Straight from Benzinga newsdesk, hosts Brent Slava and Steve Krause bring you the market news and stocks to watch.
Today Steve and Brent focus on:
Benzinga Pro's Top 5 Stocks To Watch For Wednesday, May 11, 2022: BYND, MARA, CSSE, INDO, VRA
- Beyond Meat (BYND) - Will report Q1 results after market close Wednesday.
- Marathon Digital (MARA) - A way to play declining prices in bitcoin and other cryptos. Marathon Digital is focused on mining of digital assets. Bitcoin futures fell below an important level at $30,000 Wednesday morning following a hotter-than-expected consumer price index (CPI) inflation reading.
- Chicken Soup For The Soul Entertainment (CSSE) - Shares were up 13% Wednesday morning following news the company will acquire Redbox (RDBX).
- Indonesia Energy (INDO) - A low-float momentum play in the oil sector. The company announced an oil discovery Wednesday morning.
- Vera Bradley (VRA) - A play on designer handbags, travel items and accessories. The company announced a crossover collection with outdoor brand Coleman Wednesday. VRA peers - TPR, LEVI, LULU
Hosts:
Steve Krause Reach out to Steve at [email protected]
Sr. Reporter Benzinga Newsdesk
Brent Slava Reach out to Brent at [email protected]
Sr. Reporter, Head of Benzinga Newsdesk
Ryan Faloona Reach out to Ryan at [email protected]
Director of Customer Success
pro.benzinga.com
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Good morning, ladies and gentlemen, you are tuned into Benzing. His daily sax watch podcast. Today is Wednesday, May 11th, 2022. Hope everyone is having a nice week so far. How was your week? Go and see if it's good. It's good. It's hump day. Get those camel emoji's out in the chat. Wait, there's no chat here.
Not yet. Benzinga daily SACS. Watch podcasts is a list generated every trading day by the Benzing pro news S team a list of at least five stocks that we have on our radar throughout the morning and throughout the day, probably throughout the rest of the week, because. We are anticipating an upcoming news catalyst.
Maybe there was just some news that is impacting the SAC today. Maybe we expect a little increased investor attention. Maybe we are expecting a little increased volume in the issue. We're going to be watching them. We want you to consider if maybe you get them on one of your charts or watch them. We're going to start off with a little table of contents for y'all.
We'll hit you with our five socks today, and then we're going to dive in deeper to elaborate on why we chose these companies. Our first act to watch today is beyond me. B Y N D. Number two is marathon digital, M a R. Number three is chicken soup for the soul entertainment. It's ticker C S E. Number four is Indonesia energy.
I N D O. And number five is Vera Bradley, V R a Steve. What's going on with beyond meat has a few things going on. The big thing, the reason you added it to this list is they're reporting. The reporting earnings tonight after the close Wednesday after the close. But they've, there's been a few news items been.
Yeah. And what happens with when earnings is an upcoming catalyst and the stock has been in the news or company has been in the news the sacker company being in the news, generate some more attention. And maybe somebody, because beyond me has been in the news the last few weeks.
Maybe they looked at the chart and liked the chart or looked at the company's fundamentals and like the fundamentals. And now they, Ooh, notice that there's going to be earnings coming up in a little bit here. Yeah. Maybe I want to play the earnings into the earnings after the earnings, et cetera, et cetera.
And so a few weeks ago there was a report out from a publication fast company, and the publication said that, so we know that beyond meat and McDonald's have been working together for a few years now. Does that sound right? I think so. They were testing McDonald's was testing some. Meatless options in a few markets.
And there was a report out a couple of weeks ago that said that McDonald's was going to make a beyond meat item, a permanent menu item. It turned out that wasn't exactly the report. I think the report ended up being that there, it was going to be a like a part-time menu item in certain locations and beyond meat chairs saw a little bit of volatility on that news.
And then after that, like coincidentally, like maybe a week or so later we heard. Out of activist, investor land, probably the most famous activist investor, Carl Icahn, he's been urging McDonald's on a couple things and touch on a couple of those things related to icon in McDonald's CIF.
Yeah. So icon has been doing so, there's obviously activists, investors. Out to, fix company, make them a little bit more profitable, et cetera. This is like at the benefit of their shares, right? The benefit of the shareholders, that's like traditional activist investing, but then there's also like traditional activity.
Which is more of going after more of the ideals than the profits. And this is what I have been talking about lately. He's I want to start doing some actual activism not activist investing. And he's been, he owns a decent amount of McDonald's and he's trying to leverage that.
And he's been talking to McDonald's about trying to reduce their, production and usage and increase their, plant-based usage and production. Now, obviously he didn't mention beyond meat here, but as you just said, beyond meat and McDonald's have partnered together for a while.
Very big activist investor. Carl Icahn is basically saying McDonald's, Hey, you should start using more plant-based stuff. There's a possibility of, some extra beyond me, partnerships, contracts, that kind of stuff. It's the go-to. It is right, Steve. Yeah. And so a nice little segue there also, you had identified another plant-based company that had reported recent.
