Service Stocks

IEG Holdings IEGH Stock News

IEGH is continuing to attract market attention, recently grabbing the focus of ACF Equity Research, which has provided a value upgrade and share price target of $8.58 per share.

The value increase projected by ACF is based on the organic growth that IEGH is delivering in regard to booked loans, free cash flow models, and its aggressive and successful expansion into additional markets throughout the United States. The increased price target excludes the potential value from a completed acquisition of OneMain Holdings, which IEGH announced its intent on January 6, 2017.





Basis For Value Upgrade

The ACF upgrade was considered on several fronts. First, IEGH has confirmed its guidance to become free cash flow positive in Q1 of 2017E, benefiting from aggressive cost cutting and an efficient business model. Next, IEGH has announced its intention to commence paying a regular cash dividend beginning in 2017. And, finally, IEGH will be initiating a stock repurchase program that has been authorized by the board of directors. The stock repurchase program will purchase shares on the open market, utilizing an allocation of $2 million dollars for the program.

IEGH has been steadfast in delivering shareholder value, reaching its FCF positive position well ahead of forecast. The company has delivered record growth for the year ending December 31, 2016 and is on a path to expand its service base into 25 states by the middle of 2017.

Additional Value From OneMain Acquisition

Absent from the upgrade is the value that may be gained from its unsolicited all-stock acquisition offer for OneMain Holdings.


IEGH is working to educate OneMain investors as to the synergistic and long-term benefit of accepting the IEGH offer. IEGH believes that they can immediately cut over $1 billion dollars in unnecessary costs from a combined overhead, eliminate brick and mortar locations, and resize the combined company to efficiently take advantage of growing consumer demand for online loans. IEGH offers a simple and expedited lending experience, with a clear application process designed to provide complete lender transparency.

The terms of the offer call for two IEGH shares to be given for each single share of OneMain Holdings common stock. IEGH management believes that the offer can be immediately accretive and lead to a paramount shift for a combined IEGH/OneMain, delivering a combined profitable entity that will not be burdened with excessive executive and real property overhead.

Acquisition Opportunity

If IEGH shares continue to gain traction, the terms of the deal are not necessarily out of proportion. While on paper the two companies appear to be miles apart on valuation, it must be said that, while IEGH is delivering on its ability to deliver positive FCF, the same cannot be said of OneMain. Additionally, OneMain does not offer a dividend to shareholders at this time.

It may be worth the while of both companies to sit and discuss the streamlined benefits of a combined entity.

With brick and mortar clearly being phased out in a broad spectrum of commerce, OneMain should, perhaps, pay closer attention to what IEGH has to offer – as should their shareholders, who have the most to gain or lose.

CNA Finance will keep followers apprised of additional and real-time developments.

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Brookdale Senior Living BKD Stock News

Brookdale Senior Living, Inc. (NYSE: BKD)

Brookdale Senior Living didn’t look like it was having the best of days in the market today. When the opening bell rang, the stock was slightly in the red. From there, we saw slow and steady declines until about 10:15. While the stock has been slowly working to recover, it was in the red all day. That is, until minutes ago when it started spiking. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to BKD ahead.





What We’re Seeing From BKD

As mentioned above, Brookdale Senior Living wasn’t off to the best of days in the market today. When the opening bell rang, the stock was slightly in the red. While it did remain in the red for most of the day, since about 10:15 it has been working to recover. Now, that recovery has been kicked into overdrive. Minutes ago, the stock started spiking. By 12:45, it was halted after reaching $15.02 per share folowling a gain of $2.17 per share (16.89%) thus far today.

Why The Stock Is Spiking

As is usually the case, our partners at Trade Ideas were the first to notify us of the gains on BKD. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this case, it didn’t take long to uncover the story. It seems as though the gains may be the result of a potential deal.


Here’s what we do know… It is a fact that the stock was in the red for most of the day. It is also a fact that the stock started spiking minutes ago before being halted. Now, why it was spiking is still a mystery, but it seems to be the result of a deal in progress according to social rumors. This may be an acquisition my friends!

