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Michael Kors Holdings KORS Stock News

Michael Kors Holdings Ltd (NYSE: KORS)

Micheal Kors started today off like any other day. However, just minutes ago, the stock started to spike upward. After a bit of research, the CNA Finance team found that the gains were the result of takeover chatter. Here’s what’s going on with KORS.

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KORS Gains On Takeover Chatter

As mentioned above, Michael Kors Holdings is currently climbing in the market on takeover chatter. While the chatter is all over the social networks, there has been no information offered that confirms nor denies the takeover.

At this point, we know that investors are excited about it because they’re talking about it and sending KORS upward in the market. However, there has not been any confirmation from KORS, nor do we know who would be interested in acquiring the company.

What We’re Seeing From The Stock

While the day was off to a slow start, we’re seeing an upward spike on the chart as we speak. While I believe we are well into the beginning of the trend, there’s definitely more room to run on this rumor. Currently (10:50), KORS is trading at $47.55 per share after a gain of $1.00 per share (2.15%).

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We’ll Keep An Eye Out

At CNA Finance, we’ll keep a close eye on what’s going on with Michael Kors Holdings stock. If any new news surfaces or we hear any confirmation or denial of the takeover rumors, we’ll be sure to get that to our readers. Subscribe below to make sure you get the news from CNA Finance surrounding KORS and other strong opportunities in real time!

UPDATE

CNA Finance Chief Strategic Analyst, Kenny Soulstring weighed in on the possibility of a KORS acquisition. Read his analysis here.

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[Image Courtesy of Wikimedia]

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Ulta Salon, Cosmetics & Fragrances Inc. ULTA Stock News

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA)

Ulta Salon is having an incredible day in the market today, and for good reason. The company has released an update with regard to its sales outlook, as well as its profit outlook, for the third quarter. Today, we’ll talk about the updated outlook, how the stock is reacting to the news, and what we can expect to see from ULTA moving forward.

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ULTA Updates Profit And Sales Outlook

As mentioned above, Ulta Salon is having a very strong day in the market today after providing an updated outlook with regard to its profit and sales for the fiscal third quarter. Here’s what the compay provided:

  • Earnings Per Share – Previously, ULTA said that it was expecting to earn between $1.25 and $1.30 per share in the third quarter. However, the company has now increased that guidance to between $1.35 per share and $1.38 per share. This is overwhelmingly positive, as it is not only a guidance increase, but the figure is above the current consensus of $1.30 per share.
  • Same Store Sales Growth – Previously, the company expected that, in terms of same store sales growth throughout the quarter, it would see growth in the range between 11% and 13%. Now, the company is projecting that it will report same store sales growth for the quarter between 14% and 15%. This is also above the current consensus of 12.6%.

How The Stock Reacted To The News

At the end of the day, the news moves the market. It’s one of the first things that investors learn. In this particular case, the news was overwhelmingly positive. After all, any time a company reports expectations of beating guidance and consensus estimates with regard to earnings, investors are going to get excited.  And that’s exactly what Ulta Salon did. As a result, the stock is skyrocketing in the market today. Currently (12:06), the stock is trading at $262.70 per share after a gain of $23.61 per share (9.88%) thus far today.

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What We Can Expect To See Moving Forward

Moving forward, I have a relatively bullish opinion of what we can expect to see from ULTA. At the end of the day, investors are ultimately investing for growth. When it comes to Ulta Salon, the company is showing that it has the ability to grow, and that, when it works hard enough at it, it will see growth stronger than even it predicted. All in all, the news today was overwhelmingly positive and will likely keep excitement surrounding the stock for some time. As a result, I’m expecting to see further gains out of ULTA.

What Do You Think?

Where do you think ULTA is headed moving forward? Join the discussion in the comments below!

[Image Courtesy of Flickr]


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Genco Shipping GNK Stock News

Genco Shipping (NYSE: GNK)

Genco Shipping is having an incredibly strong day in the market today, and for good reason. The company announced that it has entered into several key agreements. Today, we’ll talk about the details of the agreements, what we’re seeing from the stock, and what we can expect to see from GNK moving forward.

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GNK Announces Equity Agreements

As mentioned above, Genco Shipping is having a strong day in the market today after announcing key equity agreements. According to a press release published early this morning, the company has entered into agreements with several funds for the purchase of $125 million worth of Series A Preferred Stock.

