STOCKS TELEGRAPH

Tag: E-commerce

  • Cuentas, Inc. (CUEN) Stock Dips After Exercising of Warrants from February 2021 Public Offering

    Cuentas, Inc. (CUEN) Stock Dips After Exercising of Warrants from February 2021 Public Offering

    Cuentas, Inc. (CUEN) stock prices were down 14.40% shortly after market trading commenced on July 12th, 2021, bringing the price per share down to USD$4.16 early on in the trading day.

    Public Offering

    July 12th, 2021 saw the company announce the generation of USD$6.2 million from the exercising of warrants issues earlier in February of 2021. The warrants were issued in relation to the company’s underwritten public offering of 2,790,697 units, with each unit priced at USD$4.30 per unit. The offering raised roughly USD$12 million, before the deduction of expenses related to the offering. The warrants started trading on the Nasdaq Capital Market under the ticker CUENW since February 2nd, 2021.

    Inclusion in WaveMax Network

    WaveMaxannounced having been selected by TelcoDR as a part of its showcase of the most innovative mobile technologies at the Mobile World Congress in Barcelona. Cuentas has signed a contract to rollout SharedFi across 170 test locations in the New York City-Tristate area. The testing period will last 6 months, the success of which will result in the collaborative installation of 1,000 additional Bodega Stores in a 50/50 joint venture.

    Synchronicity with Execon

    The WiFi managed services company, Execon, will facilitate the implementation of WiFi6 infrastructure and manage and monitor the broadband internet at various Bodega stores. Execon will connect participating stores, while Cuentas will connect customers via the WaveMax platform, driving customer savings and greater value. The WaveMax mobile ecosystem will encourage an enhanced user and shopping experience, with Cuentas customers having access to discounts for purchases and rewards, this driving in greater net revenues.

    Healthy Financials

    The company’s balance sheet for the first quarter of 2021 improved drastically, largely as a result of a successful USD$12 million capital raising venture, The underwritten public offering saw the generation of USD$10.6 million in net proceeds. The capital raised was allocated towards the repayment of all of its financial debt, including USD635,000 to Labrys, USD$378,000 to Dinar Zuz, and a USD$260k convertible loan with interest to A.Ghershony.

    Future Outlook for CUEN

    Armed with a solid liquidity position, the company is poised to capitalize on the opportunities afforded to it by the expansive scope of its collaborative ventures. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Stamps.com, Inc. (STMP) Stock Skyrockets Following Announcement of Acquisition by Thoma Bravo

    Stamps.com, Inc. (STMP) Stock Skyrockets Following Announcement of Acquisition by Thoma Bravo

    Stamps.com, Inc. (STMP) stock prices were up by a marginal 0.36%, bringing it up to USD$197.72 as of the market closing on July 8th, 2021. Premarket fluctuations saw the stock skyrocket by 63.55%, bringing it up to USD$323.38.

    Merger with Thoma Bravo

    July 9th, 2021 saw the company announce that it had entered into a definitive agreement that would see it being acquired by the leading software investment firm, Thoma Bravo. As per the agreement, the transaction will be conducted entirely in cash, with STMP being valued at roughly USD$6.6 billion.

    Details of the Merger

    Stockholders of the company will receive USD$330 per share in cash, which represents an impressive 67% premium over the company’s closing share price on July 8th 2021. The premium represents a 71% increase from the company’s volume-weighted average closing share price over the three-month period ended July 8th, 2021.

    Expanded Scope of STMP

    Upon the closing of the transaction, STMP will become a private company with the added resources and increased flexibility to ensure the continued provision of best-in-class global e-commerce technology solutions. Furthermore, the company will benefit from the operating capabilities, capital support, and deep sector expertise of its partner.

    Go-Shop Option

    The agreement includes a 40-day period that will expire on August 18th, 2021, wherein the company is allowed to actively initiate, solicit, and consider alternative acquisition proposals from third parties. Should this be exercised, the Board will have the right to void the merger agreement in favor of entering a superior proposal. The transaction is expected to close in the third quarter of 2021, pending customary closing conditions, including, but not limited to stockholder approval and the receipt of regulatory approvals.

