Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Choice Hotels (NYSE: CHH ) were getting picked last by investors today, falling 11% after cutting EPS guidance in its quarterly report.
So what: The first-quarter results for the owner of Comfort Inn, Quality Inn, and Econo Lodge actually weren't bad. Choice missed EPS estimates by a penny, delivering earnings of $0.26, while revenue topped expectations by 1.5%, growing 6% to $136.9 million. Still, guidance for the coming year was disappointing, though management didn't offer an explanation for the cut. It now sees EPS of $1.87 to $1.91 versus an earlier projection of $1.96 to $1.98.
Now what: While a guidance cut is almost always met with a sell-off, there was some good news in Choice's report. First, a rough extrapolation of revenue guidance for the year indicates that it should come out ahead of estimates, and second, the company added 83 new domestic hotel franchise contracts in the previous quarter, 30% better than the quarter a year ago. That addition would seem to indicate that long-term growth shouldn't be a problem. A P/E of 20 may be a little high for a company growing this slowly, but I wouldn't get overly agitated over the guidance cut.
Best Quality Stocks To Invest In Right Now: Caledonia Mining C Com Npv (CAL.TO)
Caledonia Mining Corporation engages in the acquisition, exploration, and development of mineral properties in Zambia, Zimbabwe, and South Africa. The company explores for gold, silver, copper, cobalt, nickel, platinum, and base metals. Its principal properties include the Blanket mine, a gold mine located in south-western Zimbabwe; and the Nama property, a copper and cobalt project, which consists of 4 contiguous mining licenses covering an area of approximately 800 square kilometers located on the northern extension of the Zambian Copperbelt. The company was founded in 1992 and is headquartered in Toronto, Canada.
Best Quality Stocks To Invest In Right Now: Ass British Food(ABF.L)
Associated British Foods plc operates as a diversified food, ingredients, and retail group. The company operates through five segments: Sugar, Agriculture, Retail, Grocery, and Ingredients. The Sugar segment engages in growing and processing sugar beet and sugar cane for sale to industrial users. The Agriculture segment procures grain and oilseeds from farmers and co-products from the food, drink, and bioethanol industries. It manufactures and sells animal feeds and premixes to farmers; and micro ingredients to farmers and feed manufacturers. This segment also provides agronomy advice and crop inputs. The Retail segment is involved in buying and merchandising clothing and accessories. It offers womenswear, lingerie, childrenswear, menswear, footwear, accessories, hosiery, and home ware through the Primark and Penneys retail chains primarily in the United Kingdom, the Republic of Ireland, Spain, the Netherlands, Portugal, Germany, and Belgium. The Grocery segment manufactur es hot beverages; sugar and sweeteners; vegetable oils; bread, baked goods, and cereals; ethnic foods, herbs, and spices; and meat products that are sold to retail, wholesale, and foodservice businesses. The Ingredients segment produces bakers? yeast, bakery ingredients, specialty proteins, enzymes, lipids, and yeast extracts. The company operates in the United Kingdom, Europe, Africa, the Americas, and the Asia Pacific. The company was founded in 1935 and is headquartered in London, the United Kingdom. Associated British Foods plc is a subsidiary of Wittington Investments Limited.
Top Blue Chip Stocks To Own Right Now: Northgate(NTG.L)
Northgate plc, an investment holding company, engages in the rental of light commercial vehicles in the United Kingdom, Spain, and the Republic of Ireland. It offers vehicle hiring and fleet management services. The company also sells former rental vehicles to retail and trade customers; and provides workshop and insurance services. In addition, it provides online vehicle hiring and vehicle monitoring services to its customers. The company operates a fleet of approximately 60,900 vehicles from 65 sites in the United Kingdom and Ireland; and a fleet of approximately 48,900 vehicles from 32 sites in Spain. It serves a range of industries comprising construction, distribution, local authorities, manufacturing and engineering, public utilities, retailers, and wholesalers and business services. Northgate plc was founded in 1981 and is based in Darlington, the United Kingdom.
Best Quality Stocks To Invest In Right Now: Sogefi(SGFI.MI)
Sogefi S.p.A. manufactures and markets auto parts components for the automobile industry. The company offers filtration systems, such as oil, engine air, petrol and diesel fuel, and cabin air filters; and suspension components and precision springs, including coil springs for shock absorbers, stabilizer bars, torsion bars, stabilinks, leaf springs, precision springs, and track adjusters. It serves motor vehicle manufacturers in the OEM, OES, and IAM markets primarily in Europe and South America, as well as in the United States, China, and India. The company was founded in 1980 and is based in Milan, Italy. Sogefi S.p.A. is a subsidiary of CIR S.p.A.
