>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
: XOOM -8.2%, (co disclosed it has been the victim of criminal fraud and expects to record a one-time charge of $30.8 mln in Q4; CFO Matt Hibbard has resigned; co also provided upside Q4 rev guidance), CMC -7.4%, EBF -1.4%

Select India related names showing weakness after weakness in Sensex overnight: IBN -3.6%, SSLT -3.1%, SSL -2.1%, INFY -1.2%, TTM -0.9%

Select oil/gas related names showing early weakness: WHX -2.4%, REXX -2.3%, OAS -2.1%, TOT -0.9%, RDS.A -0.8%, STO -0.8%

Other news: MSTX -8.5% (provided update on EPIC study enrollment and 2015 milestones: EPIC study more than one-third complete), CYBX -8.3% (announced the receipt of a decision from the Departmental Appeals Board of the Department of Health and Human Services; coverage for the treatment-resistant depression indication found to be not reasonable and necessary), CERS -7.9% (announced proposed public offering of common stock), FPRX -7.5% (announced $75 mln proposed public offering of common stock) NLSN -3.3% (CNBC to stop using ratings services from NLSN because some portion of audience is not being counted, according to reports), CEL -2.6% (still checking), ISIS -0.8% (announced appointment of Sarah Boyce as Chief Business Officer)

Analyst comments: INFN -5.3% (removed from Conviction Buy List at Goldman), KORS -2.7% (downgraded to Neutral from Outperform at Credit Suisse ), QGEN -2.1% (downgraded to Underperform from Neutral at BofA/Merrill; downgraded to Neutral from Overweight at JP Morgan), FIG -1.1% (downgraded to Neutral from Outperform at Credit Suisse), APO -0.9% (downgraded to Neutral from Outperform at Credit Suisse), GE -0.8% (downgraded to Hold from Buy at Deutsche Bank)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
: NSPR +28.2%, HLX +0.7%, IBB +0.5%

M&A related news: AOL +5.6% (Verizon (VZ) may soon consider AOL acquisition or joint venture, according to reports)

Select Airliner names showing strength: UAL +1.6%, JBLU +1.3%, HA +1.3%, DAL +0.9%.

Select metals/mining stocks trading higher: HMY +4.7%, VALE +4.1%, ACH +3.2%, CLF +2.1%, GFI +1.6%, MT +1.5%

Other news: NERV +61.5% (reported positive data showing an analog of Minerva's MIN-301 compound improves symptoms of Parkinson's Disease in primates), CYTR +28.8% (positive interim Phase 2 Aldoxorubicin results in Glioblastoma Multiforme), ABGB +9.6% (and EIG Global Energy Partners sign an agreement to jointly invest in the development of Abengoa's projects under construction), ALKS +5% (positive results from study of ALKS 5461 for treatment of major depressive disorder), TASR +3.5% (receipt of several orders for a total of 3,130 TASER X26P Smart Weapons for the LAPD), AN +3.2% (announces December 2014 reported retail new vehicle unit sales increased 12%), OPTT +3.1% (announced its Board of Directors has appointed George H. Kirby as President, CEO, and Director effective January 20, 2015), EBIX +2.9% (announces resolution of IRS audit), CANF +2.3% (announced its anticipated clinical milestones for calendar 2015), AU +2.1% (still checking), SLXP +1.6% (Carolyn Logan to retire as Chief Executive Officer), GPRO +1.4% (still checking), AAL +1.3% (submits application to U.S. Department Of Transportation to serve Tokyo's Haneda Airport from Los Angeles), VOXX +0.9% (added fourteen new Rep groups to support the distribution of the new 360º action camera)

Analyst comments: DEG +6.2% (upgraded to Buy from Neutral at BofA/Merrill), HDP +4.2% (initiated with a Buy at Goldman,initiated with an Outperform at Pacific Crest), LOCO +3.5% (upgraded to Buy from Hold at Jefferies), NEWR +1.7% (initiated with a Overweight at JP Morgan), GILD +1.2% (initiated with an Overweight at Barclays), BLOX +1.1% (upgraded to Buy from Hold at Deutsche Bank), ORCL +0.9% (upgraded to Overweight from Neutral at Piper Jaffray)

