Diamonds and Dogs
6/24/13Walter Energy Inc. (WLT)
Walter Energy is burning investors today, down 16.15% at $10.60. The coal producer and exported saw its shares fall on worries of the Chinese economy and possible regulations on coal-fired power plants in the US. The worries of a slowing Chinese economy are coming off of its benchmark index falling 5%, marking its largest loss in four years. Furthermore, President Obama is giving his speech regarding climate control. People consulting with White House officials on Obama's plan said they expect him to put forth regulations on heat-trapping gases emitted by existing coal-fired power plants. Both issues seem to weigh on Walter Energy, and shares of the company fell to a new-52 week low of $10.68.
STEC Inc. (STEC)
STEC is skyrocketing today, up 86.91% at $6.71. The solid state drive (SSD) company saw its shares jump after news that Western Digital would buy STEC. The deal is for $340 million in cash, valuing STEC at around $6.85 per share, the deal also represents a 91% premium to STEC's Friday closing price. Western Digital said the purchase would all them to expand into solid state drives, and diversify away from "hard-drive" roots. STEC's technology is seeing growing demand from companies such as Facebook and Google. Steve Milligan, Western Digital's CEO said "Solid-state storage in the enterprise will play an increasingly strategic role in the future of Western Digital."