Thursday saw a mixed session on Wall Street, but investors in the Nasdaq Composite (^IXIC 2.02%) were generally happy. The index was up nearly half a percent at 1 p.m. ET, outpacing other major benchmarks as market participants continue to look to technology stocks and other high-growth companies for leadership in an uncertain environment.
A couple of stocks listed on the Nasdaq were particularly good performers Thursday afternoon. Overstock.com (BYON 1.27%) and Sotera Health (SHC 0.71%) both managed to jump more than 15% after both companies scored big wins that opened the door to further gains. Read on to learn more about the good news for each of these companies.
Overstock picks up a bargain
Shares of Overstock.com climbed 17% on Thursday afternoon. The online retailer made a deal with a well-known counterpart in the brick-and-mortar retail space, and it could end up being a big move forward for Overstock.
Home goods retailer Bed Bath & Beyond has been going through bankruptcy proceedings, and part of the process has involved auctioning off its assets in order to generate cash to pay off creditors. Overstock was interested in some of those Bed Bath & Beyond assets, and according to bankruptcy court filings, the e-commerce company submitted a winning bid of $21.5 million. The proposed deal now goes back to the court for potential approval.
Under the deal, Overstock wouldn't gain control of Bed Bath & Beyond's physical store locations. However, it would have access to the bankrupt retailer's mobile platform, which would allow it to keep selling goods online and complement the rest of Overstock's business well. In addition, Overstock would take ownership of intellectual property that Bed Bath & Beyond developed, as well as valuable business data that the e-commerce retailer could use not just in relation to Bed Bath & Beyond but with Overstock's other business segments as well.
It will be interesting to see if Overstock makes overtures toward acquiring the baby goods retail unit of Bed Bath & Beyond, which operates under the Buy Buy Baby brand. Buy Buy Baby has attracted considerable interest and could have a lot of bidders at its auction next week. Meanwhile, Overstock still has work to do to shore up its own core business.
Sotera makes a settlement
Elsewhere, shares of Sotera Health jumped nearly 20%. The healthcare specialist in lab testing and sterilization solutions reached a major milestone in litigation against its Sterigenics subsidiary.
Sotera reported Thursday that it had finalized the opt-in process for those with claims against Sterigenics related to alleged ethylene oxide emissions from an Illinois factory. All but three of the 882 claimants eligible to participate in the settlement opted to do so, and the next step is to get a court order from a Cook County circuit court that will start the 10-day clock for releasing settlement funds.
Under the terms of the settlement hammered out in January, Sterigenics will pay more than $400 million to the plaintiffs. Despite the hefty price tag, the settlement will allow Sotera and its component businesses to move forward without the distraction of litigation hanging over their shoulders.
With the move, Sotera stock has now recovered much of the ground that it lost in the second half of 2022. Most shareholders expect a quick return to profitability after settlement funds are distributed, and that could help the stock gain more upward momentum in the future.
