• Patent gets approved for new intelligent Caller ID

• 47% of consumers are interested and willing to pay a 20% premium over current TV prices

• Had a 38.3% growth from Qtr 3 of 2011 to Qtr 3 of 2012 , based off of findings from research firm IDC

• Adobe will give Retina Display support, like that found on MacBook Pro, for Photoshop CS6 and Illustrator CS6

SMBL has only nine analysts covering it and of them seven have buys and two have holds. To put SMBL into context, WFM trades at 47x TTM, TFM @ 39x TTM, and UNFI @26x TTM (UNFI recently regained its 200-day moving average). It is also important to put this SMBL rally into prospective too, for SMBL was a $6.00 stock a mere 130 trading days ago.

RBC is quite bullish on SMBL, for it was on their ‘top picks’ list and they have a $16.00 price target. RBC notes that SMBL has jumped on the gluten free and plant based packaging train. These two trends represent strong growth areas. According to the firm, “SMBL is on the cusp of being a beat-and-raise story for the first time in its history as a public company.”

SMBL distributes through many channels, for example WFM. UNFI, the cheaper multiple stock, on the other hand, has “several operating divisions aggregated under the wholesale segment, which is the company’s only reportable segment (meaning the other segments are not material – not quantitatively large enough- to report them individually). These operating divisions have similar products, services, customer channels, distribution methods, and historical margins,” according to the UNFI 10-Q.  Basically, the wholesale segment distributes natural and organic, specialty foods, produce, and related products to the USA and Canada. “Other” includes a retail division, manufacturing plant (roasted nuts, seeds, dried fruits etc), and corporate expenses account necessary to operate.

 The average price target for SMBL is $14.00, and considering we are trading around $12.50, this may not be a very good risk-reward trade. SMBL, along with stocks like ABT, should be on one’s watch list if/when we call off the cliff.

Feel free to e-mail any comments, feedback, suggestions, or general inquiries to…

Author

 salernoma@mx.lakeforest.edu

According to URBNs report, direct-to-consumer net sales as a percentage of consolidated net sales for all brands combined increased by 2.4% to approximately 21.8% of consolidated net sales for the nine months ended October 31, 2012.  This number shows an increase from 19.4% for the comparable period in fiscal 2012.  The holiday season is expected to be one of the major contributors to the better than expected 4^th quarter sales, said URBN CEO Richard Hayne.  The report also pointed to strong black Friday sales as a contributor.

Plans to expand the brand were also detailed in URBNs regulatory report.  URBN’s line of retail stores consists of Urban Outfitters, Anthropology, Free People, Terrain, and BHLDN.  The report stated that URBN plans to open approximately 49 new stores during the fiscal 2013, including 18 Urban Outfitters stores, 14 Anthropology stores, 15 Free People stores, 1 Terrain store, and 1 BHLDN store.

Author: Tyler Sciortino

Current Student at Roosevelt University, Majoring in Finance.

Contact for questions or inquiries at tsciortino@mail.roosevelt.edu