In the release, GNK said that the 3 largest holders involved included Centerbridge Partners, L.P., Strategic Value Partners, LLC, and Apollo Global Management, LLC. Under the agreements, those involved will purchase shares at a price of $4.85 per share, which represents a premium over the previous close at $4.51 per share.

In the release, GNK said that the sale of the Series A Preferred Stock is expected to fulfill conditions under commitment letters from the company’s lenders for a new $400-million credit facility. The funds will also be used to facilitate amendments made to the company’s existing $98-million credit facility.

How The Stock Reacted To The News

One of the first things that we learn as investors is that the news moves the market. In this case, the news released with regard to Genco Shipping was overwhelmingly positive. After all, through the equity raise, the company has the funding it needs to meet obligations associated with two key credit facilities. As a result, we’re seeing strong gains in the value of the stock today. Currently (2:41), the stock is trading at $7.75 per share after a gain of $3.38 per share (77.35%) thus far today.

What We Can Expect To See Moving Forward

First and foremost, we’ve all seen these types of breakouts, and GNK isn’t going to be any different. The truth is, what happened here is that the stock was incredibly close to breaking out of a bearish triangle as is. The positive news fueled the breakout. Now, we’re seeing ridiculous gains as excited investors follow this thing up to resistance, wherever that may be. Nonetheless, when it hits resistance, it’s going to hit it hard. Chances are that, within the next trading session or two, we’re going to see a massive decline in the value of Genco Shipping.

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In the long run, this thing really could go either way. As the economy around the world continues to improve, and online shopping continues to take more and more of the market share, shipping companies are likely to benefit. However, there are still some big financial risks here. So, if you’re going to take the risk, make sure that you do your research and understand it!

What Do You Think?

Where do you think VRX is headed moving forward? Follow CNA Finance and join the discussion at StockTwits, Twitter, Facebook, and Google+!

Winnebago Industries WGO Stock News

Winnebago Industries, Inc. (NYSE: WGO)

Winnebago Industries is having an incredible day in the market today, and for good reason. The company announced acquisition news that’s leading to excitement among investors. Today, we’ll talk about the acquisition news, how the stock reacted to the news, and what we can expect to see from WGO moving forward.

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WGO Gains On Acquisition News

As mentioned above, Winnebago Industries is having an incredible day in the market today as the result of an acquisition. In news announced early this morning, we learned that the company has entered into a definitive acquisition agreement.

Under the terms of the agreement, WGO will be acquiring Grand Design Recreational Vehicle Company in a deal valued at about $500 million. This amount will be paid in a mix of cash and newly issued shares.

The Acquisition Is A Great Move

The acquisition mentioned in the news was a strong move for WGO. Grand Design was founded in 2012 and has grown relatively quickly since it was created. In fact, in the last 12 months, the company brought in $428 million in revenue. As a fast growing company with annual revenue close to the total acquisition cost, Winnebago got a great deal on this acquisition.

Management Statements

Along with the news of the acquisition, management at both Grand Design and Winnebago offered statements. Here’s what they had to offer:

Grand Design has built a tremendous reputation and position in our industry by delivering quality products and high levels of customer satisfaction, and we are excited to welcome them to the Winnebago family… Grand Design’s differentiated and nimble approach to serving today’s towable consumer, proven ability to deliver exciting new products and deep industry expertise complement our existing capabilities and Winnebago’s iconic brand. The addition of Grand Design will accelerate our expansion in the towables business, creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market and to drive improved profitability and long-term value for shareholders.

I look forward to working closely with Don, along with the rest of the Grand Design team. With a shared focus on quality products, dealer relationships and customer service and satisfaction, together we will be even better positioned to serve dealers and customers well into the future.” – Michael Happe, President and CEO at WGO.

This is an exciting day for Grand Design and reflects the hard work and dedication of everyone involved in our rapid growth and success over the past several years – the Grand Design team, our valued customers and our investors. We have incredible respect for Winnebago and are honored to join an iconic company that shares our dealer-centric, customer-focused culture. This shared foundation makes our two companies an ideal fit and we look forward to maintaining our unique identity as an agile competitor as we leverage Winnebago’s strong platform to broaden Grand Design’s reach and deliver the best possible product and service to our dealers and our customers.” – Don Clark, Co-Founder and CEO at Grand Design.

