EnerSys Announces Acquisition of Purcell Systems for $115 Million (ENS)

Early on Wednesday, industrial battery manufacturer EnerSys (ENS) entered into an agreement to acquire Purcell Systems for $115 million.

EnerSys expects the transaction to be accretive to its earnings by 15 to 20 cents per share in the first year. The company will finance the purchase of the Spokane, Washington-based company with existing cash and credit facilities.

Purcell Systems is a manufacturer of “thermally managed electronic equipment and battery cabinet enclosures for customers globally in telecommunication, broadband, utility, rail and military applications.”

EnerSys shares were inactive during pre-market trading on Wednesday. The stock is up 48.1% year-to-date.

Repeal of Muni Tax-Exempt Status Would Devastate Counties: Report

“Municipal bonds enable state and local governments to build essential infrastructure projects, such as schools, hospitals and roads,” The National Association of Counties helpfully reminds readers in a recent pitch to preserve the tax-exempt status of municipal bonds.

Congress and the administration are currently debating federal tax reform, including a cap or a repeal of the tax-exempt status of municipal bond interest. The group’s analysis of the municipal bond market and of the estimated impact of a 28% cap and a repeal of their tax-exempt status on the 3,069 county governments reveals that:

The tax exemption of municipal bond interest from federal income tax represents one of the best examples of the federal-state-local partnership, they argue.

“Because of the federal tax exemption, investors are willing to buy municipal bonds that pay less interest relative to other securities.”

With a cap or a complete elimination of the exemption, the group says, investors will want to receive greater interest payments, which would be borne by the counties, states, localities and state/local authorities. Finally, all Americans, as taxpayers securing the payment of municipal bonds, will incur the cost.

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Check out 5 Reasons Muni Bonds Will Outperform in 2013 on AdvisorOne.

New 52-Week High for State Street - Analyst Blog

Shares of State Street Corporation (STT) achieved a new 52-week high, touching $68.86 at the end of the trading session on Jul 9. The closing price of this global banking major reflected a solid year-to-date return of 43.6%.

Despite the strong price appreciation, this stock has plenty of upside left, given its estimate revisions over the last 60 days and expected year-over-year earnings growth of 15.3% for 2013.

Growth Drivers

The expected year-over-year growth rate of 17.5% for second-quarter, impressive first-quarter 2013 results and solid capital deployment activities were the primary growth drivers for State Street.

The company is scheduled to announce second-quarter results on Jul 19. The Zacks Consensus Estimate for the quarter is pegged at $1.19 per share. The Zacks Earnings ESP (Read:Zacks Earnings ESP: A Better Method) for State Street is 0.00% for the second quarter. This, along with its Zacks Rank #2 (Buy), lowers the chances for a positive earnings surprise.

Moreover, in April, State Street's first-quarter earnings beat the Zacks Consensus Estimate. Better-than-expected results were driven by an increase in fee income, partially offset by higher operating expenses and a decrease in net interest income.

Estimate Revisions Show Potency

For State Street, over the last 60 days, 6 of the 14 estimates for 2013 have been revised upward, raising the Zacks Consensus Estimate by nearly 1% to $4.55 per share. For 2014, 6 of the 14 estimates moved north, helping the Zacks Consensus Estimate advance 1.2% to $5.19 per share.

Other well performing banks include JPMorgan Chase & Co. (JPM), KeyCorp. (KEY) and Northern Trust Corporation (NTRS). All of them carry the same Zacks Rank as State Street.

