Diamonds and Dogs

7/27/15

Teva Pharmaceutical Industries (TEVA)

Teva Pharmaceutical is up 14% today to a new 52-week high after announcing this morning that it would acquire the generics business of Allergan. This deal is for $40.5 billion, giving Allergan $33.75 billion in cash and shares of Teva valued at $6.75 billion. Teva expects a double-digit increase in EPS (non-GAAP) in 2016, and savings of $1.4 billion. The company is finding ways to make its company even more attractive to investors, even during a time of uncertainty.

Republic Airways (RJET)

Republic Airways' share price tumbled 52% after publicizing preliminary results for their second fiscal quarter.  The company stated that they expect earnings of 8 cents to 10 cents a share, 18 cents less than previous analyst estimates. Revenues are also projected to drop $10 million compared to analyst estimates, meaning the company is struggling to keep up with expected rates of growth. Republic Airways has been getting crushed recently, and today's share price of $4.04 is a new 52-week low