Diedrich Coffee (DDRX) all set for a uptrend following the acquisition
November 03, 2009 12:42 PM
Diedrich Coffee (NASDAQ: DDRX), a coffee major in US, has surged in early trades on Tuesday by 26.7% to $25.7, after Diedrich Coffee (DDRX) was acquired in a cash and stock deal. The surge follows despite the fact a brokerage house downgraded Diedrich Coffee (DDRX) stock only on Monday.
The gap-up opening in Diedrich Coffee (DDRX) stock, along with strong volumes, indicates a bullish trend that may follow in Diedrich Coffee (DDRX) stock in days ahead.
California-based coffee company Peet's Coffee & Tea Co. (NASDAQ: PEET) had earlier announced that it will buy high-flying Diedrich Coffee (NASDAQ: DDRX) for $213 million, or $26 per share, in a cash and stock deal. This marks another feat in the consolidation in the coffee and tea sector in US.