    Benefits of the Merger

    With the expanded financial and operational resources generated from the merger agreement, the company can continue capitalizing on more and more growth opportunities. STMP hopes to maximize market penetration in the e-commerce shipping market, while consolidating its position as a leader in global multi-carrier e-commerce shipping software. This position of leadership is evidenced by the company being the first of its kind to introduce online postage, as well as its having been an early innovator in e-commerce shipping software.

    Future Outlook for STMP

    Armed with the expansive potential of its pending merger with Thoma Bravo, STMP is poised to capitalize on the opportunities afforded to it in light of the combined pool of resources available to it. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to sustain the successful trajectory of growth over the long term.

  • Uxin Limited (UXIN) Stock Prices Plummets Following Financing Transaction Announcement

    Uxin Limited (UXIN) Stock Prices Plummets Following Financing Transaction Announcement

    Uxin Limited (UXIN) stock prices were down by a significant 12.64% as of market close on June 21st, 2021, bringing the price per share down to USD$3.94 at the end of the trading day. Subsequent pre-market fluctuations saw the price fall sharply by an additional 5.58% to hit USD$3.72.

    USD$315 Million Financing Transaction

    June 15th, 2021 saw the company announce the entering into definitive agreements with NIO Capital and Joy Capital, who will invest a total of up to USD$315 million in UXIN as per the terms of the agreements. The company has concurrently agreed with current holders of convertible notes to convert notes in an aggregate principal amount of USD$69 million into Class A ordinary shares.

    Transition to Inventory-Owning Model

    Almost the entirety of the transaction volume sold over the course of Q4 2020 was done so from the company’s own inventory, marking the culmination of the transformation into an inventory-owning business model. To facilitate this move and maintain standards of quality, UXIN has started construction in Xi’an for its first inspection and reconditioning center.

    Preferential Government Policies

    The company has seen massive growth in the potential of the Chinese used car market, primarily driven by the facilitation of that growth with preferential policies from the Chinese government. An example of such a change is the reduction of VAT from 2% to 0.5% on used car sales. Restrictions from before were recently lifted across all regions as per a mandate of the General Office of the State Council. Chief among these was the restriction on cross-regional transactions and title transfers of used cars.

    Transactions Facilitate by Changed Policies

    Another such facilitation of accessibility in the used car market is the simplification of the documentation process, which has been completely digitized. Reductions in title transfer costs and the increase in the efficiency of cross-regional used car transactions has further bolstered UXIN.

    Strategic Partnership with JD.com

    UXIN recently announced the launching of its partnership with JD.com to launch a self-operated online store for used car transactions through the partner’s proprietary online platform. This move serves to provide customers with a one-stop shop for their online used car purchasing and selling needs. In order to provide unparalleled consumer experiences, the collaborative platform will provide users with car inspection, purchasing, insurance, and aftersales services solutions.

    Future Outlook for UXIN

    UXIN has recently established impressive financial results, and it has formed strategic partnerships with big-name companies, granting it a competitive edge in the used car market. The company is keen to recover from the recent suffering of its equity value. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Naked Brand Group Ltd. (NAKD) Stock Prices Trending Down as Pandemic Continues to Devastate the Economy

    Naked Brand Group Ltd. (NAKD) Stock Prices Trending Down as Pandemic Continues to Devastate the Economy

    Naked Brand Group Limited (NAKD) stock prices were down by 2.60% as of market close on June 15th 2021, bringing the price per share down to USD$0.7169 at the end of the trading day. Subsequent pre-market fluctuations saw the price fall by another 1.45%, bringing it to USD$0.7065.

    New e-Commerce Status Quo

    with the onset of the global coronavirus pandemic having devasted the retail space with the forced closure of brick-and-mortar stores, buyers and sellers have turned to e-commerce. NAKD, too, has followed this trend as a means of circumventing pandemic-related regulations and government-mandated restrictions. The company went so far as to completely dispose of its brick-and-mortar operations on account of their lack of profitability, as per an announcement near the start of the fiscal year 2021.

