Sunday is the NCAA tournament bracket selection show on CBS (ticker: CBS). So, with March Madness in the air, I thought I would take a page out of David Letterman’s book and highlight a CBS Top Ten for you:

10) CBS owns the rights to March Madnes. CBS has a $6 Billion, 11-year rights deal with the NCAA for the Tourney, with 3 years and $2.1 Billion remaining. CBS pays the NCAA a licensing fee of roughly $610 million.

9) New mobile products for the NCAA March Madness Championship are rolling out so you can have the tourney at your fingertips.

Leno’s return to late night television was too late! David Letterman’s ‘Late Show’ earned $271 Million Ad Dollars in ‘09 vs. ‘The Tonight Show’ earning $175.9 Million Ad Dollars in ‘09.

7) According to Ad Age, from Sept. 21st ‘09 to Feb. 14th ‘10, Letterman’s audience was 4.2 million viewers vs. ‘The Tonight Show’ total audience of 2.92 million viewers during a longer period from June 1st ‘09 to Jan 24th ‘10.

6) CBS’s total advertising revenues tied to the tourney are roughly $600 million — third to just the World Series and the Super Bowl.

5) According to WPP-owned Kantar Media, CBS’s online March Madness revenue totaled 5% of the overall $600 million plus ad revenue pie last year, up from 3.5% the year before and expected to edge even higher this year.

4) Fun fact: office pool betting tallied across the U.S. reaches over $3 billion for the NCAA tournament this year, with the online CBS tourney brackets being utilized the most of any online options.

3) Tiger Woods is planning his return to Golf later this month in preparation for the 2nd most-watched sports event of the year, the Masters, aired by CBS in April.

2) Insider Sumner Redstone owns over a half million shares of stock in CBS, now more shares than Viacom (ticker: VIA-B) (see my other Haute Investing Article). link to this http://www.hauteliving.com/blog/viacom-kicks-off-the-new-decade-with-viable-strength/

1) CBS’s stock is up 375% from its March ‘09 low a year ago.

In the words of Dickie V, CBS and March Madness are “awesome baby!”

Disclosure: No positions in the companies mentioned.

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Shares of Men’s Warehouse (MW) are selling off after -hours as the retailer of discount formalwear reported lighter-than-expected revenues Wednesday after the bell.  The Houston, TX based company reported an EPS loss of $0.11 for the quarter, nearly doubling it’s loss from the same period last year, but nevertheless beating Street estimates of losses of $0.16/share.  Revenue fell 4% year-over-year, coming in light at $457.2 million vs. consensus estimates of $465.9 million, pressuring shares, and gross margins before occupancy costs were down 105 bps.

On a more positive note, guidance was strong, coming in at $0.12-$0.16/share vs. estimates of $0.09.  Furthermore, same store sales of MW’s namesake brand fell just 7.1% year-over-year, improving from a drop of 9.1% for the same quarter last year.  But the revenue numbers seem to be carrying the day, as investors have pushed shares down greater than 6% during after-hours trading.  Also not helping matters were net sales, which also came in light at $457.2 million, down 4% year-over year.

MW has struggled alongside many other clothing retailers throughout the economic downturn.  Along with many of it’s brethren, MW has lowered prices to keep customers only to watch margins wither away.  Though shares have certainly enjoyed a nice run since the panic-lows of just over a year ago, it’s questionable if MW still has legs.  After rallying from under $10 to over $27 during September ‘09, shares dropped back under $20 until popping back up to $25 last week on positive retail sales data.

Tonight’s report seems to be bringing shares back down to earth, as well as putting much of MW’s recent run into question.  Until today, shares looked as though they were going to push through the aforementioned September highs, possibly offering a good trading opportunity.  It is highly unlikely they will do so now.

Last week’s positive retail sales report has many retailers, like True Religion (TRLG), which we recommended here at wallstcheatsheet.com a couple of weeks ago, thriving.  In that kind of environment, there’s no reason to get behind companies that are under-performing their peers.  So, stay away from MW for the moment, unless you’re looking for a short.

Disclosure: No holdings in MW, TRLG.

Shares of defense contractor Force Protection Inc. (FRPT) are surging after-hours following a better-than-expected quarterly report.  The company, which specializes in blast- and ballistic-proof vehicles, reported quarterly profits of $0.27/share on revenue of $289 million, good for 57% and 21% year-over-year increases, respectively.  The Street had pegged FRPT at $0.22/share on revenue of $279.1 million, and the beat has shares trading up nearly 10% as of the close of after-hours trading.

