Consumer Sectors Narrowly Higher; Radio Shack Shares Reach Best Level In A Month after Hedge Fund Discloses Stake

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Top Consumer Stocks

WMT -0.79%

MCD -0.16%

DIS +1.50%

CVS +1.38%

KO +0.08%

Consumer stocks are slightly higher, with shares of consumer staples companies in the S&P 500 gaining less than 0.1%. Shares of consumer discretionary firms in the S&P 500 are up about 0.2%.

In company news, RadioShack Corp. ( RSH ) was up more than 14% in recent trade, advancing to post some of its best share prices in more than a month as Wall Street takes increasing notice of hedge fund manager Jamie Zimmerman recently acquiring an 8.1% passive stake in the struggling consumer electronics retailer.

Zimmerman and her Litespeed Management funds have tended to gravitate to distressed securities, special situations and bankruptcies, looking to snap up shares on the cheap and cash out as the company's fortunes and stock price recover.

Litespeed and its affiliates now own just more than 8.08 million RSH, according to a Jan. 17 filing with the Securities and Exchange Commission, acquiring all of the shares since the start of January.

RSH shares recently fetched $2.54 each, climbing as high as $2.62 on Wednesday for slightly more than a 21% gain. The stock closed unchanged Tuesday, with any bounce shares often enjoy after a hedge fund discloses a sizable position likely lost in the three-day weekend due to the Martin Luther King Jr. holiday.

In other sector news,

(+) BOBE, (+1.7%) Cuts FY14 EPS guidance, blaming severe winter weather in the Midwest for the shortfall and causing between $3 mln to $5 mln in lost sales. Sees net income of $2.20 to $2.30 per share, trailing Street by at least $0.32 per share.

(-) COH, (-7.2%) Earns $1.06 per share in fiscal Q2, trailing Capital IQ consensus by $0.05. Sales for the luxury handbag retailer fell 6% year over year - largely due to weakness in North America - to $1.42 bln, also missing analyst estimates by $50 mln.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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