3 Stocks Move Heavily in Premarket Monday

Dr Pepper Snapple, Abeona Therapeutics up, Changyou.com down

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Jan 29, 2018
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In Monday premarket trading, Dr. Pepper Snapple Group Inc. (DPS, Financial) skyrocketed on news that Keurig Green Mountain, which is a privately held company, will buy the company. Dr. Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13% of the combined company, Keurig Dr. Pepper, a giant with $11 billion in annual sales.

Keurig was acquired by Europe's JAB Holding company in 2016 in partnership with Mondelez International. JAB will be the major shareholder, and Mondelez will hold a stake of about 13-14%.

The deal is expected to close in the second trimester and still needs to be approved by shareholders of Dr. Pepper Snapple.

Another stock in the green is Abeona Therapeutics Inc. (ABEO, Financial). Shares rose about 5% in premarket trading. The company is a leading clinical-stage biopharma company focused on developing novel cell and gene therapies for life-threatening rare genetic diseases. Shares moved after the company's cell therapy received a Regenerative Medicine Advanced Therapy designation from the Food and Drug Administration.

Timothy J. Miller, Ph.D., president and CEO of the company, said, "EB-101 is an autologous gene-corrected cell therapy approach that utilizes a patient`s own cells and genetically re-engineers them to produce the missing collagen protein, which helps hold skin on to the body. This reduces the number of painful blisters caused by injury and has demonstrated improved wound healing in our Phase 1/2 clinical trial for over two years."Â

Shares of Changyou.com Ltd. (CYOU, Financial) lost 10% pre-market after the company reported fourth quarter earnings per share of 64 cents on revenue of $144.46 million, with both figures falling short of expectations by 17 cents in earnings and $13.64 million in revenue. Revenue rose by 10.7% year-over-year; however, it was lower than the company´s expectations. The main reasons were that Legacy TLBB Mobile underperformed and also the launch of the new mobile game "Dao Jian Dou Shen Zhuan" was delayed.

Looking ahead, the company expects a seasonal downturn for its TLBB PC game due to the Chinese New Year holidays and for revenue from Legacy TLBB Mobile to decline, but not as quickly as during the fourth trimester.

Disclosure: The author holds no position in any stocks mentioned.