Why Chiquita Brands, McClatchy, and Intercept Pharmaceuticals Jumped Today

The market originally had the Monday blues, but broad-market indexes regained almost all of their losses by the end of the day. Find out more about why these three stocks soared.

Mar 10, 2014 at 8:00PM
Longview

On Monday, investors originally went into a near-panic following the release of troubling economic data from China indicating an unexpected plunge in exports. Yet over the course of the day, the market clawed back all but a small fraction of its losses, with the S&P 500 closing down just 0.05% on the day. The best performing stocks in the market included Chiquita Brands International (NYSE:CQB), McClatchy (NYSE:MNI), and Intercept Pharmaceuticals (NASDAQ:ICPT), which climbed for a variety of different reasons today.

Chiquita Brands jumped 11% after the banana giant agreed to merge with Irish produce giant Fyffes to create what will become the largest banana producer in the world. If approved, the merger of near-equals will leave current Chiquita shareholders owning just under 51% of the combined ChiquitaFyffes, and the companies expect to save $40 million per year from the combination. The deal will be bad news for privately held Dole Food, which would lose its No. 1 status in the banana market if the merger goes through, but given that Fyffes shares soared 42% on the London Stock Exchange, it's clear that shareholders of both companies are pleased with the deal. The transaction also effectively transfers Charlotte-based Chiquita's domicile to Ireland, with attendant benefits that have led many other U.S. companies to go across the Atlantic.

McClatchy rose 14% on reports that it and other companies that co-own the Cars.com website are looking to sell the e-commerce site, hoping to get $3 billion for the business. Gannett (NYSE:GCI) and several other newspaper companies own Cars.com through a joint venture, and Gannett rose 2% today. But McClatchy has a much smaller market capitalization than Gannett, and so a prospective deal -- and the money that would come from it -- would make a much bigger difference to its shareholders.

Intercept gained 8%. Despite a lack of specific news affecting the promising biotech, investors continue to watch closely for signs of the potential of Intercept's obeticholic-acid therapy for primary biliary cirrhosis and non-alcoholic steatohepatitis. With analysts suggesting annual sales of $3 billion are possible even if a successful drug only gets used in a limited subset of NASH cases, Intercept has plenty of potential. But nervous investors have also pointed to the huge rise in biotech stocks more generally as being a troubling sign of what could prove to be a short-lived trip to the stock market stratosphere if things don't go perfectly for Intercept.

Grow your portfolio faster than a banana
Even the most bullish investors would tell you that it simply can't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers