uploads///Plum Creek Timber versus Weyerhaeuser

Weyerhaeuser on Its Way to Acquire Plum Creek Timber



The leaders

Stocks at the top of the SPDR S&P 500 ETF (SPY) on November 9 were Plum Creek Timber (PCL), Apache (APA), and Norfolk Southern (NSC). These stocks gained 17.3%, 13.2%, and 11.0%, respectively, on the day.

The news of a merger deal between Plum Creek Timber (PCL) and Weyerhaeuser (WY) surged the stocks of PCL on November 9. According to the deal, PCL will be acquired by WY for $8.4 billion. Further, PCL is offered 1.6 shares of WY for every single share of PCL. The deal is anticipated to be completed by the first half of 2016.

The graph above shows the performances of PCL and WY since October 2015.

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Moving averages, recommendations

PCL traded around $47.3 on November 9, crossing its respective 100-day, 50-day, and 20-day moving averages. Meanwhile, the analyst price target for the stock was set at $44.7. The trailing-five-day return of the stock as of November 9 was 13.9%. The trading volume of the stock surged to 13,632,077 stocks on the day from 1,122,183 stocks on the previous day.

The stock earned five “buy,” five “hold,” and no “sell” recommendations. S&P has rated the stock as “BBB” while Moody’s outlook was “Stable” for the security.

Apache (APA) rose on the day after the company rejected the news of a probable takeover bid.

Stocks at the bottom

Stocks at the bottom of the SPY ETF on November 9 were Mallinckrodt (MNK), Priceline Group (PCLN), and Wynn Resorts (WYNN). These stocks yielded -17.0%, -9.6%, and -7.9%, respectively, on the day.

Mallinckrodt (MNK) fell on November 9 after the online investment newsletter, Citron Research, tweeted allegations concerning MNK that it—Citron—had made previously on Valeant Pharmaceuticals (VRX). Citron warned through its tweet that Mallinckrodt (MNK) might have issues with its accounting practices and sales claims.

Priceline Group (PCLN) reported better-than-expected earnings for the third quarter. However, it lowered its guidance for the next quarter. Analysts at Evercore ISI had lowered the price target citing soft growth.


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