Service Sectors Are Still Making It in 2010
JOHANNESBURG, SOUTH AFRICA -- (MARKET WIRE) -- 03/05/10 -- Value
for money is on top of every consumer's minds these days. Innovation
and technological change in services are increasingly dependent on
the service-sector. Saks Incorporated (NASDAQ: SKS) and Coldwater
Creek Inc. (NASDAQ: CWTR) are two service sector stocks that are
bound to make it to the end of this year despite economical crisis.
Mathew Collier of Rothman Research believes that a solid balance
sheet and national presence should help those chains that are able to
get the merchandising right gain market share.
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Saks Incorporated - the company stores offer a range of luxury
fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts.
The company's stores offer a range of luxury fashion apparel, shoes,
accessories, jewelry, cosmetics, and gifts.
Saks has historically underperformed its peers, and while improved
merchandising in 2007 led to better sales and profit margins, the
deteriorating economy in 2008 stunted the turnaround effort.
Additionally, Saks entered 2009 much inventory on hand. But since
September, the stock is on an uptrend with robust volumes. It is on a
bullish trend which is rising and current levels might be very good
entry point. For more information, visit our web site at
Coldwater Creek Inc. - together with its subsidiaries, operates as a
multi-channel specialty retailer of women's apparel, accessories,
jewelry, and gift items primarily in the United States. The company
operates premium retail stores and merchandise clearance outlet
"Amidst deteriorating consumer spending, the performance of the
company is taking a hit. Considering the fact that consumer spending
is still on the ebb, the revenue visibility for the company remains
challenging" says Mathew Collier of Rothman Research. The company is
highly volatile as indicated by the beta of 2.78 compared to the beta
of 0.78 of industry. Coldwater Creek earned a negative return on the
equity over last financial year, but on an average for last 5 years
it gave a return of 4.05% against the 7.63% of industry.
The company holds a strong balance sheet with hefty cash balances and
low debt levels; which would help the company weather the downturn
and keep growth financing and liquidity issues at bay.
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About Rothman Research
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