At Opposite Ends Of the Scale? Joe’s Jeans Inc (JOEZ), El Pollo LoCo Holdings Inc (LOCO) and ITT Educational Services, Inc. (ESI)
New York, NY – GDP INSIDER – 05/18/2014.
This article discusses three companies: Joe’s Jeans Inc (NASDAQ:JOEZ), El Pollo LoCo Holdings Inc (NASDAQ:LOCO) and ITT Educational Services, Inc. (NYSE:ESI)
Joe’s Jeans Inc (NASDAQ:JOEZ) stock fell by over 28% in trading on Friday to $0.11 per share. The decline was on lighter than average volume of 275,691 compared to a daily average of 794,497. The specialty clothing manufacturer’s stock is down over 88% over the past six months behind increasing concerns on the company’s long-term prospects for survival from the Street. This is despite a good run over that period for consumer and retail stocks in general. Around the corner is likely news of a delisting which will be another negative. While a buyout is always possible, its outstanding debt of over $100 million makes that unlikely.
El Pollo LoCo Holdings Inc (NASDAQ:LOCO) fell by over 15% in trading on Friday on heavy volume to close at $24.70. Volume jumped to almost 7 million shares on Friday compared to an average volume of 1.2 million. The quick serve restaurant chain provides weaker than expected earnings guidance of $0.67 – $0.70 per share compared to analyst consensus of $0.70. That said, the company did beat the consensus earnings forecast of$0.17 by a penny. Revenue also beat, but analysts wanted a more robust growth outlook to support the current valuation.
ITT Educational Services, Inc. (NYSE:ESI) shares jumped on Friday by 18.6% to $2.80. This came after it fell more dramatically earlier in the week. It was still down over 30% for the Week of May 15, 2015. The company had allegations of fraud by three members of the management team arise during the week that led the selloff. The SEC has filed a federal suit that management hid poor performance and looming problems with two student loan programs from investors. While the full impact is not completely known, a management change and additional turmoil is expected to act as an overhang on the shares.
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