Subway: Eat Fresh, Drink Vitamin Water Zero

Coca-Cola continues to expand its line of non carbonated beverages. The company, most famous for its original Coca-Cola brand, has shifted its focus to healthier options like Powerade and Vitamin Water. Today Coca-Cola announced a deal to bring its popular Vitamin Water brand into Subway stores.

The new deal will see customers in Subway able to purchase Vitamin Water Zero beverages. Vitamin Water had a market share of 1% in the noncarbonated beverage market (Beverage Digest). Sales of Vitamin Water Zero saw sales growth of 28% last year. The deal is for Vitamin Water Zero brand only, keeping the full calorie Vitamin Water bottles out of Subway stores. Two flavors, Lemonade and Acai Blueberry Pomegranate, will be offered in stores. Subway began testing sales of the bottles over the last several years. Along with Coca-Cola on fountain, Subway also offers Minute Maid, Powerade, and Dasani beverages in bottles. With 25,000 locations, Subway is the largest restaurant chain in the United States.

Vitamin Water was purchased in 2007 for $4.1 billion by Coca-Cola. The acquisition was part of beverage companies shifting to alternative drinks as consumers move away from carbonated beverages. Rival Pepsi acquired Sobe and Gatorade brands. Considered rich at the time, the acquisition has allowed Coca-Cola to expand from carbonated beverages into alternative options like bottled water, flavored water, and juice drinks.



The push into Subway with Vitamin Water also strengthens Coke’s restaurant business. The company competes with Pepsi in the restaurant fountain beverage industry. Pepsi has YUM Brands, which includes Taco Bell, Pizza Hut, and KFC. YUM Brands is the largest restaurant chain by number of stores in the World. Coca-Cola has its fountain machines in McDonald’s, Burger King, and Subway. Subway and McDonald’s are the two largest restaurant chains in the United States. Coke is also experimenting with its Coca Cola Freestyle machine, which allows customers to choose from individual flavor combinations. A recent article points out the benefits of the new machine and how it could transform the restaurant fountain industry.

Important Announcement

Over the next week, I will welcome my first child into this world. During this exciting time, I will not be around a computer and will not be active on this blog or Seeking Alpha. I will have some time off from work and will be completely redesigning my stock blog and updating it during my time off.

In the meantime, I want to thank anyone who has read this blog or any of its posts on a regular or short term basis. I am in the process of creating a monthly stock investing newsletter. The newsletter will be a complete guide to the market and will have many subsections including:

New Stock Ideas
Stocks Under $10
Dividend Ideas
Top ETFs
Earnings Analysis
Stocks I Own

I have not decided on whether the newletter will be free (ad-supported) or a subscription basis. I am wondering if anyone would like to start the conversation here or in an email of if they would read the newsletter and how much they would pay.

The newsletter would also include the first look at my Top Ten Stock Picks, which have been huge winners for anyone following me.

Also, anyone who emails now will receive first priority and a discounted rate if it is a subscription basis.

Please email with your interest at: stockworldpicks@gmail.com

Thanks,

Chris

Tria Beauty Set to Price Their Initial Price Offering This Week

Read my latest IPO writeup. This week we center our focus on Tria Beauty. The maker of at home hair removal and acne removal products is set to go public this week.

Tria Beauty (TRIA) is set to go public by offering 4.6 million shares at a price point of $13 to $15. The initial price offering is being underwritten by Morgan Stanley (MS), Piper Jaffray, and Wells Fargo (WFC). With a total share count of 19.2 million (19,294,722), the company's market capitalization would be $270.1 million (based on mid range of $14 a share). After the offering, directors of Tria Beauty and owners of more than 5% would own 58.4% of the company.
Tria Beauty is a leading over the counter medical device maker in the beauty segment. The company offers, "easy to use, FDA-cleared medical devices to consumers that deliver results comparable to professional aesthetic treatments at a fraction of the cost." Continue Reading

Here's a look at the company's two leading products and a newer product as well:

2 Great New IPOs to check out

Over the past few years, I have switched most of my stock writing over to Seeking Alpha. Each month on that site I contribute articles on stocks that I feel are worth watching or buying. For anyone who has followed me on this blog or the Seeking Alpha community, you have seen many of those picks create great value for anyone who took my recommendations. Initial price offerings are companies who come to the public market. The investments are risky as many of the shares are held by private equity and are hard to acquire during the first public day.

