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.
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.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter