Ebola, Marburg and influenza. The Company’s arrangement with DoD supporting the development of the Company’s Ebola and Marburg virus drug candidates provides funding for all clinical and licensure activities necessary to obtain approval of a New Drug Application (NDA), by the United States Food and Drug Administration (FDA), if DoD exercises all of its options under the arrange ment. During the year ended December 31, 2011, the Company paused its clinical development efforts on AVI-7100 and is exploring funding opportunities or partnerships with DHHS and industry collaborators to advance its development.


The Company’s anti-viral therapeutic programs use the Company’s translation suppression technology and applies its PMOplus chemistry backbone, an advanced generation of its base PMO chemistry backbone that selectively introduces positive backbone charges to improve selective interaction between the drug and its target. The Company’s translation suppressing technology is based on Translation Suppressing Oligomers (TSOs), which are PMO-based compounds that stop or suppress the translation of a specific protein by binding to their specific target sequence in mRNA.


The Company is pursuing development and regulatory approval of its Ebola and Marburg hemorrhagic fever virus product candidates under the FDA’s Animal Rule. The Co mpany’s lead product candidate against the Ebola virus infec! tion is A! VI-6002. For Marburg virus infection, the Company’s lead product candidate has been AVI-6003. In February 2012, the Company announced that the Company received approval from the FDA to remove one of the two oligomers composing AVI-6003 and proceed with a single oligomer approach, AVI-7288, given that efficacy in non-human primates has been demonstrated to be attributable to this single oligomer. The Company is exploring the feasibility of alternate routes of administration of its Ebola and Marburg drug candidates, and at DoD’s invitation, the Company is developing a proposal to be submitted for a study to demonstrates feasibility of the intramuscular route.


AVI-6002, which is a combination of AVI-7537 and AVI-7539, is designed for post-exposure prophylaxis after documented or suspected exposure to the Ebola virus. The Company is evaluating the feasibility of developing AVI-7537 as a single agent for the post-exposure prophylaxis after documented or suspected exp osure to Ebola virus. AVI-6003, which is a combination of AVI-7287 and AVI-7288, is designed for post-exposure prophylaxis after documented or suspected exposure to Marburg virus. In February 2012, the Company announced that the Company received approval from the FDA to proceed with AVI-7288 as a single agent against Marburg virus infection. The Company intends to proceed with dosing AVI-7288 in the Phase I multiple ascending dose studies and in non-human primate studies.


Influenza Program

The Company’s anti-viral therapeutic programs are also focused on the development of the Company’s product candidates designed to treat pandemic influenza viruses. AVI-7100 is the Company’s lead product candidate for the treatment of influenza and employs its PMOplus technology. In June 2011, the Company initiated dosing of AVI-7100 through intravenous infusion in single-ascending doses in up to 48 healthy adult volunteers. As of December 31, 2011, the Company pau sed its clinical development efforts on AVI-7100 and are exp! loring fu! nding opportunities or partnerships to advance its development.


The Company has developed three new phosphorodiamidate-linked morpholino oligomers (PMO)-based chemistry platforms in addition to its original PMO-based technology. The Company’s PMO-based molecules are designed to sterically block the access of cellular machinery to pre-mRNA and mRNA without degrading the RNA. Through this selective targeting, two distinct biologic mechanisms of action can be initiated: modulation of pre-mRNA splicing and inhibition of mRNA translation.

The Company competes with GlaxoSmithKline plc, Toyama Chemical, Alnylam Pharmaceuticals, Inc., Tekmira Pharmaceuticals Corp., Isis Pharmaceuticals, Inc., Prosensa, and Santaris Pharma A/S.


Advisors’ Opinion:

  • [By Jayson Derrick]

    The FDA's Center for Drug Evaluation and Research stated that the agency is exploring potential pathways to approve new drugs that could be used to treat Duchenne muscular dystrophy. Specifically, Sarepta Therapeutics' (NASDAQ: SRPT) eteplirsen was mentioned as potentially being placed in an accelerated approval program. Shares gained 12.79 percent, closing at $22.93.

