Farmer Bros. Co. (NASDAQ: FARM) shares rocketed 88% within the first hour of the opening bell on June 7, 2023. This national distributor of coffee and tea intends to sell its direct shipping facility in Northlake for $100 million to TreeHouse Foods (NYQ: THS) and transfer its production operations to Portland, Oregon. The sale includes the 180 employees currently employed at the Northlake plant.

According to $FARM’s CEO Deverl Maserang, this move allows the company to concentrate primarily on its direct store delivery (DSD) business, which is the most profitable and offers the highest growth potential. Maserang stated that the company aims to ensure its direct ship customers are well-served by a national leader while focusing on DSD. After the deal is finalized, Farmer Brothers will relocate its remaining DSD business to its Portland roasting and production plant while maintaining its corporate headquarters in Texas by leasing space in Northlake.

📰🔍Premarket Watchlist$FARM Farmer Brothers announces agreement to sell direct ship business and Northlake, Texas facility to TreeHouse Foods, day, 15M float, high volume, high dilution$CJET InvestorNewsBreaks – Jupiter Wellness Inc. (NASDAQ: JUPW) Announces Successful SPAC… pic.twitter.com/uPupiButN9

— JTrader (@jtraderco) June 7, 2023

2017 Farmer Brothers first made headlines when it acquired Boyd’s Coffee for nearly $60 million. And just recently, in 2021, Farmer Brothers announced opening a West Coast distribution center. Maserang’s focus is profitability. For a company bringing in an incredible ~496M in revenue annually, you’d think that’s a given. Yet they still reported a ~15M net loss on their June 30th, 2022 earnings, and TTM is ~28M net loss.  

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Farmer Brothers’ direct store delivery business serves coffee, tea, spices, breakfast, and brunch products to 45,000 locations nationwide through a network of 80 independent branches, five distribution centers, and almost 240 routes. Its customer base includes restaurants, food service operators, convenience stores, hotels, casinos, healthcare facilities, and grocery chains.

Founded in 1912, Farmer Brothers is known for its primary brands, such as Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, and Boyd’s. Its sales for fiscal year 2022 reached $469.2 million.

$FARM Strong PR, 15 Million in Float, 47% Gap Up! This is the #1 top gainer this morning and is where most day traders are focused on! As long as this can stay above $1.75 then it will stay Bullish! If you take a look at the daily chart we can see that the 50 Day MA is at $2.75,… pic.twitter.com/ABe5RQKu9J

— DekmarTrades via TradeCaster (@DekmarTrades) June 7, 2023

Following the sale of the Northlake facility, the company estimates that its annual revenue will decrease to approximately $350 million. However, as mentioned, their focus is improving profit margins. Chief Financial Officer Scott Drake stated that shifting towards a DSD-focused organization would enhance internal efficiency, reduce operational costs, and increase margins. The company plans to use the proceeds from the sale to pay off debt and streamline its operations.

Yes, that's exactly why (basic checks) I was buying $FARM below $2 per share. Oh no, the technicals are negative. Bankruptcy is near. Violation of loan covenants is one qtr away without looking at BS and history. https://t.co/Aq0mMXLA0X pic.twitter.com/mQpKqq9y2C

— ShadowStock (@ExpectedValues) June 7, 2023

TreeHouse Foods, headquartered in Oak Brook, Illinois, is a prominent manufacturer of private-label food and beverages in North America. The company operates 26 production facilities in the United States and Canada, including existing locations in Dallas and Carrollton. It was established in 2005 as a spin-off of Dallas-based Dean Foods Co. In 2016, TreeHouse Foods acquired the private brands business from Conagra Brands, marking its most significant acquisition and nearly doubling its size. In 2022, the company reported sales of $3.45 billion.

Analyst Buy Rating Suggests Strong Potential for Growth

As of June 7, 2023, Farmer Bros Co (FARM) had a median target price of $6.00, according to an analyst providing a 12-month price forecast. This indicates a significant increase of 81% compared to the last price of $3.30. The high and low estimates for the stock were also $6.00, reflecting a consensus among analysts regarding FARM’s strong growth potential. An investment analyst polled on the matter has maintained a consistent buy rating for Farmer Bros Co since August. This rating suggests that the company is expected to perform well, and investors are advised to consider purchasing shares. Regarding FARM’s current quarter earnings, the company reported a loss per share of $0.60 and sales of $121.2M. As always, it is essential for investors to carefully evaluate their financial circumstances and risk tolerance before making any investment decisions.

