US Steel's New Canadian Bidder
And, Ethereum's exorbitant gas fees.
Today is Friday, September 22, 2023.
The Early Bird Index today is 53.19.
New to this newsletter? Sign up here.
US Steel's New Canadian Bidder
There’s another potential suitor who wants to acquire United States Steel (NYSE: X), with a report on Thursday that sent shares of the company up 1.63% in after-hours trading,
Details: According to a report from Bloomberg, Canadian steelmaker Stelco Holdings (OTCMKTS: STZHF) wants to acquire U.S. Steel so that it can grow its portfolio of steelmaking assets and increase its share of the market for supplying metal to car makers. The company is also in talks with a potential partner on the bid. Stelco and U.S. Steel did not respond to the report.
Background: In August, U.S. Steel rejected a $7.3 billion proposal from Cleveland-Cliffs (NYSE: CLF) to buy the company. Since then, a host of other companies have reportedly expressed interest and made offers to acquire U.S. Steel. The list of potential suitors included Esmark and ArcelorMittal (NYSE: MT) at different points. U.S. Steel is now weighing multiple offers.
Stock Price: U.S. Steel is up 24% this year. In fact, the stock is up 37% since rejecting the bid from Cleveland-Cliffs in August.
Final Thoughts: Investors are in a holding pattern until U.S. Steel makes a decision about its future. It’s a big decision that will impact the entire steel industry.
Notable Earnings Today: N/A.
Notable IPOs Today: Turbo Energy, S.A. American Depositary Shares (Nasdaq: TURB).
Notable Equity Crowdfunding Campaigns Ending Today: Leaves Of Leisure (Honeycomb), Bomvida Farms (Honeycomb).
Notable Economic Events Today: S&P Global Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), S&P Global US Manufacturing PMI (9:45 a.m. ET).
Ethereum's Exorbitant Gas Fees
The price of the cryptocurrency Ethereum continued its decline on Thursday, especially as a series of transactions resulted in Ethereum-related gas fees soaring.
Detail: According to Cointelegraph, crypto wallets belonging to the trading platform Binance racked up over $840,000 in gas fees on Thursday morning.
Definition: Gas fees are what users pay to network validators every time the blockchain is used.
Beneath the Surface: A Binance spokesperson told DL News that the transactions that caused higher gas fees resulted from a “routine consolidation” of Ethereum to one of its wallets.
Final Thoughts: While Ethereum is struggling against Bitcoin, there are bigger challenges in crypto. Concerns about high-interest rates kept prices down this week.
Scholastic Suffers From Seasonality
Shares of Scholastic (Nasdaq: SCHL) plunged 16.89% in after-hours trading on Thursday after the children’s publishing company reported bad financial results.
Financials: Scholastic reported a loss of $2.20 per share in the past quarter and revenue of $228.5 million; both were below estimates.
Details: CEO Peter Warwick blamed the seasonality of the business for the disappointing results in the quarter.
Final Thoughts: The stock is down 2.84% this year. Hopefully, now that the school year has started, the stock might be able to improve.
Trends to Watch
Forever: Are High Rates Going to Last? Fed Officials Increasingly Think So. (The New York Times)
IPO Dud: SoftBank-Backed Arm Dips Below IPO Price After Just One Week (Bloomberg)
Just Brew It: Coffee Subscription Provider Bean Box Launches Equity Crowdfunding (Daily Coffee News)
Goodbye: Rupert Murdoch to Step Down as Chair of Fox and News Corp After Seven-Decade Career (Wall Street Journal)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.