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Stock Market & Financial Investment News

News Breaks
August 11, 2014
10:27 EDTVSI, GNCGNC rises after upgrade, Vitamin Shoppe seen as potential partner
Shares of health and wellness product retailer GNC Holdings (GNC) are rising in early trading after analysts at Credit Suisse upgraded the stock. Additionally, the research firm said it remains "intrigued" about the potential for a merger between the company and its peer Vitamin Shoppe (VSI). WHAT'S NEW: In a note to investors this morning, Credit Suisse analysts Gary Balter and Andrew Kinder increased their rating on GNC shares to Outperform from Neutral, citing confidence in the company's CEO, Michael Archbold, and the stock's recent underperformance following earnings misses in its last three consecutive quarters. The analysts contend that GNC has a loyal customer base and that some changes to its cost base, store count and franchise terms could lead it to better results. Credit Suisse maintained its $43 price target on shares of GNC. WHAT'S NOTABLE: The analysts also stated that they "remain intrigued" by the potential for a merger between GNC and its rival Vitamin Shoppe. The two companies have a high degree of store overlap and Vitamin Shoppe would get the sports nutrition and manufacturing operations that it is "currently chasing through dilutive investments" by combining with GNC, the analysts wrote. The research note also pointed out that Archbold, who was appointed GNC's CEO just last week, previously served as the Chief Operating Officer and as the Chief Financial Officer of Vitamin Shoppe and that he has a "rich history with private equity funds." PRICE ACTION: Shares of GNC Holdings rose $1.31, or 4.01%, to $33.98 in mid-morning trading, while Vitamin Shoppe gained $1.06, or 2.82%, to $38.61.
News For GNC;VSI From The Last 14 Days
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March 13, 2015
16:42 EDTGNCStocks end week lower amid euro slide, Fed rate hike worries
Stocks finished the week lower as worries about the impact of the euro's fall against the dollar, along with continued anticipation of an upcoming rate hike by the Fed and concerns about deflation, weighed on shares. MACRO NEWS: The euro's slide against the dollar continued, causing investors to worry that the trend could have a significant negative impact on the results of U.S. based, multinational companies... Anticipation of an impending interest rate hike continued to impact the market. On Tuesday, outgoing Dallas Fed President Richard Fisher said the central bank should begin to gradually raise rates before the economy reaches full employment to avoid triggering a recession. On Thursday, stocks rose as investors speculated that weak February retail sales data could cause the central bank to delay raising interest rates... An unexpected decline in the producer price index, which was reported on Friday, may have rekindled fears about deflation taking hold in the U.S., weighing on stocks... In China, the government said that industrial production rose less than expected in the first two months of the year. China's exports were reported to surge 15% in the first two months of the year versus the same period a year earlier, but data also indicated that China's imports sank 20% in the first two months of 2015. COMPANY NEWS: Apple (AAPL) provided additional information about its upcoming Apple Watch at a product launch event. Apple Watch will be available on Friday, April 24 to customers in nine countries, including the U.S., with pre-orders beginning April 10. The lowest priced Apple Watch, the 38 mm Apple Watch Sport, will be priced at $349, while the 18-karat gold Apple Watch Edition will be priced starting at $10,000... Embattled floor retailer Lumber Liquidators (LL) updated investors on the impact of a recent critical report from 60 Minutes. In the nine days following the report, same-store sales fell 12.7% versus the same period a year earlier, it reported. The company added that it was not able to provide full-year guidance until it has more time to gauge the impact of consumers' reaction to the report... GM (GM) settled a potential proxy battle with an investment group led by Harry Wilson by agreeing to return more cash to shareholders... Alcoa (AA) agreed to buy RTI International Metals (RTI), which supplies specialty metals and services for several sectors, including aerospace and defense... Credit Suisse (CS) appointed Tidjane Thiam, who is currently Group Chief Executive of Prudential (PUK), as its new CEO... The shares of several chicken producers fell after a possible case of bird flu was identified in Arkansas. Among the chicken producers that declined were Tyson (TSN), which is based in Arkansas, Pilgrim's Pride (PPC), Sanderson Farms (SAFM), and Hormel (HRL)... GNC Holdings (GNC) sank after New York's Attorney General announced that he and three of his colleagues would further investigate the business practices of the herbal supplement industry. INDEXES: For the week, the Dow was down 0.57% to 17,749.31, the Nasdaq fell 1.12% to 4,871.76, and the S&P 500 dropped 0.87% to 2,053.40.

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