Luxury retailer Coach (NYSE: COH ) has lost its wheels in 2014, while competitors Michael Kors (NYSE: KORS ) and Kate Spade (NYSE: KATE ) are chugging along nicely. Coach’s bad times started when the company declared disappointing second-quarter results in late January. Its North American comps declined 13.6% while its overall revenue dropped 6%.
Coach could not escape the adverse climate conditions that prevailed in the U.S., while competition from Kors and Spade also throttled its growth.
Challenges in China
China was the only bright spot for Coach; its total sales in the region grew 25% and its comparable-store sales rose at a double-digit rate. The company opened 10 new stores at key locations in China: two in Hong Kong and eight in mainland China. Coach now has a total of 142 stores in China, with 122 stores on the mainland. In addition, it is positive about its prospects in the rest of the Asia-Pacific region, where it is opening stores in Taiwan, Singapore, Korea, and Malaysia.
Top 5 Healthcare Equipment Companies To Own For 2015: United Rentals Inc.(URI)
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It offers approximately 3,000 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The company?s fleet of rental equipment includes general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms consisting of boom lifts and scissor lifts; and general tools and light equipment, including pressure washers, water pumps, generators, heaters, and power tools. Its fleet also comprise trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; and power and heating, ventilating, and air conditioning (HVAC) equipment, which consists of portable diesel generators, electrical distribution equipment, and temperature control equipment, including heating and cooling equipment. In addition, the company sells new and used equipment, as well as related contractor supplies, parts, and service; and offers repair, maintenance, and rental protection services. Further, it develops and markets RENTALMAN, an enterprise resource planning application for equipment rental companies; and INFOMANAGER, which offers solution for creating a business intelligence system. As of January 1, 2012, the company had an integrated network of 529 rental locations in the United States and Canada. United Rentals, Inc. was founded in 1997 and is headquartered in Greenwich, Connecticut.
- [By John Bonnanzio]
The fund’s top holdings are Telsa, Henry Schein (HSIC), United Rentals (URI), Gartner (IT) and Kansas City Southern (KSU).
The fund also has some exposure to pricey biotech. Even so, this is hardly a shoot-the-lights-out growth fund as volatility is below all his mid-cap peers. To that end, this trade actually tempers risk while increasing growth exposure.
- [By Ben Levisohn]
Like many companies this year, United Rentals (URI) announced an acquisition and saw its shares price pop.
Reuters has the details on United Rentals’ big buy:
United Rentals Inc, the world’s largest equipment rental company, said on Sunday it had agreed to acquire privately held National Pump, the second-largest specialty pump rental company in North America, for $780 million.
The deal marks United Rentals’ foray into the pump rental sector, which is benefiting from increased demand from energy and petrochemical companies tapping into the shale gas boom in the United States. Upstream oil and gas customers account for about half of National Pump’s revenue.
Citigroup’s Timothy Thein and Saree Boroditsky like the deal:
We see the announced acquisition of National Pump, the second largest pump specialty rental company in NA (with ~15% share), and related assets, to be a positive on many fronts. It expands [United Rentals’] presence in to the high margin, high ROA specialty rental market (19% of pro-forma sales), evidenced by National’s high dollar utilization (80%, vs. 47% for URI) and EBITDA margins. With ~65% of National’s sales coming from Oil&Gas and Petrochem markets, the deal gives URI added exposure to two powerful secular trends (US energy independence and manufacturing “renaissance”), which helps support above-avg growth potential for this category ([United Rentals] ests ~9% LT growth). We think the 6.5x EBITDA multiple (7.6x adj. EBITDA excluding cash tax savings) is reasonable given the attractive margins / return profile, and the fact that it provides synergy opportunities and a strong base off which [United Rentals] can grow ([United Rentals] plans to double the size of the pump business within five years). Deal expected to be accretive to FCF and EPS in ‘14 (closing anticipated early 2Q14). Lastly, we would suspect this deal takes [United Rentals] out
Top 5 Healthcare Equipment Companies To Own For 2015: Fenner PLC (FENR)
Fenner PLC is a manufacturer and distributor of reinforced polymer products. It operates in two segments: engineered conveyor solutions, which is engaged in the manufacture of rubber, polyvinyl chloride and steel cord conveyor belts, ply, solid woven and steel cord conveyor belting for mining, power generation and industrial applications and advanced engineered products, which is engaged in the manufacture of precision polymer products; problem-solving power transmission and motion transfer components; silicone and complex hoses for heavy duty trucks, buses and off-road vehicles; seals and sealing solutions for the fluid power and oil and gas industries; technical textiles for medical and industrial applications and silicone based products for medical applications; rollers for digital image processing and medical diagnostics, and fluropolymer components for fluid and gas handling. Advisors’ Opinion:
- [By Inyoung Hwang]
Fenner Plc (FENR) rallied 5.2 percent to 407.4 pence, its highest price since March 20. UBS AG started coverage of the conveyor-belt maker with a buy rating, saying shares are cheap. The bank predicted the stock will climb to 460 pence in the next 12 months.
