U.S. markets sank throughout the morning over continuing concern over the Greece crisis and further declines in the price of oil, but then rebounded in late morning to push stock prices higher throughout the rest of the day.
Another worry for Wall Street was the Chinese Shanghai Composite Index, which fell again, this time more than 1.2%. The Hang Seng Index was also down 1%. The Chinese market’s tumble was said to be a factor in the decline of crude oil.
The Dow Jones Industrial Average finished 0.5% higher, while the S&P 500 was a bit stronger, up 0.6% even after falling briefly below its 200-day moving average earlier in the day. The Nasdaq Composite was up 0.1%. Sectors were mixed, with utilities acting particularly strong today.
Mergers and acquisitions have been a powerful force in the market lately, even when the offers are hostile in nature. Pinnacle Entertainment, Inc (NYSE:PNK) and Depomed Inc ( NASDAQ:DEPO) were both recipients of those offers today, and they along with Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) are three of today’s best stocks.
Pinnacle Entertainment, Inc (PNK)
PNK stock rose 5.8% higher today after Gaming and Leisure Properties Inc (NASDAQ:GLPI), a casino REIT, increased its hostile bid for PNK’s real estate assets to $5 billion. The new offer has a value of $47.50, which is a substantial increase from March when GLPI offered $36 a share for a total of $4.1 billion.
GLPI’s initial offer was rejected, but it soon returned with a hostile bid and said it would take the offer to shareholders if PNK refused to discuss the bid. Recently, activist investors have been pressuring PNK to separate its properties into a REIT to create a higher value, and GLPI intends to do just that should it win its bid.
Depomed Inc (DEPO)
Depomed, a pharmaceutical company that specializes in products for pain and other central nervous system conditions, is another firm which benefited from a “hostile suitor” today. DEPO stock blasted up 38% today after Horizon Pharma PLC (NASDAQ:HZNP) made a hostile takeover offer of $29.25 a share in an all-stock deal valued at $1.7 billion. The entire deal is valued by Horizon for approximately $3 billion.
Talks between the two companies began in March, and just like Pinnacle, the proposal was initially rejected in May. Horizon said it was forced to go public after the two sides were unable to reach an accord, saying that DEPO had refused to continue further discussions.
Himax Technologies, Inc. (ADR) (HIMX)
HIMX stock surged 9.6% today after analyst Jay Srivatsa of Chardan Capital Markets, in a note to investors, upgraded HIMX from “sell” to “buy.” The analyst also raised the price target on Himax from $4 to $13.
Himax manufactures microdisplay makers from liquid crystal on silicon. The company was supposed to supply the eyewear for Google Inc (NASDAQ:GOOG, NASDAQ:GOOGL), until Google canceled that agreement in October. HIMX stock fell from $10 a share to $6 a share within a few months.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.