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Cumulus Unveiling Streaming Radio; Changes at Chili’s; Another J.C. Penney Exit

Dan Berman
Hot Stock Minute
Cumulus Unveiling Streaming Radio; Changes at Chili’s; Another J.C. Penney Exit

Cumulus Media (CMLS) is set to announce a deal today with Rdio. That's a subscription music service from the founders of Skype. Together the companies hope to compete against more established streaming services like Spotify. Prior to this morning Cumulus is up 97% year-to-date, giving it a market cap approaching $1-billion.

Vornado Realty Trust (VNO) is following Bill Ackman out of J.C. Penney (JCP). Vornado Chairman and CEO Steve Roth has just resigned from the Penney board of directors, and an SEC filing indicates he plans to sell Vornado's stake in the troubled retailer very soon. Vornado currently owns 6.1% of Penney. At one point is was holding nearly 10%, but sold the rest in March. Vornado's share prices are up 5% year-to-date. J.C. Penney stock is down 34% in the same time.

Now we look at Brinker International (EAT) which owns the restaurant chains Chili's and Maggiano's. The Wall Street Journal says Chili's will announce plans tomorrow to roll-out tabletop computer screens. They'll be used to take menu orders, accept credit card payments, and let diners play 99-cent videogames. The computers have already been in testing, and increase the amount that people spend particularly on dessert and coffee. Brinker stock has made a steady climb this year, rising 28%.

Urban Outfitters (URBN) is pushing a plan to sell alcohol at a store under construction in Williamsburg, Brooklyn. It would be a first for the chain but not unprecedented in the industry. A number of upscale stores offer shoppers champagne. By the way, Sterne Agee initiated coverage of Urban Outfitters with a buy on Friday citing strength in its Anthropologie chain. The company stock could use some juicing. It's down 6% year-to-date.