Diamonds and Dogs

12/17/12

Cabela's Incorporated (CAB)

Cabela's Incorporated is in the red today, down 5.10% at $41.69. The outdoor retailer saw its shares drop today following expected tightening of gun laws. After the recent shootings in Oregon and Connecticut, there will be meaningful talks regarding current gun laws. President Obama along with many state governors have made statements discussing a need for stricter gun laws, especially regarding military-spec assault rifles. Cabela's unfortunately is feeling the repercussions of the terrible events that have occurred. Investors feel that stricter gun laws will hurt Cabela's sales and bottom line. Cabela's is still nearly $20.00 above its 52-week low.

Compuware Corporation (CPWR)

Compuware is exploding upward today, up 13.33% at $10.80. The software company saw its shares jump after news of a possible buyout was released. Investment firm, Elliott Management announced this morning that it offered Compuware $11.00 per share in cash to buy them out. Elliott Management already has an 8% stake in Compuware and clearly wants to add to that position. This offer represents 25% premium over the Company's unaffected market value as of the date Elliott filed its Schedule 13D last month. This price also represents a 21% premium over the Company's 30-day volume-weighted average price. Compuware hit a new 52-week high today.

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