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Sunday, June 05, 2011 8:43:02 AM
Reports 7th June TLB – Research / DD & Charts - Portfolio 2011 -- Presented By AugustaFriends
About TLB –
The Talbots Inc.
One Talbots Drive
Hingham, MA 02043
United States - Map
Phone: 781-749-7600
Website: http://www.talbots.com
Business Summary
The Talbots, Inc., together with its subsidiaries, operates as a specialty retailer and direct marketer of women?s apparel, accessories, and shoes in the United States and Canada. It offers classic sportswear, casual wear, dresses, coats, sweaters, accessories, and shoes in misses, petites, woman, and woman petite sizes. The company also markets its products online through its Web site, talbots.com, as well as through catalogs. As of January 30, 2010, it operated 580 stores under the Talbots brand name. The company was founded in 1947 and is headquartered in Hingham, Massachusetts.
Events & Presentations
http://TLB.client.shareholder.com/events.cfm
Is Talbots the Perfect Stock?
http://www.fool.com/investing/small-cap/2011/05/26/is-talbots-the-perfect-stock.aspx
Dan Caplinger
May 26, 2011
Every investor would love to stumble upon the perfect stock. But will you ever really find a stock that provides everything you could possibly want?
One thing's for sure: You'll never discover truly great investments unless you actively look for them. Let's discuss the ideal qualities of a perfect stock, then decide if Talbots (NYSE: TLB ) fits the bill.
The quest for perfection
Stocks that look great based on one factor may prove horrible elsewhere, making due diligence a crucial part of your investing research. The best stocks excel in many different areas, including these important factors:
• Growth. Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line.
• Margins. Higher sales mean nothing if a company can't produce profits from them. Strong margins ensure that company can turn revenue into profit.
• Balance sheet. At debt-laden companies, banks and bondholders compete with shareholders for management's attention. Companies with strong balance sheets don't have to worry about the distraction of debt.
• Money-making opportunities. Return on equity helps measure how well a company is finding opportunities to turn its resources into profitable business endeavors.
• Valuation. You can't afford to pay too much for even the best companies. By using normalized figures, you can see how a stock's simple earnings multiple fits into a longer-term context.
• Dividends. For tangible proof of profits, a check to shareholders every three months can't be beat. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.
With those factors in mind, let's take a closer look at Talbots.
Factor What We Want to See Actual Pass or Fail?
Growth 5-Year Annual Revenue Growth > 15% (7.7%) Fail
1-Year Revenue Growth > 12% (1.8%) Fail
Margins Gross Margin > 35% 37.7% Pass
Net Margin > 15% 0.9% Fail
Balance Sheet Debt to Equity < 50% 13.9% Pass
Current Ratio > 1.3 1.38 Pass
Opportunities Return on Equity > 15% NM NM
Valuation Normalized P/E < 20 12.13 Pass
Dividends Current Yield > 2% 0% Fail
5-Year Dividend Growth > 10% 0% Fail
Total Score 4 out of 9
Source: Capital IQ, a division of Standard and Poor's. NM = not meaningful; Talbots had negative average equity during the period. Total score = number of passes.
Talbots can only earn four points on our scale. The retailer has been trying to turn around for a long time, but so far, it's still mired in the doldrums.
Talbots was once a highly profitable retailer catering to older female shoppers. Unfortunately, that space is incredibly crowded now, with competitors that include Chico's (NYSE: CHS ) , Coldwater Creek (Nasdaq: CWTR ) , and ANN (NYSE: ANN ) . All of those retailers have seen tough times, but none of them has seen worse revenue contraction over the past five years than Talbots.
Meanwhile, Talbots has tried to revamp its "frumpy" image for years. But first, the financial crisis made things difficult for retailers of all types. And even after the stock market recovered, Baby Boomers are still struggling with a new economic reality that doesn't support high-end purchases that were once Talbots' bread and butter.
