Before the bell: activism in the travel sector

Bayer settles billions in Roundup lawsuits and real estate stocks gain ground on European markets.

A typical European stock, measured by the Euro Stoxx 50, rose 0.8% yesterday. At the top of the list was Bayer, which gained 7.4% after announcing settlements totaling 10.5 billion dollar in lawsuits related to the weed killer Roundup. The German chemical group had been written off years ago but is now climbing out of the valley. Over the past twelve months, the stock has already risen 130%. Better-than-expected European inflation figures are giving the European real estate sector a boost. As a result, property stocks within the Brussels Bel20 (+0.8%) stood out as well. Logistics real estate led the way, with Montea (+2.7%) and WDP (+2.4%), followed by healthcare real estate players Aedifica (+1.8%) and Cofinimmo (+1.9%). In the United States, the S&P 500 and the technology-heavy Nasdaq both edged 0.1% higher. Shares of financial services provider Fiserv Inc (+6.9%) and low-cost airline Southwest Airlines (+6%) advanced. According to UBS, the latter is expected to post strong profit growth. Data and analytics firm FactSet Research Systems fell 7.7%.

In Tokyo, the Topix index is up 1.3% this morning. Electronics company TDK climbs 6.9%. In Belgium, real estate company Ascencio reports results today, while in the Netherlands Euronext takes the stage. In the United States, SolarEdge, Garmin, Moody’s, Figma, eBay and DoorDash are also set to publish earnings.

Activists on deck

Shares of Norwegian Cruise Line jumped 12.1% after Elliott Management disclosed it had built a stake of more than 10% in the cruise operator. The activist investor is demanding changes at board level. Just yesterday, Norwegian Cruise Line announced an order for three new cruise ships from Italian shipbuilder Fincantieri (-3.5%). The 4 billion euro order represents a substantial part of Fincantieri’s order book, yet the Italian company did not seem to benefit in the market. In roughly the same sector, TripAdvisor (+9.7%) is also welcoming an activist investor. Starboard Value has acquired a 9% stake in the company. TripAdvisor remains widely consulted by travelers but has lost nearly 75% of its market value over the past five years. Hopefully, the involvement of Starboard Value can help turn things around.

Visiting LYNX in Amsterdam

Yesterday, Spaarvarkens was a guest at the headquarters of LYNX in Amsterdam with Justin Blekemolen. Spaarvarken Pascal shared his view on the future of China and once again explained why he selected Barry Callebaut and BYD as investment ideas for the LYNX Investor Debate in January. Jim added Wizz Air as a third investment idea. Nothing new for our members. You were already informed and had the opportunity to buy those shares at lower prices. Members always come first with us. Would you like to rewatch the presentation? You can do so here: https://lynx.webinargeek.com/webinar/replay/ZfI3MsK5iYD3U1GERMAsB5WdxJK-aHjOXrM7z5bLi30/

Did you know…

that Tesla’s robotaxis have already caused 14 minor accidents since the pilot project started in Austin, Texas? Alphabet’s Waymo also reported minor incidents during the same period, including damage to third-party property. Autonomous driving is therefore not yet flawless.

This article was translated from Dutch and was originally published on Spaarvarkens.be.