Retail Surveys Prepare Investors for "Unexplained" Stock Moves
Hello everyone.
We are at the tail end of earnings and TickerMine continues to put out very interesting, but more importantly, predictive stories on a large range of retail and consumer companies.
Last week we posted a positive report on Liz Claiborne stores. We saw that 62% of our survey respondents were saying that business was better than the year before. Liz Claiborne reported earnings this morning that on an operating basis were much stronger than anticipated. The company did reduce guidance for the full year but we believe it is possible that those new estimates are now easy hurdles to cross if our surveys continue to the positive trend we have seen recently for Liz.
The more important issue is that of the move in Liz Claiborne shares. Many investors appear confused at the shares rise despite a reduction in forward guidance. That all has to do with “wall street” games and expectations. We believe that trends are improving at Liz and while the guidance was reduced investors likely to perceive that the business is stronger (or less weak) than they believed yesterday.
We highlight that following the trends at the street level and using point of sale survey data can help lead us down the right path and not feel baffled when company results are not what we expected.
Later this week look for good results from Kohl’s and maybe a weaker guidance report than expected from JC Penney. That is what our survey’s tell us at TickerMine.
5 months ago