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on BKD. In particular, we’re watching to see what the true reason for the halt is. If it does turn out to be an acquisition, we can expect a big jump when this thing reopens. We’ll watch the news closely and bring it to you as it breaks!

Update: Rumor is evolving – CSU is said to be the buyer.

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IEG Holdings IEGH Stock News

IEGH responded swiftly and with determination on Monday after OneMain Holdings made a public statement calling IEGH’s bid to acquire all of the outstanding shares of OneMain stock as “grossly inadequate”. Our partners at Trade Ideas provided a real time news alert after hours, bringing the IEGH response to our news desk.





IEGH Disagrees And Makes Case For Acquisition

Despite the strong rhetoric from management at OneMain Holdings, IEGH Chairman and CEO, Paul Mathieson, strongly disagrees with OneMain’s sentiment and insists that OneMain shareholders should be afforded a say in the matter.

Despite the difference in company valuation, IEGH may, in fact, be offering a better method of conducting business. In a generation where brick and mortar concepts are falling by the wayside, as evidenced by the continued erosion of mega-retail giants like Macy’s, Limited, and Aeropostale, IEGH’s belief that brick and mortar is becoming an antiquated method of conducting business is not without merit.


IEGH is bringing their case to all shareholders, offering a compelling value proposition to OneMain and IEGH shareholders, citing a plan to accelerate a route to transition from the archaic OneMain brick and mortar business model, to the modern online-only method of lending that IEGH is successfully implementing across the United States.

IEGH is making a case that by failing to take the offer seriously, the OneMain board of directors demonstrates that they remain out of touch with the trend in the industry and may place the company at risk, as the online lending sector continues to consolidate and will likely make continued profitability difficult for brick and mortar concepts.

IEGH Tells Investors Why

According to IEGH, key benefits of combining IEG Holdings and OneMain include:

  • Significant business synergies from combining the two businesses, including estimated cost savings of at least $1 billion per year from transforming the OneMain brick and mortar business model to IEG Holdings’ 100% online only distribution business model, resulting in the closure of over 1,700 OneMain offices, termination of over 11,000 employees, substantial cuts in advertising/marketing costs, and other significant cost cutting measures, including a cut in the Chief Executive Officer’s annual base salary to $1 per year and reduction in aggregate annual executive compensation by at least $40 million.
  • Improvement in combined business from re-branding of OneMain to the Mr. Amazing Loans brand, termination of low margin OneMain business segments with a new focus on high margin unsecured loans to near prime clients, focus on refinancing of existing high quality OneMain customers and termination of lending to sub-prime OneMain customers with FICO score of less than 600 to reduce OneMain loss levels.

IEGH Urges Negotiation

From its release, IEG Holdings urges OneMain to enter into negotiations with IEGH, rather than simply dismiss the synergies of transitioning its customers online and $1 billion per annum of cost savings that could be obtained from a merger of the two companies.

On January 5, 2017, IEG Holdings commenced a tender offer to purchase up to all of the outstanding shares of OneMain’s common stock, provided, however, that IEGH is willing to accept any number of shares of OneMain common stock, even if such shares, in the aggregate, constitute less than a majority of OneMain’s outstanding common stock. IEG Holdings is offering to exchange two shares of IEGH common stock for each outstanding share of OneMain common stock.

Paul Mathieson, IEGH Chairman and Chief Executive Officer, said, “We ask OneMain shareholders to consider whether they wish to move forward with an online business model aimed at the future or continue to support an outdated ‘brick and mortar’ model. We are surprised by OneMain’s dismissive response to IEGH’s offer. The response highlights the importance of our offer as history is littered with the relics of archaic ‘brick and mortar’ business models being overrun with an improved online variant, for example ‘Netflix’ versus ‘Blockbuster’.”

IEGH Reasons for the Offer

In a statement, IEGH said that the IEGH Board strongly refutes certain OneMain assertions and confirms that there is significant strategic rationale for combining IEG Holdings and OneMain. The two businesses are complementary with a similar core personal loan product (albeit delivered online by IEG Holdings), competing for similar customers in 19 of the same 43 states. IEG Holdings believes that significant shareholder value would be created by eliminating the majority of the redundant staff and office cost structure of the outdated OneMain business model while transitioning the existing customer base to the IEG Holdings online distribution business model.

