May 6, 2014|
Stock Talk - Micah Robinson, Motley Fool by financialexchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Michael Robinson from the Motley Fool -- are things. I'm great good day I love your first pick fossil group FO SL. This thing is make -- lots of money 208 dollars a share but they earned six dollars a share working tell us about it. That's right yeah it's a great property I mean as you know it and accessories retailer with a strong growing brand in the fossil brand. What's really interesting about this business is -- portfolio but when you fight awful. Box he not only buying into growth of -- the proprietary. And also -- you. Brands like Burberry and Oreo or Marty Michael -- -- -- so. When you walk out you know everyday -- -- people -- might mean -- when they were my words -- -- or money herbal bit Burberry watches. They're actually wearing popcorn -- making a lot of money off -- -- -- of their own brand and on other brands but that's what I really love about the. Why if they're -- so much money -- six dollars a share. Why don't they have a dividend. -- -- you know what I think there's still a lot of places that they didn't employ capital so one of the things that they did recently has been about 240 million dollars. On an acquisition of a bargain. Scoggin but it also -- expect street brand very young popular in Europe but. Mostly untouched in in Asia and America. So I think they still be a lot of growth potential in areas outside the US as well as somebody -- need to expect street brands like art and for the most part the beach right China market -- possibly as relatively untouched like I I -- -- In point capital's -- to open more doors. And that becoming a much larger portion of the revenues. Now I am looking at your next pick the container storage in Europe at the big thing on the. It wouldn't I've never been in some tell everybody would container stories and why you like well the reason that I like it is because I think they have some -- novel. And neat ideas and really I mean the whole story is just full of of items in which you can store item. But it's it's really novel idea and I've never talked to anybody who didn't really like it's accomplished now. Like you like like. Well you like it for the same -- perspective. You know American you're buried it. It and in the end here or sells product for you up in the so you you'd look at their help both blacks and it's basically take that he would organize bought it -- completely organizes it. In a clean and attractive looking way are reduced to chaos in your life and it makes you more comfortable pitching war more work all in here. Torture all the and to make you you know more more competent everything that your -- do. These abuses include the money. Tester bed days they are profitable right now. But the thing is that the future it is really looking forward. In the school right now they only if he read the work. Management and myself believe that they can give you at least 300 stores and that's only in the US. There's there's any. He. Increased profitability that they can get an average of beer market. Economics of this business or just. Incredible. Thomas -- or how much data they carrying. -- it about 300 million and historically before they were. Taken public they they ran -- -- -- debt and I I fully expect -- will he be paid down over time however you know with with. Interest rates where they are probably decent idea picking -- in debt. -- but it would you look at the economic growth margin for specialty retailer of about 2%. Average ticket sales of -- Elton Brand over 500 dollar value that is a great visit and as as they made and indeed more leverage. Based on on on our production. That this is this going to be asked our future. -- seal like it there's two picks the Container Store in fossil right apple SL. That's correct all right thanks Mike appreciate it -- no problem that's Michael Robinson Motley Fool.