Service Stocks

Hertz Global HTZ Stock News

Hertz Global Holdings (NYSE: HTZ)

Hertz Global is off to an incredibly strong start to the trading session today. When the opening bell rang, the stock was already trading well into the green. From there, we saw declines that nearly brought the stock into the red. That is, until minutes ago, when the stock started to soar. Below, we’ll talk about what we’re seeing from HTZ, why, and what we’ll be watching for ahead.





What We’re Seeing From HTZ

As mentioned above, Hertz Global was off to a relatively strong day early on. When the opening bell rang, the stock was already trading well into the green. However, shortly after the opening bell, we started to see declines. Then minutes ago, just before the stock fell into the red, we started to see a spike in value. Currently (10:23), HTZ is trading at $23.96 per share after a gain of $1.45 per share (6.44%) thus far today.

Why The Stock Is Climbing

As is almost always the case, our friends at Trade Ideas were the first to inform us of the upward run on HTZ. Of course, as soon as they did, the CNA Finance team started digging to see what we could find as the reason for the run. In this particular case, it didn’t take long to uncover the story. It seems as though the gains are being caused by an announcement associated with institutional ownership.


Minutes ago, we saw a report out of Gabelli. That report was that the investment firm has made a decision to buy a large stake of Hertz Global. In fact, the institution has purchased a 5.1% stake in the company. That’s a huge chunk, and it’s definitely going to cause excitement among investors.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on HTZ. In particular, we’re interested in seeing how Gabelli works into the company. In many cases, institutional investors will push for positive change that reflects the needs of retail investors. We’re interested in seeing if that’s the case here. We’ll watch the news closely and bring you the updates as they break!

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IEG Holdings IEGH Stock News

While many lenders in the quick service, on-line lending sector have seen a relative slowdown in customer acquisition rates due to the prolific rise in the competitive landscape, IEGH is proving its ability to buck that trend.

IEG Holdings, leveraging off of the strength of their “Mr. Amazing Loans” product has not only experienced tremendous growth during the previous twelve months, but they have also put into place a corporate strategy to attract quality customers, capitalizing not only off of its competitive and consumer friendly loan products, but from the high level of consumer satisfaction and reviews that IEGH has received from its expanding customer base.

As it stands, IEG Holdings is one of only a small handful of on-line lenders that currently boasts an A+ rating with the Better Business Bureau. Yet, having strong reviews is only one part of the IEGH profile, having a better consumer product is the essential element to their emerging success.

“Mr. Amazing Loans” and IEGH, Far From Ordinary

First and foremost, it’s important to distinguish what IEG Holdings does differently from its competitors, factors that clearly define the strengths and opportunities that lay within the company’s business and strategic vision. In that process, several aspects emerge that point to the IEGH model as one that may lead to continued strong growth in the U.S. market.

It’s fair to note that on-line lending may have somewhat of a dubious past, with a substantial number of lenders flooding the market with deceptive, predatory and misleading loan products, counting on the consumers lack of initiative in reading the fine print when executing documents. IEG Holdings, however, is clearly not following their lead. And, to be entirely fair, with the company’s loan products being relatively new to the U.S. market, making a comparison between IEGH and its market competitors may be quite erroneous. Simply put, IEGH is different.

Instead of being typical to the current on-line lending process, the company is breaking from the industry norm, differentiating its “Mr. Amazing Loans” product by providing a transparent and simple approach to lending. Understandably, for many consumers it’s hard to break the pre-conceived notion that on-line lenders are in the market to squeeze the pennies out of a desperate consumer. While that may be true for some lenders whom rely on high risk, low credit score candidates to build its loan portfolio, IEG Holdings is different, focusing on a diverse market and strategy.

