Kraft-Heinz combine - Who's next?, Get in on GoPro & Apollo Education implodes
The big focus today is the blockbuster Kraft-Heinz merger worth about $45 billion, according to Dealogic. Investors are now speculating on who may be next? Mondelez (MDLZ) seems to be topping the list, with those shares up about 2%. The owner of well known brands including Cadbury, Sour Patch Kids and Oreos, just to name a few could be an attractive candidate according to JPMorgan (JPM). Potential suitors may include private equity or we may potentially see more industry M&A. Either way these food companies will be forced to get more competitive against Kraft-Heinz and its largest shareholder Warren Buffett's Berkshire Hathaway (BRK-B). Kraft (KRFT) shares up over 30% today.
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GoPro (GPRO) is grinding higher by 2% after the team at FBN said now is the time to buy shares in a company that is a category killer. GoPro has revolutionized body cameras for the masses and they recently announced plans to launch the "GoPro Channel" on Vessel, plus they've got a deal with Roku to debut in the spring which will reach millions of viewers. These initiatives are expected to turnaround the shares which have dropped about 30% this year.
Finally, Apollo Education (APOL) is our disaster du jour, down by more than 20%. The for profit education company posted a quarterly loss as total enrollments dropped 15% more than Wall Street estimates. Federal regulators have been scrutinizing the company's practices, which is never good for business. Apollo has also taken a hit from President Obama's proposal for free community college, which if it became reality would siphon off a lot of Apollo students.
