Diamonds and Dogs
4/10/13Health Management Associates Inc. (HMA)
Health Management is making its investors feel nauseous today, down 16.36% at $10.53. The hospital and care facility operator saw its shares flat line after lowering its full year forecast. Management now sees full-year operating EPS of $0.86-$0.95 on revenue of $6.8 billion-$7 billion, well below its prior view of $0.86-$1.01 and $7 billion-$7.2 billion, respectively. CEO Gary Newsome reassured investors, saying, "W]e have reduced our costs accordingly going forward, seasonal nursing labor contracts are expiring, and we will continue to closely manage our expenses relative to the volume and acuity of our patients." Health Management is still trading well above its 52-week of $5.92.
Pizza Inn Holdings Inc. (PZZI)
Pizza Inn is hot out of the oven today, up 14.71% at $5.85. The pizza franchiser saw its shares jump after news that former Applebee's CEO, Dave Goebel, agreed to opening 10 Pie Five Pizza Co. shops in the Kansas City area. Goebel was CEO of Applebee's for seven years and knows a thing or two about the restaurant business. Goebel said, "We looked very carefully at several fast-casual pizza concepts before making our decision, Pie Five already has the franchise infrastructure and support system in place and this is our opportunity to get in on the ground floor of a concept that is rapidly expanding throughout the nation." Pizza Inn set a new 52-week high at $6.18 intraday.