Diamonds and Dogs
8/16/12Perry Ellis International Inc. (PERY)
Perry Ellis is not very fashionable today, down 15.58% at $18.80. The apparel company saw its shares sink after announcing a loss for the second quarter. Perry Ellis posted a $2.4 million second-quarter loss. Earnings were pulled down by costs related to its restructuring and early retirement initiatives. The Miami-based company's loss amounted to $0.17 per share and compared with a profit of $1.8 million, or $0.11 per share, in the same quarter last year. The $0.17 per share loss is well off of analysts' estimates of a profit of 2 cents per share on $204.1 million in revenue. The poor quarter also caused the company to cut its full year outlook to a range of $1.75 to $1.80 per share from its March prediction of $1.95 to $2 per share. The large loss that the shares are facing today brings the stock into the middle of its 52-week range.
Coinstar Inc. (CSTR)
Coinstar Inc. is cashing in today, up 7.59% at $51.88. The automated change machine company saw its shares get some green after rumors were released that buyout talks are in session. The New York Post sparked the excitement today as it reported that Coinstar "has been in discussions with an undisclosed private-equity firm for several months and that the talks are heating up." The thought that a buyout might be on the horizon has led investors to buy shares as most buyouts come at a significant premium to the current share price. The New York Post did not disclose who the perspective buyer is; just that it is a private equity firm. The news has left investors hearing a cha-ching sound, but whether the a deal will be made is yet to be seen.