Diamonds and Dogs
Watch those Clydesdales trot their way to the top. Today's diamond is the American classic brewer Anheuser-Bush (BUD). The stock is up 5% on news the company intends to make a proposal to acquire SAB. SAB is the brewery that produces Miller, Coors, and Blue Moon. If the deal goes through it would be the largest merger in the beer industry. With history of BUD's management being extremely determined when securing assets, you can expect to see SAB to merge with BUD. SABMiller is up 20%, a good year in one day.
Get your food delivered to your home while you watch your money burn in the red. Today's dog is Grub Hub (GRUB) with a 4% decrease in share price. Amazon launched a restaurant ordering/delivery service in Seattle, but you can expect to see them expanding sometime soon to similar places, like New York. GrubHub has been on a steady decline since reporting first quarter earnings in April, down 45% with unfortunately no bottom in sight. Cowen & Co also lowered their GrubHub price target price to $25 from $30. Hopefully, the stock will bottom soon.