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Stock Market & Financial Investment News

News Breaks
August 14, 2014
10:36 EDTMSO, M, HSNI, JCPEarnings Preview: Analyst sees J.C. Penney reporting positive Q2 comps
J. C. Penney (JCP) is scheduled to report second quarter earnings after the market close on Thursday, August 14, with a conference call scheduled for 4:30 pm ET. J.C. Penney operates about 1,100 retail stores and jcp.com. EXPECTATIONS: Analysts are looking for a loss per share of (93c) on revenue of $2.79B, according to First Call. The consensus range for EPS is ($1.13)-(65c) on revenue of $2.71B-$2.86B. LAST QUARTER: J. C. Penney reported first quarter EPS of ($1.16), against estimates for ($1.25), on revenue of $2.8B, against estimates for $2.71B. Comparable store sales increased 6.2% for the quarter. The retailer forecast Q2 SSS up in the mid single digits and said the gross margin would improve sequentially against the prior year period. For fiscal year 2014, J.C. Penney forecast same-store sales up in the mid-single digits with gross margin up "significantly" versus the prior year. On its Q1 earnings conference call, the company said that it expected to be cash flow neutral this year and that it sees working capital as a source of funds in 2014. NEWS: Shopper visits to physical stores, not specifically J.C. Penney but all U.S retailers, fell by nearly 7% in June and nearly 5% in July, according to data firm ShopperTrak, reported The Wall Street Journal. The report noted that physical store visits have fallen by 5% or more from a year earlier in every month for the past two years in the U.S. The WSJ also reported that Mindy Grossman, CEO of HSN (HSNI), was considered the lead candidate for J.C. Penney Chief Executive Officer Myron Ullman's position. Grossman had been in talks with J.C. Penney but could not agree on terms and negotiations broke down "months" ago, the Journal added in its July 13 report. During the quarter, J.C. Penney appealed a New York state court decision that ruled the company interfered with a contract between Macy's (M) and Martha Stewart (MSO) by selling the celebrity's home products. STREET RESEARCH: Craig-Hallum upgraded J.C. Penney shares to Hold from Sell earlier this week. The research firm expects the Q2 report to reflect better than expected comps from a stronger inventory position and improving vacancy rates in its malls, but remains cautious longer-term given gross margin pressures from outsized e-commerce growth. Piper Jaffray believes a turnaround is "very much underway" at the retailer and says the company is on a path to reclaim $2B-$3B of its $6B revenue loss following a change in management. The firm sees positive comps in Q2 and the second half of 2014, it stated in a report published July 31. PRICE ACTION: Since the day after its last earnings report, J. C. Penney shares are up about 12.5%. In morning trading today ahead of tonight's Q2 report, J. C. Penney's stock is up 0.5% to $9.40.
News For JCP;M;MSO;HSNI From The Last 14 Days
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July 1, 2015
10:35 EDTMMacy's pulling Donald Trump brand merchandise from stores, CNN reports
Following recent controversial comments by Donald Trump, Macy's says it will remove his brand merchandise from its stores, CNN reports. In a statement, the retailer says, "In light of statements made by Donald Trump, which are inconsistent with Macy's values, we have decided to discontinue our business relationship with Mr. Trump and will phase-out the Trump menswear collection, which has been sold at Macy's since 2004." Reference Link
June 30, 2015
15:20 EDTJCPMoody's raises J.C. Penney liquidity rating to SGL-1 from SGL-2
Moody's Investors Service revised J.C. Penney's rating outlook to positive from stable. Moody's also affirmed the company's Caa1 Corporate Family Rating, and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-2. "The rating outlook revision to positive from stable reflects Moody's view that JC Penney's operating performance has shown signs of improvement as a result of better merchandising, cost controls, and integration of its online business" said Moody's Vice President Scott Tuhy. He added, "we have seen positive momentum building for the company to achieve $700M to $800M of adjusted EBITDA, a level in which earnings would fully cover cash flow and interest". The upgrade in the Speculative Grade Liquidity rating primarily reflects the company's improved operating performance as we expect free cash flow to be near break-even levels and the company's meaningful cash balances are sufficient to cover expected seasonal working capital needs.
