Consumer stocks are narrowly mixed, with shares of consumer
staples companies in the S&P 500 slipping about 0.1%. Shares of
consumer discretionary firms in the S&P 500 are up about
In company news, Herbalife (
) is up 4.6% at $69.01 a share, advancing as high as $68.48 after
William P. Stiritz, chairman of Post Foods (
), late Tuesday disclosed a 6.38% active stake in the consumer
products company and said he would seek regular discussions with
HLF management on ways to improve its operations and bolster
According to a new 13D filing last night, Stiritz said while he
believes HLF has a sound business model and strong distribution
system, the company's true value is not reflected in its share
price. He said his suggestions could include possible financing or
recapitalization strategies, including a potential stock buyback
program, as well as steps to confront the sizable short position
some investors have staked out against the company.
Stiritz now owns a total of 6.46 million HLF shares, which
includes about 827,600 shares shared with other investors,
according to stock ownership records. His purchases included
cashing in options in mid-September to buy 101,000 shares for
$20.11 to $38.87 apiece. His largest individual open-market
purchase was for 235,100 shares at $72.50 each on Oct. 4.
He also purchased 1,000 call options expiring Jan 18, 2014,
along with call options for another 120,000 shares expiring in
January 2015. In a related move, he sold 62,100 put options
expiring Jan. 18, 2014, as well as put options underlying 12,200
shares expiring in January 2015.
In other sector news,
(+) LZB, (+11.0%) Q2 earnings of $0.31 per share beats by $0.05.
Revenue climbs 13.7% year over year to $366.4 mln, topping
consensus view by $9.96 mln. The furniture retailer also raised its
quarterly dividend by 50% to $0.06 per share, payable Dec. 10.
(-) LOV, (-14.4%) Announces proposed secondary offering by Great
Hill Partners LLC and its affiliates. Size of the offering has not
yet been determined. Great Hill owns just over 4.72 mln LOV shares,
or about 19.7% of its stock, according to SEC records.
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