Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

Tuesday’s Market Insights: Nimble Storage Inc (NMBL), My Size Inc (MYSZ), Rennova Health (RNVA)


Nimble Storage Inc (NYSE:NMBL) shares are soaring by over 45% in trading today following the announcement that the flash-storage company will be bought by HP Inc (NYSE:HPQ) in a $1 billion deal.

The fact that share prices are now trading at $12.50 reflects the fact that HPE is paying a 45% premium on the share’s closing price on Monday. The deal, which is due to close in April, will also result in Nimble receiving about $200 million of unvested equity awards.

HPE CEO Meg Whitman says in a statement. “We remain focused on high-growth and higher-margin segments of the market.” And that strategy certainly applies to the flash storage market which is expected to be worth around $20 billion by 2020, up from $15 billion in 2016.

HPE will benefit from Nimble’s predictive flash offerings for the entry to midrange segments as well as its InfoSight Predictive Analytics support platform that automatically detects and resolves the vast majority of customer issues.

Out of the 4 analysts polled by TipRanks (in the past 3 months), three rate NMBL stock a hold, and one recommends to buy. The stock’s average analyst target price stands at $10.50; which, due to the recent gains, now represents a -15.93% downside to the current share price of $12.50.

My Size (NASDAQ:MYSZ) shares are also rising in Tuesday’s trading with prices up 24% to $3.13. Measurement tech company My Size has just announced that it has started to plan the opening of a subsidiary in Poland with the assistance of PNO Consultants. The new subsidiary will include an R&D Facility and, according to the press release, a team will also be hired to “develop a new product for an existing market.”

However the R&D facility is dependent on the approval of a grant by the Polish government. My Size is submitting a grant proposal to the EU in the second quarter of the year, and PNO is currently preparing the relevant funding applications.

“No matter the product, if it can be measured, our applications will be there to help” says CEO and founder Ronen Luzon. My Size’s measuring algorithms can be applied in the fashion industry, e-commerce, shipping as well as parcel industry measurement.

Rennova Health (NASDAQ:RNVA) shares are sinking by -16.22% in Tuesday’s trading. The drop in prices to $2.50 can be explained as a pullback from shares trading at very high levels during the last trading session, which saw prices peak at close to $3.6. Prices soared after Rennova, a provider of diagnostics and supportive software offerings to healthcare providers, reported a successful launch for one of its hiring portals. Oneida, Tennessee-based Big South Fork Medical Center obtained almost 200 job applications in less than a day of opening its web portal to support the hiring of new staff.

“We believe our accomplishments and timeline to reopen the hospital in Oneida and continued accomplishments in our overall business are in keeping with our strategy and business plan,” said Seamus Lagan, CEO of Rennova Health. “We look forward to a strong recovery in 2017 after a very difficult 2016, and we anticipate filing our 2016 audit timely by March 31 and updating our shareholders and investors at that time.”

 

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