Option Investor

On the "Watch" list - TTC

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King of Mowers Gets Clipped!

Shares of Toro (NYSE:TTC) slid further Wednesday in the wake of the company's quarterly report. On Tuesday, Toro posted higher-than-expected second-quarter earnings as growing international sales offset slower homeowner sales dampened by wetter weather across the U.S. The Lawn mower and outdoor maintenance equipment maker said Net income increased to $62 million, or $1.33 a share, compared with $52.2 million, or $1.00 a share in the second quarter of 2004. The numbers exceeded the consensus analyst forecast for earnings of $1.30 a share, however investors were not impressed with the company's outlook. In addition, a post-earnings article by Herb Greenberg of MarketWatch suggested that TTC's future profit potential is less than outstanding.

With these events weighing heavily on the company's share value, conservative traders are urged to consider their "early-exit" alternatives for the position and we will be monitoring the issue closely as it nears our stop-loss price ($42.75) in the coming sessions.

MCM Staff

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