Today is Monday, May 15, 2023.
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Shake Shack Profitability Plan
Burger chain Shake Shack (NYSE: SHAK) may have a new activist investor to deal with.
Details: A report from The Wall Street Journal on Sunday said that activist investor Engaged Capital owns a roughly 6.6% stake in Shake Shack and wants to run a proxy fight for three seats on the company’s board. Both Shake Shack and Engaged have not commented on the report.
Also: Engaged reportedly has a plan to double Shake Shack’s profitability in two years and has been talking with Shake Shack about those plans for over six months.
Definitions: A proxy fight is when two corporate factions are scrambling for enough seats on the board to control the company. This happens when there is an activist investor, who is usually a hedge fund that buys a stake in the company in order to change how it is run.
Stock Price: Shake Shack is up 56% this year, including an 18% jump in the past 30 days.
Final Thoughts: Usually activist investors create proxy fights to change struggling companies. But Shake Shack is different because it has been performing well lately and had strong earnings on May 4.
Notable Earnings Today: Monday.com (Nasdaq: MNDY), Workhorse Group (Nasdaq: WKHS), Invo Bioscience (Nasdaq: INVO), Greenbrook TMS (Nasdaq: GBNH), Catalent (NYSE: CTLT), XWELL (Nasdaq: XWEL), FREYR Battery (NYSE: FREY), Navitas Semiconductor (Nasdaq: NVTS), Tower Semiconductor (Nasdaq: TSEM), Rumble (Nasdaq: RUM), Trevena (Nasdaq: TRVN), Canoo (Nasdaq: GOEV), Altus Power (NYSE: AMPS), Beam Global (Nasdaq: BEEM), Novan (Nasdaq: NOVN), Lightning Emotors (NYSE: ZEV), Dragonfly Energy Holding (Nasdaq: DFLI).
Notable IPOs Today: Trailblazer Merger Corporation I Class A Common Stock (Nasdaq: TMBC), AB Active ETFs (NYSE Arca: HYFI).
Notable Equity Crowdfunding Campaigns Ending Today: Techware Labs (ChainRaise), COPYTRACK (Netcapital).
Notable Economic Events Today: NY Empire State Manufacturing Index (8:30 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).
Retail Stock Earnings This Week
Photo by Viktor Bystrov / Unsplash
Several big box retailers will report quarterly earnings this week.
Stock Prices: Big box retailers have performed all over the place so far in 2023. Walmart (NYSE: WMT) is up 6% this year while Target (NYSE: TGT) is up 4%. But Home Depot (NYSE; HD) is down 8%, showing a big contrast in the industry.
Details: What trends are impacting retail stocks now? Inflation and supply chain issues are still concerns, but the bigger challenge might be a decrease in consumer demand due to a potential recession.
Final Thoughts: Overall, stocks for the retail business are lagging behind the entire market this year. This week’s earnings could decide the direction of these stocks for the rest of the year.
Litecoin Jumps Thanks to Hype
Sunday was a solid day for cryptocurrency prices, especially for Litecoin, which jumped by over 5%.
Background: Litecoin is up over 10% this year. There was recently a new standard for Litecoin that was introduced called LTC-20, which has created a lot of hype. There is also buzz surrounding a future halving event for Litecoin that could occur this summer.
Final Thoughts: While Litecoin is up in 2023, there are still many volatility concerns for cryptocurrency investors.
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Trends to Watch
Showing Promise: Bitcoin’s recovery may trigger buying in these 4 altcoins (Cointelegraph)
Game Over: Aristocrat to buy gaming software firm NeoGames (Australian Financial Review)
Midas Touch: Australian gold miner Newcrest backs Newmont's $17.8 billion offer (Reuters)
Good Bet: Fanatics to buy PointsBet’s U.S. assets for about $150 million (CNBC)
So Many Problems: Why the stock market will struggle to rally until debt ceiling, bank woes are in rearview mirror (MarketWatch)
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