Today’s Research Reports on Stocks to Watch: XpresSpa and Six Flags
NEW YORK, NY / ACCESSWIRE / October 25, 2018 / It may have been a big gaining day for XpresSpa on Wednesday, but it wasn’t because of any news from the company. It may have been the result of a short squeeze sending shares of the low float up nearly 30%. Shares of Six Flags Entertainment were plummeting after reporting financial results that sent the stock to a new 52-week low.
RDI Initiates Coverage on:
XpresSpa Group, Inc.
https://rdinvesting.com/news/?ticker=XSPA
Six Flags Entertainment Corporation
https://rdinvesting.com/news/?ticker=SIX
XpresSpa Group, Inc. shares closed up almost 28% on about 24.2 million shares traded on Wednesday despite any catalyst or news from the company. The big gains may have been the result of a short squeeze, considering that as of October 17th, there was roughly 53% shares sold short of the low float stock. It was about two months ago that the company announced second quarter results. Ed Jankowski, XpresSpa Group CEO, stated, “Second quarter 2018 was a period of transition in which we took the next steps in our plan to reduce corporate overhead and store costs, refine our labor model and increase our process efficiencies to maximize both store-level and overall profitability. We generated general and administrative savings of $1.3 million on a sequential basis, excluding severance expense and other one-time costs totaling $0.6 million. Additionally, our cost reduction and operational improvement efforts at the store-level are producing immediate enhancements to store-level contribution margins, improving to 21% of sales in the second quarter, compared to 18% in the first quarter. Combined, these efforts have reduced our consolidated operating and adjusted EBITDA losses in the second quarter.”
Access RDI’s XpresSpa Group, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=XSPA
Six Flags Entertainment Corporation shares closed down roughly 16% yesterday and hit a brand new low of $53.29 after reporting financial results. The theme park operator missed on earnings and revenue in its third-quarter announcement on Tuesday night. Profits for the third quarter for $2.16 a share on sales of $619.8 million. Analysts had been expecting earnings per share of $2.32 and revenue of $633 million. CEO James W. P. Reid-Anderson said during the earnings call, "Although we did not experience the dramatic hurricane events of last year's third quarter, weather was a net drag on attendance growth during Q3. The sustained rain on the East Coast coupled with heat and rain in Texas did not allow us to gain the expected weather advantage over 2017. In addition, severe flooding at Six Flags Over Texas and Hurricane Harbor Arlington forced us to temporarily close those parks in late September." He added, "Without any doubt, this was the worst third quarter weather we have experienced since I came to the company 9 seasons ago."
Access RDI’s Six Flags Entertainment Corporation Research Report at:
https://rdinvesting.com/news/?ticker=SIX
Our Actionable Research on XpresSpa Group, Inc. (NASDAQ: XSPA) and Six Flags Entertainment Corporation (NYSE: SIX) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
