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09.26.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 12/21/21: Does Today Start The Santa Claus Rally?"

posted by CAPIS on 12/21/2021 at 8:21 am

by CAPIS

12/21/2021 at 8:21 am

Overnight SummaryStocks began to rebound on news from Japan that Omicron is not as deadly as perceived. Overnight President Biden announced that 500 million test kits will be sent to American homes and military doctors will be sent to hospitals to help out. S&P 500 began the overnight session at 4550 and are at 4602.50 at 7:20 a.m. EST up +44 or 0.97%. Europe and Asia are in rebound mode as well.

Earnings Out After The Close:

  • Beats: NKE +0.20, MU +0.05, CVGW +0.03
  • Flat: None.
  • Misses: None.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched:
    • VPC Impact Acquisition Holdings III (VPCC) to list on the Nasdaq under ticker “DAVE” on or around January 5, 2022, following completion of its business combination with Dave Inc.
    • Zanite Acquisition Corp (ZNTE): Eve, an Embraer (ERJ) company, to list on NYSE through business combination with ZNTE.
    • Decarbonization Plus Acquisition Corporation II (DCRN) and Tritium Announce Filing of Definitive Proxy Statement and the January 12, 2022 Special Meeting to Approve Proposed Business Combination.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CANF: Exercise of Warrants for Cash Proceeds of $10 million.
    • NLSP: Filed Form F-1.. 1,474,853 Common Shares.
    • OBLG: Filed Form 424B3.. 3 million of common shares stock.
    • Qudian (QD) Chairman & CEO to Purchase Up to US$10 million of ADSs.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note. 
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • KZR: Filed Form S-3ASR .. $200 million mixed shelf.
  • Convertible Offering & Notes Filed
    • Franchise Group, Inc. (FRG) to Repay $400 Million of Debt With Proceeds From the Sale of the W.S. Badcock Consumer Credit Accounts Receivable Portfolio.
    • HP (HPQ) Commences Registered Exchange Offer of its 1.450% Notes due 2026 and 2.650% Notes due 2031.
    • Hilton Grand Vacations (HGV) Refinances and Increases Credit Facility to $1 billion.
    • LCID: Full Exercise of Convertible Notes Greenshoe, Raising an Aggregate Total in Excess of $2 billion USD; Equity Shares Begin Trading Today as Part of Nasdaq-100 Index.
    • Performant Financial Corporation (PFMT) announces $35 million debt refinancing.
  • Note Offerings Filed: None of note.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close:

  • After Hours: 
    • Trading Up: MU +7%, BRZE +6%N ACAD +5%, PSN +4%, NKE +3%
    • Trading Down: ALDX -32%, CTMX -19%, DBVT -15%
  • News Items After The Close:
    • London New Year’s Eve celebration canceled over Omicron surge. (NY Post)
    • New York reports 23,391 new coronavirus cases, the biggest one-day increase on record, of which 15,245 are in New York City.
    • Omicron Variant Accounts For 73% Of U.S. Coronavirus Infections Based On Sequencing Data US CDC.
    • Electric vehicle stocks tumble after Senator Joe Manchin rejects President Biden’s climate and social plan. (ELMS, RIDE, RIVN, FFIE, NKLA) (CNBC)
    • Amgen (AMGN) gets FDA approval for Otezla for treating plaque psoriasis.
    • Procter & Gamble (PG) pulls Pantene, Aussie, Herbal Essences and Waterless aerosol products as benzene detected in some products which is cancer causing.
    • Boeing (BA) awarded $330 million Air Force contract.
    • U.S. Army awards Parsons (PSN) $38 million Task Order for Tactical Applications.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • China Online Education Group (COE) Announces Receipt of NYSE Non-Compliance Letter.
    • Callon Petroleum Company (CPE) Announces Appointment of Mary Shafer-Malicki to Board of Directors.
    • Stratasys (SSYS) names Eitan Zmair as CFO.
    • Caledonia Mining Corporation Plc (CMCL): Steve Curtis To Step Down as CEO.
    • Glaukos (GKOS) Chairman William Link, Ph.D. to retire effective December 31, 2021.  Company appoints current CEO, Thomas Burns to serve as Chairman.
    • KKR Real Estate Finance Trust Inc. (KREF) announces new CFO, Kendra Decious effective March 2, 2022.
    • Edward G. Atsinger III Transitions to Executive Chairman of the Board of Salem Media Group (SALM); David Santrella to Chief Executive Officer and David Evans to Chief Operating Officer.
    • Skechers (SKX) Announces Changes to Its Board of Directors
  • Buyback Announcements:
    • Hayward Holdings (HAYW) Announces Authorization of a $450 million Stock Repurchase Program as Component of a Broader Capital Allocation Strategy.
    • TimkenSteel (TMST) Announces $50 Million Share Repurchase Program and Capital Expenditure Budget for 2022
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • ServisFirst Bancshares, Inc. (SFBS) Increases Quarterly Cash Dividend by 15%

What’s Happening This Morning: Futures value reflects the change with fair value.

