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  • Coach: Undervalued And Growing Rapidly [View article]
    I'm quite happy about the gain too. Unfortunately Coach tends to be very volatile, and can drop down 4% another day. Let's hope earnings gives them a good boost.
    Jan 14, 2013. 10:46 AM | Likes Like |Link to Comment
  • Pitney Bowes: A Good Bet For 2013 [View article]
    They did buy back $100 mil in shares in Q4 of 2011. The problem is they won't be able to keep up with all these payments as net income decreases. Their cash supply has been halved since the end of 2011, and these upcoming dividend and debt payments provide no income left to put into the company. It will catch up to them soon, and they'll be forced to cut their dividend. Also, that $900 million of operating cash flow is mainly compiled of depreciation and asset impairment, $272 mil and $278 respectively. As time goes on, these assets will been to depreciate further and you will notice a large decrease in operating cash flow as these assets lose value. Depreciation has decreased over $100 million since 2007. Their dividend just isn't sustainable.
    Jan 13, 2013. 02:47 PM | 1 Like Like |Link to Comment
  • Pitney Bowes: A Good Bet For 2013 [View article]
    Here's the quote from the 10-K, "During the year, we entered into a series of settlements with the IRS in connection with its examinations of our tax years 2001-2008 under which we agreed upon both the tax treatment of a number of disputed issues, including issues related to our Capital Services business that was sold in 2006, and revised tax calculations. As a result of these settlements, we recognized tax benefits of $90 million in income from continuing operations and $264 million in discontinued operations. Our additional liability for tax and interest arising from the 2001-2008 IRS examinations was approximately $400 million, which was previously paid through the purchase of tax bonds."
    Jan 13, 2013. 11:43 AM | Likes Like |Link to Comment
  • Pitney Bowes: A Good Bet For 2013 [View article]
    The problem is that this year they received $264 million in a tax settlement from the IRS. Without that, they really had $351 million in income from continuing operations. Since they payed $318 million in dividends this year, their payout ratio should actually be 90% if they didn't receive that hefty sum from the IRS. Then if you throw in the $100 million they spent in buybacks, they'd be in the negatives. Supporting that large dividend is really going to hurt them when the business can use some serious improvements. Only being able to plowback 10% of earnings back into the company won't have any effect especially if it keeps buying back shares, and has to pay off debt. Their dividend and large debt-load is only delaying the inevitable. The stock could take a large hit once the company is forced to cut their dividend.
    Jan 13, 2013. 10:09 AM | 5 Likes Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    I sure hope so! It's hard to judge an investment on a monthly basis, but I believe Coach's stock price will increase over the upcoming years.
    Jan 11, 2013. 08:35 AM | Likes Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    It seems like it so far. Sales for the mens segment has doubled from $200 million last year, to $400 million this year.
    Jan 9, 2013. 02:32 PM | Likes Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    I believe it will also. Todays jump in retail certainly helped. I am interested into listening to their next earnings caall.
    Jan 8, 2013. 09:23 PM | Likes Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    I can see your concern with Coach. Although you may not fully believe in Coach's international prospects, I believe management's success over the years separates Coach from its competition. Their ability to keep the company growing, even through a recession makes me feel much more comfortable with my investment in the future. I appreciate your opinions though. Many users don't usually critique my investment thesis', so I appreciate your alternative view. I will do more research on Coach's factory outlets when get more free time.
    Jan 8, 2013. 07:40 PM | Likes Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    The mens line consists of primary items such as wallets or briefcases.
    Jan 8, 2013. 07:02 PM | Likes Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    Factory stores do not offer the same products as the traditional Coach retail outlets do. Here's a quote from the 10-K, "Coach's factory stores serve as an efficient means to sell manufactured-for-facto... product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach Factory name and are geographically positioned primarily in established outlet centers that are generally more than 30 miles from major markets". These factory stores tend to sell Coach products that have gone out of style, or are just lower quality pieces. As for square footage growth, factory outlets for any retailer are always going to be larger than the traditional retail store, which leads to square footage always being much larger. I believe it is more efficient to measure growth based off of the number of stores added. This year 57 retail stores were added around the world, compared to 26 factory outlets. As for factory customers, many retailers utilize factory outlets, including Michael Kors. It is just an effective way to sell outdated inventory. I don't believe these outlets will damage Coach's quality in anyway. The company even maintained its prices during the recent recession, while others put their products on discount. I believe Coach will do just fine.
    Jan 8, 2013. 11:23 AM | 1 Like Like |Link to Comment
  • Coach: Undervalued And Growing Rapidly [View article]
    Yes, I definitely agree. The company has grown very successfully over the past 71 years and has the right management in place to continue to do so.
    Jan 8, 2013. 11:08 AM | Likes Like |Link to Comment
  • Google's 1 Serious Problem [View article]
    Most likely a similar Pay-per-Click basis.
    Jan 4, 2013. 06:19 PM | Likes Like |Link to Comment
  • Google's 1 Serious Problem [View article]
    Yes, they are trying to slowly move over, but they haven't done very much yet with improving their third-party ad program. The ads may be more relevant, but that won't exactly stop the fraudulent clicks.
    Jan 4, 2013. 03:02 PM | Likes Like |Link to Comment
  • Google's 1 Serious Problem [View article]
    I've also heard of those ad blocking programs. I think it'll be very difficult for Google to counteract programs like that, especially with millions of internet users trying to find different ways to hide those ads. It'll only get more difficult as younger generations begin to get more tech-savvy.
    Jan 4, 2013. 01:02 PM | Likes Like |Link to Comment
  • Google's 1 Serious Problem [View article]
    Exactly! I believe Google's third-party advertising isn't a sustantial business model. More exposure doesn't guaruntee more sales!
    Jan 4, 2013. 12:55 PM | Likes Like |Link to Comment
COMMENTS STATS
70 Comments
38 Likes