Seeking Alpha

Jennifer Lynn's  Instablog

Jennifer Lynn
Send Message
Jennifer Lynn is a proficient investor, executive and manager working with analytics data to drive smart business decisions. Technology, eCommerce, Management, Healthcare, Consulting, Strategy. Passionate for Finance, IT & Emerging Markets. Email: consultbydigital @ gmail.com
My company:
Jennifer Lynn
My blog:
Jennifer Lynn's Blog
  • Is It Turnaround Time For JCPenney?

    JCPenney (NYSE:JCP) CEO Mike Ullman's progress indications of the retailer's recent turnaround at least makes us believe the company will not go out of business. Not typically bad news for those who invest in money-losing or dying department-store chains. Shares of JCPenney closed lower -3.81% to $8.59 on Wednesday.

    TheStreet Ratings team reiterated yesterday JCPenney as a "sell" with a ratings score of D.

    "We rate JC Penney Co. a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

    Shares had surged 16.25 percent on Monday. JCPenney reported first quarter same store sales which jumped to 6.2 percent, exceeding estimates; second consecutive quarter of growth.

    The retailer disclosed more detail of its new $2.35 billion bank loan also on Monday. A five year term was announced and the lead banks are Wells Fargo, Bank of America, J.P Morgan Chase, Barclays and Goldman Sachs. JCPenney's existing loan balance is $650 million.

    JCPenney's "go-forward phase" into second quarter aims for long-term profitable growth.

    The company announced it will continue its strategic efforts into the second quarter to re-merchandise many of its store areas, revamp consumer messaging and drive key promotional events which contributed to sales results.

    Weak results may be the real blame for retail.

    According to the U.S. Commerce Department, April retail sales were up by only 0.1 percent compared with the previous month. There are still strong indicators that consumer consumption just isn't fleshing out quite yet. Much was to blame on the bad weather. However, I see a trend across all retailers as also harbouring around real weakness.

    JCPenney isn't by far a healthy company but they are not the only retailer missing its numbers.

    Big retailers such as Amazon (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT) are also falling short. Pressures on discounting at the store level and dealing with retail store closures are present. GDP expectations at the most, conservatively should be 2.6 percent.

    There still is hope.

    Fitch Ratings tightened 36% on Tuesday as JCPenney's recovery gains traction, assigning a positive outlook after first-quarter results. The Positive Outlook reflected J.C. Penney's recently improved liquidity profile which followed a number of actions over recent months.

    CEO Mike Ullman is looking on the bright side. Does that mean you should to?

    After great first quarter results, improvements, a Positive Outlook and increased credit line, JCPenney still may be a hard sell for investors. It would be safe and sane to remain cautious about the stock as long term for now.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: JCP
    May 23 2:42 AM | Link | Comment!
  • Why The DirecTV Deal Will Push AT&T To The Top Of TV And Telecom

    NEW YORK (TheStreet) -- DirecTV , the provider of digital television entertainment in the U.S. and Latin America, continues to gain Wall Street's attention with talks of an AT&T deal. I view the AT&T and DirecTV proposed merger as an attractive one. However, DirecTV's strong presence in Latin America makes the deal complicated for AT&T. DirecTV is currently the...

    Read how Jennifer breaks down the analysis with opinion here:

    http://www.thestreet.com/story/12708423/1.html #TheStreet $DTV

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: DTV
    May 14 6:50 PM | Link | Comment!
  • Banco Do Brasil Lending Concerns
    Banco do Brasil SA (BBAS3:SA) stock surged from previous years which were at low levels. The upswing resulted from economic unemployment and rising salaries. Credit grew around 16% in 2012 and it is expected to slow slightly this year, but it will remain at around 14%. Banco do Brasil is presently at a yield of 3.875%. The largest bank had, the world's largest initial public offering so far in 2009, was trading flat recently on the Sao Paulo Stock Exchange and down 1% on the New York Stock Exchange. At $8.04 billion, the deal eclipses the $7.34 billion raised by China State Construction Engineering Corp. in an IPO earlier this year, according to data from Dealogic. According to Reuters, "During the quarter, the default ratio at Itaú Unibanco Holding SA fell to its lowest since early 2009, when a merger formed Brazil's largest private sector lender, executives said this week. The default ratio measures the value of loans in arrears for 90 days or more as a percentage of a lender's outstanding loan book." On Friday, Banco do Brasil SA (BBAS3:SAO) closed at 22.81, 13.88% above the 52 week low of 20.03 set on Jul 05, 2013.

    José Maurício Pereira Coelho, Financial Director for Banco do Brasil stated "Assets sold €700 million in five-year bonds, more than the €500 million it had originally planned to sell, after demand topped €2 billion." The last time the bank sold euro-denominated bonds, in January 2011, it sold €750 million in five-year bonds at a yield of 4.5%.

    Emerging Markets

    The second round of monetary easing in the United States was in the later part of 2010. At this time emerging markets struggled with adapting quantitative easing and the U.S. which could impede on lowering the value of currencies. Investors, clammer with Banco do Brasil recent deal however with emerging markets are still vulnerable while the timing comes at a questionable time for the acceptance of a possible ease of the monetary policy in the U.S with Brasil markets.

    Banco do Brasil sold $2 billion in dollar-denominated perpetual bonds earlier this year. The deal was to improve its financial areas and continue to move forward with rapid credit growth. Banco do Brasil's credit grew to 16% in 2012 and is expected to slow slightly throughout this year. In 2013, growth will remain at around 14%.

    For investors, the economic conditions outlook looks optimistic for improvement. As a result Banco do Brasil can adapt to this market quickly as an existing reputable Bank to international countries. The bank will issue the latest bonds under its global medium-term note program, which has a limit of $5 billion, and it is planning to use the proceeds for general banking purposes, according to Standard & Poor's Ratings Services.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Aug 10 7:04 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.