Men’s Wearhouse & Jos. A. Bank
Looks like the suit saga is over. Men’s Wearhouse will buy its smaller rival Jos. A. Bank for around $1.8 billion, ending a months-long takeover battle between the suit retailers. As part of the deal, Jos. A. Bank. agreed to terminate its deal to buy the privately held retailer Eddie Bauer. Shares of both companies were up, Men’s Wearhouse rose almost five percent to $57.14. Shares of Jos. A. Bank rose about four percent to $64.22.
J.C. Penney got an upgrade from Citi, it now rates the retailer a “buy” instead of “neutral.” The firm says it believes the retailer can continue to deliver positive same-store sales as it makes changes like updating its merchandising mix. That sent shares of the retailer up three percent to $8.67.
Dick’s Sporting Goods
Dick’s Sporting Goods fourth quarter profit rose almost seven percent, driven by an increase in sales. The CEO says the company should see double-digit growth this year. Shares rose more than four percent to $56.67.
Fannie Mae & Freddie Mac
Both Fannie Mae and Freddie Mac tumbling after lawmakers released a blueprint for the housing finance reform proposal. The senate banking committee said it would soon release a draft bill that would wind down the government-owned mortgage companies. The bill would replace the financiers with new government reinsurers. Fannie Mae fell 32 percent to $3.95. Shares of Freddie Mac fell about 27 percent to $4.04.
Shares of Plug Power tumbled after Citron Research said the stock is worth about 50 cents a share. The author of the note, Andrew Left, says there are no profits, no unique technologies and the end of government subsidies looms for the fuel cell maker. That sent shares of other high-flying fuel cell companies like Fuel Cell Energy, Ballard Power Systems and UQM Technologies down. Plug Power fell 41.5 percent to $6.03.