Posts for Ticker ‘PIR’

52-Week High Club

Pier 1 Imports Inc. (NYSE: PIR) rallied over 11% to a yearly high of $5.01 after Dow Jones reported that the company had entered into an agreement to sell its St. Charles Ill. distribution center $11 million.

ResMed Inc. (NYSE: RMD) hit a yearly high of $47.90 after analysts at Credit Suisse upgraded the stock.

Bitstream Inc. (NASDAQ: BITS) hit a yearly high of $6.05 after the company announced that K-Touch Mobile Indonesia, a mobile phone maker, had licensed Bitstream’s mobile we brower for distribution.

Pacific Sunwear of California Inc. (NASDAQ: PSUN) rallied over 6% to a yearly high of %6.62 after FBR Capital upgraded the apparel stores industry. 

Sinclair Broadcast Group (NASDAQ: SBGI) rallied over 12% to a yearly high of $4.22 after the company’s subsidiary, Sinclair Television Group, intends to offer roughl $430.00 million in debt which will be used to pas for its cash tenders for its 3% senior covertible notes due in 2027 and 4.875% senior convertable notes due in 2018.

Garrett W. McIntyre

Posted on: October 13, 2009 – 4:33 pm in Healthcare, Old Media, Retail, Technology Companies, Telecom, , , , ,

Major Earnings on Deck This Coming Week (ADBE, BBY, KR, ORCL, DFS, FDX, PALM, PIR, JAVA)

bull-and-bear-image2We have a little flurry of key earnings coming this week.  We have provided detailed earnings estimates with Thomson Reuters consensus figures, with our own color for the recent performance, the charts, options, and other critical data when and where it stood out.  The companies covered are Adobe Systems Inc. (NASDAQ: ADBE), Best Buy Co. (NYSE: BBY), The Kroger Co. (NYSE: KR), Oracle Corp. (NASDAQ: ORCL), Discover Financial Services (NYSE: DFS), FedEx (NYSE: FDX), Palm, Inc. (NASDAQ: PALM), and Pier 1 Imports, Inc. (NYSE: PIR).
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Posted on: September 12, 2009 – 12:29 pm in Calendar, Consumer Electronics, Consumer Goods, Earnings, Food, Retail, Technology Companies, , , , , , , , ,

Top Analyst Upgrades (APSG, BWA, CBI, ETH, GME, PIR, TD, WSM)

These are some of the top pre-market analyst upgrades and positive research calls that we have seen from Wall Street firms early this Monday morning:

Applied Signal (APSG) Raised to Buy at Colliins-Stewart.
Borg Warner (BWA) Raised to Outperform at Wells Fargo.
Chicago Bridge & Iron (CBI) Raised to Overweight at JPMorgan.
Ethan Allen (ETH) Raised to Hold at KeyBanc.
GameStop (GME) Raised to Conviction Buy List at Goldman Sachs.
Pier-1 Imports (PIR) Raised to Hold at KeyBanc.
TD Bank (TD) Raised to Outperform at RBC.
Williams-Sonoma (WSM) Raised to Hold at KeyBanc.

JON C. OGG

Posted on: August 31, 2009 – 8:04 am in Analyst Calls, , , , , , , ,

Best Performing Sectors In Last Month: Hotel REITs, Home Furnishings, Car Rentals

Based on the TickerSpy index of major industry sectors, hotel REITs had the best performance of any group measured, up almost 60%.  At the head of the industry were Diamondrock (DRH) and LaSalle Hotel (LHO).

Home Furnishing Retail was a closed second, up 55% lead by Pier 1 (PIR) and Kirklands (KRK). Read More »

Posted on: April 24, 2009 – 8:54 am in Metals, REIT, , , , , , , ,

Best Performing Sectors This Week: Cancer Stocks, Home Furnishing, Aircraft Leasing

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Posted on: April 16, 2009 – 12:07 pm in Business Services, Exchange, Industry, , , , , , , ,

The Problem Of “Burn Rate” Hits Mainstream Companies (GM)(PIR)(DS)(SIRI)(CHTR)(MNI)(NYT)`

EmpireAt the beginning of the decade a number of internet and next-generation technology companies raised money through venture capitalists and IPOs. Many of these companies had little, if any, revenue. Most had relatively high expense structures.

