Monday, August 27, 2007

The TJX stock is just not co-operating!

According to wikipedia :
The TJX Companies, Incorporated is the largest international apparel and home fashions off-price department store chain, based in Framingham, Massachusetts in the United States.

[...]

On January 17, 2007, TJX announced that it was the victim of an unauthorized computer systems intrusion.

TJX ended up as the default PCI black sheep. PCI, for those not in the know, is an industry standard created by the credit card companies telling stores how to protect their customer's information, specifically credit card information.

Basically TJX did everything wrong including storing information they should never have stored in the first place. 45 million credit card numbers are now being traded on the black market because of this breach.

Net income for their 2nd quarter dropped 57% due to information security costs related to the breach.

Bad news for the company, right? Wrong. Maybe someone can explain this to me but on January 16th, 2007 the share price was $29.94. Friday's closing price was $30.75. Man, did the market get them (not)! To be fair they have underperformed the S&P500 until recently but the company does not seem to be very hurt by the breach.
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