>>> 5 Risks, Like Financial Contagion, Underappreciated by Mkts: BNP

5 Risks, Like Financial Contagion, Underappreciated by Mkts: BNP

Risk of financial contagion, profit recession “probably underappreciated” by markets as attention stays on things like oil prices, Russia, Europe QE and “Grexit,” BNP Paribas strategist Gerry Fowler writes in note.
  • Permanent losses of capital could have ripple effects, “seem increasingly likely in some EM investments let alone some DM markets like Greece”
  • It’s possible U.S. earnings growth will be zero or negative this yr as global cos. experience currency/commodity volatility simultaneously
  • More important than ECB buying EU sovereigns would be whether they buy lower-quality securities and whether some core EU govts begin structural reform
  • Republicans controlling U.S. House and Senate could lead to “aggressive” austerity effort in U.S.
  • EM supply/demand imbalance: pipeline of issuance may slow while sovereign-wealth fund demand will persist; EM assets might find “dwindling stock of sellers”

(ManagerMagazin) Under Armour - the nightmare of Adidas


Faster, more aggressive, crazy - a young US sports brand is attacking the market leader Nike and Adidas. For the already battered Adidas Group Under Armour is the greatest threat.

Who wants to conquer the world, can not sleep. That sounds like the saying of a semi-strong, but Kevin Plank (42), entrepreneur and billionaire, live it. He has just flown back from Asia, he did not want to treat yourself dozing more than 90 minutes. "I can sleep when I'm dead," says Plank. "If you want to be successful, you have to work."

Pointed step he walks through his headquarters, a former detergent factory on the US East Coast port city of Baltimore. The open-plan offices are crammed with desks in the corner waiting original sealed copy for their debut. In between young people scurrying around. Almost daily, the center is a new employee. Everything is focused on growth, and everything seems a bit too tight. The clothing of the founder.
Kevin Plank wearing a black stretch shirt on his muscular torso. Previously, he dreamed of a career as a professional football today depends not only on his desk a giant world map. "We want to be number one among the global sports brands," he says. In such sentences is Plank's eyes narrow to narrow slits, his lips he contorts into a smile. The muscles stay relaxed.

18 years ago, he founded a company called Sports Under Armour ("Under Armour"), which initially sold breathable special lingerie football player. Plank conquered a highly profitable niche sports companies like Nike Show chartor Adidas Show charthad neglected.

From the highly profitable niche in the mass market

Soon, Under Armour penetrated into the mass market, has developed into a full equipment for training, fitness and ball sports. Even football boots, Americans have on offer. Colleagues and McKinsey consultants warned Plank, he should not take itself - but that spurred him all the more to. The expansion is a challenge to the entire industry.

"The brand is at war," it says in an internal presentation, illustrated with a photo of a starting fighter jets. In fact, no other company has the market recently attacked so aggressively like Under Armour. Since its IPO in 2005 increased sales and profits Plank average annual rate of 30 percent. His company is already greater than Reebok, Puma and Show chartit would soon be obsolete. The rival Adidas Show charthas recently replaced as the second strongest brand in the US Under Armour.

The Wall Street loves the company. Only in 2014 has risen more than 50 percent share. Also in the future will grow in Under Armour speed, predicts Sam Poser, an analyst of the broker Sterne Agee, and that "at least for another five years". The German rival Adidas Show chartlost in 2014 approximately 38 percent of market value and was the weakest stock in Dax 30th

Still Under Armour makes up 90 percent of the business in its home market America. Now comes the globalization simultaneously in Latin America, Asia and Europe. Rows of Plank advertises for top people from the competition, opened regional offices as soon in Munich early 2015th
"Wherever we compete," is his battle cry, "we want to hit Nike, Adidas and Reebok." The CEO has issued internally the objective to blow up sales by 2020 from three to ten billion dollars. Kevin Plank moves on the thin line between genius and megalomania. He is a gambler, who spares no risk.

