Consumer Sector Update for 10/17/2017: ADOM,DEST,CARG

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Top Consumer Stocks

WMT +0.19%

MCD +0.19%

DIS +0.26%

CVS +0.29%

KO -0.31

Consumer stocks turned narrowly lower in afternoon trading, with shares of consumer staples companies in the S&P 500 sliding about 0.4% lower while shares of consumer discretionary firms in the S&P 500 gave up small mid-day gains and were slipping about 0.1% shortly before today's closing bell.

In company news, Adomani ( ADOM ) sputtered to a record low on Tuesday, at one point today dropping almost 17% to a worst-ever $5.41 a share, after the drive-train manufacturer for hybrid and electric vehicles last night disclosed plans for a $103 million public offering of shares and warrants to buy additional stock.

The company expects to use net proceeds from the upcoming offering to pay down the nearly $4.26 million still owed on its 9% secured promissory notes owed to outside lenders and coming due before the end of the year, according to a preliminary Form S-1 prospectus filed last night. It also may use a portion of the remaining funds for working capital or to acquire or invest in complementary businesses or technologies, although the company stressed it has no deals currently pending.

In other sector news,

(+) DEST, Said same-store sales for its ecommerce channel are up more than 50% over year-ago levels during Q3 following a 30.2% increase during Q2.

(-) CARG, Underwriters exercise overallotment option to buy 1.41 mln shares at $16 apiece, boosting gross proceeds from its recent initial public offering by an extra $21.5 mln to $195.5 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: ADOM , DEST , CARG

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