Diamonds and Dogs
11/21/12
Zale Corporation (ZLC)Although Zale's sells diamonds, the company is not a diamond today, down 29.97% at $5.21. The fine jewelry company saw its shares crash after reporting a loss on their earnings report. Zale's announced late Tuesday that it lost $28.3 million or $0.88 per share, which is significantly less than analysts' estimates of a loss of $0.68 per share. Revenue rose 1.8 percent to $357.5 million; however analysts were expecting revenue of $365.6 million. Even with the poor day, Zale's is well above its 52-week low of $2.18 and still maintains its buy rating with many analysts.
Groupon Inc. (GRPN)
Groupon is moving significantly higher today, up 15.13% at $3.88. The online coupon company saw its shares skyrocket after news was released that hedge fund, Tiger Global, now holds a 9.9% stake in the company. Tiger Global held 1.3 million shares at the end of September, but after its recent 13G filing, investors saw that the company now holds 65 million shares. Groupon has lost over 80% of its share price since its IPO earlier this year and has been struggling to establish a business plan. However, the company has $1.2 billion in cash and market cap of only $2.2 billion, so it's possible that Tiger Global sees the potential of Groupon. Regardless, investors are following Tiger Global's lead.
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