Samsonite 1910

Re: Samsonite 1910

Postby iam802 » Tue Jan 17, 2012 10:52 am

This should be a SELL.

It will not go beyond $13.20 this year.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Samsonite 1910

Postby iam802 » Fri Jan 20, 2012 10:28 am

I recall that Tumi's founder sold it to the private equity after 9/11.

With Samsonite discussing about fit, I believe discussion must be in the works already.

The private equity need to cash out at some point in time. Their core activities do not revolved around operating business.


---
Tumi Makes Sense as M&A Target: Samsonite

http://www.bloomberg.com/news/2012-01-1 ... -hunt.html

Samsonite International SA (1910), the world’s largest branded-luggage maker, said an acquisition of bagmaker Tumi Holdings Inc. is a “natural fit” as it readies to spend at least $1 billion on buying rivals.

“One way we’d like to accelerate our growth is via the route of acquisitions,” said Ramesh Tainwala, Samsonite’s president for Asia Pacific and Middle East. Buying smaller rival Tumi would “make sense,” he said.

Samsonite (1910) intends to use its cash flow to acquire a brand this year that complements its products, said Tainwala, in a Jan. 18 interview. The maker of backpacks, luggage and travel gear has dropped 14 percent in Hong Kong trading since listing on the market last year as unemployment curbs consumer spending in developed markets and economies in Asia slow.

“Samsonite is already the biggest luggage maker and it’s doing much better than rivals,” said Katherine Chan, an analyst at Royal Bank of Scotland who recommends buying its stock. “Its business is very cyclical and it’s clouded by the grim macro- economic picture right now.”

Buying Tumi, the designer of black-nylon luxury travel bags that’s seeking as much as $300 million in an initial public offering in the U.S., may help Samsonite (1910) build on its strengths in the market, Tainwala said.

Natural Fit

The company isn’t interested in deals that involve “becoming just a shareholder,” said Tainwala, “Tumi is a natural fit to us, but it’s always subject to valuations.” He declined to say whether the two parties are in any type of talks.

Nick Bastin, a spokesman for Doughty Hanson & Co., declined to comment on a possible takeover by Samsonite when reached by phone yesterday. The London-based private-equity firm took over Tumi in 2004.

Samsonite raised about HK$9.73 billion ($1.25 billion) in its June IPO in Hong Kong and has cash and equivalents of $101.8 million as of June 30, according to data compiled by Bloomberg.

The luggage-maker’s stock fell 0.5 percent to HK$12.50 yesterday. Samsonite’s 14 percent decline from its IPO price of HK$14.50 a share compares with an 11 percent drop for the benchmark Hang Seng Index since June 15, the day before the stock started trading.

Ten-year Treasury yields held at 1.89 percent as of 6:48 a.m. in London yesterday, according to Bloomberg Bond Trader prices. The record low yield was 1.67 percent on Sept. 23.

Hungry for Acquisitions

“Cost of borrowing being low, a debt-free balance sheet and a healthy generation of free cash, all these factors put together makes us hungry for acquisitions,” Tainwala said.
Samsonite (1910) also sees room for organic growth in China, Russia, India and Indonesia, and plans to add 300 stores a year in China, Tainwala said, bringing its number of outlets to 1,800 in 2012 from 1,500 a year ago.

Foreign brands are increasingly counting on China for growth, as consumers in the world’s most populous nation become more affluent. The country’s urban disposable income rose 14 percent to about 21,810 yuan in 2011.

Tainwala expects China to overtake the U.S. as the company’s largest market in the next three to five years. China contributed about 10 percent to the group’s total revenue in 2011, while the U.S. contributed 25 percent.

“In China, more people are now moving to cities. When there are more urban people, they travel more,” said Tainwala.

Dividend Plans

The firm is “on track to deliver all of its IPO promises”, which include delivering a net income target of no less than $64.2 million in 2011, Tainwala said.

Net income dropped to $16.4 million for the first half of 2011, from $30.7 million a year earlier after factoring in IPO transaction costs of $24.8 million, the company said Aug. 29 in a statement. Sales rose 33 percent to $1.17 billion in the first nine months in 2011, according to an October filing to the Hong Kong stock exchange.

“Only a third of our profits are needed to plow back to the existing business in terms of working capital,” said Tainwala. The rest can be used for acquisitions, he said.

Samsonite plans to pay dividends to investors in March for the first time, according to Tainwala.
The company expects sales growth in the U.S. to slow to between 8 percent and 9 percent this year from 20 percent last year and European growth to drop to 2 percent to 4 percent from the year earlier 18 percent, Tainwala said.

“We are injecting caution in our growth outlook, guiding investors with a smaller growth rate,” said Tainwala, without giving a target.

1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Samsonite 1910

Postby winston » Wed Mar 28, 2012 11:43 am

not vested

DJ UPDATE: Samsonite 2011 Net Profit Down 76%, But Results Above Company's Expectation

--Luggage maker Samsonite's 2011 net profit down 76%, but results were distorted by reversal of certain impairment costs in 2010

--Stripping out such reversals and other one-off costs, net income for the year was up 30% to US$136.8 million


HONG KONG (Dow Jones)--U.S. luggage maker Samsonite International S.A. (1910.HK), which listed in Hong Kong last June, said Wednesday its 2011 net profit fell 76% owing to non-recurring costs and non-cash items.

