Wednesday was another volatile session on Wall Street, as major benchmarks swung from positive to negative territory before finishing down close to 1%. Investors remain uncertain about the prospects for economic growth, and although crude oil prices stabilized after two weeks of losses, energy market participants seem nervous about a cyclical downturn in the global economy. Even with those headwinds, though, some stocks climbed on positive news, and Penn National Gaming (NASDAQ:PENN), Canada Goose Holdings (NYSE:GOOS), and Tahoe Resources (NYSE:TAHO) were among the best performers on the day. Here's why they did so well.
Penn National bets on Detroit
Shares of Penn National Gaming climbed 8% after the regional casino company agreed to buy the operations of Greektown Casino-Hotel in Detroit from JACK Entertainment, which is led by Quicken Loans founder Dan Gilbert. The terms of the deal call for Penn National to make an up-front cash payment of $300 million, and it will also enter into a 15-year lease with real estate investment trust Vici Properties, which will pay $700 million to JACK Entertainment for the Greektown property. Investors are excited about the prospects for Greektown, especially as lawmakers in Michigan have looked at legalizing sports betting in the wake of a Supreme Court decision granting such authority to states. Penn National has been successful regionally, and shareholders hope it will succeed in Detroit as well.
Canada Goose warms up
Canada Goose Holdings stock gained 10% in the wake of the company's release of its fiscal second-quarter financial results. The maker of outerwear said sales jumped by more than a third, helping to send adjusted net income higher by nearly 60% on a per-share basis. Canada Goose also boosted its guidance for the remainder of the fiscal year, and CEO Dani Reiss noted that "with such an outstanding first half of the fiscal year, we are in a strong position ahead of our peak selling season." With winter weather already hitting some parts of the U.S., the stars appear to be lining up for Canada Goose.
Tahoe looks golden
Finally, shares of Tahoe Resources soared 49%. The mining company received an acquisition bid from Pan American Silver (NASDAQ:PAAS) that put a value of $1.07 billion on Tahoe based on Tuesday's closing prices. Under the terms of the deal, investors can elect to take either $3.40 in cash or 0.2403 shares of Pan American for every Tahoe share they own, subject to a maximum total cash payout of $275 million from the acquirer. Furthermore, Tahoe shareholders will receive contingent value rights tied to the Escobal mine, which will offer an additional 0.0497 Pan American shares if the mine makes commercial shipments of silver concentrate within the next 10 years. Tahoe has struggled to get permission to operate Escobal for a long time, and there's no guarantee that a combination with Pan American will open the door to future production, which is likely why Pan American shares are falling on the news.