Sears, Angie’s List Spike — Thursday’s IP Market Recap

by Kyle Woodley | February 23, 2012 4:47 pm

[1]Sears Holdings (NASDAQ:SHLD[2]) was the talk of trading Thursday after its plans to bolster its balance sheet buffered the blow from a lousy fourth-quarter earnings report.

The company announced it would sell a handful of stores, reduce inventories and spin off its Sears Hometown and Outlet chains, which should generate about $1 billion all told. With the thought of bankruptcy mostly killed off, investors ran up SHLD stock about 19%.

That jump came despite a fourth-quarter loss of $2.4 billion, or $22.63 per share, just a year after making $3.43 in profits. Adjusted earnings of 54 cents per share also fell well short of expectations of 78 cents, and lower revenues of $12.5 billion barely beat estimates.

2011 IPO offering Angie’s List (NASDAQ:ANGI[3]) gained about 7% despite a nearly $6 million loss in its first quarterly report as a publicly traded company[4]. Investors were buoyed by strong gains in revenues (up 70%) and membership base (78%), as well as current-quarter revenue forecasts above Street expectations.

Overshadowing both Sears’ and Angie’s List’s gains was Vivus (NASDAQ:VVUS[5]), which jumped 77% to an all-time high of $18.73 on positive news concerning its appetite-suppressing drug, Qnexa[6]

. A Food & Drug Administration advisory committee recommended approval for the drug, and while not a mandate, it’s likely to go through. The company also is examining Qnexa for potential use to treat diabetes and sleep apnea.

Three Up

• Orexigen Therapeutics (NASDAQ:OREX[7]): Up 14% (45 cents) to $3.66.
• MetroPCS Communications (NYSE:PCS[8]): Up 13.8% ($1.42) to $11.70.
• Sprint Nextel (NYSE:S[9]): Up 13% (29 cents) to $2.52.

Three Down

• GrafTech International (NYSE:GTI[10]): Down 14.1% ($2.17) to $13.25.
• Genco Shipping (NYSE:GNK[11]): Down 13.5% ($1.11) to $7.10.
• Safeway (NYSE:SWY[12]): Down 7.6% ($1.72) to $20.95.

Kyle Woodley[13] is the assistant editor of InvestorPlace.com[14]. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[15].

Source URL: https://investorplace.com/2012/02/sears-angies-list-spike-shld-angi-vvus/

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