Diamonds and Dogs
10/2/12Express Inc. (EXPR)
Express Inc. investors are expressing disdain today, with shares down 22.32% at $11.66. The clothing company saw shares dropped when management announced that third quarter earnings would be down. Express announced that the earnings would come in below expectations due to a mix of weak sales and higher promotional activity (in an attempt to lower inventories). The company expects to earn 16 to 20 cents per share, versus the previous estimate of 27 to 32 cents per share. Analysts were expecting earnings of 29 cents per share. Express set a new 52-week low today, scaring investors into using the express checkout lane.
MetroPCS Communications Inc. (PCS)
MetroPCS is speaking investor's language today, up 17.88% at $13.58. The wireless telecommunications company saw their shares pop after news was released that T-Mobile was interested in buying MetroPCS. T-Mobile said that management was currently talking with MetroPCS to work out a deal, which could be mutually beneficial for both companies. T-Mobile USA is the country's fourth-largest cellphone company, with 33.2 million subscribers. If a deal is struck, T-Mobile would add 9.3 million subscribers that are currently with MetroPCS. Furthermore, the deal would give T-Mobile access to more space on the airwaves, a critical factor as cellphone carriers try to expand their capacity for wireless broadband. MetroPCS set a new 52-week high today.