Diamonds and Dogs
1/29/13VMware Inc. (VMW)
VMware is falling out of its cloud today, down 21.45% at $77.23. The cloud infrastructure company saw its shares drop after the company released news regarding a restructuring. VMware management stated that the company would lay off 900 workers, and take on a charge of around $90-$110 million in an effort to restructure the company. Furthermore, CEO Pat Gelsinger said that the company beat Wall Street estimates this quarter but would severely cut its outlook. VMware is now projecting revenue to be around $1.17-$1.19 billion, compared with $1.25 billion expected by analysts. The company set a new 52-week low today and reached levels not seen is December 2011.
J.C. Penney Company Inc. (JCP)
J.C. Penney is moving more than a few penny's today, up 9.31% at $21.01. The department store company saw its shares climb higher on news that it would bring back sales. J.C. Penney management said that it would bring back the big discounts that it cut last year in an attempt to bring in more customers. Along with the increase in sales, the company also said it would add price tags and signs to show shoppers how much they will save by shopping at their stores. J.C. Penney has been struggling to even turn a profit (loss of $433 million for its current fiscal year), however bringing back sales seems to have investors hopeful. J.C. Penney is far from its 52-week high of $43.18.