This Day On The Street
Continue to site
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

Einhorn's Call on Chipotle Among Week's Highlights

There had been several restaurant IPOs in the past year, including Del Frisco's (DFRG), Chuy's (CHUY), Bloomin' Brands (BLMN) and Ignite (IRG), so it's curious that this offering was yanked. Evidently, it was not going to price well, probably due to a declining appetite for new issues.

In the small cap world, the Wet Seal (WTSLA) activist situation, has come to a head. The struggling women's clothing retailer, which is cash rich, but results-poor, has been pressed by activist shareholder Clinton Group, which owns about 7% of the company, to make changes.

Clinton Group sought to remove four Wet Seal directors, and replace them with their own nominees, a fight that Clinton Group has now won. Earlier in the week, Wet Seal was still trying to fight off Clinton's efforts, despite the fact that it appeared as though Clinton had received shareholder's consent. That fight is now over.

There's much work to be done at Wet Seal, which operates 468 Wet Seal stores and 82 Arden B Stores; the company has been facing double-digit same-store sales declines including -12.7% for September, in an industry that is highly competitive. Still, Wet Seal ended its latest quarter with $146.5 million, or $1.65 per share in cash, and no debt, so there are resources to move forward.

WTSLA Chart WTSLA data by YCharts

Never a dull moment . . . .

Have a great weekend.

At the time of publication, the author was long WTSLA.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Jonathan Heller, CFA, is president of KEJ Financial Advisors, his fee-only financial planning company. Jon spent 17 years at Bloomberg Financial Markets in various roles, from 1989 until 2005. He ran Bloomberg's Equity Fundamental Research Department from 1994 until 1998, when he assumed responsibility for Bloomberg's Equity Data Research Department. In 2001, he joined Bloomberg's Publishing group as senior markets editor and writer for Bloomberg Personal Finance Magazine, and an associate editor and contributor for Bloomberg Markets Magazine. In 2005, he joined SEI Investments as director of investment communications within SEI's Investment Management Unit.

Jon is also the founder of the Cheap Stocks Web site, a site dedicated to deep-value investing. He has an undergraduate degree from Grove City College and an MBA from Rider University, where he has also served on the adjunct faculty; he is also a CFA charter holder.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
CMG $637.50 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs