Dark Side of the Street (Edition #58)
More Recession Thoughts,$ATVI Update, $WWE Update, Top Movers, and More!
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“In times of recession there are massive opportunities and fortunes to be made, so for new up and coming entrepreneurs, this is the time to go and start a business.”
-Richard Branson
Thought of the Week
Individual investors are pulling out of stocks because of a possible recession. That’s a common headline that I’ve read this year. Yet, stocks are up almost 8% this year, even with a negative macro backdrop.
This week my thought is more of a question than an answer. What does a 2023/2024 recession look like?
I fear that too many people have PTSD with the word ‘recession’. That word triggers memories of the worst economic decline in 100 years. But that recession was fairly unique.
So what does a ‘normal’ recession look like? And should we really be afraid of that outcome?
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Macy’s, Doordash, and Other Stocks That Could Be Buyout Candidates When M&A Returns” - By Jacob Sonenshine of Barron’s
“Home Prices Fell in January for Seventh Straight Month” - By Nicole Friedman of WSJ
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard ( ATVI 0.80%↑ ) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~11%.
News: “Activision Stock Is Too Cheap: Analysts. They Expect Sale to Microsoft to Close.” - By Connor Smith of Barron’s
111, Inc. ( YI -0.37%↓ ) - 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 38%
World Wrestling Entertainment, Inc ( WWE 0.00%↑) - Potential Sale
Current stock price: $91.26/share.
WWE was a major mover last week as the stock rose 6% with news reports indicating there are multiple suitors for the company.
News Updates:
“WWE Inches Closer to Sale” - By Tony Owusu of The Street
“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 1.02%↑ ) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~31%.
News Articles:
No new updates
Madison Square Garden Entertainment ( MSGE 1.27%↑ ) - Spinoff
News Updates:
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 was valid until March 31st, 2023.
*See links for the situation summary from prior editions
Classic electro. Here’s your song of the week!
See you next week!
- Dark Side of the Street