Diamonds and Dogs
11/12/12J.C. Penney Company Inc. (JCP)
J.C. Penney is going to be trading for a penny if it has a few more days like today; shares fell 13.17% to $17.92. The department store company saw its shares lose a lot of value after missing estimates for their third quarter earnings report. J.C. Penney announced that free cash flow for the quarter was an astonishing negative $1.8 billion. EPS for the quarter was negative $0.93 per share, down from a profit of $0.18 per share a year ago. To make matters worse, the company announced that it would still have large price cuts on Black Friday because it is an American tradition. Investors clearly do not agree with that decision and the drop in share price is proof. J.C. Penney set a new 52-week low today.
Gilead Sciences Inc. (GILD)
Gilead Sciences saw its shares explode today, up 13.72% at $73.93. The biopharmaceutical company saw its shares pop after news was released regarding its hepatitis C treatment. Gilead purchased Pharmasset Inc. last January and it is looking like a positive acquisition, as Pharmasset developed the hepatitis C drug, sofosbuvir. In a mid-stage clinical trial, Gilead found that 25 patients that were treated with the drug showed undetectable levels of hepatitis after four weeks of therapy. Gilead will be moving into a late-stage study, which will bring it one-step closer to possible FDA approval. Gilead set a new 52-week high today.