WEBVTT - Taylor Morrison Soars; MGM Resorts Rallies; IBM Jumps

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:16.160
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.320 --> 0:00:18.480
<v Speaker 1>Let's take a look at some stocks on the move today.

0:00:18.720 --> 0:00:22.640
<v Speaker 1>I'm Tom Keen with Paul Sweeney and Bloomberg's Alexis Christophers.

0:00:22.680 --> 0:00:24.680
<v Speaker 3>All right, let's do it and start with a big

0:00:24.720 --> 0:00:28.280
<v Speaker 3>winner here in the pre market, Taylor Morrison home The

0:00:28.360 --> 0:00:31.000
<v Speaker 3>stock is up twenty two percent in the pre market.

0:00:31.240 --> 0:00:34.559
<v Speaker 3>Berkshire Hathaway is going to buy Taylor Morrison. It's an

0:00:34.560 --> 0:00:38.519
<v Speaker 3>all cash deal worth six point eight billion dollars. It's

0:00:38.520 --> 0:00:40.840
<v Speaker 3>about seventy two to fifty a share, a twenty four

0:00:40.880 --> 0:00:44.080
<v Speaker 3>percent premium to the homebuilder's last closing price Friday, So

0:00:44.120 --> 0:00:47.240
<v Speaker 3>pretty nice. And it is also the first major purchase

0:00:47.320 --> 0:00:51.120
<v Speaker 3>under Berkshire's new CEO, Greg Abel, of course, after legendary

0:00:51.159 --> 0:00:53.680
<v Speaker 3>investor Warren Buffett retired last year. And it is seen

0:00:53.720 --> 0:00:55.840
<v Speaker 3>as a vote of confidence in the housing market, which,

0:00:55.920 --> 0:00:57.880
<v Speaker 3>let's face it, has been going through it lately. Right.

0:00:58.480 --> 0:01:00.400
<v Speaker 3>They say it's a way for the company to unify

0:01:00.520 --> 0:01:04.960
<v Speaker 3>Berkshire's home building operations. Berkshire has been sitting on a

0:01:05.000 --> 0:01:07.080
<v Speaker 3>cash pile. Are you ready for it? Three hundred and

0:01:07.120 --> 0:01:09.840
<v Speaker 3>ninety seven billion dollars at the end of less.

0:01:09.680 --> 0:01:11.720
<v Speaker 1>Third of a trillion dollars.

0:01:11.959 --> 0:01:13.320
<v Speaker 3>So they're like, yeah, let's make a purpose.

0:01:13.440 --> 0:01:16.240
<v Speaker 1>Put it at a Christmas club account. That's a hell

0:01:16.280 --> 0:01:17.319
<v Speaker 1>of a toaster.

0:01:17.200 --> 0:01:19.080
<v Speaker 3>I'll tell you. But you know what, Berkshire Hathaway took

0:01:19.080 --> 0:01:21.320
<v Speaker 3>a look at that stock. It's actually down five and

0:01:21.319 --> 0:01:24.319
<v Speaker 3>a half percent year to date, right underperforming the rest

0:01:24.319 --> 0:01:26.960
<v Speaker 3>of the market. That's interesting, But I was put in

0:01:27.040 --> 0:01:29.040
<v Speaker 3>some of that cash pile to good use with Taylor

0:01:29.120 --> 0:01:33.200
<v Speaker 3>Morrison MGM Resorts. This is a story that is unfolding

0:01:33.240 --> 0:01:36.720
<v Speaker 3>here this morning. The stock is up thirteen percent right now.

0:01:37.160 --> 0:01:39.840
<v Speaker 3>So The New York Times is reporting that Barry Diller,

0:01:39.959 --> 0:01:43.120
<v Speaker 3>who owns People, Inc. Is preparing to make a bid

0:01:43.600 --> 0:01:46.840
<v Speaker 3>for the remaining portion of MGM he doesn't already own.

0:01:46.920 --> 0:01:49.480
<v Speaker 3>That's actually seventy four percent of MGM that he doesn't

0:01:49.480 --> 0:01:52.320
<v Speaker 3>already own. It would be a bid that would value

0:01:52.320 --> 0:01:55.400
<v Speaker 3>the company at eighteen billion dollars. They're looking at forty

0:01:55.400 --> 0:01:58.600
<v Speaker 3>eight thirty a share in cash, and that would be

0:01:58.680 --> 0:02:01.720
<v Speaker 3>a ten and a half percent premium over MGM's closing

0:02:01.720 --> 0:02:05.280
<v Speaker 3>price on Friday and thirty percent higher. Then it's volume

0:02:05.320 --> 0:02:07.640
<v Speaker 3>weighted average price over the last ninety days. That's what

0:02:07.680 --> 0:02:10.200
<v Speaker 3>the Bloomberg terminal will give you a little data like that.

