STOCKS TELEGRAPH

Author: Shariq Khan

  • Masimo Corporation (MASI) plunged in the current market; here is why?

    Masimo Corporation (MASI) plunged in the current market; here is why?

    Announcing the acquisition of Sound United, Masimo Corporation (MASI) stock declined in the current market. MASI is currently trading at $151.50, losing more than 34% compared to its previous closing price. The stock finished at $228.84 at the end of the latest trading day. The previous trading session saw about 443.85K shares of stock exchanged. The current market cap of the company is about $8.48 billion.

    MASI announced the Acquisition of Sound United

    Masimo Corporation (MASI) bought Sound United, LLC. Masimo is a global leader in noninvasive hospital and home monitoring.

    Together, Masimo and Sound United will improve user experience and develop superior items. For his increasing consumer product line, Masimo will use Sound United’s knowledge. They will have a world-class professional, and consumer engineering function focused on products that improve their customers’ lives.

    Agreement details

    Under normal circumstances, the company expects that the acquisition will complete by the middle of 2022, pending regulatory clearances and other closing conditions. Sound United’s CEO, Kevin Duffy, will continue to report directly to Masimo Chairman and CEO Joe Kiani when the deal closes.

    A portfolio business of Charlesbank Capital Partners, LLC, a private equity firm in Boston, is Sound United. Neither Citigroup nor Paul Hastings LLP provided legal advice to Masimo. Sound United’s primary financial adviser was Evercore. Sound United also received financial assistance from Stifel and Solomon Partners and legal help from Goodwin Procter LLP.

    Conclusion

    The company’s stock is down despite the major deal they entered today. It might be due to the sudden demand of the stock and its excessive trading in the market. In such conditions, the stock will regain its value in the upcoming days. The deal represents the strong balance sheet of the company and its goal of extending its business.

  • Liminal BioSciences Inc. (LMNL) stock gained in the current market; here is why?

    Liminal BioSciences Inc. (LMNL) stock gained in the current market; here is why?

    The current market for Liminal BioSciences Inc. (LMNL) was up for the company after announcing its debt repayment. LMNL is trading at $0.86, gaining more than 0.92 percent from its closing price on Monday. The stock closed at $0.85 at the end of the last trading session. The stock volume traded in the last trading session was around 84.9K shares. The current market cap of the company is around 26.54 million.

    Liminal BioSciences Inc. (LMNL) repaid its debt

    Liminal BioSciences Inc. (LMNL) stated that it has fully settled its $39.1 million debt to Structured Alpha LP (SALP). It ends the Company’s credit connection with SALP.

    The April 27, 2017 consolidated loan agreement, as revised in November 2019, was fully paid on April 23, 2019. The Repayment also discharges all restrictions in the Loan Agreement and royalties stream purchase agreement dated May 1, 2018. This release covers any security interests, hypothecs, charges, and other liens placed on the assets of the Company’s affiliates, including any intellectual property held by such affiliates themselves or their subsidiaries.

    Approximately CA$9.1 million in future interest expenses will be saved when the loan is repaid in 2021 with proceeds from the sale of pediatric review vouchers and the disposal of the company’s plasma-derived therapeutics business. Paying down the debt while being financially secure is in the company’s best interest and displays the company’s dedication to financial management and control. Neither premiums nor penalties were necessary for the Repayment.

    LMNL CEO’s remarks

    Deleveraging our balance sheet and cutting interest costs is part of our business objective, says Liminal BioSciences CEO Bruce Pritchard. Early repayment releases SALP’s secured rights in the Company’s assets, giving us full intellectual property ownership. This streamlines our procedures and expands our future possibilities, including pipeline asset transactions. The loan came in April 2024 and was a significant burden on our financial sheet. Despite ending our creditor relationship with SALP, we appreciate their continuing support.

    Conclusion

    Its debt repayment shows its strong balance sheet and good company performance. Throughout 2022, the Company will examine its balance sheet and aggressively explore opportunities to liquidate non-core assets and decrease expenses associated with prior activities.

  • Upstart Holdings, Inc. (UPST) skyrocketed pre-market; here is why?

    Upstart Holdings, Inc. (UPST) skyrocketed pre-market; here is why?

    Upstart Holdings, Inc. (UPST) gained in the pre-market after announcing its share repurchase program in a press release. UPST values $137.22, gaining more than 25.76% compared to yesterday’s closing price. The stock closed at $109.11 at the end of the last trading session. The stock volume traded in the last trading session was around 6.8 million shares. The current market cap of the company is around $8.94 billion.

    Upstart Holdings, Inc. (UPST) announced share repurchase

    An artificial intelligence payment system known as Upstart Holdings, Inc. (UPST) stated today that its board of directors had approved a share repurchase program with the ability to purchase up to $400 million in common stock.