Top 5 Healthcare Equipment Companies To Own For 2015: Kirkland’s Inc.(KIRK)
Kirkland?s, Inc. operates as a specialty retailer of home decor and gifts in the United States. Its stores offer various merchandise, including framed art, mirrors, wall decor, candles and related items, lamps, decorative accessories, accent furniture, textiles, garden-related accessories, and artificial floral products. The company?s stores also provide an assortment of holiday merchandise during seasonal periods, as well as items suitable for gift-giving. It operates stores under the Kirkland?s, Kirkland?s Home, Kirkland?s Home Outlet, and Kirkland?s Outlet names. The company operates its stores in enclosed malls and various off-mall venues, including lifestyle centers, power strip centers, outlet centers, and freestanding locations. Kirkland?s, Inc. also sells its products through its Web site kirklands.com. As of March 08, 2012, it operated 299 stores in 30 states. The company was founded in 1966 and is based in Nashville, Tennessee.
- [By Teresa Rivas]
Other home furnishings retailers, including Bed, Bath & Beyond (BBBY), Restoration Hardware (RH) and Kirkland’s (KIRK) were trading down in afternoon trading.
- [By Laura Brodbeck]
Earnings Expected From: AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO), Kirkland’s, Inc (NASDAQ: KIRK), Dollar General Corporation (NYSE: DG), Stein Mart, Inc. (SMRT: NASDAQ), Mattress Firm Holding Corp. (NASDAQ: MRFM), SeaWorld Entertainment (NYSE: SEAS), Vaalco Energy Inc (NYSE: EGY) Economic Releases Expected: Chinese retail sales, French CPI, Brazilian retail sales, US retail sales, Japanese industrial production
Top 5 Healthcare Equipment Companies To Own For 2015: Nestle SA (NESN)
Nestle SA is a Swiss 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. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd. Advisors’ Opinion:
- [By Celeste Perri]
Nestle SA (NESN) is selling Givaudan (GIVN) SA shares worth $1.27 billion at yesterday’s closing price to institutional investors, winding down its stake in the world’s largest flavorings maker.
- [By Chad Fraser]
These are the first significant moves made by the Caira, a former executive at Nestle SA (NYSE: NESN) who helped expand that company’s hot and cold beverage division.
Top 5 Healthcare Equipment Companies To Own For 2015: Mercury Computer Systems(MRCY)
Mercury Computer Systems, Inc. designs, manufactures, and markets high-performance embedded, real-time digital signal and image processing systems and software for specialized defense and commercial computing markets. The company operates in two segments, Advanced Computing Solutions (ACS) and Mercury Federal Systems (MFS). The ACS segment provides high-performance computing solutions, such as single board computers, digital signal processors, and integrated subsystems to the aerospace and defense, semiconductor, and commercial computing markets. This segment also provides microwave sub-assemblies to address needs in EW, SIGINT, ELINT, and high bandwidth communications subsystems; and software and customized design services for military and commercial applications. The MFS segment focuses on services and support work with the Department of Defense and federal intelligence and homeland security agencies, including designing and engineering intelligence, surveillance, and re connaissance (ISR) capabilities to address threats to the U.S. forces. It offers a range of engineering architecture and design services that enable clients to deploy computing capabilities for ISR systems on an accelerated time cycle. The company has operations in the United States, Europe, and the Asia Pacific. The company was founded in 1981 and is headquartered in Chelmsford, Massachusetts.
- [By CRWE]
Mercury Computer Systems, Inc. (Nasdaq:MRCY), a best-of-breed provider of commercially developed, open sensor and Big Data processing systems for critical commercial, defense and intelligence applications, reported it had received a $2.2M purchase order relating to an airborne radar application for fighter aircraft.