Tag Archives: Motley Fool

Malibu Boats gets some love from Motley Fool

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Following its successful IPO a few weeks ago, Loudon-based Malibu Boats is getting some love from a Motley Fool writer.
The maker of performance sports boats is in better shape than its competitors and positioned to take advantage of an improving market for power boats, Motley Fool writer Mark Lin says.
Here’s an excerpt from Lin’s Fool report:
“Malibu Boats is the outright market leader in performance sport boats and has seen its market share in the category increase from 23.9% to 32.9% over the past five years. Even more noteworthy is the fact that almost all of its major competitors lost market share during the period, suggesting that Malibu Boats hasn’t just ridden along on industry growth but has gained a real edge over competition.”
Competitors Mastercraft and Brunswick, maker of Sea Ray Boats, which have manufacturing plants in Vonore, Tenn., can’t like that assessment.
Malibu, which completed its IPO on Feb. 5, reported a gross profit of $11.7 million on sales of $43.9 million in the quarter ended Dec. 31.
Click here for the Motley Fool report.

87-year-old’s Ruby Tuesday review goes viral

Ruby Tuesday

Ruby Tuesday

You can’t put a price tag on millions of folks reading a positive story about your business.
Maryville-based  restaurant chain Ruby Tuesday recently was the beneficiary of just such a publicity bonanza a review by  a review by 87-year-old restaurant critic Marilyn Hagerty went viral
Hagerty, a columnist for the Grand Forks (N.D.) Herald liked her local Ruby Tuesday, in particular the salad bar and cloth-like napkins.
Bloggers, websites and other digital outlets went crazy. The viral explosion landed Hagerty an interview on NBC’s Today Show where she told Lester Holt she just didn’t get why her reviews went viral.
This wasn’t Hagerty’s first brush with viral fame. A couple of years ago her review of the local Olive Garden sparked a similar viral outburst.
Given its recent financial troubles, Ruby Tuesday should be thankful for the Hagerty generated publicity.
In its most recent financial report, Ruby Tuesday reported a quarterly net loss $34.4 million, or 57 cents per share, and said it would close 30 underperforming locations.
Olive Garden reportedly got a much-needed boost from the Hagerty review and subsequent viral publicity. Not everyone sees the same thing happening for Ruby Tuesday.
A Motley Fool writer said any boost will be short-lived.
“However, it’s not likely that this brave and crafty senior citizen will have any long-term impact on Ruby Tuesday.”
That’s too bad. Ruby Tuesday could use all the help it can get.
Click here for Hagerty’s Ruby Tuesday review
Click here for the Motley Fool analysis.
Click here for Hagerty’s Today Show interview

Will 3Q be another revenue record-breaker for Regal?

EARNS+REGAL+ENTERTAINMENT

Movie theater operator Regal Entertainment Group reported record high fiscal second quarter revenues, but a slight decrease in profits. Next week, investors will find out if the trend continued in the third quarter.
The Knoxville-based company said it will post its quarterly financial report after the market closes on Oct. 24. A conference call with analysts will be held at 4:30 p.m. following release of the report.
Given a strong box office in recent months, Regal likely will report a good, if not record-breaking revenues, for the fiscal third quarter.
But what can shareholders expect in the long-run? Since the first of the year, Regal’s shares have gained more than 38 percent. Will that kind of growth continue?
Chatter from stock watchers on the Web is generally positive.
Here’s an excerpt from a Motley Fool report:
“Regal Entertainment delivered a lot of impressive numbers in Fiscal 2013, including a 3.6% increase in attendance and a 0.3% bump in average ticket price. However, comp screen attendance dropped 2.4%. The improved attendance occurred because of the company’s recent acquisitions, instead of repeat moviegoers. This likely indicates that fewer people are going to the movies than in the past, which would make Regal Entertainment’s potential to grow the top and bottom lines simultaneously very challenging. That being said, shareholders should take heart as Regal Entertainment is willing to close under-performing theaters — it closed six theaters (52 screens) in Fiscal 2013.”
A Seeking Alpha contributor is even more bullish on Regal:
“While shares of Regal Entertainment have rallied nicely from here, I believe the bull run is far from over. The movie-going business has proven to be extremely resilient, virtually immune from home watching with annual sales growth of 3%. At the same time, Regal has recognized that increased concession sales are far more lucrative than increased ticket sales and has focused its business appropriately through expanded menus and a pilot dine-at-your-seat program. These factors will help RGC grow faster than the industry while improving overall margins.”
Regal is the largest movie theater operator in the country with more than 7,300 screens in 575 theaters nationwide and Guam, Saipan, American Samoa.
Click here for the Motley Fool analysis.
Click here for the Seeking Alpha report.

