Today is Wednesday, January 12, 2022.
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Citi Dumps Mexico Business
Shares of Citigroup (NYSE: C) ticked up 0.73% in after-hours trading on Tuesday after the big bank announced that it is exiting from its consumer, small business, and middle-market banking operations in Mexico.
Details: Citi, which has operated in Mexico for over a century, still plans on running its locally-licensed banking business in the country.
Quote: “The decision to exit the consumer, small business and middle market banking businesses in Mexico is fully aligned with the principles of our strategy refresh – we’ll be able to direct our resources to opportunities aligned with our core strengths and competitive advantages, focus on businesses that benefit from connectivity to our global network, and we will further simplify our bank.” - Citi CEO Jane Fraser.
Analysis: The departure results in Citi having its only consumer business in the United States. Hopefully, this allows Citi to reenergize and focus on that U.S. market. Meanwhile, with Citi reducing its worldwide footprint for years now, investors have to ask if this reduction is a bit too much?
Numbers: Shares of Citi are down 3% in the past six months, but up 11.52% over the past 30 days.
Final Thoughts: Citi reports earnings on Friday.
Notable Earnings Today: Jefferies Financial Group (NYSE: JEF), KB Home (NYSE: KBH), Shaw Communications (NYSE: SJR), Volt Information Sciences (NYSEAmerican: VOLT), Aeon (OTCMKTS: AONNY), Concrete Pumping Holdings (Nasdaq: BBCP), Infosys (NYSE: INFY), GreenTree Hospitality Group (NYSE: GHG), Wipro (NYSE: WIT), E2open Parent Holdings (NYSE: ETWO).
Notable IPOs Today: 10X Capital Venture Acquisition Corp. III (NYSE: VCXB), Hillstream BioPharma Inc. (Nasdaq: HILS), Industrial Tech Acquisitions II, Inc. Unit (Nasdaq: ITAQU), Crypto 1 Acquisition Corp Class A Ordinary Shares (Nasdaq: DAOO), Western Acquisition Ventures Corp. Unit (Nasdaq: WAVSU), Gores Holdings IX, Inc. Unit (Nasdaq: GHIXU).
Notable Equity Crowdfunding Campaigns Ending Today: 5th Element Brewing (MainVest), Sticky Fingers Sweets & Eats (SMBX), El Tamarindo (SMBX), MetaMorph Jewelry Studio (Honeycomb), Pip & Lola’s (Honeycomb), Recombinant Technologies (StartEngine).
Notable Economic Events Today: Core CPI (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Beige Book (2:00 p.m. ET), Federal Budget Balance (2:00 p.m.).
Rumored Merger Boosts Dish Network Stock
Shares of Dish Network (Nasdaq: DISH) increased 5.71% in after-hours trading on Tuesday after the New York Post reported that the satellite provider was talking to DirecTV about a potential merger.
Details: The merger talks are being driven by private equity firm TPG Capital, according to the reports.
History: For years, regulators have been opposed to a merger between both satellite providers. But with both companies struggling, there is renewed optimism that there won’t be staunch opposition to a merger.
Numbers: Shares of Dish Network are down 14% in the past six months.
Final Thoughts: While a merger is a possibility, investors probably shouldn’t expect it to absolutely happen.
Clover Health Wants To Be a Winner In 2021
Insurance tech company Clover Health Investments (Nasdaq: CLOV) is trying to turn the ship around after a horrible first year in the public markets.
History: After its initial public offering last January, short-seller Hindenburg Research released a report criticizing the company for failing to disclose that it was under a federal investigation. Since then, Clover became a meme stock and its stock has been down 78%.
The Good: In the company's most recent financial report, revenue for Clover Health was up 153% and membership was up 125%.
The Bad: Due to the pandemic, Clover’s expenses are higher than ever before. The company is currently not profitable.
Final Thoughts: Last week, Credit Suisse downgraded the stock to underweight. This was a bad sign for a company that wants to improve its stock price.
Trends to Watch
We Missed You: Apple's Polishing Cloth is Finally Back in Stock (MacRumors)
Restriction: Medicare Proposes to Sharply Limit Coverage of the Alzheimer’s Drug Aduhelm (The New York Times)
Set In Motion: Chia Network Launches Native Peer-to-Peer Trading Services for Wallet Holders (CoinDesk)
Bravo: GM Takes Aim at Carvana, Vroom With Used-Car Website (The Wall Street Journal)
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