Stocks To Watch: Staples Inc. (NASDAQ:SPLS) & SYNNEX (NYSE:SNX)

Synnex tanks on guidance letdown

The third quarter results declared by SYNNEX Corporation(NYSE:SNX) on Tuesday after trading hours, was in line with analysts’ expectations. However, the company’s forecast for the current quarter ending November was lower than expected and resulted in the stock tanking more than 5 percent on Wednesday. The high tech contractor is the latest in the list of companies related to the personal computer industry to disappoint the market.

Analysts had projected third quarter revenues of $2.86 billion and earnings of $1.16 a share. But the Fremont, California based company has forecast revenues in the range of $2.71 billion and $2.81 billion and earnings between $1.02 and $1.06 per share. As a result, analysts have started cutting price targets, with an analyst from Raymond James setting a new target of $38 from the earlier $40.

Will SNX Recover After The Recent Slump? Find Out Here

The personal computer industry in general is going through a harrowing period with retail and business customers taking to new products like tablet computers.

On Wednesday afternoon, the Synnex stock was trading at $32.35, down $1.90 or 5.6 percent.

Staples to speed up stores shut down

A statement from office products company Staples, Inc.(NASDAQ:SPLS), that it will close some of its stores earlier than expected, resulted in the stock dropping sharply on Wednesday. However, it cut back some of the decline in the afternoon.

On Tuesday, the Massachusetts based company had said that it is going to close about 15 U.S. Stores earlier than originally planned, and also spoke of shutting 45 stores and some delivery businesses in Europe. The office supply retailer wants to focus more on its online and mobile business and also plans to offer more products to business customers.

The company had posted poor results in the second quarter due to lower computer, software and office supplies sales. Tablets and other devices have dented Staples’ computer business. The crisis in Europe has also affected sales in the region.

Shares of SPLS ended lower on Wednesday at $11.40, down 4%. The stock has lost 8% in the past two trading sessions.

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Stocks In News (GENE, GEVO, EOX, SPLS)

Genetic Technologies Limited (ADR)(NASDAQ:GENE) shares climbed 14.33% to $3.83 after the company announced that BREVAGen has been cleared for sale into the State of Florida following the grant of a permit to the Company's Australian-based laboratory by the Clinical Laboratory Unit of the Florida Agency for Healthcare Administration (AHCA).

Will GENE Continue To Move Higher? Find Out Here

Gevo, Inc.(NASDAQ:GEVO) shares plunged 15.41% to $2.80 after the company announced the start-up of its Luverne, Minn., bio-isobutanol production facility. Over the past 17 weeks, Gevo has successfully produced and shipped commercial-quality product in railcars for customers.   The company’s market development is proceeding well. Bio-isobutanol applications for the specialty chemicals and chemical intermediates sectors include groundbreaking work in paraxylene with Toray and Coca-Cola.

Additionally, Gevo’s stock had its target price trimmed by Canaccord Genuity from $8.00 to $6.00 in a research note issued to investors today. The firm currently has a buy rating on the stock.

Emerald Oil Inc(NYSEAMEX:EOX) shares dropped 6.18% to $0.835 after the company announced that it has priced a public offering of 93,750,000 shares of common stock to the public at $0.80 per share. The gross proceeds to Emerald from the offering are expected to be $75.0 million, and the net proceeds are expected to be approximately $69.1 million, after deducting underwriting discounts and commissions and other estimated offering expenses. Emerald expects to close the sale of the shares of common stock on September 28, 2012, subject to customary closing conditions. 

Staples, Inc.(NASDAQ:SPLS) shares fell 3.81% to $11.88 in pre-market hour after the company said it will close more stores, implement leadership changes and invest in its online unit as the company looks for ways to cut down expenses and grow in a struggling economy.

Will SPLS Rebound After Today’s Fall? Find Out Here

The company plans to cut retail square footage in North America by around 15% by the end of fiscal 2015. The cost savings plan is expected to generate annualized pretax cost savings of about $250 million by the end of fiscal year 2015.

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