The company, which makes suitcases, casual bags and other travel products, said its net profit for the 12 months ended Dec. 31 was US$86.75 million compared with US$355.02 million a year earlier.

Samsonite, which sells products via the Samsonite and American Tourister brands, said the results were distorted by a reversal of certain impairments in 2010 required by accounting standards. Stripping out the impairment adjustment and other one-off costs, the company's net income for the year rose 30%.

Samsonite said its 2011 net profit exceeded the forecast of US$64.2 million as highlighted in its listing prospectus ahead of the company's US$1.25 billion Hong Kong listing.

Meanwhile, Samsonite's net sales rose 29% to US$1.57 billion from US$1.22 billion a year earlier, bolstered by Asian sales. It recommended a cash dividend of US$0.02132 per share.


Source: Dow Jones Newswires
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Re: Samsonite 1910

Postby winston » Wed Apr 11, 2012 9:29 am

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DJ MARKET TALK: Samsonite Set To Fall; CVC, RBS Cut Stakes

0817 [Dow Jones] Samsonite (1910.HK) is set to fall on news CVC Funds and Royal Bank of Scotland (RBS) are seeking to raise up to $220 million via selling 112.5 million shares in a HK$14.90-HK$15.15 indicative range, representing a 3.1%-4.7% discount to Tuesday's close of HK$15.64 (+3.6%), or higher than the U.S. luggage maker's HK$14.50 IPO price back in June last year, according to a term sheet seen by Dow Jones Newswires Tuesday.

Samsonite shares are up 28.4% year-to-date vs the HSI's 10.4% gain. CVC and RBS will be restricted in selling their remaining Samsonite shares for a 90-day lock-up period after the placement;

CVC has a 28.66% stake in Samsonite and RBS owns 15.84%, the web site of Hong Kong stock exchange shows.


Source:Dow Jones newswire
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Re: Samsonite 1910

Postby winston » Thu Apr 12, 2012 11:35 am

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DJ MARKET TALK: Samsonite +1.8%;But Little To Get Excited About-DBSV

1107 [Dow Jones] Samsonite (1910.HK) rebounds 1.8% to HK$14.68 after falling 7.8% Wednesday following a stake cut by CVC Funds and RBS, which combined raised US$216 million by selling 112.8 million shares in the U.S. luggage maker at HK$14.90 each.

Post-deal the two still has a remaining 36.5% stake, which "over the medium-term could stall any big rally on the counter," says DBS Vickers;

The house adds that unless favourable M&A options emerge, "we also see little to get excited about in terms of organic growth." It keeps Samsonite at Hold with a target price of HK$13.42.

Source: Dow Jones Newswire
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Re: Samsonite 1910

Postby winston » Sat Jun 16, 2012 8:20 am

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Samsonite shares drop 16 percent on HK report of chemicals in handles

HONG KONG (Reuters) - Shares of Samsonite International (1910.HK), the world's biggest luggage maker, fell more than 16 percent on Friday after Hong Kong's consumer products watchdog, said it found parts of certain suitcases containing high levels of chemicals that may be carcinogenic.

Hong Kong's Consumer Council said in a statement on Friday that excessive levels of polycyclic aromatic hydrocarbons (PAHs) had been found in the handles of four samples of the company's suitcases. The amounts exceeded the limits set by a German voluntary labeling scheme on consumer plastic products, it said.

Samsonite issued a statement late on Friday that said the company's Tokyo Chic, Cubelite and Westlake luggage - the items referenced in the Council report - were "completely safe."

"Based on the independent test results as well as on specialist expert opinion, we are absolutely confident that consumers can continue to use our luggage without any safety or health concerns at all," Ramesh Tainwala, President, Asia-Pacific & Middle East, said in the statement.

"We do not anticipate this incident having any material impact on our results whatsoever."

The Council said a research and testing unit conducted tests on 19 models, with prices ranging from HK$350 to HK$5,100 ($660).

"The Customs and Excise Department has advised the agent for the suitcases of which the handles are found with high PAHs to stop the sales of the concerned model and to replace the handles," the Council said.

For the full statement, click: r.reuters.com/gyt78s

CANCER RISK

Research reports indicate that PAHs can cause cancer. They are released into the environment through the burning of coal, crude oil and refined oil products.

Samsonite, based in Luxembourg and listed in Hong Kong, makes luggage, business bags and travel accessories aimed at the mid-to-upper end of the market.

The stock fell as low as HK$12.02, the lowest since February 1. The shares ended at HK$12.12 on Friday, still down 16.1 percent, compared with a 2.26 percent gain in the benchmark Hang Seng Index finance/markets/index?symbol=hk%21hsi">.HSI.

Samsonite, among the world's best known luggage brands, went public on the Hong Kong stock exchange last year, listing on June 16. The IPO was priced at HK$14.50, and struggled immediately after it began trading.

