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Acquisitions Mergers

LLY

NVO

Eli Lilly and Co plans to build a €2 billion production plant in Alzey, Germany, to respond to the need for localized healthcare manufacturing and to meet the demand for its diabetes drug Mounjaro. The facility is expected to create over 1,000 jobs and may also produce diabetes medications for obesity treatment. Novo Nordisk A/S also announced a $6 billion investment to expand its facilities in Denmark for weight-loss products. LLY shares are trading at $588.60.

Portfolio Pulse from Vandana Singh

November 16, 2023 | 7:56 pm

FIXX

PLCE

SONO

UTI

VLCN

WAVD

WSM

U.S. stocks traded lower with the Dow Jones falling over 100 points. Utilities shares surged by 1%, while energy shares fell by 2.2%. Williams-Sonoma (NYSE:WSM) reported better-than-expected Q3 adjusted earnings, beating EPS estimates but falling short on sales expectations. Sonos (NASDAQ:SONO) shares rose 18% after strong Q4 results. WaveDancer (NASDAQ:WAVD) shares jumped 68% due to a merger agreement with Firefly Neuroscience. Universal Technical Institute (NYSE:UTI) gained 14% following strong sales. Volcon (NASDAQ:VLCN) plunged 64% after announcing a public offering. The Children's Place (NASDAQ:PLCE) dropped 29% after weak earnings. Homology Medicines (NASDAQ:FIXX) fell 38% after announcing a merger with Q32 Bio. Gold prices increased by 1.2%, and oil prices declined by 5.7%.

Portfolio Pulse from Lisa Levin

November 16, 2023 | 7:30 pm

AAPL

BRK

GLD

SOXX

The latest 13F filings show significant portfolio changes by major hedge funds. Berkshire Hathaway's top buys were LSXMA and SIRI, with sells including ATVI and GM. Bridgewater Associates increased stakes in consumer brands and bought SLB and AVGO, selling JNJ and VWO. Greenlight Capital invested in GLD and stocks in the material and energy sectors. Scion Asset Management bet against the semiconductor space with puts on SOXX and against BKNG. Pershing Square Capital bought more GOOGL, HLT, and HHH, selling some LOW.

Portfolio Pulse from Surbhi Jain

November 16, 2023 | 6:12 pm

ECAT

Boaz Weinstein, founder of Saba Capital Management, has publicly urged BlackRock's CIO Rick Rieder to merge BlackRock ESG Allocation Trust (ECAT) with one of BlackRock's ESG mutual funds. Weinstein suggests this would eliminate the discount on ECAT shares and create a $200 million windfall for investors. Saba Capital recently increased its stake in ECAT to 19,025,530 shares, making it 7.5% of Saba's holdings and 18.6% of ECAT. Weinstein's strategy reflects a trend among hedge funds to invest in undervalued closed-end funds and push for actions that realize their underlying value.

Portfolio Pulse from Neil Dennis

November 16, 2023 | 5:56 pm

WAVD

WaveDancer, Inc. (WAVD) shares are trading higher following the announcement of an all-stock merger agreement with Firefly Neuroscience. This strategic move could potentially expand WaveDancer's market presence and product offerings in the neuroscience sector.

Portfolio Pulse from Benzinga Newsdesk

November 16, 2023 | 5:51 pm

DRMA

FIXX

PLCE

SONO

VLCN

WAVD

WMT

U.S. stocks traded lower, with the Dow Jones down 0.40%, NASDAQ down 0.35%, and S&P 500 down 0.23%. Walmart's shares fell 7% post Q3 results, despite beating sales and EPS estimates, as it raised FY24 EPS guidance slightly below the estimate. Crude oil prices dropped 4.3%, while utilities shares surged by 1%. Other notable movements included Sonos up 17% after strong Q4 results, WaveDancer up 60% following a merger agreement, and Dermata Therapeutics up 22% after an FDA agreement. Conversely, Volcon plunged 68% due to a public offering, The Children's Place fell 26% after weak earnings, and Homology Medicines dropped 38% after announcing a stock transaction merger.

Portfolio Pulse from Lisa Levin

November 16, 2023 | 5:02 pm

FIXX

Homology Medicines Inc (NASDAQ:FIXX) stock is trading lower after announcing a definitive merger agreement with Q32 Bio Inc. The all-stock transaction will result in Q32 Bio becoming a wholly owned subsidiary of Homology Medicines, with the combined company operating under the name Q32 Bio and expected to trade under the ticker 'QTTB'. Pre-merger Homology stockholders will own about 25% of the new entity, while Q32 Bio stockholders will own approximately 75%. Homology Medicines has also discontinued its R&D programs and is exploring strategic alternatives for its technology. The combined company is expected to have a cash balance of $115 million, providing a runway to mid-2026. FIXX shares have dropped 42.82% to $0.5031.

Portfolio Pulse from Vandana Singh

November 16, 2023 | 4:11 pm

NLSP

NLS Pharmaceutics AG (NASDAQ:NLSP) stock plummeted 40% after announcing it is exploring strategic alternatives, including partnerships and licensing, and implementing cost-saving measures such as reducing its workforce by 50%. These steps are taken to diversify revenue, extend cash reserves, and streamline operations while focusing on innovation in therapies for nervous system disorders.

Portfolio Pulse from Henry Khederian

November 16, 2023 | 4:00 pm

WAVD

WaveDancer Inc (NASDAQ:WAVD) shares surged after announcing a merger with Firefly Neuroscience in an all-stock transaction. The merger is expected to close in Q1 2024, with the combined company operating under Firefly Neuroscience and focusing on Firefly's AI-driven Brain Network Analytics platform. Post-merger, Firefly shareholders will own about 92% of the new entity, while WaveDancer shareholders will retain around 8%, which could increase if WaveDancer raises additional capital. WAVD stock rose 75.6% to $2.77 following the news.

Portfolio Pulse from Adam Eckert

November 16, 2023 | 3:36 pm

BNGO

INBX

LADX

RILY

The Bear Cave Newsletter has issued a report on Axos Financial (NYSE:AX), raising concerns about the company's culture, loan portfolio, and crypto ventures. Axos, previously known as Bank of Internet, has been criticized by short-sellers for various risks. The report details Axos's history of 'exception-based lending', its ties to high-interest small business lenders, and its relationship with B. Riley (NASDAQ:RILY), whose CEO recently sold stock to meet a margin call. Axos's auditing history is also questioned, with its current and past auditors having limited experience with public companies. The report suggests that Axos's business model may carry risks similar to those that led to the failure of NetBank in 2007.

Portfolio Pulse from Benzinga Newsdesk

November 16, 2023 | 3:34 pm