In today’s briefing:
- Trading Plays for the Unexpected Tender Offer to Lutronic Corp Shareholders
- Details of the Lutronic Tender Offer M&A by Hahn & Company
- Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow
- Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers
- Waters Corporation: Can It Weather the Storm in China? – Key Drivers
Trading Plays for the Unexpected Tender Offer to Lutronic Corp Shareholders
- Retail investors hold the majority of shares at 60%, and they may be interested in participating in the second tender offer based on their accumulated learning effect.
- Based on the observed behavior of Hahn & Co, it’s unlikely that they will walk away from the delisting plan.
- We need to consider going long on the potential upward adjustment of the second tendering price. This play can be viewed as a call option with a floor at ₩36,700.
Details of the Lutronic Tender Offer M&A by Hahn & Company
- In this insight, we provide details of the Lutronic tender offer M&A by Hahn & Company.
- We believe that Hahn & Co is likely to successfully complete this M&A tender offer of Lutronic.
- In our view, most of the shareholders of Lutronic are likely to tender their shares, given the sharp share price appreciation and reasonable tender offer premium.
Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow
- Tandem Diabetes Care (TNDM US) has been consistently missing earnings expectations. This is taking a toll on the share price performance, with shares plunging ~61% over the last one year.
- Tandem’s nearest rival has recently launched its new insulin pump in the U.S. This will affect Tandem’s Q2 sales growth. Tandem guided for 10–12% revenue growth in 2023.
- Tandem is a hugely beaten down stock. However, it will be wise to wait for Tandem to launch new product, ensure its good uptake amid competition, and exhibit earnings stability.
Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers
- Henry Schein delivered a mixed set of results for the previous quarter, with revenues above analyst expectations but below-par earnings.
- The global dental specialties business saw increased sales growth, particularly in premium product lines and implant sales.
- Henry Schein made notable acquisitions, including a majority stake in Biotech Dental, a leading provider of dental implants and clear aligners, and the planned entry into the Brazilian implant market with the acquisition of S.I.N.
Waters Corporation: Can It Weather the Storm in China? – Key Drivers
- Waters Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
- Waters Corporation continues to invest in high-growth adjacencies and has a pending acquisition of Wyatt.
- Waters Corporation is focused on managing the challenges and maintaining its growth trajectory, emphasizing customer needs and market opportunities.
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