As these firms quickly ate through the cash on their balance sheets and continued to have poor sales prospects, the term "burn rate" was coined. If was defined as the amount of cash a company had on its balance sheet divided by the firm’s monthly expenses less any revenue. An operation with $12 million in cash less short-term debt and a $1 million a month "burn rate" was expected to be out of business in a year.

At this point, GM (GM) and Chrysler would make any burn rate risk lists as would a number of retailers who had awful holiday seasons and are facing repayment of debt or revolving credit facilities. That is why Pier 1 (PIR) is trading at $.40 and shares of Dillard’s (DDS) are off 80% over the last year.

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Posted on: January 5, 2009 – 1:20 pm in Earnings Warning, , , , , , ,

Companies That Won’t Make It Through 2009 (HMC)(SIRI)(AIG)(FRE)(FNM)(RAD)(NYT)(NT)(PIR)(CHTR)(HOV)

AngrybearA lot of fairly well-known public companies either disappeared or went bankrupt this year. Circuit City is on the list. Based on the most recent news GM may get added soon.

24/7 Wall St. looked at some of the largest and most well-known companies, reviewed their SEC filings if they are public, analyst reports, and media observations about their businesses and picked ten that probably won’t be around at the end of next year. That does not mean that their brands will disappear, but these companies will have been dissolved as the world knows them now or working though the court system in the hopes of getting Chapter 11 protection and a chance at survival.

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Posted on: December 19, 2008 – 7:47 pm in Research, , , , , , , , , , , , , , ,

The Black Friday Ten: Retailers Who May Not See 2009 (BONT)(DDS)(TLB)(PIR)(CPWM)(WSM)(CHS)(SKS)(EBHI)(RAD)

Angrybear_3A year ago, not many people would have thought Circuit City would be in bankruptcy now. Linens ‘n Things, Mervyn’s, Whitehall Jewelers and Steve & Barry’s have either shut down or are closing huge numbers of locations since they moved into Chapter 11.

The most astonishing fact about the retail industry now is that the environment has gotten much worse than it was when each of these businesses began to fail. Sales at stores across the country will be down this holiday season. Some analysts believe that the numbers will be as bad as for any fourth quarter in thirty-five years.

Adding to the problem of slow consumer spending brought on by the recession is an unprecedented liquidity crisis. Retailers who need access to capital for inventory, rent, and personnel costs are finding that it is nearly impossible to get access to funds without a pristine balance sheet and a history of substantial positive cash flow.

These troubles point to a number of other retail chains going out of business between now and early next year. Sales on Black Friday, the day after Thanksgiving, which is considered the bellwether of holiday sales, will determine the fate of several companies which are now viewed as the weakest operators in the industry.

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Posted on: November 26, 2008 – 5:57 pm in Retail, , , , , , , , , ,

Top Pre-Market Analyst Downgrades (DDR, FII, LM, PIR, SPLS, ULTA, WFMI)

Down_arrow_redThese are some of the top downgrades and negative calls we are seeing from Wall Street analysts this Tuesday morning:

  • Developers Diversified (DDR) Cut to Neutral at Goldman Sachs.
  • Federated Investors (FII) Cut to Neutral at JPMorgan.
  • Legg Mason (LM) Cut to Underperform at FBR.
  • Pier 1 Imports (PIR) Cut to Neutral at UBS.
  • Regency Centers (REG) Cut to Sell at Goldman Sachs.
  • Staples (SPLS) Cut to Underperform at RBC.
  • Ulta Salon (ULTA) Cut to Neutral at Baird.
  • Whole Foods (WFMI) Cut to Market Perform at William Blair.

Jon C. Ogg
November 25, 2008

Posted on: November 25, 2008 – 7:51 am in Analyst Calls, , , , , , ,

Circuit City (CC): A Chapter 11 Or Just Massive Cuts?

