Diamonds and Dogs

6/27/14

LightInTheBox Holding Co. (LITB)

The diamond of the day is LightInTheBox Holding Co., an online retailing company headquartered in Beijing. After the company raised its revenue guidance for the second fiscal quarter by $2 million, LightInTheBox's stock price skyrocketed 20% by noon. Recently, their stock price had taken a beating, down 36% YTD and suffered more when two senior executives walked away from the company. Even though guidance of their future earnings increased, revenue growth has slowed down considerably for the past 4 quarters YOY. The company is much different than its Chinese competitors, such as Dangdang and VIPShop's, as most of its sales occur in Europe and as apparel. This could possibly mark a turnaround for LightInTheBox, however, the future could be volatile and unpredictable.

Gibraltar Industries Inc. (ROCK)

Gibraltar Industries is tanking today to end the week, down 8.97% to $15.12. The dip in share price for the market-builder product distributing company is due to their outlook on the second quarter being cut. The company stated that the long winter drove the lower first quarter results, and this result led people to believe the market demand for the second quarter will not rebound for Gibraltar Industries. Analysts have cited the company's poor profit margins as well as their weak operating cash flow for their lower projected rating. The low score of C on the stock means that its price might not pick up anytime soon.

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