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Consumer Sector Update for 06/30/2017: CIDM,WMAR,DEST


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Top Consumer Stocks

WMT +0.12%

MCD +0.01%

DIS -0.03%

CVS -0.09%

KO +0.51%

Consumer stocks were moderately higher on Friday, with shares of consumer staples companies in the S&P 500 adding about 0.3% in value this afternoon while shares of consumer discretionary firms in the S&P 500 were posting a 0.3% increase.

In company news, Cinedigm Corp ( CIDM ) tumbled as much as 26% on Friday, sinking to a session low of $1.53 a share after the movie distributor saw its Q4 net loss widen and revenue decline from year-ago levels and also said it was selling 20 million of its shares at a nearly 28% discount to Thursday's closing price.

Net loss at the company grew to $9.7 million during the three months ended March 31 compared with a $6.1 million net loss during the same quarter last year. Revenue fell 15.5% year over year to $90.4 million. No analyst estimates were available for comparison.

Separately, Cinedigm last night said it has agreed to a $30 million strategic stock investment by an affiliate of Bison Holding Company Ltd, issuing 20 million shares at $1.50 apiece, or 58 cents under Thursday's closing price for the stock. Up to 400,000 of those shares may be purchased by the company's management rather than Bison Capital.

Bison, which is gaining two seats on the Cinedigm board of directors, also has agreed to provide the company with a $10 million loan within 60 days of the stock sale closing. Cinedigm and Bison also plan to work together on refinancing and retiring the company's remaining debt.

In other sector news,

(+) WMAR, (+33.0%) Agrees to $338 mln private-equity buyout offer, with Monomoy Capital Partners paying $12.97 in cash for each West Marine share, a 32% premium over their average price during the past 30 days.

(-) DEST, (-31.0%) Merger partner Orchestra Premaman reports a FY17 net loss of EUR33.6 mln, reversing a EUR17.7 mln profit for French retailer during the prior-year period. Net sales rise 8.7% to EUR608.3 mln.

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: CIDM , DEST


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