Part 2: sweat and tears - and full of risk

From a young age suggested plank over the traces. He was a middling student who scuffled with other football players and dropped out of high school. However, he made it to the University of Maryland, where he studied economics and incidentally - peacefully - sold roses.

As a player of student football team Plank had to sweat such that stuck him the cotton shirt in a short time on the body. He went to New York and purchased fabrics of synthetic fibers initiated by the sweat. A tailor he was patched up into a tight shirt scraps. That was the beginning.

In the cabin, his teammates veralberten him ("but you look sexy!"). But soon they would have the same shirts. Plank got new stock and paid his circle of friends.
From the beginning, Plank went into full risk. He and his partners stressed their credit cards as far as it could. With $ 60,000 seed money, they founded in 1996 Under Armour. The business initially generated a little cash. Before long standing Under Armour bankruptcy. In his distress Plank took a bold plan.

On a Friday in early summer 1996, shortly Ago 14 clock, he entered his bank and took off all that was left to him 1600 dollars. With the money Plank went to Atlantic City in a casino to play blackjack. 3000 dollars, so calculated the Americans, he would be able to save his company. At first everything went well, too well. The 3000 dollar threshold was long passed since Plank played in a frenzy. He gambled on - and lost at the end of everything.

Supplier for high schools and universities

Devastated, Plank returned. Under Armour was already dead before the brand was even born right? At home waiting for him salvation. In mailbox Plank was a check for $ 6,000. A customer had paid the first big order. The money secured Planks company's existence.

With the help of friends and colleagues Football upgraded Plank from more and more high schools and universities. The competition was did the overdue expansion hidden for long. Plank acted normal, his office was in the basement of the house of his grandmother.
At the same Plank was a master to present itself larger than it actually was. As a major importer from Japan announced Plank hired a group of friends who stationed themselves on computers and bustle feigned. The customer was impressed - and did not enter into a cooperation. Today, Japan is Under Armour's most important foreign market with nearly 300 million dollars in sales.

Part 3: Planks coup Dick's Sporting Goods

However Planks probably greatest coup was a cooperation with the US sporting goods dealer Dick's, the founder had all the freedom, as long as it reliably delivered novelties. Plank convinced by small, smart innovations. Time, he designed jackets with magnetic zipper, machine washable sneakers times. Plank and his partner helped each other grow. Dick's Sporting Goods is one of the biggest sports retailer in the world.

Compared to its rivals sought Plank, however, the confrontation. Phil Knight (76), the founder of the world's market leader Nike Show chart, Plank delighted every year with a Christmas card. "Dear Phil," was it, mutatis mutandis, to read, "You will hear from me."

To date, Under Armour does everything to torment its competitors. As to the Adidas sponsorship deal with Manchester United Football Club Show chartcourted, Plank increased with. At the end of Adidas received the contract because the Germans offered a record sum of nearly a billion euros for the ten-year contract. Plank had managed to drive the price up. Adidas meet "irrational decisions," he blasphemes. "It is irresponsible to pay such a high price for an asset."
Long Nike and Adidas have underestimated the informer from Baltimore. "It would have Under Armour can stop only if you would have bought the brand in time," said Bill McDermott, CEO of SAP Show chart, sitting at Under Armour in the Supervisory Board. "Now they are too big."

Buzz around the brand - and an extremely high market value

The triumph of Plank troupe takes on sinister proportions. On the stock market is worth Under Armour already close to 15 billion dollars. The Americans this year will generate only one-sixth of the Adidas turnover and a quarter of its operating profit.

Under Armour can meet the high expectations at all? Or is the hype about the brand completely over the top?

Planks dream to replace Nike as the market leader, will not meet on the fly. Maintained its pace of growth in both groups, then Under Armour would the current number one at the earliest in 2028 overhauled. Even Possible a small miracle.

