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)

Aug 21, 2015 at 9:39 AM
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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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