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Ticker Shock: La-Z-Boy, Pacific Sun Down; New CEO for MGM


Wednesday's top stories and stocks with potential to move.


Asia was in the red, but not by much. The Hang Seng and the Nikkei were both off under 1%. Earlier this morning, Europe was showing some red as well.

And here in the US we're lower at the moment. Fingers crossed.

Pacific Sun (PSUN)
Yesterday at the close, the California-based retailer put out its third-quarter numbers. Its loss from continuing ops was a nickel per share. Same-store sales also dropped 7%. But I wasn't focused so much on what it did in the third quarter as I was on what it expects in the fourth:

"As a result of additional promotional activity, and assuming a same-store sales decrease in the negative high-single digit range for the fourth quarter of fiscal 2008, the Company currently expects to report a fourth quarter loss of $(0.03) to $(0.08) per diluted share, including an estimated gain of approximately $0.11 per diluted share from the previously-announced sale of its Anaheim distribution center."

The Street was looking for a gain of $0.07.

I do want to point out, however, that it appears as though insiders may still be believers. A glance at the insider data reveals fairly sizable purchases between August and October.

La-Z-Boy (LZB)
After the close yesterday, the Michigan-based furniture company disseminated its second quarter numbers.

You better sit down for this one: Its adjusted loss came in at $0.26 per share. That's a country mile south of the penny a share gain that analysts had been expecting. In an effort to save some coin, the company will be doing some layoffs.

Given the consumer's tight grip on their purse strings, I'm not totally surprised by this news. I'm put off by a comment toward the lower part of the earnings release that indicates that the company suspended yearly guidance.

Yeah, I realize maybe I'm being too tough on the La-Z-Boy. But I do think investors and analysts may shy away from the shares.

In any case, I like the company, but I'm not encouraged to bottom-fish at this point.
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No positions in stocks mentioned.

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