According to the CBDT notification, the company proposed to raise upto Rs 10,000 crore through issue of bonds in the year 2012-13. Out of which, IIFCL already raised Rs 785 crore on a private placement basis in two tranches and Rs 2,883.88 crore through public issue of tax free secured redeemable non-convertible bonds of tranche I.
Coupon rate for retail investors, NRIs and HUFs (which are applying for an amount aggregating up to Rs 10 lakh across all series of bonds in each tranche issue) will be 7.36 percent in case of series I, 7.52 percent in series II and 7.58 percent in series III. Coupon rate for other investors will be 6.86 percent in series I, 7.02 percent in series II and 7.08 percent in series III.
Redemption of bonds will take place at the end of 10 years, 15 years and 20 years from the deemed date of allotment for series I, series II and series III, respectively. IIFCL will make interest payment on bonds on annual basis.
Bids can be made for minimum of 5 bonds across all series of bonds and in multiples of one bond thereafter. The issue will close on March 15, 2013.
Hot Penny Stocks To Buy Right Now: Lowe's Companies Inc.(LOW)
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.
Advisors' Opinion:- [By Bob Ciura]
The United States is finally starting to thaw from the brutal winter, and this couldn't come soon enough for retailers. In addition, the housing market continues to strengthen, evidenced by rising home prices across the country. These tailwinds are combining to provide a great deal of support to Home Depot (NYSE: HD ) , the biggest home-improvement chain in the U.S, as well as close rival Lowe's (NYSE: LOW ) .
- [By Demitrios Kalogeropoulos]
Home Depot (NYSE: HD ) has been riding the housing market rebound to a 180% return over the last five years, or double the increase over rival�Lowe's� (NYSE: LOW ) . But is the stock still a good investment at these levels?
- [By Chris Hill]
The latest batch of data indicates that the housing boom is rolling along. New home sales increased by 2.3% in April, and the median price for a new home rose nearly 15% year over year. So how real is this recovery? In this installment of Investor Beat, Motley Fool analysts James Early and Charly Travers discuss whether investors are better off looking at homebuilders like Toll Brothers (NYSE: TOL ) , or home-improvement stocks like Home Depot (NYSE: HD ) and Lowe's (NYSE: LOW ) .
- [By kcpl]
Home Depot (HD) and Lowe's (LOW) are good stocks for those who want to invest in home-improvement companies. So, investors should keep a close watch on the recovery of the housing market if they wish to benefit from these two companies.
Hot Retail Stocks To Own For 2014: Sears Hometown and Outlet Stores Inc (SHOS)
Sears Hometown and Outlet Stores, Inc. (SHO), incorporated on April 23, 2012, is a retailer primarily focused on selling home appliances, hardware, tools and lawn and garden equipment. As of April 28, 2012, the Company and its dealers and franchisees operated 1,238 stores across all 50 states and Puerto Rico, Guam and Bermuda. The Company also provides its customers with a range of services, including home delivery and installation and product protection agreements. SHO operates in two segments: the Sears Hometown and Hardware segment and the Sears Outlet segment.
Sears Hometown
Sears Hometown and Hardware segment�� stores are designed to provide its customers with in-store and online access to a range selection of brands of home appliances, tools, lawn and garden equipment, sporting goods, consumer electronics and household goods, depending on the particular store. Its Sears Outlet stores are designed to provide its customers with in-store and online access to purchase new, one-of-a-kind, out-of-carton, discontinued, obsolete, used, reconditioned, overstocked and scratched and dented products, collectively, outlet-value products, including home appliances, lawn and garden equipment, apparel, mattresses, televisions, sporting goods and tools.
As of April 28, 2012, the Sears Hometown and Hardware segment consisted of 944 Sears Hometown Stores, 96 Sears Hardware Stores and 76 Sears Home Appliance Showrooms. The 944 Sears Hometown Stores are primarily independently owned stores, predominantly located in smaller communities and offering appliances, consumer electronics, lawn and garden equipment, and hardware. Hometown Stores carry y Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other brands. 96 Sears Hardware Stores are hardware stores that carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and other national brands and other home improvement products. 93 of these locations also offer a selection of Kenm! ore and other national brands of home appliances.
