Venator Up 18%; Stock Said To Have Been Oversold
NEW YORK (Dow Jones)--Venator Group Inc. (Z) shares rose as much as 19.3% Friday as investors
grabbed a buying opportunity created by the stock being oversold this week.
News that Chief Financial Officer Reid Johnson would resign, coupled with debt rating-downgrades,
started a sell-off of Venator shares Tuesday. By Thursday, the stock hit a 52-week low of 3 3/16.
"I don't mean to minimize their situation, but they're not a terminal case at this point," said Margaret
Gilliam, a retail-industry analyst and president of Gilliam & Co.
Gilliam doesn't think the news earlier in the week was as bad as the sell-off would indicate.
Company observers said rumors that Venator could be a takeover candidate continue to swirl about the
company.
Van Kasper & Co. analyst John Shanley said, "Someone is buying, whether it is Greenway Partners or
someone else."
Alfred Kingsley, senior managing director of investor group Greenway Partners L.P., wouldn't say if the
group had bought or sold the stock. The group holds a 14.1% stake in the New York retailer.
Shanley, who worked as Venator's director of research when it was still Woolworth, said the company,
despite its troubles, is still the "biggest player" in the athletic footwear segment based on market share.
Those who follow the company are concerned about its "deep" price promotions, problems at its Champs
operations, the product mix at Northern Group, Shanley said. However, he is "encouraged" by the
stabilization at its Foot Locker operations.
Venator's NYSE-listed shares were recently trading at 4 3/16, up 5/8, or 17.5% from a previous close on
volue of 6.6 million shares traded. The company's average daily volume is 1.9 million.
Much of Friday's volume came from block trades, including three blocks of more than 100,000 shares.
A Venator spokesman wouldn't comment on the stock's recent activity, but said the company didn't
release any news Friday.
- Christina Cheddar; 201-938-5400
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