Even Nike has a clear size advantage over the attacker. The marketing budget of the industry leader is ten times higher than the advertising expenditure Under Armour. And Plank is doomed to growth. The CEO already went to the limit as he the 2011 Premier League club Tottenham Hotspur took them under contract. The global success of Under Armour must first work out yet.
The brand is very American. Your martial appearance reminds some Europeans to the "Rambo" films of the 80s. In the US Under Armour sends its own TV show, which includes senior managers in camouflage clothing on big game hunting.

Part 4: Planks new battle plan - and a foray abroad

On the coffee table in front of Plank's office is a picture book about the war in Iraq ("This is our war"). Plank is a patriot and proud that its board a former four-star admiral belongs: Eric Olson led elite troops in the war on terror. Something is well received in America. But abroad?

First attempts to expand into Europe have failed. Plank sent 2,006 North Americans across the Atlantic, who knew little about the characteristics of markets such as Germany, England and France. Under Armour entangled in a network of distribution partners. A supplier contract with the Bundesliga club Hannover 96 ended in disaster. Striker Mike Hanke publicly announced that he would rather play in Adidas shoes again.

Now Plank has changed his game plan. He also familiar to ex-Admiral Olson. He has advised him: "If your card does not match the terrain, forget the map and sink into the ground." Now Plank dares a new foray abroad, with an adapted strategy and knowledgeable local people.
First, he sought an experienced point man for the international markets - and came across Karl-Heinz Maurath (53). The German led for many years the Latin American business rival of Adidas with great success: Under Mauraths guide the brand grew with the three stripes for nine years by an average of just over 25 percent.

Large markets, large cities, large customers

Two years worked Plank native of Baden. Höchstpersönlich he flew by private jet to Panama to move to South America Manager for a change. As so often sat Plank his will by the end.

On the morning of October 30, 2014 a sunny autumn day, Plank meets his foreign editor at the Sagamore Farm in Baltimore. The good 200 acre stud farm Plank serves as a refuge for particularly important meetings. "Is there good content?" He asks scarce. And Maurath explains how he wants to develop Under Armour global brand.

"We focus on large markets, large cities and large customers," says the manager. As a first step Maurath opened a representative office in Latin America, also 70 outlets in Brazil. A further 200 stores will be added soon. In addition, it provides a great deal in marketing prospect, "by one of the biggest football clubs in Latin America".
New top managers to adapt the brand to local needs, including Erick Haskell, who has spent years in charge of the markets in China and India for Adidas. European head Chris Bate, formerly Product Manager at Puma sports shoe and later director at Nike in Europe.

Part 5: Initial success reboot

The first successes of the restart are already indicated. After eight years of losses in Europe Under Armour writes in 2014 there is a black zero. China is already making good profits.

Maurath wants to grow profitably. By 2020 Under Armour aims to generate 30 percent of its revenues outside of North America. Thus, the ex-manager Adidas slowed the expectations of his boss. Plank wanted to blow up the foreign share quickly to 50 percent.

The founder practicing now for once in modesty. But he is already thinking about the next big thing after. And this has to do with himself - as at the beginning of Under Armour, as Plank was sweating under his Football tanks.
More than sweatshirts and sneakers

Plank feel uncool if he has to wear a suit and tie. "I'm not thrilled with this business suits," he laments, "they are uncomfortable, not stretchy and need to be dry cleaned." His vision: One day could supply you with its materials Under Armour large textile companies. An Armani suit, which contains 30 per cent Under Armour? Why not?

Already dreaming Plank them to turn into a kind of Under Armour Apple the sports industry. With clothes full of digital technology. Some time ago he had to shoot a futuristic commercial: A young woman stroking her sleeve - and so changes the color and temperature of the clothes.

"Our company does more than just make sweatshirts and sneakers," said Plank. What he actually says so: I can do anything. Except sleep.

