Diamonds and Dogs

7/11/12

Hhgregg Inc. (HGG)

Hhgregg has some wires that are shorting out today, down 36.40% at $7.34. The appliance and electronics chain cut its Q1 and full-year outlook due to surging costs and flagging consumer demand for electronics products bought in brick-and-mortar store. Hhgregg cut its earnings guidance for its 2013 fiscal year to $0.90 to $1.05 a share from a prior guidance of $1.12 to $1.27 a share. Furthermore, the company forecasted a first-quarter loss of $5.7 million to $6.2 million or 16 cents to 17 cents a share. That missed the Thomson Reuters consensus estimate for a loss of 5 cents a share. Hhgregg set a new 52-week low by around $1.50, with the previous low being $8.88.

Booz Allen Hamilton Holding Corporation (BAH)

Booz Allen Hamilton saw a huge bounce in its shares today, up 13.48% at $16.75. The Government consultancy firm said it was exploring a proposal to refinance its debt that could result in a special dividend of about $1 billion to its shareholders. The proceeds from the refinancing, along with cash on hand, will be used to fund the special dividend. The special dividend would amount to about $7.55 per share, based on the number of shares outstanding. The refinancing is expected to close, subject to market conditions and board approval, on or about July 31, the company said. Booz Allen Hamilton had a nice rebound to levels it hasn't seen since May.

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