Why Mindbody, New Gold, and Acorda Therapeutics Jumped Today
The recent drop in the stock market showed no signs of slowing on Monday, as the Dow Jones Industrial Average declined over 600 points. The holiday-shortened trading session didn't curtail investors' nervousness about the financial markets, and an attempt from Treasury Secretary Steve Mnuchin to reassure market participants about the overall health of the financial system only served to raise more concerns about whether things could get worse. Yet some stocks managed to post gains on good underlying news from their companies. Mindbody (NASDAQ: MB), New Gold (NYSEMKT: NGD), and Acorda Therapeutics (NASDAQ: ACOR) were among the best performers on the day. Here's why they did so well.
Mindbody gets a buyout bid
Shares of Mindbody soared 65% after the company got an offer from a private equity investment company to go private. Vista Equity Partners said it would buy the wellness-based software-as-a-service specialist for $36.50 per share in cash, or $1.9 billion overall. Vista co-founder Brian Sheth explained that "Mindbody's position as the leading technology platform for the fitness, beauty and wellness industries makes it an ideal addition to the Vista family of companies." Although Mindbody has a month to find a better offer if it can, the share price move suggests that investors expect the Vista deal to go through.
Precious metals help New Gold shine
New Gold's stock was higher by 7% on another solid day for precious metals. Gold bullion prices were higher by $12 per ounce to $1,268, while silver prices climbed about 1% to nearly $14.75 per ounce. That's especially good news for New Gold, which is small enough to be highly levered to gold-price movements. New Gold has seen ups and downs lately, with new leadership working hard to come up with a strategic vision for the gold miner. Yet after the sale of a key asset, some shareholders wonder whether New Gold's most important remaining mine will live up to its promise.
Acorda gets approved
Finally, Acorda Therapeutics saw its shares finish 6% higher. The biotech company announced Monday morning that the U.S. Food and Drug Administration had approved its Inbrija treatment for sufferers of Parkinson's disease. CEO Ron Cohen praised the achievement, noting that "today's approval of Inbrija marks a major milestone for both Acorda and the Parkinson's community, for whom we are gratified to have developed this much-needed therapy." The news eliminated some uncertainty about Acorda's future, and investors hope that the new treatment will overcome the sting of having had patents related to another drug invalidated earlier in the year.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Mindbody. The Motley Fool has a disclosure policy.