Aluminum maker Alcoa battered by tough week

Alcoa Inc. Location Manager Ken McMillen, left, Sen. Lamar Alexander, Alcoa CEO Klaus Kleinfeld, U.S. Rep. John J. Duncan Jr., and Gov. Bill Haslam arrive for a groundbreaking for a $275 million expansion of the Alcoa Inc. rolling mill to produce automotive sheet aluminum on Thursday, Aug. 29, 2013, in Alcoa.  (Paul Efird/News Sentinel)

Alcoa Inc. Location Manager Ken McMillen, left, Sen. Lamar Alexander, Alcoa CEO Klaus Kleinfeld, U.S. Rep. John J. Duncan Jr., and Gov. Bill Haslam arrive for a groundbreaking for a $275 million expansion of the Alcoa Inc. rolling mill to produce automotive sheet aluminum on Thursday, Aug. 29, 2013, in Alcoa. (Paul Efird/News Sentinel)

The news hasn’t been good this week for aluminum manufacturer Alcoa Inc.
It’s stock price is tumbling, a Duetsche Bank analyst downgraded the stock to sell and forecasters were predicting aluminum prices would fall 12 percent or more over the next two years.
All this on the heels of Alcoa being booted last month from the Dow Jones Industrial Average.
The future of Alcoa, which recently announced plans for a $275 million expansion of its Blount County manufacturing operation, will have a significant impact on the East Tennessee economy. The company is investing in a plant upgrade in a move to take advantage of rising demand for aluminum by auto makers.
Alcoa will kickoff earnings season with the release of its quarterly financial report on Tuesday.
Given recent headlines it will be interesting to see how the company performed last quarter and its outlook for the near future.
Deutsche Bank analyst Jorge Beristain told Forbes the company should spin-off its primary metals business to ease its cash-flow problems.
Click the headlines below for more details:
CNNMoney: Alcoa CEO on debt ceiling
Motley Fool: Why Alcoa doesn’t seem so shiny
Forbes: Alcoa’s $1.2 Billion Drag: Analyst Makes Case For Breakup

Analysts expect increased earnings from Regal

twilight_atb_12.jpgGood things are expected from Regal Entertainment Group when the Knoxville-based movie
 theater operator releases its fourth quarter earnings on Thursday.

Analysts are predicting earnings of 20 cents per share, double the 10 cents per share the company reported in the prior-year quarter.

Revenue is expected to be up 14.9 percent from a year ago, reversing results from the previous two quarters when revenues were down from from the year before.

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Green Mountain merger target?

 

Is Green Mountain Coffee Roasters a merger target? If so, what does that mean for the company’s relatively new roasting and distribution plant in Knox County?

Green Mountain Coffee

Green Mountain Coffee

The maker of the Keurig single cup brewer system has seen its share price plunge from nearly $116 a few months ago to less than $18 today. As its stock has spiraled lower, talk of a takeover has increased.

Green Mountain expanded to Knoxville in 2008, investing millions in a distribution and production plant in Forks of the River Industrial Park, where it employs several hundred workers.

 

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US Bank settles overdraft lawsuit for $55M

US Bank, the newest member of Knoxville’s banking community, has agreed to pay $55 million to settle a lawsuit alleging the bank manipulated overdraft fees it charged its customers.

The Minneapolis-based lender entered the Knoxville market about five months ago when it acquired the assets of BankEast after it was shut down by government regulators.

US Bank is one of the largest commercial banks in the country.

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Motley Fool makes nice with Ruby Tuesday

Ruby Tuesday lost a bunch of money in the last quarter, but there are reasons to feel good about the restaurant chain’s future, says a Motley Fool report.

“On the face of it, Ruby Tuesday’s $2 million loss in the last quarter may not be exactly good news. And some people are complaining about the salad bar. I would, however, put my money on the company,” says the report by Priya Singh.

Among the positives cite by Singh are “licensing agreenments with concept restaurants such as Lime Fresh Mexican Grill, Marlin & Ray’s, and Truffles Cafe. These restaurants have good brand positioning in the fast casual segment, which is a growing segment in an industry where demand exceeds supply.”

Motley Fool: Ruby Tuesday Won’t Go Out of Tune 

Banks are lending again — finally

After keeping the vault door closed tight for the last several years, banks are finally loaning money again.

PAULSON+MONEY.jpg“With most major banks done reporting fourth-quarter earnings, one trend is clear: For the first time in a while, loan growth is back,” according to a Motley Fool report.

JPMorgan Chase, Citigroup, Wells Fargo, US Bancorp, SunTrust and other banks all report an increase in loan totals.

“A lot of these banks had been paring back on loans for the better part of three years. Not only has that trend turned around, but it’s happened quickly,” Motley Fool says.

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Motley Fool says Kimberly-Clark among the best

Consumer products maker Kimberly-Clark Corp., which has operations in Knoxville and Loudon, Tenn., scored top marks today from the 
EARNS+KIMBERLY+CLARK.jpgMotley Fool CAPS investing community.

The maker of Kleenex, Scott, Huggies, Pull-Ups, Kotex, Depends and other brands, “sports a fat dividend and relative revenue and earnings stability” and is making inroads in overseas markets, according to Motley Fool.

Read what the Fool says about Kimberly-Clark and other top manufacturers here.

Associated Press photo