Dark Side of the Street (Edition #46)
2023 Prediction Thoughts, $WWE Potential Sale, Top Micro Movers, and More!
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“The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.”
- George Soros
Thought of the Week
We’re baaaack! Yes, back like we never left and straight into the new year of 2023.
And every year, I think about the markets and try to predict where I believe the stocks will do for the year. It’s a fun exercise that gets you to reflect on your own macro beliefs (which can help when performing analysis) but also humbles you as there is a high likelihood of being wrong. Last year, my thought was that stocks would have a bad year or, at best, a flat year. I definitely did not see the rollercoaster year in which the market ended down 19%.
My prediction for 2023: My thought is that we will have another down year for stocks. I think that earnings will underperform expectations. Inflation will hold slightly high, beginning to ease by the end of the year, but a recession is likely holding stocks in the red.
Have a prediction for 2023? Share it down in the comments!
New Special Situation
World Wrestling Entertainment, Inc. (NYSE: WWE) - Situation: Potential Sale
Reports state that Vince McMahon is planning to unretire from the WWE to pursue a sale of the company. The stock rose ~17% after the news was reported.
Here is a good CNBC article, labeling the main value in the company for a potential buyer and the main players for the purchase.
The sale is expected to occur within the next 6 months.
Completed Spinoff
General Electric (NYSE: GE) completed its Healthcare division GE Healthcare (NASDAQ: GECH) spinoff on January 2nd, 2023.
Here are a couple of articles on the stock moving forward.
“GE HealthCare Shares Climb in Their First Day of Trading. What to Do With the Stock.” - Al Root of Barron’s
“The Case for Holding—Not Selling—GE’s Healthcare Stock” - By Al Root of Barron’s
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“GE’s Spinoff Deserves Healthy Skepticism” - By David Wainer of WSJ
“Best Stock-Fund Managers of 2022” - By Suzanne McGee of WSJ
Top Micro Cap Movers this Week
Top 10 Gainer
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%.
No new updates.
AMMO, Inc. (NASDAQ: POWW) - Spinoff
No update
111, Inc. (NASDAQ: YI) - Going Private Transaction
The non-binding offer has been upgraded from $3.61 to $3.66/share (see link for SEC filing)
The spread between the offer price and the current stock price is 9%
No new updates.
*See links for the situation summary from prior editions
Take your research to the next level with this intense song. Here’s the song of the week.
See you next week!
- Dark Side of the Street