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America’s large-cap benchmarks closed Friday’s session within 0.1% of where they opened it, while the small-cap Russ2K sold off.
Dow [-0.1%]
S&P 500 [<0.1%]
Nasdaq [+0.1%]
Russell 2K [-1.6%]
Index futures are edging lower in early trading. S&P 500 contracts are currently sitting just below flat.
Will stocks stay in a holding pattern, or could we see a break one way or the other this week? That’s the question on many investors’ minds as we head into the second half of June 2024.
The Fed appears to be inching closer to rate cuts, and the latest CPI report was the best inflation read we’ve had in a while. However, prices remain very high, and the labor market is showing signs of stagnation.
This uncertainty could translate into a narrow trading range for the stock market in the coming months.
An emerging regenerative medicine company is making significant waves on Wall Street, with shares soaring from $1 to over $11 in just a few months. This biotech firm is capturing the keen interest of investors and research firms alike. With an astounding 1,300% increase in net revenue for 4Q 2023 and a recent price target boost from a notable small-cap research firm to $18.70, this company is poised for explosive growth in the coming year. As it continues to secure key regulatory milestones and gain market traction, getting in early could bring huge potential for massive gains. Activist Investor Starboard Value Grabs Big Stake in Autodesk 📈Starboard Value, led by activist investor Jeff Smith, has acquired a $500 million stake in graphics-design firm Autodesk [ADSK]. The activist fund has engaged with Autodesk's board regarding concerns over the timing of disclosures related to an internal investigation that led to the removal of the company's CFO. Concerns Over Delayed Disclosure ⏳Starboard is particularly troubled by Autodesk's delayed disclosure of an internal investigation, which revealed that executives misled investors about the company's free cash flow metrics and operating margins. The probe, which led to the reassignment of former CFO Deborah Clifford, uncovered manipulation in reporting tied to the company's contract billing structure. Potential Legal Action 🏛️The delayed disclosure, which came after the deadline for nominating directors had passed, has raised concerns within Starboard that Autodesk's board may have intentionally withheld information from shareholders. Starboard is considering legal action in Delaware Chancery Court to reopen the nominating window and delay Autodesk's annual meeting scheduled for July 16. Strategic Improvements and History 📉Starboard believes Autodesk can drive actual margin improvement and enhance investor communications to boost its stock. This isn't the first time Autodesk has faced activist scrutiny; in 2016, it settled with Sachem Head Capital Management and Eminence Capital to avoid a proxy contest. Autodesk is currently under investigation by the Justice Department and SEC. Autodesk's Response 📣An Autodesk spokesperson stated that the company welcomes constructive input from shareholders and is confident in its strategic direction, margin opportunities, and corporate governance. The news of Starboard's stake and concerns was initially reported by the Wall Street Journal. |
Allego [ALLG] - Last Close: $0.7350Allego has agreed to a take-private deal with Meridian that would acquire the company via a tender offer of $1.70 per share. The tender price represents a 131% premium to ALLG’s $0.74 closing bid on June 14th. ALLG will be delisted from the NYSE and become a privately-held company if the tender offer is successful. ALLG is up 129% on over 1.8 million shares traded. My Take: The upside is pretty much gone from ALLG at this point, so I think it’s too late to go chasing after this one if you’re not already in place. Interactive Strength [TRNR] - Last Close: $2.87Shares of Interactive Strength are soaring after the company implemented a 1-for-40 reverse stock split on Friday. Interactive Strength initially sold off in response to the reverse split announcement, and shares fell 16% on Friday alone. TRNR has rebounded to a 73.8% gain in Monday’s premarket on more than 3 million shares traded. My Take: TRNR reverse-split drawdown was apparently a bit overdone. I have noticed many tickers following this path lately after implementing a reverse split. First, they pullback, then they rally. This scenario could be a trade setup worth monitoring for. Scinai [SCNI] - Last Close: $3.49Scinai is running hot after publishing a clinical & business update in a Form 6-K filing published Thursday morning. The presentation provided updates on the company’s pipeline, financial health, and other key areas. Shares have gained steadily through Thursday & Friday’s trading session, and the move higher is continuing in today’s premarket. SCNI is up 88.2% on 9.6 million shares traded at the time of writing. My Take: SCNI is on course to break above a key resistance point at $5 per share. The stock could find significant support at this level if the trend begins to reverse course. Aaron’s [AAN] - Last Close: $7.54Lease-to-own retailer Aaron’s has agreed to be acquired by IQVentures in an all-cash take-private deal valued at $504 million. Under the terms of the agreement, AAN shareholders will receive $10.10 for each share of common stock, a 34% premium from Friday’s closing bid. The deal is expected to close by year-end, and Aaron’s will no longer trade on public markets upon closing. AAN is up 32.7%, but volume is thin at just 200K+ shares traded. My Take: AAN is already pushing up against the acquisition bid, so there’s not any real upside left here. However, this could be a trend worth monitoring if it means VC funds are shopping lease-to-own retailers. |
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Gainers
ENDRA Life Sci. [NDRA] >> +30.5%
Stran & Co [SWAG] >> +17.9%
Venus Concepts [VERO] >> +10.0%
Decliners
Ovid Therapeutics [OVID] >> (64.4%)
Kaival Brands [KAVL] >> (33.2%)
Bluejay Diagnostics [BJDX] >> (27.4%)
Lennar [LEN] ... PM
La-Z-Boy [LZB] ... PM |
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