10 Best Recreation Stocks To Watch For 2017

10 Best Recreation Stocks T o Watch For 2017: Safeway Inc.(SWY)

Advisors' Opinion:

• [By Matthew Smith]

  In our article on September 16th (located here) we said we were still bullish the grocers and thought that Safeway (SWY) would continue to be a winner along with the industry. Apparently, we were not alone in that thinking as the company announced yesterday that they were putting in place a poison pill which will be good for one year in order to keep anyone from building a stake larger than 10% in the company. The move was prompted by Jana Partners taking a 6.2% stake in the company and the hope of management is that this one-year period will either cool the heels of Jana or allow the two parties to work together rather than going hostile. We personally dislike poison pills, but in this case, it should not be seen as a negative as we doubt anyone was considering assembling a stake at or above that 10% level. Investors cheered the news and sent shares higher by $2.75 (9.74%) to close at $30.99/share on extremely heavy volume of 29.8 million shares.

• [By Shauna O'Brien]

  Shares of Safeway Inc. (SWY) surged on Tuesday morning after announcing that it has adopted a shareholder rights plan to prevent large accumulations of its stock.

  The company has adopted a “poison pill” plan as an anti-takeover precaution after becoming aware of a large accumulation of its common stock.

  Safeway did not indentify the investor that is accumulating the stock, but noted that this plan will help maintain “fair and equal treatment” to all shareholders.

  The plan will dilute the value of the stock by creating more shares, making it difficult for a single investor to acquire large amounts of stock. Shareholders of the company’s common stock as of September 30 will receive one preferred stock purchase right for every share of common stock that they own.

  Safeway shares were up $2.38, or 8.49%, during Tuesday morning t! rading. The stock is up 68% YTD.

• [By Teresa Rivas]

  Safeway (SWY) was up nearly 4% after an upgrade to Outperform at Credit Suisse, which also upgraded lululemon (LULU), sending shares up 1%, and downgraded Under Armour (UA)shares were down 1.6%.

source from Top Stocks For 2015:http://www.topstocksblog.com/10-best-recreation-stocks-to-watch-for-2017.html