Just like Bill Ackman with HLF, he to got the gov involve in their short thesis
Janney Capital's Lumber Liquidators (NYSE: LL) analyst David Strasser, who upgraded the stock a few short days ago, is back out in defense of the company amid the continued sell-off in the stock after Florida Sen. Bill Nelson called for a government investigation into its China-made laminate flooring. Strasser said investors should take a deep breath.
"This is not a fair fight against LL," Strasser comments. "First, it is highly unlikely that even if formaldehyde levels were elevated there is any liability, as the damage is at best nominal. Additionally, there is plenty of misinformation regarding testing procedures. In this note, we try to straighten that out. Quantifying damage to the brand remains a challenge, but if other issues are resolved, this stock will rise."
There appears to be a rush amongst consumers to get their floor tested - We have good news and bad news. The good news, is your floors are fine, the bad news, it’s an expensive test, and you won’t get accurate results. Ironically, every floor that is tested is likely to have no formaldehyde, because it is off gassed (dissolves into the air) in the month or so after being removed from the box, which means, that all the formaldehyde disappears shortly after the products are taken out of the box and installed. For example according to the Minnesota Department of Health, and others, leaving windows open allows off gassing, along with opening the flooring box for a few days, or keeping temperatures low for a bit will help rid the product of formaldehyde. So flooring inside homes shouldn't be tested, because the formaldehyde does not exist after a short period of time.
This also dramatically decreases the potential for any harm to individuals, as there is no long term exposure. Additionally, since carpet, natural gas appliance emissions, furniture and many consumer products all contain some formaldehyde, a test would not necessarily isolate the the source. But flooring is a finite source, s
Miller Tabak maintain their "hold" rating on BOBE The target price is set to $53. Yell right, cold day in hell before BOBE see's $53. Try $30 to $20
Janney Capital downgraded Bob Evans Farms (NASDAQ: BOBE) from Buy to Neutral with a price target of $48.00 (from $60.00). Neutral is code word for sell! Going to $30
Your kidding right? $470 million in debt, $3.7 million in cash, profit margins of 2% earning a whooping $1.40 & you would buy this pig at $45? Really? See u at $30 soon, then $20.
Piper Jaffray analyst Charles Duncan maintained an Overweight rating on Orexigen Therapeutics (NASDAQ: OREX) and raised his price target to $26.00 (from $16.00) intra-day Tuesday, after the company released an 8-K regarding U.S. patent 8,969,371 ('371) and a series of applications.
Duncan notes that disclosed in the patent and applications are details on the LIGHT study interim at 25% of events. He notes Contrave demonstrated a statistically significant benefit over placebo for CV events, including CV death. Additionally, the patent extends patent protection for Contrave to 2034.
Duncan said the news could turn the obesity/metabolic syndrome market on its head. "We see this CVOT effect as surprisingly positive and it has several implications, in our view for the potential of Contrave," he commented. "These include possibly driving competitive advantage in the US market, and enhancing probability of approvals ex-US. We also see the new patent as “galvanizing” the IP protection behind Contrave and thus ensuring that it is a longlived asset. Finally, in terms of life cycle management efforts in combining the drug in a regimen with anti-diabetic drugs, we see these data as ramping interest in these efforts by the company and its potential collaborators."
The analyst also sees newsflow soon. He said the 50% interim analysis is expected sometime this quarter, based on prior comments from the company.
Poor Returns. When it comes to returns, Bob Evans significantly underperforms its peers. According to our calculations:
•On a ROA basis, Bob Evans makes 1/6th of McDonald's returns, 1/7th of Yum! Brands returns, and 1/7th of Panera Bread's returns.
•On an ROE basis, Bob Evans makes 1/6th of MCD's returns, 1/11th of YUM's returns, and 1/5th of PNRA's returns.
2. Poor margins. Similarly, Bob Evans significantly underperforms its peers in terms of margins. Again, our calculations:
•In terms of operating margin, Bob Evens makes 1/6th of MCD's operating margins, and 1/11th of YUM's, and 1/5th of PNRA's.
•For profit margin, Bob Evans makes 1/10th of MCD's profit margin, 1/6th of YUM's, and 1/4th of PNRA's.
3. Too Expensive. We calculate that:
•On a P/E basis, Bob Evans is more expensive than all the peers we looked at. In fact, on a P/E basis, Bob Evans is 2.8 times more expensive than McDonald's (NYSE:MCD), 2.4x more expensive than Yum! Brands (NYSE:YUM), and 2.1x more expensive than Panera Bread (NASDAQ:PNRA), according to our own calculations.
•On an EV/EBIT basis, Bob Evans is 6.4 times more expensive than McDonald's, 5x more expensive than Yum! Brands, and 4.8x more expensive than Panera Bread.
Let's combine these points together. Considering that Bob Evans offers investors much lower profitability and seriously inferior margins to its much cheaper peers, we don't believe this premium to be justified.
Bob Evans Farms (NASDAQ: BOBE) reported Q3 EPS of $0.60, $0.10 worse than the analyst estimate of $0.70. Revenue for the quarter came in at $367.2 million versus the consensus estimate of $358.83 million.
Bob Evans Farms sees FY2015 EPS of $1.40-$1.60, versus the consensus of $1.97.
No business separation for Bob Evans Farms
Bob Evans Farms (NASDAQ:BOBE) announces it will not pursue a sale or spinoff of its BEF Foods segment.
The company reported FQ3 earnings after the bell with the restaurant business showing a 3.8% comp for the quarter.
The comp was 5.2% in January
KeyBanc downgraded Bob Evans Farms (NASDAQ: BOBE) from Hold to Underweight with a price target of $45.00.
Analyst Christopher O'Cull said, "We are downgrading Bob Evans Farms, Inc. to UNDERWEIGHT from HOLD based on the following concerns: 1) BER’s SRS remain weak because the Company is not addressing dine-in traffic declines, in our view; 2) BEF Foods will likely continue to be a low-margin business given its limited pricing power, lack of meaningful scale, and increased competition; 3) the Company’s greater financial leverage may limit its ability to pursue meaningful share repurchases or dividend increases the next several quarters; and 4) our view of premium valuation. We lower our FY15 EPS estimate to $1.70 from $1.90 (Street $1.92) to reflect lower sales and margin at both divisions
Compass Point analyst Kevin Barker reiterated a Sell rating and $7 price target on Ocwen Financial Corp (NYSE: OCN), however, he said shares could react positively to the update after close on various near-term issues regarding the company. The analyst said the news "shows OCN is increasing cash balances via asset sales while the company could record gains from the sales of the agency MSRs."
The analysts write their note the morning after Ocwen Financial announced more MSR sales, and the hiring of advisors to explore strategic options. The team is suspending Ocwen EPS estimates for 2015 and 2016 "since we have no idea what the new Ocwen will look like." Sterne's best estimate of tangible book value is about $10 per share