  • [By RichardCox]

    Investing in biotech can seem intimidating, given the complex nature of the industry. So, for those looking for a simple way to gain exposure to the industry, a basket sector ETF might be the best choice. The clearest option here is the SPDR S&P Biotech ETF (XBI), which has nominal gross expense ratio of 0.35% and an average return of nearly 10% since it was started in 2006. The fund’s holdings include Sarepta Therapeutics (SRPT), which has made well-documented progress in Eteplirsen, its Duchenne muscular dystrophy drug. Most analysts expect Eteplirsen to receive relatively quick FDA approval, helping support the underlying value of the stock. Other holdings include NPS Pharmaceuticals (NPSP), which recently bought back the right to Gattex, a short bowel syndrome drug.

Hot Logistics Stocks For 2015: Spectrum Brands Holdings Inc.(SPB)


Spectrum Brands Holdings, Inc., together with its subsidiaries, operates as a consumer products company worldwide. It offers consumer batteries, including alkaline and zinc carbon batteries, rechargeable batteries and chargers, and hearing aid batteries and other specialty batteries; pet supplies, such as aquatic equipment and supplies, dog and cat treats, small animal foods, clean up and training aids, health and grooming products, and beddings; and home and garden control products comprising household insect controls, insect repellents, and herbicides. The company also provides electric shaving and grooming devices; small appliances, including small kitchen appliances and home product appliances; electric personal care and styling devices; and portable lighting. Its sells its products through various trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors, and original equipment manufacturers primarily under t he Rayovac, Remington, Varta, George Foreman, Black & Decker, Toastmaster, Farberware, Tetra, Marineland, Nature?s Miracle, Dingo, 8-in-1, Littermaid, Spectracide, Cutter, Repel, Hot Shot, Black Flag, and TAT brands. The company was headquartered in Madison, Wisconsin. As of January 7, 2011, Spectrum Brands Holdings, Inc. operates as a subsidiary of Harbinger Group Inc.


Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of Energizer have jumped 15% to $112.37 at 10:24 a.m. today, while Spectrum Brands (SPB) has risen 1.4% to $76.88 and Kimberly Clark (KMB) has gained 1% to $112.14.

  • [By Marc Bastow]

    Consumer products manufacturer Spectrum Brands (SPB) raised its quarterly dividend 20% to 30 cents per share, payable on Mar. 18 to shareholders of record as of Feb. 19.
    SPB Dividend Yield: 1.58%

Hot Logistics Stocks For 2015: Naturalnano Inc (NNAN)


NaturalNano, Inc. (NaturalNano), incorporated on February 18, 2000, is engaged in the development and commercialization of material science technologies with an emphasis on additives to polymers and other industrial and consumer products by taking advantage of technology advances developed in-house. During the year ended December 31, 2011,the Company’s activities are directed toward research, development, production and marketing of its technologies relating to the treatment and separation of nanotubes from halloysite clay and the development of related commercial applications for cosmetics, health and beauty products, and polymers, plastics and composites.


The company’s halloysite natural tube (HNT) products involve filling HNTs with active agents for use in the polymer composites, health and beauty, household product, and agrichemical industries. The filled tube product contains a material of interest within the tubes, such as an antimicrobial compound t o provide antimicrobial properties to the resulting polymer composite material. The filled-tube products will focus on the utilization of the tubular nature of the halloysite nanotubes, by filling or adsorbing the tubes with active agents for the polymer nanocomposites, household products, cosmetics, agriculture, and pharmaceutical industries. The Company designs, manufactures and sells custom designed error prevention/safety checklist boards.


The Company competes with Air Products and Chemicals, BASF, Dow, E.I. DuPont de Nemours & Company, Applied Minerals, Davis International and Imagexpress.

