PennyOmega.com Stock Report!

PennyOmega.com Hot Stock News & Alerts!

 

Friday July 31, 2009

PennyOmega.com Stock Report!

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General Employment Enterprises, Inc. (NYSE Amex: JOB) reported consolidated net revenues for the quarter ended June 30, 2009 of $2,520,000, compared with consolidated net revenues of $3,622,000 reported for the same period last year. It was the third quarter of the Company’s 2009 fiscal year. Contract service revenues for the quarter were $1,490,000, down 17% from the same period last year. Placement service revenues of $1,030,000 decreased 43% from last year.

Noble Corporation (NYSE: NE) today reported that the Company’s Board has established the record date and payment date for a dividend in the form of a reduction of the

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Zumiez Inc. (ZUMZ) is a specialty retailer of action sports related apparel, footwear, equipment and accessories. Zumiez's first quarter EPS topped our estimate by $0.11 thanks to a higher-than-expected gross margin. However, management's second-quarter guidance was disappointing. The company expects comp-store sales to decline in the low-to-mid 20% range with a net loss per share of $0.14-$0.17.Our previous EPS estimate was a loss of $0.09/share. We are reducing our earnings estimates for the remainder of fiscal 2009 and fiscal 2010. We expect sales trends to remain weak for the next several quarters. The stock trades a premium valuation of 156x our fiscal 2009 EPS estimate and 52x our fiscal 2010 EPS estimate.The combination of weak business trends and a premium stock valuation point to a lower stock price. As a result, we are downgrading the Zumiez from Hold to Sell ...

Zumiez, Inc.’s (ZUMZ) second quarter EPS beat the street by $0.02, but the management lowered its full-year EPS guidance forecast from $0.90-$0.93 to $0.80-$0.86. We are again lowering our estimates for the second half of the year. Our 2008 EPS estimate goes from $0.86 to $0.79 and our 2009 EPS estimate goes from $1 to $0.90.

We continue to expect a weak consumer into 2009 because macro headwinds (housing, debt and food/energy prices) will persist for some time. The stock is now trading at 17.7x our 2008 EPS estimate and 15.6x our 2009 EPS estimate. We think this valuation is reasonable and we prefer to remain neutral on the stock. Our six-month target price is $15, or about 16x to 17x our 2009 EPS estimate.

The investment case for Zumiez is supported by its competitive strengths and long-term growth strategy. The company targets those customers who are interested in action

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