    Bendon Ltd. Divesting

    The drastic restructuring efforts culminated in the signing of a nonbinding and non-exclusive term sheet that would see the divestment of NAKD from its subsidiary Bendon Ltd. The subsidiary will be divested to a group composed of existing NAKD management, as the company focuses its attention exclusively on its strategy to facilitate the rapid acceleration of the proliferation of its e-commerce business.

    Reallocation of Resources

    Subsequent to the completion of the divestiture, the allocation of resources and efforts towards the development of the Frederick’s of Hollywood online business has taken top priority. NAKD has also indicated plans to capitalize on the strategic acquisitions available in the e-commerce market space. This is done in the hopes of not only consolidating the existing online business but facilitating the additional generation of cross business operational synergies.

    Scope of e-Commerce Business

    Recent capital generation has had the funds deployed for complimentary growth business in the e-commerce sector, which boasts high margins. This move could also see future investments in technologies to better serve customers with a positive experience of the company’s online offerings. The company finds itself with unprecedented capital to invest where it sees fit, given the absence of the unprofitable Bendon business leeching capital to keep it afloat amid consistent and significant losses.

    Future Outlook for NAKD

    After the completion of the divesting project that was in the works for a very long time and presented many obstacles to the management team from an operational and financial standpoint, the company is poised to capital on its newfound weightlessness. With a strong balance sheet, no reported debt, and an operating model that is asset-light, the company forecasts continued success in a very favorable M&A environment in global e-commerce businesses. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Why Medigus Ltd (NASDAQ: MDGS) Stock Is Skyrocketing Today?

    Why Medigus Ltd (NASDAQ: MDGS) Stock Is Skyrocketing Today?

    Share of Medigus Ltd. (NASDAQ: MDGS) soared 65.61% on Tuesday after the company disclosed that it was informed by Smart Repair Pro, Inc. that it has received the approval of Amazon for the opening of its stores in five leading countries including France, Spain, Germany, Italy, and the UK. Smart Repair Pro is the data-driven e-commerce company that is currently operating in Amazon’s marketplace.

    Medigus, medical devices company has earlier announced that it has entered into the e-commerce business by signing the contract with Smart Repair Pro, Inc. and Purex, Inc. Medigus has bought the controlling interest in Smart Repair and Purex Inc. It has got the ownership of 50.01% of the issued and outstanding share capital of each of the companies. The closing of the agreement based on certain conditions.

    Medigus announced that it will invest $1,250,000 in the Companies, pay $150,000 in cash consideration to the current shareholders. It will issue $500,000 worth of restricted ADSs of Medigus to the current shareholders of such companies, with the value of restricted ADSs to be subject to downward adjustment based on the companies’ 2020 results.

    Shares of Medigus Ltd. (NASDAQ: MDGS) traded up 65.61% as it gained +1.24 on the trading session of Tuesday. It has a 52-weeks low range of $0.83 and a 52-weeks high range of $5.15. This company has traded up 277.11% from its 52-weeks low and moved down -39.22% from its 52-weeks high. This company has a total market capitalization of $14.48 million at the time of writing.

    Smart Repair Pro and Purex Inc. are currently engaged in the management of three successful brands on the Amazon marketplace. The e-commerce companies are offering a wide range of products to their customers. The initial information, these companies have provided to Medigus is that the revenue target of companies is approximately $3 million with a net profit of approximately 35% in 2020.

     

  • Carvana (NYSE: CVNA) Stock Is Soaring. Here’s Why.

    Carvana (NYSE: CVNA) Stock Is Soaring. Here’s Why.

    Carvana Co. (NYSE: CVNA) revealed that it has decided to offer up to $1.0 billion in aggregate principal amount of Senior Notes, including $500,000,000 aggregate principal amount of Senior Notes due 2025 and $500,000,000 aggregate principal amount of Senior Notes due 2028. These Senior Notes would be based on certain market conditions and other factors.