FRPT is probably best known for it’s Buffalo mine-clearing vehicle, dozens of which have been sold to the Army for use in  Iraq and Afghanistan.  However, as you can see quite plainly on the chart below, shares were beaten down mercilessly after FRPT lost out on a joint-initiative with General Dynamics (GD) last Summer.  Since then, the company has embarked on an aggressive cost-cutting strategy that aims to save $40 million/year.

Apparently, the strategy is beginning to hit the bottom line, as CEO Michael Moody exclaimed that the earnings beat was, “a direct result of solid execution on our strategic initiatives throughout the organization.”  He added that the efforts, “place [FRPT] in a solid position to broaden [it's] business by capitalizing on strategic internal and external growth opportunities.”

Shares finished up after-hours trading at $6.01, up 9.67% from the day’s close.  Shares have not traded above $6 since entering what appears to be a conventional rectangular box pattern in mid-October and have not risen above $6.30 since losing 50% of it’s market cap in one week following the loss of the aforementioned contract opportunity.  FRPT’s fundamentals are still, shall we say, ‘iffy,’ though the cost cutting initiative definitely seems to be taking hold.

If you’re looking for a trade, the buy-point here is at $6.25, or $0.10 above the first down-bar of the pattern in the weekly chart below.  If it can break out above that point tomorrow, particularly on high volume, you might be able to capture a solid short-term profit.  Just be sure to keep a careful eye on volume, as light volume is a typical indicator of a false breakout, in which case you would want to stay away.

Disclosure: No holdings in FRPT, GD.

Coinstar (ticker: CSTR) is fast-becoming an emerging momentum play. The company is approaching a $1 billion enterprise due to their red hot Redbox located at the front of every grocery store all over the country.

Redbox dishes out DVD rentals for only a $1 with plenty of feature titles licensed from Paramount Home Entertainment, a division of Viacom (see: http://www.hauteliving.com/blog/viacom-kicks-off-the-new-decade-with-viable-strength/). Gary Cohen, SVP of Redbox, said, “From road warriors to moms on the run, the iPhone app from Redbox helps customers rent and reserve at any of the thousands of neighborhood locations nationwide.”

Recently, the iPhone app from Redbox surpassed 1 million downloads. Keep a close eye on Coinstar as they steal more business from Blockbuster.

Meanwhile, Netflix (ticker: NFLX) has a market cap over 3 times that of Coinstar. Founder and CEO Reed Hastings possesses the key leadership quality of adaptability — a quality he must have learned while serving in the Peace Corps in his younger days.

His company’s stock has doubled over the past year and grown to serve over 12 million subscribers. Analysts forecast Netflix to double their subscriber base by 2016. A key catalyst is their continuing investment in streaming online movies, ultimately the customer’s next destination for viewership.

On the flip side, Blockbuster (ticker: BBI) was just too late to the online game. The company is now a penny stock! Blockbuster is like an old-fashioned travel agency in the early 90s that didn’t see the Internet boom coming. Eventually, the old-fashioned, traditional travel agencies were run over by online travel agencies like Expedia, Orbitz and Yahoo! Travel. Lesson learned by Blockbuster: adapt to change, otherwise get left behind.

Lastly, keep your eye on TiVo (ticker: TIVO). This week, TiVo announced they are ready to release new DVRs this spring. Unlike the current models, critics are calling the new device a solution to integrating TV and Internet content.

The TiVo Premiere is the answer to the company’s urgency to spark the growth of its stagnant 1.5 million customer base. Price could be an issue, as the new DVRs will range from $299-$499 in addition to required subscription fees ranging from $12.95 a month to $299 for three years.

TiVo CEO Tom Rogers said, “We’re moving toward get anything you want whenever you want it.” A search for Penelope Cruz on the new TiVo DVRs would bring up her movies that are showing soon on TV, available for rental or purchase through Amazon.com (ticker: AMZN), as well as related YouTube videos. Sounds like a convenient one-stop shop library for those willing to pay.

Furthermore, TiVo just won an intellectual property case worth $300 million against EchoStar Communications Corp. (ticker: SATS) the parent company of Dish Network Corp. (ticker: DISH). The win means companies like Comcast Corp. (ticker: CMCSA) and DirecTV (ticker: DTV) must enter into commercial arrangements with TiVo which will yield future licensing fees.

Three new pioneering options are unfolding before our eyes. Which one will you integrate into your experience? Your answer may lead to a great investment.

Disclosure: No positions in the companies mentioned.