How The Market Is Reacting To The News

As investors, one of the first things that we learn is that the news moves the market. Anytime positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock. The news released with regard to WGO was overwhelmingly positive. After all, the company has acquired a competitor in the industry for a very good price, ultimately expanding their product line. As a result, we’re seeing gains in the value of the stock today. Currently (1:16), the stock is trading at $29.32 per share after a gain of $5.75 per share (24.40%) thus far today.

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What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion with regard to what we can expect to see from Winnebago. At the end of the day, the company has already built a long-lasting and highly trusted brand when it comes to Class A recreational vehicles. Today’s acquisition of Grand Design will give the company a leg up in the towables sector, giving WGO a wider audience and better opportunities to make sales. All in all, today’s move was overwhelmingly strong and I’m expecting for it to lead to gains.

[Image Courtesy of Pixabay]

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Deutsche Bank AG DB Stock News

Deutsche Bank AG (NYSE: DB)

Deutsche Bank has been struggling in the market as of late, but that all seemed to change toward the end of the week. The reason for the volatility is relatively simple. The company is currently in negotiations with the United States Department of Justice. Today, we’ll talk about the negotiations, why the stock headed up late in the week, what we’re seeing in the market, and what we can expect to see from DB moving forward.

DB Is In Key Negotiations With The Department Of Justice

The 2008 and 2009 financial crisis was a hard time around the world. As the global economy crumbled, consumers lost entire retirements, jobs fell apart around the world, and more. As the crisis passed, it was time to look back and see what caused it so that we could avoid future instances of the same thing. In looking back, the United States Department of Justice found that while there were many causes of the crisis, one of the larger factors had to do with poor decisions made by some of the world’s largest banks. Deutsche Bank was one of these banks.

While most of the banks involved in the crisis have already settled with the United States Department of Justice, DB is one of the last to do so. Recently, there were major concerns, as the Department of Justice made the first offer of a $30 billion settlement. This would be one of the largest settlements and, for the bank, would be a massive hit.

Why The Stock Headed Up Toward The End Of The Week

While investors were incredibly concerned about the possibility of the settlement being overwhelmingly large, things changed toward the end of the week. Toward the end of last week, we started to learn of a possible $5.4 billion settlement.

If this were to be the final number, not only would DB have negotiated an incredible deal, the company would largely be let off of the hook. So, with the news of the possible low-cost settlement, the stock skyrocketed.

What We’re Seeing In The Market

As mentioned above, Deutsche Bank has been seeing gains in the market following news that a settlement may be far lower than expected. Yesterday, the stock closed the week off at $13.09 per share after a gain of $1.61 per share (14.02%). In after-hours trading, we’re seeing more gains. Currently DB stock is trading at $13.23 per share after a gain of 1.07% thus far.

What I’m Expecting To See Moving Forward

First and foremost, it’s important to be cognizant of the fact that negotiations are far from over. At the moment, a settlement of $30 billion seems unrealistic, and that’s a good thing. However, if you think that the negotiation is going to end with a $5.4 billion settlement, you’re an incredibly optimistic person. At the end of the day, such a small settlement for playing such a big role in the crisis is simply unrealistic. With that said, I have a relatively mixed opinion here. While DB is likely to be just fine in the long run, I believe that we’re going to see declines following the settlement news, as current rumors are setting expectations far too low.

[Image Courtesy of Wikimedia]

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Netflix NFLX Stock News

Netflix, Inc. (NASDAQ: NFLX)

Netflix is having an incredibly rough day in the market today, and for good reason. Concerns with regard to user growth following a higher price are leading to the bearish activity. The reemergence of these concerns follows comments made by big data company M Science. Today, we’ll talk about what M Science had to say, what is being forecast, how the stock is reacting to the news, and what we can expect to see from NFLX ahead.

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NFLX Falls On M Science Comments

As mentioned above, concerns with regard to Netflix’s ability to increase paid subscribers have come up, yet again, today. These concerns revolve around a story that started months ago. Essentially, there were several paid subscribers that were grandfathered in at low prices when the company decided to increase its rate. However, even the grandfathered customers now have to pay the higher rate.

Some believe that this was a very bad move for NFLX. At the end of the day, they believe that the $2 difference in price will cause massive amounts of subscribers to cancel their service. In fact, in a statement today, a big data company, M Science, said that it is expecting the churn rate to be so high that net subscriber growth in the United States in the third quarter will likely come in at absolute zero.

