Tapestry is buying Capri; More interesting tweets; Supreme Court Pauses Opioid Settlement With Sacklers Pending Review
1) This sure brings back memories: Coach Owner Strikes $8.5 Billion Deal for Parent of Michael Kors, Versace. Excerpt:
Coach owner Tapestry (TPR) struck a deal to buy Capri (CPRI), parent of well-known fashion brands Michael Kors, Jimmy Choo, and Versace, in a move that could help the new company better compete with the European fashion giants.
The all-cash deal, which has been under discussion for months, is valued at $8.5 billion. Tapestry is expected to pay $57 per Capri share, equal to a premium of about 59% over the 30-day volume weighted average price ending Wednesday, the companies said.
Back on March 23, 2020, the day the market bottomed during the COVID crash, the headline of my e-mail that day was "Why this is the best time to be an investor in more than a decade"... and I said that we were "trembling with greed right now."
The very next day, my colleague Enrique Abeyta and I held a webinar explaining why we both were so bullish, and sent Empire Investment Report subscribers a report on our 10 favorite stocks at the time, which, nearly three-and-a-half years later, are up an average of 84% – beating both the S&P 500 and Russell 2000 Indexes.
One of the stocks on the list was Capri, which we ended up closing later in November that same year... and readers who followed our advice in March to buy shares booked a 124% gain. (Since late 2020, the stock traded largely sideways until yesterday's massive 56% gain.)
To learn more about Empire Investment Report – including how to gain access to 10 stocks in a brand-new special report I've put together on how to take advantage of my boldest prediction yet – click here.
2) Picking up where I left off yesterday, here are more interesting tweets my analyst Kevin DeCamp found in the past few days...
Wow...
Speaking of Apple (AAPL), it's amazing how much value the company has created by channeling its enormous cash flows into share repurchases over the past decade:
It's incredible how much better the U.S. has done getting inflation under control than Europe:
This is wild... $759 billion isn't what it used to be – it's barely noticeable on this chart:
This is great to see:
Indeed, there have been a lot of stupid bubbles and beliefs over the past five years:
Here's another interesting list...
This is undoubtedly a major reason why more and more women are in the workforce:
3) I've written two dozen times (archive here) about the evil Sacklers, who bear much responsibility for the horrific opioid epidemic because of how their company, Purdue Pharma, promoted Oxycontin.
So I was outraged when the family found a friendly judge who approved a deal that, as I wrote at the time, "lets the Sacklers keep most of their blood money and likely walk away scot-free."
Thus, this is good news – hopefully the Supreme Court will block the deal: Supreme Court Pauses Opioid Settlement With Sacklers Pending Review. Excerpt:
The Supreme Court on Thursday temporarily blocked a bankruptcy deal for Purdue Pharma that would have shielded members of the billionaire Sackler family, which once controlled the company, from additional civil lawsuits over the opioid epidemic and that capped the Sacklers' personal liability at $6 billion.
The order is likely to delay any payments to the thousands of plaintiffs who have sued the Sacklers and Purdue, the maker of the prescription painkiller OxyContin, which is widely blamed for igniting the opioid crisis. Under the deal, the Sacklers had agreed to pay billions to plaintiffs in exchange for full immunity from all civil legal disputes.
The order was in response to a Justice Department objection to the plan, which the government said allowed members of the Sackler family to take advantage of legal protections meant for debtors in "financial distress," not for billionaires.
Best regards,
Whitney
P.S. I welcome your feedback at WTDfeedback@empirefinancialresearch.com.