Diamonds and Dogs
9/26/12Blyth Inc. (BTH)
Blyth Inc. crashed today down, 21.12% at $25.69. The distribution company saw its shares tank after news was released that one of Blyth's subsidies, ViSalus, was no longer going to IPO. ViSalus, Blyth's weight-loss, energy-drink and nutritional-supplement business, said that while its sales have more than quadrupled in the first half of this year, its management believes that the current market won't value the company fairly if its goes public now. Blyth has a tight cash position on its balance sheet and the IPO would have helped to alleviate the strain. The company said in August it would spin off ViSalus through an initial public offering worth up to $175 million. Blyth is trading slightly above its 52-week high today.
American Greetings Corp (AM)
American Greetings is going to be receiving thank you cards from investors today, up 17.36% at $16.83. The company saw its shares rally after receiving an offer to be purchased and go private. The offer was led by its CEO and other members of the founding family, valuing the gift card and party goods company at about $580 million. The offer of $17.18 per share represents a premium of nearly 20 percent to the stock's Tuesday close of $14.34. The offer has received mixed reviews from analysts, Todd Hooper, a strategist at Kurt Salmon, said the offer price was "relatively strong." However, Ben Franklin with Intrepid Capital Management Inc. said the offer was "pretty low." Regardless, American Greetings is well off of its 52-week low now.