Free Trial!
Today’s Best Stocks To Trade! Click Here
Zale Corporation is a specialty retailer of fine jewelry. Zale experienced a comfortable increase this Thursday, as shares rose to a high of $18.04 or 7.83% on volume of over 1.2 million an hour prior to the closing of the session.
Thursday February 07, 2008 Zale Corporation reported that for the second quarter ended January 31, 2008, comparable store sales decreased 7.3%. Revenues for the second quarter were $827 million compared to $892 million last year, a decrease of 7.3%. As previously announced, the sale of Bailey Banks & Biddle was completed on November 9, 2007 and has been excluded from the results for both the current and comparable periods.
The Company commented that while it had a 5.7% January comparable store sales increase, approximately 3 percentage points were related to the timing of a Valentine's Day customer appreciation event.
Yesterday we had a conversation with Brian Sozzi of Wall Street Strategies, to ask his professional opinion on Zale Corporation (NYSE:ZLC). We have included our a summary of the conversation below, but do suggest that investors looking to receive research on ZLC sign up for free to BellwetherReport.com for more information as it becomes available. Also members looking to receive a free custom stock review on any company they currently hold in their portfolio are welcome to sign up and submit their query in the members section of www.bellwetherreport.com under the tab "request a stock review".
This conversation was conducted on February 6th 2008.
Q: What is your professional opinion on the retail sector?
A: Tiffany & Co. essentially cast a dark cloud over shares of high-end retailers upon the release of its holiday sales results last month. The company, once thought of as resilient to broader trends in consumer spending given its more affluent base of customers, undoubtedly had the type of holiday performance that went a long way to dispel such a notion. The largest area of concern to the report was the 2.0% decrease in U.S. comparable store sales (or comps, which are sales from stores open in excess of a year), caused primarily by fewer customer transactions..
Q: How would you position Zale within this sector?
A: As for Zale, its had a horrific holiday quarter due to a mix of factors, such as poor execution at mall-based store locations and prevalent economic conditions. The company's comps declined a worrisome 9.0% during the second fiscal quarter, causing a material earnings warning. Although Zale has been a story of a retailer not living up to its potential in the marketplace, we are intrigued by private equity fund Breeden Capital Management amassing an 18.1% stake in the jeweler, with aggressive goals to enhance operating margins.
Q: Based on this, what would you tell investors looking to position themselves in this stock?
A: Considering the stock is currently trading at a 20.0% discount to book value, strategies being designed to deliver more optimal financial performance, and the involvement of Breeden Capital Management, we are inclined to recommend the stock as a buy.
For a free custom Stock Review on ZLC or for any other security in your portfolio sign up to www.bellwetherreport.com and in the members' area click "custom stock review".
The Bellwether Report will continue scanning the markets for true emerging growth opportunities that will show subscribers optimal entry points with profitable exit points. If you are interested in receiving more information on feel free to sign up for a 3 month complimentary subscription to the #1 online investment resource www.bellwetherreport.com.
All material herein was prepared by the Bellwetherreport.com, (Bellwether) based upon information believed to be reliable. The information contained herein is not guaranteed by Bellwether to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Bellwether is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. Bellwether may receive compensation in cash or shares from independent third parties or from the companies mentioned.
Delivery, and or timely delivery of Internet mail is not guaranteed. Wall Street Strategies therefore recommends that you do not rely on email as your sole method of communication with us. Wall Street Strategies recommends using a POP3 or IMAP email account with an email client such as Microsoft Outlook or Eudora. Free web-based email accounts are not advised as they are subject to quotas, filters and frequent delays.Disclaimer: All investment entails inherent risk. Wall Street Strategies' research seeks to assist investors in determining when to buy and when to sell to attempt to maximize profits or minimize losses. All final investment decisions are yours and as a result you could make or lose money. Wall Street Strategies, its employees and/or its affiliates and family members may from time to time take positions in the open market or otherwise with respect to the securities discussed. Wall Street Strategies, its employees and/or affiliates do not have stock ownership equal to or greater than 1% of the outstanding stock of the covered company nor does any employee of Wall Street Strategies sit on the Board of Directors of any covered company. Wall Street Strategies is not a broker/dealer, and the firm does not underwrite securities, manage assets or perform investment banking activities. The statements made herein include information obtained from sources believed to be reliable, but no independent verification has been made and we do not guarantee its accuracy or completeness. The statements made herein contain general information and do not constitute an offer to buy or sell any security.
Bellwether's affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value.
Bellwether will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission.
CONTACT: Bellwether WWW: http://Bellwetherreport.com
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