To get entry points, stop-loss points, and profit targets for our fresh March watch list stocks and Featured Trade, simply try a 14-day complimentary trial to Wall St. Cheat Sheet Premium by visiting here:

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Shares of Take Two Interactive Software Inc. (TTWO)  popped during after-hours trading following it’s report of a narrower-than-expected quarterly loss.  The producer of smash hit video games such as “Grand Theft Auto” and “Borderlands” reported a net loss of $33.9 million, or $0.43/share, compared with a net loss of $50.4 million, or $0.66/share, for the same quarter last year.  Consensus estimates were looking for a loss of $0.51/share.

The Street has taken news of the beat kindly, pushing shares up 5%+ during after-hours trading.  Among the highlights of the quarterly report were a 9% year-over-year gain in net revenue and better-than-expected sales of “Carnival Games,” which is now the third best selling game for the Nintendo Wii that is not produced by Nintendo.  Sales of online add-ons for Borderlands outperformed as well.

In then end though, the market is a forward-looking mechanism, and as such, Wall St. really only  cares about guidance.  This is especially so in the case of companies like TTWO that have suffered several consecutive quarterly losses.  Lucky for them, CEO Ben Feder painted a rosy[er] than expected outlook for the coming Q as well as for FY 2010.  In addition to a cost-cutting initiative that is set to yield 9% year-over-year savings in 2010 and 16% thereafter, Feder announced that “BioShock 2″ has shipped over 3 million copies since it’s early-February release.  As a result, the revenue outlook for the coming quarter was given a mid-point of $275 million, beating Street expectations of $267 million.

Shares finished after-hours trading at $9.54, good for a 5.65% move in the right direction.  If it can push through resistance at $9.96, there’s a good chance it can rally up towards $11.  There’s no question that TTWO has rolled out a long line of hits, but we also still have to remember that it’s trading under $10 for a reason.  One look at that gap down in early-December is all it should take to remind you to proceed with caution on this one.  But if you’re looking for a high-Beta play on the potential for a consumer recovery, or just a quick 10% – 15% trade, TTWO is definitely worth a look.

Disclosure: No holdings in TTWO.

Movie theater operator Carmike Cinemas, Inc. (CKEC) beat earnings estimates by a significant margin Monday after bell, reporting it’s most profitable quarter in over two years.  The company, which operates over 250 movie theaters containing over 2,200 screens across 36 states reported quarterly EPS of $0.48 on revenue of $137.4 million.  Street consensus had CKEC’s numbers pegged at $0.09/share on revenue of $126.2 million.  That’s a greater than 5X beat on EPS, and as you might imagine, shares are trading up big after-hours.  This is only the second time in two and a half years that CKEC reported a quarterly profit.

Unquestionably, CKEC benefited greatly from a record-setting quarter out of Hollywood that included 9 movies grossing over $100 million.  CKEC saw a 12% increase in total attendance year over year even though admission were raised 7.1%.  The company was also able to cut expenses by 16%.  However, concessions spending contracted marginally, down .9% in terms of spending per customer.  CEO David Passman was optimistic for FY 2010 “given an upcoming slate that includes many promising 3-D titles as well as highly anticipated traditional movies.”  CKEC has equipped 22% of it’s screens for 3D movies thus far.

Many in the industry, as well as on the Street, believe that the strength we are seeing out of Hollywood is due not only to mega-hits like Avatar, but our sluggish economy as well.  For many families and young adults across America, going to the movies may be a trade down from other more expensive activities.  If that is in fact the case, then barring a swifter-than-expected recovery, this trend is likely to continue.

Still, even if the trend does continue, don’t jump into CKEC unless you’ve got a strong stomach.  As you can see, Carmike is no stranger to sweeping moves in both directions, so any money you throw behind the shares should come from a more speculative part of your portfolio.  Shares gained 4.4% during regular trading and another 7.37% during the after-hours session, finishing up at $10.20.

Shares closed for the day near a potential inflection point, right at levels where they had gapped down from after the company’s last earnings report.  Now CKEC is set to open well above that point, and about 10% below it’s 52-week high of $11.54.  Since shares have already run up a fair amount, the safe bet for a trade would probably be to wait and see if shares can demonstrate some consistent strength and push through those highs.  Carmike can definitely be a good high-beta play on out-performance in the film industry, but this stock is not worth a large position in your portfolio by any means.  For a more stable, diversified play on Hollywood I would recommend Viacom (VIA-B) or Disney (DIS).

Disclosure: No holdings in CKEC, VIA-B, DIS.

In case you were distracted by Ben Bernanke’s testimony last week, an interesting trend in consumer behavior is taking shape during this year’s tax-filing season.

Based on news from the top tax service companies, you will see individuals are in a very cost conscious state-of-mind. Consumers are quickly selecting the cheaper of the two options: preparing your own tax forms.

