Diamonds and Dogs
Macy's (M) is bucking the trend up 3% continuing its rally since mid-December. The stock got hammered last year down 42% from the summer highs due to weak year-end sales, but things are changing. In December Macy's announced a restructuring that investors liked. Today the stock is higher after private equity firm, Greenlight Capital confirmed buying a stake in the stock last quarter. One of the rumors is Greenlight might team up with a real estate investment trust to buy the retailer and put the assets in a trust. Macy's rejected the idea of becoming a REIT last year, but it could make more sense now that the stock has dropped so low. We'll see.
I hope you don't have nausea and/or vomiting caused by other drugs, because the solution looks to be delayed. Heron Therapeutics (HRTX) is trading sharply lower down 20% after the U.S. FDA informed the company that it has not yet completed its review of their new drug, SUSTOL® (granisetron). The drug is an injection used to act against acute and delayed chemotherapy-induced nausea and vomiting. The FDA plans on taking actions on the new drug by late February of this year. The company's shares have been on a roller coaster ride during the last 52 weeks. The stock rose nearly 4 fold the first 9 months of the year only to come back to earth since then. Let's hope the FDA can reward Heron next month.