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Helen of Troy Limited Message Board

  • marketswise marketswise Sep 30, 2008 10:58 PM Flag

    Helen of Troy Outlook

    Well, the Wedbush analyst once again has appeared with his usual bagging of Hele. It seems every quarter he has tried his best to find a new reason to issue a sell opinion. However, this time it borders on being somewhat in the realm of "ludicrous". He is projecting earnings to increase from .32 cents to .37 cents. That is a 15.625% INCREASE from the same quarter a year ago. He also shows that the consensus is .36 cents a share. Now if you are going to continue to rate a company a "sell" , don't you think they should earn LESS than what everyone else is projecting ,not more? He also cites Margin pressure from high raw material costs and competitor inventory liquidation. Why then isn't his EPS projection more like .32 cents or lower if the stock is such a sell? He has been trying to get the price of this stock down for more than a year or so and has had a sell recomendation since Hele has traded at 14 or so. Maybe someone at Wedbush should at this time start to question the motivation of this analyst's recommendations on Helen of Troy?!

    Helen of Troy has continued to return outstanding results in a very challenging environment for retail as well as in a dismal consumer-based economy. The first quarter earnings were up over 30% and while I don't expect that type of increase this quarter, they should be respectable considering the type of climate they are operating in. Once the economy stabilizes, they are poised to take advantage of their strong balance sheet, a new warehouse that is producing substantial savings in SG%A expenses, and a cash position that will give them a competitive advantage over many companies that need capital in a tight credit market. It also will give them the opportunity to be positioned to take advantage of an attractive acquisition or to purchase additional shares of their stock.The OXO brand continues to be leading Helen of Troy to increased sales and margins. I believe a conservative estimate of $2.00 per share for the current fiscal year should put the stock into the $30.00 ++ range within the next 6 months

94.76-0.37(-0.39%)Oct 8 3:59 PMEDT