Dark Side of the Street (Edition #59)
800% Gainer?!, $WWE and $CORT 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 below for weekly updates. 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.
Disclaimer: Nothing on this newsletter or on this blog is investing or financial advice; please see our full disclaimer here.
Thought of the Week
What is the best part about researching micro cap stocks? It’s the mystery! In a world where we always feel so connected to everything and are swimming in information overload…. micro caps are oddly silent.
Example: Take a look at the top mover of the week. The stock blasted 800%+ in just this week! My eyes popped out of my head when I saw this and I thought what has this company done to warrant an EIGHT HUNDRED percent gain. Annnnnnnd…. no news. The company has seemingly done nothing.
My brain begins to search for answers. Is this insider trading and something DID happen? Did the algos take over for no reason? Did a major investor load up on shares? Is this the new MEME stock? But oddly, their are no answers.
In micro cap land, the world may never know. It’s all a mystery.
Closed Special Situations
World Wrestling Entertainment, Inc ( WWE 1.50%↑) - Potential Sale
Current stock price: $104.69/share.
WWE has finalized a deal with Endeavor ( ) to merge with WWE. EDR will be spinning off the UFC to create a new publically traded company with the ticker TKO. Below is a summary of the new situation.
News Updates:
“Here's Everything You Should Know About the WWE Merger With UFC” - By Collin Brantmeyer of the Motley Fool
Corcept Therapeutics ( CORT -1.73%↓ ) - Odd Lot Tender
CORT finalized its tender offer, with the final result being a purchase price of $22/share for ~6.6M shares. This results in a max gain of about $2/share for those who timed their purchase right.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Want to Beat the Stock Market? Avoid the Cost of ‘Being Human’” - Jason Zweig of WSJ
“Economists Turn More Pessimistic on Inflation” - By Gabriel T. Rubin and Anthony Debarros 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 ~11%.
News: No Updates
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 38%
Albertsons Companies, Inc ( ACI 0.00%↑ ) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~32%.
News Articles:
No new updates
Madison Square Garden Entertainment ( MSGE 0.00%↑ ) - Spinoff
News Updates:
No new updates
TravelCenters of America ( TA 0.32%↑ ) - Risk Arbitrage
The spread between the buyout price ($86/share) and the current trading price is now -1%.
*See links for the situation summary from prior editions
Showtime! Here’s your song of the week.
See you next week!
- Dark Side of the Street