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“Our banking system is sound and resilient, with strong capital and liquidity.”
-Jerome Powell
Thought of the Week
Two banks fail, Credit Suisse sold, and now Deutsche Bank? The Deutsche fear feels a bit more like investors looking for problems rather than a bank that actually has one. It’s understandable because when a bank fails everyone gets nervous. And because generally banks are interconnected. One bank can be a lender to another, so if one bank fails… another could be taken down with it. It’s also very easy for a bank to fail. All that is necessary is a run on it. So if the public gets too nervous about their bank and decides to pull money out… that could be the end of that bank.
It’s actually hilarious when the Fed or anyone says “our banking system is rock solid”. Because they literally have to say that. If they say anything different then the banking system will immediately become unsolid as people rush to pull money out of their bank. The only one’s that know the truth are on the inside.
My take is that we shouldn’t have PTSD from the Great Recession and our banking system is likely “rock solid”.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Accounting-Fraud Indicator Signals Coming Economic Trouble” - By Josh Zumbrun of WSJ
“Deutsche Bank and the Ghost of Crisis Past” - By Stephen Wilmot of WSJ
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard ( ATVI 0.00%↑ ) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~20%.
News: “Microsoft’s Activision Deal Gets a Win. The U.K. Is No Longer Worried About Console Competition” - By Connor Smith of Barron’s
111, Inc. ( YI 0.00%↑ ) - 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 35%
World Wrestling Entertainment, Inc ( WWE 0.00%↑ ) - Potential Sale
Current stock price: $84.95/share.
News Updates:
“Vince McMahon’s asking price for WWE is $9 billion, report says” - By MarketWatch
This would value the company near $121/share.
Albertsons Companies, Inc ( ACI 0.00%↑ ) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~35%.
News Articles:
No new updates
Madison Square Garden Entertainment ( MSGE 0.00%↑ ) - Spinoff
TravelCenters of America ( TA 0.00%↑ ) - Risk Arbitrage
The spread between the buyout price ($86/share) and the current trading price is now ~0%.
Corcept Therapeutics ( CORT 0.00%↑ ) - Odd Lot Tender
The range for the odd lot tender is $19.25 - $22/share. The stock is currently trading at $21.77, representing a max gain of ~1%.
The offer is valid until March 31st, 2023.
*See links for the situation summary from prior editions
Uplift your day with a little T-Pain! Here’s the song of the week.
See you next week!
- Dark Side of the Street