Diamonds and Dogs

9/20/16

A seven bagger in one day. Drug company, Tobira Therapeutics (TBRA) is up 700% in one day thanks to a buyout offer from Allergan for around $600M plus up to around $1.1B in contingent value rights payments based on milestones, for a total of around $1.7B for a Phase III-ready NASH (liver disease) drug. Not a bad return for one day.

A sale at HNI Corp. The office furniture and hearth business company, HNI Corp is down 22% after lowering third quarter guidance to a range of $0.74 to $0.79 compared to its previous guidance of $0.90 to $0.95 cents per share. Office furniture business sales will be lower than expected due to overall soft demand and subdued small business confidence while hearth sales will be lower due to slower than expected housing starts and continued decline in pellet appliances. Low rates don't seem to be helping HNI much.