Sears Hometown and Hardware business operates through three formats: Sears Hometown Stores (Hometown Stores), Sears Hardware Stores (Hardware Stores), and Sears Home Appliance Showrooms (Home Appliance Showrooms). Hometown Stores offer products and services across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, sporting goods, tools and household goods. Most of its Hometown Stores carry Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other national brands. Its Hardware Stores offer products and services across a range of merchandise categories and sales are primarily driven by tools, lawn and garden equipment, home appliances, and other home improvement products. In addition, these stores offer blade sharpening, key cutting and screen repair, as well as products typically found in local hardware stores, such as fasteners, electrical supplies and plumbing supplies. These stores carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and a range of national brands and other home improvement products. Its Home Appliance Showrooms offer home appliances and related services in stores primarily located in strip malls and lifestyle centers of metropolitan areas. Home Appliance Showroom sales are primarily driven by big-ticket cooking, laundry and refrigeration home appliances, as well as, in certain stores, mattresses. These stores carry Kenmore and other national brands of home appliances. As of April 28, 2012, out of 76 Home Appliance Showrooms in 19 states, 44 of these stores are owned and operated by franchisees, 30 stores are owned and operated by the Company and two are owned and operated by independent dealers.
Sears Outlet
As of April 28, 2012, the Sears Outlet segment consisted of 122 Sears Outlet Stores. The Company�� Sears Outlet stores provide in-store and online access to purchase outlet-value ! products ! across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, apparel, sporting goods, tools, and household goods.
The Company competes with Sears Holdings, The Home Depot, Best Buy, Lowe�� and Tractor Supply, Ace Hardware, True Value, HH Gregg and US Appliances.
Advisors' Opinion:- [By James Brumley]
The folks who originally said Eddie Lampert — hedge fund manager, major SHLD shareholder, and now acting Sears CEO — was mostly viewing Sears Holdings as a real estate play have since been vindicated. In addition to the spinoff of Orchard Supply Hardware (OSHWQ) in 2011 and last year’s spinoff of the relatively successful Sears Hometown and Outlet Stores (SHOS), Lampert is now finally getting serious about shedding SHLD department store units. Last year he sold or closed 46 of the company’s 1,300 or so full-line mall stores, vs. letting go of less than 10 in any year since he became a major shareholder back in 2006.
- [By gurujx]
SEARS HOMETOWN (SHOS) Reached the 3-year Low of $28.84
The prices of SEARS HOMETOWN (SHOS) shares have declined to close to the 3-year low of $28.84, which is 51.3% off the 3-year high of $57.44.
- [By Michael Lewis]
When investors hear the word "Sears," most immediately think of Sears Holdings (NASDAQ: SHLD ) , the Eddie Lampert-controlled real estate play that has polarized investors and analysts for years. In the value neck of the woods, much attention has lately found its way toward Sears Hometown and Outlets (NASDAQ: SHOS ) , a business I relentlessly tout as a top retail pick. But there's yet another Sears that attracts even fewer investigators, probably because it resides north of our borders, in America's big brother, Canada. The company is called Sears Canada (TSX: SCC ) , and it's bouncing off its 52-week lows, trading cheap, cheap, cheap. Let's take a look and see if this is the Sears you should be focusing on.
- [By Chris Isidore]
Selling the Canadian stores would raise much-needed cash. The company recently spun off its Lands' End unit that it paid $1.9 billion for in 2002. Two years ago it sold a line of specialty stores, Sears Hometown and Outlet Stores (SHOS).