What company, what day was it again? Yeah, so th so there's very few names in this space, right? So basically one of the other peers is tattooed chef, a ticker TTC, CF, and they reported on Monday, I believe. Or actually, I think it was yesterday. Okay. Yeah, it was yesterday after the close. Let's see what tattooed chef has training up or down right now.
It's pretty quiet. It was Monday. I apologize. It was Monday. Okay. Gotcha. It looked like tattooed chef traded around the six 50 level. It's trading around the $7 level. But the sacks largely unaffected find the earnings release. True. If you are a fan of the socks. Podcasts folks, you know that Steve and I have been highlighting these peer groups where a company in a sector, in a sub-sector reports results, and it could create some kind of precedent for another company that will pour a little bit later in the earning season, tattooed chef, Like cheers to them, but not quite the same level as me, but investors look for clues, ladies and gentlemen that's the thing.
Investors try to get an edge wherever they can. And so I think it was smart that you had a tattooed chef also on your radar here, Steve, our second sock to watch for today, excuse me, is marathon digital, M a R a. This is a Bitcoin miner and we have been tracking. Bitcoin futures over the last few weeks. We're always looking at them.
But over today there was following the CPI day. That came out at eight 30. That's a reading on inflation affecting consumers. The reading was a little hotter than expected. Core reading was up about 6.2% on a year over year basis, core reading, excludes volatile food and energy prices. The expectation was for a 6% year over year increase in core reading.
So yes, it was. An economist would say hotter than expected. I didn't think that the figures were that concerning actually, but the market really stock market really sold off when we saw it, when we got those CPI data points Sola S and P 500 futures sold up almost a hundred points. And with it went Bitcoin and Bitcoin fell below a key level around the 30,000 level.
Hit a low at 28,900. Now Bitcoin futures are rebounding with the SAC market. If I noted, I don't remember if I noted that S and P 500 futures fell below the important 4,000 level after that CPI reading we're now back over that level, we're about 20 points back over that level. So that was good. If you're a bowl that we retook that.
Bitcoin futures also moving really similarly here with with the stock market. Yeah. Look, it looks maybe the market's thinking the same way you are where, initially a hotter than expected, but maybe not that bad. Like a quick sell off and it looks like they're recovering most of those gangs.
Bitcoin's actually, I think a little bit higher than that CPR where it touched a little bit higher up 31. 31,500. I'm still above that 30,000 level. You had a couple of other Bitcoin mining plays on your radar to see what were those stickers. Yeah. Yeah. So there's a few of them. Any and why, which is sphere 3d ITF, which has bit farms, ETB T.
Which has been digital coin Coinbase, and it's not a minor, but it's, a crypto market place. Similarly affected by Bitcoin and then riot blockchain, R I O T is another. Good stuff. Good stuff. Our third sack to watch is chicken soup for the soul, Steve CSF. He, what happened in chicken soup for the soul today?
This one had some news this morning. Funnily enough, we talked about Redbox our DBX, I think it was last week or two weeks ago. Yeah. And we were remarking on, what is this, What is this company red box? It turns out chicken soup for the soul knows what it is and they want it because they're buying it right.
Or, they're having one of their subsidiaries merge with it and then basically acquiring most of it. Chicken soup for the souls CSSE shares were up 13% of the pre-market and red box here is, were down. They fell fairly sharply and then they're covered right here. Yeah.
We're down about 26% in red back shares and around 50%, I think at one point I see a pre-market low at 180 6. The cycles are on the $6 level. Yes. Yeah. And I think that's because, there's some not weird numbers, but people were just interpreting this, so obviously when a company buys another company the company that's getting bought the shareholders get paid out right.
In, usually in, in shares of the acquiring company. Yes. Cash or shares catches a little easier to understand. It's like we're buying them at $20. Okay. Share. $20 in cash. Exactly. And this one and the press release said that red box here holders, we're going to get 0.0 8, 7, 5, I think 0.0 8, 7, 5 shares of chicken soup for the soul.
For each red bag chair, which is, eight, 8%. So it's it's fairly small, right? That's, it seems small, but also, it says in the press release that like they're merging with one of their subsidiaries and chicken soup for the soul is going to was only going to own 73% of this new company, six and a half 36%.
It's not a. Takeover right back. Shareholders are still going to have about 23 and a half percent. So like when when there's a stack deal, I think a lot of traders and market participants will go, okay like what's the math here. Let's see where let's see where chicken soup for the soul shares were trading and let's do the math.
And if they're going to each red box, shareholder is going to get. And 0.0 8.09% 0.09, shares of chicken soup for the soul. We can take the stock price of chicken soup for the soul and times that by 9% and we should get the value that chicken soup for the soul sought for red box. Didn't really work that way because this isn't like an outright purchase.
So it's not all your value of the company. We got a lot of questions folks, and I thought that. Cool. One to add today because we did get a lot of questions. There was a lot of readers bending readers, and Benzinga pro users today that were reaching out to us and go. Point zero eight, seven shares for red box.
