If you think you had a stressful morning it would be best to keep your weak ass away from Piper Jaffray's Stephanie Wissink, because homegirl is having A DAY!
Here's something you don't see every day: Piper Jaffray analyst Stephanie Wissink downgraded and then upgraded shares of the hair salon chain Regis Corp. on the very same morning.
The rating changes revolved around confusion over how an overtime rule change announced by the U.S. Department of Labor will affect the company's bottom line. Beginning on Dec. 1, salaried employees earning below a certain threshold will be eligible for overtime pay if they work more than 40 hours a week.
In retrospect, the morning started off pretty normal...
Under the impression that the company's store-level managers were salaried, she estimated that Regis's expenses would increase by $81 million. She reduced her price target on the stock to $8 from $13 and downgraded the shares to underweight from neutral.
But like any morning things took a turn...
Regis then told her these managers weren't salaried and were already claiming overtime hours.
The rule change ends up affecting a much smaller number of employees at Regis. "Approximately 600 field managers are exposed, and as such, we are adjusting our estimates to reflect the field supervisors that are below the salary threshold," [Wissink] wrote. "This impact narrows to closer to $5 million to $10 million based on our estimates."
So she rubbed her tired eyes and yelled "Do-over!"
Wissink then upgraded the stock back to neutral and raised her price target to $12 from $8.
And all was well...sort of.
Just for fun, can you look at Regis' trading day and see where Stephanie Wissink had her coffee?