I wouldn't recommend it.

Today's news on $FARM shows the benefits of buying when the price drops. Analysts/experts told everyone that since the stock broke $2.00 per share, it would fall much lower!

Technical analysis may have some relevance for large companies or work +20… pic.twitter.com/kbbwx6p24O

— ShadowStock (@ExpectedValues) June 7, 2023

We will update you on FARM when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Image by Engin Akyurt from Pixabay

Reunion Neuroscience (NASDAQ: REUN) shares jump 119% as they announce an exciting new development. The clinical-stage biopharmaceutical company has entered into a take-private transaction with MPM BioImpact, representing a significant milestone for Reunion Neuroscience. The transaction is valued at $13.1 million, a 43.1% premium to Reunion’s common shares’ 30-day volume-weighted average price.

Going private is a significant step for Reunion Neuroscience, as it means that a sizeable private-equity group or consortium of private-equity firms will purchase or acquire the stock of the publicly traded corporation.

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Under the terms of the Arrangement Agreement, all holders of outstanding common shares of Reunion will be entitled to receive $1.12 in cash for each share held immediately before the effective time of the Arrangement. However, the agreement’s closing is subject to several conditions, which must be met before the transaction can be completed.

$REUN she wants more

— JC Capital Consultants (@CapitalJc) June 1, 2023

Hostile takeover?

While management and the board think it is a significant milestone achieved, others think differently – an investor rights law firm, Halper Sadeh LLC, is currently investigating it… The sale of Reunion Neuroscience to affiliates of MPM BioImpact for $1.12 per share in cash is currently being investigated by Halper Sadeh LLC.

$REUN halted pending news

— Ralph (@StuckInStock) June 1, 2023

The investigation concerns whether Reunion and its board of directors violated the federal securities laws and/or breached their fiduciary duties to shareholders by failing to, among other things: (1) obtain the best possible consideration for Reunion shareholders; (2) determine whether MPM is underpaying for Reunion; and (3) disclose all material information necessary for Reunion shareholders to assess and value the merger consideration adequately. On behalf of Reunion shareholders, Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits.

$Reun Reunion Neuro we are buying this little Gem up. Could see this at $3 in coming months. Great acquisition $13 ,million just for starters . Watch this space 💎

— The New Yorker (@TheNewY10001) June 1, 2023

Reunion Neuroscience’s stock performance has been relatively volatile in recent years. The stock’s median target price, according to analysts’ forecasts, is $5.00, but there is a wide range of estimates, with a high of $20.00 and a low of $0.73. The current consensus among polled investment analysts is to buy $REUN stock. However, they’re a pre-revenue clinical-stage biopharmaceutical company, which means the last earnings reported a loss in the current quarter’s earnings per share – they’ve yet to generate any significant revenue. Until recently, shareholders experienced a significant decline in the stock’s value this year and were down ~54%  prior to the acquisition. There are ~9M shares in the float, with ~28% and ~13% held by insiders and institutional investors, respectively.

Solid scalp for a quick win on $REUN. Low float but not really that much volume so it appears to be done and tanking accordingly. Time for this old dog to go into town.

— You Enjoy Myself (@AddenoidalHonk) June 1, 2023

Overall, investors should carefully consider the potential risks and rewards associated with investing in Reunion Neuroscience, considering the wide range of price estimates and the company’s current financial performance. Thorough research and the advice of a financial professional are recommended before making any investment decisions.

We will update you on REUN when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Image by Gerd Altmann from Pixabay

Israeli technology company Wearable Devices Ltd. (NASDAQ: WLDS), known for developing AI-powered touchless sensing wearables, has announced that their flagship consumer product, the Mudra Band for Apple Watch, is now available for pre-order on their website. The company has received thousands of pre-orders as they gear up for their first large-scale manufacturing batch.

In a remarkable turn of events, the company’s shares experienced an astounding surge of 265% at the time of writing, accompanied by a staggering total of 48 million shares being traded. Having operated under NASDAQ compliance standards since September of last year, the company has largely flown under the radar with relatively low trading volume. Currently, approximately 5.88 million shares are available for trading, a significant portion of which are closely held by insiders. The recent groundbreaking news marks a pivotal moment for the company, setting a trajectory for future growth as they assert its dominance in the realm of AI for wearable devices.

To Discover the Inside Scoop on WLDS, Subscribe to Microcapdaily.com Right Now by entering your Email in the box below.