CircuitcityThe Wall Street Journal reports that Circuit City (CC) is finally addressing just how desperate its situation is. The company is reportedly considering a plan to close 150 stores and slash jobs in an effort to save the company. But the company has also hired bankruptcy attorneys Skadden, Arps, Slate, Meagher & Flom LLP and other consultants as it mulls a possible bankruptcy filing and plans for the possibility of debtor in possession financing

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Posted on: October 20, 2008 – 4:43 am in Retail, , ,

The 52-Week Low Club (LEA)(PIR)(LVS)(ES)

Sad_clownEnergysolutions (ES) Company cuts guidance. Plunges to $5.60 from 52-week high of $28.45.

Lear Corporation (LEA) Another victim of lower guidance. Falls to $3.77 from 52-week high of $36.99.

Pier 1 Imports (PIR) Retailer gets downgraded. Falls to $.96 from 52-week high of $8.25.

Las Vegas Sands (LVS) Casino business still being hit by economy. Drops to $12 from 52-week high of $148.76.

Douglas A. McIntyre

Posted on: October 14, 2008 – 3:00 pm in HI/LOW, , , ,

The 52-Week Low Club (AFFX)(PIR)(AXL)

Sad_clownAmerican Axle (AXL) S&P downgrade due to big customer GM (GM) cutting production. Drops to $2.61 from 52-week high of $28.11.

Pier 1 (PIR) Analyst dowgrade due to weak same-store sales. Down to $1.58 from 52-week high of $8.25.

Affymetrix (AFFX) Misses Q3 sales forecasts. Sells off to $3.88 from 52-week high of $28.12.

Douglas A. McIntyre

Posted on: October 13, 2008 – 2:43 pm in HI/LOW, ,

This Month’s Retail Wall of Shame (ANF, CHS, GPS, PIR, SSI)

Down_arrow_red_2It is no secret that the consumer is in the tank and that retail sales are coming in poorly.  It would have been a fool’s gold trade to believe you were going to see any great sales for September’s same-store-sales figures.  When you compare it to the results of 2007, all you have to do is mark last September as the month where the consumer was officially starting to consider that things were going to slow down in the months ahead.  But there are several retailers that just aren’t making the grade.  These are some of the active stocks we are reviewing today:  Abercrombie & Fitch Co. (NYSE: ANF), Chico’s FAS Inc. (NYSE: CHS), Gap Inc. (NYSE: GPS), Pier 1 Imports inc. (NYSE: PIR), and Stage Stores Inc. (NYSE: SSI).

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Posted on: October 9, 2008 – 9:24 am in Apparel, Earnings Warning, Retail, , , , ,

24/7 Wall St. Most Overpaid CEO Of The Day: Pier 1 (PIR) CEO Alex Smith

HousePier 1 Imports (PIR) shareholders have been through a painful quarter. Stock in the company have dropped over 40% in the last 90 days.

That got worse today. PIR said its same-store sales for the second quarter fell 1.7 percent.

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Posted on: September 3, 2008 – 10:03 am in Management Change,

Top Pre-Market Analyst Downgrades (BBY, BBBY, CC, DELL, HPQ, JNS, LIZ, LSI, PIR, RACK, RSH, SFD)

These are some of the top Downgrades or negative calls we are seeing early this Tuesday morning.  Neutral and Hold ratings are not technically negative, but they aren’t ringing endorsements either.

  • Best Buy (BBY) Started as Hold at KeyBanc.
  • Bed Bath & Beyond (BBBY) Started as Hold at KeyBanc.

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Posted on: August 5, 2008 – 6:25 am in Analyst Calls, , , , , , , , , , , , ,

Big Retails Which May Close Or Downsize (CC)(BBI)(PIR)(CPWM)

CircuitcityIt is now no secret that we are in a very weak economic environment and if it is not an official recession it is for about 80% of the country.  We’ve already seen some retailers collapse entirely or at least fall into the restructuring chapters that protect the company from liquidation.  Among these are Sharper Image, Lillian Vernon, Mervyn’s, Ames, Harvey Electronics, Good Guys, Levitz, Bombay, Movie Gallery, Tweeter, and other former modest-sized retailers which have filed to shield themselves from creditors.

