Diamonds and Dogs

6/7/12

The Men's Wearhouse Inc. (MW)

Men's Wearhouse got undressed today, down 18.79% at $28.89. For the first time in over two years, the company's per-share profit fell short of analysts' estimates, coming in at $0.52 versus the $0.55 expectation. To make things worse, Men's Wearhouse announced that second-quarter earnings per share will likely be between $1.12 and $1.13; analysts were expecting EPS of $1.22. The company blamed poor quarterly performance and slower corporate uniform sales in the UK as the cause for poor earnings. However, Men's Wearhouse is still projecting 13%-17% full-year growth in EPS, which equates to between $2.70 and $2.78. The earnings report scared off many investors and led Men's Wearhouse to touch levels not seen since December of last year.

TravelCenters of America LLC (TA)

TravelCenters of America drove north today, up 16.77% at $5.51. TravelCenters announced that it entered a memorandum of understanding with Shell Oil Products US to construct and operate a network of natural gas fueling lanes at TA locations along the U.S. Interstate Highway System. Under the agreement, Shell will construct and TA will operate at least 200 natural gas fueling lanes on at least 100 TA locations. Additional TA locations may be added depending upon customer demand. The TA locations are going to be carefully selected to allow for natural gas powered trucks to travel across the US. TA also announced that it expects to a train and equip a sufficient number of TA's 3,000 repair technicians, 1,000 truck service bays and 400 Road Squad® emergency roadside repair vehicles to service natural gas powered truck engines.

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