Market Summary

 

Earning Reports

Total Companies: (52) Stock Center View

Symbol Price EPS
Est.
Reporting
Time
PLL 0.81 07:00 am ET
SIG 0.18 07:00 am ET
ADI 0.68 After Mkt
ARWR -0.24 After Mkt
AVAV -0.11 After Mkt
BLOX 0.03 After Mkt
CISG 0.05 After Mkt
CO 0.06 After Mkt
CTRP 0.20 After Mkt
DLIA N/A After Mkt
HPQ 1.06 After Mkt
NMBL -0.16 After Mkt
PWRD 0.40 After Mkt
QADB N/A After Mkt
SGU N/A After Mkt
TIVO 0.07 After Mkt
VEEV 0.08 After Mkt
VNET 0.50 After Mkt
WTSL -0.26 After Mkt
AMWD 0.50 Before Mkt
ARCP 0.27 Before Mkt
BECN 0.62 Before Mkt
BIG -0.05 Before Mkt
BWS 0.68 Before Mkt
CBRL 1.29 Before Mkt
CHS 0.17 Before Mkt
CNTF N/A Before Mkt
CPB 0.72 Before Mkt
CTRN -0.06 Before Mkt
DAKT 0.25 Before Mkt
DEST -0.08 Before Mkt
DSW 0.52 Before Mkt
DSX -0.07 Before Mkt
EV 0.64 Before Mkt
FRED -0.13 Before Mkt
HRL 0.64 Before Mkt
JOUT -0.02 Before Mkt
LG -0.08 Before Mkt
MOV 0.86 Before Mkt
NJR -0.53 Before Mkt
SHLD -3.31 Before Mkt
TECD 1.02 Before Mkt
TIF 0.77 Before Mkt
VAL 1.15 Before Mkt
XCRA 0.24 Before Mkt
AVNW -0.08 Unknown
CENT -0.25 Unknown
COCO 0.11 Unknown
ROSG N/A Unknown
SFL 0.33 Unknown
VLTC N/A Unknown
WG 0.24 Unknown

Convertible Preferred Stocks Highlights

Symbol Name Last Change Volume Premium/
Discount
Est.
Yield
WFC-PL Wells Fargo & Co., 7.50% Non-Cumul Perp Conv Cl A Preferred Stock, Series L 1,220.00 -13.00 (-1.05%) 9,349 5.38% 6.15%
FCH-PA FelCor Lodging Trust, $1.95 Series A Cumul Convertible Preferred Stock 26.30 0.21 (0.80%) 7,699 -0.22% Suspended
SPPRP SuperTel Hospitality Inc., 8% Series A Convertible Preferred Stock 5.50 0.00 (0.00%) 7,503 0.77% 14.55%
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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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