Best Quality Stocks To Invest In Right Now: ING Group N.V. (IGK)
ING Groep N.V., a financial services company, provides banking, investment, life insurance, and retirement services for individuals, families, small businesses, corporations, institutions, and governments worldwide. The company provides savings accounts, mortgage loans, consumer loans, credit card services, and investment products, as well as current account services and payments systems; life and non-life insurance products; asset management products and services; mortgage products; and risk management services. It also offers commercial banking products and services, including lending products, such as structured finance; payment and cash management, and treasury services; and specialized and trade finance, derivatives, corporate finance, debt and equity capital markets, leasing, factoring, and supply chain finance. In addition, the company provides individual endowment, and term and whole life insurance products, as well as traditional, unit-linked, and variable annuity life insurance products for individual and group customers; fire, motor, disability, transport, accident, and third party liability insurance products; employee benefits products and pension funds; retirement services, fixed annuities, mutual funds, and broker-dealer services; and disability insurance products and complementary services for employers and self-employed professionals comprising dentists, general practitioners, and lawyers. Further, the company offers investment management services. ING Groep N.V. operates a network of approximately 280 branches in the Netherlands; and 773 branches in Belgium. The company was founded in 1991 and is headquartered in Amsterdam, the Netherlands. ING Groep N.V. is a subsidiary of Stichting ING Aandelen.
Best Quality Stocks To Invest In Right Now: StarTek Inc.(SRT)
StarTek, Inc. provides business process outsourcing services for the communications industries in the United States, Canada, the Philippines, Costa Rica, and Honduras. It offers technical and product support services through telephone, e-mail, chat, facsimile, and Internet; sales support services comprising receiving and closing sales on inbound sales inquiries, and cross-selling and up-selling its clients? products; provisioning and complex order processing services, including order management and technical sales support for wire-line, wireless, data, and customer premise equipment communications, as well as services for its clients direct to consumer order processing and transfer of accounts between client service providers; and receivables management services, such as billing, credit card support, and first party collections. The company also provides industry-specific processes, which include technical support; phone number portability services comprising automated an d live agent interaction, facilitate pre-port validation, data collection, automatic processing of port-out/in requests, direct and automated interface with the service order activation platform, fallout management tool, and port request tracking and archiving; and directory management services. StarTek, Inc. was founded in 1987 and is headquartered in Denver, Colorado.
Best Quality Stocks To Invest In Right Now: SVC Capital Plc (SVI.L)
SVG Capital Plc is an investment firm specializing in direct and fund and fund of funds investments. The firm principally invests in private equity funds managed or advised by Permira. It also invests in private equity funds that invest in Japan, North America, Asia, and life sciences sectors and in unquoted and quoted businesses through specialist funds and co-investments alongside these funds. The firm may also invest in other private equity related assets and alternative asset classes. For direct investments, the firm considers management buyouts, buyins, and co-investments alongside funds. It invests through its own balance sheet and on behalf of third-party investors through funds it manages or advises. The firm was formally known as Schroder Ventures International Investment Trust plc. SVG Capital Plc was founded in May 1996 and is based in London, United Kingdom with additional offices in Singapore and Boston, Massachusetts.
Best Quality Stocks To Invest In Right Now: WebMediaBrands Inc(WEBM)
WebMediaBrands Inc., an Internet media company, provides content, education, and career services to media and creative professionals through a portfolio of vertical online properties, communities, and trade shows. The company operates mediabistro.com, a blog network that provides content, education, community, and career resources about media industry verticals, including new media, social media, Facebook, TV news, sports news, advertising, public relations, publishing, design, mobile, and the semantic Web. Its mediabistro.com also includes a job board for media and business professionals focusing on various job categories, such as social media, online/new media, publishing, public relations/marketing, advertising, sales, design, and television. The company also operates a network of online properties, including AdsoftheWorld, DynamicGraphics, LiquidTreat, BrandsoftheWorld, Graphics.com, StepInsideDesign, Creativebits, and GraphicsDesignForum that provide content, educatio n, community, career, and other resources for creative and design professionals. In addition, it offers community, membership, and e-commerce offerings comprising a freelance listing service, a marketplace for designing and purchasing logos, and premium membership services. Further, the company provides online and in-person courses, panels, certificate programs, and video subscription libraries for media and creative professionals. Additionally, it organizes various trade shows that include Semantic Technology Conference, Monetizing Social Media, Social Media Optimization Conference, Social Gaming Summit, and Virtual Goods Summit. The company was formerly known as Jupitermedia Corporation and changed its name to WebMediaBrands Inc. in February 2009. WebMediaBrands Inc. was founded in 1999 and is based in New York, New York.
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