Diamonds and Dogs
5/29/13MRC Global Inc. (MRC)
MRC Global is trading in the red today, down 14.14% at $28.50. The pipe, valve, and fittings company saw its shares fall after news that line pipe sales missed expectations. MRC disclosed that its line pipe sales in April and May would be about $100 million below its prior expectations. The company explained that its major U.S. customers have spent less on line pipe in recent weeks, partly due to reduced drilling activity and lower natural gas liquid prices. MRC shares dropped $4.70 today but were able to stay above their 52-week low of $19.04.
Smithfield Foods Inc. (SFD)
Smithfield Foods is keeping its investors satisfied today, up 28.42% at $33.35. The fresh meat producing and packaging company saw its shares jump after news of a buyout deal. Chinese firm, Shuanghui International Holdings, offered Smithfield $34.00 per share in cash, which values the company at $7.1 billion. Shuanghui stated the reason for the acquisition was that it seeks to take control of Smithfield's popular brands, which include its namesake Smithfield, Eckrich, Farmland, Armour and others. The deal sent Smithfield shares to a new 52-week high of $33.96, intraday.