Consummation of the offer is conditioned upon satisfaction of certain customary conditions. Shares that are tendered pursuant to a notice of guaranteed delivery but not actually delivered to the depository and exchange agent for the tender offer, Computershare Trust Company, N.A., prior to the expiration time of the offer will not be deemed to be validly tendered into the offer unless and until such shares underlying such notices of guaranteed delivery are delivered.

The offer is scheduled to expire at 12:00 Midnight Eastern time on Monday, February 6, 2017, unless the offer is extended or earlier terminated.

CNA Finance will keep followers apprised of further and real-time developments.

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Darden Restaurants DRI Stock News

Darden Restaurants, Inc. (NYSE: DRI)

Darden Restaurants was off to what seemed to be a rough day in the market today. When the opening bell rang, the stock started on a mad dash toward losses. However, over the past few minutes, we’ve watched as the stock started to spike. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to DRI ahead.





What We’re Seeing From DRI

As mentioned above, Darden Restaurants was off to what looked like it was going to be a bad day in the market. At the open, the stock took an immediate dive into the red. However, about an hour into the day, the stock reversed and started working its way back to the breakeven mark. Then, just minutes ago, it started to spike. Currently (11:12), DRI is trading at $71.85 per share after a gain of $0.30 per share (0.42%) thus far today.

Why The Stock Is Spiking Upward

As is nearly always the case, our partners at Trade Ideas were the first to inform us of the run on DRI. When they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it took no time at all to uncover the story. It seems as though the gains are being caused by an announcement that the company has canceled a trade show.


Any time a conference or trade show is canceled, investors tend to get excited. While there are many reasons that something like this can happen, the first thing investors seem to think is acquisition. After all, if the company is considering selling itself, it couldn’t do the trade show because it would be in a quiet period. Nonetheless, this could also mean that someone has the sniffles. At the end of the day, all we know is that DRI has canceled a trade show. The reason is still a mystery.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on DRI. In particular, we’re looking for the reason for the trade show cancellation. While we will not jump to a conclusion, we are excited to see what comes of this. We’ll watch the news closely and bring it to you as it breaks!

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Best Buy BBY Stock News

Best Buy Co Inc (NYSE: BBY)

Best Buy was off to what seemed to be a normal day in the market today. When the opening bell rang, the stock made a run upward. From there, we saw some upward movement and some downward movement, but nothing was exciting enough to write home about. That is, until minutes ago when the stock started to spike. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to BBY ahead.





What We’re Seeing From BBY

As mentioned above, Best Buy was having what seemed to be a relatively normal day in today’s trading session. When the market opened, the stock started working toward the top before hitting resistance and correcting. Since then, we’ve seen some movement upward and downward, but nothing too exciting. That is, until minutes ago when the stock started to spike. At the moment (10:30), BBY is trading at $43.19 per share after a gain of $0.42 per share (0.98%) thus far today.

Why The Stock Is Gaining

As is normally the case, our partners at Trade Ideas were the first to inform us of the run on BBY. As soon as they did, the CNA Finance team started digging to see exactly what was causing the spike. In this case, it didn’t take long to uncover the story. It seems as though the gains are the result of news out of the FBI.


Early this morning, there was a report released on TechDirt stating that the FBI is “Apparently Paying Geek Squad Members” to dig around in computers for evidence of criminal activity. Of course, we know that Geek Squad and Best Buy are essentially one and the same. So, investors are excited about the revenue.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on BBY. In particular, we’re interested in finding out if the FBI is indeed paying Geek Squad, and if so, how much and for what exactly? We’ll keep a close eye on the news and bring it to you as it breaks!

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IEG Holdings IEGH Stock News

IEGH is continuing to be aggressive on creating shareholder value. Coming off of its most recent filing to acquire up to all of the outstanding common stock of OneMain Holdings, Inc., today IEGH announced that its Board of Directors has authorized the repurchase of common shares totaling up to $2 million dollars. An alert from Trade Ideas brought the release to our attention.




