Valeant will submit consents from 35% of AGN shareholders, will allow them to reach the 25% threshold even if Pershing shares are not allowed to vote because of Allergan legal challenge
PIMCO's Gross: 10 year notes are fully valued at 2.5%
- stocks, spreads, and interest rates are all fairly valued. Probably a good time to lever up in a mild way.
Relative Value / MRPT: Italian luxury
The merry-go-round in luxury/fashion continues: long Tod’s, long Prada / short S. Ferragamo
TOD IM: Eur 85.9; 1913 HK: HK$53.75 ; SFER IM: Eur 22.39
September 11, 2014
Time to set up the pairs long TOD IM, 1913 HK / short SFER IM. Trade is justified by relative value, price dislocation and mean reversion. We also re-iterate our previous rec. long Prada/short Kering. We would also set up long LVMH / short Kering on further divergence. B. Cuccineli is an absolute value short. However, we would wait for a further technical rebound to initiate a short recommendation (or vs. another long in the sector such as Moncler or Tod’s).
FULL REPORT ATTACHED
BFW 09/11 13:21 *EU SAYS CURBS ON RUSSIA ACCESS TO EU MKTS TO BE STRENGTHENED
*EU TO BAR LOANS TO 5 MAJOR STATE-OWNED RUSSIAN BANKS
2014-09-11 13:21:32.217 GMT
--JONES HAYDEN
-0- Sep/11/2014 13:21 GMT
2014-09-11 13:21:32.217 GMT
--JONES HAYDEN
-0- Sep/11/2014 13:21 GMT
Gapping down
In reaction to disappointing earnings/guidance: EOPN -28.6%, (updates guidance; announces that three customers will not be renewing contracts; names new head of sales organization ), SYMX -22.9%, DLIA -13%, FIVE -5%, RH -3.8%
Select China related names showing weakness: CAAS -8.8%, CSUN -4.7%, CGA -4.5%, MY -4.5%, VIPS -2%
Select metals/mining stocks trading lower: HMY -2.6%, MT -1.4%, SLV -1.2%, FCX -1.2%, SLW -1.1%, GOLD -0.9%, GG -0.8%, ABX -0.7%
Select oil/gas related names showing early weakness: E -2.4%, RIG -1.6%, BHP -1.6%, SSL -1.6%, STO -1.3%, TOT -1.2%
Other news: INVE -17.4% (announces proposed stock offering ), ASTM -4.4% (announces pricing of public offering of 13,725,490 shares of Common Stock at $2.55/share), NETE -3.7% (following 100%+ move higher yesterday). NBR -3.6% (hearing Activist investor may be selling shares, according to article), TEF -1.9% (still checking), TWTR -1.6% (announces $650 mln convertible unsecured senior note offering; announces amendment to revolving credit agreement)
Analyst comments: CROX -3.7% (downgraded to Neutral from Buy at Buckingham Research), M -1.8% (downgraded to Neutral from Buy at Sterne Agee)
In reaction to disappointing earnings/guidance: EOPN -28.6%, (updates guidance; announces that three customers will not be renewing contracts; names new head of sales organization ), SYMX -22.9%, DLIA -13%, FIVE -5%, RH -3.8%
Select China related names showing weakness: CAAS -8.8%, CSUN -4.7%, CGA -4.5%, MY -4.5%, VIPS -2%
Select metals/mining stocks trading lower: HMY -2.6%, MT -1.4%, SLV -1.2%, FCX -1.2%, SLW -1.1%, GOLD -0.9%, GG -0.8%, ABX -0.7%
Select oil/gas related names showing early weakness: E -2.4%, RIG -1.6%, BHP -1.6%, SSL -1.6%, STO -1.3%, TOT -1.2%
Other news: INVE -17.4% (announces proposed stock offering ), ASTM -4.4% (announces pricing of public offering of 13,725,490 shares of Common Stock at $2.55/share), NETE -3.7% (following 100%+ move higher yesterday). NBR -3.6% (hearing Activist investor may be selling shares, according to article), TEF -1.9% (still checking), TWTR -1.6% (announces $650 mln convertible unsecured senior note offering; announces amendment to revolving credit agreement)
Analyst comments: CROX -3.7% (downgraded to Neutral from Buy at Buckingham Research), M -1.8% (downgraded to Neutral from Buy at Sterne Agee)
Gapping up
In reaction to strong earnings/guidance: GRO +19.4%, JDSU +14%, (reaffirms; to Separate into Two Industry-Leading Public Companies), LULU +13.6%, SIGM +10%, LFVN +8%, WTSL +5.9%, MBUU +5.1%, BRC +3.1%, RSH +2.2%
