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Bill Ackman's Bid Gets Rejected

Bill Ackman's Bid Gets Rejected

Today is Monday, August 21, 2023.

The Early Bird Index today is 54.46.

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Bill Ackman's Bid Gets Rejected

Hedge fund Sculptor Capital Management (NYSE: SCU) rejected an unsolicited proposal to buy the company on Sunday, saying that the “bidder has not demonstrated adequate committed funding.”

Details: The Wall Street Journal reported on Sunday that hedge fund manager Bill Ackman, along with Marc Lasry and Boaz Weinstein, made a rival offer for Sculptor. The report comes weeks after Sculptor agreed to be acquired by another company.

Stock Price: Sculptor is up 31% this year, including an 18.9% increase in the last 30 days.

Final Thoughts: An acquisition would be beneficial for investors of Sculptor, especially as the company has faced many ups and downs over the past year.

Notables

Notable Earnings Today: Zoom Video Communications (Nasdaq: ZM), Fabrinet (NYSE: FN), Nordson (Nasdaq: NDSN), Flexsteel Industries (Nasdaq: FLXS), Qifu Technology (Nasdaq: QFIN), Lufax (NYSE: LU), Motorsport Games (Nasdaq: MSGM).

Notable IPOs Today: Bukit Jalil Global Acquisition 1 Ltd. Ordinary Shares (Nasdaq; BUJA), Regency Centers Corporation 5.875% Series B Cumulative Redeemable Preferred Stock (Nasdaq: REGCO), Regency Centers Corporation 6.25% Series A Cumulative Redeemable Preferred Stock (Nasdaq: REGCP).

Notable Equity Crowdfunding Campaigns Ending Today: Allergenis (StartEngine), B.T.R. NATION (Republic), Lucky Carrot (Republic), Blackout Coffee (StartEngine), Nunbelievable (Republic), Yasheng Group (PicMii).

Notable Economic Events Today: N/A.

Fallout From CVS Health’s Bad News

Photo by Fern M. Lomibao / Unsplash

Shares of CVS Health (NYSE: CVS) plummeted last week after Blue Shield of California dropped some of the health giant’s pharmacy services.

Details: A big chunk of CVS Health’s revenue comes from its role as a pharmacy benefit manager for health plans.

Stock Price: CVS is down over 28% this year, including a 10% drop in the last 30 days.

Final Thoughts: Healthcare stocks were already having a bad year. This decision by Blue Shield of California could be bad for CVS and other competitors. Keep an eye on UnitedHealth Group (NYSE: UNH) and Cigna (NYSE: CI), which are companies that also act as pharmacy benefit managers.

As China’s Economy Craters, So Do Stocks Tied To China

There’s a reason why stock prices for China-based companies, as well as those international companies that do a lot of business in China, are declining right now.

Background: China is going through a serious economic slowdown. In particular, the real estate and property markets are struggling. Property developer China Evergrande Group (OTCMKTS: EGRNF) filed for bankruptcy last week and is down 99% this year.

Also: It’s not just real estate in China that is problematic. Consumer spending in China is down, as is factory production. Youth unemployment has skyrocketed.

Stocks: What are some stocks that do a lot of business in China? There’s Starbucks (SBUX), Nike (NKE), and Las Vegas Sands (LVS) to start. Apple (AAPL) and Tesla (TSLA) have factories there.

Final Thoughts: The economic mess in China could drag down stocks across the world.