IPO rush. There are 12 deals set to price this week. This is the rush to get deals done before Thanksgiving.
First Chinese IPO since Alibaba. Overnight, eHi Car Service (EHIC (EHIC)) priced 10 million shares at $12, the low end of the price talk of $12-$14. This is the no. 1 car services provider and no. 2 car rentals provider in China . The deal was postponed last week when a last-minute filing from the company noted that there have been some allegations that the company has misrepresented the size of its fleet, and other allegations. The company has denied these allegations.
Also last night, STORE Capital Corporation (STOR), a REIT formed by Oaktree Capital, priced 27.5 million shares at $18.50, in the middle of the $17 to $19 talk. This is the first REIT since April 2014. They are a Single Tenant Operational Real Estate (STORE--get it?)-single tenants in mostly single buildings. Think restaurants (Applebee's) or health clubs or movie theaters. Good dividend yield of 5.5 percent.
One notable trend in the last few weeks: price restraint. All deals are being priced within the range, nothing above. Why? It's near the end of the year, nobody wants to buy something that is overpriced.
IPO buyers are calling the shots, and that is good for returns.
Elsewhere: Mixed results for retail earnings. TJX (TJX) reported decent numbers, a slight miss on revenues. Margins at 29.4 percent strong, comparable store sales up 2 percent (European comps were down 3 percent, however). CEO Carol Meyrowitz says "the fourth quarter is off to a very strong start" but she lowered fourth quarter earnings (partly due to currency) and 2015 guidance a bit.
Huh? It's not crazy to lower the bar. Talk optimistic, but lower the expectations.
Home Depot (HD (HD)) did fine, with same store sales up 5.2 percent. Earnings missed by a penny, and most importantly the reaffirmed guidance for the full year.
Dick's Sporting Goods (DKS) is seeing the effects of lower interest in golf...that and lower hunting revenues kept comp store sales at 1.1 percent, low end of the guidance.
Urban Outfitters (URBN (URBN)) are seeing significant margin pressure in their Urban Outfitters. Fashion misses and traffic declines.