M&A news: RAX +0.9% (cont M&A spec)
Other news: IMRS +19.7% (neurosurgical HFD rocker arm receives FDA clearance), DGLY +12.8% (to introduce 'Bullet Camera' option for FirstVU HD body camera system at IACP conference), LAND +7.7% (announces REIT Election), GOGO +5.4% (Gogo and T-Mobile (TMUS) to deliver free in-flight texting and voicemail to T-Mobile customers), RXII +4.5% (presented an update on the company's dermatology and ophthalmology franchises), PT +3.8% (still checking), FNSR +3.6% (following JDSU news/guidance), GPRO +3.3% (favorable commentary on Wednesday's Mad Money), SOL +2.1% (to supply 10MW DCR solar modules to Utility-Scale project in India), POWR +1.9% (disclosed it acquired the electrical contracting business of Apex Controls), MDVN +1.4% (FDA approves new indication for the use of XTANDI (enzalutamide) capsules for patients with metastatic castration-resistant prostate cancer), MBLY +1.4% (still checking), EXXI +1.2% (Energy XXI late spike attributed to speculation of Gulf of Mexico asset sale), GTAT +1.2% (modestly rebounding), EMC +1.2% (reports of VMW stake sale), TWX +0.9% (does not have plans for HBO spin off, 'seriously' looked at Fox (FOXA) offer, CEO said, according to reports)
Analyst comments: GPRO +3.3% (target raised to $70 from $42 at Citigroup), NES +2% (initiated with a Buy at Stifel), SEAS +1.5% (upgraded to Outperform from Neutral at Macquarie), PBR +1.3% (initiated with an Outperform at Cowen), TS +0.9% (upgraded to Overweight from Equal-Weight at Morgan Stanley), TCAP +0.7% (upgraded to Outperform from Market Perform at Wells Fargo),JLL +0.6% (upgraded to Overweight from Neutral at JP Morgan), GDP +0.6% (initiated with an Outperform at Cowen)
In reaction to strong earnings/guidance: GRO +19.4%, JDSU +14%, (reaffirms; to Separate into Two Industry-Leading Public Companies), LULU +13.6%, SIGM +10%, LFVN +8%, WTSL +5.9%, MBUU +5.1%, BRC +3.1%, RSH +2.2%
M&A news: RAX +0.9% (cont M&A spec)
Other news: IMRS +19.7% (neurosurgical HFD rocker arm receives FDA clearance), DGLY +12.8% (to introduce 'Bullet Camera' option for FirstVU HD body camera system at IACP conference), LAND +7.7% (announces REIT Election), GOGO +5.4% (Gogo and T-Mobile (TMUS) to deliver free in-flight texting and voicemail to T-Mobile customers), RXII +4.5% (presented an update on the company's dermatology and ophthalmology franchises), PT +3.8% (still checking), FNSR +3.6% (following JDSU news/guidance), GPRO +3.3% (favorable commentary on Wednesday's Mad Money), SOL +2.1% (to supply 10MW DCR solar modules to Utility-Scale project in India), POWR +1.9% (disclosed it acquired the electrical contracting business of Apex Controls), MDVN +1.4% (FDA approves new indication for the use of XTANDI (enzalutamide) capsules for patients with metastatic castration-resistant prostate cancer), MBLY +1.4% (still checking), EXXI +1.2% (Energy XXI late spike attributed to speculation of Gulf of Mexico asset sale), GTAT +1.2% (modestly rebounding), EMC +1.2% (reports of VMW stake sale), TWX +0.9% (does not have plans for HBO spin off, 'seriously' looked at Fox (FOXA) offer, CEO said, according to reports)
Analyst comments: GPRO +3.3% (target raised to $70 from $42 at Citigroup), NES +2% (initiated with a Buy at Stifel), SEAS +1.5% (upgraded to Outperform from Neutral at Macquarie), PBR +1.3% (initiated with an Outperform at Cowen), TS +0.9% (upgraded to Overweight from Equal-Weight at Morgan Stanley), TCAP +0.7% (upgraded to Outperform from Market Perform at Wells Fargo),JLL +0.6% (upgraded to Overweight from Neutral at JP Morgan), GDP +0.6% (initiated with an Outperform at Cowen)
Kroger beats by $0.01, beats on revs; raises FY15 guidance slightly
Reports Q2 (Jul) earnings of $0.70 per share, $0.01 better than the Capital IQ Consensus of $0.69; revenues rose 11.6% year/year to $25.31 bln vs the $24.92 bln consensus.
