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Thought of the Week
This week the Fed increased interest rates another quarter of a point even though inflation declined to about 4% in the US. This is an interesting signal from the Fed, but one that investors appear to be ignoring as the S&P is up 5% in the last month. The economy talk has also shifted toward a 'soft landing' with likely no recession in sight.
Jerome Powell also stated that the Fed could hike rates again if the economy picked up strength with the possibility that could promote further inflation. This is a very interesting statement, as it appears that the Fed is actually more worried about the economy being too good which could lead to price increases which leads to a downturn.
Personally, I'm still nervous about a possible downturn even though the market is performing well. One thing that I've learned about the economy is that it can take a long time for a negative event to ripple through the economy and drive the results that economists predict.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“The Fall of a Trucking Giant: Why Yellow Is on the Verge of Collapse” - By Sarah Nassauer and Paul Page of WSJ
“Why the Drivers of Lower Inflation Matter” - By Nick Timiraos and Tom Fairless of WSJ
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard (ATVI -0.36%↓) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~3%.
News Articles:
No new updates
111, Inc. (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 15%
Albertsons Companies, Inc (ACI 0.00) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~25%.
News Articles:
No new updates
*See links for the situation summary from prior editions
See you next week!
- Dark Side of the Street