Bitcoin hits an all time high, thanks to Square

Bitcoin hits record high amid Square inclusion on Cash app

Bitcoin hits $8000. See Stockwinners.com for details

Bitcoin hit a new record high on Sunday, breaking the $8,000 threshold for the first time.

WHAT’S NEW:

Bitcoin reached $8,121.56 on Monday at 12:25 p.m. London Time after breaking the $8,000 value on Sunday, CNBC reported, citing the Coindesk website. The high comes after a sell-off on November 12, in which the cryptocurrency’s price dropped to roughly $5,500, resulting from the cancellation of a potential November 16 upgrade called SegWit2X, which was designed to increase transaction speeds to the bitcoin network.

Positive news including favorable regulation in Japan, increasing interest from institutional investors and planned new market products including CME Group’s (CME) bitcoin future contracts have supported the bitcoin price.

SQUARE TESTS BITCOIN

On Wednesday, Forbes reported Square (SQ) is now offering users the option to buy, sell or hold Bitcoin on its Cash app.

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin,” the spokesperson said.

“We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”

CREDIT SUISSE RAISES SQUARE PRICE TARGET

Credit Suisse analyst Paul Condra raised his price target for Square to $37 from $31 following its announcement that it is piloting bitcoin sales via its Square Cash app.

While the analyst is positive on Square’s strategy, to the extent it confers legitimacy on Bitcoin and prompts adoption by other providers, the biggest beneficiary may be the crypto-asset industry. He added that he believes there is low risk that bitcoin will disrupt mainstream payments as the cryptocurrency requires traditional bank accounts, it has fees for consumers to send it, merchant knowledge of bitcoin is very low and buyers are more interested it on holding it than spending it.

The analyst estimates that if Square can attract 10M bitcoin buyers over 10 years, it could drive an incremental $30M in revenue. Condra reiterated a Neutral rating on the shares.

SUNTRUST SAYS BITCOIN “GAME-CHANGING” FOR SQUARE

Suntrust Robinson analyst Andrew Jeffrey said the news of Square offering Bitcoin on its Cash app is bullish, if not game changing, for Square as it creates Cash app differentiation and supports potential monetization.

He added the move is also bullish for Bitcoin adoption as it eliminates friction in buying/selling the cryptocurrency via a P2P app.

Jeffrey also said a broader launch of the feature may boost new user growth for the app, drive increased engagement among existing users and allow Square to monetize Square Cash through transaction fees.

While the analyst believes the news is a slight negative to legacy ecosystem participants, he does not see mainstream Bitcoin adoption in the “investable horizon.” Jeffery has a Hold rating on Square.

Standpoint Research

Standpoint Research analyst Ronnie Moas raised his 2018 price target for bitcoin to $14,000 from $11,000. The price just crossed $8,180 and is now split-adjusted at $9,518 when you factor in the August fork spinoff bitcoin cash and the October fork spinoff bitcoin gold at $158, Moas writes in an email. The analyst sees the price of bitcoin hitting $60,000 five years. He says this is reached by 0.5% of the global total money invested currently in cash, stocks, bonds and gold going into the cryptocurrency.

PRICE ACTION

Bitcoin rose 2.1% to 8,198.99 in morning trading, while Square (SQ) was up 3.1% to $45.56.


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Intra-Cellular receives FDA Fast Track designation

 Intra-Cellular receives FDA Fast Track designation for lumateperone

Intra Cellular Therapies receives FDA's fast track designation. See Stockwinners.com for details

Intra-Cellular (ITCI) announced that the FDA has granted Fast Track designation for lumateperone for the treatment of schizophrenia.

Lumateperone (INN; developmental code names ITI-007ITI-722) is an investigational atypical antipsychotic which is currently under development by Intra-Cellular Therapies, licensed from Bristol-Myers Squibb, for the treatment of schizophrenia.  It is also being developed by Intra-Cellular Therapies for the treatment of bipolar disorder, depression, and sleep and behavioral disturbance in dementia, autism, and other neuropsychiatric disorders.

The company requested Fast Track designation for lumateperone based on clinical evidence that lumateperone has the potential to address the unmet medical need for the treatment of schizophrenia with significant improvements on several clinically significant safety parameters, including with respect to metabolic, motor and cardiovascular issues associated with many currently available antipsychotic agents.

The FDA’s Fast Track designation is designed to facilitate the development and expedite the review of drug candidates to treat serious and life-threatening conditions.

Fast Track designation may allow for more frequent meetings and communications with the FDA to discuss a drug candidate’s development plans and review process.

Drug candidates with Fast Track designation may also qualify for priority review to expedite the FDA review process, if relevant criteria are met.

ITCI closed at $15.32.


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Cavium sold for $6 billion

Marvell to acquire Cavium for $40.00 per share in cash plus 2.1757 MRVL stock

Cavium sold for $6 billion. See Stockwinners.com

Marvell Technology Group (MRVL) and Cavium (CAVM) announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Marvell will acquire all outstanding shares of Cavium common stock in exchange for consideration of $40.00 per share in cash and 2.1757 Marvell common shares for each Cavium share.

Upon completion of the transaction, Marvell will become a leader in infrastructure solutions with approximately $3.4B in annual revenue.

The transaction combines Marvell’s portfolio of leading HDD and SSD storage controllers, networking solutions and high-performance wireless connectivity products with Cavium’s portfolio of leading multi-core processing, networking communications, storage connectivity and security solutions.

The combined product portfolios provide the scale and breadth to deliver comprehensive end-to-end solutions for customers across the cloud data center, enterprise and service provider markets, and expands Marvell’s serviceable addressable market to more than $16B.

This transaction also creates an R&D innovation engine to accelerate product development, positioning the company to meet today’s massive and growing demand for data storage, heterogeneous computing and high-speed connectivity.

The transaction is expected to generate at least $150M-$175M of annual run-rate synergies within 18 months post close and to be significantly accretive to revenue growth, margins and non-GAAP EPS. Under the terms of the definitive agreement, Marvell will pay Cavium shareholders $40.00 in cash and 2.1757 Marvell common shares for each share of Cavium common stock.

The exchange ratio was based on a purchase price of $80 per share, using Marvell’s undisturbed price prior to November 3, when media reports of the transaction first surfaced.

This represents a transaction value of approximately $6B.

Cavium shareholders are expected to own approximately 25% of the combined company on a pro forma basis. Marvell intends to fund the cash consideration with a combination of cash on hand from the combined companies and $1.75B in debt financing.

Marvell has obtained commitments consisting of an $850M bridge loan commitment and a $900M committed term loan from Goldman Sachs Bank USA and Bank of America Merrill Lynch, in each case, subject to customary terms and conditions. The transaction is not subject to any financing condition.

The transaction is expected to close in mid-calendar 2018, subject to regulatory approval as well as other customary closing conditions, including the adoption by Cavium shareholders of the merger agreement and the approval by Marvell shareholders of the issuance of Marvell common shares in the transaction.

Matt Murphy will lead the combined company, and the leadership team will have strong representation from both companies, including Marvell’s current CFO Jean Hu, Cavium’s Co-founder and COO Raghib Hussain and Cavium’s Vice President of IC Engineering Anil Jain.

In addition, Cavium’s Co-founder and CEO, Syed Ali, will continue with the combined company as a strategic advisor and will join Marvell’s Board of Directors, along with two additional board members from Cavium’s Board of Directors, effective upon closing of the transaction.


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