Out Fox The $treet

  Update - Mar. 27, 2023 Ouster missed a great opportunity to promote the combined business of Velodyne Lidar and Ouster and the company decided to pass. The stock trades below $1 for this reason and management has to own this incompetence.  -Q4 GAAP EPS of -$0.23 misses by $0.03. -Revenue of $10.94M (-7.7% Y/Y) misses by $4.9M. -Secured company record $70 million in bookings in 2022 - Q1'23 revenue guidance of $15 to $17 million, excludes Velodyne revenues through merger close on Feb. 10. The Q4 revenue total was closer to $25 million and the Q1'23 pro-forma revenue total was probably closer to $21 million.   Update - Mar. 15, 2023 Pretty nice deal here with 100 Lidar sensors shipped at the end of '22. Ouster shouldn't be trading back below $1.  -Fieldin has already deployed dozens of kits at its customers’ farms and plans to deploy over 100 autonomy retrofit kits on tractors, each equipped with an Ouster OS1, to major customers across the United States in 2023. Ous...

  Spirit Airlines has at least 44% upside on closing the JetBlue deal. The airline deal still has a lot of questions on whether regulators will approve the merger. The stock is cheap whether the deal closes at $33.50 per share in cash or the airline and shareholders get a large breakup fee and Spirit remains a standalone airline. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   While long term investors should've wanted the  Frontier Group Holdings'  ( ULCC ) buyout of  Spirit Airlines  ( NYSE: SAVE ), those investors must now analyze the  JetBlue Airways  ( JBLU ) deal. The agreed  upon purchase price provides substantial upside to the stock while holding Spirit Airlines offers downside protection on a deal failure. My  investment thesis  remains ultra Bullish on the stock, though disappointed shareholders didn't approve the merger with Frontier. Read the...

  Twitter falls 7% after Elon Musk announces plans to terminate the acquisition of the social media company for $54.20. The company appears to have a rock-solid contract to force Mr. Musk to complete the deal or settle for a sum in excess of the $1 billion breakup fee. Based on a per mDAU value, Twitter has already lost 60% of their value since the covid peak last year. The stock has immediate 60% upside on the unlikely close of the deal, or a larger user base to support higher stock prices when the economy improves. Elon Musk attempting to terminate the  Twitter  ( NYSE: TWTR ) merger is no surprise. The unknown has always been any outcome of an attempt by the social media company to sue Musk. Either way, Twitter doesn't face a  'code red' event  as suggested by a prominent analyst. My  investment thesis  remains ultra-bullish on the stock following a likely dip, as traders exit a position with a hoped for outcome of $54.20 per share. Read the full ar...

  Zoom agreed to buy Five9 for $14.7 billion, or ~20x forward revenues. The cloud video communications stock is facing a tough year as enterprises return to the office and forecasted growth slows to below 20x. The stock shouldn't trade at more than 10x forward revenues. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.  Learn More » The biggest worry with tech stocks that benefitted from the COVID-19 lockdowns was a normalization of business activity leading to a reduction in growth rates going forward. Zoom Video  (NASDAQ: ZM )  is a prime technology provider that blossomed in 2020 and faces tough growth comps going forward. The company made what appears a desperate move to acquire growth via the expensive deal to buy Five9  (NASDAQ: FIVN ) . My  investment thesis  remains bearish on the stock. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page f...

On Friday,  IBM (IBM)  provided an update on the financial impacts of the Red Hat merger. The market made too much noise about the dilutive impact of purchase accounting. The key is the boost in free cash flows expected in 2020 and 2021.  By 2021, IBM is forecasting FCFs to grow from $12 billion to $13 billion. The stock has a market cap of only $130 billion.  The hybrid cloud leader should be worth more by focusing on cash flows and not earnings impacted by adjustments for deferred revenues. Buy any dip from investors not understanding this merger impact. More research: IBM: Better Cash Flows Together  More commentary - WhoTrades Disclosure: Long IBM.  Please  review the  disclaimer  page for more details. 

Seeking Alpha provided this snippet where the T-Mobile (TMUS)/Sprint (S) merger is on hold again. T-Mobile ( TMUS   -1.9% ) and Sprint ( S   -3.6% ) are sliding off a new  Wall Street Journal  report that  merger talks have slowed , over conditions around the involvement of Dish Network ( DISH   +0.5% ) in the deal. Talks are ongoing, but the two wireless carriers are planning to extend their merger agreement beyond its July 29 deadline to buy more time, according to the report -- a second extension of a deal that has dragged out more than a year. A big part of the merger holdup is the requirement of the DOJ for a 4th viable wireless carrier to exist. For this reason, my prediction has long held that the merger will get blocked. Dish doesn't appear ready to step-up to the plate without major handouts and T-Mobile doesn't want the merger, if the end result is to create a strong 4th competitor. The prediction still remains that the merger gets blocke...

According to a survey conducted by Bernstein ( via Benzinga), most buy-side analysts expect the deal between AT&T (T) and Time Warner (TWX) to eventually obtain approval. An amazing 84% of the participants in the survey expect AT&T to close the deal, yet Time Warner trades far below the $107.50 offer price.

Baker Hughes reported highly confusing Q1 results. The oilfield services company remains constrained by the pending merger with Halliburton. The solid balance sheet and termination fee will ultimately make the stock a very strong buy. Due to the lingering and possibly failed merger with  Halliburton (NYSE: HAL ) ,  Baker Hughes (NYSE: BHI )  is a jumbled mess.  Q1 results confirmed this position, but the stock rallied anyway following the bad news. Read the full article on Seeking Alpha.  Disclosure: Long HAL. Please review the disclaimer page for more details.