TOP 5 STOCK TO WATCH OUT AND TRADE TODAY – FEBRUARY 09, 2022

TOP 5 STOCK TO WATCH OUT AND TRADE TODAY – FEBRUARY 09, 2022

  1. CREDIT SUISSE: Credit Suisse  Vice-Chair Severin Schwan faces opposition to his re-election to the board of the embattled Swiss lender, The Financial Times reported on Wednesday.

Some investors said they will try to block any move to extend the tenure of the Roche chief executive, who has been vice chair at Credit Suisse since April 2017.

The investors were not named by the paper, which said they belonged to the 10 biggest shareholders in Credit Suisse.

Having joined the bank’s board in 2014, Schwan is also the lead independent director. During his stint, Credit Suisse’s share price has slumped by 64% after it became embroiled in a string of scandals and losses.

Schwan had intended to leave before the bank’s annual meeting in April, the newspaper said, citing three people familiar with the matter.

But he has been asked by other board members to reconsider his departure to maintain stability under the new chair, Axel Lehmann, who took charge last month following the abrupt departure of Antonio Horta-Osorio following breaches of coronavirus quarantine rules.

2.SOFT BANK:SoftBank’s decision to list British chip designer Arm is good news for New York, bad news for London and the best option left for the Japanese group after the collapse of its blockbuster sale to Nvidia .

Arm, whose technology underpins the global smartphone industry, is most likely to float on the Nasdaq, SoftBank’s CEO said, where it will tap into U.S. investor appetite and analyst expertise.

The move deals a blow to London where Arm traded, with a secondary listing on Nasdaq, from 1998 to 2016 before it was sold to SoftBank for $32 billion.

Jay Ritter, an IPO specialist at the University of Florida, said although tech valuations had fallen worldwide, there was still the belief that U.S. private market and public market investors understood tech companies and were willing to pay top dollar.

“The rationale for why a lot of tech companies list on Nasdaq is a perception that U.S. investors quote-unquote, understand technology, and are willing to pay a higher price for companies with compelling growth prospects,” he said.

U.S. listed semiconductor stocks have been on a “tremendous run” in recent years, led by Nvidia, which just overtook Meta to become the seventh largest U.S. company by market value, said Richard Clode at Janus Henderson Investors.

The jump in Nvidia’s share price increased the value of its cash and share offer for Arm from an original $40 billion to as much as $80 billion, a valuation far in excess of what it is likely to achieve on the public market.

However, the United States remained the best option, Clode said.

“Growth semiconductors in the U.S. now enjoy valuations well ahead of similar growth semiconductor franchises in Europe or Asia like ASML and TSMC,” he said.

Following disappointing London listings for food delivery platform Deliveroo and the more comparable peer, Alphawave, Clode said you could understand the appeal of a U.S. listing even if London investors were clamouring for a tech business of the quality of Arm.

Nasdaq led U.S. IPOs for the third consecutive year in 2021, hosting 752 IPOs, including nine of the top 10 largest U.S.-based market debuts by capital raised, with $181 billion in capital raised in total, the exchange operator said.

Electric-vehicle maker Rivian, which raised over $12 billion in its November listing, making it the largest U.S. IPO since Alibaba  Group Holding Ltd in 2014, and chip maker GlobalFoundries Inc, which raised $2.6 billion.

 3.TOYOTA:- Toyota Motor Corp on Wednesday cut its annual production target by a half a million more vehicles as a chip shortage and COVID sick leave crimped output.

It will build 8.5 million vehicles in the year to March 31, down from a previously estimated 9 million, the world’s biggest carmaker said, as it posted a 21% fall in operating profit for the three months to Dec 31.

“We don’t expect the imbalance in chip supplies to resolve quickly and the course of the coronavirus pandemic is unclear,” a Toyota official told reporters. “We think that uncertainty will continue into the next business year,” he added.

Like other big global carmakers, Toyota, which expected to build 9.3 million vehicles across the world at the start of its business year, has been forced to cut output and as the COVID-19 pandemic wreaks havoc on the global supply chains. That has forced it to cut costs in a bid to squeeze out more profit per vehicle.

The effort to raise margins has been helped by robust demand in key markets such as China, the United States and Europe, allowing to raise prices and lower the incentives it pays to lure customers.

The company is also benefiting from a weaker yen that is bolstering the yen value of overseas earnings.

4.TESLA:Tesla  Inc said on Wednesday the California Department of Fair Employment and Housing (DFEH) intends to file a lawsuit against the company alleging systematic racial discrimination and harassment.

The lawsuit appears to be focused on alleged misconduct at the Fremont factory between 2015 and 2019, Tesla said in a statement.

The electric-car maker said it will ask the court to pause the case once the department files its lawsuit.

DFEH did not immediately respond to a Reuters request for comment.

The company has been fighting a series of lawsuits over allegations of racial discrimination and sexual harassment in the past year.

It was sued by two female employees last year, with both their lawsuits alleging a “hostile work environment” against women at the car maker’s factory in Fremont, California.

5.META :Facebook parent Meta Platforms said on Tuesday it had filed a joint lawsuit with digital banking company Chime against two Nigeria-based individuals who engaged in phishing attacks to deceive people and gain access to their online financial accounts.

The lawsuit, which is the first joint complaint between Meta and a financial services company, alleged that the defendants used Facebook and Instagram accounts to impersonate Chime and lure people to fake branded phishing websites with the aim of obtaining their Chime account login information and withdrawing funds.

In the suit, which was filed in the U.S. District Court for the Northern District of California, Meta said the defendants used a network of computers to control more than 800 impersonating Instagram accounts and five Facebook accounts, in order to conceal their activity and evade technical enforcement measures.

Reuters could not immediately reach the defendants for comment.

“Impersonation scams are a serious challenge, and this action represents a major step forward in cross-industry collaboration against this abuse,” Meta’s director of platform enforcement and litigation Jessica Romero said in a blog post.

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