Buzz Stocks: Foot Locker, Skechers, and Siliconware Precision

Today's stocks to watch include Foot Locker, Inc. (FL), Skechers USA Inc (SKX), and Siliconware Precision Industries (ADR) (SPIL)

by Mark Fightmaster

Published on Aug 21, 2015 at 9:39 AM
Updated on Jul 2, 2020 at 12:38 PM

U.S. stocks are moving lower again, after fears were stoked by weak manufacturing data in China. Among the equities in focus are retailer Foot Locker, Inc. (NYSE:FL), shoe maker Skechers USA Inc (NYSE:SKX)and semiconductor concern Siliconware Precision Industries (ADR) (NASDAQ:SPIL).

  • This morning, FL reported stronger-than-expected earnings. In reaction, Deutsche Bank raised Foot Locker, Inc.'s price target to $80 from $78, and underscored a "buy" rating. This move follows a similar move made by Barclays yesterday. The shares were pointing higher in pre-market action, but have succumbed to broad-market headwinds, down 1.9% at $70.39. Should any bears hit the exits, FL could enjoy a short-covering boost, as 9% of its float is sold short. In fact, it would take 11.5 days to liquidate all the shorted shares, at FL's average pace of trading. 

  • SKX is down 7% at $136.76, after the company's board approved a 3-for-1 stock split, which would be distributed via dividend. Skechers USA Inc shareholders will need to approve the split, which should be voted on at a special meeting scheduled for Sept. 24. To say SKX has had a meteoric rise this calendar year would be an understatement, as the shares have advanced 150%, even with today's dip. Options players turn a blind eye to SKX's performance, as the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.13 is higher than 98% of the readings taken in the past 52 weeks. In other words, short-term traders have rarely been more put-biased.  

  • Finally, Taiwain's Advanced Semiconductor Engineering (ADR) (NYSE:ASX) announced that it will buy up to 25% of SPIL for an amount likely exceeding $900 million. Siliconware Precision Industries (ADR) shares are more than 22% higher at $6.36. Prior to today, SPIL was trading near two-year lows, and on the cusp of oversold territory.

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