Green Dot price target raised to $48 from $40 at BTIG » 09:2106/0306/03/20
BTIG analyst Mark Palmer…
BTIG analyst Mark Palmer raised the firm's price target on Green Dot (GDOT) to $48 from $40 and keeps a Buy rating on the shares. The analyst is positive on the company's renewed focus on leveraging its bank charter, which can "translate into new partnerships and enhancements" that can create a "foundation for future growth". Palmer is citing Green Dot's updated features and benefits for its Walmart (WMT) MoneyCard reloadable debit card program unveiled last week as well as its new bank account initiative "aimed at unbanked and underbanked immigrants."
PepsiCo announces Wern-Yuen Tan as CEO of APAC » 06:0406/0306/03/20
PepsiCo (PEP) announced…
PepsiCo (PEP) announced that Wern-Yuen Tan has been appointed CEO of Asia Pacific, Australia, New Zealand and China, or APAC, overseeing all of PepsiCo's operations in the region. Tan, who will begin his new role on June 15, will be based in Singapore and will report to PepsiCo CEO Ramon Laguarta. Prior to PepsiCo, Tan served as president and CEO of Walmart China (WMT) where he led a team of 100,000 associates responsible for over $10B in annual revenue across the Walmart, Sam's Club and e-commerce businesses.
Agree Realty receives May rent payments from 87% of its portfolio » 16:0706/0106/01/20
As of May 29, Agree…
As of May 29, Agree Realty (ADC) received May rent payments from 87% of its portfolio and entered into May deferral agreements with tenants representing approximately 4% of its portfolio. 100% of the company's investment grade tenants paid May rent. Total acquisition activity in the second quarter through May 29 amounted to $147.4M with six Walmart (WMT) stores acquired comprising approximately 39% of acquisition capital deployed. Walmart has accounted for approximately 37% of the company's year-to-date acquisition capital invested and remains the company's top tenant at approximately 7.5% of annualized base rent. Approximately 87.9% of annualized base rents acquired year-to-date are derived from investment grade retail tenants, increasing the company's exposure to investment grade retailers to 61.0% of annualized base rent as of May 29. The company sold seven properties quarter-to-date through May 29, 2020 for gross proceeds of approximately $16.6M. Notable disposition activity included the sale of six franchise restaurants, further reducing the company's franchise restaurant exposure to 1.6% of annualized base rent as of May 29. The company has executed a new twenty-year net lease for its former Art Van flagship location in Canton, Michigan with an anticipated recovery rate of 100% of the previous rent. Rent is expected to commence during the latter half of the third quarter. This was the only Art Van furniture location in the company's portfolio.
Flipkart to re-apply for food retail license in India, Reuters reports » 09:1706/0106/01/20
Walmart's Flipkart unit plans to re-apply for a food retail license in India after reports said its earlier proposal was rejected by the government last week, Reuters' Anuron Kumar Mitra reports. "We are evaluating the department's response and intend to re-apply as we look to continue making a significant impact on small businesses and communities in India," the company said in a statement. Reference Link
Walmart staff say AI-based tech fails to flag stealing, Wired reports » 06:1206/0106/01/20
Some Walmart staff claim…
Some Walmart staff claim AI-based tech used in stores to prevent shoplifting misidentifies innocuous behavior as theft and often fails to flag actual stealing, Wired's Louise Matsakis reports. The retailer has denied there is any widespread issue with the software, the report notes. Reference Link
Six Blue Cross Blue Shield insurers sue CVS Health, Axios reports » 09:2905/2805/28/20
Six Blue Cross Blue…
Six Blue Cross Blue Shield insurers have sued CVS Health (CVS), alleging it overcharged them based on "artificially inflated prices" for generic drugs and concealed the true cash prices of those drugs, Axios' Bob Herman reports. According to the report, the Blue Cross Blue Shield companies allege CVS offered lower cash prices on generic drugs to compete with Walmart (WMT) and other low-cost pharmacies, but told insurers those cash prices were significantly higher than they actually were. Reference Link
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Walmart partners with thredUP to enter fashion resale market » 08:1405/2705/27/20
Denise Incandela, Head of…
Denise Incandela, Head of Fashion, Walmart U.S. eCommerce, said in a statement: "Over the last few years, we've focused on expanding our assortment of quality, on-trend, accessible fashion to help customers outfit themselves no matter their personal style or budget. In fact, we've added nearly 1,000 brands to our online assortment, including national brands like Champion, Jordache and Levi Strauss. We also offer private label brands Time and Tru, Terra & Sky, Wonder Nation and George, and customers love our exclusive, elevated brands like Scoop, Sofia Jeans by Sofia Vergara and EV1 by Ellen DeGeneres. I'm thrilled to announce that we'll be offering even more fantastic brands with our entry into the popular fashion resale market through our online partnership with thredUP, the leading resale platform for fashion and accessories at mass market prices. Starting today, customers can shop www.walmart.com/thredup to find nearly 750,000 pre-owned items across women's and children's clothing, accessories, footwear and handbags."
