About Us | Contact Us
May 23, 2012 8:45 PM EDT
Updated: Sep 3, 2010 6:20 AM EDT  

Consumer

Leohner, Ahern, Anastasi (212) 829-5484

News and Views

 

Consumer Discretionary stocks soared higher again on better than expected Same Store Sales from retailers.  The Index was up 3.3% overall, better than the 2.5 estimate as the beat/miss ratio was much better than the past 3 months coming in at 62%/38%.  Retailers in general have moved up 6% in two days and keep in mind that the group had been very depressed coming into the week so this bounce could be just that…….I would not chase the group.


Macro/Technicals

SPX: 1090.10; +.91%
RLX: 420.59; +2.19%
RTH: 91.37; +1.85%
XLY: 31.81; +1.86%
XLP: 27.12; +.63%
VIX: 22.87; -2.76%

Leaders: PIR, FBN, SKS, LZB, JWN, FRED, PBY, AEO
Laggards: FBN, SKS, LZB, JWN, FRED, PBY, AEO

Sector News, M&A, Capital Raises

 TSCO  Tractor Supply begins trading on a split-adjusted basis today ($71.41).  The company previously announced the 2-1 split on July 29.

 

General Tobacco calling it quits – WSJ.  The low-priced cigarette maker will shut down after failing to make payments owed to states under the industry's $206B Master Settlement Agreement. The WSJ says General Tobacco is the sixth-largest US tobacco company.

 

SHOO  Steven Madden purchases $48.75M Betsy Johnson LLC loan from lenders for ~$27.6M on 27-Aug -- 8K.  The loan is currently in default.

  • The loan agreement contemplates repayment of principal in quarterly installments of varying amounts over the course of the loan with a final installment on 20-Aug-12.
  • The loan bears interest at a rate per annum from time to time equal to the greater of (i) the LIBOR rate plus 5% and (ii) 10% per annum.
  • The loan is secured by the borrower’s personal property, accounts, deposit accounts and cash, equipment, fixtures, general intangibles, goods, inventory and intellectual property as well as the pledges of membership interests of each of Betsey Johnson and Chantal Bacon.
  • The loan agreement requires compliance by the borrower with specified financial covenants the failure with which to comply in many instances constitutes an event of default under the loan agreement allowing Steve Madden (as successor to the lenders) to declare all obligations immediately due and payable, charging the borrower the default rate on the outstanding obligations and allowing certain foreclosure and related actions with respect to the collateral.
  • The borrower is Steve Madden's licensor providing the right to use the Betsey Johnson and Betseyville trademarks in connection with the sale and marketing of handbags, small leather goods, belts and umbrellas.

HOTT Hot Topic holder Becker Drapkin discloses a 5.1% stake in a 13D filing.  Joins with Carlson Parties to beneficially own 9.04% stake


Research Away

PSS Collective Brands downgraded to neutral from positive at Susquehanna ($12.51)


Top Events/Earnings Calendar

Top Events/ Earnings Calendar

Events

None

 

Earnings

PRE:  CPB


Cantor Flows

 

Flows

Consumer Staples:  CHD, DOLE, GMCR, JJSF

Consumer Discretionary:  AMZN, BLOKA, BLOKB, CASY, HIBB, MW, WMT

Consumer Services:  ABTL, APOL, COCO, ESI


Disclaimer: Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