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Sally Jones
Sally Jones
Articles (580) 

Opportunities? Gurus Seize Down Retailers - JCP, PKSGY, LQDT, ZAGG

Department stores in the U.S. and China, as well as online retailers, will always reflect consumer confidence as well as the economic realities of the people who buy their products. In the U.S. retail sector, sales have increased slightly over the past few months. According to last month’s report from RetailPro, more merchants are also opening new storefronts, accounting for the dramatic decline in commercial vacancies by 10.5% in the second quarter of 2013. Vacancies are at the lowest level in four years, according to research company Reis Inc.

Here’s a look at second quarter trades in the retail apparel and specialty sector with 22 companies out 177 at a 52-week low. The low ratio is 0.12.

J.C. Penney Co. Inc. (JCP), a retail giant and long-time favorite of American shoppers, is currently the most “off high,” according to the GuruFocus special feature 52-week low Value Screen.

SECTOR WATCH: Retail – Apparel and Specialty

J.C. Penney Co. Inc. (JCP)

Down 40% over 12 months, JCP has a market cap of $2.82 billion.

JCP shares are priced at $12.80 and currently 60.7% off a 52-week high of $32.55; the yield is 1.40%. Shares trade at a P/B of 1.10 and a P/S of 0.23.

Guru Action: Second quarter trading shows Mario Gabelli buying 28,900 JCP shares at an average price of $16.83 for a loss of 23.9%. His trading history shows all losses on this holding.

Chuck Royce also bought a new holding of 589,131 shares at an average price of $16.83, taking a loss of 23.9%.

Back in May, J.C. Penney Company Inc. reported financial results for its fiscal first quarter ended May 4, 2013. For the quarter, the company reported a net loss of $348 million or $1.58 per share. JCP is scheduled to release its second quarter 2013 financial results Aug. 20.

Historical Pricing:


Parkson Retail Group Ltd. (PKSGY)

Down 36% over 12 months, China’s department store Parkson Retail Group Ltd. has a market cap of $1.16 billion.

PKSGY shares are priced at $12.38 and currently 59.9% off a 52-week high of $30.91; the yield is 4.90%. Shares trade at a P/E of 16.00 and a P/B of 1.20.

Headquartered in Beijing, Parkson Retail Group Ltd. operates a network of department stores focusing on fashion and lifestyle among the middle and middle upper class consumers in the People's Republic of China. Parkson offers fashion and apparel products, cosmetics, accessories, household and electrical goods, and groceries and perishable products.

Historical pricing:


Liquidity Service Inc. (LQDT)

Down 35% over 12 months, LQDT has a market cap of $917.1 million.

LQDT shares are priced at $29.00 and currently 49.50% off a 52-week high of $57.42; the yield is 0%. Shares trade at a P/E of 24.20 and a P/B of 3.30.


Incorporated in 1999, Liquidity Services Inc. is an online auction marketplace for surplus and salvage assets. Similar to eBay Inc. (EBAY), Liquidity Services enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories. The company's marketplaces provide professional buyers access to a global, organized supply of surplus and salvage assets presented with digital photos and product information.

Guru Action: In the second quarter of 2013, Manning & Napier Advisors Inc. increased its position by 99.52%, buying 105,618 shares at an average price of $34.41 for a loss of 15.7%.

On the selling side, Diamond Hill Capital unloaded 9,869 shares at an average price of $34.41 for a loss of 15.7%.

Zagg Inc. (ZAGG)

Down 45% over 12 months, ZAGG has a market cap of $147.3 million.

ZAGG shares are priced at $4.79 and currently 48.33% off a 52-week high of $9.26; the yield is 0%. Shares trade at a P/E of 14. 80 and a P/B of 1.30.

First incorporated in 2005 as Protective Solutions Inc., Zagg Inc. designs, manufactures and distributes protective clear coverings and accessories for consumer electronic and hand-held devices worldwide. The invisibleSHIELD is a protective, high-tech patented film covering, designed for iPods, laptops, cell phones, digital cameras, PDAs, watch faces, GPS systems, gaming devices and other items.

Here’s a look at ZAGG’s revenue versus net income:


Guru Action: In the second quarter of 2013, the latest top shareholder Chuck Royce made a new buy, purchasing 630,000 shares at an average price of $35.87 for a loss of 18%. Royce is one of five Gurus holding ZAGG.


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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.5/5 (6 votes)


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