Tuesday, 4 Oct 2022

Swedish Match Shareholder Opposes Proposed Takeover By Philip Morris

Oil Prices Rally On Supply Concerns

Oil prices rose more than 2 percent on Wednesday amid supply concerns after Russian President Vladimir Putin announced the partial mobilization of his country’s military in a significant escalation of war in Ukraine.

Benchmark Brent crude futures rallied 2.4 percent to $92.76 a barrel, while WTI crude futures were up 2.5 percent at $86.05.

As the war in Ukraine reaches nearly seven months and Moscow loses ground on the battlefield, Putin said in a rare national address that Russia would use all the means at its disposal to protect its territory.

The Russian leader also backed plans for Russia to annex occupied areas of southern and eastern Ukraine, appearing to threaten nuclear retaliation if Kyiv continues its efforts to reclaim that land.

Meanwhile, investors shrugged off data from the American Petroleum Institute showing that U.S. crude stocks rose by about 1 million barrels last week, indicating some weakness in demand among U.S. consumers.

Official data from the Energy Information Administration will be out later in the day.

Gold Inches Higher As Putin Escalates War

Gold prices advanced on Wednesday, as investors monitored increased geopolitical tensions with Russia and braced for another hefty interest rate hike by the U.S. Federal Reserve.

Spot gold rose half a percent to $1,673.74 per ounce, while U.S. gold futures were up 0.6 percent at $1,681.85.

Geopolitical tensions returned to the fore after Russian President Vladimir Putin announced the partial mobilization of his country’s military in a significant escalation of war in Ukraine.

As the war in Ukraine reaches nearly seven months and Moscow loses ground on the battlefield, Putin said in a rare national address that Russia would use all the means at its disposal to protect its territory.

The Russian leader also backed plans for Russia to annex occupied areas of southern and eastern Ukraine, appearing to threaten nuclear retaliation if Kyiv continues its efforts to reclaim that land.

Investors also awaited the Federal Reserve’s policy meeting later today, where a hefty rate hike is certain.

Markets will focus on the updated economic projections and dot plot estimates, which will be published along with the Fed’s policy statement due out later in the day.

The Fed is widely expected to raise rates by 75 basis points, which will take the target range for the Fed Funds rate to 3.00 percent – 3.25 percent.

The monetary policy decisions from the Bank of Japan, Swiss National Bank and Bank of England are due on Thursday.

General Mills Q1 Profit Increases, beats estimates

General Mills (GIS) revealed earnings for its first quarter that increased from the same period last year and beat the Street estimates.

The company’s bottom line totaled $820.0 million, or $1.35 per share. This compares with $627.0M, or $1.02 per share, in last year’s first quarter.

Excluding items, General Mills reported adjusted earnings of $1.11 per share for the period.

Analysts on average had expected the company to earn $1.00 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 4.0% to $4.72 billion from $4.54 billion last year.

General Mills earnings at a glance (GAAP) :

-Earnings (Q1): $820.0 Mln. vs. $627.0M. last year.
-EPS (Q1): $1.35 vs. $1.02 last year.
-Analyst Estimate: $1.00
-Revenue (Q1): $4.72 Bln vs. $4.54 Bln last year.

Pre-market Movers: IE, SOBR, DNB, LITM, AMPX…

The following are some of the stocks making big moves in Wednesday’s pre-market trading (as of 06.55 A.M. ET).

In the Green

Ivanhoe Electric Inc. (IE) is up over 36% at $11.50
Dun & Bradstreet Holdings, Inc. (DNB) is up over 18% at $15.90
Snow Lake Resources Ltd. (LITM) is up over 13% at $2.69
AMTD Digital Inc. (HKD) is up over 8% at $78.72
Edgio, Inc. (EGIO) is up over 8% at $3.32
FOXO Technologies Inc. (FOXO) is up over 8% at $2.29
Digital World Acquisition Corp. (DWAC) is up over 7% at $20.08
D-Wave Quantum Inc. (QBTS) is up over 6% at $6.98
Indonesia Energy Corporation Limited (INDO) is up over 6% at $6.56
Getty Images Holdings, Inc. (GETY) is up over 5% at $8.75
Pagaya Technologies Ltd. (PGY) is up over 5% at $2.41

In the Red

SOBR Safe, Inc. (SOBR) is down over 22% at $2.35
Amprius Technologies, Inc. (AMPX) is down over 9% at $10.01
Stitch Fix, Inc. (SFIX) is down over 9% at $4.25
Smith Micro Software, Inc. (SMSI) is down over 8% at $2.47
NeuroBo Pharmaceuticals, Inc. (NRBO) is down over 7% at $19.19
Ventoux CCM Acquisition Corp. (VTAQ) is down over 7% at $5.63
Expeditors International of Washington, Inc. (EXPD) is down over 6% at $84.00
Tellurian Inc. (TELL) is down over 5% at $2.82

Swedish Match Shareholder Opposes Proposed Takeover By Philip Morris

Framtiden Management Co. LLC, a shareholder of Swedish Match AB (SWMAY.PK), announced Wednesday its opposition to the proposed takeover of the Swedish tobacco company by Philip Morris International, Inc. (PM).

According to Framtiden, a long-term Swedish Match shareholder since 2003, the acquisition offer of 106 Swedish Kronor per share deeply undervalues the company, and that it would not support the proposed transaction.

The company said the offer price is significantly below Swedish Match’s intrinsic value per share, which Framtiden estimates at close to 200 kronor per share.

The Framtiden Partnerships own over 14.5 million shares representing about 1% of outstanding shares.

It was in May that Philip Morris’ affiliate Philip Morris Holland Holdings B.V. has issued a recommended cash offer to the shareholders of Swedish Match worth around 161.2 billion kronor, corresponding to approximately $16.0 billion.

Dan Juran, Managing Member of The Framtiden Partnerships, said, “Investors may be tempted by the short-term premium, especially during a period of market declines, but I believe that Swedish Match in 2022 may be in the rarified air of Coca-Cola in the 1980’s or Philip Morris itself in the 1950’s. Those companies compounded earnings at a superior rate for many years, and shareholders who stuck with them were rewarded mightily. We believe sticking with Swedish Match is likely to prove far more remunerative to shareholders over time than cashing out.”

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