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Why Chemours, Zeltiq Aesthetics, and Vale Jumped Today

By Dan Caplinger - Feb 13, 2017 at 4:40PM

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These stocks helped lead the market higher. Find out why.

The stock market maintained its rally on Monday, as investors continued to look ahead to more forward momentum from the federal government in its efforts to make Wall Street-friendly financial and regulatory reforms. The Dow Jones Industrials surged to another all-time high, and other major market benchmarks also climbed more than half a percent to unprecedented levels of their own. Some company-specific news added to the positive sentiment among investors, and Chemours ( CC 5.00% ), Zeltiq Aesthetics ( ZLTQ ), and Vale ( VALE 1.72% ) were among the top performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Chemours gets some help

Chemours stock soared 14% after the chemical specialist and its former parent, DuPont ( DD ), agreed to a mass settlement of lawsuits concerning alleged toxic chemical exposure from a processing plant in West Virginia. The incident occurred before DuPont spun off Chemours, and investors had thought that Chemours would end up being solely liable. Instead, the $670.7 million settlement of about 3,500 outstanding claims will come half from DuPont and half from Chemours, and investors celebrated what they hope will be the chance for Chemours to put the contentious issue behind it. Some fear that similar plants elsewhere could involve hidden liability, but for now, shareholders appear content to have the most obvious problem under control.

Two Chemours representatives at a table at a conference

Image source: Chemours.

Zeltiq gets a buyer

Shares of Zeltiq Aesthetics climbed 13% after Allergan ( AGN ) announced that it would buy the body-contouring specialist for $2.48 billion. Under the terms of the deal, Allergan will pay $56.50 per share in cash for Zeltiq, and the parties expect the acquisition to close in the second half of 2017. Zeltiq CEO Mark Foley was happy with the deal, calling Allergan "ideally suited to realize the maximum commercial potential of the Zeltiq controlled-cooling technology platform." Meanwhile, Allergan expects the deal to be accretive to earnings immediately, and Allergan CEO Brett Saunders said that "by adding the best-in-class body contouring CoolScuplting System to our best-in-class facial aesthetics, plastic surgery, and regenerative medicine offerings, we are creating a world-class aesthetics business." With Allergan's Botox and the new technology that Zeltiq offers, the combined company will undoubtedly have a huge impact on the industry overall.

Vale hangs onto its top executive

Finally, Vale stock gained 8%. The Brazilian mining company benefited from rising markets for copper and other base metals, and that helped Vale gain ground. At the same time, the company also appears to be ready to offer CEO Murilo Ferreira another two years to lead Vale. Private investors have been concerned about the influence of government officials in potentially trying to name a political appointee to the position, which they worry could hurt Vale's business acumen at a critical time for the mining industry in South America. With news that Ferreira might be on board for the foreseeable future, shareholders hope that Vale will be able to move forward and take advantage of improving conditions in commodity markets across the globe.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Vale S.A. Stock Quote
Vale S.A.
$13.62 (1.72%) $0.23
ZELTIQ Aesthetics, Inc. Stock Quote
ZELTIQ Aesthetics, Inc.
The Chemours Company Stock Quote
The Chemours Company
$31.95 (5.00%) $1.52
Allergan plc Stock Quote
Allergan plc
E. I. du Pont de Nemours and Company Stock Quote
E. I. du Pont de Nemours and Company

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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