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Harley Yahoos for Beans and Bags: COH, YHOO, SBUX, HOG

January 24, 2011 | About:
wax

wax

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The earnings merry-go-round continues this week with several fan favorites set to announce. Look for analyst upgrades for many of the companies announcing earnings, after they "shatter" analyst's expectations, as well as lots of hype about how America's economy is improving.

Basis

At Wax Ink, our valuation work is based on audited or annual financial information as taken from a company's most recent SEC Form 10-K filing. Unaudited, or quarterly financial information as taken from a company's SEC Form 10-Q filing, is not used unless otherwise noted.

Caveats

Admittedly, we provide investors with information in a bit of an irreverent style. We do that so the data won't appear to be as boring as it really is.

In addition, we support our valuation considerations, with our Raw Value Worksheets. Each listed company has an associated worksheet which can be viewed, printed, or downloaded by clicking on the associated link.

This Week's Earnings Darlings

Coach, Inc. - (COH) The company sells handbags, accessories, and other worthless stuff that consumers believe they cannot live without. The stock closed recently at $53.00, with Resistance at $55.06 and Support at $44.46. Should the stock price fall below resistance, the next stopping point would be at the 52 week low of $32.96.

Our Reasonable Value Estimate for the stock at this time is $40.00, with a Buy Target of $23.50, a First Sell Target of $46.00, and a Close Target of $48.50.00, based on a 5 year hold.

Analysts are anticipating earnings of $0.97, a 29% year over year increase.

Yahoo, Inc. - (YHOO) The company provides on-line properties and services to users; and marketing services to advertisers, and prays that Google will send it some business. The stock closed recently at $15.97, with Resistance at $16.56 and Support at $15.50.

Our Reasonable Value Estimate for the stock at this time is $25.00, with a Buy Target of $15.00, a First Sell Target of $29.00, and a Close Target of $31.00, based on a 5 year hold.

Consensus earnings are listed at $(0.22) compared to year ago earnings over the same period of $(0.22).

Starbucks Corporation - (SBUX) The company purchases and roasts whole coffee beans. In addition, the company brews coffee in it's retail outlets and then sells the brewed coffee to chumps like us for $5 a cup. The stock closed recently at $33.20, with Resistance at $33.72 and Support at $32.02.

Our Reasonable Value Estimate for the stock at this time is $30.00, with a Buy Target of $18.00, a First Sell Target of $35.50, and a Close Target of $37.00, based on a 5 year hold.

The garrulous gabbers of CNBC think earnings should come in at $0.39 compared to year ago earnings over the same period of $0.33.

Harley-Davidson, Inc. - (HOG) The company produces and sells heavyweight motorcycles that for a while, every accountant, lawyer, and dentist, believed they needed to own so they could ride up and down the same 6 miles of highway in an attempt to say "look at me". The stock closed recently at $35.99, with Resistance at $37.22 and Support at $33.95.

Our Reasonable Value Estimate for the stock at this time is $35.00, with a Buy Target of $21.00, a First Sell Target of $41.00, and a Close Target of $43.00, based on a 5 year hold.

Talking head earnings estimates for the company are listed at $0.87 compared to year ago earnings over the same period of $0.91.

Final Thoughts

Eventually, the spin coming from Wall Street, the White House, and The Wall Street Journal, about the economy, the markets, and the weather, may actually come true.

Personally we don't believe it will, but the law of averages being what they are, not to mention computerized trading platforms, well who knows. It could happen.

Until it does, we want to remind everyone of two things. First, companies are buying iPads, and second, Oprah Winfrey has a family secret. Now if that isn't groundbreaking investing news, we don't know what it is.

Wax

Disclaimer

We have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. We receive no compensation to write about any specific stock, sector or theme.

About the author:

wax
Wax Ink is a baseline equity research company not licensed or registered with any government agency

Visit wax's Website


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