6 Miami Companies Heating Up with LeBron James
Cleveland fans are angry and still in denial, while South Florida is jumping for joy and celebrating the region’s king catalyst for the housing market turnaround. On the evening of July 8th, LeBron James officially placed a catalyst for a potential bottom on the fledgling South Florida condo and housing market. Season tickets at American Airlines were already sold out in anticipation of the King James arrival to the city of Miami. In the words of Minyanville’s Todd Harrison today, ‘Inspiration is a beautiful thing.’ Nobody could be more excited and inspired with the King James confidence booster than the following employees of these 7 companies:
Carnival Corp. (CCL)
Not only does Carnival Corp. employ over 80,000 people (over 3,500 in the city of Miami), but the Chairman and CEO of Carnival Micky Arison is also the owner of the Miami Heat. One of Forbes’ wealthiest people in the world is about to get a whole lot wealthier with the addition of King James to Miami. Demand for Heat tickets is so high right now the Heat organization had to suspend sales due to lack of resources to handle the call volume and a crashing website at one point. Carnival (CCL) shares have experienced a pullback with the overall market selloff and are finding support at $29 per share. Carnival also pays a 1.3% annual dividend to its shareholders. There is room for concern on over $9 Billion of Carnival’s debt. However, refinancing their debt in this low interest rate environment should bode well for the company as they continue to achieve over $13 Billion in annual revenue, a number expected to rise going forward.
Lennar Corp. (LEN)
Miami-based homebuilder Lennar Corp (LEN) employs almost 4,000 people and desperately needed some relief efforts to the South Florida housing market. Look no further, LeBron James is on his way and the world’s tourist attention is now focused on how they can plan to see him play and sight him on South Beach in his leisure time. On June 29th, Lennar COO and VP Jonathan Jaffe purchased 91,088 shares of company stock at $14.12-$14.14 for a total investment in the company of $1.287 million dollars. LEN continues to pay an annual dividend of 1.2% and holds stock support at $12 per share.
American Airlines Corp. (AMR)
The hometown arena for the Miami Heat is American Airlines Arena. American Airlines (AMR), employer to almost 80,000 people, stands to benefit from the improved brand awareness Miami Heat will bring to the American Airlines Arena. In addition to the arena sponsorship, expect the number of flights to increase into Miami International Airport to witness the Big 3 in action – Dwayne Wade, LeBron James and Chris Bosh. We typically do not invest in airlines due to their constant heavy capital investment and debt-burden. AMR is trading in the LeBron James potential jersey number zone of $6 per share.
Royal Caribbean Cruises Ltd. Co. (RCL)
Over 59,000 employees of Royal Caribbean Cruises (RCL) serve the leisure, tourism and vacation business from their headquarters in Miami, FL. RCL delivers $28 per share in revenue while the company trades a little above $24 per share. With a book value of close to $35 per share, these discounted Miami shares may be a great place for you to position your King James portfolio.
PetMed Express Inc. (PETS)
One of our favorite Wall St Cheat Sheet Premium stock picks, which saw a 4-month rise of 36% for our premium subscribers, PetMed Express Inc. (PETS) is a leading online discount retailer of pet medication and supplies. PETS carries zero debt on their balance sheets and is paying out a 2.3% annual dividend to shareholders. We continue to like the fundamentals of PETS and believe it is a strong longer term small cap play.
McClatchy Company (MNI)
The owner of the Miami Herald is feeling restored faith in reviving the newspaper brand founded in 1903 and has been awarded 20 Pulitzer Prizes. According to Yahoo! Finance, McClatchy (MNI) is reporting $17 in revenue per share. The stock currently trades in the mid $3 range, severely beaten down from the $7 share price is fetched in April earlier this year. The MNI selloff could be presenting you an opportune buying opportunity. MNI is attempting to stay on the aggressive deal making path (i.e. closing a deal with social shopper Groupon), in an effort to sustain their traditional business model and adapt to the undergoing ‘Guttenberg Moment’ in the media industry.
The brilliance and Midas touch of Miami Heat President Pat Riley proved once again that players invest in proven leaders. James unselfishly took a pay cut, along with Chris Bosh, in order win and win for the long term. “The numbers are not finalized,” James said. “All three of us are going to take less money. We all wanted to play alongside each other. Hopefully Pat [Riley] and Micky [Arison] can bring some guys in to help us out. I’m not getting a max deal. I’m taking one less year and I’m getting less to be in Miami.”
The building of a Miami basketball dynasty and an accelerating South Florida economy is upon us. Pat Riley won 5 championships in his coaching career and is now prepared to add more to his ring collection very soon. Can you feel the Summer Heat? Miami sure is feeling it…