The “Mr. Amazing Loans” product provides an offering to consumers that rewards credit worthy candidates the ability to secure a quick cash loan of between $5,000 -$10,000 dollars. Even more appealing is that a “Mr. Amazing Loans” product is typically funded on the same business day that the application is submitted, and in some cases funding can occur within an hour of completing the application. The agreements are fully transparent, with no hidden fee’s or “fine print” costs designed to dupe consumers into making additional and unintended payments.

According to the Consumer Financial Protection Bureau, although many people are working full time, they still remain literally one or two paychecks away from enormous financial stress. IEGH, through its “Mr. Amazing Loans” brand, is working to fill that void, offering a service to credit worthy consumers that may require quick access to cash. Focusing on the reality that even the most successful people often find themselves in a bind, having a product available to them that offers speed, reliability and instant access to cash is a valuable resource.

As many people who have tried to access capital may know, going to a bank for traditional funding can be a logistical nightmare, and unless a customer can provide immediate and liquid collateral, the chances for loan approval is low. While the traditional banking system has remained stubborn against the small consumer in regard to capital access, the likelihood that that same credit worthy customer will receive approval from IEGH’s, “Mr. Amazing Loans”, may be highly probable.

“Mr. Amazing Loans” Application Process

Breaking away from the traditional methods of both brick and mortar and on-line loan processes, “Mr. Amazing Loans” has built a seamless application model designed to efficiently and thoroughly screen applicants who have applied for a cash loan.

Using a streamlined method of internal metrics that evaluate the risk associated in providing customer specific loans, “Mr. Amazing Loans” adheres to just a few basic guidelines to start the application process, and if a customer can meet these initial requirements, funding is generally approved.

First, rather than preying on those most susceptible to loan default, IEGH focuses on clients that have a minimum FICO credit score of 600, with most loans being provided to customers with a FICO score in a range between 600-750. In addition to attracting a worthy credit candidate to start the process, “Mr. Amazing Loans” does have some additional requirements intended to minimize default risk in a loan.

The applicants must be 21 years of age and reside in one of 19 licensed states, show proof of regular employment, have a minimum gross income of $40,000 dollars and have an established checking account with the ability to make weekly payments from an approved financial institution. While the qualifications may appear simplistic from a credit evaluation risk standpoint, “Mr. Amazing Loans” also employs internal metrics that further evaluate and qualify a potential customer, minimizing investor risk from losses due to excessive loan defaults.

From a business and marketing standpoint, the application process, from start to finish, offers customers with one of the quickest turn-around times in the industry, with few competitors able to match the same day funding advantage that “Mr. Amazing Loans” can provide.

And, this process has not gone unnoticed by customers, with the vast majority of them providing excellent reviews on “Mr. Amazing Loans” transparent lending practices, fee’s and simple on-line conveniences.

IEGH and “Mr. Amazing Loans” Investor Prospective

While IEGH is offering a product and service that is clearly gaining market momentum, evident by the growth of its loan portfolio, investors want the assurance that an investment into the company is prudent. And, while investors can clearly take comfort in the fact that IEG Holdings only provides loans to vetted and credit worthy customers, that benefit is only a single component to building investor confidence.

Beyond the credit profiles, there is great value in the fact that IEGH is fully and properly licensed in 19 states, with a goal of becoming fully licensed in 25 states by mid 2017. While some investors may shrug off the company’s licensing advantage, it’s important to point out that many competitor on-line lenders operate on the fringes of legality, taking advantage of current loopholes and loose regulation that provide little more than a legal interpretation for them to operate freely in a given market. And, history has shown that there is great risk when relying upon interpretation rather than substance. In some instances, regulators have shut down loosely licensed lenders, causing forfeiture of large loan portfolios and making collection efforts unenforceable. This is not the case at IEG Holdings.

Absent the fact that the company does not operate with a brick and mortar concept, the company is certain to remain strictly compliant with all state law, adheres to explicitly stated lending practices and does not run the risk of jeopardizing its loan portfolio due to a tenable business operation. To the contrary, IEGH offers investors the assurance that they are complicit with each state’s consumer lending mandates, insulating themselves and its loan portfolio from potential regulatory action.

