Diamonds and Dogs
Welcome to the inner wall with today's diamond, Outerwall (OUTR). The owner of Coinstar and Redbox is up 7% after the company announced they would explore their strategic options to boost shareholder value. So far so good. Outerwall is also hiking their quarterly dividend by 100% or a double boosting the yield to 7%. Great income and potential for more capital appreciation, sounds like great news for shareholders.
Going from bad to worse. Valeant (VRX) has had some tough days, but today the stock is dropping 50% on real concerns of debt default risk. The Canadian drug maker started the day by slashing their 2016 sales and earnings outlook. With a $30 billion debt load thanks to a string of acquisitions, the company is now looking to sell some non-core assets to prevent default risk. One of Valeant's largest shareholders, Bill Ackman of Pershing Square lost about $700 million today and over a billion in the last year. Valeant also led the health sector lower today, now the worst performing sector for the year.