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Fri, 29 Oct 2004

Fourth, I'll highlight K-Swiss Inc., an athletic- shoe maker with headquarters in Westlake Village, California. I own K-Swiss shares both personally and for clients. Last year, K-Swiss earned a 31 percent return on stockholders' equity. It has no debt and sells for 14 times earnings. In an unusual move for an athletic-shoe maker, K- Swiss eschews celebrity-athlete endorsements. Yet it has boosted earnings at a 32 percent annual clip the past five years, and revenue at a 22 percent pace. Finally, Marvel Enterprises Inc. looks attractive at $13.90, or 15 times earnings. The New York- based company owns the rights to some 4,700 characters, including Spider-Man and the X-Men. Marvel's publishing unit controls about a third of the U.S. comic-book market. Still, most revenue comes from toys. Licensing characters to movies is also an important, yet more sporadic, part of the picture. Marvel earned 42 percent on equity last year and has no debt
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