This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Market Preview: Hitting Pause

Stocks in this article: AAPLAASVUTJPMSPY^DJI^IXIC^GSPC

BMO Capital Markets noted on Monday that the selling pressure on the stock has been particularly fierce of late as it's down more than 20% since March 19's close at $6.48 based on Friday's finish at $5.13. The firm has a market perform, or hold rating, on SUPERVALU with an $8 price target vs. Monday's close at $5.32

" E ven with the 35% short interest, ~7% dividend yield, reasonable valuation and ample liquidity, there appears to be no support (or no incremental buyer) for the stock," said the firm, which has a market perform rating on SUPERVALU and is expecting earnings of 39 cents a share in the quarter.

"We are hopeful 4Q12 represents a trough in performance and hope the company can present investors with meaningful positive data points to appease existing investors and generate an incremental buyer, because despite significant company specific and macro challenges, we see no liquidity issues for the foreseeable future, so believe the excessive selling pressure has been unwarranted," BMO continued.

SUPERVALU's forward price-to-earnings ratio sits at 4.45X vs. 9.49X for Kroger (KR), and 9.22X for Safeway (SWY), but bulls are still few and far between with just three of the 18 analysts covering SUPERVALU at either strong buy (1) or buy (2) and the rest split between hold (12), underperform (2) and sell (1).

Check out TheStreet's quote page for SUPERVALU for year-to-date share performance, analyst ratings, earnings estimates and much more.

The economic data doesn't pick up until late in the week with the producer price index and consumer price index for March until Thursday and Friday respectively, and the first read from the University of Michigan on consumer sentiment in April due on Friday as well.

Tuesday features wholesale inventories for February at 10 a.m. ET. The consensus is for an increase of 0.5%, according to Briefing.com, but Wall Street likely won't get too excited one way or another, given how old the data is.

And finally, Harmonic (HLIT) and VIVUS (VVUS) were both trading lower in Monday's after-hours action.

A regulatory setback sent shares of VIVUS more than 8% lower to $20.98 on late volume of nearly 1.3 million. The Food and Drug Administration pushed back the Prescription Drug User Fee Act review date related to the new drug application for Qnexa, the company's proposed obesity drug, to July 17 from April 17.

Harmonic shares lost 4% to $4.76 on volume of more than 90,000, according to Nasdaq.com, after the maker of video equipment lowered its revenue and gross margin outlook for the first quarter. The company cited weak demand from its European customers as part of the reason for the diminished forecast.

-- Written by Michael Baron in New York.



>To contact the writer of this article, click here: Michael Baron.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs