No Love for Those Who Stumble

 | Dec 04, 2012 | 10:15 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






Tibco (TIBX), Darden (DRI) and, to a lesser extent, Gap (GPS) worry me.

Tibco's one of those companies with software that allows data to be recalled with lightning speed, so when you are shopping for a Tommy tie at Macy's (M) they can quickly match it with a deal on a Tommy shirt. This is the company that allows casinos to manage comping real time. It's always had a reputation as doing better and better each quarter.

Until tonight when it hit the wall. Seventeen consecutive quarters of beating the Street and then, suddenly, tonight it tells people it can no longer keep the streak going. I have interviewed CEO Vivek Ranadive many times and this is pretty shocking.

It can't happen when things are getting better, only when things are getting worse.

Darden's terrible. I can't tell you how much I want to say that management's at fault because I am tired of hearing from management that their advertising didn't resonate. It's incredible the excuses this company keeps offering for its myriad disappointments.

But I just fear that there's a pullback in spending. You get 2% declines in Red Lobster and Olive Garden same-store sales again amd you know things are getting worse, not better.

Finally there's Gap. This was many a gadfly's expectation for the next special dividend play. Instead we got the worst of all possible worlds, a rumor from an investment firm that Gaps' same-store sales are weak, coupled with a statement from management that no special dividend's coming.

The issue is all three of these stocks had been fairly hot of late. Tibco traded at $32 a little more than two months ago, now it is at $21. Gap hit its 52-week high at $37 in October, but was at $35 just last week. Bingo, it's at $30. Darden's down $5 today, stopped maybe only by it 4.22% yield, which may be too flimsy in the post-cliff world.

Tibco and Darden will probably catch downgrades tomorrow. Gap's being defended.

But the bottom line is that there are no bidders for those who screw up or are rumored to be doing badly. This reminds us, again, that we have a treacherous tape until the disappointment of no fiscal cliff deal becomes the consensus view for all to see.

Columnist Conversations

there is some very heavy selling today and poor price action in Facebook today.  in the first hour the st...
Stock has been roasted last five trading sessions. Time to rotate into Ford ahead of big CEO long-term plan re...
Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.