Brookfield Asset Management Inc.

Brookfield Asset Management Inc. (NYSE: BAM) is a company that invests in and manages commercial real estate, electricity, and infrastructure. Real estate, infrastructure, renewable energy, and private equity are among the areas it supports. Its assets are spread around the globe, primarily in the US, Canada, Brazil, and Australia.

Key Highlights

• The company reported a 17.95% increase in revenues to USD 34.70 billion during H1FY21 (ended June 30, 2021) compared to USD 29.42 billion during H1FY20.
• Its net income increased to USD 6.21 billion during H1FY21 from a net loss of USD 1.65 million during H1FY20.
• The total Assets under Management (AUM) as of June 30, 2021, were USD 626.33 billion vs. USD 601.98 billion as of FY20 end.
• BAM's net margin fell to 13.3% in Q2FY21 from 23.0% in Q1FY21.
• On October 22, 2021, BAM reported that holders of 8,202 Series 8 Class A Preference Shares and 853,503 Series 9 Class A Preference Shares had opted to convert their shares into an equivalent number of shares of the other series, effective November 01, 2021.
• The stock is currently trading far above its key short-term (50-day) and long-term (200-day) DMA support levels, and the RSI Index is at 68.78, suggesting an overbought zone.
• Stock is leaning towards the higher band of the 52-week range of USD 28.89 to USD 61.97.
• BAM's share price has surged 59.09% and 91.86% in the past nine and twelve months, respectively.

Technical Price Chart (as of October 27, 2021). Analysis by Kalkine

Conclusion: Considering the macroeconomic conditions, margins pressure, and technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 60.68, down 0.95% as of October 27, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Digital World Acquisition Corp.

Digital World Acquisition Corp. (NASDAQ: DWAC) is a blank cheque company. It is established to combine one or more firms through a merger, capital stock exchange, asset purchase, reorganization, or similar business combinations.

Key Highlights

• It is not engaged in any business operations and has not generated any revenue.
• According to CNBC, on October 22, 2021, at least two hedge funds liquidated their holdings in DWAC after it disclosed plans to combine with former US President Donald Trump's planned social media network.
• On October 27, 2021, Republican Representative Marjorie Taylor Greene purchased shares worth up to USD 50,0000 in DWAC, as per a news article released by CNBC.
• The stock is relatively volatile, with a 52-week range of USD 9.84 to USD 175.00.
• DWAC's stock price surged by 551.51% in the past week.

Technical Price Chart (as of October 27, 2021). Analysis by Kalkine

Conclusion: Considering the absence of revenues, uncertain outlook, blank cheque status, high volatility, and other technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 64.89, up 9.85% as of October 27, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Benessere Capital Acquisition Corp.

Benessere Capital Acquisition Corp. (NASDAQ: BENE) is a blank cheque company. It is established to combine one or more firms through a merger, capital stock exchange, asset purchase, reorganization, or similar business combinations.

Key Highlights

• The company has no operations and hence, is yet to generate any revenue.
• It intends to concentrate on the technology-focused middle market and rising growth enterprises in North, Central, and South America.
• During Q2FY21, Periscope Capital Inc. acquired an additional 99,800 shares in BENE, increasing its total holding to 549,800 shares, representing a ~3.69% in the company.
• Stock is leaning towards the lower band of the 52-week range of USD 9.84 to USD 18.90.
• BENE's stock price has increased by 10.68% and 11.34% in the last week and month, respectively.

Technical Price Chart (as of October 27, 2021). Analysis by Kalkine

Conclusion: Considering the absence of revenues, uncertain outlook, blank cheque status, and other technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 11.19, up 5.37% as of October 27, 2021.

*The reference data in this report has been partly sourced from REFINITIV.  

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