Jack in the Box Inc. (NASDAQ: JACK) is having a strong start to the trading session this morning, and for good reason. The company announced that it is exploring strategic alternatives, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The strategic alternatives exploration;
- what we’re seeing from JACK stock as a result; and
- what we’ll be watching for ahead.
JACK Announces Strategic Exploration
As mentioned above, Jack in the Box is having a great day in the market today after the company announced the exploration of strategic alternatives. In a press release issued early this morning, the company said that it is exploring a range of strategic and financing alternatives.
In the release, JACK said that these alternatives could include the sale of the company or executing on the company’s previously announced plans to increase leveragel.
In the release, the company said that its board has not set a timetable for the conclusion of the process, nor has it made any decisions relating to any strategic or financing alternatives as of yet. Nonetheless, JACK said that it has had discussions with potential buyers. Nonetheless, there is no assurance that these discussions or the strategic alternatives review will lead to any strategic transaction or capital change.
Nonetheless, the company did say that in the case of strategic transactions not being made, it remains committed to its previously announced plan to have a new capital structure in place by the end of the first half of 2019. In the release, JACK also said that it does not intend to provide any further comments with regard to the review unless or until it determines that further disclosure is appropriate or required by law.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Jack in the Box, the news proved to be overwhelmingly positive. After all, the strategic alternatives exploration could lead to a transaction that provides a significant return of value for investors. So, it comes as no surprise to see that excited investors are pushing the stock upward in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:43), JACK is trading at $84.50 per share after a gain of $4.17 per share or 5.19% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on JACK. In particular, we’re interested in following the story surrounding the company’s continued work to explore its alternatives and excited to see what move the strategic exploration ends in. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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