Advisors’ Opinion:

  • [By Peter Graham]

    Small cap stocks Naturalnano Inc (OTCMKTS: NNAN), Global Payout, Inc (OTCMKTS: GOHE) and Blue Water Global Group Inc (OTCBB: BLUU) were either jumping higher or diving lower yesterday. To complicate matters for investors, two of these small cap stocks have been subjects of disclosures about paid promotion or investor relation campaigns. So what will these three small caps do for the rest of this week? Here is a closer look to help you decide on a trading or investing strategy:

Hot Logistics Stocks For 2015: Webster Financial Corp (WBS)


Webster Financial Corporation (Webster), incorporated on September 10, 1986, is a bank holding company and financial holding company. Webster’s principal asset as of December 31, 2012, was Webster Bank, National Association (Webster Bank). Webster, through Webster Bank and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout southern New England and into Westchester County, New York. Webster provides business and consumer banking, mortgage lending, financial planning, trust and investment services through 167 banking offices, 293 automated teller machines (ATMs), telephone banking, mobile banking and its Internet Website www.websterbank.com. Webster also offers equipment financing, commercial real estate lending and asset-based lending across the Northeast. Webster Bank offers health savings accounts on a nationwide basis, through its HSA Bank division and its Internet Website www.hsabank.com. Webster’s operatio ns are managed along four business segments: Commercial Banking, Retail Banking, Consumer Finance and Other. Other includes Health Savings Accounts (HSA) and Private Banking (including Webster Financial Advisors (WFA)).


Commercial Banking

The Commercial Banking segment includes middle market, asset-based lending, commercial real estate, equipment finance, and Government and not-for-profit banking. Webster’s Commercial Banking group provides lending, deposit and cash management services to middle market companies in its franchise territory. Additionally, it serves as a primary referral source to Wealth Management and Retail Banking.

Retail Banking

Retail Banking serves consumers and small businesses primarily throughout southern New England and into Westchester County, New York, with a distribution network of 167 banking offices and 293 owned ATMs, and a full range of Internet and mobile banking services. Retail Banking i ncludes Webster’s branch network, Consumer deposits, Busin! ess and Professional Banking (BPB), Webster Investment Services (WIS) and the Customer Care Center.


Consumer Finance

Consumer Finance offers lending solutions for consumers primarily in southern New England and Westchester County, New York. Products include: residential mortgages, home equity loans and lines of credit, unsecured personal loans as well as credit card options.

Other

Other includes HSA Bank (HSA) and Private Banking. HSA Bank is a bank custodian of health savings accounts. These accounts are provided for high deductible health plans offered by employers or directly to consumers. Private Banking provides local full relationship banking that serves high net worth clients, not-for-profit organizations and business clients for asset management, trust, loan and deposit products and financial planning services.


Subsidiaries of Webster Financial Corporation

Webster’s direct subsidiaries as of December 31, 2012 included Webster Bank, Fleming, Perry & Cox, Inc., and Webster Licensing, LLC. Webster also owns all of the outstanding common stock of Webster Statutory Trust, an unconsolidated financial vehicle that has issued or may in the future issue trust preferred securities. On July 18, 2012, the Company completed the redemption at par of all the outstanding principal amount of Webster Capital Trust IV fixed to floating-rate trust preferred securities. Webster Bank’s direct subsidiaries include Webster Mortgage Investment Corporation, Webster Business Credit Corporation (WBCC) and Webster Capital Finance, Inc. (WCF). Webster Bank is the primary source of retail activity within the consolidated Company. Webster Bank is the primary source of retail activity within the consolidated group. Webster Bank provides banking services through 167 banking offices, 293 owned ATMs, telephone banking, mobile banking and its Internet websites. Residential mortgage origination activity is conducted through Webster Bank. Webster Mortgage! Investme! nt Corporation is a passive investment subsidiary whose primary function is to provide servicing on passive investments, such as residential real estate and commercial mortgage real estate loans transferred from Webster Bank. Various commercial lending products are provided through Webster Bank and its subsidiaries to clients within the region from Westchester County, NY to Boston, MA. WBCC provides asset-based lending services. WCF provides equipment financing for end users of equipment. Additionally, Webster Bank has various other subsidiaries that are not significant to the consolidated Company.


