Diamonds and Dogs
Papa John's (PZZA) on the rise. The pizza restaurateur is trading up 7% as activist hedge fund, Trian Fund Management run by Nelson Peltz may be interested in acquiring a stake in the firm and try and turn around the company. Papa John's has been on a roller coaster ride falling 40% as founder and former CEO John Schnatter was kicked out only to rebound 35% in the las ttwo months. Schnatter who is still the largest shareholder has been trying to get his company back. The Journal said that Peltz met with Schnatter about a potential deal in June. Looks like Schnatter may have found his way back in.
Not a good quarter for PPG (PPG). The Pittsburgh-based coatings giant, PPG is down 7% following earnings and disappointing guidance. PPG said it would be a poor third quarter, citing virtually every concern investors have about the macro environment while cutting its earnings forecast for the third and fourth quarters of this year. Commodity prices are up, Chinese demand is softening, auto inventories are on the rise, and a strong dollar is eating away at foreign sales. Sometimes companies will flag one or two or these as weighing on business, but PPG's third quarter was hampered by all four. One expects it isn't the only company dealing with these stresses.