That, that can't be right. That's if you do the math, like I was suggesting that would bend like a 75 cent value for the dealer or something like that. Yeah. Max has rebounded a ton here. If I mentioned that pre-market low at 180 6, the sack is now trading around the four 11 level we were being asked, Hey, is that number right?
And Steve. Some quick research, you looked at a couple press releases. You looked at a press release from chicken soup for the soul. You looked at a press release from Redbox. You looked at a filing from Redbox. All of those had the same value, right? Yeah. That figure was reiterated on both of their investor websites.
But like you said, the AK filing from breadbox several times in that filing. And it seemed to have to go into far more detail. If you want to look into kind of like the structuring of. Of this acquisition, the AK filing I thought was, I didn't get to dive super deep into it, but it seems to go into the structure a lot deeper there going, going into some funding and some contracts and all that kind of stuff.
A couple users said whoa, this must be a typo. Does not seem to be the case here. Ladies, gentlemen, we have reached out to red box. And that's what we can do as a news team. So it's kinda nice, but I don't think we've heard back yet, but right. When we do hear back, if we do hear back confirming this figure, which I think we are going to, we're gonna, you'll see some, oh, and it looks like.
It looks like red back shares were just halted on a circuit break and just resuming trade, right under the $4 level still down, like a good 30% or so. Sure. All right. Our stock to watch number four is Indonesia energy. I N D O. This is, as you might remember, folks, a low float momentum play in the oil space.
This is a play that we've been highlighting on the podcast. We haven't done it in a little while. See, but we were highlighting it like rather often. Yeah. Maybe like a month or two ago. They had some news this morning. They had a oil discovery. Ooh. Yeah. And w what we know about these momentum names, what we know about these low float names is that they can.
Move traders tend to push these stacks around, make them do what they want. Create some trading opportunities. Great. Some moves higher, some moves lower. They can go long. They can go short. It's a nice little training vehicle for a lot of, for a lot of traders. And when they have news, when they have meaningful news, that can really push the momentum even further Indonesia energy shares trading off about 10% here. I think that real quick, I think that this has, I'm looking up the float real quick on my Benzing and pro details tool. This is about a 2 million share float. That's like pre. Low float territory. Generally, we're thinking that OSAC under 20 to 25 million is low float.
So this one is into low float territory. Our last stock to watch for today is Vera Bradley, ticker B R a, and this one was a little fun one you wanted to add in here. Play on designer, handbags, travel items and accessories. You love these press releases, don't you? Yeah, I do not necessarily like a news catalyst.
I don't think this is going to impact the stack, but every once in a while, there will be a, like a designer or a clothing company that is collaborating with. An artist or another company and they'll issue, press releases. A lot of times like highlight the collaboration and very, Bradley's doing a little crossover collection with a few of its bags with outdoor brand Coleman.
Nice. The camping brand. And just kinda, eh, again, not really like a news catalyst, but just like a fun one here. You can go on the Vera Bradley website and they have some like cooler bags. Cooler backpacks and just some more outdoorsy kind of backpacks, but they're like really.
Bear Bradley branded and they have some nice, like a nice design and stuff like that. Just a little fun one. There are there is like a limited space. If you think that Vera Bradley is very bare. Bradley is definitely a handbag and accessories brand. I think that they're, borderline like luxury and the luxury space is a relatively small space.
Louis Vuitton is one of the. Companies in the world, one of the largest design companies in the world, that's definitely a play, but you can't really trade that very easily in the United States. Tapestry is your only other option, as far as I'm thinking of right now in the luxury apparel and accessories space.
That's ticker TPR tapestry is this conglomerate. Now they own coach. They own. One second, he pumped the other one, Kate spade. I was blanking on that one for a sec, also own Kate spade and a couple of other luxury brands, Stuart Weitzman, a cool one for us to just round out our list for today.
I thought that, yeah. Oh, I, by the way, I also like those like fashion press releases and I'm actually, when old Navy I think was recently announced a collaboration with the Simpsons, I'm getting I'm getting a little like. Bag a little, you got you order one. Yeah. Or it's the gut?
The cloud from the intro and science, super yellow. I need one for Chicago and I'm walking around. So it's yeah, it's going to be super nice. I love those press releases to the super fun. The one that I scored on up maybe like a year ago was when a champion was a a release with Nintendo and they had a bunch of Mario branded like sweats and there was like a track.
I don't remember that. I'm still a little jealous that cause didn't you get the overalls too? Yeah, the overalls are awesome. Awesome. Awesome. All right, folks. Thanks so much for tuning in today. That's going to wrap it up for us. We'll be back tomorrow. With another edition of bending is daily sacks. Watch podcast.
Everybody have a great day. Good luck. Did you know, nearly all stock price changes of 10% or more result from a single news headline. That's right. News headlines have a unique ability to drive stock prices up or down. These news catalysts create trading opportunities every day. All you need is a little help to reach out and take them.
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