Markets registered a decent performance on Tuesday, with most indexes up just a hair overall by session close.
Pharmaceutical stocks continue to feature prominently in our Top Performer updates, as do oil and mineral extraction stocks like SeaDrill.
The NewsQuantified platform continues to find strong, diverse plays in all types of market environment.
Pharmaceutical development company Inotek dropped over 15% on Tuesday, falling as investors expressed skepticism of a merger and internal restructuring announced by ITEK. Inotek will merge with Rocket Pharmaceuticals Ltd., a US-based gene therapy company.
This merger is a desperation move for ITEK, which also announced it would be reducing its workforce by approximately 60% to a total of 7 full-time employees. While management believed it to be the best move for ultimate shareholder value, investors dropped the stock on heavy volume.
Proving that not all financial restructuring events are negative, SDRL achieved impressive gains, over 36% at the time of this writing, on news that it was declaring bankruptcy as part of a deal with creditors.
SDRL is a deepwater drilling contractor which provides drilling services to the oil and gas industry.
Seadrill will receive $1.06B of new capital under the terms of deal, enabling them to continue paying staff and operating valuable extraction facilities. Investors piled into the stock on the news, convinced that SDRL’s debt burden won’t burden operations.
Inventure Foods enjoyed sharp gains on Tuesday after announcing the sale of its frozen foods division to Oregon Potato Company. SNAK’s former frozen unit most notably includes the Rader Farms and Willamette Valley Fruit Company brands. They received $50 million in the deal.
The capital will most immediately to pay down operating debt. Investors see the sale and financial re-focusing on key brands as a net positive, and bought the stock heavily on news of the sale.
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