Diamonds and Dogs
Rite Aid Corporation (RAD)
Rite Aid Corporation is making its investors happy today, up 7.06% to $8.12. The chain drug store company saw its shares rally after news they entered into an agreement with Envision Pharmaceutical Services. Rite Aid will acquire EnvisionRx, a portfolio company of leading global private investment firm TPG, in a transaction valued at approximately $2 billion, which includes the value of an expected future tax benefit of $275 million. The terms of the deal are $1.8 billion in cash and $200 million in Rite Aid stock; both boards have approved the deal. Shares of Rite Aid climbed over $0.50 today and almost broke through their 52-week high of $8.62 intraday.
Pier 1 Imports Inc. (PIR)
Pier 1 Imports is pulling the chair out from under its investors today, down 24.10% to $12.88. The home furnishing company saw its shares tank after cutting its outlook and their CFO retiring. Pier 1 Imports cut their annual profit expectations to $0.80-0.83 per share, down from their last cut in September of $0.95-1.05 per share. Management stated that unexpected supply chain costs were the driving factor that caused them to lower their forecast. Shares of Pier 1 Imports fell over $4.00 today and hit a new 52-week low of $11.38 intraday.