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Published March 27, 2008 at 1:58 PM
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Investors are hungry for food and agricultural companies in the current topsy-turvy market. ConAgra Foods Inc. [CAG] fed investors a double-dose of new developments, including strong earnings and a $1.3 billion divestiture to chew on, pushing the stock up nearly 7% in Thursday midday trading. A slew of Deal Stocks including American Express Co. [AXP] and Children's Place Retail Stores Inc. [PLCE] were also active as the markets traded mixed. The Dow is up 9.28, or .07% to 12,432.14, while the Nasdaq is up 13.13, or 0.56% to 2,311.23 in Thursday midday trading. Here's a closer look at the performance of Deal Stocks in midday trading:
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- ConAgra traded up nearly 7% as the company announced it will sell its commodity trading and merchandising operations to an investment group led by Ospraie Special Opportunities fund for about $2.1 billion. Meanwhile, ConAgra beat analyst earnings expectations, reporting net income of $309.1 million, or 63 cents a share, for the quarter ended Feb. 24, compared with $192.6 million, or 38 cents a share, a year earlier. Revenue increased 21% to $3.53 billion. Analysts had expected earnings and revenue to come in at about 41 cents a share and $3.21 billion, respectively, according to Thomson Financial.
- American Express traded up slightly as the credit card company announced it was acquiring General Electric Co.'s commercial credit card and corporate purchasing unit Corporate Payment Services for $1.1 billion in cash.
- Children's Place was trading down as it announced its Hoop Holdings division, which manages the Disney Stores, filed for Chapter 11. The development is likely to cause a fight between the Secaucus, N.J.-based retailer's management and former CEO Ezra Dabah, who wants to buy the company.
- Meanwhile, Ascent Solar Technologies Inc. [ASTI] has jumped nearly 29% as Norsk Hydro ASA raised its ownership stake in the company to roughly 35% at a cost of $28.4 million.
- Gerald Magpily
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