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Acquisitions Mergers

ATER

HOG

POWW

VSCO

WOR

As of Feb. 12, 2024, five consumer discretionary stocks are considered overbought based on their RSI values, indicating potential short-term performance concerns. Aterian, AMMO, Harley-Davidson, Victoria's Secret, and Worthington Enterprises have shown significant price gains recently, but their high RSI values suggest they may be due for a correction.

Portfolio Pulse from Avi Kapoor

February 12, 2024 | 1:31 pm

CBAY

GILD

Gilead Sciences, Inc. (GILD) is set to acquire CymaBay Therapeutics, Inc. (CBAY) for $32.50 per share, totaling $4.3 billion. This acquisition adds seladelpar, a promising treatment for primary biliary cholangitis (PBC), to Gilead's liver disease portfolio. Seladelpar has received FDA priority review with an anticipated approval in Q3 2024. The transaction, expected to close in Q1 2024, is seen as neutral to Gilead's 2025 earnings and significantly accretive thereafter.

Portfolio Pulse from Benzinga Newsdesk

February 12, 2024 | 1:31 pm

NVDA

Nvidia Corp's CEO, Jensen Huang, emphasized the importance of countries developing their own AI infrastructure to harness economic benefits and preserve cultural integrity. He highlighted Nvidia's role in democratizing AI access through advancements in AI computing efficiency, which has contributed to Nvidia's valuation soaring to $1.73 trillion. Huang criticized the fearmongering around AI and argued that advances in computing technology will reduce the costs associated with AI development, challenging the notion that $7 trillion is necessary for semiconductor initiatives. Nvidia is expanding its reach by launching a new division focused on designing custom chips for cloud computing, positioning itself against competitors like Broadcom and Marvell Technology.

Portfolio Pulse from Anusuya Lahiri

February 12, 2024 | 1:26 pm

SONY

Sony Group Corp (NYSE:SONY) is set to acquire a 50% stake in Michael Jackson's music catalog from his estate in a deal valued at over $600 million, the largest of its kind. The acquisition includes song shares, the Mijac publishing catalog, master recordings, and publishing rights. This move, along with the release of a biographical movie about Jackson, underscores the lasting commercial interest in his work. Sony reported an 8% year-on-year sales growth in Q2 FY23 and remains committed to its PlayStation and Spider-Man franchises.

Portfolio Pulse from Anusuya Lahiri

February 12, 2024 | 1:16 pm

UL

Unilever Plc (NYSE:UL) CEO Hein Schumacher, supported by billionaire Nelson Peltz, is committed to revitalizing the company through a strategic focus on its top 30 brands, streamlining its workforce, and executing a growth action plan. Despite investor skepticism and a history of underperformance, Schumacher is optimistic about the future, emphasizing systematic marketing and operational efficiency. The company has initiated a €1.5 billion share buyback and reported a 7.0% underlying sales growth in FY23. Unilever also plans to sell its Elida Beauty Business to Yellow Wood Partners LLC.

Portfolio Pulse from Vandana Singh

February 12, 2024 | 1:15 pm

SP

SP Plus Corporation (NASDAQ:SP) stockholders have overwhelmingly approved the merger with Metropolis Technologies, with 99.94% of votes in favor. This merger will result in SP Plus becoming a wholly owned subsidiary of Metropolis, with SP+ stockholders receiving $54.00 per share in cash. The merger's completion is pending certain conditions, including regulatory approval under the HSR Act. Both companies are cooperating with the DOJ following a 'Second Request' for additional information.

Portfolio Pulse from Benzinga Newsdesk

February 12, 2024 | 1:13 pm

GREE

Greenidge Generation Holdings Inc. (NASDAQ:GREE) announced a $6M investment from Armistice Capital to support its business transformation and growth strategy. This investment will fund expansion into low-cost power centers, bitcoin mining, EPCM business, new AI infrastructure/data centers, and innovative efforts in bitcoin interest. Greenidge recently reported its first profitable quarter in two years, with favorable preliminary financial results for Q4 2023, including a net income of $1.4M to $2.4M and a significant debt reduction.

Portfolio Pulse from Benzinga Newsdesk

February 12, 2024 | 1:06 pm

WISH

ContextLogic Inc. (WISH) has agreed to sell its operating assets, including the Wish ecommerce platform, to Qoo10 for $173 million in cash, equating to about $6.50 per share, a 44% premium over its last closing price. This sale will leave ContextLogic with significant Net Operating Loss (NOL) carryforwards of approximately $2.7 billion, which it plans to monetize. The company will remain publicly listed and intends to return capital to shareholders if it cannot monetize the NOLs effectively. The transaction is expected to close in Q2 2024, subject to shareholder approval.

Portfolio Pulse from Benzinga Newsdesk

February 12, 2024 | 1:03 pm

CLMT

Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) announced the execution of a conversion agreement to transform into a Delaware corporation, Calumet Inc. This step follows a previously announced partnership restructuring agreement and is part of Calumet's strategic transformation from an MLP to a C-Corp. The conversion, expected to close in mid-2024, is subject to unitholder approval and other customary conditions. It is intended to be tax-free for unitholders, although some may face tax recapture due to the change in tax status.

Portfolio Pulse from Benzinga Newsdesk

February 12, 2024 | 1:02 pm

FANG

Diamondback Energy Inc (NASDAQ:FANG) announced a merger with Endeavor Energy Resources for about $26 billion, including Endeavor's net debt. The deal involves 117.3 million Diamondback shares and $8 billion in cash. It's expected to create a leading Permian operator with significant production and inventory depth. The merger, expected to close in Q4 2024, aims for $550 million in annual synergies and a 10% free cash flow per share accretion in 2025. Diamondback also plans to raise its dividend and has adjusted its capital return strategy post-merger.

Portfolio Pulse from Lekha Gupta

February 12, 2024 | 12:49 pm