Advisors’ Opinion:

  • [By Marc Bastow]

    Bank holding and financial company Webster Bank (WBS) raised its quarterly dividend 33% to 20 cents per share payable June 16 to shareholders of record June 2.
    WBS Dividend Yield: 2.63%

  • [By Rich Duprey]

    Business and consumer banking concern Webster Financial  (NYSE: WBS  )  announced yesterday that its board of directors has approved increasing its quarterly dividend by 50%, from $0.10 per share to $0.15 per share. The new, higher payment will be made on May 20 to stockholders of record as of May 6.

Hot Logistics Stocks For 2015: Nestle SA (NSRGY)


Nestle SA is a company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. The Company has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. Nestle is also active in the pharmaceutical sector. It divides its products into nine categories: Prepared dishes and cooking aids, Beverages, Confectionery, Ice cream, Water, PetCare, Milk products, Nutrition and Pharma. It has numerous subsidiaries engaged in various areas of activity, including Alcon Ophthalmika GmbH (Austria), Alcon Bulgaria EOOD (Bulgaria) and Galderma Laboratorium GmbH (Germany) for pharmaceuticals; Novartis Nutrition GmbH (Austria) and Hjem-IS A/S (Denmark) for food and beverages, and Galderma International SAS (France) and Galderma Laboratorium GmbH (Germany) for health and beauty activities. The Company is headquartered in Vevey, Switzerland. In July 2008, Novartis AG acquired a 25% stake in Alcon, Inc. from Nestle SA. In March 2010, the Company acquired Kraft Foods Inc’ frozen pizza business.


In April 2008, L’Oreal and Nestle SA’s joint venture, Galderma Pharma S.A., announced that its United States holding company, Galderma Laboratories, Inc., had acquired approximately 97% interest in CollaGenex Pharmaceuticals, Inc. During the year ended December 31, 2004, Nestle had 500 factories in 83 countries around the world. In 2004, 15 factories were acquired or opened and 29 closed or divested.

Advisors’ Opinion:

  • [By jaggom]

    This is a smart move by Hershey’s since the Chinese chocolate confectionery business is an enormous one at $12 billion, with Mars and Nestle (NSRGY) the heading players. So, Hershey’s latest acquisition should help it tap this business in a superior manner.

  • [By WWW.DAILYFINANCE.COM]

    Herb Swanson/Bloomberg/Getty Images One of this year’s biggest winners on Wall Street is Keurig Green Mountain (GMCR). The stock was up 65 percent through the first half of 2014, a surprising spike for the leader in single-serve premium coffee, which was starting to see its growth decelerate. The initial catalyst for Keurig Green Mountain’s surge came in February when Coca-Cola (KO) paid $1.25 billion for a 10 percent stake in the company. Coca-Cola paid roughly $75 a share for the stock, and it paid a much higher price for more a couple of months later when it boosted its stake to 16 percent. It’s a significant development when the world’s largest beverage company takes such a sizable stake in a niche player, but Coca-Cola’s validation of the K-Cup champ has also made that investment more valuable. That initial $1.25 billion purchase is now worth more than $2 billion. Given the meandering ways of Coca-Cola’s own business — analysts expect to see flat sales growth this year — riding the coattails of a hot beverage company could be just the ticket to silence those skeptics reminiscing about Coca-Cola’s glory years of heady growth. The Mountain is Always Greener on the Other Side Coca-Cola’s investment isn’t the only reason why Keurig Green Mountain has been percolating. Despite losing patent protection for its K-Cup portion packs two years ago, growing numbers of coffee brands and retailers are turning to Keurig Green Mountain to fuel single-serve initiatives. BJ’s Wholesale Club announced last week that it will have Keurig Green Mountain itself handle K-Cup production for BJ’s private-label Wellsley brand. Keurig Green Mountain this week it revealed that it’s teaming up with European giant Nestle (NSRGY) to introduce the first K-Cup to offer branded coffee and creamer in the same portion pack. Nestle Coffee-mate K-Cups will be available through Keurig’s website in the fall and across retail outlets early next year. Hot and Cold Nothing trumps fears ov

