>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: EHTH -32.1%, QUIK -19.6%, ATEN -18.8%, CLUB -14.2%, CODE -13%, AVG -8.4%, MTW -8.3%, GLUU -8.1%, (also plans to acquire Cie Games for ~ $100 mln; co anticipates the transaction being earnings accretive from its first quarter of consolidation), TTEK -7.1%, (light volume), ALU -7%, TGB -6.8%, (light volume), AKAM -6.5%,ANIK -6.5%, PVA -6.5%, (Penn Virginia announces the sale of Eagle Ford Oil gathering and intermediate transportation rights for $150 mln), FEIC -5.9%, (light volume), NOW -5.8%, SMSI -5.4%, (thinly traded), WSTL -5%, CAVM -4.8%, OCN -4.8%, (light volume), ENTR -4.2%, (light volume), RNWK -4%, (also appoints Rob Glaser to be permanent CEO), CTRP -3.9%, WFM -3.7%, (downgraded to Neutral from Buy at UBS; downgraded to Neutral from Overweight at JP Morgan ), SZYM -3.5%, (also Solazyme and AkzoNobel expand partnership in surface chemistry), YELP -3.4%, WDC -3%, HIG -2.7%, VECO -2.2%, MET -1.9%, TGI -1.9%, EXL -1.8%, (light volume), TEF -1.7%, PEIX -1.6%, LRCX -1.5%, ISIL -1.5%, EPD -1.4%, (light volume), KRFT -1.3%, (also downgraded to Hold from Buy at Deutsche Bank), WTW -1.2%, K -1.1%, (light volume), CNL -0.9%, (and following late spike on reports that Iberdrola (IBDRY) may bid for CNL), ABX -0.9%, (light volume), CACC -0.7%, (thinly traded), AZN -0.3%, DTV -0.3%.

M&A news: AHL -2.7% (Endurance terminates offer to acquire Aspen).

Select financial related names showing weakness: DB -2.7%, ING -2.7%, NBG -2.7%, CS -2.3%, SAN -1.8%.

Select telecom stocks trading lower: PT -4.5%, VOD -1.9%.

Select Argentina names lower following S&P news: BMA -4.5% BFR -3.4%, PAM -1.9% YPF -1.3%

Other news: PERI -8.6% (still checking), YUM -6.2% ( confirms it terminated its relationship with OSI ), MU -6.2% (following SSNLF results; also Tessera Tech and Micron Technology announce execution of new technology and patent license agreements), QIHU -5.1% ( announces offering of $900 mln convertible senior notes due 2020), CNHI -3.3% (on MTW results), RPT -2.2% (commences public offering of 5.25 mln newly issued common shares of beneficial interest ), NOK -1.7% (following ALU results; also Nokia Networks to buy part of Panasonic's (PCRFY) wireless network business), AAPL -1.4% (still checking), TSN -1.4% (announces pricing of of 23.81 mln shares of its Class A common stock at $37.80/share and 30 mln of its 4.75% tangible equity units),MANU -1.3% (announces offering of 8 mln Class A ordinary shares by the selling shareholder), STX -1% (following WDC results), AMZN -0.7% (plans to expand into local services, according to reports ), TSLA -0.7% (Tesla Motors and Panasonic confirmed agreement for the Gigafactory), GPRO -0.6% (following yesterday's 5% move higher), MCD -0.3% (following YUM update).

