Consumer Sector Update for 12/30/2015: HOTR, ABAC, JOB
Top Consumer Stocks
Consumer stocks were narrowly lower, with shares of consumer staples companies in the S&P 500 declining about 0.1% while shares of consumer discretionary firms in the S&P 500 were retreating around 0.5%.
In company news, Chanticleer Holdings ( HOTR ) shares have turned lower on Wednesday, giving back earlier gains that followed the chief executive of the parent company for the Hooters restaurant chain saying he believes its stock was undervalued and adding he was focused on increasing growth and profitability at the company during 2016.
In a open letter to shareholders, Chanticleer CEO Mike Pruitt today said acquisitions completed by the company earlier in 2015 have provided it with "a level of scale that we believe will allow us to organically grow our restaurant concepts in 2016 and beyond and to drive profitable financial performance."
He also said the recent price decline for the company's stock has been fueled by "negative and inaccurate articles" as short-sellers sought to profit from the falling share price.
HOTR shares were down almost 4% at $1.04 apiece, retreating from a prior rise as high as $1.14 a share earlier in today's trading.
In other sector news,
(+) ABAC, (+1.4%) Sells its 95% equity interest in Wuhan Optical Valley Orange Technology to a group of third-party investors for about $7.3 mln. Also agrees to terminate proposed sale of its interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co to Guangxi Hongzhen.
(-) JOB, (-4.5%) Reports 33% increase in Q4 revenue over year-ago levels to $12.5 mln. Company did not provide Q4 earnings figures. Maxim reduces price target by $1 to $12 a share, keeping Buy rating for the stock.
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