Signet Jewelers (SIG) plunged more than 14% today after an investment letter took a critical look at the company.
As Bloomberg reported, James Grants, investment letter raised concerns about the jewelry retailers credit operations and mentioned a Buzzfeed story about customers complaining that their diamonds had been swapped out for lesser-quality gems.
At a recent $92, Signets share price had fallen almost 6.9% after earlier slipping below $85, a 14.1% decline
Signet shares are down nearly 26% in 2016 compared to the 2.5% gain posted by the S&P 500 index.
Cowen analyst Oliver Chen has regarded Signet as a must have stock, calling it Un-Amazon-able. But last week, Goldman downgraded Signet neutral from buy after the company said revenue and same-store sales for the fiscal first quarter missed expectations.
Signet may be getting out of the credit businesses. Last week, Signet announced it was explore strategic options for its credit book. Thats an extremely intriguing announcement given the stocks ongoing underperformance continues to be tied to the risk around their credit operations, wrote Wells Fargo analyst Ike Boruchow in a recent note.
Top Companies To Buy For 2016: Cal-Maine Foods, Inc.(CALM)
Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. It offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Lands Best, Land O Lake, Farmhouse, and 4-Grain brand names, as well as under private labels. The company sells its products to various customers, including national and regional grocery store chains, club stores, foodservice distributors, and egg product consumers primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1969 and is based in Jackson, Mississippi.
- [By Manikandan Raman]
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Top Companies To Buy For 2016: AbbVie Inc.(ABBV)
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company offers HUMIRA, a biologic therapy administered as a subcutaneous injection to treat autoimmune diseases; IMBRUVICA an oral therapy for the treatment of chronic lymphocytic leukemia; and VIEKIRA PAK, an interferon-free therapy, with or without ribavirin, for adults with genotype 1 chronic hepatitis, including those with compensated cirrhosis. It also provides Kaletra, an anti-HIV-1 medicine used with other anti-HIV-1 medications as a treatment that maintains viral suppression in HIV-1 patients; Norvir, a protease inhibitor indicated in combination with other antiretroviral agents to treat HIV-1; and Synagis to prevent respiratory syncytial virus infection in high risk infants. In addition, the company offers AndroGel, a testosterone replacement therapy for males diagnosed with symptomatic low testosterone; Creon, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid to treat hypothyroidism; and Lupron, a product for the palliative treatment of prostate cancer, and endometriosis and central precocious puberty, as well as for the treatment of patients with anemia. Further, it provides Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinsons disease; Sevoflurane, an anesthesia product for human use; TriCor, Trilipix, and Niaspan treat metabolic conditions characterized by high cholesterol and/or high triglycerides; and Zemplar to treat secondary hyperparathyroidism. The company sells its products to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from its distribution centers and public warehouses. AbbVie Inc. has strategic collaboration with C2N Diagnostics, Calico Life Sciences LLC, Infinity Pharmaceuticals, Inc., Ablynx NV, Galapagos NV, and Alvine Pharmaceuticals, Inc. The company was incorporated in 2012 and is based in North Chicago, Illi! nois.
- [By Ben Levisohn]
After surveying doctors on the preferred hepatitis-C treatments, Baird’s Brian Skorney and Neena Bitritto-Garg contend that Gilead Sciences (GILD) is likely to maintain its dominance over AbbVie (ABBV), Merck (MRK) and Johnson & Johnson (JNJ) but in what appears to be a shrinking market. They explain:
- [By Teresa Rivas] M. Scott Brauer for The Wall Street Journal
AbbVie (ABBV) is lower Friday, following a downgrade from BMO Capital Markets.
Analyst Alex Arfaei cut his rating on the stock from Outperform to Market Perform, and lowered his price target from $70 to $66.
Details from the note:
During the past couple of months, we had become increasingly concerned about AbbVie’s major growth drivers, and the company’s R&D day did not alleviate our concerns. AbbVie is gradually diversifying from Humira; however, some of the ASCO updates after the R&D day, along with ongoing positive updates from Lilly’s immunology franchise (Taltz and Baricitinib) and a recent meeting with Pfizer’ President of Global Established Products, have increased our concerns regarding the longer-term growth prospects of AbbVie’s immunology franchise, particularly Humira. We believe that AbbVie’s management set expectations too high for its major franchises, and just as it eventually acknowledged the competitive realities of Hep-C, it will likely have to do so with other key franchises. We believe that Baricitinib will be a strong competitor for Humira. Longer term we now expect up to 30-50% price reduction in the anti-TNF market. Given the launch lead of IL-17s, we do not see Risankizumab as a transformational therapy in psoriasis. In oncology, we do not see Rova-T as a multibillion dollar drug given the rapidly emerging competition from the IOs and other targeted agents in SCLC. While we still see Imbruvica as a ~$5B franchise by 2020, we now have increased uncertainty about its longer term prospects in hematologic malignancies as the IO’s and CAR-Ts emerge.