The “Mr. Amazing Loans” Return on Equity

IEGH has completed a thorough reorganization for both its corporate profile and capital structure. Coming off a share restructure in November of 2016, IEGH has positioned itself for long term growth with an aggressive and streamlined focus on controlling expenses, while at the same time building a performing loan portfolio founded on prudent and proven strategies.

IEG Holdings, due to its lack of brick and mortar presence, relies on direct mail, on-line and social media advertising to attract its potential client base. “Mr. Amazing Loans” offers a consumer up to $10,000 dollars in same day cash with an interest rate of between 19.9%-29.9%. In doing so, the company provides extensive disclosure with no hidden loopholes or agenda to snag customers in a never ending spiral of debt payment. Rather than treating clients as a one-time prospect, where they are then spun into an abyss of relentless payments and penalties, IEGH looks at each client as offering the potential for a long term relationship. IEGH accomplishes this goal by offering refinance tools and incentives to repay loans without pre-payment penalty, exorbitant late fee’s, incidental charges such as “check processing” fee’s or other self-serving incidentals, items that contribute to low customer satisfaction and less product loyalty.

Taking advantage of technology, IEG Holdings can keep expenses to a minimum. Customer acquisition rates amount to less than 2% of loan revenue, and combined with the competitive interest rates being received, provides IEGH with a net equity return on loans of approximately 20%. Additionally, the company has proven the benefit from direct mail marketing, with a robust conversion rate which contributes to the company’s low customer acquisition costs. IEGH estimates that a well targeted mailing holds the potential to be converted into millions of dollars in loan volume. IEG Holdings also has a mechanism in place to sell off loan leads that do not meet company specific targets, providing additional revenue.

With IEGH incorporating each component of their corporate strategy into a single seamless model by offering attentive customer service and a credible loan product, IEGH and “Mr. Amazing Loans” currently boasts its A+ rating with the Better Business Bureau and maintains an internal goal to re-finance up to 80% of its loans made, creating long term value and building a loyal customer base.

IEGH Turning Profitable

In December of 2016, IEG Holdings reported financial results that proved that their strategy to streamline costs and target credit worthy customers is working. The company not only reiterated its profitable Q1 guidance for 2017, but also recorded record loan volumes for the period. Since January of 2015, IEGH has seen its loan portfolio increase by over 154%, rising from $5.5 million dollars to over $14 million dollars as of December 13, 2016.

With IEGH now turning profitable, the likelihood that IEG Holdings can remain profitable in the near term is probable, based on an anticipated rise in both loan and revenue growth. And, IEGH management may be expecting more of the same, with two planned initiatives focused on creating shareholder value.

Turning profitable, and combined with disciplined cost control and a proven lending strategy, IEGH management has declared that a cash dividend will be paid in April of 2017. Further, based on management’s visibility to anticipate future profitability, the company intends to institute regular quarterly dividends that are expected to commence in 2017. Additionally, management has further stated that the company will investigate opportunities to repurchase shares in the open market, providing support to the stock on an on-going basis. With IEGH being thinly traded for the time being, having a mechanism in place to provide bid support can be an attractive feature for current and future shareholders.

IEG Holdings Seeks To Expand Loan Portfolio

With much of the capital and corporate restructure behind them, 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.

This non-dilutive offering maintains the outstanding share count at roughly 9.7 million shares, with a trading float much smaller at an estimated 2.75 million shares. As noted previously, with IEGH being thinly traded and with both the outstanding share count and trading float being low, the trajectory of the stock going forward on improved profitability and fundamentals may be extremely rewarding.

