03-Sep-15 16:11 ET
Vince Holding misses by $0.09, misses on revs; guides FY16 sharply lower; co decided to dispose of the vast majority of prior year product; names Mark Brody as Interim CEO (9.32 +0.52)
Reports Q2 (Jul) earnings of $0.14 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of $0.23; revenues fell 10.4% year/year to $79.99 mln vs the $86.32 mln consensus. Co issues downside guidance for FY16, sees EPS of $0.31-0.37, excluding non-recurring items, vs. $0.84 Capital IQ Consensus Estimate; sees FY16 revs of $285-295 mln vs. $342.5 mln Capital IQ Consensus Estimate.
03-Sep-15 16:03 ET
Vince Holding sees FY16 $0.31-0.37 vs $0.84 Capital IQ Consensus Estimate; sees revs $285-295 mln vs $342.5 mln Capital IQ Consensus Estimate
Read more: http://www.briefing.com
Buys VNCE at 3.62 this A.M.
As you can see above VNCE is having a hard time. With FY 16 guidance of .31 to .37 this(3.70) the high end of value. Low is 3.10 but we could wind up in the 2.50 area with a P/E in the 8 area.
The CEO is leaving with the CFO as interim CEO while a search for a new CEO commences.
Buys ZUMZ 15.61 on the bounce . Support 14.91. Target 16.75 I will add at 15.11 if it get there.
Stopped out of ZUMZ for 50 cent loss.
Sells rest of JOY 19.75
Joy reported bad earnings and guidance yesterday (see previous post).
The logic? for this trade was as follows;
The lower end of JOy’s guidance was 1.80. With a 10 P/E that gives me a value of 18.00. Support on the weekly chart is 17.06. The stock dropped 4.40 from the previous close, that’s 20 percent.
Although they missed their earnings by 7 cents they came in with with 54 cents, an O.K. profit, not going out of business.
Additionally JOY gapped down sharply after a long run down from the 65 dollar area. JOY could almost be considered a value stock at these prices.
Almost any large drop (15/20 percent or more) will bring in buyers if it doesn’t look like the company is going broke.
I had a tiered buy that would get me in at 17.51 if they had all filled. I considered a bounce off 17.06 a sure thing even if it goes lower later. Obviously I didn’t think it would reach 17.06.
The reason for the sell at 19.75 was a 50 percent retracement of the 4.40 drop
and by belief that the overall market is going much lower and JOY is going with it.
I hope this is helpful.
Buys VNCE 5.50 and 5.00 on very bad earnings and guidance.
Sells VNCE 6.70 as I was posting the buy.
JOY reported this morning and missed EPS by 7 cents. In addition they lower guidance to 1.80 vs Capital IQ consensus of 2.43.
Support on the weekly chart is at 17.06. I entered orders at 17.26, 17.51, 17.76 and 18.01 based on a 10 P/E
17.76 and 18.01 filled