Hot Retail Stocks To Own For 2014: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
Advisors' Opinion:- [By DAILYFINANCE]
William Vazquez, Pfizer/AP TRENTON, N.J. -- Men who are bashful about needing help in the bedroom no longer have to go to the drugstore to buy that little blue pill. In a first for the drug industry, Pfizer Inc. (PFE) told The Associated Press that the drugmaker will begin selling its popular erectile dysfunction pill Viagra directly to patients on its website. Men still will need a prescription to buy the blue, diamond-shaped pill on viagra.com, but they no longer have to face a pharmacist to get it filled. And for those who are bothered by Viagra's steep $25-a-pill price, Pfizer is offering three free pills with the first order and 30 percent off the second one. Pfizer's bold move blows up the drug industry's distribution model. Drugmakers don't sell medicines directly to patients. Instead, they sell in bulk to wholesalers, who then distribute the drugs to pharmacies, hospitals and doctors' offices. But the world's second-largest drugmaker is trying a new strategy to tackle a problem that plagues the industry. Unscrupulous online pharmacies increasingly offer patients counterfeit versions of Viagra and other brand-name drugs for up to 95 percent off with no prescription needed. Patients don't realize the drugs are fake or that legitimate pharmacies require a prescription. Other major drugmakers likely will watch Pfizer's move closely. If it works, drugmakers could begin selling other medicines that are rampantly counterfeited and sold online, particularly treatments for non-urgent conditions seen as embarrassing. Think: diet drugs, medicines for baldness and birth control pills. "If it works, everybody will hop on the train," says Les Funtleyder, a health care strategist at private equity fund Poliwogg who believes Pfizer's site will attract "fence-sitters" who are nervous about buying online. The online Viagra sales are Pfizer's latest effort to combat a problem that has grown with the popularity of the Internet. In recent years, Americans have becom
- [By Bloomberg]
Matthew Staver/Bloomberg via Getty Images Cerberus Capital Management's $9 billion deal to merge Safeway (SWY) with Albertsons is a bet that a larger supermarket chain can better fend off an attack on the grocery business by big-box stores and online retailers. Safeway, the No. 2 grocery-store operator in the U.S., agreed Thursday to be acquired by Cerberus's Albertsons for about $40 a share. The deal will unite two chains with locations across the country -- especially in the West -- and narrow Kroger's (KR) lead as the nation's top supermarket company. Cerberus, a private-equity firm that has spent years investing in the supermarket industry, will use the new company's heft to combat a growing array of threats. Big-box retailers such as Walmart Stores (WMT) and warehouse clubs are increasingly targeting grocery customers, using their size and breadth of products to attract shoppers. Online food sellers and delivery services, including Amazon.com (AMZN), also have made neighborhood supermarkets less essential than before. "This merger will improve our competitive position," Safeway Chief Executive Officer Robert Edwards, who will be in charge of the combined company, said Thursday on a conference call. "Our customers will benefit from significant cost saving synergies and a stronger management team." Safeway shares fell as much as 6.3 percent to $37 in extended trading, reflecting concerns the deal may not close at the current price. The shares had increased 21 percent this year through the close of regular trading Thursday, outpacing the 1.6 percent gain of the Standard & Poor's 500 Index. Blackhawk Network As part of the agreement, investors will get $32.50 a share in cash, plus stock in Safeway's gift-card unit Blackhawk Network Holdings (HAWK), according to a statement Thursday. Safeway, based in Pleasanton, Calif., had said last month that it was in talks about a sale of the company. Assuming a diluted share count of about 235 million shares,
- [By Charles Sizemore]
The “typical” property for Realty Income would be your local Walgreens (WAG) or CVS (CVS) pharmacy ��a high traffic, highly visible location that you pass on your daily commute. And under a triple-net lease, it is the tenant’s responsibility to take care of the property and to pay the taxes and expenses.� The landlord�� only role is to collect the rent check. Not bad work, if you can find it.
- [By Mike Deane]
At CVS Caremark Corporation’s (CVS) annual analyst day, the company reaffirmed its 2013 guidance and gave guidance for full year 2014, and also announced a 22% dividend raise and a stock repurchase program.
