Powell, please 🥺
Tomorrow is a big day. After a booming year of growth seen in 2021, the course for 2022 will be decided in the Fed Meeting tomorrow, and the single question on everyone's mind - what will happen to interest rates? Here's a Twitter thread explaining why tomorrow will be so pivotal! Equities markets had the largest drop since March 2020 yesterday but somehow managed to end the day in the green.
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For this week's community highlights, we look at a failed mega-merger of Unilever and Glaxo, Triller going public via SPAC and Q4 Earnings season. We cover the merger of First National Bank of Pennsylvania and Howard Bank in our M&A Deal of the Week and in our latest podcast, we speak to Paul-Louise Lepine, a VC Investor at Molten Ventures.
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Unilever's strategy was under the investor microscope on Thursday after the consumer goods group effectively abandoned its 50 billion pound ($68 billion) pursuit of GlaxoSmithKline's consumer healthcare business. Unilever is under pressure after a 31% drop in its share price since highs seen in late 2019, had been wise not to be drawn into upping their bid for a business that GSK has said it wants to spin-off.
TikTok rival Triller to go public via a merger with SeaChange International. The combined entity will be valued at approximately $5 billion. We may say even more competition between these rivals and possibly even Triller pulling ahead of the game.
2022 started as a difficult year for equity investors and many funds are still down -5% or -10% this year. People have lost money in equities. Most active investors do not have to care about this since they are rewarded on outperforming the stock market index. However, many investors are hurt this year and the key question now is: will the downward trend continue? Is it time to sell equities now? Is it like 2008 again?
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F.N.B. Completes Howard Bancorp Merger
F.N.B. Corporation (NYSE: FNB)
- F.N.B. Corporation (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia.
- The Company has total assets of approximately $42 billion and nearly 340 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C. and Virginia.
Howard Bancorp, Inc. (NASDAQ: HBMD)
- Howard Bancorp, Inc. is a Maryland-chartered trust company operating as a commercial bank. Headquartered in Ellicott City, Maryland, Howard Bank operates a general commercial banking business.
- Howard Bank has approximately $2.6 billion in total assets, $2 billion in total deposits and $1.9 billion in total loans and leases at March 31 and operates 13 banking offices in Baltimore and the greater Washington D.C. area.
- As a result of the merger with Howard, FNB has approximately $42 billion in total assets, $27 billion in total loans and $33 billion in total deposits. FNB also has assumed the number six retail deposit share for banks in the Baltimore metropolitan statistical area.
- Upon completion of the system integration on February 7, 2022, all Howard customers will have access to FNB's enhanced online and mobile banking technology, including its award-winning mobile banking app and proprietary eStore.
- FNB's new customers also will enjoy a more expansive suite of products and services, such as Capital Markets and Debt Capital Markets capabilities, Insurance, Wealth Management, Private Banking, Treasury Management and Mortgage Banking.
This week we are joined by Paul-Louise Lepine, a VC Investor at Molten Ventures.
This episode covers:
- Transitioning from strategy consultant to venture capital investor
- The current technology venture capital landscape and notable trends
- How Molten Ventures competes to land entrepreneurs for their portfolio
- Being an early-stage investor in a unicorn (Revolut)
- How to land a role at a top venture capital fund
$PFE - Pfizer
Founded in 1942, Pfizer is a leading research-based biopharmaceutical company, engaging globally in the discovery, development, manufacture, marking, sales, and distribution of biopharmaceutical products. The company operates in 6 key therapeutic areas: Internal Medicine, Oncology, Hospital, Vaccines, Inflammation & Immunology, and Rare Diseases, with a range of key products in each of these areas.
Continued Reliance on COVID Vaccines - Pfizer has developed a niche position as a leader in COVID vaccination, with one of the most successful vaccines that continues to offer strong protection against variants, as well as a leading treatment option. Given the likelihood of both further variants - vaccination against COVID will continue to be a key part of health policy in the West.
Future Acquisition Strategy - Pfizer’s current cash position allows it to acquire attractive, late-stage portfolios while utilising its own expertise to streamline and enhance its development, approval, manufacturing and sale. Pfizer has already acquired Trillium Therapeutics and is in the process of acquiring Arena Pharmaceuticals, both of which have strong candidate portfolios which are well-positioned to support Pfizer’s long-term profitability
Catalysts - The discovery of additional COVID variants - focus on severity and the reduced protective effects of previous vaccine doses. In addition regulatory response - further entrenchment of vaccine requirements for travel is key to long term revenue boost. Finally, acquisition announcements through 2023 - existing cash and cash equivalents are well above Pfizer’s normal levels, and it is actively looking to expand its candidate pipeline while getting rid of excess cash.
Risks - Reduced vaccine rules - the elimination of vaccine or booster requirements could harm revenue in coming years. Also, poor acquisition strategy - markets could respond negatively to a poorly timed announcement or overvalued acquisition target
We'll catch you again next week, until then, make sure you're signed up to our community, and follow us on LinkedIn, Instagram, and Twitter! If you have any feedback or want to join our team, send us a message!
- Salman @ Finance Focused