DPLO - Here's Why Diplomat Pharmacy Jumped Higher Today
Shares of Diplomat Pharmacy (NYSE: DPLO) are up 10.5% at 12:34 p.m. EST on no apparent news as investors continue to digest the value of a company with an uncertain future.
Earlier this month, Diplomat Pharmacy said it lost a big account and was in danger of being foreclosed on by its creditors. A few days later, we saw some volatility with the stock bouncing back, which apparently is continuing today.
Amazingly, shares have recovered more than half of the value they lost on the one-day 50% drop after the company warned about the possibility of a bankruptcy. Apparently investors are feeling a little more confident that management will be able to renegotiate the covenants that are part of its credit agreements to avoid foreclosure. The company is also looking to sell all or some of its assets, so investors may also have higher confidence that Diplomat Pharmacy can find a buyer.