These are some of the top analyst upgrades or positive research calls that we have seen early this Monday morning from Wall Street:
Berry Petroleum (BRY) Raised to Outperform at Morgan Keegan.
Brocade (BRCD) Raised to Buy at Piper Jaffray.
Goldman Sachs (GS) Started as Buy at Citigroup.
Lululemon Athletica (LULU) Raised to Outperform at William Blair.
Monster Worldwide (MWW) Raised to Outperform at William Blair.
Salesforce.com (CRM) Raised to Buy at UBS.
JON C. OGG
These are some of the top pre-market analyst downgrades or negative calls on Wall Street we have seen this Monday morning:
Jon C. Ogg
December 15, 2008
Lululemon Athletica Inc. (NASDAQ: LULU) managed to beat earnings estimates this morning, but the guidance leaves little to be desired. The yoga-wear company reported profit of $0.13 per share and posted a 34% annual gain in revenues of $87 million. First Call had estimates of $0.12 for profit and $86.5 million in sales.
The market message has been the same for the entire last week. Carnage and mayhem. But what is interesting is how many household companies and how many widely held stocks have this week or today dipped under the $10.00 stock price. This is horrible because it screws up options trading and begins to genuinely worry investors who were already worried. Shares never dip under $10.00 because things are going so well.
American Eagle Outfitters Inc. (NYSE: AEO) broke under $10.00 early Monday and hasn’t been able to look back. After a same store sales drop of 12% last week, the coolness looks long gone. Maybe they could do a deal with Gap and really damage themselves.
Barclays plc (NYSE: BCS) hit $9.65 today, which is back to mid-1990’s levels. The number one position in ETF’s can’t keep the financial giant from ruin.
These are some of the top pre-market downgrades we are seeing this Monday morning with more than two hours to the open:
Jon C. Ogg
October 13, 2008
Shares of Lululemon Athletica (NASDAQ: LULU) are being hit this morning on what seemed to be good earnings data on the surface. But when you dig down it seems that the growth is slowing . The maker of yoga and active lifestyle apparel posted earnings of $0.18 versus the First Call consensus estimate of $0.13. Its revenue rose 47% to $85.5 million versus estimates of $88.2 million, and this is part of the concern affecting shares today. Lululemon has also reaffirmed guidance for Fiscal-2009 of $0.68 to $0.71 on revenues of $380 to $385 million, while First Call has estimates at $0.71 and $404.9 million respectively.
lululemon athletica (NASDAQ: LULU) has just come out and filed to sell up to more than 20.9 million shares in a secondary offering. The company says that it may issue these upon the redemption, retraction or purchase of an equivalent number of the exchangeable shares of Lulu Canadian Holding, Inc. (an indirect wholly-owned subsidiary), or upon the liquidation, dissolution or winding up of Lulu Canada.
Goldman Sachs has noted that an analyst named Brad Cragin has left the firm, and his former targets and ratings in specialty apparel names are no longer in effect. These are some of the specialty apparel names that have been dropped from coverage:
There were also many names in footwear and shoe retailing that were dropped:
As a reminder, these are not true downgrades. This coverage was dropped as the analyst has left the firm and it appears to be in a rapid enough manner that Goldman Sachs was not able to transition coverage away to another analyst.
Jon C. Ogg
May 20, 2008
Jon Ogg produces and edits the "10 Stocks Under $10" weekly newsletter and he does not own securities in the companies he covers.
These are not the only analyst calls affecting shares this morning, but these are the first ones that 247WallSt.com is focusing on:
Jon C. Ogg
March 11, 2008
It is going to be hard to get traders to care about mere upgrades and downgrades on a day when the Federal Reserve did an inter-meeting emergency rate cut to stave off a 500+ point drop in the DJIA. But here are some of the calls from analysts today:
Jon C. Ogg
January 22, 2008
247WallSt.com wanted to bring a list of the best and worst in IPO’s for 2007. We already gave a list of the large money losing IPO leaders of 2007 and this list should show you which of the recent IPO’s that are up more than 100% so far since the IPO pricing.
Join our free email distribution list for previews on IPO’s, spin-off’s, reorganization, restructuring, merger-arb, buyouts, M&A, and more.
Jon C. Ogg
December 26, 2007
Below is some of the other top summaries of news we haven’t covered this morning:
Enbridge Inc. (ENB) and Enbridge Energy Partners, L.P. (EEP) had a pipeline blow late yesterday that has oil up as much as $4 today; two workers were killed; the explosion and fire on an Enbridge Energy Partners’ crude oil pipeline approximately three miles southeast of Enbridge’s Clearbrook, Minnesota terminal is apparently one of the Canadian pipelines that comes down to the U.S. and it is a supply risk.
Fred’s (FRED) $0.12 EPS after $0.02 "timing event" versus $0.14 estimate; hired Merrill Lynch to help it review strategic alternatives after receiving interest from multiple parties.
HJHeinz (HNZ) $0.71 EPS vs $0.69 est.; put guidance at higher end of range for next quarter.
Lululemon (LULU) trading up 10% after beating earnings and raising guidance.
Medco Health (MHS) announced a 2 for 1 stock split.
Men’s Wearhouse (MW) trading down 12% after disappointing earnings.
Sigma Designs (SIGM) traded up 14% after posting $0.79 EPS vs $0.54 estimates.
Ultralife Batteries (ULBI) receive a $2.6 million order from the U.S. Defense Department.