IEGH Repurchase Shares

Purchases under the program are authorized through December 31, 2017, and, at current prices, would represent authorization to repurchase approximately 10% and 2% of the total outstanding non-affiliate and affiliate shares, respectively.

IEGH management stated that this authorization further reflects their commitment to enhancing shareholder value and to building confidence within the shareholder base. Management believes that this repurchase program is a strategic investment and is an appropriate use of corporate funds.


IEGH plans to purchase shares in open market transactions from time to time, with management determining the actual timing, number, and value of the shares being purchased.

IEGH is a rapidly expanding online lender with a model to provide cash loans of between $5,000 and $10,000 to qualified applicants. Under its Mr. Amazing Loans brand, IEGH is currently conducting business in 19 states,with expectations to expand into 25 states by the middle of 2017.

CNA Finance will keep its followers apprised of any additional developments.

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IEG Holdings IEGH Stock News

IEG Holdings (IEGH) announced the commencement of a tender offer to purchase up to all of the outstanding shares of common stock of OneMain Holdings, Inc. in an S-4 filing with the SEC on Thursday. A signal from Trade Ideas alerted CNA Finance to the Form S-4 filing.





IEGH Terms Of The Deal

As specified in its S-4 filing, IEGH is making an offer to exchange IEG Holdings common stock (IEGH) for OneMain shares. In the offer, IEGH is seeking to acquire as many shares of OneMain as possible, up to 100% of OneMain’s outstanding common shares, and is willing to accept any number of shares of OneMain stock, even if the shares, in aggregate, constitute less than a majority of OneMain’s common stock.

IEGH is offering two shares of its own common stock for each validly tendered share of OneMain common stock.

The offer is scheduled to expire at 12:00 a.m. (midnight), New York City time, on February 6, 2017, unless extended by IEG Holdings. Any extension, delay, termination, waiver, or amendment of the offer will be followed as promptly as practicable by public announcement thereof to be made no later than 9:00 a.m., New York City time, on the next business day after the previously scheduled expiration date. During any such extension, all OneMain shares previously tendered and not properly withdrawn will remain subject to the offer, subject to the rights of a tendering stockholder to withdraw such stockholder’s shares. “Expiration date” means February 6, 2017, unless and until IEG Holdings has extended the period during which the offer is open, in which event the term “expiration date” means the latest time and date at which the offer, as so extended by IEG Holdings, will expire.


Any decision to extend the offer will be made public by an announcement regarding such extension as described under “The Offer—Extension, Termination and Amendment.”

About IEGH

IEGH provides online, unsecured consumer loans under its Mr. Amazing Loans brand in 19 states, offering consumer loans of between $5,000 and $10,000 dollars over a fixed term at interest rates between 19.9% and 29.9%. IEGH plans to expand business into a total of 25 states by mid-2017, offering online loans that are typically funded on the same day an application is filed.

In December of 2016, IEGH reported financial results that demonstrated that its commitment to aggressive cost cutting measures and strategy to target credit-worthy consumers is working. IEGH reiterated its expectation to deliver a profitable Q1 in 2017, recording record loan volumes for the period.

Since January of 2015, IEGH’s loan portfolio has grown from $5.5 million dollars to over $14 million dollars, representing growth in excess of 154% as of December 2016.

Additionally, IEGH has launched a private offering of up to $10 million dollars in aggregate principal amount for its 12% senior unsecured notes due December 31, 2026. IEG Holdings is underwriting the offering on its own and intends to utilize the net funds to increase the size of its loan book.

CNA Finance followers will be kept appraised of any further developments of this proposed offering.

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Time Inc TIME Stock News

Time Inc (NYSE: TIME)

Time Inc was off to what seemed like a relatively normal day in the market today. While the stock started the day slightly in the red, throughout the day it has seen both red and green. However, nothing was worth writing home about until minutes ago when the stock started to spike. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to TIME.





What We’re Seeing From TIME

As mentioned above, Time Inc was having a normal day in the market. At the opening bell, the stock was in the red but made a slow and steady crawl toward the green. Throughout the day, we saw ups, we saw downs, but we didn’t see much with regard to exciting movement. However, that changed minutes ago when the stock started climbing. Currently (2:07), TIME is trading at $19.20 per share after a gain of $0.75 per share (4.07%) thus far today.