Whewwwww $WLDS is so crazy, I spotted it early, toooooo early premarket and actually had to cut losses, but I'm FAR prouder of my https://t.co/occ8wKmT5U students who did FAR better than me, please retweet and congratulate them! Hockeydude: $WLDS in .709, exit .92 +5500…

— Timothy Sykes (@timothysykes) May 25, 2023

The Mudra Band was initially designed to allow the touchless operation of the Apple Watch using neural signals. However, it has since expanded its features with Air-Touch, which enables users to operate various Apple devices through intuitive finger movements and hand gestures, eliminating the need for physical touch. The latest features also provide seamless device switching and toggling between iPhone, iPad, Mac computer, Apple TV, smart glasses, and mobile gaming devices.

$Wlds just halted up 🤯 pic.twitter.com/hRxWZPNacc

— stocksandrealestate (@stocksandreales) May 25, 2023

Wearable Devices CEO, Asher Dahan, expressed his belief that the Mudra Band is setting a new standard for user interactions with connected devices, extended reality, and gaming. The company is scaling its marketing and support capabilities to meet the high demand for the product and aims to start shipping in the second half of 2023.

$WLDS highest probability play would be $1.50 starter, $1.55 double down and profit take at NHOD $1.60+.

— Aaron Malloch (@teambullish) May 25, 2023

The Mudra Band is compatible with different models of the Apple Watch and is being extensively tested and approved by a global community of Apple enthusiasts. It is the ultimate aftermarket accessory for controlling Apple devices within their ecosystem.

$WLDS key is to let it dance do it's thing — circuits are too close so best to let everyone blow out and let it fail then start to get interested.

— Nathan Michaud (@InvestorsLive) May 25, 2023

Quick overview of the company

Wearable Devices Ltd. is a growth-oriented company that develops AI-based neural input interface technology for both consumer and business markets. In addition to the Mudra Band, they also offer the Mudra Inspire as a B2B product, providing businesses the same functionality and technology through licensing. The company aims to create disruptive technology that leverages AI and proprietary algorithms, software, and hardware to establish the input standard for the rapidly expanding Metaverse landscape in the tech industry.

$WLDS Wearable Devices' Mudra Band for Apple Watch is Available for Preorder$WLDS + $APPL

— TheStockDon (@TheStockDon) May 25, 2023

More on the Mudra Brand and latest Event

Wearable Devices Ltd. (NASDAQ: WLDS) recently attended a big event called the TinyML Summit. They recently had the chance to show their technology firsthand and have users experience their award-winning aftermarket band for the Apple Watch – enabling touchless control of Apple products using subtle finger and wrist movements.

WOW $WLDS is now up 100% from where i sold, I REALLY am underestimating just how. many shorts are getting annihilated these days

— Timothy Sykes (@timothysykes) May 25, 2023

The tinyML Summit is a vibrant gathering that attracts a diverse range of professionals and enthusiasts from various industries. Engineers, developers, managers, executives, and founders involved in developing sensors, silicon, software, machine learning tools, or systems for the tiny ML (machine learning) market come together at this event. It also appeals to system designers and integrators seeking to incorporate low-power, low-cost machine learning into their devices and products across different verticals, such as consumer electronics, industrial applications, extended reality (XR), healthcare, and more.

🔹 Float Rotation 🔹

🚀 Elevated squeeze potential on $WLDS due to the float rotation of 10.
✅ Gain: 196.3%
🚀 Float: 6.0M
🔥 Short Float: 1.8 %

❗ 5 minutes delayed.
🔹 Get the fastest Momentum System: https://t.co/OEmW5tRFBm#smallcaps #trading pic.twitter.com/wbczyktD4T

— VertiCall Trading (@VertiCallAlgo) May 25, 2023

On top of the band, the company also highlighted its multi-device functionality that allows for seamless control across not just the Apple watch but also other Apple devices like iPhones, iPads, Mac computers, and Apple TVs

As mentioned, the summit provides a dynamic platform for showcasing cutting-edge technology in machine learning on edge devices and fostering knowledge exchange among industry leaders. In the past year, the company behind this groundbreaking technology has meticulously fine-tuned its product, remaining relatively low-key as it devoted its efforts to perfecting its innovation. 

The company is strategically leveraging events like the tinyML Summit to gain exposure. The response has been remarkable, as the product has already generated tremendous buying interest, evident from the large pre-order numbers they are experiencing. This surge in interest signifies the excitement surrounding their offering and the anticipation of what this groundbreaking technology can achieve.

We will update you on WLDS when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Image by Caro Sodar from Pixabay