Cigna [CI] - Last Close: $258.80
The health insurance firm is rallying after it announced its withdraw from a previously-announced merger with Humana [HUM] early this morning.
Multiple media outlets are reporting that Cigna pulled out of the deal after a series of disagreements over financial arrangements.
Yesterday, Cigna also said it will add $10 billion to its share buyback program because its stock is so undervalued. Shares are down 22.0% over 12 months.
CI is leading the S&P 500 with a 13.3% gain on the news, and 258K shares have been traded in the premarket, so far.
My Take: CI is beginning to look like an excellent value. This merger wasn’t popular with the market, so Cigna’s decision to pullout could provide the catalyst it needs to pivot into a new positive trend.
Macy’s [M] - Last Close: $17.39
The embattled department store is rallying on reports that an investor group has offered to buyout the company for $5.8 million.
The offer was submitted by Arkhouse Management and Brigade Capital Management on Dec. 1st, and proposed acquiring all shares for $21 apiece.
The offer represents a 32% premium from the stock’s recent closing price.
M is up 15.5% on news of the buyout interest, and over 2.73 million shares have passed hands in today’s premarket.
My Take: M has been building momentum as of late. Shares are up 58.5% over the past 30 days, and the buyout news could kick the trend into overdrive. M’s 14.23% short percentage could also be a nice setup for a short squeeze.
Poseidon Therapeutics [PSTX] - Last Close: $3.16
Early results from a Phase 1 trial of CAR-T BCMA-ALLO1 in relapsed refractory myeloma patients are rallying shares of this tiny biotech.
The company presented the data over the weekend at the 65th American Society of Hematology annual meeting over the weekend.
The drug produced a 82% overall response rate in “heavily pretreated patients,” and it showed a favorable safety and reliability profile.
Poseidon will host a conference call today, at 11 a.m. Pacific, to discuss the data in more detail, but shares are already rallying on the news.
PSTX is one of this morning’s top stocks, with a 25.8% gain on 1.24 million shares traded.
My Take: PSTX has been on a tear as of late. Shares are up 44.2% over the past 30 days, and this catalyst could help it close the gap between its current price point and its previous 52-week high of $8.82.
NextPlay Technologies [NXTP] - Last Close: $0.42
A spat with Nasdaq over a missed deadline for filing its financial reports is shaking up shares of NextPlay Technologies.
Last week, the exchange notified NextPlay that it failed to meet the deadline for filing financial reports for several periods in 2023.
NextPlay had until Dec. 7th to appeal to avoid suspension of its securities, but the company has reportedly made accommodations to file the appeal.
The company believes it can regain compliance before its appeal hearing date with Nasdaq, which hasn’t been officially announced just yet.
Shares of NXTP are up 45.2% with over 6 million shares traded in the pre-bell session.
My Take: NXTP has been on a major slide lately, but the sell off may have been overdone. Today’s rally could be a sign that the market sees value here, and it could mark the beginning of a potential price correction.