There are several larger retailers that are in real trouble. Some are at risk for bankruptcy and each of them could have to cut operations so much that their revenue would be a fraction of what it is now.

Read More »

Posted on: July 30, 2008 – 12:49 pm in Retail, , , , , , , , , , ,

Pier 1 Shows It Doesn’t Deserve Cost Plus (PIR, CPWM)

Pier 1 Imports Inc. (NYSE: PIR) is seeing its stock butchered by more than 16% in the first 30 minutes of trading this morning and it has already surpassed its average daily trading volume.  The company’s losses did narrow from last year but fell short of estimates.  The loss was -$0.37 EPS on a 13% drop in revenues to about $310 million, while First Call forecasts were -$0.15 EPS on $338 million in revenues.  The company’s same store sales were -5.4% for the period on slow March and April traffic.

Pier One also noted that it sees a slight negative to slight positive for its same store sales.  It also said it expects a slight positive earnings for its fiscal 2009, with the caveat of holiday sales living up to the company’s expectations.  Wall Street isn’t a believer, at least it doesn’t seem that way since its own internal track record has been a poor one for some time.   

This should effectively kill its unsolicited proposed buyout offer chances for Cost Plus Inc. (NASDAQ: CPWM) coming under the Pier One umbrella.  If Pier One wants the company they are now likely going to have to come up with a cash component for the merger to where it is as close to a no-lose situation for Cost Plus shareholders.  The 0.6 shares of Pier 1 would barely be $3.05 per Cost Plus share based upon a $5.08 Pier One stock price.

This shouldn’t be interpreted that Cost Plus has done a great job or that it will do a great job.  Much of the issues that hurt Pier 1 are the same issues that hurt Cost Plus.  But shareholders over at Cost Plus are likely going to roll the dice rather than accept a take-under buyout after feeling this much pain.

Pier One shares were at north of $8.00 even in mid-May and shares dropped from $6.67 to $5.26 when it announced its unsolicited offer for Cost Plus.  Cost Plus shares are at $3.40 after today’s open.  Perhaps both companies need to hear the old saying "Physician, heal thyself."

You can join our open email distribution list to hear about other mergers, IPO’s, secondary offerings, restructuring, and other special situations.

Jon C. Ogg
June 19, 2008

Posted on: June 19, 2008 – 9:17 am in Earnings, Mergers and Buy Outs, Retail, ,

Cost Plus & Pier 1 Brace For War (PIR, CPWM)

It hasn’t even been a week, and it appears that the proposed acquisition where Pier 1 Imports, Inc. (NYSE: PIR) wants to acquire the operations of Cost Plus Inc. (NASDAQ: CPWM) is going to go rather hostile.

Early this morning, Cost Plus issued a statement saying the company is unanimously rejecting the Pier 1 offer to acquire the company after determining that the offer is not in the best interest of the company and its shareholders.  Its statement pretty much says it all:

  • We believe that our strategic plan, which is yielding positive results, will provide Cost Plus shareholders with superior and compelling long-term value as an independent company. Despite your statements to the contrary, Cost Plus has significant liquidity to pursue its business objectives and to deliver improvement in our core business metrics…. Your proposal to combine our operations is not attractive from either a financial or a strategic perspective. It is both distracting and ill-timed given the difficult retail environment and the progress we have made investing in and improving our business.

After today’s close, Pier 1 came out swinging on its own and it doesn’t look like they are going to go away no matter "distracting" this may be.  It even notes its terms and conditions as "subject to only limited conditions that are customary for transactions of this type, which are confirmatory due diligence, the negotiation of a definitive acquisition agreement and the receipt of all necessary shareholder and regulatory approvals."  Unfortunately, when you are engaged in a stock for stock merger where the premium has shrunk to a near take-under those are fairly strong conditions.  Pier 1 plans to take this issue straight to Cost Plus shareholders.

Pier 1 goes further and notes that it could yield roughly $50 million in cost savings and give shareholders the chance for upside in execution.  The original offer would have been valued at $4.00 per share based upon the 0.60 shares of Pier 1 per Cost Plus share.  But with a $5.97 closing price today the offer price at a full swap is only $3.58.  Cost Plus shares closed up at $3.46 today and its 52-week trading range is $3.46 to $9.00.

