>>> YHOO - Holder Starboard issues letter with regard to media reports on potent

Holder Starboard issues letter with regard to media reports on potential large scale acquisition; reiterates call for Yahoo to explore combination with AOL 

- However, we have recently become increasingly concerned due to the growing number of media reports indicating Yahoo's interest in doing large-scale acquisitions. The latest reports speculate that Yahoo may be considering an acquisition of cable assets including Scripps Networks Interactive and Time Warner's CNN. Our concerns that these media reports may have some truth are exacerbated as it has now been more than sixty days since the IPO of Alibaba, and Yahoo is now free to disclose its intentions with regard to its shares of Alibaba. However, to date, no announcement has been made regarding Yahoo's plans for a tax-efficient separation of its non-core minority equity interests. 

- On a related note, within the past week, new speculation has emerged that Yahoo is considering a cash-rich split-off as a structure to separate its non-core minority equity interests. The resurfacing of rumors about a cash rich split-off at this juncture is particularly troubling given your acknowledgment at our meeting with you on October 27th that this option would be clearly inferior to a spin-off structure or other available alternatives to unlock the full value of the stakes in Alibaba and Yahoo Japan. As we have repeatedly explained, we believe a cash-rich split-off to separate Yahoo's non-core minority equity interests has serious shortcomings

- Further, we continue to believe that Yahoo must significantly reduce costs to improve profitability in its core business and should be considering a combination with AOL. A combination with AOL, structured properly, could accomplish all of these goals by allowing for: (i) a tax-efficient separation of the non-core minority equity investments; (ii) tremendous cost synergies of between $1 billion and $1.5 billion; and (iii) a strong growth platform given AOL's progress in mobile and video advertising.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance/SSS: MG +16%, EXFO +9.1%, (also announces issuer bid to purchase for cancellation up to 7,142,857 subordinate voting shares for an aggregate purchase price not to exceed C$30,000,000), PIR +8.5%, CONN +7.6%, RECN +6.8%, URBN +6%, GPN +5.8%, SMRT +5%, ISIS +4.5%, ZUMZ +3.3%, (reports Dec same store sales +8.0% vs +3.9% Retail Metrics consensus; raises Q4 EPS and revs guidance), CATO +2.8%, GALE +2%, PCRX +1.5%, COST +0.5%

Select oil/gas related names showing strength: PBR +3.1%, SDRL +2.3%, TOT +1.9%, BP +1.7%, STO +1.3%, RIG +1.1%, HAL +0.9%

Other news: BIND +49.5% (provides clinical update for BIND-014 and 2015 Strategic Overview; Achieved development milestone as part of the Pfizer collaboration), BIOD +42.1% ( announces positive preliminary results from Study 3-151; data demonstrate That BIOD-531 provides superior glucose control compared to Humalog Mix 75/25 and Humulin(R) R U-500), ACUR +23.2% (partners with Egalet (EGLT) to commercialize immediate release oxycodone product utilizing acura's aversion), CYRN +19.8% (announced that Reliable Networks is the latest UK reseller under distributor VCW Security to offer the cloud-based CYREN WebSecurity solution), NRX +16.7% (has received positive Scientific Advice from the EMA regarding its Phase 3 program with Pyridorin in diabetic nephropathy that has been accepted by the FDA under a Special Protocol Assessment ), STXS +16.3% (co and and Tucson Medical Center announced that they have teamed up to bring the first Stereotaxis Vdrive robotic navigation system with V-Loop variable loop catheter manipulator to the U.S.), VLCCF +14.5% (announced entry into an agreement with RWE Supply & Trading for chartering out a total of 15 Capesize vessels on long term contracts), PLX +9.6% (reports positive interim data from Phase I/II clinical trial of PRX-102 for the treatment of fabry disease), FOLD +8.7% (announces positive Phase 3 data on cardiac endpoints from Fabry Monotherapy study 011 and long term extension study), MNKD +6.2% (earns $50 mln in milestone payments from Sanofi (SNY) ), S +4.7% (reports key preliminary customer results for Q3 including total net additions of nearly 1 mln ), COSI +4.2% (cont strenght follow yday's run up, positive Dec comps), HABT +4.1% ( announces international franchise agreement with Food Quest), RARE +4.1% ( announces license of intellectual property related to the treatment of Huntington's Disease with Triheptanoin ),MERU +3.1% (Vertex Special Opportunities Fund files amended 13D; Believe retention of Deutsche Bank was a step in the right direction), KNDI +2.5% (eer Geely reported sales update; Dec sales volume reached 54,962 units, sales volume down 10% yoy), NVS +2.1% (announces robust Phase III results for QVA149 and NVA237 and submits regulatory applications to FDA), GSK +2.1% (may be trading higher in sympathy with peers), BIIB +2.1% ( postive top-line results from Phase 2 Anti-LINGO-1 trial in people with acute optic neuritis), HRB +1.9% (favorable commentary on Wednesday's Mad Money), SUNE +1.9% (purchases new turbines that will enable it to develop up to 1.6 gigawatts of incremental wind energy projects which qualify for the U.S. federal production tax credit), BALT +1.4% (enters into new $148 mln credit facility; Co has taken delivery of the Baltic Wasp)

