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Monday Morning Volatility: PreMarket Prep Recap For Feb. 10, 2020

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Monday Morning Volatility: PreMarket Prep Recap For Feb. 10, 2020

Of all the headlines on Monday morning, one in particular caught our traders’ eyes on PreMarket Prep: Simon Property Group Inc’s (NYSE: SPG) acquisition of 80% of Taubman Centers, Inc (NYSE: TCO) for $3.6 billion, or $52.50 per share in cash.

The deal is notable not just for who it involves, one struggling mall REIT paying a massive premium for 80% of another, but for the stocks’ recent moves.

Looking at a daily chart of Taubman Centers, co-host Joel Elconin noticed the stock, which had been making multi-year lows, had four strong up days on unusually heavy volume last week.

“What a gift for anybody that’s bought this stock since 2019,” he said.

“This chart looks like some people knew this deal was happening,” added co co-host Dennis Dick. “This is the biggest move that this stock has had in years. Straight up from $26 to $35 in four days ahead of this deal. Think about where the real estate market is. We’ve been talking about mall-based retailers, besides Lulu, the mall-based retailers are all in the gutter. And here you’ve got a company that specializes in the property of malls and you're paying a huge premium. I don't get this at all.”

For the full discussion on the Simon Property-Taubman deal, click here.

Other Stocks Discussed On The Show

Some of the stocks also discussed include:

Featured Guest

Paul La Monica, Digital Correspondent at CNN Business

Paul La Monica writes daily about the markets, economy and technology and also appears in the daily Buzz video segment. He also tweets throughout the day on StockTwits and Twitter @LaMonicaBuzz. La Monica previously was an assistant managing editor overseeing the site's economic, markets and technology coverage.

Paul’s full interview can be viewed at 14:15 in the video below or by clicking here.

Watch the full show or listen to the podcast below.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google PlaySoundcloudStitcher and Tunein.

Meet the Hosts:

Dennis Dick
Joel Elconin

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

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