The unofficial closing bells put the DJIA up nearly 489 points to 12,044.55 (4.23%), the NASDAQ rose nearly 105 points (4.17%) to 2,620.34, and the S&P 500 rose 4.33% or nearly 52 points to 1,246.94.

There were several analyst upgrades and downgrades today, including Home Depot Inc. (NYSE: HD) reiterated as ‘buy’ with a $46 price target at Argus. Other ratings actions included Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reiterated as ‘buy’ with a $94 price target at Canaccord Genuity; Netflix, Inc. (NASDAQ: NFLX) cut to ‘underperform’ at Wedbush; Suntech Power Holdings Co. Ltd. (NYSE: STP) reiterated as ‘hold’ at Argus; Transocean Ltd. (NYSE: RIG) cut to ‘hold’ at Argus; and Calpine Corp. (NYSE: CPN) cut to ‘hold’ at Jefferies. See our story on Transocean’s stock offering and proposed debt offering.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: American Eagle Outfitters Inc. (NYSE: AEO) is up 3.3%, at $13.87; The Fresh Market, Inc. (NASDAQ: TFM) is up 5.7%, at $38.73; Jos. A. Banks Clothiers, Inc. (NASDAQ: JOSB) is down -6%, at $48.09; and SeaDrill Ltd. (NYSE: SDRL) is up 6.3%, at $34.82. After markets close today, Aeropostale, Inc. (NYSE: ARO) and Krispy Kreme Doughnuts Inc. (NYSE: KKD) will report earnings.

Several other standouts from today are as follows…

Zoltec Companies, Inc. (NASDAQ: ZOLT) is up 41.5%, at $8.11. The advanced materials maker reported better-than-expected earnings after markets closed yesterday.

Advanced Analogics Technologies, Inc. (NASDAQ: AATI) is up 32.5%, at $5.75. The power management chip maker is being acquired by Skyworks Solutions Inc. (NASDAQ: SWKS) for $258.6 million, or about $6.05/share.

Patriot Coal Corp. (NYSE: PCX) is up 18.7%, at $10.30.  This coal miner, like virtually all its competitors, is down about -40% for the past 12 months. There’s no news to justify today’s price jump, but the company’s thermal coal does sell well in cold weather.

Avalon Rare Metals Inc. (AMEX: AVL) is up 20.3%, at $3.26. The rare earths miner made this big move on no news, but competitor Molycorp Inc. (NYSE: MCP) did a deal with two Japanese companies to manufacture very powerful magnets in Japan for use in wind turbines and other high-tech products.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is up 16.6%, at $1.80. The solar PV maker is among several Chinese solar companies moving up today, no doubt as these are considered the most likely to survive a shakeout in the solar manufacturing sector.

Shutterfly, Inc. (NASDAQ: SFLY) is down -12%, at $27.02, after posting a new 52-week low of $26.93 earlier today. The social media company is facing intense competition for its on-line photo products.

Stay tuned for Thursday. Here’s a list of other noteworthy events scheduled for tomorrow(all times Eastern):

• 8:30 a.m. – New unemployment claims
• 9:45 a.m. – Bloomberg consumer comfort index
• 10:00 a.m – Industrial Supply Management manufacturing index
• 10:30 a.m. – EIA natural gas weekly report
• 4:30 p.m. – Federal Reserve balance sheet
• 4:30 p.m. – Money supply report

Your email address

subscribe

terms and conditions

Paul Ausick

Tuesday

Zoltek Companies Inc. (NASDAQ: ZOLT) makes the lightweight carbon fiber composites used in a variety of high-tech products including wind turbine blades. The company has posted four straight quarterly EPS losses and this quarter is not expected to reverse that trend. Zoltek is expected to post an EPS loss of -$0.02 on revenue of $44.5 million for its third quarter ended in September.

Tiffany & Co. (NYSE: TIF) is expected to ride the wave of better earnings at luxury retailers. The consensus estimate is for EPS of $0.61 on revenue of $802.1 million, compared with EPS of $0.46 on revenue of $681.7 million in the same period a year ago.

Wednesday

Aeropostale Inc. (NYSE: ARO) is a mall-based retailer of teen clothing. The consensus estimates call for EPS of $0.28 on revenue of $576.4 million. A year ago the company posted EPS of $0.67 on revenue of $602.8 million. The company posted an EPS loss of -$0.02 in its July quarter this year.

American Eagle Outfitters Inc. (NYSE: AEO) is another clothing retailer with offerings aimed at a wider range of ages than is Aeropostale. The consensus estimates call for EPS of $0.27 on $781 million in revenue. In the same period last year, American Eagle posted EPS of $0.29 on $751.5 million in revenue.

