Diamonds and Dogs
Going to the mattresses. Mattress Firm Holding (MFRM) is springing to life up 114% after agreeing to be acquired by Steinhoff for $3.8 billion. South African retailer, Steinhoff is buying the debt-laden, largest U.S. specialty bedding vendor to cut its exposure to its weak home market and gain a big presence in the world's biggest retail market. The deal will create the world's largest mattress distributor and takes the $23 billion South African retailer across the Atlantic for the first time.
2 for 2 or 0 for 2. Bristol Myers Squibb (BMY) is the dog of the day, back to back down 4% after dropping 15% on Friday on heavy, 14 times its usual volume. Buying on the dip last week did not work as investors' reassess Bristol's outlook. The analyst at Credit Suisse was out today saying the failed trial for a lung-cancer treatment was "too significant and surprising for him to maintain his bullish stance." Longer term, the analyst maintains his bullish stance on Bristol-Myers and their drug pipeline expanding sales and profit margins over the coming years.