My Take: Could this be a pivot point for NOW? Shares are down nearly 50% over the past year, but NOW's strong quarterly report could help the company reverse course. However, it's still expensive with a 370.27 P/E ratio.
Altra Industrial Motion Corp [AIMC] - Last Close: $40.25
Altra Industrial is skyrocketing on major M&A news.
The mechanical component manufacturer announced today that it has agreed to be acquired by Regal Rexnord Corp. in an all-cash deal worth $5.0 billion.
Under the terms of the deal, AIMC shareholders will receive $62 in cash for each share of common stock in their possession, a 54% premium to the stock's Wednesday closing price.
Altra's board has approved the deal, and the acquisition is expected to close in the first half of 2023, subject to shareholder approval and customary closing conditions.
When the deal closes, Altra shares will no longer be available on public markets.
AIMC is one of the morning's top performers with a 48.3% gain.
My Take: As is usually the case with these buyout rallies, upside is limited now that share prices have run up to around $60 apiece. Hard to justify holding a stock and hoping for a merger for a tiny gain like that. At this point, the train has more or less left the station.
AgroFresh Solutions [AGFS] - Last Close: $1.57
AgroFresh is soaring after a regulatory filing that captured the market's attention.
The agricultural services stock jumped after a Form 8-K filing revealed the company is attempting to put together a lucrative buyout deal.
According to the filing, a special committee formed to explore sales and strategic alternatives for AgroFresh has found a potential buyer in Paine Schwartz.
Under the terms of the proposal, Paine Schwartz would acquire all outstanding shares of the company for $3 apiece, representing a 91% premium to AGFS Wednesday closing price.
The two companies haven't reached a definitive agreement yet, but the report is getting a warm reception among investors.
AGFS is up 45.2% on elevated premarket trading volume.
My Take: This buyout deal isn't certain yet, so there's still some upside left in this trade if the deal goes through. Right now, shares are at about $2.30, so there could still be a 30% upside from this price point if the deal goes through. However, be aware that share prices could plummet if the deal falls through.
Kazia Therapeutics [KZIA] - Last Close: $1.015
Kazia Therapeutics is moving higher on upbeat drug data.
The oncology-focused biotech announced preclinical data that showed its paxalisib monotherapy is active against a range of metastatic melanoma cancers.
The research collaboration with the huntsman Cancer Institute at the University of Utah showed paxalisib showed substantial activity as a monotherapy and was even more active when combined with certain inhibitors.
"This is among the most promising single agent data that we have seen in our research," commented Professor Sheri Holmen, lead investigator on the project.
News of the promising preclinical research is boosting shares of KZIA. It's up 21.1% ahead of today's opening bell.
My Take: This is very preliminary drug data, so I would proceed with caution here. Biotech stocks are notoriously volatile, and there's no telling if this therapy will make it to market yet.
