Re:>>> Vivendi considering relaunching GVT sale or merger with Tim

VIvendi OP Slightly today - not sure everybody saw this news I have sent yesterday...still +ve on the name, should see some OP, with few catalyst to come as Spotify IPO...

From: LAURENT CHEKROUN () At: Jul 21 2014 21:42:21
To: LAURENT CHEKROUN ()
Subject: Re:>>> Vivendi considering relaunching GVT sale or merger with Tim
Vivendi considering relaunching GVT sale or merger with Tim Brasil; Moelis could be advising 

Vivendi, the listed French media and telecom group, is understood to be considering relaunching the sale of Brazilian mobile phone operator GVT, La Lettre de L’Expansion reported, citing no source.

The French-language weekly said Vincent Bollore, chairman of the Vivendi supervisory board, made the decision previously to review options for the business, which could be either sold directly or merge with Tim Brasil, the Brazilian unit owned by Telecom Italia. Tim Brasil is also known as TIM Participacoes.

According to the publication, Vivendi is in discussions to appoint Moelis & Company as the adviser on the sale.


Source La Lettre de l'Expansion

>>> McDonald's misses by $0.04, misses on rev and comps; sees FY14 comps similar

McDonald's misses by $0.04, misses on rev and comps; sees FY14 comps similar to YTD; sees July comps negative

Reports Q2 (Jun) earnings of $1.40 per share, $0.04 worse than the Capital IQ Consensus Estimate of $1.44; revenues rose 1.4% year/year to $7.18 bln vs the $7.29 bln consensus.
  • Global comparable sales were relatively flat vs. estiamtes of +0.9%, reflecting higher average check and negative guest traffic in all major segments.
    • In the U.S., second quarter comparable sales decreased 1.5% while operating income rose 1%. Results for the quarter reflected negative comparable guest traffic amid ongoing broad-based challenges. Looking ahead, McDonald's U.S. is intent on strengthening the overall customer experience to effectively position the segment for long-term growth. Key areas of focus include service excellence, enhanced marketing, and value, core menu and breakfast daypart initiatives.
    • In Europe, comparable sales declined 1.0% and operating income was flat (decrease of 4% in constant currencies) for the second quarter. The U.K. and France delivered solid comparable sales and operating income results for the quarter. Germany's quarterly performance reflected ongoing weakness. Emphasis on compelling premium menu offers, renewed focus on core menu and value options, and the roll-out of blended ice beverages in several markets supported the quarter's performance.
    • APMEA's (Asia/Pacific, Middle East and Africa) second quarter comparable sales increased 1.1%, reflecting strong comparable sales performance in China, as well as positive performance in many other markets. Results were impacted by continued weakness in Japan. APMEA's second quarter operating income declined 2% (increase of 1% in constant currencies). Enhanced value offerings, locally-relevant product promotions, convenience initiatives and new store development were positive contributors to the segment's results.
    • "Overall, 2014 is a year of strengthening the foundational elements of our business that are critical to enabling and advancing our longer-term strategies. Heading into 2014, we acknowledged that we did not expect any material changes to the operating environment this year. As such, full year 2014 global comparable sales are expected to be relatively similar to year-to-date June performance, with July global comparable sales expected to be negative (Q3 est: +1.4%).

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: EDU -8.1%, UCTT -4.5%, ATR -2.9%, RMBS -2.6%, STFC -2.3%, CS -2.2%, POL -2%, KMB -1.8%, TRV -1.7%, HOG -1.6%, RCII -1%, VZ -1%, KO -0.9%.

Select metals/mining stocks trading lower: GDX -0.9%, GFI -0.8%, ABX -0.5%.

Other news: TEP -4.8% (announced self tender offer to purchase up to 1 mln shares, or about 9.9%, of its outstanding common stock, at a price of not less than $28 and not more than $29 per share), ITI -2.1% (announces receipt of Notice of Noncompliance with NYSE MKT Listing Standards ), TWX -0.5% (discloses bylaw amendment; removed provisions regarding stockholders' ability to cause Board to call a special meeting of stockholders), ACT -0.5% (co and Medicines360 announced FDA acceptance for filing of NDA for Levosert IUD).

