Nov 7, 2012|
Stock Talk - Tim Holland, TAMRO
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
You've got three stocks are going to be talking about this morning we're joined by Tim Holland from Tim -- capital he's the portfolio manager over there Tim welcome to the show Gloria this morning. I'm doing well Barry -- certainly are. -- to appreciate your time hey let's take a look at your first pick Chico's FAS incorporated. The symbol for Chico's -- CHS and trades on the New York Stock Exchange where do you like Chico's. -- it's them all right here so that's true we call laggard. Camera -- partners there it is either leader record -- but often. Where market new management team. -- are improving profitability improving merchandise in you know connecting with the customer. And in the court precedent. An older. American woman American mother. Is if you will is really we believe are coming back to the stores area's economy it's better. You know the last person to come back out our experts tend to -- the American mom because -- family first it's a cute and be a bit more conservative. Is. And there's things get better she knows better start again companies decided straight out remembered -- -- I -- this is a play on an improving overall economy. -- Domestic base in the exclusively -- -- basic and again geared towards that middle age and up American woman I think they're great product. They've they've done a great to have improved productivity but again we think their core customers really finally coming back to the stores. -- let's now evaluate MDC holdings incorporated. Yeah this is trading at 39 dollars and 45 cents a share it's down a dollar today is this a good time to buy it. We're very good start on NBC holdings -- one of the largest homebuilders in the country it's based in Colorado. It's run by the persons found that forty years ago very well capitalized. Arctic -- from the ballots -- ability to -- -- land. Entitled land and build on land as the and housing market comes back. And so. We've been -- -- -- -- about a year that we think the market turned back half of last year when the reasons were bullish on the consumer. Is because we think housing prices are going up and are going down anymore as we wanted to sort of focus on those better run. Took it straight home builders that have the capital. To participate in an up market because Lance could become more expensive not less expensive. T need the dollars to buy the -- as they say in NBC's world ran well capitalized company that can do that. And they just reported earnings results earlier this. Are they -- -- the Tim how are they gonna manage the rising commodity prices. You look at the price of timber virtually anything to go into the construction of -- house going up. Very fast. Chair -- mum lumbered up dramatically and and and and and that's partly in large part because housing is gone. Better so they do have some input cost inflation. Labor is a bit more manageable though if you think about all the folks get laid off. Simply drop the tablet made it out and went -- so they're not in as much pressure on the labor side. But you're absolutely right there on the on the commodity costs and input costs those -- But what are upset that -- Wright is as the value of the land goes up the -- perhaps those. That increase in price. Should hopefully more than offset. The input cost and again -- still pretty manageable because even with a decent jobs number today but a lot of folks that you make a living. Swing and anger -- -- in adversary. That are still looking for work. All right now looking at Macy's this is your third pick of the day. Are earning three dollars a share their pretty stingy with their dividend you know they they make three dollars and sixteen cents a share earnings and they only pay out eighty cents why -- -- treat. Well I don't know if they're they're they're so cheap I I think. I think think about Macy's as my expected Chico's is it was a multi year. Turn around market right to validate all of the regional chains they brought under Macy's and Bloomingdale's of the art department store operator. In the country now. And again their court press. 65% give particular revenues term by female apparel accessories to look at it that. Sort of American mom comes back to the stores basic benefit. Profitability is -- in Europe in the yield. At at the current price of around forty dollars and an -- and just under. 2% right so there's room there. And I wouldn't be surprised overtime attorneys continue to increased value -- that dividend pay out but but it must think she does it's very possible turnaround plan. They've proved distort the truth to merchandise. -- outer core customer is coming back in effect continued -- -- what position. I -- great job appreciate your time. Sure -- and it's Tim Holland from two camera capital portfolio manager there. Let me give you his three next once again Chico's the symbol CH yes. MDC holdings the symbol MDC. And of course Macy's the symbol that one pretty easy to remember symbol for Macy's is M.