Analyst comments: HOG -1.5% (Harley-Davidson downgraded to Hold from Buy at Argus), QCOM -1.1% (downgraded to Mkt Perform from Outperform at Bernstein ), UN -0.3% (Unilever downgraded to Neutral from Buy at Goldman)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: VPRT +20.9%, MOBL +15.3%, OTEX +12.3%, LPSN +11.2%, HK +7.6%, ARII +7.5%, FOE +6.9%, (light volume), MC +5.6%, (light volume), LOCK +5.6%, SPRT +5.5%, (light volume), DRII +5%, (light volume), SFY +4.8%, COHU +4.6%, TMUS +4.4%, AVP +4.4%, SAM +4.3%, (light volume), HOLX +4%, RKUS +3.7%, BMRN +3.6%, (also sells priority review voucher for $67.5 mln), RDS.A +2.9%, ALL +2.7%, SU +2.7%, (light volume), SNE +2.7%, SNY +2.7%, NEWP +2.3%, ICAD +2.2%, (thinly traded), IPI +2%, (light volume), ITT +1.7%, (light volume), EQIX +1.5%, STMP +1.4%, (light volume), CYTK +1.4%, (light volume), SFLY +1.1%, WLL +1%, CI +1%, MTGE +0.8%, PPL +0.8%, (light volume), COP +0.7%, DEO+0.4%.

M&A news: JRN +5.9% (Scripps, Journal merging broadcast operations, spinning off newspapers).

Other news: EVRY +31.9% (amends credit agreements; announces $20 mln equity investment by Monomoy), TSRA +12.1% (Tessera Tech and Micron Technology announce execution of new technology and patent license agreements), APAGF +7.3% (provides Colombia operations update; says it has successfully completed its Llanos basin exploration drilling program for 2014 and extended production tests and development activities are underway), CMCM +4.3% (Cheetah Mobile and Tencent to Expand Strategic Cooperation Agreement; annual caps have been increased to RMB100 million and RMB105 million), ZIXI +3.2% (approved a share repurchase program that enables the co to purchase up to $10 mln of its shares of common stock), SA +2.9% (KSM Environmental Assessment Application Receives Final Approval from British Columbia), HNSN +2.5% (announces distribution agreement with Adachi for Magellan and Sensei robotic systems in Japan), CBOE +2.3% ( increases quarterly dividend 17% to $0.21 per share from $0.18 per share; increases stock repurchase authorization by $100 mln), LOCO +2% (recent IPO -- conintued volatility), RFMD +1.6% (still checking), RRD +1.3% (positive MadMoney mention), KNDI +0.9% (still checking), DDD +0.5% (to acquire Simbionix for $120 mln in cash; expected to be immediately accretive to cash generation and non-GAAP EPS) .

Analyst comments: CLF +0.3% (upgraded to Market Perform from Underperform at Bernstein ), BWLD +0.2% (upgraded to Buy from Neutral at Sterne Agee), SODA +0.1% (upgraded to Equal Weight from Underweight at Barclays)

>>> US Early premarket gappers

Early premarket gappers
Gapping up: EVRY +31.9%, VPRT +16.6%, MOBL +14.1%, TSRA +12.1%, LPSN +11.2%, OTEX +10.4%, APAGF +7.3%, FOE +6.9%, MC +5.6%, SPRT +5.5%, DRII +5%, COHU +4.6%, HOLX +4%, RKUS +3.7%, BMRN +3.6%, LOCK +3.5%, ZIXI +3.2%, RDS.A +2.9%, ALL +2.7%, HK +2.6%, HNSN +2.5%, CBOE +2.3%, NEWP +2.3%, ICAD +2.2%, IPI +2%, SAM +1.9%,RFMD +1.6%, EQIX +1.5%, STMP +1.4%, CYTK +1.4%, SFLY +1.1%, WLL +1%

