JUMP REPORT

(Bloomberg) — The stocks that were hammered as collateral damage in the liquidation of Archegos Capital Management are seeing a silver lining from their slump: they’re becoming investable again.Companies including U.S. media conglomerates ViacomCBS Inc. and Discovery Inc., as well as apparel retailer Farfetch Ltd. saw a total of about $194 billion in market value erased as banks from New York to Zurich to Tokyo unwound leveraged equity bets by Archegos.At first, the forced selling in such a specific group of shares raised fears of potential undisclosed issues with the stocks, fueling even more losses. With that scenario now discarded, and with the dust from the Archegos blowup settling, analysts are saying investors should look at some of these names again.“Usually these dislocations where you get forced selling for non-fundamental reasons work out to be very good buying opportunities,” said Greg Taylor, chief investment officer at Toronto-based Purpose Investments. “The counter to that is having to figure out how much of the runup was due to the buying that shouldn’t have been there either. So you have balance that both out.”Read more: Block-Trade Bevy Wipes $35 Billion Off Stock Values in a DayTake ViacomCBS for example.Until late in March, the company was among the top performing stocks in the benchmark S&P 500 Index, alongside Discovery, boosted in part by optimism over its streaming strategy but also thanks to a massive play by Bill Hwang’s Archegos. The fund at one point amassed $10 billion worth of ViacomCBS shares and colossal positions in a few other companies.Read more: Bill Hwang Was a $20 Billion Whale, Then Lost It All in Two DaysSince Archegos’ blowup and after a 52% drop in ViacomCBS’s stock over the course of a week — which in turn brought its valuation down by over 50% from a peak on March 22 — at least six research firms have raised their ratings on the company, according to data compiled by Bloomberg.At Wolfe Research, analyst John Janedis said in a note that ViacomCBS shares are now a buy opportunity as the media company’s valuation appeared attractive after its selloff. He also pointed to its streaming business as a potential tailwind.A similar view is also behind Deustche Bank analyst Bryan Kraft‘s decision this week to raise Discovery’s 12-month forecast to $60 from $35. The company’s improved growth outlook warrants a higher valuation, he noted. Farfetch also got a “buy” recommendation from JPMorgan analyst Doug Anmuth on Thursday, who said the stock delivers a “compelling buying opportunity.”No BargainsWhile the stocks caught at the center of the Archegos crisis are definitely hurting, they aren’t exactly cheap. Their average price-to-earnings ratio — a measure which indicates how expensive a company is — is in line with the 10-year median, which signals how high valuations had gotten before the selloff. Aside from ViacomCBS, Discovery and Farfetch, Chinese companies like GSX Techedu Inc., Tencent Music Entertainment Group, Baidu Inc., VipShop Holdings Ltd. and IQiyi Inc. were also caught in the crosshairs of Archegos.Determining whether the selloff has turned a once-overvalued stock into a good buy will require some digging, said Barry Schwartz, chief investment officer at Baskin Wealth Management.“If you’ve studied the company and you understand the business and you see this price drop as overdone, then take that opportunity to buy their shares,” Schwartz said by phone. “If you haven’t done your homework and you’re thinking this is another GameStop situation, you’re going to be the sucker at the table.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

M.D.C. Holdings, Farfetch Limited and Callaway Golf Company highlighted as Zacks Bull and Bear of the Day

Bear of the Day: Farfetch (FTCH)

(Bloomberg) — Stocks tied to the Archegos Capital Management blowup ended the session higher on Tuesday as investors brushed news that Credit Suisse Group AG unloaded more than $2 billion of the shares in the latest block trades stemming from the liquidation of Bill Hwang’s fund.ViacomCBS Inc. erased early losses and gained 3.4%, Vipshop Holdings Ltd. rose 5.8% and Farfetch Ltd. 4.7% on Tuesday after the Swiss bank was said to have unloaded shares. Credit Suisse also advanced 0.9% in U.S. trading after rising earlier in Zurich, even after the bank said it will take a 4.4 billion-franc ($4.7 billion) writedown tied to the implosion of Archegos. The S&P 500 Index fell 0.1%.Shares of companies involved in earlier block trades totaling more than $20 billion have had a rocky ride after Hwang and his private investment firm became the center of one of the biggest margin calls of all time. A basket of equally weighted shares linked to the fund has slumped more than 30% since hitting a peak on March 22, according to data compiled by Bloomberg.“The aftermath of the Archegos Capital meltdown appears to be mostly priced in,” said Edward Moya, senior market analyst at Oanda Corp. “Prime brokerages will have to deal with further regulatory reviews and greater transparency may end up being required to avoid family offices from circumventing federal security laws. The worst from the Archegos Capital blowup should be behind us.”The cascade of trading losses has reverberated from New York to Zurich to Tokyo and beyond as banks tallied their exposure to the massive unwinding of leveraged equity bets by Archegos. Last month, giant block trades were initiated by Goldman Sachs Group Inc. and Morgan Stanley after Archegos failed to meet margin calls. That left Nomura Holdings Inc. and Credit Suisse facing potentially significant losses.About 34 million shares in ViacomCBS were offered on Monday, 14 million shares of Vipshop and 11 million shares of Farfetch. That’s only a fraction of the size traded by banks at the end of March.(Updates share price moves.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

(Bloomberg) — Credit Suisse Group AG unloaded about $2.3 billion worth of stocks tied to the Archegos Capital blowup more than a week after some rivals dumped their shares and skirted losses.The Swiss bank hit the market with block trades tied to ViacomCBS Inc., Vipshop Holdings Ltd. and Farfetch Ltd., a person with knowledge of the matter said. The stocks traded substantially below where they were last month before Bill Hwang’s family office imploded.Shares in the three companies declined in postmarket trading, as did U.S.-listed shares of Credit Suisse.The Zurich-based firm has yet to provide investors with an update on the extent of the hit it faces from its relationship with Archegos, but it could run into the billions of dollars, according to people with knowledge of the matter. Credit Suisse’s investment-bank chief Brian Chin is set to leave, with his exit announced as soon as Tuesday. Leaders are also discussing removing chief risk officer Lara Warner, while sparing Chief Executive Officer Thomas Gottstein.Paul Galietto, head of equities sales and trading, meanwhile, is stepping down from that role effective immediately, though he will stay through April to assist in the transition, the bank said in a staff memo reviewed by Bloomberg.Read more: Credit Suisse’s Chin to Depart Bank Following Archegos FiascoThe unwinding of Bill Hwang’s Archegos portfolio has turned into one of the biggest fund flameouts since Long-Term Capital Management’s demise in the 1990s.Archegos had grown rapidly on the back of heavily leveraged bets. These came undone within days late last month as stocks including ViacomCBS and GSX Techedu Inc. tumbled, triggering margin calls.Read more: One of world’s greatest hidden fortunes is erased in days Credit Suisse and Nomura Holdings Inc. have told shareholders their businesses face “significant” losses. Goldman Sachs Group Inc. and Morgan Stanley, which were among the first banks to liquidate Archegos’s holdings, appear to have avoided hits to their businesses.Given Archegos’s size, banks may accrue total losses in the range of $5 billion to $10 billion as positions get unwound, JPMorgan Chase & Co. analysts led by Kian Abouhossein wrote in a note to clients last week.The Credit Suisse offering on Monday comprised about 34 million shares in ViacomCBS, 14 million shares of Vipshop and 11 million shares of Farfetch.(Updates to reflect sale starting in first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.