Why Allergan, Big Lots, and Cheniere Energy Jumped Today

On a day when the Dow and S&P both hit new record highs, these three stocks were some of the strongest performers. Find out more about what made them soar.

May 30, 2014 at 8:05PM

For most of Friday's session, stocks languished in negative territory, as investors remained uncertain about whether the market could build on gains from earlier in the week. Yet by the close, both the S&P 500 and the Dow had hit new all-time records -- and despite nervousness among some market participants, many believe that stocks could continue to climb into the summer. Allergan (NYSE:AGN), Big Lots (NYSE:BIG), and Cheniere Energy (NYSEMKT:LNG) were among the best performers in the stock market Friday.


Allergan gained almost 6% as the Botox maker's acquisition saga continued. Pershing Square's Bill Ackman has been pushing Valeant Pharmaceuticals to boost its takeover bid for Allergan, and today Valeant responded by increasing the amount of cash that it would pay to $72 per Allergan share, plus 0.83 shares of Valeant stock. The new deal adds $13.70 per share in cash to the former proposed deal. It's interesting that Allergan stock didn't rise by nearly that much, reflecting the previously held belief among Allergan shareholders that a better deal would be forthcoming. Even with the increases, many believe that Valeant will have to pay even more in order to get Allergan to agree to the deal without a proxy fight.

Big Lots jumped 13%, avoiding the fate of many of its retail peers by posting strong earnings results in its first-quarter report. Income from continuing operations beat the top end of the company's prior guidance range by a nickel per share, and same-store sales rose 0.9%. Big Lots also expects this quarter's results to be reasonably strong, with comps in the 1% to 3% range, and raised its full-year estimates by $0.10 to $0.15 per share. Investors applauded the apparent success of Big Lots' decision to restructure its business by winding up its operations in Canada and ending its wholesale business. Given the struggles that most retailers have had in the first quarter, Big Lots' report sent the stock to levels it hadn't seen since 2012.

Cheniere Sabine Pass facility. Source: Cheniere Energy.

Cheniere Energy picked up 9% after the natural gas exporter signed a 20-year deal to provide liquefied natural gas to Spanish utility Iberdrola. The deal will further help make Cheniere's Corpus Christi-based LNG project a reality, with construction expected to begin early next year and deliveries expected as early as 2018. Iberdrola represents the first customer to sign onto the proposed Train 2 of the project, with initial purchases of 0.4 million metric tons set to double to 0.8 million once Train 2 deliveries begin in 2019. Although the permitting and construction process for Cheniere has been long, the willingness of foreign customers to sign on to LNG projects bodes well for Cheniere's future success.

3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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