Diamonds and Dogs
Panera Bread (PNRA) is rising. The bakery chain is up 10% to a new high on news the company will explore strategic options including a possible sale after receiving takeover interest. The company now worth $6 billion, is working with advisers to study the options, said the people, who asked not to be named discussing the private process. Potential suitors for Panera could include JAB Holding Co., Starbucks Corp. and Domino's Pizza Inc.
CarMax (KMX) has too many cars. The no-haggle pricing pioneer is down 4% today and down 15% in the last several weeks ahead of earnings this week. Barron's wrote a negative article over the weekend about a glut of used cars and rising default and delinquencies for car loans. CarMax's captive auto-finance unit contributes almost 40% of the company's operating income which could be a problem when earnings are announced later this week.