Even though prior financial results should not be relied upon to predict the future, for a business like IEG Holdings, once the formula for profitability is established and proven, the likelihood for continued and consistent performance is enhanced. Although no guarantees are in place, if IEGH successfully completes the $10 million dollar notes offering, the company may have the ability to increase its loan portfolio by over 60% from current levels, driving additional revenue from interest earned. Additionally, with the cumulative effect of newly raised funds intended to increase the loan portfolio, coupled with the revenues currently being generated through interest payment receivables, the IEG Holdings share price begins to look undervalued at current levels from a sector based, multiple valuation point of view.

IEGH Outlook for Investors

While the on-line lending industry may regularly be faced with the challenge of presenting themselves differently from unpopular public perception, IEGH, in practicing a departure from industry standard, has set a high and reputable bar in a field that has enormous barriers to entry.

Progressing methodically to remain strictly compliant in all regulatory aspects, the company is on the path to reach their stated goal of becoming fully and properly licensed in 25 states prior to mid 2017. Upon doing so, IEGH will be well positioned to promote the “Mr. Amazing Loans” suite of products to a market that is clearly receptive to being provided a viable alternative to traditional lending.

For investors, IEG Holdings may be a compelling investment candidate in that they have already reached the profitability milestone. While some investors work tirelessly to find emerging companies that are working towards positive cash flow and hopeful profitability, IEGH already offers investors both of those components, along with a capital structure that may be conducive to increasing shareholder value.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I have no position in any stock mentioned, but may initiate a long position in IEGH within the next 72 hours.

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Fred's Inc. FRED Stock News

Fred’s, Inc. (NASDAQ: FRED)

Shares in Fred’s Inc. continued to climb higher on Friday, up about 3% (9:44) on news that Alden Global Capital has boosted its stake in Fred’s to over 25% of the outstanding shares. The run in FRED began on Tuesday, when FRED announced plans to acquire more than 865 Rite-Aid stores. Our friends at Trade Ideas alerted us to the additional Alden Global news early this morning.





FRED Making Investors Happy

Tis the season to be jolly for FRED shareholders, with the shares rising 81% on Tuesday and then compounded by today’s early gains. FRED is taking advantage of opportunities being offered from the terms required in the WAG-RAD merger, requiring RAD to shed a number of stores prior to that deal closing.

For Alden Global Capital, the gains in FRED should make its investors quite happy as well, as Alden had already owned a substantial portion of FRED stock prior to the news on Tuesday.

Good for FRED, Alden supports the 865 store mega deal and further believes that FRED stock is well undervalued at these levels, despite the run-up seen in its shares this week.

While the mega deal is supported by Alden Global, the firm still will take an activist role in facilitating the deal, keeping an eye on cash allocation and plans to have greater input as to the makeup of the board. Estimates indicate that Alden Global has made slightly over $22 million dollars this week on FRED gains.

FRED Going Forward

FRED has 650 stores as of late October and is financing the RAD deal with all-cash, pledging nearly all of its real assets to secure the $1.65 billion in loans required to close the purchase. The purchase price for the RAD stores is being pegged at $950 million dollars, a price that CFO Rick Hans believes is a “very good” price for shareholders.




CNA Finance will keep followers appraised of any further news on FRED.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I have no position in any stock mentioned and no plans to initiate any positions within the next 72 hours.

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Deutsche Bank DB Stock News

Deutsche Bank AG (NYSE: DB)

Deutsche Bank (DB) has agreed to pay the U.S. Justice Department $7.2 billion dollars, in a settlement related to to its role in selling mortgage backed securities during the financial crisis that began in 2007. The settlement from DB is far less than the $14 billion dollars that was being sought by the U.S. Government. Our friends at Trade Ideas provided the real time alert late on Thursday, and our CNA Finance team went to work to check the facts.





DB Agree To Settlement

The settlement terms require DB to pay a $3.1 billion dollar penalty, plus provide an additional $4.1 billion dollars in consumer relief, which will settle DB’s role against the claims made by the U.S. Justice Department associated to the mortgage-backed securities crisis in 2007-2008 .

