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business newsGreen Screens for Bank of Ireland
By
Justin Sharon
Nov 18, 2010 4:30 pm
Governor and Company of the Bank of Ireland is easily the best percentage gainer on the entire New York Stock Exchange this afternoon, up more than 18%.
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The financial firm, one of the Emerald Isle’s “big four” banks, is surging on expectations Ireland will get a “bailout” (or loan, to use a more acceptable four-letter word) next week amounting to “tens of billions” of euros from the European Union and International Monetary Fund. This is according to Central Bank Governor Patrick Honohan in a radio interview today.
The one-time Celtic Tiger could certainly use a lifeline. Its economy, while not exactly back to a potato famine-type plight, has nonetheless seen a wrenching retreat since 2007. A long boom that began in the ‘90s and resulted in much reverse migration back to Eire from North America was fun while it lasted. Favorable free market policies -- Scotland’s bonnie Braveheart was actually filmed near Dublin on account of the tax breaks -- helped fuel an illusion of economic prosperity but its ultimate foundation was a flimsy house of cards propelled by all-too-easy credit. The resulting meltdown in housing and much else across the pond will be eerily familiar to any American.
With Bank of Ireland’s stock still down almost 75% in 2010 even after today’s ascent, a lot of ground still needs to be made up amid ongoing European sovereign debt domino fears. But it’s a start. Who knows? Much more of this and a noteworthy native son who has become quite the anti-poverty crusader may actually one day put his money where his mouth is and repatriate some of those multi millions.
Please see Defaults May Return to Haunt Beleaguered Irish Mortgage Lenders and Déjà Vu as Ireland Vies for Global Attention.
Not sure what Roger Altman, now apparently in contention to head the National Economic Council, would have to say about today’s strong showing by Perry Ellis International (PERY) but Robert Altman would be suitably impressed. The late Hollywood heavyweight once directed a movie called Prêt-à-Porter -- Ready to Wear, for those of us who speak neither fashion nor French -- and the American apparel outfit is certainly dressed for success this afternoon.
Shares are up by double digits on a percentage basis after analysts at Ladenburg Thalmann boosted their rating to Buy from Neutral on the Miami-based company whose sportswear offerings also include the Pierre Cardin label. Today’s surge follows an increase of more than 9% yesterday, the result of fiscal third-quarter earnings increasing 76%. Perry Ellis, founded by the eponymous designer who died of AIDS in 1986, also boosted its earnings forecast for the full fiscal year.
CEO George Feldenkries said in an upbeat statement that, “We continue to remain optimistic as to performance of our brands and product categories going into the holiday season.” Revenue rose 12% to $201.3 million, up from only $178.6 million in third-quarter 2009, and quarterly per share earnings of $0.51 easily exceeded Street estimates of $0.35 at the company that has featured actor Paul Rudd in its advertising. (How Do You Know, in the name of his upcoming movie? Why I just know.) They also outfit the Jeopardy wardrobe of Alex Trebek, appropriately shown here with 74 successive game winner Ken Jennings as this is a day of records.
Shares, up an astonishing 73% plus this year, could likely get taken to the cleaners on a near-term pullback, but for now all is undeniably rosy.
Also check out Why the Cost of Cotton Textiles Is Destined to Rise, Naked? Not To Worry -- Just Spray On Some Clothes, and Trendspotting: Investing in the Fall Fashion Season.
Shares of Clear Channel Outdoor Holdings (CCO) are trading more than 3% higher at a fresh 52-week peak. The firm, which owns and operates more than 800,000 advertising displays encompassing billboards, posters, and the revolving displays increasingly appearing on bus shelters, reported robust third-quarter results last week. Sales of $695 million represented a 5% increase on 12 months earlier while domestic revenue gained 7% with its key large markets posting a better-than-expected performance. The international segment increased 4% in terms of sales growth with Italy and Australia particular standouts.
With commuting times, for those lucky enough to still be employed, stretching ever longer, the company caters to a captive audience spending more time stuck in cars. Billboards advertising everything from paternity tests to illicit affairs may have raised eyebrows over the years but it's a medium that can also count on rising revenue as the economy and ad spending rebound.
One red flag is the steep debt load of privately held parent CC Media, which owns almost 90% of Clear Channel.
Turn to Microsoft, Clear Channel to Plaster World With Jay-Z Lyrics, Clear Channel Facing Unclear Future, and Human Billboard Steps Up His Corporate Shilling for related content.
If the Irish are celebrating today’s good news by downing a pint, then they were also likely drowning their sorrows with a cold one exactly a year ago tomorrow when Guinness maker Diageo (DEO) was overtaken by SAB Miller (SBMRY) as Britain’s biggest drinks distributor. (Whether the news is good or bad, citizens of the Emerald Isle rarely need much persuading to polish off a pitcher, after all.)
SAB Miller is the world’s second-largest brewer and its libations include Pilsner Urquell, Peroni, Grolsch, and of course Miller Genuine Draft. It controls about 15% of global volume and enjoys an especially dominant position on its home soil of South Africa. Shares, which received a World Cup soccer boost earlier in the year, finished at fresh 52-week high on London’s FTSE, ending up 5.1% after six-month profit increased 15% mainly due to emerging market strength.
Royal Bank of Scotland researcher Jonathan Cook notes that “The bull argument on the stock is that its long-term potential growth rate in emerging markets and its strong balance-sheet capacity should justify a premium to the sector.”
Not Made in the USA: Miller Beer, Companies Poised to Win at the World Cup, and Beer Sales Cool as Costs Rise has more.
No positions in stocks mentioned.
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