Traders Market Weekly: Market Combustion, Short Squeeze Meets Fed Pivot

Viewing 15 posts - 1 through 15 (of 62 total)
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  • #68715
    TradersCom
    Keymaster

    Investor Group Launches $5.8 Billion Buyout Bid for Macy’s

    The offer from Arkhouse Management and Brigade Capital Management values the long-time department store chain at $21 per share, The Wall Street Journal reported. The two firms already own some Macy’s (NYSE:M) stock.

    Macy’s (M) closing price of $17.39 on Friday, the offer is a ~21% premium to that close.

    The newspaper said that the offer was made on Dec. 1 and the company’s board has met to discuss it, though there is no word on how the board is leaning.

    Arkhouse and Brigade Capital believe Macy’s (M) is undervalued and are prepared to raise their offer subject to due diligence. They also have the support of an investment bank who has provided a letter on their ability to raise capital to complete the deal.

    Year to date, Macy’s (M) shares are down ~14%.

    In its Q3 financial results released in November, the company beat on the top and bottom lines, and also boosted its sales and EPS guidance for fiscal 2023. Even though it was a beat, revenue declined about 7% compared to the prior-year period.

    https://www.wsj.com/business/deals/investor-group-launches-5-8-billion-buyout-bid-for-macys-441ca24a

    #68716
    TradersCom
    Keymaster

    Cigna $CI and Humana $HUM reportedly scrapped plans to merge after being unable to agree on financial terms, including price via WSJ

    Cigna will instead seek out bolt-on acquisitions and conduct a major stock buyback, according to The Wall Street Journal. The Journal first reported the companies were in merger talks late last month.

    Investors failed to embrace the idea of a merger, with Cigna shares dropping 8% following news of an impending deal and trending lower since. Humana shares have also taken a significant hit.

    The newspaper said Sunday that the proposed merger deal would have had Cigna acquiring Humana in a cash-and-stock deal with a “large” stock component.

    – Cigna Intends to Repurchase at Least $5 Billion of Common Stock by End of First Half of 2024
    “We believe Cigna’s shares are significantly undervalued and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability, and better health outcomes,” said David M. Cordani, Chairman and Chief Executive Officer, The Cigna Group. “As we look at the broader landscape and the strategic opportunities before us, we will remain financially disciplined with a clear focus on executing against our strategy, delivering value for our shareholders, and investing in our future. In light of the current environment, we will consider bolt-on acquisitions aligned with our strategy, as well as value-enhancing divestitures.”

    #68717
    Truman
    Participant

    Equity indices in the Asia-Pacific region began the week on a mostly higher note.

    Japan’s Nikkei: +1.5%, Hong Kong’s Hang Seng: -0.8%,
    China’s Shanghai Composite: +0.7%,
    India’s Sensex: +0.2%,
    South Korea’s Kospi: +0.3%,
    Australia’s ASX All Ordinaries: +0.1%.

    Equities in China and Hong Kong underperformed after China’s CPI for November showed a 0.5% yr/yr decrease, a pace not seen in three years.

    #68718
    Truman
    Participant

    China’s
    November CPI -0.5% m/m (expected -0.1%; last -0.1%); -0.5% yr/yr (expected -0.1%; last -0.2%).
    November PPI -3.0% yr/yr (expected -2.8%; last -2.6%)

    #68719
    Truman
    Participant

    Japan’s
    Q4 BSI Large Manufacturing Conditions 5.7 (expected 5.6; last 5.4). November Machine Tool Orders -13.6% yr/yr (last -20.6%)

    In Japan, there was an effort to moderate the comments that Bank of Japan Governor Ueda made about raising rates.
    Japan’s Prime Minister Kishida is expected to replace his chief cabinet secretary, industry minister, and party policy chief.

    #68720
    Truman
    Participant

    Australia will triple fees for foreigners looking to buy homes.
    J

    #68721
    Truman
    Participant

    South Korea’s exports through the first ten days of December were up 3.3% yr/yr.

    #68722
    Truman
    Participant

    Major European indices are mixed with the U.K.’s FTSE (-0.5%) showing relative weakness.

    STOXX Europe 600: UNCH,
    Germany’s DAX: +0.1%,
    U.K.’s FTSE 100: -0.5%,
    France’s CAC 40: +0.3%,
    Italy’s FTSE MIB: UNCH,
    Spain’s IBEX 35: -0.2%.

    #68723
    Truman
    Participant

    U.K.’s
    Rightmove December House Price Index -1.9% m/m (last -1.7%); -1.1% yr/yr (last -1.3%)

    #68724
    Truman
    Participant

    Germany’s

    German government is looking for ways to plug a EUR17 bln budget gap that resulted from an unfavorable court ruling.
    More than a million public sector workers in Germany reached a deal to have their wages rise by more than 11% over the next two years.

    #68725
    Truman
    Participant

    Russian President Putin will seek reelection in March.

    • This reply was modified 4 months ago by Truman.
    #68727
    Truman
    Participant

    The Cigna Group (CI 293.01, +34.21, +13.2%): announces significant increase to share repurchase program of $10 billion; will consider bolt-on acquisitions; ends talks to acquire Humana; reaffirms FY23 outlook

    Macy’s (M 20.15, +2.76, +15.9%): Investor group offers to purchase Macy’s for $5.8 bln, according to the WSJ

    #68728
    Truman
    Participant

    Boeing (BA 244.35, -0.35, -0.1%): names Stephanie Pope as executive vice president and chief operating officer, effective January 1, 2024

    #68729
    Truman
    Participant

    Sea Limited (SE 35.25, -4.79, -12.0%): down in pre-market following Bloomberg report suggesting TikTok will invest $1.5 bln in a joint venture with GoTo Group

    #68730
    Truman
    Participant

    Occidental Petro (OXY 56.11, -0.36, -0.6%): enters into purchase agreement to acquire Midland-based oil and gas producer CrownRock for approximately $12.0 bln

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