DB will take a $1.7 billion dollar pretax charge in the current quarter. On the consumer side, well that will take time, as the terms spelled out in that portion of the settlement are not as clear. According to the settlement, DB is required to provide consumer relief paid out over the next five years, but, hey, who’s to say that those terms won’t be affected going forward.

Even DB does not seem too concerned about that portion of the settlement, stating that the $4.1 billion dollar relief settlement is not expected to have a material impact on its 2016 financial results. Gee,Wally, DB and the U.S. Justice Department could have least caused some pain for DB, similar to the pain felt by millions of investors around the world.




DB Gets Off Easy

While DB stock has been battered, the crisis that DB and others contributed toward seems to have had far less effect on their business than it had on entire industries throughout the world. While DB continues to limp along, others are not so lucky, having filed for bankruptcy protection, lost their homes, lost their wealth and some lost generations worth of business because they trusted banks like DB to take a prudent view of how they handled investors money.

While the U.S. Justice Department will receive their check in a timely manner, perhaps just in time for the Obama Administration to create a new government agency, the payments to the rest of the class most likely won’t have a material impact on consumers lives, and in my guess, they will probably receive about $2.00 in a settlement check, similar to most participants in class action type settlements.

The attorneys who brought the case, well from a civil standpoint, those hard working few, many of whom were not affected by the crisis will earn hundreds of millions.

Oh well, DB, as the world considers whether or not they will bail you out in the next year or two, my belief is that you should play nice…I don’t think the world has any more appetite to help greed and corruption. Save yourself while you can and make sure that substantial portions of this settlement get into the right hands, those directly affected by your misdeeds.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I have no position in any stock mentioned and no plans to initiate any positions within the next 72 hours.

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Credit Suisse CSGN Stock News

Credit Suisse Group AG (VTX: CSGN)

Credit Suisse (CSGN-CH) stock continues to get beaten down like a disliked pinata, down over 40% from its 52 week high and well off all time highs. Contributing to perhaps additional weakness will be caused by the $5.3 billion dollar settlement with the U.S. Justice department, the penalty associated to their role in the MBS crisis that began in 2007. Our friends at Trade Ideas provided a real time alert to the CNA Finance team.





Credit Suisse Settlement

For Credit Suisse, the settlement for being bad is actually good for the stock, as the bank is trading higher during the Friday pre-market. While the rationale that bad news is good, and good is bad continues, at this point investors believe that at least one of the dark clouds has been removed from over CSGN’s head.

Credit Suisse has said that they will take a $2 billion dollar charge to cover the settlement, probably leading to higher fee’s for customers. Does anyone expect Credit Suisse to cover the penalty?

The settlement also provides the U.S. Government with $2.48 billion dollars in cash, more than enough to shore up the education system throughout the United States, but I won’t hold my breath on that one. In fact, if the combined penalty that the U.S. government has or will receive from the current settlements related to the MBS crisis were used to assist education, the public education system in the U.S. could be greatly enhanced.




However, why do that when a Brown Eyed, Speckled Horn Owl may need a 1000 acre preserve so that they may reproduce in a utopian setting without interruption? I wonder if they also get some Harman Kardon speakers strategically placed throughout the preserve to get them in the mood with some good, old time Luther V.? That would proably only cost an extra million or so, anyway.

For the consumers that were ruined, however, they may receive enough money to buy a roll of duct tape to stop that leaky faucet in their love nest, and maybe even some flex seal to patch the hole in the side of their home.

Pony up to the real economy, Credit Suisse, consumers need you and with the government soon having to re-inflate the economies around the world, you’ll probably bank some record profits anyway.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I have no position in any stock mentioned and no plans to initiate any positions within the next 72 hours.

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2U Inc TWOU Stock News

2U Inc (NASDAQ: TWOU)

2U Inc was having what seemed to be a normal start to the trading session today. Early on, the stock opened in the green before quickly falling to the red. Since then, the stock has been teetering at the break-even point. That is, until minutes ago, when the stock took a sharp dive. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to TWOU ahead.