Gapping down: EDAP -41.5%, EHTH -27.3%, QUIK -19.6%, ATEN -18.8%, GEVO -14.3%, CLUB -14.2%, CODE -11.8%, GLUU -10.1%, AVG -8.4%, MTW -8.3%, TTEK -7.1%, TGB -6.8%, PT -6.6%, AKAM -6.5%, ANIK -6.5%, PVA -6.5%, YUM -6.2%, FEIC -5.9%, NOW -5.8%, SMSI -5.4%, QIHU -5.1%, WSTL -5%, CAVM -4.8%, ENTR -4.2%, RNWK -4%, CTRP -3.9%, WDC -3.6%,SZYM -3.5%, BFR -3.4%, YELP -3.4%, RPT -2.7%, AHL -2.7%, DB -2.7%, ING -2.7%, HIG -2.7%, WFM -2.6%, CS -2.3%, VECO -2.2%, VOD -1.9%, MET -1.9%, TGI -1.9%, SAN -1.8%, EXL -1.8%, NOK -1.7%, PEIX -1.6%, LRCX -1.5%, ISIL -1.5%, AAPL -1.4%, MANU -1.3%, YPF -1.3%, KRFT -1.3%, STX -1%

(BFW) Lloyds Says Swiss Unit May Have Had Undeclared U.S. Clients

Lloyds Says Swiss Unit May Have Had Undeclared U.S. Clients
2014-07-31 10:44:10.384 GMT


By Giles Broom
July 31 (Bloomberg) -- Lloyds taking part in U.S. Justice
Department disclosure program for Swiss banks, company says in
half-year statement today.
* Co. is completing due diligence under terms of the program
regarding Swiss operations it sold last yr
* Outcome uncertain of participation in program, including
timing and scale of potential fine
* Co. “believes it has operated in full compliance with all
U.S. federal tax laws”
* NOTE: 106 Swiss banks entered program that requires banks to
disclose how they helped Americans hide assets and pay
penalties
* NOTE: Lloyds sold Swiss private bank to Union Bancaire
Privee last yr


For Related News and Information:
Swiss Banks Send U.S. Client Data Before Cascade of Settlements
NSN N9KF066JIJUQ<GO>
Lloyds Sells International Private Banking Business to UBP
NSN MNKHR96S9736<GO>
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Giles Broom in Geneva at +41-22-317-9212 or
gbroom@bloomberg.net
To contact the editors responsible for this story:
Mark Bentley at +49-699-204-1262 or
mbentley3@bloomberg.net
Simone Meier, Jon Menon

(DB) Adidas - Huge profit warning; EPS guidance

Huge profit warning; EPS guidance cut by c25%
(PDF ATTACHED)

FY14 guidance cut from EUR830-930m to around EZR650m
Adidas just issued a huge profit warning: net income guidance was cut to EUR650m (implying EPS EUR3.11 undiluted), vs. a guidance range before of EUR830-930, i.e. a 26% cut vs. guidance mid-point. DBe is EUR835m, cons 839, i.e. new guidance is some 22% below market expectations. The latter could be indication for the short-term downside of the share price. 

Reasons for the warning
* ”poor retail sentiment and the slow liquidation of old inventory in the golf category”; adidas to begin a restructuring program at TaylorMade (remember that Taylormade’s CEO was promoted to the CEO of the group’s Americas region lately)

* ”recent trend change in the Russian rouble as well as increasing risks to consumer sentiment and consumer spending from current tensions in the region”; store opening plan massively cut, store closures instead; remember that we estimate that Russia is some 14% of group EBIT, so this is really bad news; Russia might well turn into a major problem for them (store closures are costly)

* ”Management has decided to step up marketing and point-of-sale investments over the next 18 months to secure and drive faster growth rates and market share gains, particularly in the developed markets such as North America and Western Europe”; this is not to drive faster growth in our view, but they defend themselves against Nike which has become much more aggressive as of late; remember: Nike’s marketing spending was up 36% (!) in the May quarter

* ”Management has completed an in-depth review of the Global Brands and Global Sales structures”; new organizational structure to take effect 1 August 2014; details still need to be clarified, but this reorganization might also result in extra costs

SUMMING UP 
We think the warning shows under how much pressure adidas currently sees itself; we find the warning alarming. With a new EPS guidance of just above EUR3, adidas trading on the same levels which it has traded on over recent weeks (at FY14 P/E of 18-20x) could result in massive short-term downside risk for the share price. We will follow up with a detailed note in due course.