• GRIT
  • Posts
  • NYCB Rescued by Investors

NYCB Rescued by Investors

NYCB, American Eagle, Banks

Good Morning! 👋

Happy Thursday! One more day until Friday:

👉 NYCB made a massive deal

👉 American Eagle earnings are in

👉 Possible huge bank win

NYCB: Massive Deal

New York Community Bancorp, a struggling regional bank, announced a $1 billion capital boost and leadership changes, including former Treasury Secretary Steven Mnuchin joining its board. This news led to a sharp increase in its stock price. The investment is part of a deal with several firms, aiming to stabilize the bank after its stock had fallen significantly. Joseph Otting, a former regulatory official, is set to become the new CEO.

Source: Vanity Fair

At one point during the trading day, NYCB stock was down -42%, but it finished the day at +8%. This move is a reflection of the market having confidence in the new investment deal. These challenges recall the difficulties that led to the failure of other regional banks like Silicon Valley Bank and Signature Bank in 2023. NYCB had previously acquired assets from Signature Bank.

🎯 GRIT TAKE: NYCB has been officially rescued in the short term…Upgrade to GRIT VIP to read the full GRIT Take!

Interested in learning how to invest in small-cap stocks? Sign up for our latest email course, Investing In Small Cap Stocks!

AMERICAN EAGLE: Earnings Are In

American Eagle announced a strategy to increase profits over the next three years after recording a $94 million loss from its logistics division, Quiet Platform. The company surpassed holiday earnings expectations due to strong demand and reduced costs, with a net income of $6.32 million for the quarter ending February 3, down from the previous year. Sales increased to $1.68 billion, up 12% from last year, with expectations of continued growth.

Source: CNBC

During the pandemic, American Eagle acquired several logistics companies to form Quiet Platforms, aiming to enhance shipping efficiency. However, the venture underperformed, leading to restructuring efforts. The company faced $98.3 million in related charges. American Eagle's plan focuses on growing operating income by mid-to-high teens annually from a 3% to 5% increase in revenue, targeting a 10% operating margin. Efforts will include expanding its main brand and Aerie, developing activewear Offline, and optimizing operations to boost growth and profitability.

BANKS: Big Win Soon

Wall Street banks are likely to win a big regulatory battle, as Federal Reserve Chair Jerome Powell hinted at easing up on plans for banks to keep more money in reserve. This announcement surprised many and put a key Biden administration regulation at risk.

Source: NBC

The banking industry's strong lobbying efforts seem to be paying off, reflecting its significant power in Washington since the financial crisis. This regulation aimed to make banks safer and was sparked by recent bank failures. The decision on when to implement these changes, either in March or April, is still pending. Meanwhile, the economy's performance, including wage increases, is closely watched and impacting financial markets.

Headlines You Need To Know: 🎙

  • NYCB is likely to have a massive sale soon

  • Corporate tax hikes will be focus of Biden speech

  • Hugo Boss plunges 12% on earnings

  • How Apple sank $1 billion into a car that it never built

  • China could flood USA EV market

Chart of the Day

📊 The Best-Selling Car In Each State

Source: StatsPanda

GRIT Meme of the Day 😂

Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇

Source: @wallstreetoasis

Don’t follow us on social yet? Follow us on Instagram, TikTok, and Twitter.

Do you have feedback to share? Click HERE.

Interested in being featured in our GRIT Newsletters? Click below!

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

If you have any questions please contact us at help@gritcap.io

Join the conversation

or to participate.