Monday, February 7, 2011

US top 3 mobile provider.(NYSE:S)

Sprint Nextel Corporation offers wireless and wireline communications products and services to consumers, businesses, and government users in the United States, Puerto Rico, and the U.S. Virgin Islands.
Wireless segment
-provides wireless mobile voice and data transmission services on networks that utilize CDMA and iDEN technologies,as well as offers fourth generation wireless services
Wireless data communications services -comprise Internet access and messaging, email services, wireless photo and video offerings, and mobile entertainment applications, as well as asset and fleet management, dispatch services, and navigation tools; and wireless voice communications services include basic local and long distance wireless voice services, voicemail, call waiting, three way calling, caller identification, directory assistance, call forwarding, speakerphone, and push-to-talk services, as well as roaming services.
This segment sells accessories, such as carrying cases, hands-free devices, batteries, and battery chargers, as well as devices and accessories to agents and other third-party distributors for resale. In addition, it markets its post-paid services under the Sprint and Nextel names; prepaid services under the Boost Mobile, Virgin Mobile, and Assurance Wireless names.
Wireline segment
-provides wireline voice and data communications services, including domestic and international data communications using various protocols, such as multiprotocol label switching technologies, Internet protocol (IP), asynchronous transfer mode, IP-based frame relay, managed network services, voice over IP, and traditional voice services. It also offers wide-area network and long distance services, as well as operates an all-digital long distance and Tier 1 IP network.

Sprint Nextel was founded in 1899 and is headquartered in Overland Park, Kansas.
The Overland Park, Kan.-based company has struggled since acquiring Nextel Communications Inc. in 2005 as technical problems, poor efforts to consolidate the two companies and stiff competition for feature-rich phones has led many subscribers to switch to competing services.

Annual Balance Sheet data @31 December 2009.
Total Assets =$55,424,000
Total Liabilities =$37,329,000
Total Stockholder equity=$18,095,000.###
###Common Stock=$6,015,000+Retained Earnings=($33,779,000)+Treasury Stock($582,000)+Capital Surplus=$46,793,000+Other stock equity=($352,000)
Net Tangible Assets=($5,367,000)

Cash Flow:-$128,000

Nett Income Accrual=($2,436,000)

Major shareholders @30 September 2010:-
1) DODGE & COX INC==225,816,518==7.65%
2) Bank of New York Mellon Corporation==191,169,698==6.48%
3) VANGUARD GROUP, INC. (THE)==108,484,047==3.675%
4) STATE STREET CORPORATION==106,319,743==3.60%
5) GOLDMAN SACHS GROUP INC==97,682,150==3.31%
6) JP MORGAN CHASE & COMPANY==91,560,088==3.10%
7) BlackRock Institutional Trust Company, N.A.==76,228,606==2.58%
8) FRANKLIN RESOURCES, INC==72,208,465==2.45%
10) PRICE (T.ROWE) ASSOCIATES INC==70,031,700==2.37%
11) FMR LLC==411,626,857==13.94%
Top Mutual Funds Holdrs:-
1) DODGE & COX STOCK FUND==$131,825,739==4.47%
2) Fidelity Series Large Cap Value Fund==56,547,510==1.92
3) FIDELITY OTC PORTFOLIO==52,041,756==1.76
4)FIDELITY CAPITAL APPRECIATION FUND==46,397,699==1.57
5) DODGE & COX BALANCED FUND==37,874,100==1.28
6) TEMPLETON GROWTH FUND, INC.==31,856,370==1.08
7) VANGUARD TOTAL STOCK MARKET INDEX FUND==31,838,593==1.08
8) FIDELITY MAGELLAN FUND INC==28,000,000==0.95
9) VANGUARD 500 INDEX FUND==27,122,144==0.92
10) SPDR S&P 500 ETF Trust==22,517,066==0.76
Company activity:-
Lately it plans to sell a Kyocera Corp phone with two screens and Google Inc's software, in an effort stand out in a crowded U.S. smartphone field where Apple Inc gets much of the consumer attention.
Sprint Nextel Corporation.(NYSE:S)-Technology
A good speculative counter wherein one must flex his/her muscle with those giant famous name speculators.
Currently it seems that there are profit taking activities within the range of January's candlestick body.
It has completed covering the January's full body and closes at half the January's body yesterday.
The upper shadow has yet to be played again but meantime caution is the game as it's a bearish spin eyeing on the MAV support line.Anything below MAV support line level is a good entry point.
Yesterday High:$4.49 Low:$4.35 Closing:$4.40 Turnover:5,3828,148 shares.
Tracking the Dow,Monday,7/2/11.The Dow is 9 market days to index futures/options expiry.
9:30am:--Bullish 30 points gap up.The 12,000 mark psycological level has brought back investors confidence.
10:30am:--Session high.No sign of any pullback to fill up opening gap.Egypt tension has been reduced.
11:30am:--Morning session high,bearish engulfing.News of mergers and acquisitions indicated attractive stock valuations.
12:30noon:--Pullback to bull pivot support level.Struggling U.S. Internet company AOL
has agreed to buy The Huffington Post for $315 million.
1:30pm:--Another hit at the bull pivot spport,bears rampaging.The price of copper hit a record on concerns about supply and as economic data recently boosted the outlook for demand.
2:30pm:--Bull pivot support breached.News that computer hackers had infiltrated the operator of the Nasdaq Stock Exchange could be another blow to investor confidence, as Wall Street works to repair an image with investors and traders dented by last year's "flash crash."
3:30pm:--Bears held back slightly above MAV support line.Dragonfly doji helping a rebound.
4:00pm:--Bearish profit taking.A spike in oil prices might become a headwind for the global economy and hurt equity markets.
Index is poised for a pullback as Friday's bullish hammer is an early sign.If not for the ongoing Merger and Acqusition news,the market will be drifting within a tight zone.The bull pivot support line will be the level of a correction.
In a sign of a more stable debt market in Europe, demand for Portugal's five-year syndicated bond is around 6 billion euros, double the minimum placement announced earlier, Treasury Secretary Carlos Pina said on Monday.

