Consumer Stocks Recap: India Stops Walmart, J.C. Penny Turing into Apple
Wal-Mart (NYSE:WMT) bows to intense domestic pressure. India’s government suspends a controversial decision, pushed by PM Manmohan Singh that would have allowed Wal-Mart and other foreign companies to own supermarkets in the country.
J.C. Penney (NYSE:JCP) is expected to announce today that it’s buying a 16.6% stake in Martha Stewart Living Omnimedia (NYSE:MSO), which will give it two seats on the board. The $3.50/share price tag is a 12% premium.
Citigroup (NYSE:C) writes in Nike (NYSE:NKE) to its Top Picks Live list. All the while it is maintaining a Buy rating for the company. Analysts with the firm raised their price target to $113 from $101. This is a healthy 17% upside potential for shares.
Dollar General (NYSE:DG) is down after announcing a secondary offering of 25M common shares priced at $39. DG closed Tuesday at $39.63. Its controlling shareholder, Buck Holdings, will sell 24.2M of the shares. This will reduce its stake to 54.9% from 62.5%; DG isn’t selling shares in the offering and gets no proceeds.
Scott’s Miracle-Gro (NYSE:SMG) issues downward guidance for FQ1. SMG cites expected lower sales volume and continued pressure from high commodity costs. The lawn-and-garden products company sees a loss of $1.20-$1.25/share vs. -$1.13 consensus and -$0.99 a year ago. Sales are seen at ~$200M vs. $234.9M consensus and $230.2M a year ago.
Talbots (NYSE:TLB) shares are soaring. The $3/share price of the Sycamore takeover offer is not much however, as investors may lack faith in Talbots – which put in place measures to prevent unwanted takeovers – to negotiate a sale. Talbots shares have lost more 80% YTD as the retailer consistently raises concerns about lagging sales or profit margins.
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