  • [By Bob Ciura]

    And yet, P&G is a smaller company than the one I’m referring to. The company I’m alluding to is Nestle (NASDAQOTH: NSRGY  ) , the largest consumer goods company in the world.

  • [By Louie Grint]

    The European Central Bank could make an important decision soon. Pricing data in the European Union has been coming in weak, hitting the lowest level in more than four years. This adds pressure to ECB President Mario Draghi, who might start looking for ways to counter the deflationary threat in the region. What can he do? Two things: cut interest rates and/or start a round of quantitative easing to boost activity levels and push prices up. During last week’s monthly meeting, the ECB left its policies unchanged, but calls for action are mounting, and Draghi says measures including asset purchases are on the table.


    With the U.S. Federal Reserve winding down its quantitative-easing program and the Japanese central bank finishing its strong QE of 2013, it might be Europe’s turn to try a more aggressive policy to drive its economy. After all, the austerity measures designed to curtail the unsustainable deficit spending kept demand soft in the region and did not solve it s problems.

    How could this impact European assets?  
    Normally, a drop in interest rates and expansive monetary policies are positive for capital markets. In Japan, for example, the Nikkei grew more than 60% last year, while the U.S.’ S&P 500 gained 28%.


    For a closer look at how Europe is doing, consider the best-known broad European index ETF, Vanguard European Stock Index (NYSEMKT: VGK  ) . This fund invests in large- and mid-cap stocks based in 17 developed European markets, representing most of the investable market.  Many of the fund’s largest holdings are quality multinational names such as Nestle (NASDAQOTH: NSRGY  ) , Royal Dutch Shell, Roche, and HSBC (NYSE: HSBC  ) . But if you consider weight by country, the U.K. comes first with 33%, followed by Switzerland with 14% and France with 14%.

Hot Logistics Stocks For 2015: Zale Corp (ZLC)


Zale Corporation, incorporated on April 26, 1991, through its wholly owned subsidiaries, is a retailer of fine jewelry in North America. The Company operates in three segments: fine jewelry, kiosk jewelry and all other. As of July 31, 2012, the Company operated 1,124 specialty retail jewelry stores and 654 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico. The Company’s fine jewelry segment consists of five brands: Zales Jewelers, Peoples Jewellers, Zales Outlet, Mappins Jewellers, and Gordon’s Jewelers The Company’s kiosk jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, Piercing Pagoda) through mall-based kiosks. The Company provides insurance and reinsurance services for various types of insurance coverage, which is marketed primarily to its private label credit card guests, through Zale Indemnity Company, Zale Life Insurance Company and Jewel Re-Insurance Ltd.


Fine Jewelry

Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Zales Jewelers is the Company’s national brand in the United States providing moderately priced jewelry to a range of guests. Zales Outlet operates in outlet malls and neighborhood power centers and capitalizes on Zales Jewelers’ national advertising and brand recognition. Gordon’s Jewelers is a value-oriented regional jeweler. Peoples Jewellers, Canada’s fine jewelry retailer, provides guests with shopping experience. Mappins Jewellers offers Canadian guests a selection of merchandise from engagement rings to fashionable and contemporary fine jewelry.


