Illustration by Elias Stein
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QuantumScapeS
The amazing growth continued last week as a gift from a Santa Claus. Shares of the battery maker for electric vehicles closed at $ 131.67, up 39%, after rising 29% on Monday. The stock gained almost 70% in one week and 390% since entering the market at the end of November.
On Tuesday, Quantum shares were worth $ 59 billion, based on fully diluted pro forma shares of $ 448 million. The company overtook rivals, including
Lg chem,
Samsung SDI,
and
Panasonic,
market value. An exception: China
Contemporary Amperex technology,
which was worth about $ 110 billion. But Quantum was also higher in market value than
Ford Motor
and
General engines,
every except for the Russell 3000 automatic component
adze,
and two of the world’s largest auto parts companies, Japan
Denso
and Germany
Continental.
Shares fell during the week to a market ceiling of $ 51 billion.
QuantumScape went public in a merger with a special purpose procurement company or SPAC, Kensington Capital Acquisition. Jeremy Grantham, GMO, invested $ 12.5 million in QuantumScape seven years ago through his foundation, a $ 4.8 million share worth $ 551 million now. (GMO has confirmed that it still owns all the shares.) Grantham doesn’t like SPACs, he told the Financial Times, but the stake “accidentally” turned into the biggest investment he has ever made.
What really drives the actions? Anecdotally, there are not too many stocks to borrow, which suggests a short squeeze. And electric vehicles and batteries are hot right now. Tesla continues to grow, and Reuters reported this
Apple
intends to enter the EV market by 2024, with its own battery technology, which could compete with Quantum’s. Or maybe it’s just Santa Claus.
Next week
Monday 12/28
Federal Reserve Bank of Dallas launches Texas manufacturing outlook survey for December. The consensus estimate is for a reading of 11, similar to the November figure. The index suddenly returned from a record level in April and rises to its highest level since the end of 2018.
Tuesday 12/29
S & P
CoreLogic
launches the US Case-Shiller National Price Index for October. Economists forecast a 7% year-on-year increase, according to September data. This figure is the highest for the index since May 2014, as the real estate market continues to be a bright spot for the economy.
Wednesday 12/30
Institute for Supply Management launches the Chicago Purchasing Manager Index for December. Expectations are for a reading of 56.8, a decrease from 58.2 in November.
Tiffany is holding a special virtual shareholders’ meeting to vote on the proposed merger
LVMH Moët Hennessy Louis Vuitton.
LVMH initially agreed to buy Tiffany in a $ 135 per share cash transaction 13 months ago, in a $ 16 billion deal. Due in part to pandemic closures, the price was renegotiated to $ 131.50 per share in October, saving LVMH $ 430 million.
National Association of Real estate agents launch their home sales index waiting for November. The expectations are for a simple reading, from one month to another. The index fell 1% in September and October, after strong gains in the summer. Currently, the index is just below its all-time high, set in early August.
Devon Energy
and
WPX Energy
holds special shareholders’ meetings to seek the proposed approval for their merger of equal shares, first announced at the end of September. Under the terms of the agreement, Devon’s shareholders would own approximately 57% of the combined entity, which would have a value of approximately $ 16 billion.
Census Bureau reports the international trade balance of goods for November. It is expected to run a deficit of about $ 80 billion, similar to the last four months. The trade deficit in goods reached a record monthly high of $ 83.9 billion in August.
Mortgage bankers The association is launching the Composite Market Index, which tracks the volume of mortgage applications for the week ending December 25. The index is growing strongly from year to year, as the 30-year fixed rate is one percentage point completely lower than a year ago. , at 2.86% recently.
Thursday 31.12
Fixed income markets closes early at 14:00 EST for New Year’s Eve. However, the New York Stock Exchange and the Nasdaq maintain their regular trading schedule.
Department of Labor reports initial unemployment claims for the week ending December 26. Unemployment rose in December to an average of 852,000 a week as Covid-19 cases rose in parts of the country. By December, receivables had fallen each month since April, averaging 740,500 a week in November, down from an April peak of more than five million a week.
Friday 1/1
Stock and bond markets are closed on New Year’s Day.
Write to Al Root at [email protected]