Ticker Shock: Hot Topic No Longer On Fire
Thursday's top stories and stocks with potential to move.
Asian stocks ended the session mixed. The Hang Seng was up 1.23% and the Nikkei was off 0.64%. However, European stocks were in positive territory earlier this morning. And here in the US, we're currently trading higher.
Here's what I'm seeing this morning:
Hot Topic (HOTT):
The retailer's comps for the month of August were down just over 8% -- 8.1% to be exact. That's not the end of the world and certainly not the worst performance I've seen in retail over the last few months.
However, it was steeper than the 6.9% decline the Street had been looking for.
1. Hot Topic had been the talk of the town earlier in the year as its stock was rockin', but that's changed. It's going to take a while for it to regain the same kind of investor interest. These comp results don't help.
2. Though my ears perk up a bit with the stock under $7, it's still not enough for me to pull the trigger. The EPS estimates for this year and next have been on the way down over the last 30 and 60 days.
3. This is one I'm interested in, but I believe there will be a better time to punch this ticket.
For my previous take on Hot Topic, see Ticker Shock: Three Reasons Hot Topic Isn't, Well, A Hot Topic.
The homebuilder disseminated its third-quarter numbers. The company reported a fat loss, and it missed on the revenue line as well.
Some quick thoughts:
It's not that I don't like the company. It's that I can't find a reason to like the stock. It's under $5, which is a turn-off, and the losses that are expected are a colossal bummer, too. Additionally, estimates for this year and next have been on the way down (ironically getting my blood pressure up).
For my last take on Hovnanian, click here.
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