Diamonds and Dogs
The Baker Brothers are making some dough. Drug company, Vitae Pharma (VTAE) is up 158% after agreeing to be acquired by Allergan (AGN) for $639 million or $21 per share in cash. Vitae's drug VTP-38543, a topical treatment for dermatitis, and its VTP-43742, an oral therapy for psoriasis, will expand Allergan's dermatology pipeline. Hedge fund Baker Bros, owned a big stake in Vitae. Turns out the Baker Bros also owned five other drug companies that got bought out recently. Sounds like they know how to make money.
Cracker Barrel showing some cracks. Cracker Barrel Old Country Store (CBRL) is down 4% today and down 10% in the last three weeks. The company missed earnings estimates last night and guided lower for the current quarter. Cracker Barrel is now expecting earnings in the range of $1.75 to $1.85 a share verse consensus estimates of $1.93 per share. It has not been a good year for restauranteurs or retailers in general.