Sunday, August 5, 2012

Barron's Recap - 3 Stocks To Buy - Coach - Activision - Charter

(ATVI)  Barron's(8/6) Why Activision May Come Roaring Back

  Bring on the pandas. In late September, Activision Blizzard plans to
release the latest extension of its wildly popular World of Warcraft, a
multiplayer online game set in a fantasy universe. Mists of Pandaria will
include a new race of people, with a new language and unusual traits, as well as
a new adventurer class outfitted with special weapons and armor and skills and
      Investors are hoping the Asian-themed game will breathe new life into one
of the videogame maker's top franchises, and give Activision Blizzard's shares a
much-needed lift. The stock (ticker: ATVI) has been in the doldrums for much of
the past few years, the result of a down cycle for packaged videogames for
consoles ike Playstation3 and Xbox and intense pressure from cheaper games
played on smartphones and tablets such as the iPad.

(CHTR) Barron's(8/6) Tech Trader: Cable Stocks Are The New Dividend Darlings

  U.S. cable companies are going gangbusters this year, despite the
perennial concern they're out of touch with the future of Internet and mobile
      The three biggest, Comcast (ticker: CMCSA), Time Warner Cable (TWC),and
Charter Communications (CHTR), in that order, are up, respectively an amazing
46%, 40%, and 40% this year. With the exception of Cablevision (CVC), which has
slumped 33% in the last 12 months, they are all up by double digits year-over-
year as well. Cablevision has notched a respectable 9% climb since January.
      That the cable companies have fared so well is amazing given that
competing TV offerings from the likes of Verizon Communications (VZ) and AT&T
(T) have clearly taken a toll, and given the protracted housing slump -- no new
homes, no new sign-ups.
      Can it continue? Probably.
      Sure, dividend yields are straining to keep up with the share-price gains.
And competition from the Internet, smartphones, and tablets is a meaningful
threat. But it appears that investors can't get enough of a moldy old business
that has committed itself to paying out whatever cash it comes

(COH) Barron's(8/6) A Return Visit To Earlier Stories: Nasty Spill Makes Coach A Steal

Shoppers, get ready to bag a bargain.
      Shares of upscale handbag maker Coach have been on sale since Wall Street
pummeled the stock last week over a rare corporate stumble. For its latest
quarter, Coach reported a 1.7% sales increase in North America at stores open at
least a year, well below expectations of 6% and a prior-quarter gain of 6.7%.
Also troublesome, the company (ticker: COH) warned that spending on expansion in
Asia would weigh on earnings in the coming year.
      After falling 15% on the week, to $52.66, Coach looks cheap. It
continues to forecast double-digit profit growth, atop an 18% gain in earnings,
to $1.04 billion, or $3.53 a share, in the fiscal year that ended June 30,
on sales of $ 4.76 billion. The stock trades for 13.3 times this fiscal year's
expected $3.97 in per-share profit and under 12 times fiscal 2014 estimates of
$4.60, far from the growth multiples enjoyed in years past. Coach pays a
$1.20-a-share dividend, yielding 2.4%. Some analysts see the stock returning
to the mid-$60s.
      CEO Lew Frankfort, who joined the company in 1979 and has run it since
1995, transforming a staid purse maker into an international fashion powerhouse,
thinks investors overreacted. "It's understandable; investors fear the worst,"
he says. "Our fundamentals are excellent."

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