All those headwinds left Talbots with losses, crashing same-store sales, and the prospects of further store closures and downsizing ahead. Combined with concerns over rich executive compensation, the future for Talbots doesn't look good for investors.
Even at a relatively low normalized earnings multiple, Talbots isn't a perfect stock. Until the company can actually make progress with a reasonable turnaround strategy, you should be skeptical of its future prospects.
Keep searching
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you'll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.
The Talbots Inc. (TLB): Apparel Stores Industry. Market cap of $384.51M. Short float at 29.17%. TTM levered free cash flow at 60.81M, which represents about 15.81% of the company's market cap. On a net basis, institutional investors bought 101.1K shares during the current quarter and 1.8M shares during the previous quarter. It's been a rough couple of days for the stock, losing 9.09% over the last week.
Talbots is a struggling retailer with what some believe is an overpaid CEO. The chain is in the middle of a makeover that will update its concept while shuttering dozens of stores. This isn't an excuse, though. Retailers should be holding up better.
Recent Developments As of 4 June 2011
The Talbots, Inc. to Broadcast First Quarter 2011 Earnings Results Conference Call on the Web
HINGHAM, Mass.--(BUSINESS WIRE)-- The Talbots, Inc. (NYSE:TLB - News) invites investors to listen to a broadcast of the Company’s conference call to discuss first quarter 2011 earnings results. The conference call will be broadcast live on Tuesday, June 7, 2011 at 10:00 a.m. Eastern Time at www.thetalbotsinc.com/ir/ir.asp. In order to participate in the conference call, please dial 866-336-2423 approximately 10 minutes prior to the scheduled time and give the passcode "TLB". The conference call, which will last approximately one hour, will be archived online shortly after its completion and will be available for a period of twelve months. Participating in the call will be Trudy Sullivan, President and Chief Executive Officer, and other members of the senior management team.
The Talbots, Inc. is a leading specialty retailer and direct marketer of women's apparel, shoes and accessories. At the end of the first quarter 2011, Talbots operated 568 Talbots stores in 46 states, the District of Columbia, and Canada. Talbots brand on-line shopping site is located at www.talbots.com
Other significant events
About TLB –
The Talbots Inc.
One Talbots Drive
Hingham, MA 02043
United States - Map
Phone: 781-749-7600
Website: http://www.talbots.com
Business Summary
The Talbots, Inc., together with its subsidiaries, operates as a specialty retailer and direct marketer of women?s apparel, accessories, and shoes in the United States and Canada. It offers classic sportswear, casual wear, dresses, coats, sweaters, accessories, and shoes in misses, petites, woman, and woman petite sizes. The company also markets its products online through its Web site, talbots.com, as well as through catalogs. As of January 30, 2010, it operated 580 stores under the Talbots brand name. The company was founded in 1947 and is headquartered in Hingham, Massachusetts.
Events & Presentations
http://TLB.client.shareholder.com/events.cfm
Is Talbots the Perfect Stock?
http://www.fool.com/investing/small-cap/2011/05/26/is-talbots-the-perfect-stock.aspx
Dan Caplinger
May 26, 2011
Every investor would love to stumble upon the perfect stock. But will you ever really find a stock that provides everything you could possibly want?
One thing's for sure: You'll never discover truly great investments unless you actively look for them. Let's discuss the ideal qualities of a perfect stock, then decide if Talbots (NYSE: TLB ) fits the bill.
The quest for perfection
Stocks that look great based on one factor may prove horrible elsewhere, making due diligence a crucial part of your investing research. The best stocks excel in many different areas, including these important factors:
• Growth. Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line.
• Margins. Higher sales mean nothing if a company can't produce profits from them. Strong margins ensure that company can turn revenue into profit.
• Balance sheet. At debt-laden companies, banks and bondholders compete with shareholders for management's attention. Companies with strong balance sheets don't have to worry about the distraction of debt.
• Money-making opportunities. Return on equity helps measure how well a company is finding opportunities to turn its resources into profitable business endeavors.
