Category Archives: High Dividend Stocks

Logitech International is Now Over the Hump (LOGI)

To say the past twelve months have been tough ones for Logitech International SA (NASDAQ:LOGI) might be an understatement. Shares have fallen from a high of $10.29 last September to a low of $6.24 in April of this year. Though LOGI hasn’t traded lower than that since then, it’s not like the stock’s suggested it wants to stage a major recovery… unless maybe you look really, really close. Well, I did.

If the name rings a bell, it may be because you’ve got some Logitech International SA equipment attached to the device you’re using right now. The company makes computer peripherals – speakers, keyboards, cameras, etc. Their stuff is among the best in the industry. That’s not why I’m rapidly becoming a fan of LOGI, however. In fact, the organization has failed to turn a profit over the past four quarters (on a net basis). I’m rapidly becoming a fan because the chart says the worst of the company’s sales and earnings struggles are behind it.

How’s that? In simplest terms, LOGI has now made a higher high following a higher low. It’s the first time it’s happened in over a year.

Don’t discount the importance of that detail, and its technical ramifications. Logitech International SA has been working on this rebound for months, slowly logging an arc-shaped reversal (the kind that sticks) since late March. As of this week, however, that turnaround effort finally finds the undertow working in its favor.

Analysts foresee numbers that jive with the stock’s recovery. After Logitech International lost a total of $175 million over the past twelve months on $2.11 billion in sales, these pros are looking for a per-share loss of $1.11 for that timeframe to turn into a $0.27 profit per share this fiscal year. Sales are still expected to roll in at only $2.03 billion this year, but are projected to improve to $2.08 billion in fiscal 2014, when the company should earn $0.43 per share. That’s officially a turnaround.

It’s not just a pipedream either. Last quarter, LOGI beat estimates for the top line as well as the bottom line. Better still, the company is now on a mission to divest all divisions and product lines that aren’t profitable by the end of 2014. That’s music to investors’ ears, played by Logitech speakers.

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Benzinga's Most Read Stories for September 23, 2013

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At the Open: Stocks Fall on U.S. Political, Economic Uncertainty

Stocks have opened mixed this morning as the hangover from last week’s Federal Reserve meeting lingers.

The S&P 500 has dropped 0.3% to 1,705.27, the Dow Jones Industrials have fallen 0.1% to 15,439.53 and the Nasdaq Composite has declined 0.1% to 3,769.70.

It’s not that there wasn’t any good news over the weekend. China’s “flash” manufacturing purchasing manages’ index rose to a six-month high, Angela Merkel won a third term as Germany’s chancellor and

Yet everything in the U.S. is as messy as ever. The Fed shocked investors last week when it didn’t taper but it also didn’t say that it wouldn’t start scaling back its bond purchases in the months ahead; the U.S. looks to be headed for a government shutdown after the House sent a budget that defunds the Patient Protection and Affordable Care Act; and we still don’t know who will replace Ben Bernanke as head of the Fed. And then there’s the debt ceiling, which needs to be raised again.

No wonder investors are feeling less than excited this morning.

Citigroup (C) has dropped 2.5% to $49.92 this morning after the Financial Times reported it had experienced a big drop in trading revenue.

Rockwell Collins (COL) has fallen 2.6% to $68.21 after it was downgraded to Neutral from Outperform at Credit Suisse.

General Electric (GE) has gained 1% to $24.25 after signing a bunch of deals and getting a positive mention from my colleague Jack Hough in this weekend’s Barron’s.

Nielsen (NV) has gained 1.8% to $36.51 after its deal to buy Arbitron was approved with some changes required.