What We’re Seeing From TWOU

As mentioned above, 2U Inc was having a relatively normal day in the market today. The stock started the day in the green, fell to the red, and has been straddling the break even point all day. Nothing has been very exciting. However, that all changed minutes ago as the stock started to take a turn for the worst. Currently (12:18), TWOU is trading at $32.05 per share after a loss of $0.62 per share (1.90%) thus far today.

Why The Stock Is Falling

As soon as our partners at Trade Ideas informed us that TWOU was making a run for the top, the CNA Finance team started working to see what was causing the movement. It didn’t take long to uncover the story. Unfortunately, the stock is falling as the result of a U.S. News report associated with one of the company’s college partners.




In the report, U.S. News declared Simmons College’s nursing program to be “unranked.” This comes after the news outlet said that Simmons provided false data. Unfortunately, this is hitting 2U Inc relatively hard because anything that harms a partner harms them. So, the declines are simply investor reactions to this news.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on TWOU. We’re interested in seeing how Simmons College responds to the report. However, we are not expecting the declines to be long lasting. Nonetheless, we’ll watch the news closely and bring it to you as it breaks!

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Shake Shack SHAK Stock News

Shake Shack Inc (NYSE: SHAK)

Shake Shack was off to what seemed to be a relatively normal day in the market today. When the opening bell rang, the stock started heading up, hit some volatility, and started heading down. While it stayed in the green for most of the morning, the gains were nothing to write home about. That is, until minutes ago, when the stock started screaming toward the top. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to SHAK ahead.





What We’re Seeing From SHAK

As mentioned above, Shake Shack was off to a relatively normal day in the market today. As soon as the opening bell rang, the stock started working its way upward before reaching resistance and finding its way back down. Nonetheless, minutes ago, the stock started to make a mad dash toward the top. At the moment (10:45), SHAK is trading at $38.80 per share after a gain of $0.64 per share (1.68%) thus far today.

Why The Stock Is Climbing

As always, as soon as our partners at Trade Ideas notified us of the gains on SHAK, the CNA Finance team started digging to see exactly what was causing the movement. In our search, we were unable to find any fundamental news that would lead to such gains. However, we were able to find something interesting in the social space.




At the moment, social media is lighting up with chatter about Shake Shack. The big rumor is that the company is likely to be taken over soon. The buyer in the rumor is said to be McDonalds (MCD). At the moment, there is no information as to what the price may be, nor confirmation from either side. Nonetheless, the rumor is sending the stock through the roof!

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on SHAK. In particular, we’ll be watching to see if there is any validity to the rumor. After all, if MCD does take the company over, it will likely lead to an incredible return of value for investors. We’ll be watching the story closely and bringing you the news as it breaks!

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Rite Aid Corporation RAD Stock News

Rite Aid Corporation (NYSE: RAD)

Rite Aid Corporation is having an incredibly strong start to the trading session today. At the opening bell, the stock found itself well into the green. Throughout the first 20 minutes or so, the stock has held onto the strong gains and looks like it will stay in the green throughout the day. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching with regard to RAD ahead.





What We’re Seeing From RAD

As mentioned above, Rite Aid Corporation is doing incredibly well in early morning trading today. When the opening bell rang, the stock found itself well into the green. While the stock hasn’t gained much since, it’s definitely holding onto the pre-market gains. Currently (9:49), RAD is trading at $8.63 per share after a gain of $0.46 per share (5.63%) thus far today.

Why The Stock Is Climbing

As usual, as soon as our partners at Trade Ideas sent us the ping notifying us of the RAD run, the CNA Finance team started digging to see what was causing the movement. In this case, we didn’t have to dig very deep. In fact, the story jumped right out at us. The gains seem to be the result of an asset sale that was announced early this morning.




