*****NOTE: They slashed their full year outlook, says for Visalus dropped by over 47%. It's like Ackman has been telling everybody, these pyramids are NOT sustainable. From the article, "For the year, Blyth now expects earnings of 75 cents to 90 cents per share. Its prior guidance called for earnings of $1.30 to $1.45 per share. The company said that the revised outlook is mostly due to a decline in ViSalus' sales expectations."
GREENWICH, Conn. (AP) -- Blyth lost money in its second quarter on weak sales and direct sales company slashed its full-year earnings outlook, sending shares tumbling nearly 23 percent to a multiyear low Friday.
The company, which sells candles, home accessories and weight-loss products through home parties and other methods, lost $3.2 million, or 20 cents per share, for the period ended June 30. That compares with a profit of $8 million, or 46 cents per share, a year ago.
Stripping out dividends paid to ViSalus noncontrolling stakeholders in excess of income earned, Blyth Inc. lost 8 cents per share.
Revenue for the Greenwich, Conn., company fell 32 percent to $211.7 million from $309.5 million, mostly due to a 47 percent sales decline at its ViSalus business, which includes energy drinks and nutritional products.
Sales for PartyLite, which includes candles and home decor, dropped 12 percent to $77.8 million as it had fewer sales associates in many of its bigger, more mature markets.
One bright spot was that Miles Kimball sales, which includes catalog and online sales, climbed 4 percent to $32.4 million on a double-digit increase in sales of health and wellness products and increased sales associated with the new Miles Kimball credit program.
For the year, Blyth now expects earnings of 75 cents to 90 cents per share. Its prior guidance called for earnings of $1.30 to $1.45 per share. The company said that the revised outlook is mostly due to a declin
Sentiment: Strong Sell
Oh yes, longs have a little something to smile about. BTH has moved up slightly, but seriously, after the huge drop it experienced in the last year, how can anyone get excited and call this a "short squeeze" Stock 101 is stocks follow earnings. And by their own admission, BTH earnings for the upcoming year SUCK!
And oh yeah, they talk about insider buying, but how many other companies have had insider buying that caused a mild blip up followed by a huge drop??? Hello!
The only real reason for the blip up is some investors are buying BTH to capture the dividend and be in by ex-div day and buy ahead of the herd and get It a little cheaper. However, those who buy to take advanantage of dividend capturing also dump very quickly. That could and probably will result in BTH dropping down to a more realistic $8.65 or lower price.
Clearly, this is nothing to drive BTH up, certaintly not earnings.
If you are going for the dividend capturing, keep your stops tight and buy a protective put. Also get out early ahead of the herd before you see mass dumping.
Sentiment: Strong Sell
The news release may be old but the content is still current. This shows numbers for the year, not last month, next month or 6 months from now but for the year.
I admire the longs tenacity, obviously they are new and do not understand how the stock market works. Perhaps they have never the saying, "Don't try to catch a falling knife."
I would be more excited about BTH if their focus was more on candles than fad and gimmicky weight control products and pyramid schemes. And if I was going to buy into a stock represented by one of these companies, it would be one that is growing and profitable like USANA not VISALUS which has shown continued decline in sales and massive loss of reps.
BUT...if certain irresbonnsible people want to cheerlead this stock and think they can hype it up...GOOD LUCK! For me, I'll keep my short position and hold on while the stock drops even more.
Actually, it IS old news and it explains the drop from $14+ to $11. The trading below $11 is due to greedy shorts who did not realize how much of the float was already short and those who did but refused to buy to cover because like Ackman, they are "shorting to zero". This is great news for the longs, because many of those shorts will not be able to afford the margin requirements when the stock starts moving up$1 and $2 per day and their buying will push us much higher than we would have gone otherwise.
Thanks Short Sellers!
Sentiment: Strong Buy
Suggest you get some training before you come on here and post again. I hope you do not have too much invested in BTH and if you do, suggest you keep your stop losses tight and buy protective puts as a hedge as the stop collapses.
Sentiment: Strong Sell