Thursday

Jos. A. Banks Clothiers Inc. (NASDAQ: JOSB) is a men’s clothing store with more than 500 outlets in 42 states. The consensus estimates call for EPS of $0.51 on $196 million in revenue. A year ago, Banks posted EPS of $0.45 on $173.3 million in revenue.

Lululemon Athletica Inc. (NASDAQ: LULU) makes athletic apparel for men, women, and children and operates about 148 stores in the US, Canada, and Australia. The consensus estimates call for EPS of $0.25 on $235.9 million in revenue. In the same period last year, the company posted EPS of $0.18 on revenue of $175.8 million.

Zumiez Inc. (NASDAQ: ZUMZ) offers athletic apparel and other sporting goods to teens and young adults at more than 430 stores in the US and Canada. The consensus estimates call for EPS of $0.42 on $153.1 million in revenue. Last year the company posted EPS of $0.40 on revenue of $135.9 million.

Barnes & Noble Inc. (NYSE: BKS) has been integrating its acquisition of the assets of the failed Borders chain and recently introduced a new version of its Nook e-reader to compete with the new Kindles from Amazon.com (NASDAQ: AMZN). The consensus estimates call for EPS of $0.02 on $1.98 billion in revenue. Last year in the same period the company posted an EPS loss of -$0.13 on revenue of $1.91 billion. B&N has missed EPS estimates for the last four quarters.

Friday

Big Lots Inc. (NYSE: BIG) operates more than 1,500 closeout stores in the US and Canada. The consensus estimates call for EPS of $0.09 on $1.13 billion in revenue. A year ago the company posted earnings of $0.23 on $1.06 billion in revenue.

Other Happenings Next Week

On Monday we get the new home sales report from the federal government.

Tuesday sees the release of the latest Case-Schiller housing price index, the Conference Board’s Consumer Confidence index, the State Street Investor Confidence index, and speeches from two Federal Reserve Bank presidents, Janet Yellen and Narayana Kocherlakota.

On Wednesday the Mortgage Bankers Association reports purchase applications, the Challenger Job-cut report, the ADP employment report, the Chicago purchasing manager’s index (PMI), and the release of the Fed’s Beige Book.

Thursday’s reports include chain store sales, motor vehicle sales, the Industrial Supply Managment (ISM) manufacturing index, and a report on construction spending.

Friday closes out the week with the report from the Census Bureau and the Department of Labor on the employment situation.

Have a great weekend!

Paul Ausick

American Capital Agency Corp. (NASDAQ: AGNC) Cut to Neutral at BofA/ML.
Annaly Capital Management, Inc. (NYSE: NLY) Cut to Neutral at BofA/ML.
Cabela’s, Inc. (NYSE: CAB) named as Bull of the Day at Zacks.
Canadian Pacific Railway Limited (NYSE: CP) Cut to Neutral at Credit Suisse.
Chimera Investment Corporation (NYSE: CIM) Cut to Neutral at BofA/ML.
Education Management Corporation (NASDAQ: EDMC) Raised to Equal-Weight at Morgan Stanley.
FedEx Corporation (NYSE: FDX) Cut to Neutral at Credit Suisse.
First Solar Inc. (NASDAQ: FSLR) Reiterated Buy with $140 target at Argus.
Goldman Sachs Group. Inc. (NYSE: GS) Maintained Outperform but cut estimates by Credit Suisse.
Hatteras Financial Corp (NYSE: HTS) Cut to Neutral at BofA/ML.
Invesco Mortgage Capital Inc. (NYSE: IVR) Cut to Neutral at BofA/ML.
Jos. A Bank Clothiers Inc. (NASDAQ: JOSB) Called the value stock of the day at Zacks.
Liquidity Services, Inc. (NASDAQ: LQDT) Raised to Outperform at Oppenheimer.
McDermott International (NYSE: MDR) named as Bear of the Day at Zacks.
Old Dominion Freight Line Inc. (NASDAQ: ODFL) Raised to Outperform at Credit Suisse.
Research in Motion Ltd. (NASDAQ: RIMM) Maintained Neutral but raised target to $37 from $25 at BofA/ML.
Saks Inc. (NYSE: SKS) Maintained Buy with $14 target at Argus.
Toronto Dominion Bank (NYSE: TD) Raised to Outperform at Credit Suisse.
United Parcel Service, Inc. (NYSE: UPS) Raised to Outperform at Credit Suisse.

Your email address

subscribe

terms and conditions

JON C. OGG

Be advised that many earnings estimates have not been updated in days and some of these estimates may have already changed.

