Market Summary

 

Earning Reports

Total Companies: (63) Stock Center View

Symbol Price EPS
Est.
Reporting
Time
ITT 0.60 07:00 am ET
SHEN 0.32 07:00 am ET
WETF 0.08 07:00 am ET
PNM 0.66 07:30 am ET
SPR 0.74 07:30 am ET
XOM 1.71 08:00 am ET
BAGL 0.22 After Mkt
CMRE 0.41 After Mkt
GCAP -0.01 After Mkt
MOVE 0.01 After Mkt
PRAA 1.11 After Mkt
RATE 0.16 After Mkt
SEB N/A After Mkt
ABBV 0.77 Before Mkt
AON 1.12 Before Mkt
AVIV 0.48 Before Mkt
AXL 0.62 Before Mkt
CBOE 0.55 Before Mkt
CIR 0.90 Before Mkt
CLX 1.03 Before Mkt
COB 0.15 Before Mkt
COL 1.27 Before Mkt
COMM 0.57 Before Mkt
CVX 2.55 Before Mkt
D 0.96 Before Mkt
DRC 0.63 Before Mkt
DRQ 1.30 Before Mkt
DW 0.74 Before Mkt
FLML -0.12 Before Mkt
GHC N/A Before Mkt
GPX N/A Before Mkt
GWR 1.17 Before Mkt
HLT 0.17 Before Mkt
HPY 0.65 Before Mkt
IMI -0.09 Before Mkt
IRT 0.15 Before Mkt
JOUT -0.02 Before Mkt
LM 0.00 Before Mkt
MGI 0.34 Before Mkt
MMP 0.66 Before Mkt
MSG 0.32 Before Mkt
NEE 1.55 Before Mkt
NS 0.60 Before Mkt
NSH 0.40 Before Mkt
NTLS 0.06 Before Mkt
NWL 0.55 Before Mkt
OSK 0.82 Before Mkt
PEGI 0.04 Before Mkt
PNW 2.15 Before Mkt
POM 0.45 Before Mkt
SNAK 0.12 Before Mkt
SXI 1.18 Before Mkt
TDS -0.07 Before Mkt
TE 0.32 Before Mkt
TYPE 0.27 Before Mkt
VTG 0.02 Before Mkt
VYFC 0.02 Before Mkt
WMK N/A Before Mkt
WY 0.30 Before Mkt
XLS 0.29 Before Mkt
DSX -0.07 Unknown
PCO N/A Unknown
WG 0.23 Unknown

Lowest Yield Preferred Stocks Highlights

Symbol Name Last Change Volume Premium/
Discount
Est.
Yield
OCR-PA Omnicare Capital Trust I, 4% PIERS Trust Preferred Income Equity Red Securities 82.06 0.00 (0.00%) 0 0.22% 2.44%
OCR-PB Omnicare Capital Trust II, 4% PIERS Trust Preferred Income Equity Red Securities 81.90 0.42 (0.52%) 804 0.22% 2.44%
KSU-P Kansas City Southern, 4% Noncumul Preferred Stock 27.68 0.68 (2.52%) 400 10.72% 3.61%
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Clipping The Wings of Shutterfly

Posted on 2011-10-05 by Daniel Ho

ShutterflyBy releasing only an iPhone 4S instead of an iPhone 5, Apple (NASDAQ: AAPL) had greatly disappointed investors, and its stock dropped more than 5% in the next few hours following its announcement. The buy program at the last hour helped saved everyone, including Apple, which only lost less than 1% when the market closed. Lost in the news was the carnage on Shutterfly (NASDAQ: SFLY), an online photo printing company, when Apple announced its Cards app, a built-in iphone app that allows iphone users to send a physical greeting card to someone from the iPhone for $2.99 in the US, and $5.99 internationally. This little piece of news caused Shutterfly to drop almost 20% before rebounding to lose only ~2% for the day.

Shutterfly is one of the most successful online photo printing company, which went public in 2006, and had grown riding the wave of digital photography, the mirror image of Kodak (NYSE: EK) ruined by the same trend. IPO'ed at $15/share, it continued to rise to $35/share in 2007, before it declined to a low of $6.25/share in 2009 at the height of the financial crisis. Since then, like the stock market, it started rising and traded as high as $63.47 in July this year. However, it started to decline from that point, and not long afterwards, it lowered Q3 guidance on Jul 27 and the stocks accelerated its decline. It rebounded in September but could not defy the market's fall, and closed at $40.31 before Apple tried to ruin its stock.

We are not sure how Apple's Cards app will affect Shutterfly, but we know that investors are certainly jumpy on their investments. Online printing, while a growing market, is quite competitive, with many players in it, such as Kodak Gallery, Costco (NASDAQ: COST), Snapfish, etc. Currently trading at a P/E of 75 and a forward P/E of 37, Shutterfly is clearly a growth stock, and it will need all the growth it needs to sustain its stock price. Meanwhile, management has been selling the stocks since it started recovering from the financial crisis.

Although the recent market swoon has taken down many sectors, consumer retail is one that had performed much better than the others. There is high expectation that US consumer spending will keep up, but that can change in a heartbeat if Europe's debt problem cause European banks to lock up, and proceed to spread to the US. With the company reporting earnings at the end of October, we believe another disappointment like last quarter combined with high nervousness of investors will simply devastate the stock. For those who go long on Shutterfly, it'd be much better to hedge downside through options. For those who are adventurous, we believe shorting the stock can potentially deliver handsome return.

Position: Short SFLY

This article originally appears on benzinga.com

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