While the data hasn’t been released yet, NFLX investors are concerned. After all, the company said that it is expecting 400,000 new paid subscribers in the United States and analysts are expecting to see 351,000 new subscribers. If the company’s growth comes in at zero, that’s going to be a big hit to the bottom line as well as investor confidence.

What We’re Seeing In The Market Today

As investors, one of the first big lessons that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company as a result. However, the news released with regard to Netflix today was anything but positive. After all, M Science knows its data, and if they say subscriber growth is going to come it at zero, it’s a comment worth paying attention to. As a result, we’re seeing declines in the value of the stock today. Currently (2:12), NFLX is trading at $94.60 per share after a loss of $3.65 per share (3.72%) thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Netflix. While the news released today was a bit concerning, I have to say that the issue is being over-blown in a big way. The reality is that the cost of content, like the cost of everything else, goes up from time to time. As a consumer, I don’t see a $2 per month difference causing so many consumers to cancel their services. Sure, we might see some cancellations, but I don’t think that we will see cancellations at the scale that many are expecting.

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On top of that, NFLX has a bit going for it right now. The company went international about a year ago, and I believe that global growth will help the company in a big way. Also, the company’s agreement with Disney is a big deal and will likely lead to further subscriber growth. All in all, I’m expecting to see gains.

[Image Courtesy of Wikipedia]

FedEx FDX Stock News

FedEx Corporation (NYSE: FDX)

FedEx Corporation is having an incredible time in after-hours trading today, and for good reason. The company reported earnings for the first fiscal quarter, beating expectations in all respects. Today, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we can expect to see from FDX ahead.

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FDX Reports Solid Q1 Earnings

As mentioned above, FedEx Corporation is having a great time in after-hours trading following a strong earnings release. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, FDX did overwhelmingly well. Analysts expected that the company would generate earnings in the amount of $2.81 per share during the first quarter. However, the company actually generated earnings in the amount of $2.90 per share. Not only did the figure come in well ahead of analyst expectations, it blew away the $2.42 seen in the same quarter one year ago.
  • Revenue – As if strong earnings wasn’t enough to excite investors, FDX did incredibly well with regard to revenue as well. In terms of revenue, analysts expected that the company would generate $14.61 billion during the quarter. However, the company actually reported revenue in the amount of $14.66 billion. Once again, this showed an incredible improvement year-over-year. In the same quarter last year, the company generated revenue in the amount of $12.3 billion.

What We’re Seeing From The Stock As A Result

As investors, one of the first things that we learn is that the news moves the market. When positive news is released, stocks tend to see gains. Adversely, negative news will generally lead to declines. In this case, the news was overwhelmingly positive. After all, investors invest for growth, and, with strong earnings, FedEx has delivered the growth they are looking for. As a result, we’re seeing gains on the stock in after hours trading. Currently (6:22), the stock is trading at $167.40 per share after an after-hours gain of $4.85 per share (2.92%) thus far today.

What We Can Expect To See Moving Forward

While the earnings report was overwhelmingly positive, I have to say that, when it comes to FDX, I have a relatively mixed opinion of what we can expect to see. At the end of the day, as a global shipments company, the company is heavily exposed to economic conditions. At the moment, it seems as though economic conditions are starting to improve. If this trend continues, FedEX will likely continue seeing gains in the market.

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However, it’s important to consider the risks. At the moment, the global economy is unstable at best. Any shift in economic activity could cause declines in the number of shipments as consumers spend less money. At the end of the day, this could affect the stock in a negative way. So, while I remain relatively optimistic with regard to what we can expect to see from FDX, that optimism is definitely met with caution.

[Image Courtesy of Wikimedia]

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Ascena Retail Group ASNA Stock News

Ascena Retail Group Inc (NASDAQ: ASNA)

Ascena Retail Group is having an incredibly rough day in the market today, and for good reason. The company released its earnings for the fourth fiscal quarter, missing expectations in a big way. To make matters worse, the company’s guidance came in well below expectations. Today, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we can expect to see from ASNA moving forward.

