Why Tronox, OSI Systems, and Himax Technologies Slumped Today
Wednesday was a calm day on Wall Street, and major benchmarks were mixed but generally stayed relatively close to the unchanged mark. Without significant news to change investor sentiment, market participants are generally focusing on the ongoing tax reform efforts in Washington, while also steeling themselves for any potential surprise news on the geopolitical or macroeconomic fronts. Even though the path of least resistance for stocks lately has seemed to be up, several individual companies had bad news that sent their share prices lower. Tronox (NYSE: TROX), OSI Systems (NASDAQ: OSIS), and Himax Technologies (NASDAQ: HIMX) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Tronox sank 27% after the pigment specialist found out that the U.S. Federal Trade Commission had filed a lawsuit against it. The maker of titanium dioxide had proposed early this year to purchase the pigment business of privately held Saudi Arabian industry peer Cristal in a deal worth about $1.7 billion, with a status report just three days ago having suggested that the purchase was on track to go forward. Yet late Tuesday, the FTC lawsuit sought a temporary restraining order and preliminary injunction. Tronox immediately responded that it will "vigorously fight" the lawsuit, but investors remain uncertain whether the deal will go through as initially planned.
Image source: Tronox.
Source: Fool.com
