Party City is the leading party goods retailer in North America and the largest vertically-integrated supplier of such products globally by revenue. It’s also a company that’s seen its stock lose more than 80% of its value so far this year as a result of much weaker-than-expected operating results driven by several headwinds. The biggest of these has been the worldwide shortage of helium, which led to materially lower sales of the company’s high-margin latex and metallic balloons.
But with the stock now trading at a ridiculously low 2 times even the low end of its revised full-year adjusted earnings guidance range of 89-96 cents per share, I think the potential recovery in the stock in 2020 could be enormous and well worth the risk—especially if Party City’s recent assurance that helium supplies at its retail store were approaching 100% and resulting in a bounce back of helium impacted categories proves to be true.
Cohen & Steers Infrastructure Fund seeks total return, with an emphasis on income, by investing in such businesses as utilities, pipelines, railroads, toll roads, airports, marine ports and telecom companies. At $26.19, UTF carries a 7.1% current annualized yield and is trading very near its $26.61 net asset value. The fund has performed very well lately, recording a 43.97% total return over the past 12 months. Buy up to $33.00, for a 5.6% annualized yield.
So, Walmart is positioned well to take advantage of the growth in the middle class in China. Amazon has yet to find its way in China. It has about 1% market share. Add to this, Google came in last year with a $550 million investment to help position JD to challenge Alibaba and Amazon on a global scale. Walmart is 40% of the market value of Amazon, but the gap is closing.
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Raytheon LockheedMartin
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