Dividend Raise
CVS will now be a quarterly dividend of 27.5 cents, which is up from its previous payout of 22.5 cents. The company’s dividend is payable on February 3, 2014 to all shareholders on record as of January 23, 2014.
Stock Buyback
CVS Caremark’s board of directors also approved up to $6 billion in share repurchases of the company’s common stock. The repurchase plan will be completed over a multi-year period and allows the company to make repurchases from time to time through “open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions.”
Guidance
Dave Denton, CVS Caremark’s executive vice president and CFO, reaffirmed CVS’s views for 2013 and gave guidance for FY2014. For FY2014 the company expects EPS from continuing operations in the range of $4.36 to $4.50, and expects GAAP diluted EPS to fall in the range of $4.09 to $4.23.
Stock Performance
CVS stock was inactive in pre-market trading. YTD, the company’s stock is up 34.48%.
Hot Retail Stocks To Own For 2014: Staples Inc.(SPLS)
Staples, Inc., together with its subsidiaries, operates as an office products company. The company offers various office supplies and services, office machines and related products, computers and related products, and office furniture under Staples, Quill, and other proprietary brands. It also provides copy and print services to retail and delivery customers, as well as technology services through its EasyTech business. The company sells and delivers office products and services directly to businesses and consumers through Internet retail, including Staples.com and Quill.com, as well as through contract sales force, direct mail catalog business, and retail stores. As of January 28, 2012, it operated 2,295 retail stores in 48 states and the District of Columbia in the United States; and 10 provinces and 2 territories in Canada, as well as in Belgium, Finland, Germany, the Netherlands, Norway, Portugal, Sweden, the United Kingdom, China, Argentina, and Australia. The company also operated 124 distribution and fulfillment centers in 29 states in the United States; 7 provinces in Canada; and in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, the United Kingdom, China, Argentina, Brazil, and Australia. Staples, Inc. was founded in 1986 and is based in Framingham, Massachusetts.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top Headline
Staples (NASDAQ: SPLS) reported weaker-than-expected fiscal fourth-quarter earnings and announced its plans to close 225 stores by 2015. Staples posted its quarterly earnings of $212 million, or $0.33 per share, up from $90 million, or $0.14 per share, in the year-earlier quarter. On an adjusted basis, it earned $0.33 per share, versus analysts' estimates of $0.38 per share. Its sales fell to $5.87 billion from $6.57 billion. For the first quarter, Staples projects its sales to drop from the year-earlier period. It also expects earnings of $0.17 to $0.22 per share. Staples also announced its plans to pay a Q1 dividend of $0.12 per share.
Hot Retail Stocks To Own For 2014: Five Below Inc (FIVE)
Five Below, Inc. (Five Below), incorporated on January 30, 2002, is a retailer offering a range of merchandise for teen and pre-teen customer. The Company offers products, including select brands and licensed merchandise across a number of categories, which it refer to as worlds-Style, Room, Sports, Media, Crafts, Party, Candy and Seasonal (which it refer to as Now). As of October 27, 2012, The Company operated 243 stores throughout the eastern half of the United States. Its Style consists primarily of accessories such as novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories and attitude t-shirts. Its beauty offering includes products such as nail polish, lip gloss, fragrance and branded cosmetics. Its Room consists of items used to complete and personalize its customer�� living space, including glitter lamps, posters, frames, fleece blankets, pillows, candles, incense and related items. The Company also offers storage options for the customer�� room and locker.
The Company�� Sports consists of an assortment of sport balls, team sports merchandise and fitness accessories, including hand weights, jump ropes and gym balls. It also offers a variety of games, including name brand board games, puzzles, toys and plush items. In the summer season, its sports offering also include pool, beach and outdoor toys, games and accessories. Its Media consists of a selection of accessories for personal computers (PCs), cell phones, Moving Picture Experts Group Layer-3 Audio (MP3) players and tablet computers. The offering includes cases, chargers, headphones and other related items. It also carries a range of media products including books, video games and Digital Versatile Disc (DVDs). It offers an assortment of craft activity kits, as well as arts and crafts supplies, such as crayons, markers and stickers. It also offer trend-right items for school, such as backpacks, fashion notebooks and journals, novelty pens and pencils, as well as everyday name brand items.
