Why Crosstex Energy, Horizon Pharma, and WebMD Health Soared Today
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
Stocks got off to a quiet start to the trading week, but Crosstex Energy and its affiliated master limited partnership Crosstex Energy posted huge gains, along with Horizon Pharma and WebMD Health . Let's take a closer look at what made those stocks do so much better than the overall stock market, which closed the day around the unchanged level in the absence of major market-moving news.
For investors in the two Crosstex Energy general-partnership and limited-partnership entities, news that Crosstex would join Devon Energy in creating a new combined set of MLP businesses sent shares soaring. Under the deal, Devon and Crosstex will contribute assets to form the combined businesses, which will have the same general-partner/limited-partner structure that Crosstex currently has. Crosstex general-partnership investors enjoyed a 71% jump in the price of their shares, while Crosstex Energy unitholders saw their investment climb a more modest 33%. After the proposed deal, Crosstex Energy general-partnership shareholders will own 30% of the new general-partnership entity, while Crosstex Energy unitholders will own 40% of the new master-limited partnership's units.
Horizon Pharma gained almost 16% after announcing this morning that its RAYOS delayed-release prednisone tablets would be the subject of two presentations at a rheumatology conference in San Diego later this month. Horizon began its commercial launch of RAYOS earlier this year, and with the two presentations discussing abstracts connected with its use in rheumatoid arthritis patients, the company hopes that the exposure will help it with its marketing efforts.
WebMD Health gained more than 10% as it announced that it would buy out activist Carl Icahn's stake in company. Icahn will receive $177 million for the 5.5 million share position in WebMD Health, working out to $32.08 per share. WebMD Health noted that the transaction won't use up existing share-buyback authorizations, leaving room for it to continue its extensive conventional buyback activity over the past year.
The best way to play energy
Crosstex benefited from the huge interest in pipeline and midstream assets, but it's not the only potentially explosive investment available. One little-known stock holds the key to the explosive profit power of the coming "no choice fuel revolution." Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!
The article Why Crosstex Energy, Horizon Pharma, and WebMD Health Soared Today originally appeared on Fool.com.Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.