    For example, Upstart may purchase shares on the open market, privately negotiated deals, or in other ways when trading programs are created under Rule 10b5-1 of the Securities Exchange Act of 1934 (as amended). The stock price, acquisition prospects, company and market conditions, organizational and regulatory needs, and other factors influence future repurchases’ timing and quantity. Upstart is under no obligation to purchase a certain number of shares of its common stock as part of the share repurchase program, and it has the discretion to cease the program at any time.

    UPST CFO’s remarks

    Upstart’s CFO Sanjay Datta believes that the volatility in their stock trading over the past year has provided us with the opportunity to take advantage of what they perceive to be excellent buying conditions, and their earnings put them in a position to do so.

    Conclusion

    Upstart Holdings, Inc. (UPST) is moving forward a step ahead in providing value to its shareholders by repurchasing shares. Upstart amongst the rising tech stock and is one of the best candidates among future tech stock. However, its stock has been on a roller coaster ride in the last few months and has crashed from reaching an all-time high of $401 per share.

  • Avis Budget Group, Inc. (CAR) stock plunged -12.05% on Tuesday; here is why?

    Avis Budget Group, Inc. (CAR) stock declined -12.05% to $171.25 in the normal trading session on Tuesday after the company reported fourth-quarter and fiscal 2021 earnings. The stock closed at $194.71 at the end of Monday’s trading session. The stock volume traded in the last trading session was around 861.41K shares. The current market cap of the company is around 9.58 billion.

    CAR: Key Financials

    • Avis Budget Group, Inc. (CAR) revenue in Q4 2021 was $2.57 billion. It is a gain of more than 90% compared to the revenue of Q4 in 2020.
    • Fiscal year revenue was $9.3 billion, and it is an increase of more than 72% compared to the revenue in fiscal 2020.
    • The company’s net income in Q4 2021 was around $381 million. Its EBITDA was $683 million.
    • CAR net income in fiscal 2021 was around $1.3 billion with an EBITDA of $2.4 billion.
    • The company repurchased 2.6 million worth of common shares at an average price of $170 in the fourth quarter, bringing their total stock buybacks for 2021 to roughly 14.3 million common shares.
    • EPS is $7.08 per share.

    CAR has lost more than 12.5% in a single day

    CAR lost more than 12.5% in single-day trading. The company announced positive results, but its stock plunged despite the good numbers. CAR gained more than 274% in the trailing twelve months.

    CAR CEO’s remarks

    The robust performance continued in the fourth quarter, with all significant measures exceeding pre-pandemic levels in the Americas, said Avis Budget Group CEO, Joe Ferraro. Despite Omicron’s emergence, they offered the best year ever. This would not have been possible without our entire organization’s relentless effort, for which he is thankful to the team for that.

    Conclusion

    The stock is declining despite the incredible financial numbers. The reason is unclear at the moment. The liquidity position of the company is currently at around $757 million.

  • MoneyGram International, Inc. (MGI) stock surged in the current market; here is why?

    After announcing that Madison Dearborn Partners had agreed to acquire MoneyGram International, Inc. (MGI), the stock rose in the current market. MGI is now worth $10.59, up about 18% from yesterday’s closing price. At the close of the latest trading day, the stock was trading at $8.95. The previous trading session had a volume of approximately 18.15 million shares. About $2.10 billion is the company’s current market capitalization.

    MGI acquired by MDP

    MoneyGram International, Inc. (MGI) announced today that funds affiliated with Madison Dearborn Partners (MDP) would acquire all outstanding shares of MoneyGram for $11.00 per share in an all-cash payment valued at roughly $1.8 billion. The purchase price for MoneyGram is 50% higher than the company’s least affected closing stock price on December 14, 2021, the last trading day before the deal was rumored.

    MoneyGram’s exclusive financial advisor is BofA Securities Inc., while legal counsel is Vinson & Elkins LLP, and financial services regulatory counsel is Paul Hastings LLP.

    Madison Dearborn Partners (MDP) Avisors are:

    • Goldman Sachs & Co. LLC
    • Deutsche Bank Securities Inc.
    • Barclays and J.P. Morgan Securities LLC
    • Latham & Watkins LLP
    • Kirkland & Ellis LLP
    • Covington & Burling LLP

    Transaction details of the deal

    The deal, agreed unanimously by the MoneyGram Board of Directors, values each share of MoneyGram common stock at $11.00. MDP will additionally refinance the Company’s $799 million debt as of December 31, 2021.

    Guaranteed debt funding was supplied by Goldman Sachs, Deutsche Bank Securities, and Barclays. After shareholder and regulatory clearances, including money transmitter licenses in numerous jurisdictions, the merger should close in the fourth quarter of 2022. MoneyGram will become a private company, with no public stock trading.