Where Wrestling's Next Generation of Stars Come to Train

Courtesy: WWE ORLANDO, Fla. -- Bodies crashing to the ground and being slung against the springy ropes of the ring. The slapping of skin as hulking men and women grapple and hurl blows at one another. The clink of free weights and the roar of broadcasters practicing to get it just right for the cameras. Welcome to World Wrestling Entertainment's (WWE) Performance Center, a $2.5 million, 26,000-square foot facility that opened last month, replacing a much smaller and antiquated facility in Tampa. It's both a graduate school of sorts for the WWE's next generation of talent and a training and rehabilitation center for its top-tier pro wrestlers, called "Superstars" and "Divas." "Most kids grow up and at least at some point in their lives want to be a fireman or a cop. I've always wanted to be a pro wrestler since I was a little kid," said 29-year-old Corey Graves, one of the 75 aspiring wrestlers based at the center. The largest part of the facility is a vast space featuring seven wrestling rings that makes the new Orlando facility the largest training facility WWE has ever built. Wrestler Xavier Woods, 26, said it's the kind of environment he always hoped to train in. "When I first started, the guy that was training us rented out the back of a storage unit, just a tight little space with bugs and everything. It was like the lowest-level thing you could do," Woods said. "So to be in a place like this ... it's literally unreal." Aspiring wrestlers currently in training range from former NFL players and Olympians to a former beauty pageant contestant. They signed contracts allowing them to work solely on becoming wrestlers. "One hundred percent, this is their jobs," said Jane Geddes, WWE senior vice president of talent and development. Courtesy: WWE Geddes said the WWE built the center envisioning a place where up-and-comers could train alongside established professionals. WWE is the major leagues of pro wrestling, with a half-billion dollars in annual revenue. Traditionally, it has been a magnet for young talent from smaller, independent wrestling operations. But those minor leagues are dwindling, and while the WWE does still hold some open tryouts, the performance center will be its main training ground for developing talent. "This is where it starts for professional wrestlers now and this is where it will end -- in a good way -- as they look to move up to our main roster," Geddes said. "The timing was perfect for us to be able to move to the next level and create a facility like this." Those who succeed will advance to WWE's "Raw" and "Smackdown" television broadcasts, as well as to pay-per-view shows, including "WrestleMania." In the meantime, they split training time with appearances in WWE's weekly "NXT" shows, which are filmed live in front of a crowd of 500 at nearby Full Sail University, a school with a heavy emphasis on entertainment production. The one-hour shows are broadcast in 100 countries. While the performance center is mainly occupied by its "NXT" talent going through training, one of WWE's biggest stars, Paul "Big Show" Wight, was there recently to rehab from hip surgery. WWE's old Tampa facility had only three wrestling rings and was located in a warehouse with no air conditioning. The new facility is triple the size. It has an area where television announcers hone their craft, a studio where wrestlers practice television promos, as well as lockers, weight rooms and rehabilitation facilities that are NFL and NBA caliber. In many ways, developing wrestling characters is just as important as physical skill, as big, over-the-top personas like Hulk Hogan and Dwayne "The Rock" Johnson are what sell the sport. Everything the wrestlers do at the facility, from their development in the ring and in front of the camera during promo sessions, can be sent electronically back to WWE headquarters in Stamford, Conn. There's no set period for how long a wrestler will spend at the performance center before moving up to the big time, but at the new training hub, wrestlers like Woods and Graves are confident they have what they need to succeed. "Everything is right at our fingertips," Graves said. "You can actually feel a part of the big machine, which is really cool, because it can get frustrating when you think you're on your own. But now it's like, you're in it."

Why Dow Investors Should Expect Even More Volatility

The Dow Jones Industrials (DJINDICES: ^DJI  ) are continuing their recent run of triple-digit volatility, dropping 205 by 10:55 a.m. EDT, with all 30 of its components lower on the day. After a long period of low volatility, the move has taken some investors by surprise. But when you take a longer-term perspective, what's surprising is how long stock-market investors didn't have to deal with the current levels of choppiness in the market.

Even after yesterday's much-anticipated Federal Reserve announcement, in which it presented some of its initial thoughts about pulling back from its extensive monetary interventions, the S&P 500 Volatility Index (VOLATILITYINDICES: ^VIX  ) remains at relatively low levels from a historical perspective. Throughout much of the past several years since the end of the bull market in 2007, volatility has been well above current levels, with occasional spikes to two or three times what you're seeing now. What we've seen over the past year has been a relative aberration, and although similarly calm markets prevailed throughout much of the boom period in the mid-2000s, the rise in volatility isn't even close to approaching crisis levels yet.

