U.S. markets began the week with a whimper, reacting negatively to overnight weakness in China, another drop in the price of oil and the uncertainty of what the Federal Reserve will do when they meet this week.
In addition, both Brent and Crude oil prices fell Monday morning, the former by 3.5% and the latter by 1.2%. However, several energy stocks, such as Transocean LTD (NYSE:RIG) and Chesapeake Energy Corporation (NYSE:CHK) were moving higher nonetheless.
The Dow Jones Industrial Average and Nasdaq Composite were both down 0.3%, while the S&P 500 Index was off 0.4%. All sectors except utilities were in the minus column today.
Possible and real acquisitions were moving a few stocks higher today, with Chico’s FAS, Inc. (NYSE:CHS) and Solera Holdings Inc (NYSE:SLH) being beneficiaries of that phenomenon. Meanwhile, Collegium Pharmaceutical Inc (NASDAQ:COLL) had a big announcement to round out three of today’s best stocks.
Chico’s FAS, Inc. (CHS)
CHS stock surged 10% higher today amid speculation that the Fort Myers, FL-based woman’s clothing retailer may soon be acquired by a private equity firm.
Bloomberg reported that Chico’s was approached by Sycamore Partners with an offer, the second time they have done so. In February, 2015 a similar offer made CHS stock spike higher as well.
Chico’s has been conferring with Peter J. Solomon, an investment bank, while Sycamore is trying to line up financing. It sounds like both sides want to get this deal done.
Solera Holdings Inc (SLH)
While the acquisition news of the aforementioned Chico’s is still speculative, Solera stock shot 8% higher after they were actually acquired by an affiliate of Vista Equity Partners in a deal worth approximately $6.5 billion, including the company’s debt.
Under the terms of the deal, the new company will buy all outstanding shares of SLH stock for $55.85 each, nearly a 13% premium to the closing share price of this past Friday.
The deal is expected to be finalized during the first quarter of 2016.
Collegium Pharmaceutical Inc (COLL)
There was no pain but plenty of gain for Collegium Pharmaceuticals today, after winning the backing of two Food and Drug Administration panels for a new therapy aimed at reducing severe pain where 24-hour long-term opiod treatment is required.
The new treatment, Xtampza ER, is an extended-release Oxycodone capsule that aims to reduce or eliminate patient abuse, a longstanding problem of codeine-based pain pills.
It isn’t a done deal yet, but the FDA will take the recommendations into account while continuing to review the data on the drug.
COLL stock surged 38% on the news and was even halted for awhile this morning.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.