No love for Novan as shares collapse 78%
A bank buyout that will cost North Carolina the headquarters of its most successful community bank of recent years and a stunning clinical trials disappointment sparked major moves in Carolinas-based stocks for the week ending Jan. 27. The best performing stocks in the Capital Investment Cos./Nottingham Index of public companies:
Insteel Industries (IIIN) 13% – Steel wire company’s shares have been volatile over the last month on hopes of benefits for more spending on roads and bridges.
Park Sterling (PSTB) 12% – Sale of rival BNC Bancorp could make the Charlotte-based regional bank more attractive to suitors. First Bancorp, another big regional that is based in Southern Pines, gained 6%.
BNC Bancorp (BNCN) 9% – Tennessee’s Pinnacle Financial Partners is buying High Point-based regional bank for $1.9 billion. BNC CEO Rick Callicutt will run Pinnacle’s business in Carolinas and Virginia.
The weakest performers:
Novan NOVN (-78%) – Morrisville-based drug company reported disappointing results in a trial of its acne treatment. Former Glaxo Wellcome CEO Robert Ingram is chairman.
World Acceptance (WRLD) (-18%) – Earnings of $9.6 million were much lower than analyst expectations. Shares of Greenville, S.C.-based consumer-finance company have declined 24% in the last month.
Unifi UFI (-8%) – Greensboro-based textile company said net income declined 33% from a year earlier. The company also sold its 60% stake in Repreve Renewables at a $1.66 million loss.