QUOTE AND NEWS
Market Intelligence Center  Sep 29  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Jarden (JAH) could yield about 3.56% (24.03% annualized, for comparison purposes only) in 54 days. Pair a long position in the stock with the Nov. '14 $60.00 call for...
TheStreet.com  Sep 23  Comment 
Story updated at 10 a.m. to reflect market activity. NEW YORK (TheStreet) --aJefferies raised its price target for Jarden to $73 from $70 Tuesday, reiterating its "buy" rating for the stock. Shares of Jarden gained 1.1% to $60.82 in morning...
Market Intelligence Center  Sep 11  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Jarden (JAH) that includes 5.88% downside protection. Sell one contract of the Jan. '15 $60.00...
Market Intelligence Center  Sep 10  Comment 
For a hedged play on Jarden (JAH), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jan. '15 $60.00 covered call for a net debit in the $57.06 area. That is also the break-even stock price for the covered call. This...
Benzinga  Sep 6  Comment 
CNBC Fast Money's Tim Seymour said on the show that viewers should stay in ProShares UltraShort 20+ Year ETF (NYSE: TBT). The ETF gained 0.37 percent on Friday. Pete Najarian likes the airlines stocks, and he believes that United Continental...
Market Intelligence Center  Sep 5  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Jarden (JAH). Look at the Jan. '15 $60.00 covered call for a net debit in the $57.25 area. This trade has a duration of 134 days....
Market Intelligence Center  Aug 29  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Jarden (JAH) that should provide a 2.55% return in just 141 days. Sell one Jan. '15 call at the $55.00 level for each 100 shares of Jarden...
TheStreet.com  Aug 26  Comment 
NEW YORK (TheStreet) -- RATINGS CHANGES Goldman Sachs was initiated with a buy rating at MKM Partners. Twelve-month price target is $213. The company can post ROE expansion, MKM said. Hewlett-Packard was upgraded to buy at TheStreet...
Benzinga  Aug 26  Comment 
Analysts at Deutsche Bank initiated coverage on Jarden (NYSE: JAH) with a Buy rating. The target price for Jarden is set to $70. Jarden shares have jumped 34.83% over the past 52 weeks, while the S&P 500 index has jumped 22.54% in the same...
SeekingAlpha  Jul 24  Comment 
Jarden (NYSE:JAH) Q2 2014 Earnings Call July 24, 2014 8:30 am ET Executives Rachel Wilson - Martin Ellis Franklin - Co-Founder and Executive Chairman Alan W. Lefevre - Chief Financial Officer and Executive Vice President of...




 
TOP CONTRIBUTORS

Jarden Corporation, (NYSE: JAH) a U.S. consumer products manufacturer, owns brands in more than twenty niche markets. The conglomerate makes everything from Mr. Coffee kitchen appliances to Coleman camping products and Bicycle and Bee playing cards. Because Jarden's brands are concentrated in mature, slow-growth markets, [1] the company has seen little organic growth in recent years and has used acquisitions to grow revenue. With approximately $2 billion in debt, the company is highly leveraged and will find further acquisitions more difficult in the face of tightening credit conditions that began in 2008.

Jarden also faces growing competition from its own customers' private label brands. Mass retailers like Wal-Mart are offering fewer third party products as they try to bolster slowing profits with extra revenue from their own lines of generic consumer goods.

Company Overview

As a consumer goods conglomerate, Jarden covers a wide spread of markets. The company has aggressively pursued revenue growth in the past through acquisitions- however, this has not led to significant growth in its net income. To improve its results, the company's management plans to take fuller advantage of potential economies of scale in its manufacturing processes.

Business Financials

In 2009, JAH earned a total of $5.2 billion in revenues. This was a decline from its 2008 total revenues of $5.4 billion. However, despite the decrease in revenues, JAH was able to improve its net income. Between 2008 and 2009, JAH went from a net loss of $59 million in 2008 to a net profit of $129 million in 2009.[2]

Business Segments

JAH operates three primary business segments: Outdoor Solutions, Consumer Solutions and Branded Consumables.

Outdoor Solutions

The Outdoor Solutions segment manufactures or sources, markets and distributes global consumer active lifestyle products for outdoor and outdoor-related activities. For general outdoor activities, Coleman® is a leading brand for active lifestyle products, offering an array of products that include camping and outdoor equipment such as air beds, camping stoves, coolers, among others.[3]

Consumer Solutions

The Consumer Solutions segment manufactures, markets, and distributes a diverse line of household products, including kitchen appliances and personal care and wellness products for home use. This segment maintains a strong portfolio of globally recognized brands including Bionaire®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam® and Villaware®.[4]

Branded Consumables

The Branded Consumables segment manufactures, markets and distributes a broad line of branded consumer products, many of which are affordable, consumable and fundamental household staples, including arts and crafts paint brushes, children’s card games, among others.[5]

Key Trends and Forces

Private Label pressures from major customers

The mass retailers and department stores that Jarden sales its products to are increasingly moving toward private label brands. These brands are typically marketed under the retailer's brand name and come with higher margins than traditional branded products.

Dependency on mass retailers

Jarden's dependency on mass retailer (Wal-Mart Stores (WMT) alone accounted for roughly a quarter of Jarden's total sales. This exacerbates the threat from generic or private-label competition. When Wal-Mart and fellow big-box retailers push their own private-label alternatives to compensate for lower overall retail revenue, Jarden feels the squeeze. The effects of private-label competition are most pronounced in the Branded Consumables segment and in the camping-oriented Coleman product lines.

High commodity costs hurt already declining margins

Low commodity prices are vital to a company like Jarden, since its successful integration of mature low-margin businesses depends on the creation of cost-reducing production and distribution synergies for growth. Thus, rising oil prices put Jarden's cost structure under pressure, especially since its manufacturing business requires vast quantities of energy-derivative materials like resin (see Plastics Prices) and fuel.

Outdoor Solutions sensitive to weather

Jarden's Outdoor Solutions segment is highly responsive to variations in weather patterns. For instance, seasons of heavy snow increase demand for Jarden's various winter sports brands, and thus raises sales for the affected quarters. Similarly, a warm, dry autumn could increase demand for Jarden's Coleman line of camping products (currently one of its weaker offerings).

Competitors

Jarden's spread-out nature makes it impossible to pinpoint a single main competitor. Apart from a few relatively similar consumer goods/appliances conglomerates like Newell Rubbermaid (NWL), which has numbers roughly parallel to Jarden's for earnings and revenue in both business segments, Jarden's primary competitors are conglomerates whose holdings overlap with Jarden's in only a handful of niche markets, small companies entirely invested in niche markets (like Lifetime Brands (LCUT)), and private label competitors, some backed by hefty retailers like Wal-Mart Stores (WMT).

References

  1. Seeking Alpha, "Are Jarden's Earnings Set to Implode?"
  2. JAH 10-K 2009 Item 6 Pg. 36
  3. JAH 10-K 2009 Item 1 Pg. 2
  4. JAH 10-K 2009 Item 1 Pg. 4
  5. JAH 10-K 2009 Item 1 Pg. 7
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