Dang the entire float trade hands today. I see #27 before the selling is done
Conn's plunges after cutting profit forecasts for this year and next
Shares of Conn's (CONN), a retailer of electronics, appliances, furniture and other home goods that also provides consumer credit to support purchases, are plunging after the company issued weaker than expect fourth quarter earnings guidance and lowered its fiscal 2014 and 2015 profit forecasts. WHAT'S NEW: This morning, Conn's forecast fourth quarter adjusted EPS of 75c-80c, far below expectations of 93c. The company also lowered its FY14 adjusted EPS view to $2.59-$2.64 from $2.75-$2.80 and cut its FY15 EPS outlook to $3.40-$3.70 from $3.80-$4.00. FY14 and FY15 consensus estimates were $2.77 and $3.96, respectively. The company said, “Credit segment performance did not keep pace and delinquency and charge-offs rose in December and January. Sales driven portfolio growth combined with seasonal portfolio increases placed pressure on our collections operation and execution deteriorated. Sustained below-normal temperatures and the related higher energy costs in some of our markets also temporarily impacted our consumer’s income available for debt service." ANALYST REACTION: This morning, research firm Oppenheimer downgraded the stock to Perform from Outperform following the company's negative Q4 pre-announcment and lowered guidance. Another firm, Stephens, downgraded Conn's to Equal Weight from Overweight. PRICE ACTION: In late morning trading, Conn's plunged $18.36, or about 33%, to $37.44 on nearly thirteen times its average daily trading volume. Despite today's slide, the stock has gained about 22% over the past twelve months. OTHERS TO WATCH: Other retailers competing with Conn’s include Rent-A-Center (RCII) and Aaron's (AAN).
Big boys were dumping today, they were not buying. This has a ways to go down before any up tick. II think it trades between $23 & $27 for the next 3 to 6 months before any movement up or down. No reason to buy, at these high levels.