Friday, February 4, 2011

Calvin Klein by Warnaco Group Inc.(NYSE:WRC)

The famous Calvin Klein garment apparel is one of America's and also the world's most premier leading designer brands.It is considered the heritage business of the Warnaco Group Inc which is also public listed in the New York Stock Exchange having its corporate office in Delaware,New York.
Calvin Klein Underwear remains the dorminant glocal designer underwear brand.In the women's section is the bra category.
The Jeans portfolio is the largest revenue earner of the group with the latest international marketing campaign featuring Eva Mendez and Jamie Doman through the introduction of the "body" jean,a dual gender launch with a body-enhancing fit.
The company's international expansion included strong growth from Latin America and Asia.It is constantly optimizing existing markets and directly assuming control over other geographies.In 2009,new direct markets include Peru and Chile while in full control of the Brazillian business.
In Europe the emphasis was on developing the underpenetrated countries with particular focus on Germany where 4 new stores were opened.There is al ong term goal of developing a Direct-to-consumers business which accounted for 30% of the company's revenue.
The revenue for CHAPS,CORE INTIMATES & SPEEDO being their heritage business have constant growth.With good marketing and infrastructure support,the company's vision for a sustainable long-term growth is achievable judging from their solid balance sheet strength affording the company with financial flexibility.
The Warnaco Group also fulfil its role as a good global corporate citizen where it has contributed various kind of support both domestically and internationally to communities and organizations.
It's a mission of giving back to communities where we live and work.
The company operates in 3 business groups(segments) and their 2009 fiscal year revenue as follows:-
1) Sportswear group-----$1,091,165(54.0%)
2) Intimate Apparel Group-----$677,315(33.6%)
3) Swimwear Group-----$251,145(12.4%)
The Sportswear Group designs,sources and markets premium priced men's and women's jeanswear,sportswear and accessories.(Calvin Klein & Chaps)
The Intimate Apparel Group designs,sources and markets upper moderate to premium priced intimate apparel and other products for womenand better to premium priced men's underwear and lounge wear.(Warnes,Olga Christina,Body Nancy,Ganz Body Slimmers)
The Swimwear Group sub-licenses the"Speedo" label to suppliers of apparel.
The worlwide apparel industry is heavily influenced by the following economic conditions:-
1) Foreign currency exposures.
2) Changing fashion trends and consumer preferences.
3) Pricing pressures and trade quotas.
4) Competing with domestic and international brands.
5) Increase in prices of raw materials and transportation costs.
6) Shortage of supply sources and interruptions to production facilities owned by third party contractors.
7) Failure of suppliers and contractors to adhere to quality and production standards.
8) Depend on a limited number of customers for a significant portion of sales.
9) Trademark protections and intellectual propert rights.
10) Reputations of licensed own brand.
11) Local laws and tax liabilities.
12) Changing international trade regulations.
Stock Equity News:-
As at February 22,2010,there was 14,195 holders of common stock.
In May 2007,the company's Board of Directors authorized a share repurchase program for the repurchase of up to 3,000,000 shares of common stock up to a period of 4 years.This program may be modified or terminated at any time.At January 2,2010,there were still outstanding 1,490,131 shares remaining for repurchase under the 2007 Share Repurchase Program.
