2 Hot Stocks in Focus: Sanofi, (NYSE:SNY), The Kroger, (NYSE:KR)

Sanofi SA (ADR) (NYSE:SNY) lost -0.27% and closed in the last trading session at $38.97. The company’s price range for the trading day was $38.62 to $39.14.  The 52-Week range of the stock is $37.63 – $54.98. The company’s Market capitalization is $104.83B with the total Outstanding Shares of 1.30B. The stock has a one-year performance down -24.02% and a negative weekly performance at -5.18%. May 6 - Sanofi’s most recent attempt to pressure Medivation into takeover talks looks pretty weak. The French pharma group is trying a bear-hug strategy to force the U.S. oncology specialist to the table. But this is a battle where financial muscle will probably count more than tactical strong-arming.

On May 5, Sanofi published an open letter to Medivation’s board saying it had been speaking to the U.S. target’s top shareholders and believed there was “overwhelming support” for a transaction. Sanofi warned it could go hostile if Medivation doesn’t start talking. That was the stick. The carrot was the suggestion that Sanofi could raise its $52.50 per share proposal if Medivation entered negotiations and demonstrated why it was worth more.

Such tactics might have made Medivation engage if it was a troubled company and Sanofi’s bid was the only realistic chance of its shares reaching the level being dangled. But, as Gadfly has argued, Medivation can easily sit tight. It has a major drug on the market. And there is a host of Sanofi’s big-pharma peers who might like to buy it too. Analysts think it’s worth about $70 a share to some of them. So while Medivation’s stockholders may well be open to a deal, they’ll only do it at the right price.

Maybe Sanofi will follow through on its threat and go hostile but that would be very risky. It wouldn’t have done due diligence, so couldn’t offer too high a price. That in turn would create an opening for a white-knight counter-bid. Bloomberg Reports

The Kroger Co (NYSE:KR) ended at $34.55 with decline of -1.03%.In the time frame of the last one month, the share-price has decline almost -9.48%. The Stock’s RSI is at 31.83 with the beta Value of 0.77. The Earnings per Share of the stock is $2.06. The Company has the volatility of 2.08% for the month and 1.82% for the week after ending the last trading session.


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