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Alexander Shadunsky began his career in business at a young age, when he became a part of the family newspaper business. After a brief stint in retail, he developed an interest in value investing and has been uncovering undervalued opportunities ever since. He is a regular reader of Seeking... More
  • 5 Stocks Posting Gains On Monday 0 comments
    Dec 20, 2011 1:29 PM | about stocks: WINN, CRYP, BWOW, PCRX

    These four stocks managed to post significant gains on Monday despite large losses in the broader market.

    Winn-Dixie Stores (NASDAQ:WINN) jumped 70% after it and BI-LO announced that the companies will merge to create an organization of approximately 690 grocery stores and 63,000 employees in eight states throughout the southeastern United States. Under the terms of the definitive agreement, BI-LO will acquire all of the outstanding shares of Winn-Dixie stock in the merger. Winn-Dixie shareholders will receive $9.50 in cash per share of Winn-Dixie common stock, representing a premium of approximately 75% over the closing price of Winn-Dixie common stock on December 16, 2011.

    A Special Committee of the Winn-Dixie Board of Directors, comprised of eight independent directors, and advised by independent financial and legal advisors, negotiated the transaction and recommended it to the full Board. The full Board unanimously approved the agreement and recommends Winn-Dixie shareholders vote in favor of the transaction.

    CryptoLogic Limited (NASDAQ:CRYP) rose another 5%, after rising 37% on Friday, after it announced that it has agreed in principle the outline terms of a possible recommended all cash offer from Amaya for the acquisition of the entire issued and to be issued share capital of CryptoLogic at $2.50 in cash per common share. On the basis of the Possible Offer the Board of CryptoLogic has agreed to allow Amaya to conduct confirmatory due diligence. This would represent a premium of 52% over the closing share price of $1.64 per common share on NASDAQ on December 14, 2011.

    The discussions with Amaya are at a preliminary stage and the Possible Offer is subject to the satisfaction (or waiver by Amaya) of certain pre-conditions including, inter alia, the satisfactory completion of confirmatory due diligence by Amaya, unanimous recommendation by the Board of CryptoLogic and confirmation by Amaya that it has sufficient funds to complete the offer.

    ChinaCast Education (OTCPK:CAST), a leading post-secondary education and e-learning services provider in China, jumped 6% after it announced that the Audit Committee of its Board of Directors retained FTI Consulting, an independent global advisory firm with extensive expertise in forensic accounting and due diligence, to conduct an independent review of the company's cash balances as of June 30, 2011.

    For no reason other than to counter the bad press a number of Chinese companies has received, the company voluntarily retained FTI to perform an independent cash confirmation. No question or concern has been raised by the company's auditors, audit committee or any other relevant professional related to the company's cash balances.

    FTI independently obtained and reviewed documents which state that as of June 30, 2011, ChinaCast had cash, cash equivalents and term deposits totaling $132.1 million (RMB 845,674,247) held with 29 PRC financial institutions. This total represents 98.5% of the total cash, cash equivalents and term deposit balances reported in the company's form 10-Q for the second quarter ended June 30, 2011. The remaining 1.5% discrepancy is attributable to the termination of the company's University of Petroleum e-learning joint venture.

    Wowjoint Holdings (NASDAQ:BWOW), China 's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, rose 94% after it announced that certain of its executive officers will conduct purchases of the company's stock on the open market.

    Yabin Liu, Chief Executive Officer & Director; Fude Zhang , Chief Technology Officer & Director; and Liguo Liu, Senior Vice President of Marketing will be participating in the purchase plan. Between January 1, 2012 and June 15, 2012 these executives will collectively purchase up to $200,000 worth of shares on the open market, which as of the closing price on December 15, 2011 is approximately 500,000 shares. These purchases will occur each month, with a minimum of 5,000 shares purchased during each month.

    Pacira Pharmaceuticals (NASDAQ:PCRX) rose 2% after it announced the publication of data from a placebo-controlled, pivotal Phase 3 trial of EXPAREL (bupivacaine liposome injectable suspension), a non-opioid local analgesic that was recently approved by the U.S. Food and Drug Administration (FDA) for administration into the surgical site to produce postsurgical analgesia. The results, which demonstrate statistically significantly lower pain scores and decreased opioid requirements for up to 72 hours with EXPAREL, were published in the December print edition of the peer-reviewed journal Diseases of the Colon & Rectum.

    The overall incidence of treatment-emergent adverse events in this study was similar between the EXPAREL and placebo groups, with the majority of adverse events being mild in severity. The most frequently reported treatment-emergent adverse events were anal hemorrhage and painful defecation.

    "The results of this trial demonstrate that EXPAREL provides significant postsurgical pain control with a decreased reliance on opioids and improved patient satisfaction compared to placebo in a soft tissue surgical model," said Stephen R. Gorfine , M.D., lead author of the manuscript and clinical professor of surgery at Mount Sinai Medical Center, New York, NY . "Our study showed that EXPAREL is a useful therapeutic option for postsurgical pain management that may reduce the use of opioids, which are associated with a range of unwanted and potentially severe side effects."

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: WINN, CRYP, BWOW, PCRX
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