Diamonds and Dogs
Xerox (XRX) keeps improving. The photocopy and printer company is up 6% to a new 52 week high on news they will sell their 25% stake in Fujifilm Holdings for $2.3 billion. Xerox expects to use the proceeds opportunistically to pursue accretive M&A in core and adjacent industries, return capital to shareholders and pay down its $550 million December 2019 debt maturity.
Shake Shack (SHAK) looks a little shaky. The burger company is down 17% after lowering its same-store sales growth guidance. The company actually beat estimates for the quarter as sales rose 31.9% to $157.76 million but lowered fourth quarter guidance as the decision to move to a single delivery provider, GrubHub may not be the wisest move. Analysts are concerned about the fourth quarter and costs are certainly not going down. With a stock trading for 80 times earnings, there is little room for mistakes.
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