In the early morning hours, Rite Aid Corporation released a press release informing investors of a large asset sale. In the release, investors learned that the company has entered into an agreement with Fred’s, Inc (FRED) to sell 865 stores and certain assets related to operations. The total value of the sale comes in at $950 million.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping an incredibly close eye on RAD. In particular, we’ll be watching to ensure that the sale goes over smoothly. At the moment, it’s at the mercy of FTC approval and other customary conditions. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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Deutsche Bank DB Stock News

Deutsche Bank AG (NYSE: DB)

Deutsche Bank isn’t having the best of days in the market today. In fact, as soon as the opening bell rang, the stock started making a run for the bottom. Since then, we’ve seen a continuation of downward movement, bringing the stock deeper into the red. Below, we’ll talk about what we’re seeing from DB, why, and what we’ll be watching for with regard to the stock ahead.





What We’re Seeing From DB

As mentioned above, Deutsche Bank isn’t having the best of days in the market today. When the opening bell rang, the stock started to make a quick run for the bottom. Since then, we’ve seen a continuation of declines, causing the losses to grow larger and larger. Currently (12:42), DB is trading at $18.20 per share after a loss of $0.81 per share (4.26%) thus far today.

Why The Stock Is Falling

As usual, when our partners at Trade Ideas informed us that DB was making a run, the CNA Finance team started digging to see exactly what was happening. For some time now, investors have been struck with uncertainty revolving around sales of toxic mortgage debt. The uncertainty pertains to the idea that the settlement could be incredibly large.




Nonetheless, news came out over the weekend that the bank may be settling with the United States Department of Justice relatively soon. Sources close to the story told Reuters that the bank may pay less than the $14 billion in penalties that were originally requested. However, how much lower of a settlement is still unknown.

What We’ll Be Watching Ahead

Moving forward, the CNA Finance team will be keeping a close eye on DB. In particular, we’re interested to see how the settlement ends up. All in all, the number is likely to be large. However, negotiations will likely bring the number below the original request for $14 billion. We’ll keep an eye on the story and be sure to update you as the news breaks!

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American Railcar Industries ARII Stock News

American Railcar Industries, Inc. (NASDAQ: ARII)

American Railcar Industries was having a relatively normal day in the market today. When the closing bell rang, the stock was slightly in the red. From there, we saw relatively slow movement, bringing the stock to the green and keeping it there; however, gains were nothing to be excited about. That is, until minutes ago, when the stock started soaring. Below, we’ll talk about what we’re seeing from ARII, why, and what we’ll be watching for ahead.





What Were Seeing From ARII

As mentioned above, American Railcar Industries wasn’t having a very exceptional day in the market today. In fact, movement was a bit bland. The stock started the day in the red, slowly worked to the green, and then stayed slightly above the break even point. Nonetheless, that all changed minutes ago as the stock started screaming for the top. Currently (12:05), ARII is trading at $48.77 per share after a gain of $3.39 per share (7.47%) thus far today.

Why The stock Is Spiking Upward

As usual, our partners at Trade Ideas were the first to inform us of the movement on RAII. As soon as they did, the CNA Finance team started working to see exactly what was causing the movement. It didn’t take long to uncover the story, and it’s a big one. It seems as though the gains are being caused by a big announcement made by Icahn Enterprises.




Minutes ago, Icahn Enterprises L.P. made a massive announcement. The firm announced that a definitive agreement to sell American Railcar Leasing LLC has been made. The value of the agreement is $2.778 billion, a massive chunk of revenue brought in for RAII. So, investors are reacting to the asset sale.

What We’ll Be Watching Ahead

Moving forward, the CNA Finance team will be keeping a close eye on RAII. In particular, we’ll be watching this asset sale to make sure it goes smoothly. We’ll keep a close eye on the news and bring it to you as soon as it breaks!

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Thought Leader Discussions

Josh Disbrow head shot1 (1)

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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...