Diamonds and Dogs

10/10/12

ESCO Technologies Inc. (ESE)

ESCO Technologies had a power line fall down today, down 7.84% at $34.66. The utility, industrial, and aerospace production company saw its shares fall after news that the company would close one of its plants. In an attempt to consolidate test segment facilities from four to three, ESCO announced that it will close a facility in Glendale Heights, Illinois, outside Chicago. The consolidation is expected to yield partial-year cost savings in 2013 of about $1 million, and annual savings of $3 million starting in 2014. To make today worse for ESCO, management said that it expects its fiscal 2012 pretax earnings to be about $8.7 million less than previously expected. The company is still around $10 above its 52-week high; however with a few more days like today, ESCO might be setting new lows.

True Religion Apparel Inc. (TRLG)

True Religion Apparel strutted its stuff today, up 22.37% at $25.71. The clothing retailer saw its shares dress in green today after the company noted that it was exploring strategic alternatives, which could include a sale. True Religion management said that it has hired Guggenheim Securities as its financial advisor and Greenberg Traurig as its legal counsel to help evaluate third party interest in the company. The deal could be imperative to unlocking the growth potential of the company, which has only really been able to grow their denim business. The bounce today helped True Religion get off of their 52-week low.

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