>>> Coach Makes Splash with Stuart Weitzman Acquisition

Coach Makes Splash with Stuart Weitzman Acquisition

COH +1.3% Pre-Market

Specialty retailer Coach (COH 36.73) splashed down in 2014 as its stock declined 33% on the back of some disappointing operating results. The company, however, is starting 2015 with a splash as it announced today that it will acquire designer footwear brand Stuart Weitzman from Sycamore Partners in a transaction valued at up to $574 million in cash.

The addition of Stuart Weitzman, which has operations in over 70 countries, is part of Coach's effort to revamp its brand and will serve as a complement to its premium handbags and accessories businesses.

In the twelve-month period ended September 30, 2014, Stuart Weitzman realized net revenues of approximately $300 million. Coach for its part reported FY14 revenues of $4.8 billion.

Following its fiscal first quarter report in October, Coach said its FY15 outlook calls for a low double-digit decline in sales, a mid-to-high 20s decline in North American same-store sales, gross margins of 69-70%, and an operating margin in the high teens.

The Stuart Weitzman acquisition, Coach said, is expected to be immediately accretive to earnings, excluding transaction costs. The deal is expected to close by May 2015.

Coach will make initial payments of approximately $530 million and contingent payments up to $44 million upon the successful achievement of selected revenue targets over the three years following the close of the transaction.

Coach ended its fiscal fist quarter (Sep) with just over $900 million in cash and short-term investments on its balance sheet. The company said it will finance the Stuart Weitzman purchase with cash on hand or other sources of financing in the credit and capital markets
.

>>> Monster Beverage (MNST) : Monster Beverage: Strong prospects for fast-growin

Monster Beverage: Strong prospects for fast-growing beverage company; initiated with a Buy at Argus; tgt $145

Argus initiates MNST with a Buy and price target of $145 as the co has an impressive history of growth, with five-year compound annual sales and EPS growth rates in the 13-15% range. Looking ahead, firm expects co to sustain its growth in the U.S. and to increase international sales and margins. Co should also benefit from a transformative transaction with Coca-Cola Corp. (KO). Co's balance sheet is clean. Co's valuations are on the rich side, but firm believes that the stock deserves a premium given co's growth history and outlook.

>>> Nokia: Oppenheimer expects Nokia to report a strong 4Q14, yet potentially is

Nokia: Oppenheimer expects Nokia to report a strong 4Q14, yet potentially issue disappointing 1Q15 guidance

Oppenheimer expects Nokia to report a strong 4Q14, yet potentially issue disappointing 1Q15 guidance. Their checks suggest that many of the positive 3Q14 trends have carried through into 4Q14, including strong wireless carrier spending in China and the US for Networks, as well as solid seasonal auto sales driving HERE. Their 1Q15 concern is with wireless carrier spending, which they believe could see a slower than usual season start in 2015. The Networks moderation could make for top-line and gross margin downside, while the potential catalyst from Samsung (SSNLF) arbitration results may not come until later in 2015. Put together they're wary of near-term downside to the shares, although their long-term thesis remains unchanged.

>>> Early premarket gappers

Early premarket gappers
Gapping up: NERV +65.8%, NSPR +28.2%, CYTR +15.1%, FRO +9.4%, ABGB +7.6%, AOL +6.6%, LOCO +4%, HMY +3.3%, OPTT +3.1%, SAND +1.9%, ING +1.8%, SLXP +1.6%, VALE +1.6%, AU +1.4%, GPRO +1.2%, VOXX +0.9%, CLF +0.9%, ISIS +0.7%, ISIS +0.7%, HLX +0.7%

Gapping down: CYBX -8.3%, CERS -7.9%, XOOM -7.8%, FPRX -7.5%, MSTX -5.1%, CEL -3.8%, PTNR -3.5%, IBN -3.2%, SSLT -3.1%, SSL -2.9%, KORS -2.3%, QGEN -2.3%, OAS -2.1%, PBR -2%, ARMH -2%, REXX -1.9%, DEO -1.9%, BCS -1.6%, ASML -1.5%, EBF -1.4%, RDS.A -1.3%, CGEN -1.2%, STO -1.2%, RYAAY -1.1%