BGU - AGN addendum

Published : November 18 2014 at 16:26 ET

ACT bought out AGN which caused yesterday's gap up. Both companies are mega-caps that have performed well. ACT obeys its 200dma so is a slower moving stock but still has been in a fairly clean uptrend since 2012. AGN has been in a somewhat sloppier uptrend but had the sharpest increase in earnings in the last quarter at 45% compared to the same quarter a year ago. The market views the merger as positive based on the last two days' price action, so the question is whether the two companies together can create a synergy that helps keep the current price action clean and strong. 

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