    The company is planning to use a portion of the profit from these offerings to redeem in full $600 million aggregate principal amount of its outstanding 8.875% of Senior Notes which are due in 2023.  Carvana has decided to use the remaining net profit to pay expenses and for many other business purposes.

    The leading e-commerce platform for buying and selling used cars has also revealed that the notes will not be registered under the Securities Exchange Act of 1933 and will not be sold or offered to any person without registration or those who are not qualified to buy these notes. These notes will only be offered to those qualified buyers who fulfilled the requirements in accordance with Rule 144A.

    Carvana Co. has also announced that it is foreseeing a record-breaking performance in Q3 2020 in various metrics including Total revenue, Retail units sold, Total gross profit per unit, and EBITDA margin. The company said that the momentum it saw in Q2 also accelerated into the Q3. Carvana saw a record-breaking performance in 2020 and provides the best experience to its customer and adopt all changes which 2020 brought in its business.

    Carvana Co. (NYSE: CVNA) shares went up 30.61% as it gained +53.16 during the trading session of Tuesday. In the past 52-weeks of trading, this company stock has fluctuated between the low range of $22.16 and a high range of $235.00. It has traded up 923.60% from its 52-weeks low and traded down -3.48% from its 52-weeks high. Looking at its liquidity, it has a current ratio of 4.20. This company market capitalization has remained high, hitting $39.09 billion at the time of writing.

     

     

  • United Parcel Service (NYSE:UPS) Stock Is Plunging. Here’s Why

    United Parcel Service (NYSE:UPS) Stock Is Plunging. Here’s Why

    United Parcel Service, Inc (NYSE: UPS), a world’s largest package delivery company has held well through the pandemic but its share has tumbled down 4.68% after losing -7.76 on Thursday. UPS is known for its letter and package delivery, logistics, specialized transportation, and financial services. It delivers millions of packages around the world each day.

    United Service Parcel is continuously improving its logistics and strives to give customers flexibility and security. UPS is now open for business and continue with daily pickup and deliveries. As the pandemic has disrupted the various businesses around the world, UPS has also experienced the shock but it held well and continues to deliver worldwide where permitted.

    United Service Parcels’ main priority is to ensure the health and safety of its customers and workforce. It has implemented the constant monitoring of air and ground networks to address sources of disruption. COVID-19 has badly affected businesses like UPS but also increases the opportunities for many businesses as e-commerce growth increases.

    Shares of United Parcel Service went down 4.68% as it lost -7.76 on Thursday. In the past 52-weeks of trading, this company’s stock has oscillated between the low of $82.00 and a high of $166.20. UPS has moved up 92.71% from its 52-weeks low and moved down -4.92% from its 52-weeks high. If we look at its profitability, it has a return on assets, equity, and investment of 7.50%, 106.20%, and 23.10%, respectively. United Parcel Service market capitalization has remained high, hitting $134.62 billion at the time of writing. Focusing on its liquidity, it has a current ratio of 1.20.

    If we compare the sales of United Parcel Service of 2019 and 2020, it has generated $71.86 billion in sales. While in 2020 Q2, its sales rose 13% to $20.46 billion. Meanwhile, its earning increases by 9% to $2.13 per share. Its earnings beat analyst’s expectations because of increasing demand for e-commerce deliveries. United Parcel Service has spent more to adapt to e-commerce growth and implement new strategies that are helpful for the business.

    United Parcel Service has a major role in the fight against the pandemic as the government around the world has labeled it as an essential service provider. It has earlier experienced the hit because of the transition in its management. Earlier this year, its COO Jim Barber has announced his plan to resign from his position in December 2019.

    UPS’s main rival is FedEx but there are some major differences in their services. United Parcel Service’s main focus is retail customers and small businesses. They also offer some postal and shipping related services. UPS has a single pickup and delivery network and its competitive edge is its domestic ground delivery services. While its rival FedEx specialty is the rapid delivery of packages and time-sensitive mail. UPS stock is not currently providing a valid buy point.