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- High-Growth Tech Innovator Expanding Fast 🚀
High-Growth Tech Innovator Expanding Fast 🚀
This stock could be on the verge of greatness as tailwinds continue to converge behind it.
Chris Dinello
June 24, 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 📈
Stocks hovered close to flat on Friday, with major indexes all moving by no more than 0.2%. The Russ2K made the biggest move with a 0.2% gain.
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Futures are ticking higher in early trading, but they’re only carrying modest gains so far. S&P 500 contracts are currently up by less than 0.1%.
What to Watch Today:
The Dow is flirting with new record-highs as it enters this trading week. The blue-chip index has been quietly plugging ahead the past few weeks, despite less-than-favorable investor sentiment. If the Dow can continue its trending, it could be a sign that the large-cap indexes will follow close behind.
This company has quadrupled its sales in two years and secured major partnerships.
After years of quietly plugging away, its breakout moment could be drawing near, and there’s still time to position yourself.
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Premarket Highlights 🔎
Target Partners with Shopify to Expand Third-Party Marketplace 🤝
Starting Monday, Target [TGT] will allow companies using Shopify [SHOP] to apply to join its third-party marketplace, Target Plus. This move aims to bring in smaller and emerging brands to enhance Target’s online offerings. Financial terms and the deal's duration were not disclosed.
Strategic Benefits 📈
Target’s Chief Guest Experience Officer, Cara Sylvester, mentioned that Shopify will help identify popular items quickly for Target’s online shoppers and possibly for store shelves. The collaboration is expected to boost Target’s online assortment, increasing customer visits and purchases from both marketplace sellers and Target’s own brands.
Growth Challenges 📉
Target has faced declining sales, with four consecutive quarters of falling comparable sales and three out of four quarters of overall sales drops. The company’s digital sales saw a modest growth of 1.4% in the first quarter. Target aims to return to sales growth in the second quarter, forecasting flat to 2% growth in comparable sales for the full year.
Competitive Landscape 📊
Target Plus currently has over 1,200 sellers, significantly fewer than Amazon's estimated 2 million and Walmart's 135,000. Despite this, Target’s marketplace is gaining momentum, with seller and product counts more than doubling over the past year. The marketplace features a wide range of products, from viral items like the UnBrush to premium brands like Ray-Ban and Coach.
Performance & Prospects 💰
Target’s shares have underperformed compared to the broader market, up about 2% this year against the S&P 500’s nearly 15% increase. Shopify, facing its own challenges, saw its shares drop 17% this year. Target Plus, despite its smaller scale, is one of the fastest-growing parts of Target’s business, contributing to the company’s advertising revenue through Roundel, which grew over 20% in the most recent quarter.
Featured Earnings 💰️
Enerpac Tool Group [EPAC] ... PM
Beyond Air [XAIR] ... PM
Economy 🏗
None scheduled
Running Hot 🔥
Gainers
Agrify [AGFY] >> +85.4%
Sobr Safe [SOBR] >> +18.8%
Roadzen [RDZN] >> +18.0%
Decliners
G1 Therapeutics [GTHX] >> (55.6%)
Effector Therapeutics [EFTR] >> (70.9%)
DermTech [DMTK] >> (16.9%)
Alnylam Pharma [ALNY] - Last Close: $165.70
This morning, Alnylam announced its heart disease drug vutrisiran met all primary & secondary endpoints at its Helios-B Phase 3 trial.
The company said the drug achieved statistical significance in both the overall and mono therapy patient populations.
ALNY is up 35.9% on over 150K shares traded this morning.
My Take: This is a big move for ALNY, given its $20 billion-plus market cap, so it seems investors are very bullish on this news.
Alimera [ALIM] - Last Close: $3.15
Alimera has agreed to be acquired by ANI Pharmaceuticals [ANIP] in a cash and CVR deal valued at roughly $381 million.
Under the deal, ANI will pay $5.50 per share in cash upon close, plus a non-tradable contingent value right worth up to $0.50 per share, provided the company hits specific revenue targets in 2026 and 2027.
Both companies’ boards have approved the deal, and they expect to close the transaction by late Q3 2024.
ALIM is up 76.5% on roughly half-a-million shares traded.
My Take: ALIM landed a pretty square deal for itself, but this stock is already trading above the acquisition price so there’s not a lot of upside left on the table at this point.
Ault Disruptive Technologies [ADRT] - Last Close: $16.58
Ault just announced a merger agreement with Gresham Worldwide, a “high-performance purpose-built electronic solutions for mission critical applications.”
The SPAC will be renamed “Gresham Worldwide” upon close, and its ticker symbol will change to GIGA.
The new company’s pro-forma enterprise value is about $83 million with up to $1 million in additional cash, assuming no redemptions by AULT shareholders.
The deal is expected to close in Q4 and the newly combined company’s shares will list on the NYSE.
ADRT is up 20.3% but volume is crazy low in early trading.
My Take: SPAC trades have really suffered as of late. It seems like shares crash every time a deal is announced, so I would be careful with ADRT here. If you want in on GIGA, maybe wait till after the post-close pullback to make your move.
Sunrise New Energy [EPOW] - Last Close: $0.5993
After Friday’s close, Sunrise announced its subsidiary had been granted key funding by Guizhou Province for its lithium-ion battery patent.
According to a press release, the patent solves critical and common technical issues associated with balancing power performance and efficiency.
EPOW is up 30.9% this morning, on more than 4 million shares traded.
My Take: EPOW has been downtrending through most of 2024, but it saw a huge volume spike on Friday. The drawdown may be nearing its end but, with China stock, you never really know what to expect.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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