Dark Side of the Street (Edition #72)
US Debt Thoughts, Top Movers, Micro Insider Buying, and More!
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Thought of the Week
I’ve been asking a basic question for 10 years. Why can the US government seemingly borrow as much as they want with no negative repercussions? The United States' debt has increased exponentially over the past 20 years to $30T. For years this has just made no sense to me and I thought that this level of can't continue.
Well, something just did change as the US' credit rating status has been downgraded from AAA to AA+. What this means for investors? I'm not quite sure. Overall, probably not a ton. But this could affect the risk free rates investors use which could hurt stock prices overall. If this forces the government to slow spending, companies who rely on government contracts could be negatively impacted as well.
Overall, I'm still digesting the news but I currently have more questions than answers.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Party City, Creditors in talks to spin off balloon business - Bloomberg News” - By Reuters
“Fitch Downgrades U.S. Credit Rating” - By Matt Grossman and Andrew Duehren 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 ~4%.
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 19%
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