Tag Archives: Retailers

This is the fastest rate of building-permit authorizations recorded since 2007 and Lowe`s love it

Lowe`s Companies will report earnings before the market opens on Wednesday 20, and the consensus EPS forecast for the quarter is $1,35. That`s much better than last years $1,04 at the same time.

EPS at $1,35 will be a jump of +29,8 percent YoY, and revenue is estimated to be $17,69 billion. Lowe`s are joining Trump`s economic boom in the market and have so far jumped 25 percent in 2019. I think they can feel the boost of the Fed`s interest rate cuts.

Builders started construction on new homes at a pace of 1,314 million in October, the Commerce Department reproted Tuesday. Housing starts were up 3,8 percent from revised 1,266 million in

September and 8,5 percent higher than the same month last year.

Building permits for privately-owning housing units were authorized at a seasonally-adjusted rate of 1,461 million, and that was 5 percent above the revised pace of 1,391 million set in September, and 14 percent above last year`s rate.

This was the fastest rate of building-permit authorizations recorded since 2007. Permits for new-home construction hits post-recession record high in October.

Home Depot dropped yesterday after the company cut full-year sales growth guidance. They reported $2,53 in EPS. Wall Street predicted $2,52, but the results are looking fine. Comparable store sales growth in 2019 will be 3,5 percent compared with pror guidance of 4 pecent, the management of Home Depot said.

Lowe`s dropped 1,42 percent yesterday while Home Depot dropped 5,46 percent. Lowe was dragged down by Home Depot. Will Lowe turn that around on Wednesday? Lowe`s has a call scheduled for 9 a.m ET on Wednesday.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Target Corporation are modernizing the overall design of stores

I`m watching the retailer market closely and Target is one of them along with Walmart. Target Corporation is the eitht-largest retailer in the U.S, and they operates 1,851 stores throughout the U.S.

Their retail formats include the discount store Target, the hypermarket Super Target, and «small-format» stores previously named City Target and TargetExpress before being under the Taget branding.

Target is often recognized for its emphasis on «the needs of its younger, image-conscious shoppers», whereas its rival Walmart more heavily relies on its strategy of «always low prices». The company is expected to report earnings on Wednesday 21, before market open.

The report will be for the fiscal Quarter ending July this year, and the consensus EPS forecast for the quarter is $1,62. The same quarter last year was $1,47. The consensus revenue estimate is $18,32 Billion and that`s up +4,4 percent YoY.

Target has a strong first quarter performance and digital sales will continue to help the top line. We saw Walmart had a very impressive second quarter numbers. Can Target match Walmart in the retail business? If they can follow its 1Q19 results that was robust, we will see growth in digital sales.

They do it well with their «same-day pickup», curbside service and Shipt. Retailers like Target and Walmart also have another story to tell when it comes to foot traffic than many of the trendy fitness retailers.

Target spend a lot of money to improve its stores. Will this continue? Probably, because they has remodeled «only» 400 stores so far in the last two years. They are planning to remodel an additional 600 stores over the next two years.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Home Depot is a quality stock and beats earnings time after time

Home Depot is expected to report earnings on Tuesday 20, before market open, and the report will be for the fiscal Quarter ending in July this year. The consensus EPS for the quarter is $3,08 and that`s a little bit higher than last year at the same at $3,05. The consensus revenue estimate is $31,01 Billion and that`s up 1,8 percent YoY.

This is a high quality stock and the rise from the financial crisis has been massiv. Home Depot has beaten EPS estimates 100 percent of the time over the last two years. Revenue estimates is beaten 75 percent of the time.

This is the holiday quarter for Home Depot. A different retailer than others that are struggling with e-commerce and malls. Do we see any recession here? Not at all. The consumers spend money at Home Depot and they can afford to do it because they have jobs and money. That puts the company in the same folder as Walmart.

Home Depot scheduled a conference call at 9 a.m Eastern time on Tuesday 20, 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The retail apocalypse will continue

Walgreens announced yesterday that they will close 200 US stores. A company that was founded 118 years ago. But Walgreens is not alone. About 12,000 stores are expected to close in the U.S this year.

According to CoStar Group, retailers closed a record 102 million square feet of store space in 2017, but that number was smached in 2018 by closing another 155 million square feet. To sum up; that`s thousands of stores.

So far this year, 29% more stores closings announced than last year, according to Coresight Research. They tracked the 5,864 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations.

This year, Sears are planning to close another 21 stores while Kmart will close «only» 5 stores in October. Kmart closed 48 stores earlier this year. That`s nothing compared to Walgreens’ 200 stores. Or Fred`s 442 with another 129 stores.

We have to keep in mind that some of the retailers also are opening new stores while closing locations at the same time. But……

The pain will continue for years to come. According to UBS, if the e-commerce penetration continue to rise up from its 16% level to 25%, about 75,000 stores need to be shuttered within a few years.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The public cloud market is expected to reach $411 Billion by 2020 and one of the fastest growing cloud provider in the world is Alibaba

Alibaba Group Holding Limited has declined since March this year after recent trade war fears. It`s not fair if you look at the numbers. The company boasted a five-year CAGR of over 40 percent, and their revenue is primarily driven by core e-commerce.

Alibaba`s Market cap is $464,72 Billion, and that valuation is good if you look at their potential for growth like cloud computing which is growing fast. They are also expanding in the Indian market with good help from Softbank.

Softbank has already acquired many important startup companies in India, and India will be one of the most important markets for Alibaba in the future. Alibaba and their ally Softbank will therefore build its business on companies that is already operating in the Indian market instead of doing it all from scratch.

The online retail market in India is growing fast and Alibaba can grow in this sector despite the fact that they are late into the market. Alibaba led a funding round of $300 million in online grocer Big Basket at a valuation of $950 million.

But they have competitors. Amazon will invest over $5 Billion in Amazon India, and Valmart wants to buy about 80 percent stake in Flipkart. Valmart is willing to pay about $12 Billion. Alibaba will also earn from Softbank`s investment in rival online grocer Grofers.

Alibaba`s core commerce segment comprises marketplaces operating in retail and wholesale commerce in China, and international commerce. The Cloud computing segment, which comprises Alibaba Cloud offering a complete suite of cloud services, is in top gear.

Cloud computing is good for Alibaba as more and more businesses are shifting their servers and broadband subscriptions to cloud computing technology in order to streamline costs.

The public cloud market is expected to reach $411 Billion by 2020, and Alibaba with its ongoing initiatives is well posed to grab the growth opportunity. I have a good reason to belive that cloud computing will be one of Alibaba`s major growth drivers in the future.

Alibaba has expanded overseas to Singapore, Malaysia, Indonesia, Frankfurt, London, Paris, New York, San Mateo, Dubai, Seoul, Tokyo and Sydney. So far, they have more than 2,3 million customers worldwide.

In the last report, cloud computing segment increased 104 percent to US$553 million, and revenues from its core commerce segment were up 57 percent YoY to US$11,3 Billion.

Alibaba is probably the most shorted stock in the world in recent weeks after trade war fears, but their opportunity for further growth will probably exceed investors expectations. If so, Alibaba`s shares can easily jump to next target; $200.

Alibaba Group Holding Limited is expected to report earnings on May 4 before market open. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $0,7 which is well below earnings for the same quarter last year of $0,39. Last quarter, Alibaba delivered a negative earnings surprise of 1,21 percent.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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