Diamonds and Dogs

3/5/2013

Impax Laboratories Inc. (IPXL)
Impax Labs is getting crushed today, down 26.00% at $14.80. The biopharmaceutical company saw shares fall after announcing an update on the FDA's inspection of the company's facility. The FDA inspected Impax's Hayward, California facility and found 12 points of concern. Three of these concerns were repeat violations that the FDA had warned Impax to fix in 2011. The main concern for the FDA was the company's manufacturing deficiencies, which can cause huge problems for any company, especially a biopharmaceutical company. After the news, analysts from Canaccord downgraded the company from buy to hold. Impax set a new 52-week low today, dropping past its previous low of $18.90.

Cree Inc. (CREE)
Cree and the Dow Jones are both setting new highs today, with Cree up 14.38% at $51.15. The LED lighting company saw its shares explode after increasing its forecast and announcing a release of a new light bulb. The company announced that it would sell a LED light bulb for under $10 at Home Depot. The cost efficient LED bulb is seen as a ground-breaking product for the company. Breaking the $10 price range for the LED bulb will help to sway consumers into switching from incandescent bulbs to the energy efficient LED bulb's. Management feels the bulb will help to increase revenue, as such the company increased their forecast for revenue from a range of $325-345 million to a range of $335-350 million. Cree set a new 52-week high today by over $4.00.

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