Here are two recent IPO write-ups of stocks I think worth checking out after they go public.

Ignite Restaurant Group - Is the company behind the Joe's Crab Shack and Brick House Tavern + Tap Brand

T.I.M. WE - Offers Mobile Markeing, Mobile Money, and Mobile Entertainment in over 75 countries around the world.

THQ Raises Earnings Guidance and Stock Soars

Just a short time ago, THQ Incorporated (THQI) received a delisting notice from the Nasdaq if it could not maintain a price above a $1 a share. Shares have not seen a $1 since December of 2011 but appear destined to hit the key share price after upbeat earnings from the company.
The fourth quarter loss will now be smaller than the company and analysts once projected. The net loss is expected to now be in the $0.10 to $0.20 range. Previously, the loss was predicted to be in a range of $0.35-$0.50. Net sales will now be reported as $160-$170 million versus projected $130-$150 million.
Saints Row: The Third sales greatly increased once the company did several price cuts to attract buyers. The uDraw segment has weighed down shares and hurt revenue. Stronger sales of the UFC Undisputed game also helped the earnings beat. A blog post I wrote back in January highlighted the new UFC game and the company’s potential. Here’s a look at sales of some recent releases:

North America/Europe/Japan/Rest of World/Total

UFC Undisputed 3 XBOX 360 0.36million 0.08 million 0 0.04 million 0.49 million

UFC Undisputed 3 PS3 0.28 million 0.12 million 0.01 million 0.06 million 0.48 million



Saints Row 3 XBOX 360 0.89 million 0.92 million 0.03 million 0.22 million 2.07 million

Saints Row 3 PS3 0.55 million 0.69 million 0.09 million 0.28 million 1.62 million

Saints Row 3 PC 0.07 million 0.11 million 0 0.03 0.21 million



Sales figures from www.vgchartz.com


Earnings will now be reported on May 15th and this could lead to an increased share price once guidance for the rest of the year is reported. An update on the game release schedule could also push shares back over $1. The company will also report $76 million in cash balances. Along with its cash balance, the company still maintains a $50 million level of credit that can be utilized to release several games in 2012 and 2013.

The company will likely update the status on the highly anticipated Darksiders II game. The game will be a follow-up to 2010’s Darksiders, which sold close to a million copies on the XBOX 360 platform. The company’s recent UFC game is also helping earn the company additional revenue with downloadable character packs, including the recent International Fighters pack. The WWE games also have made extra money from downloadable character packs. In my recent blog post, I also mentioned how the company was expanding into social gaming including UFC and Margaritaville.



The fifty two week share price of the company is a wide $0.45-$4.67. Shares once traded for over $35 a share. I bought shares of this stock under $1 as I believe the company is producing enough money from several minor hits to keep its studio going. New releases will power the company further along or will lead to a buyout. A buyout is also very realistic as larger Take Two (TTWO), Electronic Arts (EA), or Activision (ATVI) looks to strengthen its portfolio and will gain the Saints Row, Darksiders, and UFC brands as well as others. I remain bullish on shares of THQI and think they are worth buying below a $1 a share.

*Disclosure - I own shares of THQI and ATVI

Buy the Company Behind the Tupac Hologram

Over the weekend, attendees of the annual Coachella Music Festival were treated to a suprise appearance from Tupac Shakur. Now I know what you're thinking, yes Tupac was shot and killed in 1996. This Tupac was a hologram that was made by Digital Domain Media Group (DDMG). The Tupac hologram performed "Hail Mary" and "2 of Amerikaz Most Wanted" with Snoop Dogg.

Digital Domain Media Group went public in November of 2011. The stock is trading below its IPO price, even with a nice runup from the Tupac hologram. I wrote an article on Seeking Alpha today analyzing other parts of the business and the potential for other holograms.

