Shares of Manitowoc ( MTW) are down nearly 30% in early trading after the crane-and-food-service-equipment manufacturer said it no longer expects to meet its previous guidance for full-year earnings and sales. The company has pulled its guidance based on recent weakness in crane sales, as well as possible lower-than-expected proceeds from the sale of its global ice machine business. Management said it continues to cut costs by reducing its workforce, cutting production and limiting its capital expenditures, but still sees next quarter's EPS coming in more than 50% below consensus estimates. We have avoided shares of MTW since our early June coverage began, when the stock was trading at $42.55. The company has a 1.74% dividend yield, based on Friday's closing stock price of $4.61, and is trading near all-time technical lows. If the shares can firm up and rebound, we see overhead resistance in the $6-$8 price area. Shares are way off of all-time highs of $49 hit in October 2007. We would look elsewhere for better investment opportunities at this time. Manitowoc is not recommended at this time, holding a Dividend.com Rating of 2.5 out of 5 stars.
Gap Stores Recommended by Goldman Sachs
Shares of Gap Stores ( GPS) are down slightly in early trading, despite the retailer being added to Goldman Sachs' "conviction buy" list. The analyst sees improving sales in coming months at Gap's Old Navy unit, which currently accounts for more than a third of the company's total sales. The analyst raised her price target on the stock to $15 from $14.