Diamonds and Dogs
04/23/2012Walmart Stores Inc. (WMT)
Walmart famous for cutting prices seemed to cut its stock price today, down 4.66% at $59.54. Walmart was down nearly $3.00 due to a scandal brought around by their Mexico division. Walmart Mexico faced claims about bribery and cover-ups. Several executives paid bribes to obtain permits to build new stores in Mexico; the companies fastest growing market. Furthermore, these bribes were brought to the attention of executives at Walmart's headquarters, who tried to hide the bribe. James Post, a corporate governance expert from Boston University stated, "The front of potential legal liability is just huge, it's going to cost hundreds of millions of dollars and there are a lot of careers that are going to come to an end at Walmart."
Ardea Biosciences Inc. (RDEA)
Ardea Biosciences exploded today, up 51.73% at $31.62. The company focuses on the discovery and development of small molecule therapeutics for the treatment of gout and cancer. Ardea discovered today that their research would payoff; AstraZeneca offered Ardea $1.26 billion. AstraZeneca sealed the deal today to buy Ardea for what equates out to be $32 per share, a 54% premium on Friday's close. This deal sparked shares $10.78, helping it reach a new 52-week high, which was previously set at $29.06. Ardea was a real diamond today, even with the market heading down.