Diamonds and Dogs

6/8/16

Beer, food and skee-ball are making our diamond shine. Dave & Buster's Entertainment (PLAY) is jumping 10% to a new all-time high following better than expected earnings and a new share buyback plan. The restaurant/entertainment company blew past earnings and sales estimates this quarter as revenue grew 17.7% year over year. The company also raised guidance and issued a $100M share buyback plan. Looks like Dave & Busters is firing on all cylinders.

Today's dog can be found in any store at the check-out counter. VeriFone Systems (PAY) took a hit down 24% to a new 52 week low on disappointing earnings, lower guidance, and a downgrade. The company manufactures and distributes electronic payment devices that are almost everywhere. When you swipe a credit card at a Walgreens or a gas station you might be using a VeriFone system. But the slowdown in retail sales hasn't escaped VeriFone. The company missed earnings by 5 cents, revenue was in-line, but next quarter guidance was below estimates and full year 2016 guidance will also come in below expectations. The company also announced a workforce reduction. Barclays downgraded VeriFone to a neutral with a $23 price target.