In this week’s Edge, we look at H&R Block, Intuit, as well as a quick snapshot of Jackson Hewitt.

H&R Block (HRB): $17.28 The “Hamburger Helper” of Tax Prep

Shares were crushed last Wednesday after the company warned they would miss their puffed up 2010 earnings outlook. H&R Block had expected fiscal 2010 earnings from continuing operations to amount to $1.60 to $1.80 a share. The consensus estimate from analysts polled by Thomson Reuters is at the low end of that range, $1.61 per share.

Past quarter earnings are due out after the bell on March 8th. The current estimate of analysts polled by Thomson Reuters is for a profit of $.16 cents per share on revenue of $959.2 million.

CEO Russ Smyth said, “We believe industry filings are down significantly due to the recession and sustained, high levels of unemployment … the weak economic conditions have also contributed to a greater shift to do-it-yourself tax preparation methods among first-half clients.”

Comment: The Kansas City-based tax services giant has prepared 6.3 percent fewer tax returns — 10.06 million — through Feb. 15 than during the same span last year (10.7 million tax returns prepared). H&R Block will just have to bear the brunt of less clients and more empty desks at their retail locations this season.

Intuit (INTU): $32.36 The Do-It-Yourself Software Provider

The maker of Turbo-Tax earned $.34 cents per share vs. $.26 cents per share in the same period a year ago. Consensus estimates were expected to be $.32 cents per share, an upside beat for Intuit.

Revenue in the most recent quarterly report increased 8%, better than analyst expectations.

President and CEO of Intuit Brad Smith said on the quarterly conference call, “We’re off to a good start and we’re on track to deliver better than expected revenue and earnings growth for fiscal year 2010.”

Sales of best-in-class TurboTax products jumped 11%. Intuit reported selling 10.97 million TurboTax products compared to 9.9 million in the same period a year ago. The web-based version of the product saw a 23% gain in sales, a sign that online tax preparation is leading the way this season.

Comment: Management recently raised full-year guidance estimates for revenue and profits. Also, It’s important to note that Director David Batchelder purchased a sizable insider stake of over 12.5 million shares on December 15, 2009 when the stock was around $30 per share — only slightly lower than today’s price of $32.36 per share. Initial signs show Intuit with a strong start in capturing the demand for do-it-yourself tax prep.

Jackson Hewitt (JTX): $2.44 The Franchise with Ugly Financials

Fiscal 2010 3rd Quarter earnings results are scheduled for March 11, 2010.

Comment: JTX is quickly burning cash. The company has only $60K in cash remaining relative to $311 million in debt obligations. I would steer clear of this company until the financials improve; otherwise, you might get caught holding the bag as this company files for bankruptcy in the near future or becomes a penny stock.

Among the three tax preparation players highlighted above, Intuit is definitely the safest trend play, while H&R Block and Jackson Hewitt are the contrarian higher-risk pullback plays. Jackson Hewitt is definitely the weakest of the three companies, but still possesses a recognized brand name in the marketplace. Consumers do not mind the hold-your-hand service when they have the extra cushion. However, companies like H&R Block are coming to realize the cushion is either minimal or non-existent for most individuals filing taxes this year.

Disclosure: No positions in the companies mentioned.

To get entry points, stop-loss points, and profit targets for our watch list stocks and Featured Trade, simply try a 14-day complimentary trial to Wall St. Cheat Sheet Premium by visiting here:

http://wallstcheatsheet.com/newsletter/

True Religion Apparel Inc. (TRLG) beat Q4 earnings estimates Wednesday after the bell, boasting profits of $0.59/share, $0.03 ahead of consensus estimates.  Revenues rose 27.1% year-over-year to $92.8 million, the most the designer, retailer and distributor of high-end jeans has ever seen in a single Q, and well ahead of the Street’s $84.5 million estimates.  Additionally, management announced that they intend to open 28 new stores in 2010.  Considering that TRLG’s jeans typically sell in the $200-$300 range, it is apparent that not all consumers feel the pain of the “Great Recession” equally.

On a more solemn note, management’s FY 2010 projections came in a tad shy of estimates.  EPS forecasts now stand at $2.00-$2.10 vs. consensus estimates of $2.12.  Revenue forecasts, however, came in at $360 million, good enough for a slight beat of the $347.66 million Street consensus.  These revenue estimates assume 40%-45% growth in direct sales in 2010, which assume the company is able to successfully open all 28 of the aforementioned new stores planned for the year.  Wholesale revenues are expected to decline in 2010 largely due to management’s decision to slow down sales into the off-price channel and place a greater emphasis on selling to regular-price destinations.  Hey, if they beat estimates selling $300 jeans in this economy, maybe they know what they’re doing.