The C! ompany�� Party consists of party goods, decorations and greeting cards, as well as everyday and special occasion merchandise. Its Candy consists of branded items that appeal to teens and pre-teens. This category includes an assortment of classic and novelty candy bars and movie-size box candy, as well as gum and snack food. It also sells chilled drinks through coolers. Its Seasonal consists of seasonally-specific items used to celebrate and decorate for events such as Christmas, Easter, Halloween and St. Patrick�� Day.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading UP
Five Below (NASDAQ: FIVE) shares shot up 13.11 percent to $42.98 after the company reported better-than-expected fourth-quarter results. The company posted its quarterly adjusted earnings of $0.47 per share on revenue of $212 million. However, analysts were projecting earnings of $0.45 per share on revenue of $207.8 million. - [By U.S. News]
Alamy 'Tis the season for shopping and great deals -- unless, of course, you don't have a lot of money. In that case, the holiday displays, brightly colored wrapping paper and catalogs arriving in the mail can be unpleasant reminders of how broke you are. But even if you're experiencing a cash crunch, you can still complete your gift list. Here are some places to find affordable gifts off the beaten shopping path -- and some way off the path. Flea markets. Flea markets are known for housing a cornucopia of treasures, from antiques to new products, and from expensive to cheap. There's probably one near you: According to the National Flea Market Association, there are more than 1,100 flea markets throughout the country. And, of course, don't discount the flea market's close cousin: the garage sale. Libraries. Nobody's suggesting you check out a book and give it to a family member or friend with the warning that it must be returned in two weeks. Some libraries, however, have seasonal book sales to drum up income, and others have stores that sell books year-round. "My local library has a store that sells books for a dollar apiece to raise money for the library. Most of them are in very good shape, and there are books of all kinds," says Tracy Bagatelle-Black, a public relations executive in Los Angeles. Barter. If you have something to barter -- a skill, for instance -- you might be able to find gifts that way. There are numerous bartering organizations (including u-exchange.com, tradeaway.com and barterquest.com) that you can generally join for free, although there are usually bartering fees and shipping costs involved. So your mileage may vary as to whether you find this route practical or not. Dollar stores. If you don't have much money, these stores are famous for offering inexpensive household items and gifts. Five Below (FIVE) is a chain of stores in which everything is $5 or less. The company's spokesperson suggests checking its collection of "Hottest
- [By Anora Mahmudova]
Movers and shakers: Alcoa Inc. (AA) �shares dropped 5.4% after the aluminum producer said it swung to a fourth-quarter loss. The firm also said Thursday it had settled charges of corruption in Bahrain with a $384 million payout to the Securities and Exchange Commission and Department of Justice. Abercrombie & Fitch�� shares (ANF) �rallied 12% after the firm raised its full-year adjusted earnings projections. Gap Inc. (GPS) � gained 1.1% after saying it expects full-year earnings near the top of its projected range of $2.57 to $2.65. The firm also said same-store sales in December were flat, missing expectations of a 1.5% increase, according to a survey of analysts by Thomson Reuters. Sears Holdings Corp. (SHLD) �disappointed the market with plunging same-store sales, sending its shares tumbling 13.8% Friday. The company said it had a 7.4% decline in quarter-to-date holiday-season comparable sales. Five Below Inc. (FIVE) �tanked 7.2% after updating its guidance for the three months ended January 4. The retailer said it now expects adjusted per share profit to be between 44 cents and 46 cents. In December, the firm said it expected adjusted profit of 49 cents to 51 cents.