The shares are down 0.2% to $60.61 in recent trading.
- [By Ben Levisohn]
Gilead will announce its 2Q Earnings and hold its conference call on Monday, July 25…Gilead is driven by Hepatitis C virus and HIV sales. We see HCV sales ~$200M below consensus due to continued pricing pressure globally and lower market share in Europe. The pricing pressure comes from a more negative mix shift in the US from greater Veterans Administration volumes (discounts ~75%) and 8 week usage which is 33% less than a full course of drug, a full quarter of the 32% price cut in Japan vs. one month in 1Q16, and a negative mix shift in Europe to lower-priced countries in Southern Europe. Lower market share in Europe is a result of aggressive price competition from AbbVie (ABBV)…
- [By Ben Levisohn]
The 20 stocks meeting those requirements are: Ralph Lauren (RL), Time Warner(TWX), Twenty-First Century Fox(FOXA), PepsiCo(PEP), Estee Lauder(EL), Tesoro(TSO), XL(XL), Ameriprise Financial,(AMP), Unum(UNM), Merck(MRK), AbbVie(ABBV), Gilead Sciences(GILD), General Dynamics(GD), Alaska Air(ALK), United Continental(UAL), Delta Air Lines(DAL), Oracle(ORCL), eBay(EBAY), Apple(AAPL), and Centurylink(CTL).
Best Income Companies To Invest In Right Now: Fox Factory Holding Corp.(FOXF)
Fox Factory Holding Corp., incorporated on December 28, 2007, designs, engineers, manufactures and markets performance ride dynamics products for customers across the world. The Company’s brand ride dynamics products are used primarily on bicycles (bikes), side-by-side vehicles (Side-by-Sides), on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and FLOAT iCD, which provides riders the ability to adjust modes for different skills, terrains and activity levels on mo untain bikes.
The Company holds interests in Sport Truck USA, Inc., which designs, markets, and distributes lift kit solutions primarily through its brands, BDS Suspension and Zone Offroad Products. The Company holds interests in Race Face Performance Products, Inc. and Easton Cycling (USA), Inc. (together Race Face/Easton), which designs, manufactures, and distributes performance mountain and road bike wheels, and other performance cycling components, including cranks, bars, stems and seat posts. The Company offers front fork and rear suspension products designed for cross-country, trail, all-mountain, free-ride and downhill riding primarily for the mountain bike market. Its mountain bike products are sold in various series, including Performance series, Performance Elite series and Factory series. Its suspension component products in the powered vehicle category range from two inch aluminum bolt-on shocks to its position sensitive internal bypass shocks. It al so offers suspension systems, or lift kits, containing its s! uspension components, for use in trucks.
The Company competes with SRAM Corporation, A-Pro, HB Performance Systems, SR Suntour, Vereinigte Drahtwerke AG, Cane Creek Cycling, DVO Suspension, Bos-Mountain Bike Suspensions, Ohlins Racing AB, Amer Sports Corporation, Shimano, Kayaba Industry Co., Ltd., Walker Evans Racing, Works Performance Products, Inc., Penske Racing Shocks, ZF Friedrichshafen AG, Elka Suspension Inc., ThyssenKrupp Bilstein Suspension GmbH, King Shock Technology, Inc., Icon Vehicle Dynamics, Sway-A-Way, Tenneco, TransAmerican Wholesale, Rough Country Suspension Systems, TeraFlex, ReadyLIFT Suspension, Tuff Country EZ-Ride Suspension and Rusty’s Off-Road.
- [By Javier Hasse]
Fox Factory Holding Corp (NASDAQ: FOXF) was down 1.8 percent after posting a 2.16 percent rise over the day.
Finally, Groupon Inc (NASDAQ: GRPN) gained 1.3 percent, continuing with the 3.85 percent spike it experienced on Friday trading.
Top Companies To Buy For 2016: Smith & Wesson Holding Corporation(SWHC)
Smith & Wesson Holding Corporation manufactures and sells firearm products in the United States and internationally. The company operates in two segments, firearms and accessories. It offers handguns, including revolvers and pistols; long guns, such as sporting, bolt action, and single shot rifles; hunting rifles; black powder firearms; handcuffs and restraints; and firearm-related products and accessories. The company sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, BOG-POD, and Golden Rod Moisture Control brands. It also provides metal processing and finishing services comprising tooling, forging, heat treating, finishing, plating, plastic injection molding, and engineering support services to third-party customers; and licensing of tra demarks to third parties. The company serves gun enthusiasts; collectors; hunters; sportsmen; competitive shooters; individuals desiring home and personal protection; law enforcement and security agencies and officers; and military agencies. Smith & Wesson Holding Corporation sells its products through distributors; federal, state, and municipal law enforcement agencies and officers; government and military agencies; businesses; retailers; and consumers. It also operates Websites; and an online retail store that sells hunting and shooting accessories, branded products, apparel, and related shooting supplies. The company was founded in 1852 and is based in Springfield, Massachusetts.
