SA Transcripts • Nov. 25, 2014
Should Signet Withdraw The Zale Corporation Offer?
- Signet should reconsider its offer to acquire Zale Corporation because the acquisition is not strategic and has a high risk of failure.
- Additionally, the acquisition will likely reduce Kay and Jared brands' operating performance.
- This transaction will also distract management from developing a sustainable long-term strategy and inhibit Signet's share growth.
Signet Jewelers: 7 Different Insiders Have Sold Shares During The Last 30 Days
- Seven insiders sold Signet stock within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- Four of these seven insiders decreased their holdings by more than 10%.
Signet Jewelers: Fundamental Stock Research Analysis
May. 22, 2014, 7:10 AM
May. 16, 2014, 1:07 PM
- The efforts of Signet (SIG +0.1%) to acquire Zale (ZLC +0.8%) could be done in by deal adviser Bank of America Merrill Lynch's failure to disclose a conflict of interest.
- BAML delivered a presentation to Signet last October in which it recommended to the company it make an offer to buy Zale for $17 to $21 per share. The investment bank then turned around to rep Zale in the merger talks while disclosing only "limited" prior relationships with Signet, according to The New York Times.
- The apparent foul-up gives TIG Advisors even more ammunition to convince other Zale shareholders to oppose the merger.
May. 9, 2014, 5:54 PM
- Zale (ZLC) investor TIG Advisors urges shareholders to join it at a special May 29 meeting of shareholders in opposing a $1.4B takeover by Signet Jewelers (SIG), arguing that the $21/share offer is "grossly unfair."
- Instead of the price the two diamond sellers agreed upon, TIG says it should be able to get $28.60/share in cash and stock, according to an SEC filing from the 9.5% owner of ZLC shares.
- ZLC rose 3.2% today, rising sharply toward the end of the session after TIG filed its position; SIG closed 1% lower.
Mar. 27, 2014, 8:27 AM
- Shares of Signet (SIG) trade higher in early action after the company turns out a better quarter than anticipated.
- Both the Kay and Jared brand showed solid sales growth.
- The impact on Signet's margins from increased promotional activity wasn't nearly as severe as what many retail peers saw during the same period. Gross margin fell 60 bps to 42.1%, largely due to higher input costs.
- A dividend hike from the company to $0.18/share a quarter is also adding to the Signet luster today.
- SIG +3.7% premarket
Mar. 27, 2014, 7:06 AM| Comment!
Mar. 27, 2014, 6:33 AM
Mar. 27, 2014, 12:05 AM
Mar. 26, 2014, 5:30 PM
Feb. 19, 2014, 3:17 PM
- The merger between Signet (SIG +18.5%) and Zale (ZLC +40.2%) gives the combined company extra clout when sourcing its products, according to Citigroup.
- The investment firm also likes the ability of brands to be cross-sold in new channels and for the jewelry sellers to strike synergies in key areas.
- A rationale reduction of Zale's store count will create even more upside.
- The clash of cultures shouldn't be too great with execs swapping back and forth between Zale and Signet over the years. Zale’s non-executive chairman, Terry Burman, is former Signet CEO.
Feb. 19, 2014, 12:45 PM
Feb. 19, 2014, 9:13 AM
Feb. 19, 2014, 7:37 AM
- Signet (SIG) confirms its acquisition of Zale (ZLC) in a transaction valued at close to $1.4B. Large Zale stakeholder Golden Gate Capital is on board with the deal.
- The company expects to finance the transaction through bank debt and a securitization of its accounts receivable portfolio.
- The merger is expected to be accretive in the first year at a high single-digit percentage.
- What to watch: Zale's international business and strong online business strengthen a couple of areas Signet had room to improve. The combined company will also yield some improved pricing power.
- Premarket action: ZLC +40.8% to $20.99 and SIG +11.0% to $88.
Feb. 19, 2014, 7:24 AM
Jan. 27, 2014, 7:37 AM
Dec. 27, 2013, 7:32 AM
- Holiday sales rose this year by 2.3% to easily top last year's 0.7% rise, according to fresh data from MasterCard Advisors. The mark falls short of the early projections from ShopperTrak and the NRF.
- Jewelry (ZLC, SIG, NILE, TIF) and children's clothing were two categories that showed strong gains.
- The shift to online channels was pronounced this year with mall traffic slow. Online sales for the holiday season were up at a double-digit pace, but also fell short of some forecasts.
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Dec. 11, 2013, 11:08 AM
- An expected rise in weddings next year could be a nice gift for Signet (SIG -0.9%), Zales (ZLC -0.8%), and Blue Nile (NILE -0.8%). Wedding-watcher site TheKnot.com maintains a surprising number of couples waited out having a wedding date ending in a "13" due to superstitions.
- The companies are using advertisement during NFL football to pitch their case with grooms-to-be. TV spending for the jewelry sellers is expected to show big growth in Q4 with the NFL a large focus.
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