Analyst comments: WEN +2.4% (upgraded to Equal-Weight from Underweight at Morgan Stanley), BSX +2.1% (upgraded to Outperform from Mkt Perform at Leerink Partners), ALU +1.8% (upgraded to Outperform from Neutral at Credit Suisse), GBX +1.6% (upgraded to Buy from Hold at Stifel), CMI +1.5% (upgraded to Buy from Neutral at BofA/Merrill ), ZU +1.4% (initiated with a Buy at Stifel), OCR +1.3% (upgraded to Overweight from Equal Weight at Barclays), BAC +1.1% (initiated with an Outperform at Credit Suisse), JPM +0.9% (initiated with an Outperform at Credit Suisse), WFC +0.8% (initiated with an Outperform at Credit Suisse), RIO +0.7% (upgraded to Sector Perform at CIBC)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: PODD -7.9%, APOL -5.8%, WDFC -5.7%, BWEN -4.4%, PKE -3%, SIG -1.9%, LB -1.4%, FDO -0.5%

Other news: INFI -11.2% (reports topline results from Phase 2 study of Duvelisib in rheumatoid arthritis; study did not meet primary endpoint), GWPH -7.8% (and Otsuka announce results in first of three Sativex Phase 3 cancer pain trials; primary endpoint did not show a statistically significant difference for Sativex compared with placebo in reducing pain), NBG -6.2% (still checking),AFSI -4.6% (announces the commencement of public offering of 3 mln shares common stock), STML -4.3% (in-licenses novel oral small molecule nuclear transport inhibitor targeting XPO1; Announces Proposed Public Offering of Common Stock; size not disclosed), ALXN -3.7% (reports results from its randomized, open-label, multicenter Phase 2 clinical trial to determine the safety and efficacy of eculizumab in the prevention of antibody mediated rejection), PT -3.5% (still checking), MPW -3.4% (commenced an offering to sell 30 million shares of its common stock in an underwritten public offering ), ARNA -3.1% (modest pullback following yday's 65% gain), SAN -2.5% (Bloomberg TV reporting sources believe Spanish bank considering adding capital, potentially in the multi-billion range), CTRP -1.5% (still checking but may be related to peers PCLN and TRIP dg's), CEMP -0.9% (prices 5.25 shares of common stock at $24.50 per share.

