Diamonds and Dogs
Cepheid is tearing the bond with its investors apart today, down 10.17% at $35.17. The molecular diagnostic company saw its shares drop after announcing that its third quarter revenue would fall short of expectations. Cepheid expects revenue of $79 million to $81 million, down from its previous estimates of $84 million to $86 million. The company said that interruptions in its supply of Xpert cartridge parts hurt its revenue during the period. Cepheid has over $5 million in back orders for the Xpert cartridge but will not be able to fill these orders until the end of October. CEO John Bishop said the demand for the Xpert family of products grew so quickly that the company was unable to scale up operations fast enough to meet the volumes being requested.
Temper-Pedic International (TPX)
Temper-Pedic investors will sleep great tonight after shares soared 14.41% to $30.64. The mattress maker saw its shares spring upward after announcing that it would purchase its rival, Sealy. The deal is expected to close in the first half of 2013 with terms of around $242 million in cash and the assumption of about $750 million in debt. CEO Mark Sarvary said, "This is a transformational deal that brings together two great companies, each with globally recognized brands, the shared know-how and improved efficiencies of the combined company will result in tremendous value for our consumers, retailers and shareholders." Temper-Pedic shares have been crushed over the last six months, dropping over $60.00 per share since April. That being said, this deal might be the spark that the company has been looking for.