The following stocks could see some heavy movements tomorrow based on major developments over the weekend:
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
Yahoo Inc! (NASDAQ:YHOO) is a story we have been covering for several months. Dan Loeb, the largest shareholder, and manager of the $9 billion Third Point LLC hedge fund managed to get the CEO, Scott Thompson to resign. Loeb revealed errors on the CEO’s resume, which caused Thompson and the firm tremendous embarrassment.
The Board of Directors has appointed Fred Amoroso as the new Chairman, and Ross Levinsohn as interim CEO. Dan Loeb was added to the board, which was one of Loeb’s original demands.
Chesapeake Energy Corporation (NYSE:CHK) fell close to 14% on Friday, after the company announced that asset sales might be delayed. The company also dropped after announcing that its first quarter earnings would be delayed.
Over the weekend, there was some big developments. Chespeake received a $3 billion loan from Goldman Sachs Group, Inc. (NYSE:GS) and Jefferies Group, Inc. (NYSE:JEF). The loan which the company has received buys it more time to raise needed cash. The CEO commented ““This short-term loan from Goldman and Jefferies provides us with significant additional financial flexibility as we execute our asset sales during the remainder of 2012.”
Mason Hawkins, famous value investor, and CEO of Southeastern asset management own 13.6% of the company’s shares. In recent weeks, he has been taking an increasingly activist urging the company to consider a potential sale.
JPMorgan Chase & Co. (NYSE:JPM) announced an unexpected $2 billion loss this past Thursday. The news sent the stock down close to 10% on Friday. Over the weekend, there were further developments in the story.
The media now believes that the loss was due to a bad bet on North American Corporate debt. Elizabeth Warren, called for JPMorgan Chase & Co. (NYSE:JPM) CEO, Jamie Dimon to resign from his position as a director at the Federal Reserve Bank of New York.
The Wall Street Journal reported that Achilles Macris, who headed the London desk that placed the trades; Ina Drew, the bank’s chief investment officer, and trader Javier Martin-Artajo, a managing director, will leave the company as a result of the crisis. Bruno Iksil, also known as the London Whale appears to be staying with the firm.
In an interview this morning, CEO Jamie Dimon, stated that he was “dead wrong” when stating that trading issues at the bank were “tempest in a teapot.” Dimon also stated “We made a terrible, egregious mistake,” and that ”there’s almost no excuse for it.”
The issue will likely become a political debate as politicians spar over the Volcker rule, which may have prevented the trade from occurring.
Finally, Groupon Inc (NYSE:GRPN) will be reporting earnings. The company has been watched by many traders due to the scrutiny received from the SEC. The stock has fallen 66% since the IPO and is down over 50% in the past three months alone. Analysts are expecting a loss of $0.05 a share on revenue of $530 million.
(Disclosure: No position in any company mentioned)