    Conclusion

    MoneyGram International, Inc. (MGI) is being acquired at a pretty reasonable valuation. But the main thing is that the company will not remain a public company and will no more trade on the stock exchange. Due to this, the company’s stock is skyrocketing in the current market.

  • Virgin Galactic Holdings, Inc. (SPCE) stock surged in the Pre-market, here is why?

    Virgin Galactic Holdings, Inc. (SPCE) gained in the pre-market after announcing the beginning of sales for the commercials spaceflights. SPCE values $9.10, gaining more than 11% compared to yesterday’s closing price. The stock closed at $8.13 at the end of the last trading session. The stock volume traded in the last trading session was around 18.15 million shares. The current market cap of the company is around $2.10 billion.

    Virgin Galactic Holdings, Inc. (SPCE) announced the beginning of Spaceflights

    Virgin Galactic Holdings, Inc. (SPCE) announced today that general public ticket sales will commence on February 16, allowing the opportunity to purchase one of the first spaceflight reservations and join the elite Future Astronauts club.

    From ticket purchase to return home, the Future Astronaut membership group is designed to inspire, thrill, and adventure. The launch location is in New Mexico. Shortly after training, wannabe astronauts will join their visitors in custom-made quarters. Guests will also experience world-class amenities.

    A 90-minute voyage into space includes Mach-3 acceleration with s Stunning views of Earth from the spaceship’s 17 windows. They will begin on a great adventure to make a positive effect on the lovely world after this life-altering meeting.

    A new iconic consumer brand designed to inspire future astronauts around the world by expressing the excitement, wonder, and awe of seeing Earth from space. The spacecraft is a celebration of pioneering design and a Virgin Galactic trademark.

    SPCE CEO’s remarks

    The CEO of Virgin Galactic, Michael Colglazier, said that space is transformative. Starting commercial service officially this year, we hope to have at least 1,000 clients on board to help us grow our fleet and begin regular operations.

    Conclusion

    Reservations for space travel cost $450,000. Customers will make their subsequent payment before to their flight following an upfront deposit of USD $150,000. The program will be huge success in the human history.

  • HIVE Blockchain Technologies Ltd. (HIVE) stock is down in the pre-market; here is why?

    The pre-market for HIVE Blockchain Technologies Ltd. (HIVE) was slightly lower after the company reported third-quarter 2022 earnings. HIVE is trading at $2.56, down more than 3.7 percent from its closing price on Monday. The stock closed at $2.66 at the end of the last trading session. The stock volume traded in the last trading session was around 2.81 million shares. The current market cap of the company is around CAD 1.9 billion.

    HIVE: Fiscal 2022 Q3 Highlights

    • The revenue in the third quarter of fiscal 2022 was $68.2 million. The revenue increased by 397% compared to the same quarter last year.
    • During the third quarter of 2022, net income was $64.2 million, compared to $17.2 million in the same period of the previous year. Improved performance in gross mining margin1, increased Ethereum and Bitcoin prices, and profits from digital currency sales were primarily responsible for the increase in profitability.
    • HIVE’s third-quarter 2022 EPS was $0.17, up from $0.05 in the third quarter of 2021.
    • At the end of 2021, the digital currency assets of HIVE were worth $168.1 million.

    HIVE Executive Chairman’s remarks

    Chairman Frank Holmes of the company said they are thankful to their loyal shareholders for trusting in their vision to mine Ethereum and Bitcoin for a strong cash flow return. The company’s result depicts its dedication towards its goal of mining the maximum number of cryptocurrencies.

    Recent production updates

    According to the recent news updates the company had a total of 2,043 Bitcoin and 25,404 Ethereum. The numbers have improved by a fair number last year in the same quarter the company around $13 million worth of bitcoin.

    Conclusion

    HIVE Blockchain Technologies Ltd. (HIVE) has announced incredible quarterly results. The company’s revenue increased mainly due to the increase in cryptocurrency rates. Their revenue has increased significantly compared to the last reported quarter. On Tuesday, February 15, 2022, at 8:30 a.m. Eastern Time, HIVE Blockchain Technologies Ltd. (HIVE) will announce its results on a webcast.

  • Knightscope, Inc. (KSCP) surged in the current market; here is why?

    Announcing a strategic alliance with Allied Universal, Knightscope Inc. (KSCP) stock rose in the current market. KSCP is currently trading at $8.14, up more than 28.80% from its previous closing price. The stock finished at $6.32 at the end of the latest trading day. The previous trading session saw about 10.55 million shares of stock exchanged.

    Knightscope, Inc. (KSCP) announced a strategic partnership with Allied Universal

    Knightscope, Inc. (KSCP) and Allied Universal have forged a strategic agreement to discourage crime, improve situational awareness, and protect security professionals in the US. Allied Universal employs approximately 800,000 people worldwide in security and facility services.

