Denim maker True Religion Apparel, Inc.(NASDAQ:TRLG) on sale
The upscale denim maker True Religion is apparently trying to sell itself in an attempt to repair its weak financial form. The struggling company said today that it was exploring strategic options. When companies say that, it usually means that they are considering selling the business.
The company has already hired Guggenheim Securities and the law firm Greenberg Traurig as advisers. The board has also created a special committee to study the possible alternatives. True Religion has already been approached by interested buyers.
Founded in 2002, this company was one of the first to sell high-end tattered jeans costing more than $300. The company had attracted several celebrity customers then. But later new rivals and cheaper alternatives resulted in the brand losing its sheen. It missed its second quarter sales forecast of this year and also lowered its guidance for the rest of the year.
The stock has lost 39 percent this year and was priced at $21.01 which means that the company is valued at $541.8 million. On Wednesday, the shares of the company rose 25 percent to $26.4 in the pre-market trading session.
AuRico Gold Inc (USA)(NYSE:AUQ) up on sale of mine
AuRico Gold Inc has agreed to sell its Ocampo mine in Mexico and some other properties to Minera Frisco SAB for $750 million. Analysts at Canaccord Genuity have upgraded the stock from ‘hold’ to buy, saying that the sale will positively impact the company balance sheet. They say, "The sale should reduce volatility and increase predictability of quarterly results -- more desirable from a capital markets standpoint."
Shares of the company soared 17% to $7.51.