Top Consumer Stocks
Consumer stocks were higher Monday, with shares of consumer
staples companies in the S&P 500 climbing 0.7%. Shares of
consumer discretionary firms in the S&P 500 were ahead
In company news, shares of The Goodyear Tire & Rubber
) were higher Monday after the company announced a mandatory
conversion of all 10 million of its 5.875% preferred stock on
Each preferred share will convert into 2.7574 shares of GT
common stock, which was based on GT's volume-weighted average price
over the past 20 trading sessions. The company also will pay a
dividend of $0.7344 for each of the preferred shares just prior to
The company issued the preferred stock three years ago Monday,
priced at $50 per share, raising $500 million. The 2.7574
conversion ratio was the lowest possible price available under
terms of the March 2011 deal, with the 27.5 million new shares
diluting common shareholders' positions by around 11.1%, based on
GT's 248 million shares currently outstanding.
GT shares were up 2.9% at $26.70 each in recent trade, just off
their session high of $26.75 a share. The stock has a 52-week range
of $11.83 to $28.32 a share.
In other sector news,
(+) BIG, (+2.5%) Raised to Buy from Hold with a $45 price target
at KeyBanc, which said the discount retailer was beginning to gain
traction with its turnaround initiatives.
(-) SWY, (-0.4%) Ends "go-shop" period, saying none of the other
parties that previously expressed an interest are now interested in
pursuing a deal. Grocery chain will now move forward with the $7.64
bln buyout offer led by Cerberus Capital.