Zendesk IncZEN$74.51 Buy
KelloggK72,01 $
Sale of CRM-company, old age in poverty, division of a bar and cereal manufacturer.
Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.
Taki sold out: Zendesk for sale. Now, maybe, finally
CRM company Zendesk (NYSE: ZEN) preparing for sale: it will be bought by a consortium of private funds at a price 77,5 $ per share, or for 10.2 billion dollars. This award is about 35% to the share price at the time of this news.
In my opinion, this deal can and should be considered a defeat for the company's shareholders: its sale price is much lower 130 $ per share, which were offered for them in February by other investors.
Probably, the company's management was just tired of everything and decided to leave, not exactly undefeated, but at least with something. This was also preceded by a confrontation between the leadership of ZEN and the activist investor fund Jana Partners: Jana wanted to kick out the company's directors and, seem to be, he "outplayed and destroyed" them, deciding to sell the company as soon as possible. This somewhat contradicts their own position., announced a month ago: the company will not be sold.
In my opinion, just against the leadership of ZEN, investors may well file a lawsuit: they refused to sell the company six months ago at a much higher price and now they are selling it after the quotes have fallen, forcing everyone to take a loss. So I would expect shareholders to vote against the deal..
However, from the point of view of the leadership of ZEN, even the current deal is a boon: a terribly unprofitable company is being sold for 7,1 annual revenue. It's hard to imagine, so that for such a price someone would buy a plant.
And this story is very instructive.: obviously, that the recent mayhem in the market has significantly reduced the cost of buying all sorts of unprofitable startups. So,, buy shares of loss-making startups in the hope that, what is naive, who will buy the company at a substantial premium to its price, it will be a bit unforeseen.
Haven't accumulated: almost a third of US retirees have no savings for old age
Fintech company Sagewell Financial has prepared a study survey on the financial situation of Americans aged 55 to 67 years.
The research is very interesting and informative., and, perhaps, the key point in it is: almost a third of people in this age group do not have sufficient savings to, to live on this money in retirement. Their savings are less than $10,000., what is not enough even with the most economical spending. And at 40% not even 50 thousand - the amount is not so big, but still larger.
From all this, we can draw some conclusions for the stock market..
Firstly, this will encourage people to invest in various types of assets and take big risks. Strictly speaking, even pension funds are increasingly expanding their presence in the field, for example, private investment. And not from a good life, but just to earn more than average.
For the stock market, risk appetite will have both pluses, and cons. The pros are, that these people will be more motivated to invest in stocks: anyway, and stock market - this is the easiest and most understandable way to increase savings, and also very user friendly, unlike cryptocurrencies. Here we can hope to pump startups with these people.
And here are the cons, certainly, therein, that the market will become even more volatile - and periods of unreasonable growth will be replaced by periods of terrible decline.
Secondly, it will be a plus for those, who produces cheap essential goods and services, - and a minus for everyone else: can't be expected, that the growing army of financially disadvantaged pensioners will participate in consumption just as actively, like the current, more prosperous pensioners.
Chocolate for each: Kellogg decided to split
Bar and cereal manufacturer Kellogg (NYSE: K) will be divided into three different companies.
The company will retain the Global Snacking business, who gives her higher 80% proceeds, cereal manufacturer will be listed on the stock exchange, and plant-based milk producer PlantCo or sell, or also put on the stock exchange.
To this Kellogg decision, probably, spurred by the stagnation of its quotes: at first, the company seemed to be the beneficiary of panic buying at the beginning of the pandemic, but then demand came to the usual rate of consumption, but the costs have gone up.
At the same time, K cannot be called monstrously overestimated: it's stable, strong business with big dividends, which has a higher annual return 3% and which does not look monstrously overpriced compared to similar companies. And even vice versa, looks a bit underrated.
Issuers are usually led to this kind of reform by brawlers among activist investors., but then the initiative came from above, from management K. According to them, they think, what, "Being on your own, all three companies will develop better”.
Changing from diplomatic to normal, this means, what management hopes, which is more marginal and fast growing Global Snacking, which produces, among other things, legendary Pringles chips, will be able to spend more money on their own development instead of, to pull other segments along.
Basically, for K shareholders in the short term, it's a win: new companies, probably, buy someone bigger. For example, they will be eaten by the recently actively expanding Mondelez. But is it good for K as an enterprise and, Consequently, for the company's long-term prospects? Not sure.
The last 8 for years, the company has been actively engaged in improving business efficiency and strengthening the integration of departments in order to reduce costs. I'm not quite sure, that the restructuring and separation of a tightly integrated business can do without big problems.
But will K, only time will tell. In the meantime, you can look at other food companies: suddenly they decide to split up too.
