Today - Tuesday, November 25, 2014
- Lululemon (LULU +3.8%) will open a men's store in New York on Friday.
- The Athletica outlet in SoHo will be the company's first men's-only store.
- What to watch: The development could raise the stakes of the Nike (NYSE:NKE) vs. Lululemon battle after the Swoosh opened its first-ever women's store last week.
- Groveland Master Fund files notice with the SEC on its intention to challenge the slate of nominees for the board at Biglari Holdings (BH +0.3%).
- Sardar Biglari has drawn criticism for excessive compensation and poor business decisions at the company.
- Biglari Holdings owns the Steak N' Shake chain and has a sizeable stake in Cracker Barrel.
- SEC Form 14A
- An exec with DirecTV (DTV +0.5%) says the company could integrate a partnership with a daily fantasy sports operator such as FanDuel or DraftKings into its NFL Sunday Ticket package.
- The two daily fantasy leagues have shown explosive growth over the last couple of years
- A fantasy initiative could help DirecTv offset the $1.5B per season that it will pay for Sunday Ticket beginning next season.
- Wedbush Securities thinks the latest developments at PetSmart (PETM +0.3%) give very limited upside potential for investors and a downside to below the $70 level.
- A serious game of cat-and-mouse is currently underway between management and potential P-E buyers with PetSmart's recent cost-cutting plan a big part of the equation in handicapping a deal, notes the investment firm.
- The wildcard in the mix is still Petco, although Wedbush rates a mega-merger in the pet supply store sector as less likely now.
- DineEquity (DIN -0.1%) is interested in a purchase of the Fazoli's chain, according to The New York Post.
- Owner Sun Capital Partners has recently put the Italian chain up for sale, tip sources.
- Fazoli's has 217 restaurant in 26 states and doesn't compete directly with the company's IHOP and Applebee's chains.
- Build-A-Bear Workshop (BBW +5.6%)rallies after Piper Jaffray issues positive comments on the retailer and reiterates an Overweight rating on the stock.
- Management at Build-A-Bear is praised for product and marketing initiatives which have helped carry momentum into the holiday selling season.
- Piper thinks a Build-A-bear cost rationalization plan will be unveiled in 2015.
- Post Holdings(POST +5.5%) gains after issuing its FQ4 report.
- Though Post did manage to increase market share in the RTE cereal category during the period, overall demand in the U.S. for cereal is in a downward trend.
- The company warned it expects the weakness in ready-to-eat cereal to continue into FY15.
10:22 AM| Comment!
- Citing the recent slowdown in the U.S. streaming sub growth (as shown by the company's Q3 numbers), Stifel's Scott Devitt has downgraded Netflix (NASDAQ:NFLX) to Hold.
- Devitt: "We view risk / reward as balanced at current prices. We also view shares as more attractive in the low-$300 range until we gain more clarity on domestic subscriber growth trajectory, all else being equal."
- He maintains a positive long-term stance on Netflix due to expectations for international success, but thinks U.S. growth concerns will remain a near-term overhang.
- Separately, Reed Hastings stated in Mexico City yesterday Netflix's Latin American ops now have ~5M subs (out of a global base of 53M), and aren't yet profitable. Hastings also admitted pirated content remains a challenge for Netflix in the region.