Moreover, most stocks within the Dow are moving similar amounts, with only a couple of stocks posting declines of more than 2%. That suggests market-driven trading, rather than stock-specific action, although the relatively strong performance from Cisco Systems (NASDAQ: CSCO  ) , which is down just 0.6%, shows that investors are still looking for potential value in their stock picks. Cisco is looking at emerging markets for growth, with CEO John Chambers recently noting that U.S. tax policy all but forced the company to look outside its domestic operations to expand. Moreover, its purchase of Composite Software should help the company expand its role in virtualization technology, a key component of cloud-computing infrastructure, as Cisco broadens its expertise across the IT industry.

The next question for the market depends on whether adverse market conditions lead to changes in strategic thinking. We've already seen one victim of that change: Insurance software and services provider Ebix (NASDAQ: EBIX  ) plunged more than 40% after investment firm Goldman Sachs (NYSE: GS) canceled a planned merger with a Goldman affiliate. M&A activity has increased recently, but falling markets often lead to fewer mergers actually going through and can also lead to reductions in IPOs coming to market as well. That's bad news for Goldman as well, which relies on underwriting such deals.

Long-term investors shouldn't let the Dow's volatility worry them, but they should get used to it. Eight straight triple-digit moves may be unusual, but heightened levels of market bumpiness really aren't.

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Is Pantry's Cash Flow Just For Show?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Pantry (Nasdaq: PTRY  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Pantry generated $62.2 million cash while it booked net income of $0.1 million. That means it turned 0.9% of its revenue into FCF. That doesn't sound so great.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Pantry look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 12.2% of operating cash flow coming from questionable sources, Pantry investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 4.6% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 50.2% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Is Pantry the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

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Some Numbers at G-III Apparel Group that Make Your Stock Look Good

There's no foolproof way to know the future for G-III Apparel Group (Nasdaq: GIII  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like G-III Apparel Group do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is G-III Apparel Group sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. G-III Apparel Group's latest average DSO stands at 66.3 days, and the end-of-quarter figure is 43.7 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does G-III Apparel Group look like it might miss its numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, G-III Apparel Group's year-over-year revenue grew 27.5%, and its AR grew 9.7%. That looks OK. End-of-quarter DSO decreased 14.0% from the prior-year quarter. It was down 28.8% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Selling to fickle consumers is a tough business for G-III Apparel Group or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

Add G-III Apparel Group to My Watchlist.

2 Amazon Numbers to Watch Next Week

The following video is from Monday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jason Moser and Matt Argersinger, discuss the top business and investing stories of the day.

In his annual letter to shareholder, Amazon.com (NASDAQ: AMZN  ) CEO Jeff Bezos defended the company's investments in its Prime and Kindle businesses. In FY 2012, Amazon reported a net loss of $39 million. Will Amazon's investments pay off? Is Amazon's business model superior to Apple's (NASDAQ: AAPL  ) ? What numbers should investors be watching when Amazon reports earnings next week? In this installment of MarketFoolery, our analysts talk about the future of Amazon.

Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of its competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.

The relevant video segment can be found between 13:37 and 19:41.

For the full video of today's MarketFoolery, click here.

Today's 3 Best Stocks

One day after powering to an all-time record high on the broad-based S&P 500 (SNPINDEX: ^GSPC  ) , investors thought the euphoria was so nice that they wanted a repeat experience. Luckily for investors, today's economic data, and a select few strong earnings reports, were more than happy to oblige.

Leading the charge was this week's initial jobless claims figure, which dropped by 10.8% to a seasonally adjusted 346,000. This was well below economists' expectations, and could signal the job market is improving at a faster rate than many are forecasting.

The other half of the coin had to do with a strong performance from the retail sector, which had been a laggard of late. We'll get to that in a moment.

For the day, the S&P 500 finished higher by 5.64 points (0.36%), to close at 1,593.37, yet another fresh all-time record high.