- Identical supermarket sales +4.8% ex-fuel.
- *Kroger recorded a $26 million LIFO charge during the second quarter compared to a $13 million LIFO charge in the same quarter last year. The company increased its LIFO estimate for the year to $100 million, resulting in an incremental $0.01 per diluted share charge to earnings in the second quarter. The effect of this charge is included in the company's updated guidance for 2014.
- The company's long-term net earnings per diluted share growth rate guidance remains 8 -- 11%, plus a growing dividend.
- Kroger raised its identical supermarket sales growth guidance, excluding fuel, to 3.5% to 4.25% for fiscal 2014. The previous guidance was 3.0% to 4.0%.
- Kroger continues to use cash flow from operations to maintain its current investment grade debt rating, repurchase shares, grow its dividend, and fund capital investments.
BN 09/11 12:00 Banks Fall $456 Billion Short in Liquidity Rule Race, Basel Says
Banks Fall $456 Billion Short in Liquidity Rule Race, Basel Says
2014-09-11 12:05:30.609 GMT
By Jim Brunsden
Sept. 11 (Bloomberg) -- Banks are falling short, by EU353b
($456 billion), in their race to meet global rules that force
them to hold easy-to-sell assets to survive a credit squeeze.
* The liquidity coverage ratio, set by the Basel Committee on
Banking Supervision, enters fully into force in 2019
Story Link:NSN NBQK0D6S972A<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Ben Moshinsky in Milan.
To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-09-11 12:05:30.609 GMT
By Jim Brunsden
Sept. 11 (Bloomberg) -- Banks are falling short, by EU353b
($456 billion), in their race to meet global rules that force
them to hold easy-to-sell assets to survive a credit squeeze.
* The liquidity coverage ratio, set by the Basel Committee on
Banking Supervision, enters fully into force in 2019
Story Link:NSN NBQK0D6S972A<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Ben Moshinsky in Milan.
To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Early premarket gappers
Gapping up: LULU +13.3%, JDSU +11.2%, LFVN +8%, LAND +7.7%, SIGM +6.4%, GOGO +5.1%, RSH +4.1%, PT +3.3%, GTAT +2.4%, MW +2.2%, EMC +2%, NPSP +1.9%, MBLY +1.7%, MDVN +1.6%, FNSR +1.5%, EXXI +1.2%, NBG +1.2%, TS +1%
Gapping down: EOPN -29.5%, SYMX -18.8%, DLIA -13%, INVE -11.3%, ASTM -6.1%, FIVE -5.3%, RH -2.9%, SDRL -2.7%, NBR -2.5%, TEF -1.8%, GSK -1.7%, TWTR -1.5%, SLV -1.5%, RIG -1.4%, BHP -1.4%, E -1.2%, MT -1.2%, SLW -1.1%, ABX -1.1%, TOT -1%, GOLD -0.9%, GG -0.9%, GLD -0.8%