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BlackBerry Losses Less Than Expected; J. C. Penney Details Share Sale; Nike Races to New High

Dan Berman
Hot Stock Minute
BlackBerry Losses Less Than Expected; J. C. Penney Details Share Sale; Nike Races to New High

BlackBerry (BBRY) released its quarterly report this morning. Losses were less than expected at 47-cents a share versus estimates of 49-cents. However, the company came in a bit shy on revenue at $1.57-billion versus $1.61-billion. CEO Thorsten Heins expressed his disappointment in a press release. But the company has canceled the traditional conference call with analysts. On Monday, BlackBerry said it agreed in principle to be acquired by its largest shareholder, Fairfax Financial for $9 a share.

J.C. Penney (JCP) is now down more than 7% in early trading. The company revealed more details this morning of a share sale which it announced yesterday. JCP plans to sell 84-million shares at a price of $9.65. That's where shares are trading now on the announcement. The whole situation is really a bit confusing. Yesterday CEO Mike Ullman said liquidity levels were fine. It was after the close, the company appeared to reverse course, with news of the share sale. J.C. Penney stock is now down 22% in the past week. Shares have plunged 50% since the start of the year.

Nike (NKE) is up more than 6% since yesterday's close and hit a new all-time high. The race to the top comes on quarterly earnings of 86-cents a share. That ran past estimates of 78-cents. Revenue that was basically in line with expectations at nearly $7-billion. Sales were up by $500-million over last year, and profits rose by more than 1/3 in that time. Nike says it's seeing strong demand for its athletic gear both here and abroad. The company's basketball and running categories performed particularly well. Even ahead of this morning's gains Nike stock was up 36-percent year-to-date.

Also reporting this morning is a company that moves a lot of Nike merchandise: Finish Line (FINL) which is up as much as 11% in early trading. Finish Line beat estimates posting profits of 54-cents a share when estimates were for 45-cents. Sales were $10-million more than expected at $436-million. Finish Line is up 19%, which is just about half of Nike's climb.