By coinnews 
00:00 Speaker A
Now time for some of today’s training tickers. We’re taking a look at shares of Skechers, Tyson, and Twilio. First up, Skechers has agreed to sell itself for a 30% premium to the investment firm 3G Capital. The stock soaring today on the news that 3G will pay Skechers shareholders $63 a share in cash. The deal expected to close in the third quarter of this year. Um Skechers is a really fascinating company. I didn’t know that much about it, but the CEO, Robert Greenberg, is 85. He founded the company in 1992. His son is also an executive at the company and both of them are going to stay on after this deal. And they’re taking a piece of it, by the way. They’re also going to be investing in it. So just an interesting little tidbit there.
01:14 Speaker B
Yeah, I’m during through the analyst research. Piper Sandler saying news is positive for the footwear names they cover. Should provide evaluation of floor. They said positive laterals for Crocs and Wolverine worldwide. Evercore on that same theme saying the deal sets a hard floor for valuations across the sector in the near term. Says the deal is a bet on tariff deals getting done. And this sector operating profitably long term.
02:02 Speaker A
Yeah, I mean 40% of Skechers stuff comes from China. Um so obviously, it’s with it’s it’s vulnerable here. It withdrew its guidance in April. Um on the flip side, 3G rang a bell for me and that’s because this is, remember, the company that was founded by those Brazilian billionaires, the trio of Brazilian billionaires. They don’t run it anymore, but they’re still invested in it. Um remember they combined Burger King and Tim Hortons, which is now owned by Restaurant Brands. They invested in Kraft Heinz alongside Berkshire Hathaway, although that deal wasn’t as profitable for them. Anyway, so it’s just kind of interesting to see them all exactly.
03:09 Speaker B
back to footwear. All right, moving on to Tyson Foods, sinking today after reporting lower than expected quarterly sales amid weaker demand for beef. Tyson also warned that tariffs could also trigger some sales disruptions. So this one under pressure. They did report better than expected quarterly earnings, but it does look like losses at the beef business. That was really wasn’t focus. You can see with down about 8% in today’s trade. Bloomberg noting they have lost money on beef sales for this was a sixth straight quarter. Severe cattle shortage in the US, not expected to ease anytime soon.
04:02 Speaker A
I didn’t know there was a cattle shortage. Did you know there was a cattle shortage? Um but Donnie King, the CEO saying Tyson is managing through the most challenging beef environment we’ve ever seen. Um so, you know, that’s really the thing that seems to be hitting the stock here. Um and analysts are saying it still seems like the beef might be tough, although maybe it’s troughing to some extent here. The company has gone has really leaned more into chicken. Um but apparently, because the prices for corn are coming up a little bit, maybe the margins on chicken aren’t going to look quite as good as they have been looking either.
05:05 Speaker B
Yeah, stock down this year and over the past four months, most in the street still looks like it a hold here.
05:14 Speaker A
Speaking of an analyst call, let’s talk Twilio. Those shares getting a boost today. Analysts at HSBC getting less bearish on the cloud communications company, citing early signs of a revenue momentum and a more reasonable valuation. Uh so they go to hold from reduce and raise the target price on Twilio to $99 from $77. Basically they were encouraged by the recent earnings, but they do remain skeptical they say about long-term margin guidance.
06:03 Speaker B
Yeah, so they go to hold in terms of the upside risks to that call. They told their clients stronger than expected market or macroeconomic environment. They talked about higher than expected success in new product launches, lower than expected competitive intensity in Twilio’s end markets. Stock is basically flat this year, but a bit down. But up about 65% in the past 12 months. Nice run.
06:41 Speaker A
Yeah. It has had, yes.