Quibi's advertisers look for new deals amid low viewership, WSJ reports » 06:5205/2705/27/20
PEP, YUM, BUD, WMT
Quibi's performance since launching last month has led to advertisers seeking to defer payments and the company looking to cut expenses, Benjamin Mullin and Suzanne Vranica of the Wall Street Journal reported, citing people familiar with the situation. Advertisers, including PepsiCo (PEP), Yum Brands' (YUM) Taco Bell, Anheuser-Busch (BUD) and Walmart (WMT), have asked for the changes reportedly because of concerns about low viewership or the impact of the COVID-19 pandemic. Quibi initially struck advertisement deals valued at $150M before its launch. Reference Link
Fly Intel: Top five weekend stock stories » 19:5805/2505/25/20
HTZ, REGN, SNY, AMZN, WMT, NVAX, WGO, POOL, YETI, DBX
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Hertz Global (HTZ) has announced that it and certain of its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. "The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company's revenue and future bookings. Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today's action. The financial reorganization will provide Hertz a path toward a more robust financial structure that best positions the Company for the future as it navigates what could be a prolonged travel and overall global economic recovery," the company said in a statement. Hertz's principal international operating regions including Europe, Australia and New Zealand are not included in the U.S. Chapter 11 proceedings. In addition, Hertz's franchised locations, which are not owned by the company, also are not included in the Chapter 11 proceedings. 2. Regeneron Pharmaceuticals (REGN) announced the commencement of an underwritten public secondary offering of its common stock through which Sanofi (SNY) intends to exit its investment in Regeneron shares. The shares being offered by Sanofi will be sold in an underwritten public offering. Sanofi currently owns approximately 23.2M Regeneron shares and intends to sell approximately 12.8M shares in the public offering. Sanofi also expects to grant the underwriters a 30-day option to purchase an additional 10% of the shares offered in the base offering. The registered offering and share repurchase will have no impact on the ongoing collaboration between Regeneron and Sanofi. Regeneron also announced that subject to and immediately following the close of the secondary offering, Regeneron agreed to repurchase approximately $5B of common stock directly from Sanofi. The purchase price to be paid by Regeneron will be equal to the net offering price per share after deducting any underwriters' discount and commission. Following the offering and Regeneron's $5B share repurchase, and assuming that the underwriters exercise their option to purchase additional shares in full, Sanofi will have disposed of all of its shares, other than 400,000 shares it intends to retain. 3. The impact of COVID-19 hasn't been evenly felt among the nation's retailers, with the biggest and strongest not just surviving, but thriving, while many smaller store chains and mom-and-pop shops face disaster, Teresa Rivas wrote in this week's edition of Barron's. In the past five years, the rise of e-commerce has changed the retail industry, tilting the landscape in favor of behemoths such as Amazon (AMZN) and Walmart (WMT) that can afford slick websites and fast, free delivery service, the author noted. Now, without a vaccine or effective treatment for coronavirus available near-term, these well-capitalized companies are likely to keep gobbling up market share at the expense of smaller operators, Rivas contended. 4. Novavax (NVAX) announced enrollment of the first participants in a Phase 1/2 clinical trial of its coronavirus vaccine candidate, NVX-CoV2373, a stable, prefusion protein made using its proprietary nanoparticle technology. NVX-CoV2373 includes Novavax' proprietary Matrix-M adjuvant to enhance immune responses and stimulate high levels of neutralizing antibodies. Preliminary immunogenicity and safety results from the Phase 1 portion of the trial are expected in July 2020. The Phase 1/2 clinical trial is being conducted in two parts. The Phase 1 portion is a randomized, observer-blinded, placebo-controlled trial designed to evaluate the immunogenicity and safety of NVX-CoV2373, both adjuvanted with Matrix-M and unadjuvanted. The trial is enrolling approximately 130 healthy participants 18 to 59 years of age at two sites in Australia. The protocol's two-dose trial regimen assesses two dose sizes with Matrix-M and without. The Phase 2 portion is expected to be conducted in multiple countries, including the United States, and would assess immunity, safety and COVID-19 disease reduction in a broader age range. This Phase 1/2 approach allows for rapid advancement of NVX-CoV2373 during the pandemic. The trial is being supported by the recently announced funding arrangement with the Coalition for Epidemic Preparedness Innovations. 5. Winnebago Industries (WGO), Pool Cor. (POOL), Yeti (YETI) and DropBox (DBX) saw positive mentions in this week's edition of Barron's.
Retail giants to keep gaining ground in post-COVID world, Barron's says » 11:3005/2305/23/20
The impact of COVID-19…
The impact of COVID-19 hasn't been evenly felt among the nation's retailers, with the biggest and strongest not just surviving, but thriving, while many smaller store chains and mom-and-pop shops face disaster, Teresa Rivas writes in this week's edition of Barron's. In the past five years, the rise of e-commerce has changed the retail industry, tilting the landscape in favor of behemoths such as Amazon (AMZN) and Walmart (WMT) that can afford slick websites and fast, free delivery service, the author notes. Now, without a vaccine or effective treatment for coronavirus available near term, these well-capitalized companies are likely to keep gobbling up market share at the expense of smaller operators, Rivas contends. Reference Link