Chewy Goes Public, Shares Rally From IPO Price

Online pet retailer adds to list of companies going public this year. Online pet product retailer Chewy (CHWY), went public on Friday, adding to a full calendar for companies making their debut on market exchanges this year. Shares were initially sold at $36 per share, after being priced at $22 just before launch. The company raised about $1 billion in the IPO, and the launch price gave the company an $8.8 billion valuation. Chewy is controlled by privately-held PetSmart, but has no crossover with their brick-and-mortar stores, leaving Amazon as their biggest competitor in online pet product sales. In the eight years since its ...
Read More
|

Consumer Sentiment Slides, Missing Estimates

Tariff fears weigh on customers this month. Consumer sentiment missed estimates for the month of June. Sentiment came in at 97.9 against a consensus of 98.4, and a prior reading of 100.0. The index is centered around the number 100, with numbers over 100 showing increasing confidence. Numbers below 100 indicate declining confidence. Year-over-year, sentiment has declined 0.3 percent. In April, 8 percent of respondents on the survey made unfavorable references to tariffs. In the June survey, that number had risen to nearly 20 percent. This may explain why sentiment reversed against the May gain. That includes the 25 percent tariffs on nearly half ...
Read More
|

Insider Activity: Chico’s FAS (CHS)

Two insiders buy at clothing retailer. On June 13th, two insiders picked up shares at Chico’s FAS (CHS). These buyers include SVP & General Counsel Gregory Baker, who picked up 2,000 shares, paying nearly $7,200 to do so. Director Kimberly Tofalli bought 14,000 shares, shelling out just under $51,000. An executive and director buy around the same time is a solid sign that shares are undervalued. It’s as stronger buy signal than just one purchase. Chico’s is a specialty retailer of women’s private branded clothing and accessories. It does business under Chico’s, White House Black Market, and Soma. It operates over 1,400 stores in ...
Read More
|

Unusual Options Activity: Apple (AAPL)

Trader bets on big move in shares by January. At least one trader is betting that Apple (AAPL) could move over 40 percent higher between now and January 2020. On Friday, over 5,390 options had traded on a January 2020 $275 call for the company. With shares trading around $192, that implies a 43 percent upside in shares in the next six months. The option contract previously had around 135 open contracts, so this move represents a about a forty-fold increase in option interest, making this a huge bet, even at a low contract price of $0.52. Apple is a widely-held and traded consumer ...
Read More
|

Oil Tankers Under Fire, Crude Rises Two Percent

Two tankers torpedoed in Gulf of Oman. Crude oil prices rose on Thursday, following attacks on two oil tankers in the Gulf of Oman. The Gulf is close to the Strait of Hormuz, where more than 30 percent of the world’s oil shipments pass through. Both tankers reported heavy damage and had their crews were evacuated. The vessel Front Altair was on fire, but afloat, denying rumors that the vessel was sunk. With no organization taking responsibility for the attacks as of yet, rumors are running rampant. The event was enough to send oil prices about 3 percent higher on the day, and for ...
Read More
|

Fiverr Goes Public, Shares Rally From IPO Price

Freelance company joins crowded IPO field. Online freelance service company Fiverr (FVRR), went public on Thursday, adding to a full calendar for companies making their debut on market exchanges this year. Shares were initially sold at $21 per share, after being priced in the $18-20 range just before launch. In early trading, they rose into the early $30 range, closing the day 90 percent over their IPO price. Based out of Tel Aviv, Fiverr provides a platform for freelancers to offer their services to customers worldwide. Each service, known as a “gig” on the site, starts as little as $5, hence the company ...
Read More
|

Insider Activity: Encana Corporation (ECA)

Insiders buying at hard-hit exploration company. On June 12th, multiple insiders picked up shares at Encana Energy Corp (ECA). These buyers include CEO Douglas Suttles, who bought 5,000 shares, paying over $24,000. CFO Corey Code bought 10,000 shares, paying nearly $50,000. And David Hill, EVP of Exploration, bought 10,000 shares as well. All told, these insider put over $125,000 of their own money to work in shares. Encana is a smaller player in the industry, but it’s doing just well in today’s hectic environment for oil. Last year, Encana bought out competitor Newfield Exploration Company (NFX), nearly doubling in size as a result. With ...
Read More
|

Unusual Options Activity: Western Digital Corporation (WDC)

Big option buy suggests huge upside for tech firm. Could shares of data storage company Western Digital (WDC) rally 50 percent between now and January 2020? One trader is betting so. On Thursday, over 16,600 options had traded on a January 2020 $55 call for the company. With shares trading around $36.50, that implies a 50 percent upside in shares in the next six months. The option contract previously had around 1,500 open contracts, so this move represents a ten-fold surge in volume. That’s unusual for an option so far out-of-the-money. Western Digital shares trade near 52-week lows, with the high close to $84 ...
Read More
|