Stocks & Equities

TD Bank just made its biggest acquisition ever

TD Bank just made its biggest acquisition ever, despite the volatility rocking U.S. markets.

The bank is paying $13.4 billion for Memphis-based First Horizon, in an all-cash deal valuing the shares at $25.00, to establish a presence in the Southeast.

First Horizon has leadership positions in Tennessee, Louisiana, Florida, the Carolinas and Virginia, and footholds in the attractive Atlanta, Georgia, and Dallas and Houston, Texas markets.

First Horizon shares soared on the deal.

“The Southeastern U.S. represents a tremendous opportunity for TD and the addition of First Horizon’s commercial and specialty banking capabilities will position us as a leading national player in commercial banking. We will combine our resources and capabilities and continue to invest in the region as we focus on delivering the most differentiated banking experience in our markets” said Leo Salom, Group Head, U.S. Retail, TD Bank Group, and President and CEO, TD Bank in the deal announcement…read more.

Flying Taxis Could Finally Make A Breakthrough In 2022

  • Flying taxis could gain major attention in 2022, with even more aviation start-ups set to go public.
  • While it is unlikely that we will see them in action before 2024, the infrastructure for and investment in this burgeoning tech could really ramp up this year.
  • Major companies including American Airlines and Microsoft are already interested in vertical take-off and landing aircraft.

In 2021 we saw the electric vehicle (EV) boom, with a plethora of automakers releasing their own version of the EV, both for personal and commercial use, in a bid to knock Tesla off the throne. We also saw billionaires enter the world of space travel, making it that bit more accessible for non-astronauts. So, what’s in store for 2022? According to several media sources, we can expect to see flying taxis as Vertical Aerospace goes public on the New York stock exchange, the latest of several aviation start-ups to do so.

There has long been speculation over the potential for flying taxis. Although an earlier prediction suggesting the technology could come into action in 2022 was slightly ambitious, with the current goal set for late 2024. The CEO of Vertical Aerospace, British energy entrepreneur and former Formula 1 racing team owner, Stephen Fitzpatrick, took the company public in December. This follows its merger with Broadstone Acquisition Corp.

The special purpose acquisition company (SPAC)-IPO merger is valued at around $2.2 billion. And the chairman of Broadstone, Hugh Osmond, stated, “Vertical Aerospace is at the forefront of electric aviation, a fast-growing sector that will dramatically reimagine the entire aviation market. With the endorsement of key partners, suppliers, and investors we are confident that our partnership with Stephen and Vertical’s gifted team of innovators will disrupt transportation over the next decade to come.”…read more.

  • The 5% Apple stake Berkshire Hathaway acquired in 2018 for $36 billion is now worth $160 billion as the tech giant hit the $3 trillion milestone.
  • Warren Buffett’s conglomerate has also enjoyed regular dividends from Apple, averaging about $775 million annually.
  • Berkshire’s Apple stake now makes up more than 40% of its equity portfolio.

Warren Buffett’s out-of-character bet on Apple may end up being one of his winningest investments, making more than $120 billion on paper as the tech giant shattered yet another record to top a $3 trillion market valuation this week.

Berkshire Hathaway began buying Apple stock in 2016 and by mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Flash forward to 2022 and the Apple investment is now worth $160 billion as the massive rally extended into the new year.

“Without a doubt, it is one of the strongest investments that Berkshire has made in the last decade,” said James Shanahan, Berkshire analyst at Edward Jones.

Other than Apple’s giant appreciation in share price, it has also been a lucrative bet for Berkshire because of its hefty payouts. Berkshire has enjoyed regular dividends, averaging about $775 million annually…read more.

The GOAT and the COAT

Rarely has a company done so much and received so little respect! A year ago Adcore was undervalued trading at 3X revenue. Now, after posting three consecutive quarters of 200%ish YoY growth, the company trades at just over 1X revenue. Seriously! How is this possible? Today, ADCO.v is trading at just $0.81 or in the US as ticker ADCOF at $0.64.

Not only is Adcore growing, but the rate of growth is accelerating! Adcore went from 30% growth in 2019 to 50% growth in 2020 and what could turn out to be 100% growth in 2021! Yellow numbers below are my guesstimates… CLICK to see the charts

Bank of Montreal strikes US$16.3 billion deal for Bank of the West

The Bank of Montreal has agreed to buy BNP Paribas’ U.S. banking subsidiary, Bank of the West, for $16.3 billion in cash.

The deal, announced Monday, would expand the presence here of one of Canada’s largest banks by combining the $105 billion-asset Bank of the West in San Francisco with the $162.3 billion-asset BMO Harris in Chicago.

The parties are giving the deal, which is one of the industry’s biggest this year by combined assets, until the end of 2022 to close.

Federal regulators are debating how to change the review process for big-bank deals after President Biden signed an executive order over the summer requesting greater scrutiny of consolidation within the industry.

While some lawmakers have asked banking regulators for a moratorium on large M&A deals until the policy matters can be ironed out, the Fed approved First Citizens BancShares’ acquisition of CIT Group late last week in a sign that officials may still be able to move forward.

The sale of Bank of the West would mark the latest move by a foreign bank faced with stiff competition and growth challenges to offload a U.S. operation.

“This acquisition will add meaningful scale, expansion in attractive markets, and capabilities that will enable us to drive greater growth, returns and efficiencies,” BMO Financial Group CEO Darryl White said in a press release unveiling the deal…read more.