Home » Technology » Weekly Market Updates: Venator Materials in Bankruptcy Protection, Foot Locker Shares at Lowest Since July 2022, and HAIRLESS at Historic Highs

Weekly Market Updates: Venator Materials in Bankruptcy Protection, Foot Locker Shares at Lowest Since July 2022, and HAIRLESS at Historic Highs

While the Prague Stock Exchange has had a relatively quiet week in terms of the index, it was much livelier in comparison, for example, in neighboring Germany or on Wall Street. Here, the shares were heading south for most of the week, and only Friday’s session brought a significant tinge. The week’s events took place primarily in the context of reports on the development of negotiations on increasing the US debt ceiling.

In any case, the second week in bankruptcy protection is behind the British company Venator Materials (hereinafter referred to as Venator) focusing primarily on the production of titanium white. So far, there is no indication that the shareholders companies hope dawned that they would not fully lose their investment. So also a private equity fund J&T
MS 1 SICAV
which at the end of last year held a stake in the company
increased, thus diluting the purchase price. Even so, it saw a 70% drop in value last year alone. In short, the fund held a 14.25% stake in the British chemical company at year-end, when the average purchase price reached $1.55. Apparently, the fund actually drowned in the company about 23.8 million USD, i.e. at the current exchange rate over half a billion crowns. Most likely, many more millions of crowns were also drowned by other domestic small investors who followed the steps of the J&T group, namely Michal Šnobr. Whether and how the aforementioned fund is involved in bankruptcy, or is fighting for his shareholder rights, it is not known.

However, as we have already reported, the bankruptcy “rescue” companies as a result, it is intended to fully devalue the original shareholders. And this is also evidenced by the development of the title on the stock exchange, or OTC. After declaring bankruptcy, the title fell below ten cents on its debut here. While it ended at less than USD 0.27 in the last session on the NYSE, on the OTC on Monday 15.5. finally down to just $0.059. However, the direction to zero did not stop, shares here on Friday Venator closed at a new all-time low of $0.0165. It can be added that the NYSE, where the title was originally traded, will formally end its registration on May 30.

Actions Foot Locker lowest since July 2022

The value of the investment decreased by another billion crowns in the past week Daniel Křetínský and Patrik Tkáč, respectively their fund VESA Equity Investments at the American shoe and clothing retailer Foot Locker (FL). That is, if in the meantime they didn’t deal with their share, which still amounted to almost 11.47 million shares at the end of March. After a more than 27% price drop of the title last Friday, its southward direction continued this week, or only Friday’s session brought green numbers after six losing sessions. In short, Foot Locker shares ended at $26.27, i.e. they fell by another $4 in the past week.

GEN DIGITAL value back above 10 billion dollars

Actions GEN DIGITAL (GEN), formerly NortonLifeLock, tried to return to higher levels last year after the September merger with Avast, especially this year’s development showed a strong turn in investor sentiment. Not only did they first find themselves at the levels from the times when the mentioned merger was not even publicly known, they subsequently fell to 3-year lows. Stopping growth in the number of clients companies in short, it took its toll on the title.

Only the next period will show whether the title is already the worst, or whether the double bottom from a technical point of view already shows a bright tomorrow. In the middle of this month, the title returned to this year’s March lows, or it also deepened somewhat with a drop to USD 15.45, then headed higher. In recent days, the market has started valuing the company again at more than USD 10 billion. Friday’s close of $17.11 represents roughly a billion more. However, it is actually still whole GEN DIGITAL
appreciated slowly as before only Avast. It may be recalled that at the time of the merger, Avast was valued at approximately CZK 210 billion, i.e. at the current exchange rate, about USD 9.5 billion.

Technically, it will certainly be important if the title manages to break through the previous highs at the $18 level soon on its way back up (see indicated boundary in the chart).


HAIRLESS at historic highs

Actions of a seller of hair cosmetics HAIRLESS are riding a successful wave. Although at the beginning of the week they continued the rest from the previous days, Tuesday’s jump of more than 16% moved them straight to new historical highs. And for CZK 640, they were subsequently traded on Wednesday as well, in the rest of the week, supply and demand for them did not match. In any case, since last September’s IPO at a price of CZK 490, they have appreciated by almost 39%. Due to their negative exchange rate conclusion in 2022, when they ended lower at CZK 404, then this year’s performance even exceeds 69%.




Only stocks compete with them COUSIN. These continue to trend north for the third month in a row as they appreciate continued growth in the company’s business. In the second half of May, they reached new historical highs of CZK 700, they rested this week and finished at CZK 680 on Friday. Theirs anyway this year’s performance reaches almost 66%.

The fact that the performance of the Prague Stock Exchange is currently driven by smaller issues, while CEZ shares have had a considerable rest, is illustrated by the third share E4U. They have strengthened by almost 43% since the beginning of the year, especially since the last few weeks have been riding on the wave of investor interest. Last year’s published economic results played their part, in other words, the announced dividend of more than CZK 14, which made the stock one of the most attractive commodities on the Prague Stock Exchange in this regard. However, the risk of potential new “taxation” still remains with the title companies, respectively government considerations on taxing the “old” most profitable solar business.

Jiří Zendulka

In the field of finance Jiří Zendulka has been moving since the days of coupon privatization, so already 30 years. He worked in various positions at stockbrokers, in order to establish himself as an analyst. He has been presenting his views in the media for a long time. A follower of the traditional values ​​of capitalism, or on the contrary, a critic of most non-standard interventions in economies by governments and central banks.

2023-05-27 12:47:12
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