ZAIS Group Holdings (NASDAQ: ZAIS)
ZAIS Group Holdings is having a spectacular time in today’s trading session. At the open, the stock was trading in the green, and quickly pushed toward the top. Now, the stock is trading on overwhelmingly impressive gains, as the price has nearly doubled. Below, we’ll talk about what we’re seeing from ZAIS, why, and what we’ll be watching for ahead.
What We’re Seeing From ZAIS
As mentioned above, ZAIS Group Holdings is having an incredibly strong day in the market today. At the opening bell, the stock was already trading well into the green. However, the open of the market did not stop the run. In fact, throughout the morning, we’ve seen some big gains on the stock. At the moment (11:19), ZAIS is trading at $3.60 per share after a gain of $1.55 per share (75.61%) thus far today.
Why The Stock Is Headed Up
As always, as soon as our partners at Trade Ideas sent us the alert that ZAIS was making a run for the top, the CNA Finance team started digging to see why the stock was moving. In this particular case, we were able to dig up an interesting SEC filing. It seems as though the gains are the result of a 13D Filing.
Early this morning, news broke that a 13D filing was processed by the company’s founder, Christian Zugel. The reason this is interesting is that this isn’t a 13G (passive investor stake). Instead, the filing was a 13D, something that means an activist investor is getting involved! In the filing, the following was offered:
“As the Issuer has previously disclosed, it has been undertaking a strategic review of its business and has retained Berkshire Capital Securities LLC as its financial advisor. In connection with such strategic review, the Reporting Person has discussed with the Board, and may in the future discuss, the possible sale or acquisition of assets, a merger or other business combination or other similar strategic transaction to enhance shareholder value. In addition, the Reporting Person has considered and discussed with the Board, and may in the future consider and discuss with the Board, terminating the registration of the Class A Shares under the Act so as to cease periodic and other public company compliance and reporting obligations, if the Issuer is then eligible to do so, or engaging in transactions or other acts designed to make the Issuer so eligible, including, but not limited to, a going private transaction effected through a merger or reorganization involving the Issuer, and/or a tender offer for the Class A Shares. In addition, the Reporting Person has discussed, and may continue to discuss, directly with the Issuer’s major shareholders, principally d.Quant Special Opportunities Fund, L.P. and its general partner, Neil Ramsey, potential strategic alternatives designed to return liquidity to the Issuer’s shareholders, including the transactions referred to above as well as transactions which would provide liquidity to the Issuer’s shareholders other than the Reporting Person and entities affiliated with Neil Ramsey. There is no assurance that any of the alternatives that have been discussed, reviewed and considered will be pursued and if pursued will be consummated.”
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team will be watching ZAIS incredibly closely. With the founder of the company taking an activist stake, we’re likely to see some interesting news surrounding it relatively soon. We’ll be watching the news closely and bringing it to you as it breaks!
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