0:02:10.400 --> 0:02:13.240
<v Speaker 1>How are they doing Paul versus like all the sports

0:02:13.240 --> 0:02:15.520
<v Speaker 1>betting in that? Is it taken the thunder away?

0:02:15.840 --> 0:02:19.040
<v Speaker 4>No? No, but this Jim is really a bet on Vegas.

0:02:19.600 --> 0:02:22.120
<v Speaker 4>They do have exposure, some exposure to Asia, but it's

0:02:22.120 --> 0:02:24.200
<v Speaker 4>really bet on Vegas. I got such just iconic brands

0:02:24.200 --> 0:02:27.720
<v Speaker 4>from including my Belagio, which is my home. You were

0:02:27.760 --> 0:02:29.880
<v Speaker 4>from home in Belagi. Yeah, I got this high roller

0:02:29.919 --> 0:02:34.120
<v Speaker 4>suite there. They do you sure you was a high roller?

0:02:34.200 --> 0:02:36.160
<v Speaker 4>Oh yeah, all right, you're high roll.

0:02:36.280 --> 0:02:37.040
<v Speaker 3>It's a risky guy.

0:02:37.080 --> 0:02:38.920
<v Speaker 4>I used to bring a conference there every year and

0:02:38.919 --> 0:02:43.320
<v Speaker 4>I'd spend you know, fifty grand, one hundred grand risk

0:02:43.400 --> 0:02:46.800
<v Speaker 4>free to them with dinners and conferences like you gotta

0:02:46.880 --> 0:02:48.840
<v Speaker 4>commy for that, I mean if people like you. Yeah,

0:02:48.840 --> 0:02:50.240
<v Speaker 4>so I finally worked out a deal there.

0:02:50.280 --> 0:02:52.839
<v Speaker 1>So when you're a high roller, what's the view look

0:02:52.960 --> 0:02:54.200
<v Speaker 1>like at the window.

0:02:54.200 --> 0:02:55.720
<v Speaker 4>Well, you're not looking at the parking lot.

0:02:55.600 --> 0:02:58.760
<v Speaker 2>Look at the pool.

0:02:59.480 --> 0:03:01.560
<v Speaker 4>Off the U and the whole Thanks a little loud though,

0:03:01.560 --> 0:03:02.200
<v Speaker 4>because it goes off.

0:03:02.240 --> 0:03:05.200
<v Speaker 1>I had dinner once there with a wonderful law from

0:03:05.320 --> 0:03:09.440
<v Speaker 1>Leon Jeworski's law firm from Houston and ages ago you.

0:03:09.400 --> 0:03:11.160
<v Speaker 3>Got one more see Yeah, And I'm still waiting for

0:03:11.240 --> 0:03:13.560
<v Speaker 3>my invite to the Blaggio Tom from Paul, so we'll

0:03:13.560 --> 0:03:17.200
<v Speaker 3>see how that works. At IBM, continuing its recent hot

0:03:17.200 --> 0:03:20.560
<v Speaker 3>streak up eleven percent this morning, Barkley is issuing its

0:03:20.560 --> 0:03:24.280
<v Speaker 3>first rating on the stock, initiating coverage overweight, price target

0:03:24.280 --> 0:03:26.240
<v Speaker 3>three hundred and fifty dollars. And guess what it's not about?

0:03:26.280 --> 0:03:29.200
<v Speaker 3>Quantum computing. Remember I think it was last week the

0:03:29.240 --> 0:03:31.760
<v Speaker 3>government said it was going to put this federal infusion

0:03:31.800 --> 0:03:35.200
<v Speaker 3>of a billion dollars into IBM and companies like it

0:03:35.240 --> 0:03:38.920
<v Speaker 3>to build these standalone quantum foundriies. But this analyst over

0:03:39.040 --> 0:03:42.640
<v Speaker 3>at Barkley's is actually calling out IBM software, which is

0:03:42.680 --> 0:03:45.000
<v Speaker 3>sort of what it's known for right, a different aspect

0:03:45.040 --> 0:03:48.560
<v Speaker 3>of the business. It says software is behind nearly half

0:03:48.640 --> 0:03:51.760
<v Speaker 3>of IBM's revenue and most of its profits. He says

0:03:51.760 --> 0:03:56.000
<v Speaker 3>IBM's infrastructure software will create a highly loyal customer base.

0:03:57.040 --> 0:04:01.080
<v Speaker 2>This stock mover's report from Bloomberg Radio check back with

0:04:01.160 --> 0:04:03.720
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:03.800 --> 0:04:06.880
<v Speaker 2>making news on Wall Street, and for the latest market

0:04:06.920 --> 0:04:11.400
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube,

0:04:11.480 --> 0:04:14.960
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:15.040 --> 0:04:16.520
<v Speaker 2>the Bloomberg Business App.