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Consumer Sector Update for 06/27/2016: IKGH,SKUL,MAN


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WMT -0.79%

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Consumer stocks were broadly lower today, with shares of consumer staples companies in the S&P 500 slipping just 0.4% this afternoon while shares of consumer discretionary firms in the S&P 500 were slumping about 1.7%.

In company news, Iao Kun Group ( IKGH ) slid lower Monday after the casino company catering to high-rollers today announced more details on its planned purchase of the Jeju Sun Hotel & Casino in Jeju, Korea, saying the $101 million deal likely will add to future per-share earnings.

According to Iao Kun, the acquisition includes the real property under the Jeju Hotel & Casino as well as a non-expiring gaming license, which allows for an unlimited number of gaming tables. The gaming license also could be used to create additional casinos throughout Jeju, the company said.

The company expects to finalize funding arrangements for the deal within a few weeks, adding the transaction will begin to generate positive cash flow as soon as the deal closes, and that depending on the specific funding structure, would make the acquisition accretive to its per-share earnings.

IKGH American depository shares were down almost 14% today at $1.07 apiece, or just 2 cents above their session high.

In other sector news,

(+) SKUL, (+6.1%) Receives unsolicited $6.05 per share bid from Mill Road Capital, exceeding a prior buyout offer from Incipio last week for $5.75 per share in cash, or about $177 mln - a 5.2% premium above the prior buyout offer.

(-) MAN, (-8.7%) Credit Suisse downgrade to Neutral from Outperform while Avondale also reduces its investment rating for the stock to Market Perform from Market Outperform.

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

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This article appears in: Business , Commodities
Referenced Symbols: MAN



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