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The stock of Wendy's International Inc. (NYSE: WEN) was looking pretty poor yesterday morning. The proposed buyout from Triarc Companies Inc. (NYSE: TRY), the investment arm of billionaire Norman Peltz, at the time valued Wendy's at a mere $26.775 a share in a deal that would marry the Arby's and Wendy's brands. Shares even traded down under $25 because of the discounting.

But today's action -- the stock is up over $27.50, a 4% gain -- is looking like a story of "Good News, Bad News, Good News" for investors. This was a huge score for Mr. Peltz and Triarc. The bad news is that Wendy's board of directors folded like the proverbial cheap suit, particularly for shareholders who have been buried since $30 to $40. But the other good news is that if you believe in Nelson Peltz & Friends, you are getting this as an all stock exchange and therefore you are getting to participate in the upside if they get this ship turned around.

I really expected the board of directors to hold out for $30 (you can read the full op-ed piece from right when the deal was announced). If Peltz would have gotten the Trian Acquisition I Corp. (AMEX: TUX) special purpose acquisition company (SPAC) involved, that $30 level could have probably been reached.

One thing that may also be helping shares today is a Goldman Sachs' analyst upgrade, although that was from a "Sell" to a "Neutral" so it shouldn't be anything to get excited about.

Shares of Wendy's are now up 4% at $27.50 and Triarc Companies Inc. (NYSE: TRY) are at $6.66, a nearly 3% gain from yesterday's close. At $6.66 and based on a 4.25 share conversion offer, that would value Wendy's at $28.305 as an end-game pricing. Wall Street is voting positively for Triarc so far, particularly as its shares had been under-performing by so much.

Jon Ogg is an editor and producer of the "Special Situation Investing" newsletter for 247WallSt.com.

Wendy's International Inc. (NYSE: WEN) looks like it is about to have activists coming right up under its floors. Trian, Triarc Companies (NYSE: TRY), Nelson Peltz, Peter May, and others have all sent a letter according to an SEC Filing.

The activist group saw two separate proposals rejected within 24-hours, and it looks like the group is going to go after shareholders directly to garner up support. Wendy's is set to report earnings on April 25, and the activists have essentially said "don't do anything before that date."

What is interesting about this activist situation is that the valuations in the past were ugly and no one would have been able to "make shinola out of you know what" with where the stock was trading. It almost had a phantom premium associated with it merely because of activists and merely because it was "troubled" and in need of being fixed. But a serious pullback in a stock changes things.

So far, the board has been able to rebuff all outside efforts. There are many provisions the company has to defend itself, but things might be heating up quite a bit here.

Continue reading more detailed analysis at 247WallSt.com.

With economic worries sending luxury goods makers like Coach Inc. (NYSE: COH) and Tiffany & Co. (NYSE: TIF) well off their highs, at least one super-investor who isn't afraid to go against the conventional wisdom is taking notice.

Nelson Peltz and his Trian funds have upped their stake in Tiffany from 5.6% to 7.9% amid continued weakness in the company's share price -- the stock is already down 20% year to date.

According to the Wall Street Journal [subscription], Peltz has previously said he isn't seeking a seat on the company's board, but wouldn't rule out the possibility of taking an activist stance somewhere down the road. Another big drop could prod him to step in and try to make something happen.

Tiffany recently reported a weak holiday sales period, a strong indication that the economic malaise that started in subprime may be carrying over to more upscale consumers. In recent years, Tiffany's and other luxury goods makers have seen their markets expand to include more luxury aspirational customers. Dependence on less wealthy consumers for sales growth may be making the luxury goods sector less immune to economic woes than it has been historically.