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Xiaomi (OTCPK:XIACF) revs higher as first EV to launch in two weeks. (00:28) Disney (DIS) slams ‘destructive’ Peltz in new proxy-fight salvo. (01:29) Tyson Foods (TSN) to lay off 1,200 employees as it shuts its Perry pork packing plant. (03:03)
This is an abridged transcript of the podcast.
Chinese smartphone maker Xiaomi (OTCPK:XIACF) will launch its first electric sedan on March 28 in China.
The announcement by the company’s CEO Lei Jun , sent its Hong Kong-listed shares soaring 11.9% on Tuesday.
The company, which invested over CNY 10B ($1.39B) in the initial R&D phase for the electric vehicle, pre-launched the SU7 model late last year. At the time, the CEO said Xiaomi (OTCPK:XIACF) aimed to become one of the top five global automakers over 15-20 years.
The EV will feature Xiaomi’s self-developed e-motor, battery, hyper die-casting, and autonomous driving.
“Price-wise, this sporty vehicle is unlikely to disrupt the market in the budget segment, like Xiaomi’s (OTCPK:XIACF) smartphones,” SA analyst Florian Muller said last week. “… statements from Xiaomi make it clear that the EV will not be targeted at the low end of the market. I see this as a challenging endeavor.”
Walt Disney (NYSE:DIS) unveiled a critical video in the style of a negative political ad against Nelson Peltz and his Trian Group.
Peltz has put himself and former Disney Chief Financial Officer Jay Rasulo forward for a pair of board seats at the company’s April 3 annual meeting. This is a battle that he started a couple of years ago (but paused in early 2023, after Bob Iger returned as CEO).
Peltz went back on the attack in early 2024, saying “I made a run at them last year. … I took them at their word. Things got worse, the stock went down, results got worse. So no more. I can’t continue to give them more opportunities.”
Disney says in its near-three-minute video, “What’s the harm” of letting Peltz or Rasulo have a seat, Disney asks? “If they succeed, Disney could suffer the same fate as other great companies that Peltz has previously infiltrated, such as GE and DuPont. Nelson Peltz has a long history of attacking companies to the ultimate detriment of shareholder value,” Peltz’s quest “seems more about vanity than a belief in Disney,” the company said, noting Peltz has sold 500,000 Disney shares in the past six months amid the fight, and that Peltz admittedly has no experience with media companies.
Rasulo isn’t spared in Disney’s campaign: “A former Disney employee who was passed over for a promotion nearly a decade ago … he hasn’t been employed since leaving Disney, and the last time he joined the board of a media company (iHeartMedia (IHRT)), the stock tanked.”
The video says Iger has set up the company for success, with cash flow looking up, a target of $3B in stock repurchases and a new higher dividend.
We told you last week about the white paper issued by Peltz that says Disney has “lost its way in the past decade” and it’s time to “restore the magic.”
Peltz’s Trian Group is running candidates for the two board seats, while Blackwells Capital is pushing its own campaign for three seats. Disney is touting its 12 nominees and pushing a “promises made, promises kept” campaign ahead of the April 3 annual meeting.
Tyson Foods (NYSE:TSN) is set to close its pork packing plant in Perry, Iowa, cutting about 1,200 jobs in the process.
The plant is scheduled to close by the end of June. Tyson, which still employs about 9,000 people in Iowa, said it would encourage employees to apply for other positions within the company.
Tyson, which is the largest U.S. meatpacker, has closed about nine processing facilities since the start of 2023, in an effort to streamline its operations. Its plant locations in Florida, Arkansas, Columbia, and Indiana were among some that were closed down last year.
In its recent quarterly results in February, the Arkansas-based company posted topline and bottom-line numbers that were ahead of expectations.
Other articles to look out for on Seeking Alpha:
Hawaiian Electric loses bid to move Maui wildfire cases to federal court
Oracle hints at partnership with tech titan Nvidia
Alumina agrees to $2.2B all-stock buyout offer from Alcoa
On our catalyst watch for the day,
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The healthcare sector will be on watch with two conferences. The Barclays 26th Annual Global Healthcare Conference and Leerink Partners Global BioPharma Conference.
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Notable investor events include ACI Worldwide’s (ACIW) Analyst Day, Instructure Holdings’ (INST) Investor Day, Cisco Systems’ (CSCO) Tech Talk, and appearances by a large range of companies at the J.P. Morgan Industrials Conference – including Delta Air Lines (DAL), Honeywell (HON), and Canadian Pacific Kansas City (CP).
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A block of shares of Arm Holdings (ARM) will roll off their IPO lockup period. In general, analysts think that post-lockup sales could be absorbed by the market, although the huge share price rally in the last six weeks has raised the stakes.
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Karuna Therapeutics (KRTX) holders vote on Bristol-Myers (BMY) deal.
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Six Flags (SIX) holders vote on deal with Cedar Fair (FUN).
The major market averages finished off the start of the trading week in a relatively uneventful fashion as the averages closed mixed on Monday.
The Nasdaq (COMP:IND) closed out lower by 0.4%, the S&P 500 (SP500) finished the session down 0.1%, and the Dow (DJI) concluded in the green by 0.1%.
Six of the 11 S&P sectors wrapped up Monday’s trading in negative territory. Materials were the best performer. At the bottom of the list were Industrials and Real Estate.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. Crude oil is up 0.7% at more than $78 per barrel. Bitcoin is up 0.4% at more than $71,000.
In the world markets, the FTSE 100 is up 1% and the DAX is up 0.3%.
The biggest movers for the day premarket: Oracle (NYSE:ORCL) is up 13% after strong FQ3 results and a positive outlook.
On today’s economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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