June 29, 2015
17:47 EDTMMacy's CEO was hesitant to lauch outlet chain, Fortune says
Macy’s CEO Terry Lundgren stated that he was the obstacle in the way of Macy's opening a chain of outlet stores saying, "I really didn't want this business," reports Fortune. Reference Link
16:22 EDTMOn The Fly: Top stock stories for Monday
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10:37 EDTMMacy's falls after downgrade, levels to watch
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10:09 EDTMOn The Fly: Analyst Downgrade Summary
Today's noteworthy downgrades include: Assured Guaranty (AGO) downgraded to Neutral from Buy at BTIG... Capital Bank (CBF) downgraded to Hold from Buy at Sandler O'Neill... F5 Networks (FFIV) downgraded to Neutral from Overweight at Piper Jaffray... First BanCorp (FBP) downgraded to Neutral from Buy at Guggenheim... Gannett (GCI) downgraded to Hold at Jefferies following spin-off... IBERIABANK (IBKC) downgraded to Hold from Buy at Sandler O'Neill... JPMorgan (JPM) downgraded to Perform from Outperform at Oppenheimer... KYTHERA (KYTH) downgraded to Market Perform from Outperform at Leerink... MBIA (MBI) downgraded to Neutral from Buy at BTIG... Macy's (M) downgraded to Sell from Buy at Deutsche Bank... MarketAxess (MKTX) downgraded to Underperform from Neutral at Macquarie... Nutrisystem (NTRI) downgraded to Market Perform from Outperform at Barrington... Park Sterling Bank (PSTB) downgraded to Hold from Buy at Sandler O'Neill... Popular (BPOP) downgraded to Neutral from Buy at Guggenheim... Qualcomm (QCOM) downgraded to Sell from Hold at Drexel Hamilton... SunTrust (STI) downgraded to Perform from Outperform at Oppenheimer... Ternium (TX) downgraded to Neutral from Buy at BofA/Merrill... Xoom (XOOM) downgraded to Neutral at Susquehanna... Youku Tudou (YOKU) downgraded to Underperform from Neutral at Mizuho.
09:53 EDTMMacy's retreats after Deutsche cuts to sell, says real estate sale unlikely
The shares of Macy's (M) are falling in early trading after research firm Deutsche Bank downgraded the stock to Sell from Buy, saying that the retailer is facing numerous challenges. WHAT'S NEW: Macy's same-store sales are likely to remain "anemic," partly due to tourism headwinds and increased competition from its own vendors, Deutsche Bank analyst Paul Trussell wrote in a note to investors earlier today. Meanwhile, the company's earnings before interest, taxes, depreciation and amortization is likely to remain "flattish," partly because of higher shipping and healthcare costs and lower leverage on its sales, the analyst stated. Given all of these challenges, Macy's profit growth will probably not exceed high single digit percentage levels over the next couple of years, while its share repurchases will probably be reduced, Trussell said. Although Macy's could drive significant value by monetizing its real estate portfolio, it's unlikely to do so, according to Trussell. WHAT'S NOTABLE: On June 2, Reuters reported that Macy's would listen to a request by hedge funds who were asking the company to consider options for its real estate holdings. However, the company was worried that selling real estate and then leasing it back would saddle it with significant leasing costs, the news service noted. PRICE ACTION: In early trading, Macy's fell 2.1% to $68.38.
06:28 EDTMMacy's downgraded to Sell from Buy at Deutsche Bank
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June 26, 2015
09:12 EDTMSOPlymouth Lane urges Martha Stewart to conduct 'robust' process during go-shop
Plymouth Lane Capital, a holder of a 10.9% stake in Martha Stewart Living Omnimedia, stated in a regulatory filing that the investor intends to engage in a constructive dialogue with the company's management, board, and other relevant parties or stakeholders, regarding matters that may include, without limitation, steps to maximize shareholder value and to "encourage a timely, proactive, and robust marketing process" in order to obtain acquisition proposals during the "go-shop period" as set forth in its previously announced merger agreement with Sequential Brands Group (SQBG).
June 25, 2015
06:20 EDTMSOMeredith, Iconix among those looking at Martha Stewart, NY Post reports
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June 24, 2015
10:26 EDTJCPStocks with call strike movement; TWTR JCP
Twitter (TWTR) December 40 call option implied volatility increased 1% to 44, J.C. Penney (JCP) November 20 call option implied volatility decreased 5% to 42 according to IVolatility.
June 23, 2015
08:03 EDTMSOMartha Stewart a great addition to Sequential Brands, says Brean Capital
Brean Capital said Martha Stewart (MSO) is a great addition to Sequential Brands' (SQBG) portfolio citing its brand awareness and the diversification of its platform. The firm believes many of its brands are in the early stages of organic growth and thus sees upside to the company's estimates. Brean Capital reiterated its Buy rating and raised its price target to $21 from $17 on Sequential Brands shares.
June 22, 2015
13:20 EDTMSOOn The Fly: Top stock stories at midday
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09:23 EDTMSOMartha Stewart down 13.7% after Sequential Brands announces acquisition
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09:19 EDTMSOSequential Brands signs definitive merger agreement to acquire Martha Stewart
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09:17 EDTMSOSequential Brands signs definitive merger agreement to acquire Martha Stewart
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