Shares of Twitter (TWTR) were volatile in trading yesterday as traders continued to speculate that the company would be taken over. TWTR has frequently been the subject of such rumors, such as a few days ago when it was rumored that Salesforce was likely to take over the company. TWTR closed at 25.62, up +1.75% for the session. Expect more volatility to follow.
Shares of Mosaic Company (MOS) were volatile in trading on Monday due to a takeover speculation. The company has been mentioned as a potential takeover target going back at least to 2016, but so far no buyer has yet emerged. No more details have surfaced for the rumor, and shares of MOS settled at 27.70, up +0.29% for the session. Keep an eye of the stock for further volatility as additional rumors are likely to emerge.
Shares of pharmaceutical company AbbVie (ABBV) rose to a record high in trading on Friday after the company released guidance stating the the new GOP tax bill will cut their effective tax rate from 20% to 9% for 2018, thus producing a large windfall of extra cash that the company can use as it sees fit. The markets responded strongly to this news, sending ABBV shares up +13.77% to close at 123.21. Keep an eye on the stock for more volatility.
Shares of Philip Morris (PM) were hit by negative comments by a committee advising the FDA. The committee stated that the company had failed to demonstrate that its iQos product was not sufficiently proven to be less risky for cigarette smokers. The iQos is a device that heats tobacco. PM shares sank as low as 103.02 before retracing higher to settle at 107.50, still down -2.81 for the session. Keep an eye on the stock for further developments.
Shares of Cara Therapeutics (CARA) rose strongly in trading on Wednesday due to positive mentions from Fox Business and the Motley Fool. Both sources stated that the company was a prime candidate for superior returns for shareholders, and overall analysts have maintained strong positive ratings for the stock. However, the company has yet to generate positive earnings results since its IPO several years ago, and earnings are projected to negative going through 2019. However, momentum seems strong at the moment. CARA shares closed at 16.08, up +17.20% for the session.
Shares of Paychex (PAYX) were volatile in trading on Tuesday after it was reported that the company’s founder stated that he was open to a potential merger with M&T Bank. The founder, Mr. Golisano, is also chairman of the company, and his comments appeared in the Buffalo Chronicle. Upon report of these comments, PAYX shares quickly rallied to a high of 73.03 before slumping down to close thereafter at 69.99 for the session, up +0.42% for the day. Keep an eye on the stock for more potential merger news.
Netflix (NFLX) shares rose sharply in trading both during and after Monday’s session on very positive earnings results. The rally before earnings was mostly due to the overall bullishness of the market it seems, but after hours shares soared even farther, with the net result of shares being up +10.23% as of one hour before market open on Tuesday. The company was able to increase its user base despite an increase in fees charged, leading to the company surpassing $100B in market capitalization. Keep an eye on the stock going forward over the next quarter as it is likely to be more volatile than normal.
Shares of Fossil (FOSL) rose sharply in trading on Friday after a rumor was circulated that the company is a potential takeover target. FOSL has been the subject of such rumors before, but so far no deals have been reached. No confirmation of a potential suitor has emerged either, and it is worth noting that the company’s shares lost about 70% of their value in 2017, and therefore it seems more likely that an activist investor might step in as opposed to a company buying FOSL outright. FOSL shares closed at 10.03 for the session, up +10.10%.
Shares of Verizon (VZ) were volatile on reports of potential deals between the company and both CBS Corporation and Lionsgate Entertainment Company. At first, it was reported that CBS had approached both companies on potential deals, leading the markets to speculate that CBS was looking to buy part of VZ. However, in later news, it was revealed that while CBS was indeed discussing potential deals with Lionsgate, Verizon was also discussing potential deals with the same. This news negated speculation on CBS was looking to purchase some of Verizon’s business, and VZ shares proceeded to shed their earlier gains. VZ shares settled at 51.57, down -0.33%, after trading as high as 53.30 during the session. Keep an eye on the stock for more developments.
Shares of Juno Therapeutics (JUNO) rose sharply in overnight trading after news that Celgene is in talks to potentially purchase the company. While no deal has been completed yet and no offer has officially been made, JUNO shares nevertheless rose by more than 50% on the news. JUNO shares closed up +51.86% to settle at 69.25 for Wednesday’s session. Keep a close eye on this stock as the story continues to develop.