Taking No Chances
Today our Watch List names sent a message: nobody is willing to take a gamble.
Shuffle Master (SHFL) was among the day’s top losers, as the company lowered its EPS guidance for the year. Shuffle Master sells chip sorting and card-shuffling machines to casinos, which apparently need to shuffle things less than they were expected to.
Also unwilling to take a gamble are banks. Perhaps concerned over the increasing consumer debt burden they may be taking a more cautious approach to lending. At any rate, credit reporting agency Equifax (EFX) raised its guidance, and the shares were among the big winners today.
With this lack of appetite for risk, companies are rightly concerned about share price. There, too, some are taking no chances. Since a big buyer is needed to get shares moving up, Metal Management (MTLM) found one - itself. That turned out to be a sure bet.
Like this article? Why not try out:
