Of all the headlines on Monday morning, one in particular caught our traders’ eyes on PreMarket Prep: Simon Property Group Inc’s (NYSE: SPG) acquisition of 80% of Taubman Centers, Inc (NYSE: TCO) for $3.6 billion, or $52.50 per share in cash.
The deal is notable not just for who it involves, one struggling mall REIT paying a massive premium for 80% of another, but for the stocks’ recent moves.
Looking at a daily chart of Taubman Centers, co-host Joel Elconin noticed the stock, which had been making multi-year lows, had four strong up days on unusually heavy volume last week.
“What a gift for anybody that’s bought this stock since 2019,” he said.
“This chart looks like some people knew this deal was happening,” added co co-host Dennis Dick. “This is the biggest move that this stock has had in years. Straight up from $26 to $35 in four days ahead of this deal. Think about where the real estate market is. We’ve been talking about mall-based retailers, besides Lulu, the mall-based retailers are all in the gutter. And here you’ve got a company that specializes in the property of malls and you're paying a huge premium. I don't get this at all.”
For the full discussion on the Simon Property-Taubman deal, click here.
Other Stocks Discussed On The Show
Some of the stocks also discussed include:
- HP Inc(NYSE: HPQ) (click here)
- Tesla Motors Inc(NASDAQ: TSLA) (click here)
- Casper Sleep Inc(NYSE: CSPR) (click here)
- Uber Technologies Inc(NYSE: UBER) (click here)
- Restaurant Brands International Inc(NYSE: QSR) (click here)
- Allergan Plc(NYSE: AGN) and
- AbbVie Inc(NYSE: ABBV)(click here)
- L Brands Inc(NYSE: LB) (click here)
- Fedex Corporation(NYSE: FDX) and
- United Parcel Service Inc(NYSE: UPS)(click here)
Paul La Monica, Digital Correspondent at CNN Business
Paul La Monica writes daily about the markets, economy and technology and also appears in the daily Buzz video segment. He also tweets throughout the day on StockTwits and Twitter @LaMonicaBuzz. La Monica previously was an assistant managing editor overseeing the site's economic, markets and technology coverage.
Paul’s full interview can be viewed at 14:15 in the video below or by clicking here.
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PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.
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