Sector movers: SuperGroup priced for disastrous results

8th Nov 2011 15:44

Trendy fashion chain SuperGroup is set to announce results tomorrow. According to Peel Hunt, "the critical part of Wednesday's IMS [interim management statement] is not the trading update itself, rather whether management can demonstrate that its warehouse problems have been circumvented or solved, so that peak trading will be unaffected."Peel Hunt said that with the shares trading on seven times projected fiscal 2013 earnings per share, the current share price assumes "disaster" and "no longer give SuperGroup the benefit of any doubt."Clearly, some investors are of a similar view, with the result that the shares have zoomed up, pushing the personal sector up with them.Going the other way is the pharmaceuticals sector after one of the giants of the sector, AstraZeneca, disappointed with an update on a trial of TC-5214, an anti-depressant drug developed in partnership with US partner Targacept.Panmure Gordon, a fan of the stock, argues that the news is not a total disaster."Although it is never a good thing to fail phase III trials, it should be noted that the company had been doing a good job at managing expectations for this high risk project. This is evidenced by consensus forecasts, which shows peak sales expectations of $266m in 2016 (vs. our forecast of $180m in 2016)," the broker said, adding that "it is not the end of the road for TC-5214."Top performing sectors so far todayPersonal Goods 22,189.26 +3.22%Oil Equipment, Services & Distribution 22,475.74 +3.00%Real Estate Investment Trusts 1,928.20 +2.63%Mobile Telecommunications 4,012.85 +2.42%Automobiles & Parts 4,447.00 +2.04%Bottom performing sectors so far todayPharmaceuticals & Biotechnology 9,523.08 -0.39%Media 3,998.63 -0.24%Gas, Water & Multiutilities 4,704.84 -0.15%Travel & Leisure 4,159.42 -0.08%Alternative Energy 8,888.00 0.00%NR