- [By Ben Levisohn]
Shares of Smith & Wesson (SWHC) are soaring after the gun maker beat earnings forecasts and provided optimistic guidance. Wunderlich’s Rommel Dionisio has the details:
Smith & Wesson (SWHC) reported another quarterly beat in 4Q, and surprisingly for a company which has recently under-promised and over-delivered to a significant degree, introduced initial FY17 and 1Q guidance well above current consensus forecasts. Successful recent new firearm product introductions, impressive growth in the recently acquired accessories segment, and stronger than expected gross margin drove 4Q upside, and these factors carry solid fundamental momentum into FY17. Especially given important near-term catalysts, we reiterate our Buy rating and maintain our price target of $32, derived by applying a trailing-year peer average EV/EBITDA multiple of 10x on current years estimates.
What are those catalysts you might ask? Dionisio continues:
We foresee two potential near-term catalysts for the stock. First, the U.S. Army is expected to select three finalists for its landmark handgun contract sometime around August, and we view S&W as the potential front-runner for this contract. Second, the firearms market could see another re-acceleration in demand trends in response to last weeks incident in Orlando, similar to the sharp surge in demand, particularly in handguns, seen just after the Paris and San Bernadino incidents late last year.
Wedbush analyst James Hardiman agrees:
Smith & Wesson shares should benefit from not only a sizeable 4Q beat but also a view among investors that the solid guidance given on Thursday is beatable given what is assumed to be a surge in demand in coming months following the Orlando tragedy. Beyond a short term bump in these shares, however, SWHC faces exceedingly difficult comparisons, and so investors will be watching closely beyond a strong 1Q for signs of sustainable momentum durin
Top Companies To Buy For 2016: Polycom Inc.(PLCM)
Polycom, Inc. provides communications equipment that enables businesses, telecommunications service providers, governmental and educational institutions, and healthcare customers to conduct video, voice, data, and Web communications. The company offers network infrastructure, including conferencing infrastructure, distributed media applications, management applications, recording and streaming security, and remote access for universal video collaboration; unified communications (UC) group systems, which include immersive telepresence, group video, and group voice systems that enable geographically dispersed individuals to communicate; UC personal devices comprising desktop video devices, desktop voice, and wireless local area network products that extend HD voice, video, and content to desktops, home offices, mobile users, and branch sites. It also provides various services, including assessments, implementation services, network consulting services, usage and adoption ser vices, wireless services application integration, and advanced project management services. The company sells its products through a network of channel partners, including distributors, value-added resellers, system integrators, communications services providers, and retailers in North America, Central America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Polycom, Inc. was founded in 1990 and is headquartered in Pleasanton, California.
- [By Lisa Levin]
Polycom, Inc. (NASDAQ: PLCM) revealed Friday that private equity firm, Siris Capital Group, LLC and its affiliates, have submitted a unilaterally binding offer to buy all outstanding shares for $12.50 per share in cash.
Top Companies To Buy For 2016: Plains All American Pipeline L.P.(PAA)
Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment transports crude oil and refined products on pipelines, gathering systems, trucks, and barges. As of December 31, 2011, this segment owned and leased 16,000 miles of active crude oil and refined products pipelines and gathering systems; 23 million barrels of above-ground tank capacity used primarily to facilitate pipeline throughput; 67 trucks and 382 trailers; and 82 transport and storage barges, and 44 transport tugs. The Facilities segment provides storage, terminalling, and throughput services for crude oil, refined products, and LPG and natural gas, as well as offers LPG fractionation and isomerization, and natural gas processing services. The Supply and Logistics segment purchases crude oil at the wellhead, and pipeline and terminal facilities; waterborne cargoes at their load port and various other locations in transit; and LPG from producers, refiners, and other marketers. This segment also resells or exchanges crude oil and LPG; and transports oil and LPG on trucks, barges, railcars, pipelines, and ocean-going vessels to various delivery points. It has 622 trucks and 731 trailers, and 2,453 railcars. The company also owns and operates natural gas storage facilities. Plains All American Pipeline, L.P. was founded in 1998 and is headquartered in Houston, Texas.
- [By Callum Turcan]
All American crude
Plains All American Pipeline (NYSE: PAA ) is also investing in Texas, and it recently snatched up some of Chesapeake’sassets in the Eagle Ford for $125 million . Plains bought 40 miles of pipelines, 15,000 barrels of existing storage capacity, 300,000 barrels of storage under construction and a truck unloadingterminal.