Seeking Alpha

CFO warnings about government shutdown accelerate

  • Scores of companies in nearly 200 public filings have cautioned investors that their businesses could suffer from the government shutdown, now in its ninth day.
  • J.C. Penney (JCP), Wolverine World Wide (WWW) and Humana (HUM), for example, all warned this week of potential bottom-line consequences of federal furloughs and agency closures; corporate M&A plans also appear to be on hold as executives await a return to normal.
  • Every week the government is closed trims economic output by ~$1.6B, or 0.16 percentage point for the quarter, according to research firm IHS, and "if the shutdown drags on, the effects will start to add up."
  • The last fight, in 1995-96, impacted consumer confidence; with the year-end shopping season approaching, that's critical, especially for retailers.
  • ETFs: RTH, PMR, XRT, RETL, XLP, VDC, FXG, IYK, PSL, RHS, PSCC, UGE, SZK, XLY, VCR, FXD, IYC, PEZ, RCD, PSCD, UCC, SCC.
Comments (6)
  • Continental Kid
    , contributor
    Comments (191) | Send Message
     
    wow...JCP ...grasping at straws now....."we were doing ok before last week when the government decided..... now we think sales will be lower"......way to go.....Ron Johnson is/was your bogey man....
    9 Oct 2013, 07:39 PM Reply Like
  • sskcar
    , contributor
    Comments (19) | Send Message
     
    This is just a fake news!!..CFO of JC Penny said this where? Obviously this might be in the filings for 200 companies when they filed, not just for JCP. So what's the point? This stock is already dead beaten, so no use of faking up more news.
    This is the right time for Carl Ichan to jump in and turn around JCP. Just show Ackman that he is wrong again!!!.. (I like Ackman on HLF short bet (but I was long HLF), but on JCP I did not like his idea)

     

    I just checked all the most recent filings, did not find anything in there.
    9 Oct 2013, 07:47 PM Reply Like
  • nemonemo
    , contributor
    Comments (304) | Send Message
     
    Blame it on Bush. Thats how Obama solve problem. Blame someone else.
    9 Oct 2013, 07:51 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (7838) | Send Message
     
    83% of the government is wide open.

     

    Look it up...
    9 Oct 2013, 07:59 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3310) | Send Message
     
    The last shutdown, the market rallied.

     

    Look it up...

     

    Bullish
    9 Oct 2013, 09:48 PM Reply Like
  • Patent News
    , contributor
    Comments (1282) | Send Message
     
    this time is different

     

    release the cracken!
    9 Oct 2013, 10:19 PM Reply Like
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