Analyst comments: NILE -2% (downgraded to Mkt Perform from Outperform at William Blair), AMZN -1.6% (downgraded to Neutral from Buy at Citigroup), ARCO -1.5% (downgraded to Underweight from Neutral at HSBC Securities), STI -0.7% (downgraded to Equal Weight from Overweight at Evercore).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: SANM +11.8%, CIT +11.8%, CMG +10.6%, WWD +7.6%, STLD +7.5%, TGTX +5.4%, (also announces preliminary clinical results from its ongoing Phase I study of TG-1101 (ublituximab): 100% of CLL/SLL patients had significant nodal reduction with either a normalization of or =80% reduction in Blood Lymphocyte Count), HLX +4.8%, ARMH+4.8%, CROX +4.6%, PII +4.4%, CYS +3.7%, MOSY +3%, LMT +2.5%, CMCSA +2.2%, DPZ +2.2%, CNC +2.1%, PKG +2%, UTX +1.3%, CNI +1.1%, RF +0.5%, STT +0.4%, NFLX +0.3%, .

M&A news: GTIV +0.9% (announces receipt of acquisition proposal from Kindred Healthcare (KND)).

Select alt energy related names showing strength after German Govt issued research awards: FCEL +5%, KNDI +4.2%, PLUG +3.5%.

Select semi peers trading higher after TXN and ARMH earnings: STM +2%, AMD +1.1%, MU +0.8%.

Select oil/gas related names showing strength following strength in Crude oil market: TOT +1.3%, RDS.A +0.9%, BP +0.5%.

Other news: RSH +7.2% (still checking), FBRC +6.6% ( announces self tender offer to purchase up to one mln shares, or about 9.9%, of its outstanding common stock, at a price of not less than $28 and not more than $29 per share), SNTA +5.7% (announces advancement of Ganetespib into Phase 3 Extension of AML LI-1 study for patients with AML and High-Risk MDS; follows positive interim analysis of Phase 2 results), TGTX +5.4% (announced preliminary clinical results from ongoing Phase I study of TG-1101 (ublituximab): 100% of CLL/SLL patients had significant nodal reduction with either a normalization of or =80% reduction in Blood Lymphocyte Count), APA +4.4% (reports that Jana Partners would like APA to sell off international business), GST +3.6% (reported 43% increase in mid-year proved reserves), GPRO +2.7% (still checking), GALE +2.5% (enters into definitive agreement to license U.S. rights for Zuplenz (ondansetron) oral soluble film), RDC +2.2% (Blue Harbour Group discloses 6.5% stake in SC 13D filing; expects to continue to engage in discussions with management and the board), MM +1.3% (following Yahoo (YHOO) acquisition of mobile-analytics co Flurry; MM is a mobile advertising platform company), EVGN +1.3% (co and Marrone Bio Innovations (MBII) sign multi-year collaborative agreement; joint discovery efforts to lead to novel insect control solutions), ERIC +1.1% (chosen as sole supplier of Claro's LTE network in Costa Rica), FITB +1% (Fifth Third disclosed share repurchase agreement with Morgan Stanley),AAPL +0.9% (requested that suppliers produce 80 mln large screen iPhones, according to reports (AAPL reports tonight after the close)).

