Consumer Products and Services

Stalled TV deal sharpens U.S. competition picture

28 Feb 2023

A hedge fund’s $9 bln plan to acquire broadcaster Tegna hit a likely fatal regulatory dead-end. The takeover doesn’t cross typical red lines, and the limbo threatens to jack up the price. It’s fresh evidence of the Biden administration pulling out all the trustbusting stops.

Beauty activism searches for Mr. Congeniality

23 Feb 2023

Bath & Body Works is a prime post-Covid activist target, as shares slump from a dizzying peak and demand slips. Little wonder Dan Loeb has shown up. But with his grievances focused on governance and big changes already made, this looks better solved without a knock-down fight.

Movie theater chain’s spotlight will stay dark

23 Feb 2023

A Pennsylvania pension fund is suing AMC over a decision to issue preferred stock without a vote. The CEO speaks of empowering investors, an irony given his decisions. And ultimately he is missing the point – AMC’s business is too far gone, and will likely need restructuring soon.

Scrap-car deal battle is a heaping mess

23 Feb 2023

Ritchie Bros’ $7 bln deal for salvage-yard operator IAA has seen dueling activists, wild synergy projections, and a big hit to the buyer’s stock. The deal’s value looks slim unless optimistic promises pan out – the problem is, they include gains investors can get on their own.

Picking crypto exchange winner is a fool’s errand

22 Feb 2023

As questions about Binance mount, $15 bln Coinbase is benefiting. Despite swinging to a loss last quarter, its shares have doubled this year. If anything, it’ll be the smallest loser. The industry’s post-FTX fate increasingly rests with U.S. regulators, who are losing patience.

Walmart’s ho-hum is the new fabulous

21 Feb 2023

The $390 bln retailing giant said its next fiscal year isn’t going to be great. Low growth and slim margins would typically be concerning. But it turns a profit, which can’t be said for Amazon’s retail business. Plus, Walmart doesn’t have tech stink attached to its name.

Subway’s turnaround to-do list is a foot long

17 Feb 2023

The sandwich maker’s global store count is almost as big as McDonald’s, yet as it seeks new owners, its mooted $10 bln valuation pales in comparison. It doesn't help that Subway's U.S. shops each pull in only an eighth as much in sales as their golden-arched rival’s.

YouTube CEO exit is an unlucky break

16 Feb 2023

Veteran Susan Wojcicki is leaving the helm of the video service at a critical time for parent Alphabet. Advertising is under duress from rivals and regulators want to unwind past acquisitions. Executives come and go, but the last thing Google needs is turmoil from within.

Disney clash with activist Peltz will have sequel

16 Feb 2023

While the $200 billion media company’s new cost-cut program persuaded cage-rattler Nelson Peltz to call off his bid for a board seat, there’s much more to do. If his previous campaigns at P&G and DuPont are a guide, what looks like a harmonious ending may only be an intermission.

Cost surge leaves grocers crying in the aisles

16 Feb 2023

Producers like Unilever and Nestlé are raising prices by as much as 10% to offset more expensive inputs. That is hurting supermarkets like Kroger and Tesco, which face falling margins and consumer anger. Investors can benefit by backing the suppliers and ditching the shopkeepers.

Comcast poised to spark streaming consolidation

15 Feb 2023

Hulu’s minority owner is a logical buyer for the rest after controlling partner Disney indicated it’s open to selling. The cable operator’s roots are in video distribution, and too many Netflix-wannabes abound. Boss Brian Roberts could kick off an overdue industry reckoning.

BYD’s world-beating EVs brace for a rougher ride

15 Feb 2023

The Chinese electric-car star outsold Tesla last year, and net profit zoomed up more than 1,000%. Economies of scale rule in a young industry. But even the leaders will struggle to keep up the pace as overcapacity and accelerating competition slam the world’s largest auto market.

Maybe U.S. inflation is transitory after all

14 Feb 2023

Prices rose 0.5% in January, a higher month-on-month rate than central bankers would like. Yet temporary events like a nationwide egg shortage were major contributors, and those price hikes are already reversing course. In the fight against high inflation, patience is a virtue.

Microsoft can answer antitrust “Call of Duty”

13 Feb 2023

UK regulators say selling the video game would ease their concerns over the software giant’s $69 bln purchase of Activision Blizzard. A disposal would be chunky, and boss Satya Nadella won’t want to leave it behind. But even without the franchise, the acquisition still stacks up.

Lyft is second horse in a one-horse town

10 Feb 2023

Mounting losses and a 35% plunge in the ride-sharing firm’s stock price are signals of how far Lyft is falling behind main rival Uber. The two are locked in a race where winning depends on cheaper fares or better-paid drivers. No wonder investors think two is a crowd.

Capital Calls: Adidas kitchen sink

10 Feb 2023

Concise views on global finance: Shares in the sportswear maker fell 11% amid forecasts of a high-single-digit decline in sales in 2023.

Meme investors go to bed, take a bath

7 Feb 2023

Near-bankrupt U.S. retailer Bed Bath & Beyond will gain slightly less cash than it burned last quarter by issuing shares after an irrational stock rally. The structure – $225 mln now and up to $800 mln later – isn’t that clean. And delaying the inevitable has an opportunity cost.

Public Storage has advantage in clutter battle

6 Feb 2023

The stuff-storing giant has kicked off an $11 bln takeover battle with an offer to buy smaller rival Life Storage. Based on today’s prices, the proposal leaves room for counterbids. But with storage companies looking historically expensive, Public’s stock gives it an advantage.

Paytm is stuck in dealmaking catch-22

6 Feb 2023

A banking licence would help the $4 bln Indian fintech generate earnings and boost its flailing share price. Regulators might only grant it once Ant and Alibaba offload their combined 28% stake. Yet the Chinese firms are unlikely to sell entirely until the stock improves.

Nordstrom will be back on discount rack soon

3 Feb 2023

The department store chain’s market value surged 20% to $4.1 bln on news that pushy investor Ryan Cohen is lurking. His meme-stock following outweighs any retail savvy. Bed Bath & Beyond, which he targeted, is near bankruptcy and other activists have struggled in the sector, too.