Hot Retail Stocks To Own For 2014: AutoNation Inc (AN)
AutoNation, Inc. (AutoNation), incorporated on May 30, 1991, is an automotive retailer in the United States. As of December 31, 2011, the Company had three operating segments: Domestic, Import, and Premium Luxury. As of December 31, 2011, it owned and operated 258 new vehicle franchises from 215 stores located in the United States, predominantly in metropolitan markets in the Sunbelt region. Its stores sell 32 different brands of new vehicles. The core brands of vehicles that it sells, representing approximately 90% of the new vehicles that it sold during the year ended December 31, 2011, was manufactured by Ford, Toyota, Nissan, General Motors, Honda, Mercedes-Benz, BMW, and Chrysler. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, parts and automotive repair and maintenance services , and automotive finance and insurance products, which includes the arranging of financing for vehicle purchases through third-party finance sources. The Company retailed approximately 400,000 new and used vehicles through its stores in 2011. It acquired one automotive retail franchise and related assets during 2011.
Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Chrysler. Its Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Its Premium Luxury segment is consists of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sells used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2011, Domestic revenue represented 34% of total revenue, Import revenue represented 37% of total revenue, and Premium Luxury revenue represented 28% of total revenue. Corporate and other is consist of its other businesses, incl! uding collision centers, e-commerce activities, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that it arranges under agreements with third parties.
The Company�� stores acquires vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same franchise. it acquires used vehicles from customer trade-ins, auctions, lease terminations, and other sources. It recondition used vehicles acquired for retail sale at its stores��service facilities and capitalize costs related thereto as used vehicle inventory. Through its VVOs, which are located on existing store facilities, it sells vehicles that it would have traditionally wholesaled with an average retail price lower than that of used vehicles it typically retail. Used vehicles that the Company do not sell at its stores or VVOs generally are sold at wholesale prices through auctions.
The Company offers a variety of automotive finance and insurance products to its customers. The Company arranges for its customers to finance vehicles through installment loans or leases with third-party lenders, including the vehicle manufacturers��and distributors��captive finance subsidiaries, in exchange for a commission payable to the Company. It also offers its customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (GAP, this protection covers the shortfall between a customer�� loan balance and insurance payoff in the event of a casualty), tire and wheel protection, and theft protection products. The vehicle protection products that its stores offers to customers are underwritten and administered by independent third parties, including the vehicle manufacturers��and distributors��captive finance subsidiaries. The Company sells t! he produc! ts on a straight commission basis; however, it also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements. Commissions that it receives from these third-party providers may be subject to chargeback, in full or in part, if products that it sells, such as extended service contracts, are cancelled. Its stores also provide a range of vehicle maintenance, repair, paint, and collision repair services, including warranty work that can be performed only at franchised dealerships and customer-pay service work. The Company has entered into framework agreements with vehicle manufacturers and distributors. It operates each of its new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor.
Advisors' Opinion:- [By Chris Hill]
Shares of CarMax (NYSE: KMX ) �hit an all-time high on Wednesday after fourth-quarter profits rose 13%. To what extent is CarMax competing with Ford (NYSE: F ) , General Motors (NYSE: GM ) , and�Autonation (NYSE: AN ) ? What's the opportunity for CarMax going forward? In this installment of MarketFoolery, our analysts discuss the future of CarMax.
- [By Monica Gerson]
AutoNation (NYSE: AN) is projected to report its Q3 earnings at $0.77 per share on revenue of $4.44 billion.
Microsoft (NASDAQ: MSFT) is expected to post its Q1 earnings at $0.54 per share on revenue of $17.79 billion.
- [By Michael Lewis]
With car sales in the United States looking healthier and healthier, the various outlets within the industry should benefit as well. At least, that's how AutoNation (NYSE: AN ) CEO Mike Jackson sees it. His company reported encouraging results this week, with profit up double digits and a top line sales figure that beat the Street's estimates. Though the stock was down slightly and analysts maintain a relatively neutral outlook, the company has encouraging fundamentals and a growing business that may be worth an extra glance. Here's what you need to know.
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