Tuesday, August 30

Barnes and Noble Inc. (NYSE: BKS) has very few estimates but the company is now under a shadow since it lost Liberty as a bidder even if it got an investment from it. Shares are trading around $ 11.40; the 52-week trading range is $8.45 to $21.06.

China Finance Online Co Ltd. (NASDAQ: JRJC) has too few estimates to count but we are going to watch because the financial information provider is under the China cloud.  Shares are trading around $2.84; the 52-week trading range is $2.35 to $8.59.

Dollar General Corp. (NYSE: DG) has estimates of $0.47 EPS and $3.54 billion in revenues.  Shares are trading around $33.50 and the 52-week trading range is $26.64 to $35.09.  We love this one long-term, but always keep in mind that private equity sellers are an overhang any time the price rises too much.

DryShips Inc. (NASDAQ: DRYS) has estimates of $0.22 EPS; shares are around $3.08 and the year’s range is $2.19 to $6.44.  Shares were up double-digits on Monday as it announced the exchange offer of shares by Ocean Rig UDW.

Wednesday, August 31

Fresh Market Inc. (NASDAQ: TFM) has estimates of $0.20 EPS and $273.9 million in revenues.  Shares are trading around $34.95, the 52-week trading range is $30.86 to $46.85.

Zale Corp. (NYSE: ZLC) has to be looked at after Tiffany beat so well last week.  It has estimates of -$1.53 EPS and $336.65 million in revenues.  Shares are trading around $4.75, the 52-week trading range is $1.50 to $6.90.

Thursday, September 1

Ciena Corporation (NASDAQ: CIEN) has been a poor performer in the tech selling and it should be assumed that its outlook will be weak if its peers are any indication.  The communications equipment maker has estimates of -$0.21 EPS and $443.3 million in revenues.  Shares are trading around $12.10 and the 52-week trading range is $10.33 to $29.24.

Finisar Corporation (NASDAQ: FNSR) has also been battered with tech stocks.  It has estimates of $0.21 EPS and $228.3 million. Shares are trading around $18.08, and the 52-week trading range is $12.26 to $46.09.

H & R Block Inc. (NYSE: HRB) has estimates of -$0.39 EPS and $275.1 million in revenues.  Shares are trading around $14.95 and the 52-week trading range is $10.13 to $18.00.

Jos A Bank Clothiers Inc. (NASDAQ: JOSB) is very thinly covered but it almost always has a large short interest.  The clothier has estimates of $0.67 EPS and $209.7 million in revenues.  Shares are trading around $45.99 and the 52-week trading range is $36.41 to $57.14.

Friday, September 2

Campbell Soup Co. (NYSE: CPB) has estimates of $0.37 EPS EPS and $1.57 billion in revenues. Shares are trading around $31.70, the 52-week trading range is $29.69 to $37.59.

Teavana Holdings Inc. (NYSE: TEA) is one that we do not have the research quiet period wrapped up yet but the company will give its first earnings report.  At $23.90, the recent post-IPO range is $20.28 to $29.35.

JON C. OGG

Jos. A. Bank Clothiers (NASDAQ: JOSB) is down roughly 12.5% premarket to $49.90, relative to a 52-week range of $35.01-$57.14. The company’s Q1 profit was down from market estimates.

Orexigen Therapeutics (NASDAQ: OREX) is up nearly 15% before market open to $3.25, relative to a 52-week range of $2.47-$11.15.

Televent GIT, S.A. (NASDAQ: TVIT) is up more than 15% premarket to $39.73, relative to a 52-week range of $16.57-$34.53. Schneider Electric has offered to buy the company for approximately $40 per share.

The men’s clothing retailer said third quarter net income rose more than 7% to $12.6 million; also gaining by more than 7% was a $0.45 EPS report.  Total sales rose 7.4% in the quarter $173.3 million.  The problem is that Thomson Reuters expected $0.50 EPS and $177.89 million in revenues.

The company did note that its comparable store sales rose 3.0% and direct marketing sales rose 14.9%.  A year ago’s net sales were $161.309 million and gross profits were $100.8 million; for the last quarter the $173.268 million in sales came with gross profit of $110.839 million.

Where the problem was pointed was below-plan sales in August when weather was hot, with September and October each improving.  The company noted that the sales were even stronger in November and early December.  As far as a loose guidance ahead, “Right now, to date, the fourth quarter has started out strong. November suit sales and total sales were up substantially compared to last year and were ahead of our plans. Our fourth quarter results last year were very strong. Therefore we remain cautious, but our merchandising and marketing plans are in place for the most important selling period of the quarter and the year and we have confidence in those plans.”

