Today is Wednesday, April 6, 2022.
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JetBlue Goes All in for Spirit
Announcement: JetBlue’s offer to acquire Spirit is for $33 per share and an overall value of $3.6 billion. This represents a 50% premium to Spirit’s closing share price on Monday. No JetBlue shareholder vote is needed, according to the company.
Response: Spirit announced Tuesday afternoon that it received the unsolicited proposal from JetBlue and will now evaluate it.
Background: In February, Spirit entered into a merger agreement with Frontier Airlines (NASDAQ: ULCC) that includes stock and cash. JetBlue said that its proposal is “superior” to the Frontier deal.
Numbers: Both of these stocks have struggled through the past 12 months. Spirit is down 29% during that time and JetBlue is down 35%.
Final Thoughts: The big question is will regulators allow JetBlue to acquire Spirit?
Notable Earnings Today: Tilray (Nasdaq: TLRY), Levi Strauss (NYSE: LEVI), Greenbrier Companies (NYSE: GBX), IronNet (NYSE: IRNT), Schnitzer Steel Industries (Nasdaq: SCHN), Resources Connection (Nasdaq: RGP), RPM International (NYSE: RPM), Simulations Plus (Nasdaq: SLP), Simply Good Foods (Nasdaq: SMPL), Sprinklr (NYSE: CXM), Byrna Technologies (Nasdaq: BYRN), Skillsoft (NYSEL: SKIL), Midwest Energy Emissions (OTCQB: MEEC), ClearSign Technologies (Nasdaq: CLIR).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Delee (StartEngine), GrownbyGreen (MainVest), The SMART Tire Company (StartEngine).
Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET), FOMC minutes (2:00 p.m. ET).
Dogecoin Jumps As Elon Joins Twitter's Board
Details: A day after Musk announced that he bought a 9% stake in Twitter, the social media giant disclosed in a filing that Musk will join the company’s board. There is a provision that Musk cannot own more than 14.9% of the company’s stock.
Background: Dogecoin, seen by some as the ultimate meme coin, soared in popularity last year thanks in part to Musk who publicly endorsed the cryptocurrency on social media.
Recent History: In the past few months, Dogecoin has been down. Tuesday’s gains were a pleasant surprise.
Final Thoughts: And even though Dogecoin had a spectacular day, the prices of most other cryptos dropped on Tuesday.
The Advantages of a Stock Split
Here are some of the benefits of having a stock split for a company.
More Liquidity: A stock split increases the number of shares and results in a lower price per share, which is positive for liquidity purposes.
Accessibility: Don’t want to pay an outrageously high price for a stock? With a stock split, you can buy into the company at a fraction of the price.
Spreading Positivity: A stock split also assures investors that the company is doing well now and there is an expectation that the good times will last.
Final Thoughts: If you are looking for a stock split, several big companies have announced them recently.
Trends to Watch
Out of Business: Fast, the easy checkout startup, shuts down after burning through investors' money (NPR)
No Longer in Use: FDA pulls authorization for GSK-Vir's COVID therapy as BA.2 cases rise (Reuters)
The State of Equity Crowdfunding: Jonny Price, VP of Fundraising With Wefunder, Explains the Boom in Equity Crowdfunding (Grit Daily)
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