Kohl’s Pressured to Pivot

Kohl’s might have its work cut out for them. 🙊 The department store chain is facing pressure from activist investor Engine Capital, who is encouraging the company to sell or spin off its e-commerce biz. The activist has accumulated a 1% stake in the company.

This situation echoes a similar one at Macy’s management involving Jana Partners back in October. 💡 Jana Partners suggested that spinning off Macy’s e-commerce business would help the company earn a more aggressive valuation, something we covered in the Oct. 14 edition of the Rip.

Similar to Jana’s suggestions, Engine Capital’s team argues that Kohl’s e-commerce business could be worth $12.4 billion as a stand-alone entity. Kohl’s currently has a market capitalization of $7.3 billion.

Engine Capital is not to be confused with Engine No. 1, an activist investor which famously took on Exxon Mobil with a scrappy stake and won three board seats. In fact, Engine Capital is actually suing Engine No. 1 over the name. The more you know. 🌈

$KSS gained 5.3% today.

Investors Are Losing Trust

It’s been a rough eighteen months or so for real estate investment trusts (REITs), with higher interest rates giving investors alternative sources of yield and pressuring commercial real estate’s asset values. Unfortunately for Medical Properties Trust (MPT), that pain continues today, with its shares falling back to their Great-Financial-Crisis lows. 😬

The medical-related real estate property operator revealed to investors that one of its tenants, Steward Health Care System, is roughly $50 million behind in rent payments. As a result, MPT will take a $225 million noncash charge to write off rent receivables and other items. 

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Pfizer’s Flop Continues

It’s been a rough ride for pharmaceutical giant Pfizer since the end of the pandemic, and that rollercoaster ride continues today. 🎢

The company last announced earnings in October but needed to update Wall Street on its 2024 forecast. It cited weak demand for its Covid products as the reason for a weaker-than-anticipated revenue and earnings forecast.

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Boeing Loses Altitude (Again)

If you’re an investor in airlines or airplane manufacturers, this is not the type of headline you want to wake up to. Unfortunately for Boeing and several others, the news is not great. So let’s dig into it. 👇

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Nio & Nikola’s Never-Ending Story

No matter the day, there seems to be an endless stream of electric vehicle (EV) industry news. Let’s get into today’s headlines. 📰

First up is China’s Nio, which just received an additional $2.2 billion investment from Abu Dhabi’s CYVN Holdings, which raised its stake to 20.1%. The fund had last invested in Nio during July, with a $1 billion investment. 

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