Streetbeat News

Acquisitions Mergers

FUTU

IBKR

SCHW

TIGR

Futu Holdings Ltd. (NASDAQ:FUTU) reported a 36% increase in overall revenue in Q3, driven by a 5.3% rise in fee-based revenue and a significant 71% increase in interest income due to U.S. Federal Reserve rate hikes. The company expanded into Japan and Canada, now serving seven markets. Despite a challenging global stock market, Futu's diverse investment products and geographic expansion helped grow its paying client base by 14% year-on-year to 1.65 million. Analysts are cautious about future growth as the interest income boost may fade. Futu's stock performance remains strong, with a year-to-date increase of over 40%, and a P/E ratio of 17, comparable to Charles Schwab (NYSE:SCHW) but lower than Interactive Brokers (NASDAQ:IBKR) and UP Fintech (NASDAQ:TIGR). Futu's entry into Japan faces challenges from zero-commission trading by local brokers, but the company sees potential profitability by offering U.S. stock trading to Japanese customers and introducing Japan stock trading to clients in other markets.

Portfolio Pulse from The Bamboo Works

December 04, 2023 | 1:43 pm

SMFL

Smart for Life, Inc. (SMFL) has announced a Letter of Intent to acquire a manufacturer of vitamins and supplements, which is expected to contribute approximately $20 million in revenue over the next year. This acquisition aligns with the company's M&A strategy in the nutraceutical space and is anticipated to be the largest to date. The acquisition is expected to bring manufacturing capabilities in-house, create synergies with existing channels and brands, and be accretive to Smart for Life's operations. The completion of the acquisition is contingent upon due diligence and other closing conditions.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:42 pm

SWX

Southwest Gas Holdings, Inc. (NYSE:SWX) announced plans to pursue an IPO of Centuri Holdings in spring/summer 2024. The IPO aims to separate Centuri as an independent utility infrastructure services company, maximizing value for Southwest Gas shareholders. The IPO is subject to market conditions, SEC review, and Board approval. Proceeds will repay Centuri's debt, enhancing financial flexibility. Southwest Gas may reduce its Centuri ownership post-IPO through market sales or exchange offers, and has a $932.8 million NOL carryforward to offset potential taxable gains.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:38 pm

ALK

Alaska Air (ALK) has announced its intention to acquire Hawaiian Airlines at a price of $18 per share in cash, causing its shares to trade lower.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:37 pm

ATR

AptarGroup, Inc. (NYSE:ATR) has been awarded a contract by the U.S. FDA to study the development of low Global Warming Potential propellants for metered dose inhalers (MDIs). The contract, including optional items, is valued at up to $6 million. Aptar will leverage its R&D center and respiratory team to provide the FDA with information on formulation, manufacturing, and device design for low-GWP propellant MDIs. The study aims to support FDA's regulatory framework for evaluating and approving these MDIs, with results to be reviewed and potentially published.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:31 pm

ALK

Alaska Air Group Inc (ALK) shares dropped over 12% following the announcement of a $1.9 billion acquisition deal with Hawaiian Holdings Inc (HA), which includes $0.9 billion of HA's net debt. The deal values HA at $18.00 per share and is expected to generate significant synergies and earnings accretion for Alaska Airlines. The merger will expand the fleet and destination network, with Honolulu becoming a key hub. The transaction is expected to close in 12-18 months, pending shareholder and regulatory approvals.

Portfolio Pulse from Lekha Gupta

December 04, 2023 | 1:30 pm

AAPL

AMZN

GOOG

INTC

MSFT

NVDA

QCOM

TSM

Intel Corp (INTC) is struggling to maintain its dominance in the semiconductor industry due to competition from companies like Qualcomm (QCOM), Nvidia (NVDA), AMD, and others using ARM-based processors. Apple (AAPL) has been a leader in adopting ARM technology for desktops, influencing other tech giants like Google (GOOG/GOOGL) and Amazon (AMZN) to follow suit. Intel's market share is threatened as its traditional partners like Microsoft (MSFT) explore ARM-based solutions. Despite challenges, Intel plans to compete with new chip generations and aims to match TSMC's (TSM) manufacturing technology by 2025.

Portfolio Pulse from Anusuya Lahiri

December 04, 2023 | 1:12 pm

VINE

Fresh Vine Wine Inc. (VINE) has announced a non-binding letter of intent to merge with Notes Live, Inc., a live entertainment and hospitality company. The definitive agreement is expected by January 31, 2024, with a potential closing in Q2 2024. Notes Live owners may acquire over 90% of Fresh Vine post-transaction. Conditions include due diligence, financing, regulatory approvals, and NYSE American listing maintenance. Fresh Vine has also made a $500,000 equity investment in Notes Live, which may be refundable. The transaction aims to provide customers an opportunity to invest in Notes Live's vision for live music experiences.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:09 pm

LUXH

LuxUrban Hotels Inc. (LUXH) and its Chairman and Co-CEO Brian Ferdinand mutually agreed to cancel a $10M financing arrangement due to ongoing discussions with Wyndham Hotels & Resorts, Inc. to enhance access to non-dilutive capital. The company is in late-stage talks with Wyndham about Development Incentive Advances, which could accelerate and increase funding for new property acquisitions. Ferdinand will stop selling LUXH common stock, and approximately $500,000 from recent sales will be gifted to the company. LUXH continues to expand, having onboarded or in the process of onboarding 27 hotels to the Wyndham brand, and maintains its financial and unit guidance. Additionally, the underwriter of LUXH's Series A Preferred Stock offering partially exercised an over-allotment option on December 1, with the possibility of further exercises through December 8, with net proceeds aimed at leasing more units and for corporate purposes.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:07 pm

SLNA

Selina Hospitality PLC (NASDAQ: SLNA) announced plans for fundraising and liability management, including a potential $68 million in strategic investments led by Osprey Investments Limited and others. The company aims to restructure its $147.5 million 6.00% convertible senior notes due 2026, with agreements in principle for a $28 million equity financing and an optional $40 million equity financing. The restructuring includes converting some debt to equity, extending maturity dates, and securing the Selina brand as collateral. The transactions are subject to definitive agreements and shareholder approval, with the goal of strengthening the balance sheet and achieving profitability.

Portfolio Pulse from Benzinga Newsdesk

December 04, 2023 | 1:04 pm