Diamonds and Dogs
Time to restore your portfolio after August with today's diamond. Restoration Hardware (RH) jumped 7% today following better than expected earnings. The high-end home furnishings retailer saw second quarter earnings rise 27% and lifted guidance for next quarter. To add fuel to the rally Restoration Hardware said they would be launching two new businesses in the coming months, RH Modern and RH Teen followed by four revolutionary design galleries in Chicago, Denver, Tampa, and Austin. Looks like Restoration Hardware may have more upside going forward.
Computers and cords keep you connected, even when a company drops 18%. Today's dog is Finisar Corporation (FNSR), which specializes in fiber optic communication products. Their revenue fell 2% quarter over quarter and fell 4% year over year. Earnings came in under expectations as management blamed the poor numbers on a shorter quarter, a one week shorter quarter than last, but Wall Street isn't buying the excuse. The stock is now trading at a two year low. Hopefully the stock will find support at the $12 level.