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- The U.S. MUST Secure This Critical Tech🚨
The U.S. MUST Secure This Critical Tech🚨
Dependence on foreign supply chains for this key resource is a major national security issue for the U.S. and Canada.
Chris Dinello
April 02, 2024
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Let’s get ready to trade!
Markets 📈
The market opened the trading week on a down note, with most major indexes posting fractional losses on the day. The Nasdaq was the exception with a minuscule gain of just 0.1%.
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Futures are drifting lower in early trading. S&P 500 contracts are down by roughly 0.4%.
What to Watch Today:
Today’s schedule appears pretty uneventful at first glance. There are no major names reporting in the premarket, and the economic calendar is rather tame. However, several Federal Reserve officials will speak this afternoon, and their comments could provide some insights into the central bank’s outlook for rate cuts.
Rare Earth Elements are a group of metals crucial for semiconductor chips, renewable energy, electric vehicles, and MUCH more.
The problem is China accounts for 70% of all global production of these crucial resources.
For the U.S. and Canada, it has become a matter of national security, but one tiny company could be the key to a secure domestic supply chain.
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Premarket Highlights 🔎
⚡️ GE Vernova Debuts as Standalone Stock
GE's long-standing conglomerate structure undergoes a significant transformation as its power and renewable-energy business, GE Vernova, commences trading as an independent entity. This event marks another critical step in GE's restructuring, following the earlier separation of GE Healthcare.
Shareholder Allocation and Trading Details 📈
GE shareholders have been allocated shares in the new spinoff, receiving one GE Vernova share for every four shares of GE held. Trading under the ticker GEV on the New York Stock Exchange, GE Vernova's pre-official split trading closed at $142.02 per share, providing an early valuation benchmark.
GE Aerospace Retains Original Ticker ✈️
Post-separation, the remaining portion of GE, focusing on aerospace, will continue to operate under the iconic GE ticker symbol, marking a new era for both entities with distinct market identities and strategic focuses.
S&P 500 Inclusion and Industry Impact 🌐
GE Vernova's inclusion in the S&P 500 from day one signifies the market's recognition of its potential as a leading player in the power and renewable energy sector. This spinoff comes amidst a broader trend of industrial giants reevaluating and restructuring their business models for enhanced focus and agility.
Featured Earnings 💰️
Paychex [PAYX] ... AM
Allego [ALLG] ... AM
Cal-Maine Foods [CALM] ... PM
Dave & Buster's Entertainment [PLAY] ... PM
BIO-Key International [BKYI] ... PM
C-Bond Systems [CBNT] ... PM
Economy 🏗
Factory orders [Feb] ... 10:00a
Job openings [Feb] ... 10:00a
Fed Governor Michelle Bowman speaks ... 10:10a
Cleveland Fed President Loretta Mester speaks ... 12:05p
San Francisco Fed President Mary Daly speaks ... 1:30p
U.S. auto sales [Mar] ... TB
Running Hot 🔥
Gainers
Trio Petroleum [TPET] >> +90.7%
XTI Aerospace [XTIA] >> +47.0%
Swiftmerge Acquisition [IVCP] >> +20.5%
Decliners
Acorda [ACOR] >> (74.6%)
Zapata [ZPTA] >> (53.7%)
Gritstone Oncology [GRTS] >> (42.5%)
Ashford [AINC] - Last Close: $2.22
Asset management firm Ashford has announced a plan to terminate registration of its common stock from the NYSE American exchange.
The company says it’s making the move to “avoid the substantial cost and expense of being a public reporting company” and enhance shareholder value.
The plan is expected to be initiated in Summer 2024, pending shareholder approval.
AINC is up 88.2% on 3 million shares traded.
My Take: This is a complicated financial maneuver, but the market seems to like it. It could result in a big payday for AINC shareholders when the deal closes.
Kidpik [PIK] - Last Close: $4.35
Tiny eCommerce seller Kidpik has officially entered into an all-stock definitive merger agreement with Nina Footwear.
Under the terms of the deal, Nina Footwear shareholders will be issued PIK common shares and own 80% of the combined company upon closing.
The newly combined company will change its name to Nina Holdings and trade under the symbol NINA.
PIK is up 36.6% on nearly 2 million shares traded.
My Take: The PIK deal will give you an opportunity to get into position in NINA early, but only time will tell if this stock’s gains will outlive the hype from this announcement.
VivoPower [VVPR] - Last Close: $1.45
A Form 8-K filing revealed VivoPower shareholders will get a special stock dividend as a SPAC merger agreement announced minutes ago.
Cactus Acquisition Corp I has agreed to a reverse merger with Tembo, an electric utility vehicle company and VivoPower subsidiary.
Under the terms of the deal, VVPR shareholders will receive 16.76 million Tembo Dividend Shares, representing 20% of its total float, upon closing.
Investors will receive 5 Tembo Dividend Shares for each VVPR share they hold.
VVPR is up 58.9%, but volume is thin at just 40K shares.
My Take: This seems like a pretty good deal for VVPR shareholders, but, then again, it’s somewhat offset by the spin-off of the company’s Tembo subsidiary.
MSP Recovery Class [LIFW] - Last Close: $0.6670
A Form 13G regulatory disclosure filed in yesterday’s aftermarket revealed Palantir Technologies [PLTR] has taken a 6.5% stake in MSP Recovery.
Palantir reported obtaining the stake in the healthcare recoveries & data analytics as of March 22nd, 2024.
The news propelled LIFW to a 51.4% gain on nearly 9 million shares traded in today’s premarket.
My Take: PLTR has deep pockets, and its small position could signal that it is interested in acquiring LIFW.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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