Diamonds and Dogs
5/15/12Arctic Cat Inc. (ACAT)
Arctic Cat's stock was freezing today with its temperature dropping 10.45% at $37.89. The company posted a smaller quarterly loss but the snowmobile maker forecasted weak full-year results as it expects softness in North America sales. Arctic Cat said it expects North America industry retail sales of all-terrain vehicles to be flat or down up to 5 percent, and North America industry retail sales of snowmobiles to be flat to up 2 percent. Reuters stated, the company forecasts full-year earnings of $2.40 to $2.50 per share on sales of $631 million to $650 million. Lower than analysts' expectations of $2.70 per share on sales of $659.8 million. Arctic Cat had a rough day and continues to trade lower in after-hours trading.
Groupon Inc. (GRPN)
Clipping coupons seems to be obsolete; Groupon is up 3.71% at $12.17 today. Groupon soared after reporting strong first-quarter earnings results on Monday, gaining 33 percent since Friday's close. Furthermore, over the last four quarters, Groupon has generated $310 million in free cash flow. Mark May, an analyst from Barclays Capital stated, "Groupon is tackling a massive multi-billion market which is local commerce, and we think that growth in mobile smartphone adoption is going to be a tailwind for the company for several years." May also decided to put a price target on Groupon at $27.00, over double its current price. The company does have to face that its post-IPO lockup date is June 1, when about 600 million shares go on sale. The lockup ending means that at this point all insiders are allowed to sell their shares.
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