Dark Side of the Street (Edition #65)
Golf Thoughts, $TA and $VVV 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.
“We can talk, but money talks so talk mo' bucks”
-Jay Z
Thought of the Week
Last year, I wrote a thought on LIV Golf. I slammed the golfers who took massive paydays from a company funded by the Saudi government, as it appeared to be an attempt to sports wash the many controversies surrounding the Saudi government and their social beliefs.
And now, there is a new story to learn from, as the PGA Tour has merged with LIV Golf. Now it is the PGA that is taking the massive payday and essentially sold professional golf to the Saudis.
What’s to learn from this story? In a competition where money is involved, whoever has more money wins.
The Wolf of Wall Street was right; with money, you can become a better person by saving the spotted owl. We will see if money makes the Saudis a better government by purchasing professional golf.
Completed Situations
TravelCenters of America (TA) - Risk Arbitrage
TA has completed its merger and is now a subsidiary of BP. Unfortunately, this deal was completed quickly but yielded very little return as investors grabbed the stock quickly and the spread rarely moved below 1%.
Valvoline Inc. (VVV) - Odd Lot Tender Offer
VVV has completed its odd lot tender at a purchase price of $38/share. This was another situation with minimal opportunity as arbitragers quickly bid up the stock near $38 or higher. The stock rarely dipped below the final purchase price, so arbitragers were unlikely to make much on this deal.
Here is the PR Newswire of the final details of the offer.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Tesla Has Won the EV-Charger Wars” - By Stephen Wilmot of WSJ
“The PGA Tour Says It Couldn’t Afford to Keep Battling Saudi Arabia” - By Andrew Beaton and Louise Radnofsky 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 ~18%.
News Articles:
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 31%
Albertsons Companies, Inc (ACI 0.00%↑) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~30%.
News Articles:
No new updates
Cumulus Media Inc. (CMLS 7.43%↑) - Odd Lot Tender Offer
The offer range is between $2.85- $3.25/share.
The offer expired on June 8th, 2023, we will wait for the final results of the offer before closing the situation.
*See links for the situation summary from prior editions
See you next week!
- Dark Side of the Street