Tag: luxury

Stocks Defy Gravity by Playing Catch-Up

Filed in Gold, Gold Bullion prices, silver by on July 9, 2010 0 Comments
Stocks Defy Gravity by Playing Catch-Up

Stocks extended their rally for a third consecutive day, with computer-driven buying accounting for nearly all of the gains. How do we know this? Why, we read it in the Wall Street Journal: “This is a big vacation week,” noted one equity-desk veteran,” but the computers and servers are still cranking them out.” We assume that “cranking them out” means generating buy and sell orders irrespective of human participation or volition. Sort of like what happens when the Ferris wheel operator disappears for 15 minutes with a flask and a gal in a polka-dot dress. The Journal cited another catalyst as well: a frenzy of trading in the final 30 minutes by exchange-traded funds (ETFs) playing catch-up. This supposedly has been going on since June, and one wonders whether the Masters of the Universe have finally devised a bullish perpetual-motion machine. Think about it: DaBoyz move electronically traded index futures higher overnight on extremely thin volume, requiring U.S. stocks to play catch-up on the opening bell. This is usually accomplished by way of a gap-up opening that causes the Dow Industrials to leap a hundred points or more before anyone has had a chance to buy anything. Then stocks noodle around for the next five hours before taking yet another leap as the ETFs bring their holdings into line with all of the new buying that has taken place. Then rinse and repeat. No wonder some forecasters are predicting the Dow Average will eventually top 30,000 – presumably, even if the U.S. sinks into a Second Great Depression. Kudlow’s Helpers We have noted here half-jokingly that there is perhaps only one active buyer during the daily noodling-around period: CNBC’s irrepressible bull, Larry Kudlow. In reality, most of the buying is done by bears covering short positions that have gone awry. With the Indoos up 452 points so far this week, it’s a good bet that the shorts’ capacity to endure pain will be pushed to-the-max today ahead of the weekend. The effect may be even more dramatic than usual because yesterday’s short-squeeze left the Dow above 10,000, a number that many bears may have been counting on to turn back the tide. For our part, we shorted some Diamond August 102 puts yesterday for 3.70 apiece to neutralize a bearish position we’d taken in some August puts of a lower strike. The “backspread” position that has resulted will give us the luxury of enjoying the show if stocks continue on their crazed path higher – or even if they should collapse. That’s coming – and soon, we think. But in the meantime, it’s probably best to just run with the lemmings.

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Coach: Earnings Scorecard – Analyst Blog

Filed in earnings, euro, Gold Investing, Gold Prices, ubs by on May 19, 2010 0 Comments

Coach, Inc. ( COH ), the designer and marketer of fine accessories and gifts, posted better-than-expected third-quarter 2010 results on April 20, 2010 on the heels of strong top-line growth and competitive pricing. Wall Street analysts have now had nearly a month to digest the news. Below we cover the recent earnings announcement, subsequent analyst estimate revisions and Zacks ratings for the short-term and long-term outlook for the stock. Earnings Report Review Coach’s quarterly earnings of 50 cents a share outpaced the Zacks Consensus Estimate of 46 cents, and jumped 31.3% from 38 cents delivered in the prior-year quarter. New York-based Coach said that total net sales climbed 12.3% year on year to $830.7 million. Direct-to-consumer sales jumped 15% to $726 million, driven by a 5.1% rise in the North American comparable-store sales and strong growth in the China business, which showed a double-digit rate increase in comparable-store sales. Indirect sales dropped marginally by 1% to $105 million due to lower shipments to U.S. department stores. (Read our full coverage on this earnings report: Coach Q3 Better Than Expected ) Earnings Estimate Revisions – Overview The Zacks Consensus Estimate has been on the rise since the earnings release. The rise in sales was a positive indication for the luxury-goods designer, battered by the recent economic downturn. Coach, the maker of handbags, wallets, shoes and other accessories, lowered prices on some of its merchandise, and introduced new styles to improve sales as consumers cut spending. The company’s long-term growth drivers include expansion of its global distribution model and forays into under-penetrated markets. After North America and Asia, Coach now plans to extend its global footprint in Western Europe. Agreement of Analysts In the last 30 days, 16 analysts out of 20 covering the stock raised their estimates for the upcoming fourth quarter, while five analysts raised and one analyst dropped estimates for the following quarter. For fiscal 2010 and 2011, 19 and 18 analysts raised their estimates, respectively. Magnitude of Estimate Revisions The Zacks Consensus Estimate for the upcoming fourth quarter moved upwards by 3 cents a share, and jumped 2 cents for the following quarter in the last 30 days. Moreover, the Zacks Consensus estimate for fiscal 2010 is up 8 cents, while for fiscal 2011, it is up 11 cents a share. The estimates in the current Zacks Consensus for fourth-quarter 2010 range from a low of 53 cents to a high of 59 cents. For fiscal 2010, the estimates range from $2.21 to $2.29. Coach in Neutral Lane Coach boasts a proven strategy of investing in stores to enhance store sales productivity through product innovation, compelling pricing strategy, new merchandise assortments, and a cost-effective global sourcing model, which should help drive comparable-store sales and operating margins over the

