Why Are These Stocks Surging?

Windstream Holdings, Inc. (NASDAQ:WIN), a leading provider of network communications, is up 5.8% after the company announced it will sell its data center business to TierPoint for $575 million in cash. Windstream’s data center business generated $30.5 million in revenue and $10.2 million in adjusted OIBDA in the 3 months ended in June 30, 2015. The two companies will cross promote each other’s products so Windstream can ‘focus capital on its core telecom offerings while continuing to offer traditional data center services to enterprise customers across a broader data center footprint’. Windstream stock is up as investors like the increased focus and the sale price.

SanDisk Corporation (NASDAQ:SNDK) is up 3.76% after BusinessKorea published a report stating ‘there is fierce competition between global semiconductor companies to buy SanDisk’. According to the article, although Samsung has reached the conclusion that buying SanDisk won’t generate enough profits, ‘Samsung is keeping a close eye on the unfolding situation’. There has been a huge wave of M&A in the computer parts industry as the era of cheap debt comes to an end and companies merge to survive the personal computer’s secular decline. The news of ‘fierce competition’ for the company is always good. The more potential buyers or ‘companies keeping an eye on the situation’, the better.

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