The company noted that the results showed record earnings growth in 36 of the past 37 quarters on a year-over-year basis, including 18 quarters in a row.  That is not helping out this morning.  Shares closed at $45.04 yesterday, but Jos. A. Bank is indicated to open down about 7% to under $42.00.  Its 52-week trading range is $25.79 to $47.36 and its market cap as of yesterday was $1.24 billion.

To illustrate just how much of a battleground situation exists between bulls and bears, the short interest as of mid-November was 3.722 million shares against an average daily volume of about 350,000 shares.  That is more than 10 days to cover.  That short interest is very high but still under the 2010 peak of 4,768,583 recorded in mid-September.

JON C. OGG

Thomson Reuters has estimates pegged at $752.25 million for this year (Jan-2010) and $797.1 million for next year (Jan-2011).  Revenues were $695.9 million in 2008 (Jan-2009) and $604.01 million the year before.

Jos. A. Bank also has plenty of capital.  It had $111.98 million in cash at its last balance sheet report date in May.  But this stock is also no stranger to short sellers as a controversial stock.  At the end of July, JOSB had a short interest of 5.026 million shares, which comes to 10.9-days to cover.  That is not the highest short interest listed but that was the highest days-to-cover ratio at 10.95 days since the March 31 reading.

And certainly you have seen the company’s commercials…. JoS. A. Bank ‘sales’ are advertised almost every single day, regardless of the economy, and regardless of whether it is a holiday.  This expansion will probably bring even more sales announcements.

After a 4.5% gain today to $40.87, this is still about 20% short of its 52-week highs over $50.00 and the market cap is almost $750 million.

Jon C. Ogg
August 25, 2009

According to

Staples (SPLS) is off 9% on poor earnings. These are notes on China Techfaith (CNFT) hitting an all-time low.

Xinhua Finance Media (XFML) opened up sharply. Jos. A Bank Clothiers (JOSB) sold off on no news.

Douglas A. McIntyre

As many of you know, this is one of the more heavily shorted retail apparel stocks out there.  As of May 15, it had 13.558 million shares listed in the short interest.  Shares are now up 8% at $29.50 after the news.  That was 14.57 days to cover, but was lower than some other recent readings. 

That is still plenty of shares to send short sellers scrambling. As far as garnering any guidance, it has a conference call late tomorrow morning.

Jon C. Ogg
June 4, 2008

We did a screen in the wee hours of short interest growth in stocks, and for some reason Jos. A. Bank Clothiers just didn’t jump out in the screen.  It should have.  A reader inquired as to why it wasn’t included in the screen.  Usually we go for more active and more widely held stocks, but after looking at this one it’s a pretty amazing number.

The short interest was very high already at the end of February with 11.03 million shares listed in the short interest, and that was up from more than 10.7 million shares in mid-February.  But the March 14 short interest was just astounding with 15.19+ million shares being listed in the short interest.  NASDAQ cited that based upon about 900,000 per day, that is a day to cover ratio of 16.86.  A quick look at Google Finance indicates a float of roughly 18.17 million shares in the float, which is right in line with what the company lists on its own fully diluted as 18.18 million shares.

So 83.5% of the shares outstanding are short.  The company had already issued preliminary earnings back on February 7 for its it full fiscal 2007 numbers.  Now the company is on a quarterly sales results releasing basis.  This stock has been hit by short sellers throughout the years, but shares over the last year have fallen from $45 to under $25 now.  Shares are actually at the bottom of what would be a 3-year trading range.

It is hard to know what all these short sellers are expecting to come out of the company.  Maybe it is more cautious on sales expectations due to a stretched consumer, maybe it is that they are expecting a weakening balance sheet due to credit or due to merchandise mix.  Maybe they are expecting even worse.  When you see a short interest that is this large of a percentage of the float it’s hard not to scratch your head.  50% of a float being short is giant, but more than 80% is off the charts.

Options are pricey as well.  An at-the-money straddle as a bet on volatility with an April expiration would cost more than $4.30 currently.  That’s the sort of volatility pricing you usually see on a biotech stock ahead of an FDA review.

If this company issues any news that is good or just not so bad, calling the short covering action here as being "Spring-Loaded" would be an understatement.  Unfortunately the analyst coverage on this stock is rather thin and analyst estimates aren’t uniform.  Seeing short interest this large is almost never without reason.  But you also rarely see this much of a float as being short.

If we get any word out of the company, we’ll follow up on this one.

Jon C. Ogg
March 27, 2008

Jon Ogg produces the Special Situation Investing Newsletter and can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.