Core-Mark Holding Company, Inc. | $CORE Stock | Shares Crash Down On Announcement Of Expiration Of Supply Agreement


Core-Mark Holding Company, Inc. (NASDAQ: CORE)



Core-Mark Holding Company, Inc. (CORE), one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry yesterday announced that its supply agreement with Circle K Stores has expired for the southeastern region of the U.S. This expiration represents about 1,100 stores or a 36% drop in the amount of Circle K Stores that Core Mark was supplying.


Core-Mark Holding Company, Inc. CEO’s Comments

“We are disappointed that we did not retain all of the stores during this renewal process, but our long-standing partnership with this industry leading retailer remains strong,” said Thomas B. Perkins, President and Chief Executive Officer.  Globe Newswire


CORE Technical Analysis

Core-Mark Holding

CORE opened trading yesterday at $44.15 which was down from the previous days trading of $45.11. CORE closed trading yesterday at $38.72 equivalent to a 12% decrease from the opening price. Taking a look at the daily chart we can see the last time CORE traded below these levels we have to go back to April 22nd when it traded at $38.37. Taking a closer look at the daily chart we can see that CORE has been in a downward trend dating back to July 29th when it traded at $48.96. CORE has a float of 45.06 million shares and traded 10.17 times the normal daily trading volume on Monday. For trading purposes, I would like to see CORE open trading on Tuesday below $40.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

Company Profile

Core-Mark Holding Company, Inc., incorporated on August 20, 2004, is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services to over 36,500 customer locations across the United States and Canada through over 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products.

The Company purchases a range of brand name and private label products, in excess of approximately 54,000 stock keeping units (SKUs), from suppliers and manufacturers. The Company’s product categories include cigarettes; food; candy; other tobacco products; health, beauty and general; beverages, and equipment/other. The Company’s food products include fast food, candy, snacks, groceries, beverages and fresh products, such as sandwiches, juices, salads, produce, dairy and bread. The Company’s non-food products include cigars, tobacco, health and beauty care products, general merchandise and equipment.

The Company competes with Berkshire Hathaway Inc., The H.T. Hackney Company, Eby-Brown Company, Wallace & Carey, Inc., Pratts Wholesale Limited, Sobeys Inc., Anheuser-Busch Companies, Inc., MillerCoors LLC, The Coca-Cola Company, PepsiCo, Inc., Costco Wholesale Corporation and Sam’s West, Inc.  Reuters




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