Dark Side of the Street (Edition #19)
Buffalo Thoughts, Special Sit Updates, Top Movers and More!
Welcome to the Dark Side of the Street! Here we shed light on the dark corners of the market. If you haven’t already, sign up here for weekly updates or share with your friends and family. If you’re new to special situations, see some of my learning resources on my substack home page to learn more! Feel free to reach out with any feedback.
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“Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.”
-Martin Luther King Jr.
Thought of the Week
I am from Buffalo, NY, where national news was made last week by a mass shooting at a local grocery store. This is a story that should never be written, as it should never happen. I don’t feel the need to recount the tragedy but only to condemn it.
I always believe that any negative can turn into a positive if appropriate actions are taken. So here’s to believing that as a society, we can move in a positive direction on the large problems of
gun violence, mental health, and racism.
Please take a moment of silence for the victims of this tragedy and all other similar tragedies.
Thank you and now let’s look at some stocks.
Recent Insider Buying
Insider Buying on Recently Completed Spinoffs
Large Micro Cap Purchases
Top News of the Week
“Kohl's reports wide profit miss, says additional buyout bids are due in weeks” - By Tonya Garcia of MarketWatch
“Twitter Board Says It Plans to Enforce Musk Merger Agreement” - By Michelle F Davis of Bloomberg
“Crypto Might Have an Insider Trading Problem” - By Ben Foldy of WSJ
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard (NASDAQ: ATVI) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~22%.
StarTek, Inc. (NYSE: SRT) - Risk Arbitrage/Going Private Transaction
The spread between the buyout price ($5.40/share) and SRT’s current trading price is now ~62%.
Zynga Inc. (NASDAQ: ZNGA) - Risk Arbitrage
The spread between the buyout price ($9.86/share) and ZNGA’s current trading price is now ~20%.
Twitter, Inc (NYSE: TWTR) - Risk Arbitrage/ Going Private
The spread between the buyout price ($54.20/share) and TWTR’s current trading price is now ~42%.
Cumulus Media Inc. (NASDAQ: CMLS) - Odd Lot Tender
The spread between the tender offer ($14.50 - $16.50/share) and CMLS’s current trading price is a minimum of 16% and a maximum of ~32%.
The offer expires on June 3, 2022
*See links for the situation summary from prior editions
Song of the week? Nah, this is album of the week. Kendrick dropped a new album, which is always a must listen.
See you next week!
- Dark Side of the Street