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ASNA Misses The Mark On Earnings

As mentioned above, Ascena Retail Group is having a horrible trading session today. The company released its financial results for the fourth fiscal quarter. While revenue came in ahead, earnings missed expectations. To make matters worse, guidance wasn’t quite what investors wanted to see. Here’s what we saw from the report:

  • Top Line Revenue – If there’s one area on the report that investors weren’t upset with, it’s top-line revenue. During the fourth quarter, analysts expected that the company would generate revenue in the amount of $1.77 billion. However, ASNA actually reported revenue for the quarter in the amount of $1.81 billion.
  • Earnings Per Share – Unfortunately, earnings per share wasn’t quite so positive. During the fourth quarter, analysts expected that ASNA would generate earnings in the amount of $0.16 per share. However, the company actually reported earnings for the quarter in the amount of $0.08 per share, cutting analyst expectations in half.
  • FY17 Earnings Guidance – When it comes to earnings guidance, Ascena Retail Group missed the mark in a big way. For the full fiscal year 2017, the company said that it is expecting earnings to come in between $0.60 and $0.65 per share. This falls well short of analyst expectations at $0.83 per share.
  • FY17 Revenue Guidance – Unfortunately, the picture didn’t get any better when looking at guidance with regard to top-line revenue in the full year 2017. During the year, analysts are expecting that ASNA will generate revenue in the amount of $7.17 billion. However, the company said that it is expecting revenue for the year to come in the range between $6.9 and $7.0 billion.

What We’re Seeing From The Stock

As investors, one of the first things that we learn is that it’s important to watch news surrounding stocks. That’s especially the case when news has to do with earnings reports. Unfortunately for ASNA, the news wasn’t positive. An overwhelmingly negative earnings report mixed with poor guidance is sure to get under the skin of investors. As a result, we’re seeing big declines today. Currently (12:47), the stock is trading at $5.82 per share after a loss of $2.30 per share (28.33%).

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What We Can Expect To See Moving Forward

While I would love to say that Ascena Retail Group is reaching the end of the struggles, that’s simply not the case. The reality is that the retail industry is having a hard time. From the guidance offered, it’s clear that ASNA expects for their blues to continue throughout the next year. All in all, things aren’t looking good for the short or midterm. However, a near-term economic turn around could make the long-term picture incredibly appealing.

[Image Courtesy of Wikipedia]

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Deutsche Bank AG DB Stock News

Deutsche Bank AG (NYSE: DB)

Deutsche Bank has had a rough time in the market as of late, and for good reason. As one of the leading banks in Germany, the company is highly exposed to the economic turmoil seen in Europe and the UK. However, for the bank, things have gone from bad to worse. Today, the stock seems to be crumbling under legal pressure. Below, we’ll talk about the story, what we’re seeing from the stock, and what we can expect to see from DB ahead. So, let’s get right to it…

DB Crumbles Under Justice Department Proposal

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As mentioned above, Deutsche Bank is having an incredibly rough day in the market today after receiving a proposed offer from the Justice Department. At the moment, the bank is under high profile mortgage securities investigations. It is believed that the bank was one of the many that made mistakes leading up to the global financial crisis experienced in 2008 and 2009.

In after-hours last night, it was announced that the Justice Department proposed that DB pay a fine of $14 billion. Ultimately, this fine would resolve the investigations. If the company agrees to pay the fee without further litigation, it would mark one of the biggest fines paid by a bank in order to settle similar claims. Unfortunately, this figure came in much higher than what investors expected to see.

It is important, however, to keep in mind that the $14 billion settlement offer is just a preliminary offer. DB isn’t required to agree to the offer, and there are likely to be talks between the lawyers hired by the investment bank and the government. Nonetheless, this is incredibly bad news for the already struggling bank.

What We’re Seeing From The Stock As A Result Of The News

One of the first things that we learn as investors is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock that’s representative of the company as a result. Unfortunately, however, today’s news surrounding Deutsche Bank was anything but positive. As a result of the higher-than-expected settlement offer from the Justice Department, we’re seeing incredible declines on the stock in today’s trading session. Currently (12:54), the DB stock is trading at $13.36 per share after a loss of $1.40 per share (9.49%) thus far today.

What We Can Expect To See Moving Forward

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While I would love to say that the declines on the stock are overblown and that we will see gains relatively soon, I don’t believe that this will be the case. At the end of the day, Deutsche Bank is being hit from all angles. On the economic side of the coin, the company is already struggling. Following the Brexit, the European economy has continued to deteriorate with little to no action from the European Central Bank. This, alone, is enough to send DB spiraling downward. However, for this to be taking place while the company is in the midst of settling legal action, things just aren’t looking good. A $14-billion blow to the company would be massive, especially considering current conditions. All in all, I’m expecting to see further declines out of the stock.

