Impatient investors dumped shares of COVID-19 vaccine maker Moderna (MRNA) on Monday. On Oct 30, the firm canceled a UBS Global Healthcare conference scheduled for Nov. 9 – 12.
Short-sellers are firmly in control of MRNA stock. The short float is 16.65%. Rumors that Moderna held talks with a mega-sized drug maker sent shares up as high as around $29. Traders should consider selling the stock whenever shares rip on unsubstantiated rumors.
Kimberly-Clark (KMB), whose stock has been in a downtrend since March, lost 14.57% on Monday. The company announced that it would buy Tylenol-supplier Kenvue (KVUE). It is paying $3.50 in cash and 0.14625 shares of KMB stock for each Kenvue stock. This valued the stock at around $21.00.
Kenvue gained around 22% in premarket trade yesterday. It closed up by 12.32% or $16.14. The firm might attract more buyers. Unfortunately, J&J (JNJ) shareholders who received the stock in 2023 will not get their money back.
Kenvue had $7 billion in debt. It would need to sell shares or suspend its dividend to pay for Kenvue in the long run.
Charter (CHTR) plunged along with AT&T (T), T-Mobile (TMUS), and Verizon (VZ). KeyBanc cut its rating on Chater. It cited weak Q3 results for the downgrade. Charter faces underperforming broadband subscriber growth. FCF and adjusted EBITDA growth are under pressure.
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