    Knightscope’s technologies, including K5 Outdoor, K3 Indoor, and K1 Stationary ASRs, will be available in the US through Allied Universal Technology Services, a subsidiary of Allied Universal. Fewer crimes thanks to Knightscope’s robots. Knightscope and Allied Universal can save customers money by monitoring ASR alerts.

    Knightscope Inc. (KSCP) added another Fortune 500 firm

    A Knightscope K5 has been added to the protection plans of some of the nation’s top financial institutions, according to Knightscope, Inc. (KSCP). The K5 self-driving security robot will patrol a new parking garage for auto theft, loitering, and other criminal trespassing.

    KSCP CEO’s remarks on the alliance

    Knightscope’s CEO, William Santana Li, said the Allied Universal cooperation is a winning formula: Robots do the laborious, computational work, while humans handle the strategic, hands-on responsibilities. Now they may look forward to a future of solid long-term growth.

    Conclusion

    Knightscope, Inc. (KSCP) went public recently a couple of weeks ago. On Jan 31, 2022, the stock surpassed the $21 per share mark within a couple of days, but it crashed in the market. Today the stock surged after the strategic alliance between the two companies.

  • Cornerstone Building Brands, Inc. (CNR) surged in the current market; here is why?

    Cornerstone Building Brands, Inc. (CNR) gained in the current market after announcing that CD&R Has Proposed a Non-Binding Approach to acquire it. CNR values $23, gaining more than 24.97% compared to yesterday’s closing price. The stock closed at $18.40 at the end of the last trading session. The stock volume traded in the last trading session was around 1.02 million shares. The current market cap of the company is around $2.88 billion.

    Cornerstone Building Brands, Inc. (CNR): CD&R Makes Non-binding Offer

    Clayton, Dubilier & Rice, LLC (CD&R)-affiliated funds have submitted a non-binding best and final offer to purchase all of Cornerstone Building Brands, Inc.’s outstanding common stock for $24.65 in cash per share. Over half of the company’s shares are owned by CD&R. As a result, a special committee of non-executive directors was established to assess and consider any potential or actual CD&R proposal, as well as any other alternative proposals or strategic options.

    In light of CD&R’s proposal, the Company advises its stockholders and other potential investors that there will be no final agreement or transaction. When the Special Committee recommends, and the Board approves a specific transaction, the Company will not comment further on this proposal.

    CNR upcoming events and news

    On Monday, February 21, after the end of the New York Stock Exchange, the business will report its fourth-quarter financial results for 2021. At 9:00 am on Tuesday, February 22, the firm will hold an open-ended conference call to discuss its fourth-quarter financial results with investors and financial analysts.

    Conclusion

    In the third quarter, CNR performed very well. They expect to exceed the numbers as compared to the previously announced quarter. The revenue and net income gained significantly with some massive numbers. The growth rate was 17.6% in comparison with the 3rd quarter of 2020. The net income saw a remarkable increase of 1900%.

  • Luokung Technology Corp. (LKCO) is down in the Pre-market; here is why?

    Luokung Technology Corp. (LKCO) is slightly down in the pre-market after constantly pricing below $1 despite the NASDAQ’s notification in January. LKCO values $0.82, losing more than 6.7% compared to yesterday’s closing price. The stock closed at $0.88 at the end of the last trading session. The stock volume traded in the last trading session was around 2.73 million shares. The current market cap of the company is around $302.64 million.

    LKCO received notification from NASDAQ in January

    To be eligible for listing on Nasdaq, Luokung Technology Corp. (LKCO) must have traded at least $1.00 for 30 consecutive trading days, as required by Nasdaq Listing Rule 5550(a)(2) and 5810(c)(3)(A). The NASDAQ listing of the company is unaffected by the announcement.

    Company may be removed from NASDAQ if the minimum bid price is not met within 180 days of notification or until July 5, 2022. NASDAQ’s policy is to notify a company when its ordinary shares settle at or above $1.00 per share for at least ten consecutive business days. To be eligible for an extension or delisting from NASDAQ, the corporation must regain compliance by July 5, 2022.

    LKCO 2nd Half results of fiscal 2021 are still pending

    LKCO is yet to announce its results for the second half of fiscal 2021. The highlights of the first half of fiscal 2021 are:

    • The first half of 2021 brought in $37.8 million in revenue, relative to $7.3 million in the same period last year.
    • The company announced a net loss of $26.7 million in the first half of 2021 relative to the $18.9 million loss in the same period last year.
    • LKCO reported diluted and basic loss per share of $0.09 for the first half of 2021 remained unchanged from the previous year’s first six-month period.

    Conclusion

    The company is currently going through a rough time. Its revenue is down, but they also have to meet the NASDAQ’s listing compliance to keep it listed on NASDAQ. Following the first or second compliance period, the Company may perform a reverse share split of its outstanding ordinary shares to ensure compliance.