Archive for April, 2021

• Update on FactSet
  Eddy Elfenbein, April 26th, 2021 at 10:10 am

  Shares of FactSet (FDS) are down some today to around the $340-$341 range. There hasn’t been any hard news on FDS to follow Friday’s surge on buyout rumors.

  It’s always hard to look at your stocks when they’ve been impacted by rumors. You never know what’s true. Also, the surge on the share price could impact whatever negotiations might be going on. There’s also the chance that the rumors were placed by one of the parties in the negotiations. You never know.

  On Friday, FDS got as high as $365.77 per share before it closed at $347.10 per share. On Thursday, FDS closed at $323.79 per share.

  FDS has been the subject of buyout rumors before. Moody’s and MSCI have been named as potential acquirers.

• Check Point Software Earns $1.54 per Share
  Eddy Elfenbein, April 26th, 2021 at 7:47 am

  This morning, Check Point Software (CHKP) reported Q1 earnings of $1.54 per share. That beat Wall Street’s estimate by four cents per share. Quarterly revenues rose 4% to $508 million and operating income was up 49% to $246 million. EPS increased by 9%.

  “We are pleased with our first quarter 2021 financial results. Revenues and non-GAAP earnings per share were toward the high-end of our guidance with CloudGuard bolstering this success with nice double-digit growth,” said Gil Shwed, Founder and CEO of Check Point Software Technologies.

  “The cyber threat landscape is reaching new levels of risk and requires a holistic security architecture to prevent the next cyber pandemic. Our Infinity architecture can uniquely address these needs and consolidate security for the user, the network and the cloud to prevent Gen V cyber-attacks.”

  Check Point now has more than $4 billion in cash. Last quarter’s cash flow from operations was $375 million. During the quarter, Check Point bought back 2.7 million shares for about $325 million.

  CHKP is up about 1.4% in pre-market trading.

• Morning News: April 26, 2021
  Eddy Elfenbein, April 26th, 2021 at 7:15 am

  Oil Falls on India’s COVID Surge, Supply Increase

  ‘Chlorinated’ U.S. Chickens Convince British Consumers the Sky Is Falling

  China Widens Internet Crackdown

  Fed’s ‘Maximum Employment’ Push May Fall Short in Post-Pandemic Economy

  Fed to Taper Bond Buying in Fourth Quarter, Economists Say

  As U.S. Capital Gains Tax Hike Looms, Wealthy Look for Ways to Soften the Blow

  New Proposal to Lower Medicare Age to 50 Could Be a Lifeline to Millions

  U.S. Auto Dealers Are Winners As Chip Shortage Lifts Vehicle Profits

  To Be Tracked or Not? Apple Is Now Giving Us the Choice.

  Breaking Point: How Mark Zuckerberg and Tim Cook Became Foes

  The Slander Industry

  Jeff Carter: Do You Feel Like You Deserve It?

  Michael Batnick: Liquidation

  Howard Lindzon: Social Leverage – It Works 24/7/365 And In Mysterious Ways

  Ben Carlson: The Case For a Having a Fun Portfolio, Talk Your Book: Why the Real Estate Bull is Just Getting Started & All Models Are Wrong But Some Are Useful

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• FactSet Jumps on Buyout Rumors
  Eddy Elfenbein, April 23rd, 2021 at 1:59 pm

  FactSet (FDS) has been up as much as 13% today on rumors that it’s being bought out. I haven’t seen anything to confirm this.

  

• Peter Lynch on “How Low Can It Go?”
  Eddy Elfenbein, April 23rd, 2021 at 1:06 pm

• Morning News: April 23, 2021
  Eddy Elfenbein, April 23rd, 2021 at 7:01 am

  Change Afoot for Oil Market as Asian Demand Wanes, Iranian Supply Rises

  Now That Everyone Is Bullish, Be Cautious

  Biden Plans ‘Real Money’ For Jobs Training, Unions, Economic Adviser Says

  Biden Will Seek Tax Increase on Rich to Fund Child Care and Education

  Biden Bid to Raise Economic Speed Limit Gets Boost From Business

  Scale of T-Bill Drought Hinges on Biden Rescue, Income-Tax Haul

  Bitcoin Sinks Below $50,000 As Cryptos Stumble Over Biden Tax Plans

  International Manhunt Starts for CEO of Collapsed Crypto Exchange

  The Ex-Convict’s Tale: Germany’s Role in Wirecard Scandal Under Microscope

  Battle of the Seas: Cruise Lines vs. the C.D.C.

  Curt Schilling’s $150 Million Fail Shows What’s Broken in Video Games

  Intel Earnings Crushed Estimates. Why Its Stock Is Dropping.

  JPMorgan’s Daniel Pinto Breaks Silence on Super League, Talks SPACs

  Joshua Brown: Dogecoin & the Deli

  Ben Carlson: The Two Most Underappreciated Forces Driving Markets Today

  Michael Batnick: Animal Spirits: Why the Real Estate Bull is Just Getting Started

  Howard Lindzon: Brad Feld, Managing Director of Foundry Group, Joins Me on Panic with Friends to Discuss Decentralization in a Post-COVID World (EP.146)

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• Danaher Beats the Street
  Eddy Elfenbein, April 22nd, 2021 at 11:28 am

  Today was Danaher’s (DHR) turn. The company reported a blow-out earnings report for its fiscal Q1. Danaher made $2.52 per share which was far above Wall Street’s consensus of $1.75 per share.

