Diamonds and Dogs
8/28/12
Polypore International Inc. (PPO)Polypore International dipped lower today down 7.58% to $34.76. The filtration product maker saw its shares stumble after General Motors announced it would temporarily halt production of the Chevrolet Volt. Polypore makes the filtration system for the Volt's lithium battery separator. The company sells its separation product to a battery maker who in turn sells it to GM for the Volt. GM plans to idle the Michigan assembly plant, which makes the Chevrolet Volt for four weeks. Brian Drab, an analyst with William Blair, said, "We view this news as an incremental near-term negative for Polypore, given investors are keenly focused on the success of the Volt due to its high separator content." Polypore investors are taking a hit today watching the stock trade near its 52-week low.
Magellan Petroleum Corporation (MPET)
Magellan Petroleum is navigating its way upward today, up 29.61% at $1.27. The company saw its shares bounce higher after news was released that Stratex Oil & Gas offered to purchase Magellan for $124 million in cash. The bid equates to around $2.30 per share, which is 137 percent premium to the stocks Friday close. Stratex is fully committed to pursuing this transaction, and has secured committed financing to complete the cash portion of the offer. Management believes the value of Magellan's assets has not been realized in the public markets. The bounce today helped Magellan to trade in the middle of its 52-week range, and showed its largest gain in over a year.
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