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Greece erupts as men from IMF prepare to wield axe

Filed in euro, Gold, Gold Spot Market by on May 2, 2010 0 Comments

Matthew Campbell London Times May 2, 2010 MAY DAY protests in Greece turned violent yesterday as youths in gas masks and hoods set fire to vehicles, smashed shop fronts and threw molotov cocktails and rocks at police in an explosion of fury over austerity measures they claim will hurt only the poor. Tourists were cut off from their hotels as thousands of communists, civil servants and private-sector workers converged on a main square in Athens to vent their rage at the European Union and the International Monetary Fund (IMF). “No to the IMF’s junta,” they chanted as a youth in a black hood produced a hammer to try to smash windows of the luxury Grande Bretagne hotel. Another painted anti-capitalist slogans on the facade, and demonstrators intervened to prevent him from spraying an Australian woman with paint as she tried to get back into the hotel. Japanese tourists stood taking photographs of the mayhem with mobile phones before being forced to retreat, coughing and sneezing, under a cloud of tear gas. Full article here

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How Is Your Wine Supply?

Filed in Debt, Federal Reserve, Gold, inflation, New Gold, silver, Spot Gold by on March 29, 2010 0 Comments

“One can but count on the wine one drinks today.” Thus sayeth L. E. Modesitt, Jr., an author and a fine piece of wisdom I commend to all of you. I don’t know if Mr. Modesitt regards himself as a philosopher and an analyst, as I am, or “just” the creator of many thousands of pages of superb fantasy, but once we strip away the wizards and sorceresses his grasp of human behavior, politics, financial affairs, and economics is superb. In ten words Mr. Modesitt has embodied both the problems and the basic strategy we need to cope with the dangers growing around us. More and more most Americans cannot count on the preparations (if any) they have made for all of their tomorrows, whether we are speaking of the 40% who are on the dole, the approximately 21% who are without jobs, or those who have long been serious about the future and demonstrate that by choices including saving, trading, investing, and your devotion to reading Whiskey & Gunpowder. Those with the “entitlement” mentality give no thought to tomorrow because it is an article of faith that government will continue to provide food, shelter, medical care, assistance with utility bills, and “walking around” money, all free and without the effort of working. Surely it will, for in their lifetimes and for generations before them thus it has always been… Wrong, drones. The federal and quite a few state and local governments resemble GM a couple of years ago, the primary differences being that they produce nothing of worth and have nothing for favored groups to benefit from when the “for profit corporation” known as the United States of America goes under. As it will. If one did not loathe the Obamacrats fiercely one might be inclined to feel sorry for them. The time is here when some group has to be thrown off the sleigh to placate the wolves of BRIC, et alia . Harry, Nancy, Timmy, Ben, and Barry have nibbled as far as they dared on older citizens, an enormous voting block, putting a three-year hold on COLA increases to Social “Security” and whacking us hard with Socialized Medicine and increased premiums and taxes. They dare not crack down on trial lawyers, Wall Street (used loosely), or Unions, their major sources of funding. If the “entitled” stop getting their checks or the value of those and food stamps are destroyed through the coming inflation, cities will burn. Crime is already up significantly due to those who think the world owes them a living. Cut government budgets and staff? Unthinkable. The few efforts made are chosen carefully to outrage the rest of us, such …

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O can’t handle the truth!

Filed in Gold Bullion prices by on March 6, 2010 0 Comments

WASHINGTON — Throughout his political career, President Obama could not — as Jack Nicholson's character in “A Few Good Men” might say — handle the truth. He had the luxury of going to elegant parties, where he gallantly smoked cigarettes and held forth with idle chatter about the incomprehensibly grotesque manner in which America was fighting this war on terror. We should close that mean prison at Guantanamo, welcome ashore our enemies and treat them to our civilized system of civilian justice, a preening Obama told adoring audiences. It was, as that great American politician Bill Clinton once memorably remarked,… Original Article: Forum: News/Activism

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Richemont shares could rally by 50 pct

Filed in Gold Holdings, Gold Investing by on February 28, 2010 0 Comments

NEW YORK, Feb 28 – Shares of Compagnie Financiere Richemont could jump by 50 percent or more in the next year, helped by a rebound in the luxury goods market, according to the financial weekly Barron’s. Shares of Richemont, which makes Cartier jew Richemont shares could rally by 50 pct

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The 80% Retirement Income Myth

Filed in Gold Prices, silver by on February 21, 2010 0 Comments

The large majority of consumers would prefer to cut back on the luxury items that make up so much of their pre-retirement spending if that permitted them to retire on the timeline that they desired. But who tells people that? Instead, the conventional planning advice is that you want 80% of pre-retirement income, you can reluctantly settle for 70%, and if you only get 50%, you’re eating cat food. Words: 546

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