Today was all about retail, retail, retail, with discount brand-name retailer Ross Stores (NASDAQ: ROST  ) leading the way. Ross shares advanced a strong 5.9% after reporting a March sales increase of 6%, and a same-store sales increase of 2% over the comparable period last year. This was well above the company's own forecast for a same-store sales decline of 1%-2%. Further, sales in the first three months of the year grew 4% (1% on a same-store basis). Ross CEO Michael Balmuth noted that its EPS results are likely to come in "slightly above the high-end of our previous range of $1.00 to $1.04" for its upcoming quarter. Ross's ability to appeal to customers with fresh and in-demand brands, as well as control its inventory, is one reason I made a recent CAPScall of outperform on the company.

A day after collapsing under the weight of a CEO change, struggling department store J.C. Penney (NYSE: JCP  ) bounced higher by 5.4%, after activist investor Bill Ackman threw his support behind new CEO Mike Ullman, calling him, "the right guy at the right time," according to a Reuters report. However, I'm not so sure Penney's will be seeing a rebound anytime soon, with Ullman admitting that he doesn't have his ducks in a row yet as to how to turnaround the company he led from 2004 to 2011. Ullman does have good rapport with J.C. Penney's vendors, but I'm not sure that's going to be enough to coax disgruntled customers back into its stores.

Finally, Victoria's Secret owner Limited Brands (NYSE: LTD  ) jumped 4.3% after following Ross's lead, and reporting impressive March sales results. For the five-week period, net sales rose 6%, while comparable store sales ticked higher by 3%. For the rolling nine-week period, comparable sales are up 3%, as well. Limited has taken a lot of heat for slowing same-store sales growth in recent months after years of high single-digit growth. However, I believe this was largely unwarranted pessimism given the company's penchant for putting the right product in front of its customers, and minimizing discounts.

Does a new CEO mean a new direction for J.C. Penney?
J.C. Penney's stock cratered under Ron Johnson's leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you're wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about JCP's turnaround -- or lack thereof. Simply click here now for instant access.

Can Netflix Conquer Europe?

Netflix  (NASDAQ: NFLX  ) intensified its assault on Europe this month by launching in six countries, including France and Germany, its biggest ever expansion push.

The launch also included Austria, Switzerland, Belgium, and Luxembourg, which marks a change to how Netflix has approached expansion. In the past, the video service has added new territories at a more measured pace, minimizing how many languages it has to deal with each time. The company added Canada in 2010, Latin America in 2011, the United Kingdom, Ireland, and Scandinavia in 2012, and the Netherlands in 2013.

Jumping into six new territories at once, which speak multiple languages, is a new type of challenge. Austria and Germany speak German, France speaks French, while Swittzerland counts German, French, Italian, and Romansh as official languages. Belgians speak Dutch, French, and German, and the majority of Luxembourg's residents speak Luxembourgish, though French and German are the official languages. That, plus dealing with a variety of cultures, and some resistance to American-owned companies, makes the expansion a potentially profitable, but risky gambit.

This has not stopped Netflix CEO Reed Hastings from being very excited about the company's ability to woo a significant portion of the 63 million broadband homes the company says are in the six countries combined.

"We've received a very warm welcome throughout Europe," said Hastings in a Sept. 19 press release. "Consumers love choice -- in series and films and in when and where they watch. We are delighted people are embracing Netflix in our newest territories and, particularly, the incredible viewer enthusiasm for our original series."

Hastings is also realistic and knows how big the challenge is telling Reuters that Netflix will focus on getting it right in these six countries before rolling out to any more." 

Technical and financial hurdles
A huge positive for Netflix is that American movies and television are popular around the world and the company has rights to an enormous amount of those. What it does not have is localized content.

As Toby Syfret of Enders Analysis pointed out to Reuters, when Netflix enters a new market it needs to cover significant costs for content and other investments before it begins making a profit.

That means creating new shows, something it is already doing in France, and licensing market-specific content -- all of which adds to the cost.

Netflix also needs to make deals, Hastings told the news service, to get on set-top boxes. To do that the company has to make deals with Internet service providers and cable companies, a set of businesses the company has struggled to deal with in the U.S.    