• Valuation. You can't afford to pay too much for even the best companies. By using normalized figures, you can see how a stock's simple earnings multiple fits into a longer-term context.
• Dividends. For tangible proof of profits, a check to shareholders every three months can't be beat. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.
With those factors in mind, let's take a closer look at Talbots.
Factor What We Want to See Actual Pass or Fail?
Growth 5-Year Annual Revenue Growth > 15% (7.7%) Fail
1-Year Revenue Growth > 12% (1.8%) Fail
Margins Gross Margin > 35% 37.7% Pass
Net Margin > 15% 0.9% Fail
Balance Sheet Debt to Equity < 50% 13.9% Pass
Current Ratio > 1.3 1.38 Pass
Opportunities Return on Equity > 15% NM NM
Valuation Normalized P/E < 20 12.13 Pass
Dividends Current Yield > 2% 0% Fail
5-Year Dividend Growth > 10% 0% Fail
Total Score 4 out of 9
Source: Capital IQ, a division of Standard and Poor's. NM = not meaningful; Talbots had negative average equity during the period. Total score = number of passes.
Talbots can only earn four points on our scale. The retailer has been trying to turn around for a long time, but so far, it's still mired in the doldrums.
Talbots was once a highly profitable retailer catering to older female shoppers. Unfortunately, that space is incredibly crowded now, with competitors that include Chico's (NYSE: CHS ) , Coldwater Creek (Nasdaq: CWTR ) , and ANN (NYSE: ANN ) . All of those retailers have seen tough times, but none of them has seen worse revenue contraction over the past five years than Talbots.
Meanwhile, Talbots has tried to revamp its "frumpy" image for years. But first, the financial crisis made things difficult for retailers of all types. And even after the stock market recovered, Baby Boomers are still struggling with a new economic reality that doesn't support high-end purchases that were once Talbots' bread and butter.
All those headwinds left Talbots with losses, crashing same-store sales, and the prospects of further store closures and downsizing ahead. Combined with concerns over rich executive compensation, the future for Talbots doesn't look good for investors.
Even at a relatively low normalized earnings multiple, Talbots isn't a perfect stock. Until the company can actually make progress with a reasonable turnaround strategy, you should be skeptical of its future prospects.
Keep searching
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you'll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.
The Talbots Inc. (TLB): Apparel Stores Industry. Market cap of $384.51M. Short float at 29.17%. TTM levered free cash flow at 60.81M, which represents about 15.81% of the company's market cap. On a net basis, institutional investors bought 101.1K shares during the current quarter and 1.8M shares during the previous quarter. It's been a rough couple of days for the stock, losing 9.09% over the last week.
Talbots is a struggling retailer with what some believe is an overpaid CEO. The chain is in the middle of a makeover that will update its concept while shuttering dozens of stores. This isn't an excuse, though. Retailers should be holding up better.
Recent Developments As of 4 June 2011
The Talbots, Inc. to Broadcast First Quarter 2011 Earnings Results Conference Call on the Web
HINGHAM, Mass.--(BUSINESS WIRE)-- The Talbots, Inc. (NYSE:TLB - News) invites investors to listen to a broadcast of the Company’s conference call to discuss first quarter 2011 earnings results. The conference call will be broadcast live on Tuesday, June 7, 2011 at 10:00 a.m. Eastern Time at www.thetalbotsinc.com/ir/ir.asp. In order to participate in the conference call, please dial 866-336-2423 approximately 10 minutes prior to the scheduled time and give the passcode "TLB". The conference call, which will last approximately one hour, will be archived online shortly after its completion and will be available for a period of twelve months. Participating in the call will be Trudy Sullivan, President and Chief Executive Officer, and other members of the senior management team.
The Talbots, Inc. is a leading specialty retailer and direct marketer of women's apparel, shoes and accessories. At the end of the first quarter 2011, Talbots operated 568 Talbots stores in 46 states, the District of Columbia, and Canada. Talbots brand on-line shopping site is located at www.talbots.com
Other significant events
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