American Greetings Hits 21-Year Lows, Doubling Number of Store Closings
just announced a third quarter loss of $193.3 million, or a loss of $4.25 per share, compared with a profit of $29 million, or 52 cents per share a year earlier.
Revenue slipped 6.5% to $454.1 million from $485.8 million. Management is raising the number of stores it plans to close to 60 or more -- from previous estimates of 25 to 30 stores. Management said the deal to sell the product licenses of Strawberry Shortcake and the Care Bears to Cookie Jar Entertainment of Toronto after the company was unable to find financing. The licenses have been back up for sale.
We have avoided shares of American Greetings since our early June coverage began, when the stock was trading at $19.87. The company has a 4.83% dividend yield, based on last night's closing stock price of $9.94. The company has broken through historic technical support and is trading without any cushions at this point. If there is any consolidation and the company can rebound, we see overhead resistance in the $9 to $12 area. We would look elsewhere for better investment opportunities.
American Greetings is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.
ProLogis Shares Rally on Asset Sale
shares are up nearly 20% as the company agreed to sell its Chinese operations and the remaining stake in its Japanese property funds to a Singapore government-owned real estate company for $1.3 billion in cash.
The company will use the proceeds from the sale to reduce debt. Management felt the move was necessary to relieve near-term re-financing pressure and enhance liquidity.
We had removed shares of ProLogis from our "Recommended" list on Aug. 19, when the stock was trading at $45.80. The company has a 10.92% dividend yield, based on last night's closing stock price of $9.16. We would be cautious in the short-term as the stock has basically quadrupled in the last three weeks. If shares could consolidate a bit here, the $14 to $18 level would be where the overhead resistance sits. We prefer a REIT play like
ProLogis is not recommended at this time, holding a Dividend.com Rating of 2.4 out of 5 stars.
Worthington Industries Announces Big Loss, Nearing Critical Technical Level
just announced it posted a loss of approximately $160 million in its fiscal second quarter, citing a fall in steel prices and deteriorating economic conditions.
The company has tremendous exposure to the autos and commercial construction markets, both of which have struggled badly in the last six months.
We had removed shares of Worthington from our "Recommended" list back on July 15 when the stock was trading at $16.98. It had been put on the list in early June at the $19.07 level. The company has a 6.40% dividend yield, based on last night's closing stock price of $10.63. The company has critical long-term support at the $8 level. If that breaks, there is no cushion to how far it could fall. If shares can consolidate at these current levels and begin to move up, the $13 to $16 area is where there would be overhead resistance. We would prefer a steel name like
instead, but we are not recommending either at this time.
Worthington is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.
Textron Will Miss Fourth Quarter Profit Estimates Badly, Cuts Jobs
just announced it is reducing its fourth-quarter outlook, citing the deteriorating economy.
Management revealed it has cut 2,200 jobs in the last few months, about 5% of its work force. The company is exiting nearly all its commercial finance business to improve liquidity in the tightening credit markets.
As for the outlook, the company is taking fourth quarter EPS estimates down to a range of 30 cents to 40 cents, way below its previous estimate of 80 cents to 90 cents.
We have avoided shares of Textron since our early June coverage began, when the stock was trading at $58.95. The company has a 6% dividend yield, based on last night's closing stock price of $15.34. The shares do have technical support in the $11 to $13 area. If that fails to hold, the $8 level would possibly be next. If shares can stabilize and move higher, the overhead resistance would be in the $19 to $21 area. We would look elsewhere for better investment opportunities.
Textron is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.