Repurchase stocks held in treasury:-
October 4 -October 31,2009------429 shares @$42.17
November 1-November 28,2009-----596 shares @$42.18
November 29,1009 --2January 2010-----625 @$43.19
On May12,2010,a new repurchase program was reinstated replacing all the old ones.This time a multi-year 5 million repurchase program,only 11.3% of company's outstanding stock.
At 2 January 2010,the Company has cash and cash equivalent of $320.8million versus debt of $210.7million.
Diluted earnings per share from continuing operations as per adjusted:-$2.82
As at 2 January and 3 January 2009,the company recorded $90.0million and $87.4million,respectively,of accounts receivable reserves.
Weighted average number of shares used incomputing income per share==Basic:45,433,874
Diluted:46,196,397
The Major Institutional Holders as @ 30th sep 2010 are:-
1) VANGUARD GROUP, INC. (THE)--2,265,386---5.09%
2) EPOCH INVESTMENT PARTNERS, INC.---1,595,846---3.59%
3) STATE STREET CORPORATION---1,535,222---3.45%
4) BlackRock Fund Advisors---1,428,878---3.21%
5) Bank of New York Mellon Corporation---1,363,104---3.06%
6) BlackRock Institutional Trust Company, N.A.---1,233,166---2.77%
7) BUCKINGHAM CAPITAL MANAGEMENT---1,227,078---2.76%
8) INVESTEC ASSET MANAGEMENT LTD---1,093,347---2.46%
9) Perkins Investment Management, LLC---1,080,566---2.43%
10) FMR LLC---4,933,524---%11.09
Warnaco stocks in the Consumer sector have been very volatile with big swings for the last 3 months.The annual fiscal year is 31st December.
Investing Opinion Views:-
January being the start of a new quarter has a big bearish spinning doji engulfing the earlier year end candle stars.
February started with a clean near unshaven lower open near the lower shadows of all previous candlestick.This augurs well for the stock.As at 4/2/11,the closing price is $55.96 with a turnover of 1,435,475 shares.The bulls are in control this month. The stock has good prospect of covering up all three previous months upper shadow thereby forming a breakout as the 1Q financial reporting begins to appear.This is further aided by the outstanding repurchase program the company is undertaking which is intended to enhance the stock value of fellow investors.Despite the price spike up last Friday,the stock is still worth buying now as it has already penetrated the 52 weeks bull pivot resistance line.It will be finding a new level high.
Tracking the Dow Friday,04/02/11.
9:30am:--Bullish 20 points spike up.The unemployment rate fell to 9 percent from 9.4 percent.
10:30am:--Session double top.Only 36,000 jobs were added to nonfarm payrolls in January, up from a 103,000 gain in December.
11:30am:--After pulling back to find a morning low,index is retracing to the session MAV resistance line.
12:30noon:--The consolidation hour saw the index hoovering near the MAV resistance for the second time.
1:30pm:--A breakout from the resistance line.Tech stocks are taking the leadership.
2:30pm:--Intermittent pullback to bull pivot support.No Federal news so players are bringing it higher.
3:30pm:--A new session high.The latest job report is encouraging the Fed to flush the market with liquidity.
4:00pm:--Closing near the high of the day.Bullish doji star.
A week of bullish run-up inching higher and higher.The ascending flag channel.
Investors focused on strong corporate results and the upshot of a largely disappointing monthly jobs report.
The Fed's quantitative easing is giving a boon to the stock market.