If Pier 1 wants this company, on the surface it is going to take more money or a larger share offer.  Otherwise many Cost Plus shareholders are going to have to use the worst investment strategy of simply crossing their fingers and hoping things get better, because that exchange ratio isn’t going to get too many holders that excited.

Both stores have their niches, and both have their current problems that overlap.  This merger saga is far from over.

You can join our open email distribution list to hear about other mergers, IPO’s, secondary offerings, private financings, activist investors, and more.

Jon C. Ogg
June 16, 2008

Posted on: June 16, 2008 – 5:03 pm in Mergers and Buy Outs, ,

Pier One & Cost Plus Merger; 1 + 1 = 1 (PIR, CPWM)

Pier One Inc. (NYSE: PIR) saw shares tumble today on what some may think as a game changing deal where it offered to acquire rival Cost Plus Inc. (NASDAQ: CPWM), the parent of its direct competing store Cost Plus World markets.

As far as the terms before any dilution, this would have been a 31% premium for Cost Plus before any dilution metrics come into play.  The buyout terms are for 0.6 shares of Pier One for each share of Cost Plus.   

The problem is that Pier One shares have fallen and therefore lowered the potential buyout price compared to any cash offer buyout deal. With a 16% drop to $5.55 per Pier One share, this works out to a mere $3.33 for Cost Plus.

The truth is that a deal of this sort would perhaps allow the company to stabilize the bleeding of the two operations.  Both suffer from many of the same commonalities:

  1. weak consumer
  2. brutal housing markets
  3. weak dollar and dependence on foreign suppliers
  4. poor execution and inability to compete
  5. lack of pricing power
  6. lack of profitability and inconsistent turnarounds

The problem is that while Cost Plus is up on the offer, this is just a stock for stock swap and requires the faithless to take faith into another group that also its legion of faithless behind it.  Pier One did note that Cost Plus was going to soon run into liquidity issues if it does not agree to to a deal.  Unfortunately, that is correct if its books are accurate.

Lastly, this would have made great sense in 2006 before Cost Plus pared down some of its real estate ownership for a sale-leaseback arrangement.  Cost Plus shares are now only up about 7% at $3.28; its 52-week trading range is $2.65 to $9.02.

We have reviewed both Cost Plus and Pier One for our weekly "10 Stocks Under $10" newsletter.  Unfortunately, for now it appears that this merger is the mathematical equivalent of "1+1=1"… or so it seems.

Jon C. Ogg
June 9, 2008

Posted on: June 9, 2008 – 1:33 pm in Mergers and Buy Outs, Retail, ,

Top 10 Pre-Market Analyst Calls (AKAM, MO, AZN, GSK, HES, LVLT, PEP, PIR, UBS, VMW)

These aren’t the only impact analyst calls this morning, but these are the ones we are focusing the Tuesday in pre-market trading hours:

  • Akamai Tech (NASDAQ: AKAM) Raised to Buy from Neutral at Piper Jaffray.
  • Altria (NYSE: MO) Cut to Equalweight from Overweight at Morgan Stanley.
  • AstraZeneca (NYSE: AZN) raised to Neutral at JPMorgan.
  • GlaxoSmithKline (NYSE: GSK) Started as Buy at ING.
  • Hess (NYSE: HES) Raised To Outperform From Market Perform at FBR.
  • Level 3 Communications (NASDAQ: LVLT) Started As Underperform at Wachovia.
  • PepsiCo (NYSE: PEP) Cut To Neutral From Buy at Goldman Sachs.
  • Pier 1 Imports (NYSE: PIR) Raised To Buy From Hold at Deutsche Bank.
  • UBS (NYSE: UBS) Raised To Buy at Deutsche Bank.
  • VMware (NYSE: VMW) Raised To Outperform From Market Perform at Wachovia.

Jon C. Ogg
April 1, 2008

Posted on: April 1, 2008 – 6:39 am in Analyst Calls, , , , , , , , , ,