VeraSun Energy (VSE) and US BioEnergy (USBE) are going to merge operations into a single company; USBE shares up 8%.
Vimpel-Comm (VIP) trading up 5% after beating earnings expectations.
WellCare Health Plans, Inc. (WCG) traded up 10% after-hours after announcing that on November 21, it received an executed Contract between the Centers for Medicare & Medicaid Services. This one had been battered after that FBI raid killed the stock in recent weeks.
Jon C. Ogg
November 29, 2007
lululemon athletica, Inc. (NASDAQ:LULU) is seeing a surge in shares pre-market today. The Yoga apparel and class operator raised its prior guidance. lulu said its comparable store sales are now expected to show percentage growth in the mid-30’s over the same period last year, above the previous guidance of growth in the mid to high teens.
lulu’s revised guidance is attributable primarily to strong sales volumes. Interestingly enough it also said that an additional benefit came from the impact on sales of a strengthening Canadian dollar against the U.S. dollar. On a constant dollar basis, the revised guidance translates into a mid-20’s percentage increase over 2006. Even though the increase in sales is expected to be partially offset by the currency impact on SG&A costs incurred in Canada, the Company expects to exceed its previous guidance of $0.05 to $0.06 EPS for the third quarter.
LULU shares are trading up over 9% at $45.00 in pre-market trading, still under the $48.58 highs since the company’s stellar IPO this morning.
Jon C. Ogg
October 16, 2007
Diluted earnings per share were $0.07 on net income of $5.1 million (compared to $0.03 on net income of $1.9 million in Q2 2006). Net revenue increased 80% to $58.7 million (from $32.5 million in 2006 Q2).
Income from operations increased 202% to $9.8 million, or 17% of revenues (compared to $3.2 million, or 10% of revenues, in Q2 2006). Net revenue from corporate-owned stores also increased 98% to $53.1 million compared to $26.8 million for the second quarter of fiscal 2006, with comparable store sales growth of 30%. Gross profit as a percentage of revenue rose 430 basis points to approximately 53% of net revenue from 49% in Q2 2006.
Unfortunately, these estimates are hard to compare. The coverage universe from the underwriters just opened up last week, as you saw in our analyst initiations of LULU. Shares closed up 2.1% at $36.66 in normal trading, about 6% off of its post-IPO highs. But in after-hours activity, shares are trading down over 7% to under $34.00 in the initial reaction. These fresh companies are often hard to cover with estimates and using real targets right out of the chute.
Apparently these are not being deemed as enough above what the street wanted, but the real indications will come from the trading levels in pre-market trading tomorrow. It makes you wonder if Cramer will still think of this as "The Next Under Armour" that he discussed last month.
Jon C. Ogg
September 10, 2007
Jon Ogg produces the 24/7 Wall St. SPECIAL SITUATION INVESTING NEWSLETTER; he does not own securities in the companies he covers.
lululemon athletica Inc. (NASDAQ:LULU) has been quite a performer based on its recent IPO performance. The indicated range was $15.00 to $17.00, but the company sold 18.2 million shares at $18.00 per share. Since the IPO, shares have traded as high as $38.85.
This morning, we are getting to see the analyst call initiations as the quiet-period has ended:
Goldman Sachs and Merrill Lynch were the lead underwriters. Goldman Sachs initiated coverage with a "Buy" rating and a $40.00 target. Merrill Lynch has started coverage with a Neutral rating.
Here are the co-manager calls and outside calls:
CIBC started coverage with an "Outperform" rating.
Wachovia started it with a "Market Perform" rating.
William Blair started coverage with an "Outperform" rating and an Aggressive Growth company profile. Analyst Sharon Zackfia estimated that the company, which retails its yoga-inspired athletic apparel through company-owned boutique-style stores, would earn $0.29 per share in 2007, $0.46 per share in 2008, and $0.71 per share in 2009.
RBC Capital Markets, which was not in the underwriting and thus exempt from the quiet period rules, started coverage all the way back at the end of July with an Outperform rating. Shares closed at $28.00 that day, on its IPO day.
Other co-managers were UBS and Thomas Weisel, and we haven’t seen those reports yet.
If you will recall, it was just about a month ago that Jim Cramer noted this one as having some of the same characteristics of under Armour (NYSE:UA). Shares had closed at $31.00 that day, and shares are down 2% at $34.15 on the day, now. it seems that based on the mixed coverage and on the targets that investors may be waiting for this one to cool down before they chase it further.
Last month’s short interest in August was listed as 2.011 million shares. The company said it will report earnings on Monday, September 10, 2007, after the market close.
Jon C. Ogg
September 5, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he produces the Special Situation Investing Newsletter and he does not own securities in the companies he covers.
Cramer’s Next Under Armour: Lulelemon Athletica (NASDAQ:LULU). It came public at $18.00 and went up to $31.00 during a crummy market. This one does similar things to Under Armour, but they are more into yoga and new age types of clothing. He thinks their sales will grow huge and operating income will grow exponentially. It has its own stores and will be opening more stores this year and then even more stores in 2008. If this matched Under Armour’s growth it would double sales and earnings it can grow considerable. He does think this is risky and will be closely watched by the street and it is very speculative. He even thinks you should wait for an entry point next week. Shares closed down 6% at $31.00 today, but then rose 4% in after-hours after Cramer talked it up.
Can you imagine a person with a speech impediment trying to say this company’s name?
Jon C. Ogg
August 3, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
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