  The company now sees Q2 revenue growth “in the mid-20 percent range,” and full-year revenue growth “in the high-teens percent range.”

  Rainer M. Blair, President and Chief Executive Officer, stated, “We had a very strong start to the year, delivering better-than-expected first quarter results across our portfolio. This broad-based outperformance was driven by double-digit core revenue growth in our base business, and our ongoing contributions to the development and production of COVID-19 vaccines, therapeutics and diagnostic tests. Our record top-line performance contributed to strong earnings per share growth and cash flow generation and, we believe, continued market share gains in many of our businesses.”

  The stock has been up as much as 4.8% today.

  This morning’s jobless claims report was 547,000, which is another pandemic low. That was 50,000 below forecasts. It’s possible that the next nonfarm payrolls report could top one million.

• Morning News: April 22, 2021
  Eddy Elfenbein, April 22nd, 2021 at 7:06 am

  Global Virus Resurgence Threatens Vigorous Growth Momentum

  Oil Extends Losses on U.S. Stock Build, Pandemic Concerns

  Welcome to the YOLO Economy

  Biden Administration Debating How to Overhaul a Trump-Era Tax Break

  Biden Plans Deep U.S. Emissions Cuts, Restoring Plan Trump Scrapped

  U.S. Senators Question Apple and Google on App Store Dominance

  Chevron Lobbies to Head Off New Sanctions on Myanmar

  Jack Ma Shows Why China’s Tycoons Keep Quiet

  JPMorgan Reportedly Hiring More Junior Bankers to Battle Burnout

  Credit Suisse Raises $2 Billion as CEO Cuts Hedge Fund Unit

  Chipotle Earnings Smash Estimates As Online Sales Overtake In-Person Orders

  The ‘Greening’ of the S&P 500: 7 Charts for Earth Day

  An E.V. Start-Up Backed by UPS Does Away With the Assembly Line

  Ad Giant WPP Pledges Net Zero Emissions by 2025

  Jake Paul Promised Them Fame. Was It Worth The Price?

  Ben Carlson: Animal Spirits: The Dumbest Week Ever

  Michael Batnick: I Don’t Shop

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• Middleby Is Buying Welbilt
  Eddy Elfenbein, April 21st, 2021 at 3:27 pm

  We got our second Buy List deal recently. Last week, Thermo Fisher said it’s buying PPD.

  Now Middleby (MIDD) is buying Welbilt (WBT) for $2.9 billion. This is from the press release:

  • Combination will create a premier food equipment company with a leading commercial foodservice portfolio

  • Combined business is well positioned to deliver enhanced value for customers through complementary, best-in-class products, unmatched service and forward-thinking technology solutions

  • Accelerates key investments in new product development, aftermarket capabilities, connectivity and digital solutions

  • Expands international operations, particularly in higher-growth regions across the globe

  • Clear path to driving $120 million in operational improvement with $100 million run-rate cost synergies and additional $20 million in Welbilt stand-alone Business Transformation Program annual improvement

  • Immediately accretive to adjusted EPS with greater than 10% annual accretion by year two

  • Equity consideration mix maintains the Middleby balance sheet flexibility and reserves capacity for future strategic investments in the business, M&A or stock buybacks

  This is an all-stock deal. Welbilt shareholders will get 0.124 shares of Middleby for each Welbilt share they own. That’s a 28% premium.

  Middleby is actually rallying on the news, so Welbilt is rallying even more. Normally, the shares of the buyer take a hit, especially when it’s a cash deal.

• Morning News: April 21, 2021
  Eddy Elfenbein, April 21st, 2021 at 7:04 am

  Twelve U.S. States Urge Biden to Back Phasing Out Gas-Powered Vehicle Sales by 2035

  SPAC Transactions Come to a Halt Amid SEC Crackdown, Cooling Retail Investor Interest

  How Robinhood Made Trading Easy—and Maybe Even Too Hard to Resist

  Netflix Plunges After Pandemic Boom Shudders to Near-Halt

  Apple’s New Devices Target Markets Led by Smaller Rivals

  Romanian Programmer Turns ‘Crazy Idea’ Into $6 Billion Fortune

  Developers Flock to Cold Storage as Americans Stock Their Freezers

  Amazon to Let Whole Foods Shoppers Pay with A Swipe of Their Palm

  Europe’s Rebel Soccer League Collapses After Fans Force Exit

  Foxconn Mostly Abandons $10 Billion Wisconsin Project Touted by Trump

  Harley-Davidson Is In An Existential Battle With Europe

  Restaurants Dangle Bonuses Amid Labor Shortage — And Workers Aren’t Biting

  Joshua Brown: There’s Coin on the Sidelines

  Howard Lindzon: The Creator Economy – Crash Course

  Michael Batnick: Coins on the Sidelines

  Ben Carlson: How Much Is Your Time Worth?

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