Why The Stock Is Gaining

As usual, our partners at Trade Ideas were the first to notify us of the gains on TIME. As soon as we received the alert, the CNA Finance team started digging to see exactly what was happening. In this case, it didn’t take long to find the story. While we didn’t find much by way of fundamental news surrounding the company, we did see an interesting rumor in social.


Regardless of what your favorite social network is, if you search for Time Inc on it, chances are that you will find the rumor. The rumor is that Meredith Corp (MDP) has contacted the company with regard to a merger. There has been no confirmation on either side quite yet, but if this is the case, it could generate incredible value for shareholders.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping close tabs on TIME. In particular, we’ll be watching to see if there is any validity to the rumor. If so, we’re interested in learning whether or not Time Inc will accept the offer. We’ll keep a close eye on the news and bring it to you as it breaks!

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Sears Holdings SHLD Stock News

Sears Holdings Corp (NASDAQ: SHLD)

Sears Holdings looks like it’s off to an overwhelmingly strong day in the market today. While we are minutes away from the opening bell at the moment, the stock is seeing some strong gains. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to SHLD ahead.





What We’re Seeing From SHLD

As mentioned above, the market hasn’t quite opened yet, but we are already seeing pretty impressive gains on Sears Holdings. While after hours wasn’t looking too good, the company released a business update this morning. As soon as the update was released, we started to see gains. At the moment (9:13), SHLD is trading at $11.00 per share after a gain of $0.64 per share (6.18%) thus far today.

Why The Stock Is Heading Up

As usual, our partners at Trade Ideas were the first to inform us of the run on SHLD. As soon as they did, the CNA Finance team started digging to see if we could uncover the reason for the gains. It didn’t take long to find the story. It seems as though the gains are the result of a business update that the company provided early this morning.


In the update, Sears Holdings said that their goal is to increase financial flexibility. While this is something they had been working on in the past, today we learned about additional action. The action that will be taken to help achieve financial flexibility is the closure of around 150 additional stores. Ultimately, this will free up funds, hopefully helping SHLD to achieve its end goal here.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on SHLD. In particular, we’ll be watching the finances. Ultimately, the company is working to achieve financial flexibility. By shutting down less profitable stores, they should be able to do so. We’ll keep an eye on the news and bring it to you as it breaks!

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CBS Corporation CBS Stock News

CBS Corporation Common Stock (NYSE: CBS)

CBS Corporation is off to a relatively strong day in the market today. When the opening bell rang, the stock started on a slow, yet steady path toward the top. However, minutes ago, we started to see a spike upward. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to CBS ahead.





What We’re Seeing From CBS

As mentioned above, CBS is off to a strong day in the market. While things looked relatively normal early on, more recently we’ve seen big gains. At the start of the trading session, the stock started a slow, yet steady trek upward. However, minutes ago, we started to see a big spike in value. Currently (12:04), CBS is trading at $65.72 per share after a gain of $1.33 per share (2.07%) thus far today.

Why The Stock Is Spiking

As usual, our partners at Trade Ideas were the first to inform us of the spike in value on CBS. As soon as they did, the CNA Finance team started digging to see what was causing the movement. In this particular case, the story pretty much jumped out at us. It seems as though the gains are the result of a deal that the company may work out with Hulu.


A report is surfacing at the moment that CBS is close to a deal with Hulu regarding the live-streaming service. If this deal works out, it will, of course, lead to stronger revenue for CBS Corporation. According to the reports, the deal may be announced as soon as later today.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on CBS. In particular, we’re interested in seeing if the company does sign an agreement with Hulu for streaming services. If this is the case, we can expect gains. We’ll keep a close eye on the news and bring it to you as it breaks!

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Thought Leader Discussions

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Aytu Bioscience Inc (OTCMKTS: AYTU) Recently, the CNA Finance team had an opportunity to speak with Josh Disbrow, CEO of Aytu Bioscience. Josh Disbrow has...