The company, named after the biblical figure, aimed to tap China's growth as part of its move to list in Asia.

http://www.reuters.com/article/2012/06/ ... M720120615
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Re: Samsonite 1910

Postby winston » Sat Jun 16, 2012 2:19 pm

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SAMSONITE (01910) tumbles 8.6% after HSBC cuts its target amid blurry outlook in eurozone
2012-06-15

SAMSONITE (01910) was rejected by 50MA and being sold-off today, as HSBC cut its target price and the outlook for the European debt crisis remains blurry.

The stock broke below 100MA, 20MA, 10MA ($14) and hit intra-day low at $13.04. It tumbled last by 8.6% to $13.16 on trading volume soaring to 4.34 million shares.

HSBC Global Research projects that the macro-economy will affect SAMSONITE's exchange gains, making it hard to push EBITDA margin higher. The bank held a Neutral rating on SAMSONITE with target price lowered by 6% to $16.5.

SAMSONITE late last week disclosed that sales in Asia and North America for April jumped 20%, while European market merely recorded a low-single digit growth. Sales in Italy and Spain even declined.


Source: AAStocks Financial News
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Re: Samsonite 1910

Postby winston » Mon Jun 18, 2012 11:19 am

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DJ MARKET TALK: Samsonite +9.3%; Swift Action Restores Confidence

1055 [Dow Jones] Samsonite (1910.HK) rallies 9.3% to HK$13.20, after the luggage maker makes a swift clarification announcement.

Last Friday, the stock slumped 16.1% due to reports that Hong Kong Consumer Council found carcinogen Polycyclic Aromatic Hydrocarbons (PAH) in the side-carrying handles of three product models sold by the company.

Samsonite announced Monday morning that it sent random samples of the products in question to independent test laboratories in Germany and HK in order to assess the levels of PAH in the handles, and the "independent test results found PAH levels that were significantly lower than those reported by the Consumer Council."

DBS Vickers believes such incident should have "minor impact" to Samsonite's brand reputation, and the company's quick clarification, swift action as well as supportive independent test results should help to dispel consumer concerns.


Source: Dow Jones Newswire
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Re: Samsonite 1910

Postby winston » Mon Jun 18, 2012 2:38 pm

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Samsonite's Tokyo Chic hit by Hong Kong health scare

US luggage maker Samsonite said Monday it had withdrawn some of its suitcases from Hong Kong stores, after a consumer group found they contained high levels of chemicals that may cause cancer.

The company said its Tokyo Chic brand had been taken off the shelves even though its own tests indicated there was no threat to consumers from the Polycyclic Aromatic Hydrocarbons (PAH) in the side-carrying handles.

"The company's independent test results found PAH levels that were significantly lower than those reported by the Consumer Council," Samsonite said in a statement, referring to a local consumer watchdog.

"Based on the independent test results, as well as on expert advice the company has received, the company is confident that consumers can continue to use its luggage products without any safety or health concerns."

It said that to "allay any concerns that consumers may have", Tokyo Chic luggage had been withdrawn from all of its points of sale in the southern Chinese city, a regional banking hub and key market for luxury brands.

The side-carrying handles on Tokyo Chic luggage would be replaced with a "next-generation handle" for concerned customers in Hong Kong.

The statement to the Hong Kong stock exchange, where the US company is publicly traded, added that there were "no legal standards prescribing PAH levels in luggage".

"The company continually monitors applicable legal requirements and strives to ensure that its products meet not only legal standards but also the highest standards of product quality and safety," it said.

Samsonite said the move to withdraw Tokyo Chic bags from the Hong Kong market would have no material affect on its financial results.

The Hong Kong Consumer Council published an article last week saying certain Samsonite suitcases contained unsafe levels of PAH, according to benchmarks set under a voluntary German certification scheme.

It said the Customs and Excise Department has advised agents for suitcases with high PAH levels to "stop the sales of the concerned model and to replace the handles".

Samsonite shares were 7.95 percent higher on Monday morning at HK$13.04 as traders welcomed its swift action.


Source:AFP Asian Edition

http://www.newsmeat.com/news/meat.php?a ... &buid=3281
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Re: Samsonite 1910

Postby winston » Fri Jun 29, 2012 9:29 am

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DJ MARKET TALK: Recent Fall Good Time To Buy Samsonite -Barclays

0824 [Dow Jones] STOCK CALL: Barclays lowers its FY12 earnings estimates for Samsonite (1910.HK) by 5%, mostly from the negative impact of a strong USD; it accordingly trims its target price by 5% to HK$16.85, but keeps the stock at Overweight.

The house says it seems that Samsonite's prompt response to the HK Consumer Council report has helped assuage consumer fears, and believes 2Q12 sales trends are in line with 1Q with only slight moderation.

"We reiterate that this recent decline (stock down 9% since June 14, the day before the Council report was out) is a good time to accumulate, at attractive valuations, on Samsonite, which is the leading luggage brand with growth backed by Asia growth and global market share gains."

Samsonite rose 1.3% to HK$12.90 Thursday. Earlier this month, the company withdrew all Tokyo Chic suitcases from HK stores after the Consumer Council found in the side handles of some samples high levels of chemicals that may be carcinogenic.


Source: Dow Jones Newswire
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