What Has These 4 Stocks Marching in Opposite Directions Today?

Performance Sports Group Ltd (NYSE:PSG) shares have fallen by 12% this afternoon as negative sentiment pervades the small-cap sector. Although Performance Sports Group Ltd (NYSE:PSG)’s former chairman Graeme Roustan is reportedly looking to take the company private, traders can’t shake off the company’s disappointing second-quarter, in which Performance Sports Group missed EPS estimates by $0.01 and revenue expectations by $14.48 million. The company’s outlook is also a bit lower than expected. Chief Executive Officer Kevin Davis said:

“Given the continued weakening of the Canadian dollar since our last stated guidance, we are revising our fiscal 2016 guidance and now expect Adjusted Net Income to range between $0.66 and $0.69 per share. Additionally, we expect Adjusted EPS to range between $0.09 and $0.10 in our fiscal 2016 third quarter and between $0.31 and $0.33 in our fourth quarter.”

Hurting matters further is the fact that crude prices are almost 6% lower today. Since Performance Sports gets a substantial amount of its revenue from Canada and Canada’s dollar depends in part on crude oil prices, investors are speculating that today’s falling prices will lower Performance Sports US$ earnings in the future. The Canadian dollar has lost nearly 5% against the U.S dollar since just the start of this year. The number of elite funds with holdings in Performance Sports Group remained unchanged quarter-over-quarter at 11 as of September 30.

It’s been a Friday to forget for Textainer Group Holdings Limited (NYSE:TGH) shareholders, as the value of Textainer shares has plunged by 15% in afternoon trading. Textainer Group Holdings Limited (NYSE:TGH) is one of the world’s largest lessors of intermodal containers based on fleet size in the world and the company’s fundamentals depend on a healthy global economy. Given today’s massive 451 point plunge in the Dow Jones, the future health of the global economy isn’t as assured as it was before and some investors are cutting their exposure to highly economically-sensitive stocks as a precaution.

Jim Simons‘ Renaissance Technologies was one of the seven elite funds in our system holding shares of Textainer at the end of the third quarter.

Disclosure: None