The U.K. doesn’t yet know what Brexit means, what economic impact it will have or how to execute it.
These are the big takeaways from a week of turmoil that prevented Prime Minister Theresa May from unlocking the second phase of Brexit talks about the future terms of trade between the U.K. and the European Union.
Negotiations continue, but time is tight: Britain will crash out of the EU if no deal is agreed by March 2019, an outcome that the U.S. Chamber of Commerce warned Wednesday would be “devastating.”
Businesses are preparing to move jobs and investment out of the U.K. in early 2018 if trade talks haven’t started.
Nervous investors have pushed the pound down against the dollar this week.
1. Britain doesn’t know what Brexit means
The biggest question Britain must answer is what kind of relationship it wants with the EU, its biggest export market, once it has left.
May has made clear that the U.K. will leave the EU’s internal market and customs union. But beyond those red lines, little has been settled.
investing forum: Multi Packaging Solutions International Limited(MPSX)
- [By Bradley Seth McNew]
Multi Packaging Solutions International Ltd. (NYSE:MPSX) shares jumped 23% as of noon EST today, on the news that the packaging company would be acquired by WestRock Company (NYSE:WRK) in a deal worth $2.3 billion, including nearly $900 million of debt.
investing forum: Methanex Corporation(MEOH)
- [By Jim Robertson]
Back in February of last year, we suggested Methanex Corporation (MEOH), which ended up providing us with some pretty good gains in a fairly short amount of time, and based on what’s happening with the stock technically right now, it could be another gainer over the next several days to few weeks.
investing forum: LCA-Vision Inc.(LCAV)
- [By Lisa Levin]
Medical Practitioners: This industry jumped 2.82% by 10:15 am. The top performer in this industry was LCA-Vision (NASDAQ: LCAV), which rose 2.9%. LCA-Vision’s trailing-twelve-month revenue is $91.12 million.
investing forum: FMC Technologies, Inc.(FTI)
- [By Matthew DiLallo]
Following a series of M&A announcements in the oilfield-services sector since the onset of the oil market downturn, French oil-field service company Technip and U.S. oilfield equipment company FMC Technologies (NYSE:FTI) hooked up in an all-stock deal valuing the combined company at $13 billion. Shareholders of each company will own 50% of the combined entity, to be named TechnipFMC, which implies a roughly $6.5 billion acquisition valuation for each entity. The transaction, which should close early next year, will “combine Technip’s innovative systems and solutions, state-of-the-art assets, engineering strengths, and project management capabilities with FMC Technologies’ leading technology, manufacturing, and service capabilities.” Further, it should save $400 million in annual costs by 2019. Moreover, it will enable the combined company to compete better against larger oil-field service rivals Baker Hughes (NYSE:BHI), Halliburton (NYSE:HAL), and Schlumberger (NYSE:SLB), which have all gained strength during the downturn either through M&A activities or cost savings initiatives.
investing forum: Galapagos NV(GLPG)
- [By David Zeiler]
Bill Patalon’s initial stock pick was Galapagos NV (Nasdaq ADR: GLPG), a Belgian biotech company.
Patalon was attracted to Galapagos’ strategy to target “orphan diseases,” afflictions that strike rarely and so often go ignored by the Big Pharma companies. He also liked that Galapagos had more than 50 drug discovery programs underway, and that it already had licensing agreements with several bigger players in the industry.
- [By Stephen Mack]
Galapagos NV (Nasdaq: GLPG) is our big winner so far, gaining 578.8% since Money Morning Executive Editor Bill Patalon shared his recommendation with Money Morning readers in April 2012. The S&P 500 has gained 75.4% in the same time. Bill has renewed his recommendation for the Belgian biotech several times over the years, saying in 2016 that it has “an established history of piling on gains.” With an average gain of 110% a year, it’s hard to argue with that.