Analyst comments: GPRO -1.9% (cautious tone from Oppenheimer post CES), SAP -1.4% (downgraded to Neutral from Buy at UBS), PCLN -0.9% (downgraded to Hold from Buy at Stifel), NGD -0.8% (downgraded to Sell at ROTH Capital ), COG -0.6% (downgraded to Neutral from Buy at Citigroup), LDOS -0.6% (downgraded to Underweight from Neutral at JP Morgan ), BJRI -0.5% (downgraded to Underweight from Equal-Weight at Morgan Stanley
)

>>> Yahoo achieves highest US search share since 2009

Yahoo achieves highest US search share since 2009
  • Google at lowest US share yet recorded by StatCounter Global Stats
  • Mozilla move to make Yahoo the default on Firefox has early impact on search engine battle
San Francisco, CA & Dublin, Ireland; Wednesday 7th January 2015:In December Yahoo achieved its highest US search share for over five years according to the latest data from StatCounter, the independent website analytics provider. Google fell to the lowest monthly share yet recorded by the company*. These December stats coincide with Mozilla making Yahoo the default search engine for Firefox 34 users in the US.
StatCounter Global Stats reports that in December Google took 75.2% of US search referrals followed by Bing on 12.5% and Yahoo on 10.4%.
As previously announced by Yahoo, December marked the start of its partnership with Mozilla. Yahoo is now the default search experience for Firefox 34 in the US, bringing an end to Mozilla's 10-year relationship with Google.
"The move by Mozilla has had a definite impact on US search," commented Aodhan Cullen, CEO, StatCounter. "The question now is whether Firefox users switch back to Google." Firefox users represented just over 12% of US internet usage in December according to StatCounter.
StatCounter (www.statcounter.com) provides independent website analytics, including a free option, to companies, agencies, bloggers, self-employed, charities and those who want to measure activity on their website, blog or forum. Key features include ease of use, independence and ability to view individual visitors in real time.
Last July, StatCounter announced a new feature in response to Google's removal of keyword data. By integrating Google Webmaster Tools (GWT) data into its reports, StatCounter has given its members the ability to access all available keyword intelligence which they can slice and dice all within their StatCounter account.
StatCounter Global Stats data is based on over 15 billion page views per month to over three million websites.

>>> Constellation Brands beats by $0.09, beats on revs; raises FY15 EPS guidance

Constellation Brands beats by $0.09, beats on revs; raises FY15 EPS guidance above consensus driven by strong beer business shipment volume

Reports Q3 (Nov) earnings of $1.23 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $1.14; revenues rose 6.9% year/year to $1.54 bln vs the $1.51 bln consensus.
  • Co raises guidance for FY15, sees EPS of $4.25-4.35, excluding non-recurring items, vs. $4.24 Capital IQ Consensus Estimate, up from $4.10-4.25.
  • Reaffirms free cash flow projection of $275 - $350 million for fiscal 2015 including operating cash flow target of at least $1 billion and total capital expenditure estimate of $725 - $775 million.
  • "Our beer business continued to gain share across all channels during the third quarter driven by Modelo Especial, Corona Extra and Modelo Especial Chelada."
  • "Our outstanding beer portfolio is experiencing tremendous momentum and generated the vast majority of total U.S. industry volume growth in IRI channels during the quarter."

>>> US Early premarket gappers

Early premarket gappers
Gapping up: BIND +39.8%, BIOD +39.3%, CYRN +26.6%, NRX +19%, MG +16%, ACUR +10.9%, VLCCF +9.6%, STXS +9.4%, EXFO +9.1%, RECN +6.8%, RARE +6.4%, SDRL +3.5%, PBR +3.5%, ISIS +3.5%, ZUMZ +3.3%, MERU +3.1%, STML +2.9%, CATO +2.8%, BLOX +2.4%, ALU +2.4%, GPN +2.2%, VOD +2%, NVS +1.9%, TWTR +1.9%, TOT +1.9%, YNDX +1.9%,VALE +1.9%, HABT +1.8%, BP +1.8%, WEN +1.8%, STO +1.8%, GSK +1.8%, RIG +1.7%, BAC +1.5%, BALT +1.4%, TSLA +1.4%, SAN +1.3%, BHP +1.2%, HAL +1.2%

Gapping down: INFI -14.3%, PODD -7.9%, ARNA -7%, WDFC -5.7%, NBG -5.6%, ALXN -5.3%, PT -3.5%, MPW -3.4%, AFSI -1.9%, SAP -1.2%, FDO -1.1%, SLV -1%, ALV -0.8%, SNN -0.7%,