S&P 500 +44 Dow Jones Industrial Average +300 NASDAQ +184 Russell 2000 +29. Asia lower and Europe lower. VIX is at 23.50 from 24.10 yesterday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $130.95 from $131.41 with yields at 1.451% from 1.383% yesterday morning. Bitcoin at $48,725 from $47,060.51 yesterday morning and +4.00%. As of 8:00 a.m. EST.

Monday’s Action – 12/20 Close:  

  • Daily Positive Sectors: none of note.
  • Daily Negative Sectors: Consumer Cyclical, Financial, Industrials, Basic Materials, Technology, Energy, Real Estate, Communication Services, Healthcare of note.
  • One Month Winners: Utilities, Consumer Defensive, Real Estate of note.
  • Three Month Winners: Energy, Basic Materials, Technology of note.
  • Six Month Winners: Technology, Real Estate, Utilities of note.
  • Twelve Month Winners: Energy, Real Estate, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Real Estate  of note.

Lets get that Clausometer turned up (shout out Elf). Markets had another big red candle day.  All indexes down over 1%. Updated 12/20 close.

Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)

  • Tuesday After the Close: AIR, BB, CAMP of note.
  • Wednesday Before the Open: CTAS, PAYX, KMX, MSM of note.

Earnings of Note This Morning:

  • Beats: RAD +0.33, FDS +0.25, CGNT +0.11, APOG +0.10
  • Flat: none
  • Misses: GIS (0.06)
  • Still to Report: EPAC, NEOG

Erlanger Research Advance/Decline Chart: Updated through 12/20 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: CTXS +9%, MU +8%, OSH +6%, TRMB +5%
    • Gap Down: GIS -4%

Insider Action: No stock sees Insider buying with dumb short selling and no stock has smart short sellers with insider buys. 12/20 close

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Five Things To Know To Start Your Day. (Bloomberg)
  • Stocks Making the Biggest Moves: NKE MU BRZE CTXS GIS MRNA NKLA (CNBC)
  • Covid-19 cases continue to rise as U.S. reported 88.379 cases against 46,143 cases a week ago. 58,793 Hospitalizations versus 54,333 a week ago. Tuesday numbers are always lower.
  • NIH Director Dr. Fauci notes that travels restrictions could be eased to South Africa soon as Omicron cases continue to drop. (Reuters)
  • The Northeast continues to cancel events and buckle down due to Omicron while the South and Midwest continue life as normal. (WSJ)
  • House leaders want President Biden to move forward with Build Back Better through Executive Orders. (Bloomberg)
  • U.S. will deploy troops to help hospitals during omicron wave, distribute 500 million free Covid tests starting in January. (CNBC)
  • Gilead Sciences (GILD) receives European Commission (EC) expands Remdesivir use for adults not on Supplemental Oxygen and considered high risk for Covid-19.
  • NHL begins its holiday break early and will resume practice on Sunday. (NHL)
  • Tesla (TSLA) is rumored to be behind giant deal to bring LFP battery cell production to the US.  (Electrek)
  • Vista Partners and Elliott Associates may bid for Citrix (CTXS). (Reuters)
  • Russia’s President Putin Says West Is To Blame For Global Tensions.
  • Robinhood looks at the death of Build Back Better.

Moving Average Update:

  • Green Good!  Red Bad.  We are getting too red!  Score pulls back to 13% from 26%. Updated 12/20 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President and The Vice President receive the President’s Daily Brief, 10:05 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 1:00 p.m. EST
    • The President delivers remarks on the status of the country’s fight against COVID-19, 2:30 p.m. EST

Economic

  • Redbook Sales 8:55 a.m. EST
  • API Crude Oil Data 4:30 pm EST 

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • Atkore Inc. (ATKR) Announces Acquisition of Sasco Tubes & Roll Forming Inc.
  • AES Acquires (AES) US Renewables Developer Community Energy Adding 10 GW of Renewable Projects to Growth Pipeline.
  • BD (BDX) Acquires Scanwell Health, Inc. to Expand and Scale Digital At-Home Testing.
  • DigitalBridge (DBRG) Closes Sale of Other Equity & Debt Portfolio to Fortress Investment Group.
  • Host Hotels & Resorts (HST) Acquires The Alida, Savannah and Disposes of W Hollywood.
  • Otis (OTIS) Reaches Agreement for Euro-Syns to Tender its Full Stake in the Cash Tender Offer for Zardoya Otis Shares.
  • Progenity (PROG) Completes Exit from Laboratory Business with Sale of Affiliate Lab.
  • Stewart (STC) Further Strengthens Market Share with Acquisition of Greater Illinois Title.
  • UFP Industries (UFPI) acquires Advantage Label & Packaging, adding labels and labeling equipment to its industrial packaging offerings.
  • Visa (V) Completes Acquisition of Currencycloud.

Meeting & Conferences of Note:

  • Sellside Conferences:  None of note. 
    • Previously Posted and Ongoing Conferences:
      • None
  • Company Meetings: 
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: BSGM
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings: None of note.
      • Previously Posted and Ongoing Conferences:
        • None.

Top Tier Sell-side Upgrades & Downgrades:

The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting it to make the reader aware of market moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.

Today’s Upgrades and Downgrades:

Monday’s Upgrades and Downgrades:

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