Check out the article here.

*Disclosure - I own shares of Digital Domain Media Group*

Recommended Stock Dreams Incorporated (DRJ) Receives Buyout Offer From Fanatics

Today, one of my most recommended stocks over the last year on Seeking Alpha shot up 30% from a buyout announcement. Dreams Incorporated, owner of the Fansedge.com website and other sports assets, was offered a $3.45 per share buyout from Fanatics.

In my most recent Dreams article on Seeking Alpha, I recommended buying shares while they were trading at $3.04. In that article I gave a price target of $4.00. In an earlier article, I recommended buying shares when they traded at $2.16. Buying shares at either of those prices would have yielded a nice short term profit for readers.

Here is a look at Dreams articles I have written:

July 31st 2011 - 15 Companies Breathing a Sigh of Relief From the New NFL Deal
Share Price $2.63, Price Target N/A

December 2nd 2011 - Dreams Incorporated is a Double in 12 Months at Today's Share Price
Share Price $2.19, Price Target $4.00

December 23rd 2011 - A 12 Stock Tim Tebow Portfolio for the Holidays
Share Price $2.30, Price Target N/A

March 19th 2012 - Nike, Dreams Incorporated Big Winners in Peyton Manning Sweepstakes
Share Price $2.85, Price Target N/A

March 30th 2012 - Web Syndication Deals, Growing E-Commerce Will Help Dream Shares Jump
Share Price $3.04, Price Target $4.00

All these articles offered entry points below today's buyout price. If you read my articles here and are not familiar with Seeking Alpha, you should make the jump over there. On Seeking Alpha, I offer many more in depth articles with trading recommendations. Head over to the site, sign up and begin following me so you can profit from your trading.

A Stock That Can Benefit From The Mega Millions Jackpot

I played the Mega Millions several weeks ago when it crossed the $500 million mark. Like others, I had dreams of how to spend the money once I won. Buy a boat, pay off the house, finally invest millions, travel the world, and the list goes on. Unfortunately I did not cash in and am left without the millions of dollars. I did however find a company that could hit the jackpot from the increased numbers of players.

Scientific Games holds the rights to nine state lotteries and is also one of the largest instant scratch off ticket producers in the world. This article will point you in the right direction in this winning stock pick.

Scientific Games Could Benefit From Mega Millions Jackpot

Facebook's Instagram Acquisition Doesn't Add Up

The Hunger Games Brings in $155 Million

I have taken a long break from writing on this blog and recently began looking at new layouts and also some email newsletter options. In the meantime why not checkout some articles I have wrote about The Hunger Games. If you haven't looked into Lions Gate Films stock, here's what you have been missing.

Potential of an AMC/Lions Gate Merger

New Movie Franchise Hast the Potential to Transform Lions Gate Films - Recommended buying shares of LGF under $8

Lions Gate Acquires Summit Entertainment and Gets Twilight Franchise

The Hunger Games and The Avengers Added to 2012 Lineup

8 Companies Other Than LGF to Profit From The Hunger Games

Disclosure: I own shares of LGF and IMAX

Can Internet Sensation Dollar Shave Club Cut into Gillette and Schick's Amazing Razor Blade Margins?

Dollar Shave Club was founded in 2011 but didn't start taking customers until last week. Over a short period of time, the company has popped up all over the internet with articles talking about whether the company can survive and to discuss the hilarious commercial made by the small five employee company.

Top 5 ETFs for 2011

For the past three years I have released a list of top ten stocks for the year ahead. This year I decided to do a list of the top ETFs for the year. Prices are from 12/31/10.

My Top Ten Stock Picks for 2011

My Top Ten Stocks for 2011

Results for Top Ten Stocks of 2010.

 This is a brief summary of how my Top Ten Stocks for 2010 performed over the course of the year. I am working on my new list for 2011 soon.

Top Ten Stock Update-Nine Months.

I meant to do this at the end of June for a half year update but instead this nine month update will have to do.
Here is a summary of how the stocks are currently trading. Prices are as of close on September 30th, 2010. Returns are rounded to the nearest whole percent.