The Company has extended its reach of certain brands through the use of its Webstores, mobile devices and social media to provide its guests access to its brands wherever and whenever they choose. In addition, the Company offers its guests the option to p urchase warranty coverage on substantially all of its mercha! ndise in Fine Jewelry. The Company also offers repair services to guests who do not purchase warranty coverage. Zales Jewelers (Zales), the Company’s United States based flagship, is a brand name in jewelry retailing in the United States, operating 639 stores in 50 states and Puerto Rico with an average store size of 1,681 square feet. Gordon’s Jewelers (Gordon’s) operates 147 stores in 27 states and Puerto Rico with an average store size of 1,534 square feet.

The Company’s Zales brand is positioned as the Diamond Store emphasizing on diamond jewelry, especially in the bridal and fashion segments. Zales and Gordon’s combined revenues accounted for 60% of the Company’s total revenues during the fiscal year ended July 31, 2012 (fiscal 2012). Both brands operate as multi-channel retailers and serve Internet guests through the e-commerce sites www.zales.com and www.gordonsjewelers.com, which accounted for approximately 5% of the Company’s total revenues in fiscal 2012.

In Canada, the Company operates 206stores in nine provinces. The Company’s Canadian operations consist of two brands, Peoples Jewellers (Peoples) and Mappins Jewellers (Mappins), and accounted for 17% of the Company’s total revenues in fiscal 2012. The average store size is 1,605 square feet with an average transaction value of $332 in fiscal year 2012. Peoples serves Internet guests through the e-commerce site, www.peoplesjewellers.com. The Company operates 132 Zales Outlet (Outlet) stores in 35 states and Puerto Rico, sales from which accounted for 10% of its total revenues in fiscal 2012. The average store size is 2,362 square feet in fiscal 2012.

Kiosk Jewelry

The Company’s kiosk jewelry segment is focused on the opening price point jewelry guest. The Company’s presence in Kiosk Jewelry has been expanded through the e-commerce site, www.pagoda.com. The Company also offers its guests the option to purchase warranty coverage on certain products. As of July 31, 2012, Piercing Pagoda op! erated 65! 4 locations in 41 states and Puerto Rico, sales from which accounted for 13% of the Company’s total revenues in fiscal. Piercing Pagoda offers collection of bracelets, earrings, charms, rings, non-precious metal products and 14 karat and 10 karat gold chains, as well as a selection of silver and diamond jewelry, all in basic styles at moderate prices. Kiosk locations average 188 square feet in size in fiscal 2012.

All Other

The Company insurance companies are the insurers (either through direct written or reinsurance contracts) of the Company’s guests’ credit insurance coverage. In addition to providing merchandise replacement coverage for certain perils, credit insurance coverage provides protection to the creditor and cardholder for losses associated with the disability, involuntary unemployment, leave of absence or death of the cardholder. Zale Life Insurance Company also provides group life insurance coverage for the Company’s eligible employees . In fiscal year 2012, 36% of the Company’s private label credit card purchasers purchased some form of credit insurance. In fiscal year 2012, all other accounted for approximately 1% of the Company’s total revenues.

The Company competes with Wal-Mart Stores, Inc., .C. Penney Company, Inc., Signet Jewelers Limited, and QVC, Inc.

Advisors’ Opinion:

  • [By John Kell]

    Among the companies with shares expected to actively trade in Wednesday’s session are Zale Corp.(ZLC), Herbalife Ltd.(HLF) and Devon Energy Corp.(DVN)

  • [By Jake L’Ecuyer]

    Top Headline
    Signet Jewelers (NYSE: SIG) announced its plans to buy Zale (NYSE: ZLC) for around $690 million. Signet will pay $21 per share to acquire Zale, representing a 41% premium to Zale’s closing price of $14.91 on Tuesday.

  • [By Aaron Smith]

    Shares surged 12% for Signet (SIG)in premarket trading, while Zale (ZLC) shares soared 40%.

    Signet, which has 1,400 stores in the U.S. and 500 in the U.K., has agreed to buy the Dallas-based Zale, which has 1,680 stores in the U.S., Canada and Puerto Rico, in a cash deal for $21 per share.