These are all solvable problems in theory, but they are costly hurdles.

France is a special problem
France is extremely protective of its culture and language, and there has been a bit of a backlash to Netflix's arrival. 

When a group of company executives visited Paris earlier this year, they were welcomed by an open letter from a group of French film producers warning of an "implosion of our cultural model," The Wall Street Journal reported.

The company has responded by being very friendly, pointing out that it has a lot of French language content, though it won't specify how much, and announcing the production of Marseille, an original show set in the country.

Along with the charm offensive, Netflix has been tactical, as it's European headquarters is in Amsterdam, which allows it to skirt French laws which require 40% of programming on television and radio to be of French origin.

A screenshot of the Netflix France user interface. Source: Netflix 

Big losses
International streaming has so far been a money loser for Netflix and the company forecasts that loss will increase due to this expansion.

International Streaming Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Forecast

Revenue (in millions)	$166	$183	$221	$267	$307	$347
Contribution profit (loss)	($66)	($74)	($57)	($35)	($15)	($42)

As you can see in the chart above, the company had almost reached breakeven on its international efforts before forecasting a greater loss due to adding the six countries. Netflix has been profitable overall and it can afford to fund this expansion out of its operating profits. 

Will it work?
While Netflix has proven its model in the United States it has yet to do so globally, but the fact that international streaming nearly broke even in the second quarter of 2014 suggests that it's possible. Entering six countries with disparate cultures and languages at the same time is a risk and it does raise the question of why Netflix would not pick off low-hanging fruit in the English-speaking world first. The company, for example, has yet to launch in Australia, an English-speaking country with American sensibilities that is used to paying for TV.

Ultimately, while each country will be its own battle, Netflix has such an impressive array of content that it should be able to overcome cultural resistance, distribution challenges, and local knockoff services. It won't be a quick path to profitability, but Netflix has shown that it can manage costs while getting bigger. By keeping losses tight, the company will eventually conquer these six countries, paving the way for further expansion.  

Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. Buffett's fear can be your gain. Only a few investors are embracing this new market, which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a free investor alert on the company we're calling the brains behind the technology.

Target to customers: No guns please

  Target: No guns in our stores, please NEW YORK (CNNMoney) If you're heading to Target, leave your guns at home.

That's the message the retailer "respectfully" sent to shoppers Wednesday.

In a note posted online, interim CEO John Mulligan said that guns in stores create "an environment that is at odds with the family-friendly shopping and work experience we strive to create."

Target (TGT), which has nearly 2,000 stores, does not sell firearms or ammunition. A representative for the company said it can't enforce the request, and will abide by all local gun laws.

The request applies to stores located in communities where people can legally carry firearms openly, Mulligan said.

There are 43 states that have so-called "open carry" laws, meaning you can visibly carry a licensed firearm in public. Many businesses, including Wal-Mart (WMT) and Home Depot (HD) say if guns are allowed in the state, they're allowed in their stores.

But open carry laws don't require businesses to allow guns on their properties.

Starbucks (SBUX), Chipotle (CMG), Sonic (SONC), Disney (DIS) theme parks and Chili's, which is owned by Brinker International (EAT), have recently asked their customers to come unarmed.

Gun-control group Moms Demand Action for Gun Sense in America said it "applauds Target's decision today to ask customers not to bring guns into its stores," in a statement released after the decision.

Related story: Starbucks to customers: Please don't bring your guns!

The group started an online petition in June to demand that Target "protect customers in its stores," which has garnered nearly 400,000 signatures, according to the group. Moms Demand Action also pushed Starbucks and the fast-food chains to take a stand.

Gun-rights advocates ha! ve recently been showing up at restaurants and stores, including some Target locations, openly carrying small arms and large assault rifles to protest their right to bear arms.

Open Carry Texas, which organized many of the demonstrations, wrote on its blog on Wednesday that it "regrets" Target's decision but will honor its "policy of not taking long arms into Target stores or any other business."