Monday, March 15, 2010

Intra-day action

US stocks are down a bit in midday trading, with the Nasdaq pacing the way lower.  Tech shares are worse off today than others largely due to Google(GOOG), which is down 3.5% on news that they might flee the Chinese market completely.

Among gainers, the market LOVES Phillips-Van Heusen's (PVH) purchase of Tommy Hilfiger from private owners. I for one am impressed at the magnitude of earnings accretion that will be found here.  Typically a private equity seller has sucked most of the cost savings out of a business, so this is impressive.  Well...that or PVH is overly optimistic about potential synergies and cost savings.

Also up today are several firms partnering on a diabetes drug.  Alkermes, Eli Lilly and Amylin are partners in the study, which has received a positive FDA response.

Among losers is pawnshop owner and cash-advance specialist EZCorp (EZPW), off  8.5% on huge volume with no readily available news.  They are scheduled to present tomorrow at Roth Capital's OC Growth conference, so who knows, maybe they went on a day early.

Another loser today is CONSOL Energy, down 9% on news it will pay $3.5billion for the Appalachian oil & gas business of Dominion Resources (D).  It's a huge deal to swallow, and investors are spooked at the price being paid for natural gas, which becomes ever more plentiful with each passing day).

Copyright 2010 AlphaNinja

No comments:

Post a Comment