TRLG closed the day up 3.28% and added another 3.71% following the report, finishing up after-hours trading at $21.55.  The stock has been held under $22 since gapping down in early-November and it’s 200-day moving average crossed through it’s 50-day just before the new year, never a good sign.  If you’re looking for an investment I would wait to see if they can come through on some of their revenue assumptions, especially new store openings.  Last Q was a bit of a disaster so you’ll want a bit more proof that TRLG is on the right track before you commit to a long-term holding.  But for a trade, I would say that you can buy on a breakout above $22.16, especially on volume, looking for a 10% to 20% move.  Just remember to keep a tight stop (8% max).

Disclosure: No holdings in TRLG.

Shares of Buenos Aires-based MercadoLibre, Inc. (MELI) sold off hard during after-hours trading following a narrow earnings miss.  The “Latin American eBay,” as some refer to it, reported EPS of $0.26 on revenue of $49 million, coming in shy of estimates on both accounts.  Street consensus called for EPS of $0.27 on revenue of $59 million.  Shares, which finished regular trading down 2%, are down an additional 10% after-hours.

Perhaps the greatest motivator behind the earning shortfall was a negative currency impact due to Hugo Chavez’s decision to devalue the Bolivar on Jan. 9th.  MELI, which does significant business in Venezuela, decided to translate financial results from its Venezuelan operations at the “parallel” exchange rate of 5.67 bolivars instead of the official rate which was 2.15, and is now 4.3. Excluding the impact of these changes, revenue for the Q would have come in at $56.0 million.  This would have been much closer to consensus estimates, not to mention a 67.5% year-over-year gain.

Including the currency impact, revenue increased 46.5% year-over-year, profits 44%.  Specifically, MELI’s Marketplace segment (it’s actual e-commerce operation) grew 31.1% and it’s Payments segment (MercadoPago – the equivalent of PayPal) grew 100.9%.

On the chart below, the circle denotes the announcement of the Bolivar devaluation.  As you can see, shares sold off for about a month before finally stabilizing and then staging a bit of a rally.  At the close of after-hours trading, shares were changing hands at $36.83, right around the line on the chart.  This is also where shares bottomed out earlier this month, as well as the locale of the 200-day moving average.

Long-term, the thesis behind MELI remains intact.  The company is still showing significant growth and is less than 1/15 the size of eBay, it’s American counterpart and largest shareholder.  But, while MELI’s potential is undeniable, the stock is likely to continue to experience these kinds of volatile moves.  I would recommend waiting to see if shares can hold their 200-day MA over the next few days.  If they can, I would consider this a good opportunity to start a position for the long-term, as well as potentially for a trade back into the $40 – $44 range.

Disclosure: No holdings in MELI.

Serial destroyer of earnings estimates Priceline.com (PCLN) has done it yet again.  The online travel company reported EPS of $1.99 excluding items such as stock-based compensation on revenue of $541.8 million.  These results handily beat estimates of $1.68 and $529.8 million, and were good for 54% and 33% year-over-year gains.  Guidance was strong as well, as management forecasted Q1 2010 EPS of $1.54 – $1.64, well above Street estimates of $1.41.  Priceline has now beaten analyst estimates by at least $0.18/share for six consecutive quarters.

Gross bookings grew 81% YOY internationally and 21% in the U.S., and total hotel nights grew 60% overall.  The report prompted one industry analyst to remark that, “everything in the online travel industry is looking up,” but Priceline’s CEO Jeffrey Boyd tried to cool things off a bit.  He noted that the growth in gross bookings was due not only to the strong underlying fundamentals of the industry, but also to “weak results in the prior year period amidst the global recession and improving currency and ADR comparisons.”  As a result, he warned that investors should not expect such extremely outsized gains going forward, though just regular outsized gains will likely do the trick.

PCLN has a real habit of gapping up on earnings and it’s hard not to admire the way the stock can move on good news.  Leading into the report shares had been forming a nice cup-with-handle base dating back to about December 29th, but shares gapped right past the potential $230.59 buy-point in fast trade.  It’s hard to get behind a stock that is up so much over the past year, but it is worth noting that shares had been trading around the 200-range since early-Novemeber, indicating a level of comfort for the shares at those levels.

As far as a trade is concerned, gapping up out of any pattern on high volume is very bullish, but the fact that shares were not actually allowed to form a proper cup-with-handle may be cause for worry.  Considering the news out of the Fed has Dow futures down about 100 points after-hours, I’d recommend waiting to see if PCLN can perhaps form a handle on it’s incomplete cup and then buying on a breakout from there.

Disclosure: No holdings in PCLN.