[Image Courtesy of Wikimedia]

Morgans Hotel Group Co. MHGC Stock News

Morgans Hotel Group Co. (NASDAQ: MHGC)

Morgans Hotel Group is having an incredible day in the market today, and for good reason. The company received an unsolicited takeover offer, and few things have the potential to get investors as excited as acquisitions. Today, we’ll talk about the news, what we saw from the stock as a result, and what we can expect to see from MHGC moving forward. So, let’s get right to it…

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MHGC Receives Unsolicited Takeover Offer

As mentioned above, Morgans Hotel Group is having an incredibly strong day in the market today after announcing that it has received a takeover offer. The offer came by way of a letter that was dated September 13, 2016. In the letter, a group identified as “Bidder V” offered the company $2.75 per share in a takeover offer.

However, the $2.75 million wasn’t the only thing that was offered. In fact, Bidder V also provided a letter of intent from a financing source. This letter showed that the source is ready, subject to due diligence and definitive documentation, to provide up to $500 million in capital to support the acquisition.

This Isn’t The First Offer From Bidder V

The news today isn’t the first time that we’ve seen news of this particular bidder looking to purchase MHGC. In fact, they have offered the same exact transaction in the past. On July 18th, the company received a letter from the bidder offering $2.75 per share. However, the deal fell apart when the bidder failed to execute a non-disclosure agreement in a timely manner in order to work toward a definitive proposal agreement. However, this time around things are different. In the letter received yesterday, the bidder included an executed non-disclosure agreement. So, chances are they mean business.

Redacted Letter Copy

What follows is a redacted copy of the letter that was received.

Dear Mr. Lorber:

Following our letter of July 18 (the “July 18 Letter”), [REDACTED] and our affiliate [REDACTED] have continued to work with potential financing sources in order to complete the work necessary to formulate a definitive bid to acquire Morgans Hotel Group Co. (“MHGC”). We are writing to reaffirm our proposal to acquire 100% of MHGC’s common stock at an all cash price of $2.75 per share. We recognize that you have scheduled a stockholder meeting for tomorrow, but we believe that your stockholders will find our proposal more attractive than the transaction with SBE to be considered at that meeting.

We are now working with [REDACTED] and are pleased to present this proposal. [REDACTED] has committed to provide the full amount necessary to complete the transaction pursuant to the attached letter. As I’m sure you are aware, [REDACTED].

As mentioned in the July 18 Letter, we anticipate redeeming in full MHGC’s outstanding Series A Preferred Securities, including the liquidation preference plus any accrued distributions and anticipate assuming or refinancing MHGC’s outstanding mortgage debt. In addition, concurrently with entering into definitive documentation, we would be willing to pay the termination fee payable by MHGC under the merger agreement with SBE.

Given the work we have done to date and our knowledge of MHGC and the industry, our remaining due diligence requirements are confirmatory only and, with your cooperation, can be completed in very short order. We have attached an executed version of the confidentiality agreement that was negotiated with your counsel and are prepared to move expeditiously to reach agreement on transaction terms as soon as possible. We anticipate we will be in a position to promptly execute definitive documentation on substantially similar terms to those contained in the merger agreement with SBE, subject to any necessary changes to reflect our transaction and obviously with at least the level of deal certainty that you have with SBE.

This letter does not create any binding obligation on the part of either us or MHGC. No such obligation will exist until a mutually acceptable definitive agreement is executed and delivered. We would ask that you keep the terms and existence of this letter confidential.

We are eager to start moving forward on this mutually beneficial transaction, and to that end look forward to your response by September 14, 2016.

Sincerely,

[REDACTED]

How The Stock Reacted To The News

As investors, we know that few things seem to build as much excitement as news of a potential acquisition. With the news surrounding MHGC, excitement is in the air and the stock is climbing. Currently (1:49), Morgans Hotel Group shares are trading at $2.08 per share after a gain of $0.31 per share (17.51%) thus far today.

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What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from MHGC. At the moment, there seems to be a relatively high likelihood of this acquisition actually panning out to be something – especially considering the fact that the offer was presented with a letter of intent from a financing source as well as the executed non-disclosure agreement that the bidder failed to provide during the first talks. All in all, MHGC has built a strong brand, and it looks like they may be acquired relatively soon.

[Image Courtesy of Wikipedia]

Thought Leader Discussions

Gevo, Inc. GEVO Stock News

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Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...