Macy’s Gets $5.8B Buyout Offer

And, Cigna ends merger amid buyback.

Today is Monday, December 11, 2023.

The Early Bird Index today is 61.93.

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Macy’s Gets $5.8B Buyout Offer

Macy’s (NYSE: M) time as a publicly traded company might be coming to an end.

Details: The Wall Street Journal reported on Sunday that Arkhouse Management and Brigade Capital Management recently submitted a $5.8 billion offer to buy Macy’s and take the retail giant private. The offer is reportedly at $21 per share, higher than the $17.39 price of the stock on Friday. Macy’s and the bidders did not comment on the report.

Background: This rumored buyout comes as retailers have struggled to grow sales due to lower consumer spending and competition from online rivals.

Stock Price: Macy’s is down 13% this year, but up 61% in the last 30 days.

Final Thoughts: If the deal occurs, it would be a big payday for those investors who currently own shares of Macy’s. 

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Notable Earnings Today: Oracle (NYSE: ORCL), Casey's General (Nasdaq: CASY), FuelCell Energy (Nasdaq: FCEL), Blue Bird (Nasdaq: BLBD), Inotiv (Nasdaq: NOTV).

Notable IPOs Today: SRIVARU Holding Limited Ordinary Shares (Nasdaq: SVMH), Touchstone Dynamic International ETF (Nasdaq: TDI).

Notable Equity Crowdfunding Campaigns Ending Today: Doroni Aerospace (StartEngine), Hank's Cinnamon Buns (Honeycomb), Gravity Power (StartEngine), Averroes Software (Netcapital), Chubby Cattle Philadelphia (Honeycomb), BabyQuip (StartEngine), CountSharp (Netcapital).

Notable Economic Events Today: N/A.

Cigna Ends Merger Amid Buyback

Cigna (NYSE: CI) announced an additional $10 billion stock buyback on Sunday, but there was a bigger merger-related report that investors should know about.

Details: With the new $10 billion stock buyback, Cigna’s total stock buyback stands at $11.3 billion. The company will spend $5 billion on stock buybacks by the middle of 2024, which should raise the stock price.

Powering the Story: The Wall Street Journal reported on Sunday that Cigna is ending its potential merger with Humana (NYSE: HUM). Both companies have not commented on the report.

Background: No surprise that the merger was called off. There would have likely been crazy regulatory delays.

Stock Price: Cigna is down 19% this year, while Humana is down 3%.

Final Thoughts: 2023 was a brutal year for most healthcare stocks. However, both Cigna and Humana have low stock valuations now, which is good.

Avalanche Gets Sunday Bump

The price of the cryptocurrency Avalanche jumped by 8% on Sunday, becoming the latest digital coin to benefit from increased optimism in the crypto market.

Price: Avalanche has tripled its price in 2023. It is also up over 50% in the last week, as investors await the potential approval of spot crypto ETFs (exchange-traded funds) in the U.S.

Final Thoughts: As with other altcoins, Avalanche’s rally won’t last forever. It is anyone’s guess as to which crypto will have the next rally.

No Pressure, Jerome: All eyes on Jerome Powell and the Fed this week (The Street)

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