Specialty retailer and shopping mall staple�Express (NYSE: EXPR ) delivered a stellar earnings report last week that delighted investors and analysts alike. The beat was impressive, given that many specialty retailers remain challenged by macroeconomic tepidity and unseasonable weather patterns. Yet the real news regarding the company is not so much its recent performance but its upcoming focus. With management's latest comments in mind, let's take a closer look at Express.
Earnings recap
The tone just a few months back was much different for Express management, which was anticipating a more hesitant shopper base coupled with a large disconnect between spring break and the Easter holiday (not to mention a dreadful 2012). The company wisely chose to combat these factors with a very active promotional campaign -- namely a 40%-off, no-nonsense campaign that seemed to resonate with cost-conscious mall-goers. While same-store sales were flat on a year-over-year basis, management was excited to see a higher conversion rate in existing stores. More encouraging was the company's Web effort, with e-commerce growing an impressive 48% -- representing a total of 14% of the company's entire sales.
Hot Specialty Retail Stocks To Own Right Now: Trina Solar Limited(TSL)
Trina Solar Limited, through its subsidiaries, designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. The company offers monocrystalline PV modules ranging from 165 watts to 185 watts in power output; and multicrystalline PV modules ranging from 215 watts to 240 watts in power output that provide electric power for residential, commercial, industrial, and other applications. It also involves in the design and production of various PV modules, such as colored modules for architectural applications and larger sized modules for utility grid applications based on customers? and end-users? specifications. Trina Solar Limited sells and markets its products primarily to distributors, wholesalers, power plant developers and operators, and PV system integrators. The company was founded in 1997 and is based in Changzhou, the People?s Republic of China.
Advisors' Opinion:- [By Hawkinvest]
Trina Solar Ltd. (TSL) is one of the most respected solar companies in China. It has a strong balance sheet, especially when compared to many other Chinese solar companies. Trina Solar recently reported financial results for fourth quarter and full year of 2011. The loss for 2011 was $37.8 million, or 54 cents per share. Trina Solar is working to reduce non-silicon manufacturing cost to less than 60 cents per watt by the end of 2012, which will give the company a competitive advantage. This company is one of China's "blue chip" solar stocks, and it is likely to lead an industry rebound when it comes. With the recent financial report out of the way, and the stock below $8 per share, it appears be the right time to start buying in stages.
- [By Keith]
Trina Solar Limited. We have to take a stab at solar in 2012. After getting absolutely murdered in 2011, there is likely one way for solar to go...up. Or, less likely, to 0. The best company in the industry is hands down Trina. It has great management, solid financials, and a cheap production process that gives it great profitability. The company has a lot of upside and was trading at $30 in the past 52 weeks. We believe that a 3.12 PE is about as bad as it gets, and we see a lot of possible upside in 2012 for Trina. We have a $13.50 PT, giving about 100% upside.
Allocation: $1000
Entry: $7.04
Target: $8, $9, and $13.50
Hot Specialty Retail Stocks To Own Right Now: UFP Technologies Inc.(UFPT)
UFP Technologies, Inc., through its subsidiaries, engages in the design and manufacture of engineered packaging solutions for medical and scientific, automotive, aerospace and defense, computer and electronics, industrial, and consumer markets. The company offers packaging products primarily using polyethylene, polyurethane, cross-linked polyethylene foams, and rigid plastics. Its packaging products include end-cap packs for computers, corner blocks for telecommunications consoles, anti-static foam packs for printed circuit boards, die-cut or routed inserts for cases, molded foam enclosures for orthopedic products, and plastic trays for medical devices and components. UFP Technologies also fabricates and molds component products made from cross-linked polyethylene foam and other materials, as well as engages in laminating fabrics and other materials to cross-linked polyethylene foams, polyurethane foams, and other substrates. The company?s component products include automo tive interior trim, athletic padding, industrial safety belts, medical device components, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, anti-fatigue mats, and shock absorbing inserts used in athletic and leisure footwear. It sells its products primarily under United Foam, Simco Automotive, and Molded Fiber brand names through direct sales force, independent manufacturer representatives, and distributors. The company was founded in 1963 and is headquartered in Georgetown, Massachusetts.
10 Best Warren Buffett Stocks To Own Right Now: CF Industries Holdings Inc. (CF)
CF Industries Holdings, Inc., through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. It operates in two segments, Nitrogen and Phosphate. The Nitrogen segment principally offers ammonia, granular urea, urea ammonium nitrate solution, urea liquor, diesel exhaust fluid, and aqua ammonia. The Phosphate segment primarily offers diammonium phosphate and monoammonium phosphate. The company also owns 50% interests in the GrowHow UK Limited, a nitrogen products producer in the United Kingdom; Point Lisas Nitrogen Limited, an ammonia producer; and KEYTRADE AG, a global fertilizer trading company. CF Industries Holdings� customers include cooperatives and independent fertilizer distributors primarily in the midwestern United States. The company was founded in 1946 and is headquartered in Deerfield, Illinois.
Advisors' Opinion:- [By James K. Glassman]
A standout in an unlikely business is CF Industries, a fertilizer producer based in Deerfield, Ill. In 2011, its free cash flow roughly doubled, to a hefty $1.8 billion, from the previous year, as it had from the preceding year as well. Lately, CF's capital expenditures have been well below its depreciation, but the company's revenues keep rising. CF's strong cash performance has, quite naturally spurred its board to boost the dividend -- from an annual rate of 40 cents per share in 2010 to a rate of $1.60 today.
Read more at http://www.kiplinger.com/slideshow/investing/T052-S001-9-cash-rich-stocks-to-buy-now/index.html#LLDifCZJ5h4D3JBY.99
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