JC Penney (JCP)
We are downgrading JC Penney (<a href=http://www.zacks.com/stock/quote/jcp>JCP</a>) shares from Hold to Sell. The stock is up about 90% off its March lows. We think the shares have moved too far, too fast, given that the retailer is still several quarters away from seeing a real rebound in its business. <p> Moreover, management is pointing to signs of stabilization in its business, we note that JC Penney's sales and earnings will experience sever declines in 2009. We previously upgraded the stock on February 8, when it traded around $16. We felt that at that price the stock discounted much of the bad news. <p> However, with the stock trading around $27, we think the stock has substantial downside risk. Our target price is $16, which 20x our fiscal 2010 EPS estimate.Restaurant Industry
The chief catalysts in the recent restaurant stock rally were better-than-expected earnings reports by Darden Restaurants (DRI), Brinker International (EAT), Ruby Tuesday (RT) and California Pizza Kitchen (CPKI). With the exception of Darden, however, the out-performance was driven by strong cost controls, decelerating commodity prices and conservative assumptions.McDonald's (MCD)
McDonald's (<a href=http://www.zacks.com/stock/quote/mcd>MCD</a>) continues to report strong same-store sales, driven by the consumer trade down from casual dining, and menu variety. Global comps rose 4.3% in 1Q09 (U.S. +4.7%, Europe +3.2%, APMEA +5.5%). <p> Although comps are getting tougher and the U.S. dollar has strengthened, we think further growth is possible through menu innovations, margin improvement in APMEA, where company-operated restaurant margins lag the US by 260 basis points, G&A leverage, and share repurchases. We expect continued headwinds from a stronger dollar, but those impact translation only, not the fundamentals of overseas operations, which operate entirely in local currency. <p><i> With a strong balance sheet, consistent earnings, healthy cash flow, high ROE (30%) and a generous dividend, we think this stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets.</i>Generational Equity Announces Sale of Polar Window of Canada Ltd. to Private Equity Firm Riverside Company
DALLAS, TX--(Marketwire - April 30, 2009) - Generational Equity, an advisor to privately held and family-owned businesses for mergers, acquisitions, and strategic growth initiatives, announced the sale of its client Polar Window of Canada, a Winnipeg, Canada-based full-service high-quality window and door specialist to Riverside Company, an international private equity firm headquartered in New York, N.Y. The value of the transaction was not disclosed.
Managing Directors Stephen Crisham and Lori Galloway, along with Ted Rattenberry, Generational Equity's Affiliate for Western Canada, led Generational Equity's deal team in marketing and negotiating the transaction.
Generational Equity Announces Sale of Assets & Business of Deerfoot Equipment Rental Inc. to WesternOne Equity Income Fund
DALLAS, TX--(Marketwire - April 30, 2009) - Generational Equity, an advisor to privately held and family-owned businesses for mergers, acquisitions, and strategic growth initiatives, announced the sale of the assets and business of its client Deerfoot Equipment Rental Inc., a Calgary, Alberta-based provider of heaters, generators and compact construction equipment, to WesternOne Equity Income Fund, a private equity group based in Vancouver, British Columbia. The value of the transaction was not disclosed.
Generational Equity Announces Sale of Pittman & Davis to Southern Fulfillment Services
DALLAS, TX--(Marketwire - April 30, 2009) - Generational Equity, an advisor to privately held and family-owned businesses for mergers, acquisitions, and strategic growth initiatives, today announced the sale of its client Pittman & Davis, a catalog gift food company headquartered in Harlingen, Texas, to Southern Fulfillment Services LLC, a Vero Beach, Fla.-based holding company. The value of the transaction was not disclosed.
Family-owned and operated since 1926, Pittman & Davis has specialized in providing tree-ripened fruit, specialty food items, and other catalog gifts for more than 82 years. With this acquisition, Southern Fulfillment Services adds a complementary catalog brand to its Hale Groves catalog. The combined operations will have more than 50 full-time professionals and up to 1,000 seasonal employees.
Generational Equity Announces Sale of Creasy & Whiteed, Inc. to Private Investors
DALLAS, TX--(Marketwire - April 30, 2009) - Generational Equity, an advisor to privately held and family-owned businesses for mergers, acquisitions, and strategic growth initiatives, announced the stock sale of its client Creasy & Whiteed, Inc., a fabricator and installer of metal roofing and architectural sheet metal products, based in Hampton, Va., to private investors in western Va. The value of the transaction was not disclosed.
With the acquisition, Creasy & Whiteed's new owners intend to expand the company's geographic reach and build upon its solid reputation and long-term customer base.
First Western Acquires California Investment Advisor GKM Advisers, LLC
Transaction Marks Denver-Based First Western's Third Acquisition in Los Angeles
Warwick Valley Telephone Company Announces Completion of Acquisition of USA Datanet Assets
WARWICK, NY--(Marketwire - April 30, 2009) - Warwick Valley Telephone Company (
Marks Paneth & Shron LLP (MP&S), Leading New York Area Accounting Firm, Merges With Arthur B. Greene & Co. CPA, PC
Merger Significantly Grows MP&S Family Office and Business Management Practice; Expands Services Offered to Entertainment and Literary Clients