Analyst comments: AXL +1% (upgraded to Neutral from Underweight at JP Morgan), QSII +0.9% (initiated with a Buy at Topeka Capital Markets ), HBAN +0.5% (upgraded to Outperform from Mkt Perform at Keefe Bruyette)

>>> Honeywell: Aero & Defense inching to consistent growth - Oppenheimer

Honeywell: Aero & Defense inching to consistent growth - Oppenheimer

Oppenheimer notes strong margin performance across the segments and modest rev upside supported EPS upside, consistent with recent trends. Aerospace should show decent acceleration in growth for 3Q (D&S up, AM stronger), but 4Q likely positions for negative organic growth, given D&S headwind from licensing settlements in 4Q13 ($63M) and tough ATR OE comparisons (4Q13 up 14%), partially offset by easy BGA OE comparisons. At PMT, UOP also faces a tough 4Q comparison and projects down 8-10% in the final frame, but annualized growth trend remains strong (2Q14 had record orders and backlog). With strengthening trends at Advanced Materials and Process Solutions, overall PMT backlog was up 9% y-o-y; $110 tgt.

>>> Rockwell Collins beats by $0.02, misses on revs; increased mid-point of EPS

Rockwell Collins beats by $0.02, misses on revs; increased mid-point of EPS guidance; to sell its satellite communications systems

Reports Q3 (Jun) earnings of $1.19 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.17; revenues rose 11.7% year/year to $1.26 bln vs the $1.3 bln consensus; operating margin decreased 150 basis points.
  • The fiscal year 2014 outlook has been updated due to the pending sale of Datapath and to narrow the ranges from the previous financial guidance: Co increased mid-point of EPS guidance due to improved Information Management Services earnings -- sees EPS of $4.45-4.55, prior $4.40-4.55 vs. $4.51 Capital IQ Consensus Estimate. Due to the pending sale of Datapath, the Company now expects fiscal year 2014 sales for the continuing operations of the Government Systems business to be down low-single digits (previously expected to be down mid-single digits). Co sees FY14 revs of $4.90 -4.95 bln, prior $4.95-5.05 bln, may not compare to $5.04 bln Capital IQ Consensus Estimate. Total segment operating margins ~21% (From 20% to 21%);
  • The Company also announced it entered into an agreement to sell its satellite communications systems business formerly known as Datapath, which designs, manufactures and services ground-based satellite communication systems primarily for military customers. The sale is subject to customary closing conditions and is expected to close in the fourth quarter of fiscal 2014.
  • 3

>>> Mead Johnson Nutrition misses by $0.01, reports revs in-line; guides FY14 EP

Mead Johnson Nutrition misses by $0.01, reports revs in-line; guides FY14 EPS in-line

Reports Q2 (Jun) earnings of $0.88 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.89; revenues rose 5.3% year/year to $1.11 bln vs the $1.11 bln consensus.
  • The Asia segment reported sales of $575.6 million for the second quarter of 2014, up eight percent from $534.2 million in the prior-year quarter.
  • The Latin America segment reported sales of $224.4 million for the second quarter of 2014, up one percent from $223.2 million in the same period of the prior year.
  • The North America/Europe segment reported sales of $311.1 million for the second quarter of 2014, up four percent from $297.9 million in the second quarter of 2013.
Co issues in-line guidance for FY14, sees EPS of $3.65-3.72 vs. $3.70 Capital IQ Consensus Estimate.

>>> Lockheed Martin beats by $0.10, beats on revs; raises FY14 EPS, in-line, rea

Lockheed Martin beats by $0.10, beats on revs; raises FY14 EPS, in-line, reaffirms revs

Reports Q2 (Jun) earnings of $2.76 per share, $0.10 better than the Capital IQ Consensus Estimate of $2.66; revenues fell 0.9% year/year to $11.31 bln vs the $11.15 bln consensus.

Co issues in-line guidance for FY14, raises EPS to $10.85-11.15 from $10.50-10.80 vs. $10.98 Capital IQ Consensus; reaffirms FY14 revs $44.0-45.5 bln vs. $44.77 bln Capital IQ Consensus; reaffirms orders $41.5-43 bln; raises cash flow guidance to > $4.8 bln from > $4.7 bln.

>>> US Early pre-market gappers

Early pre-market gappers
Gapping up: SANM +12.2%, CMG +10.1%, RSH +7.8%, COCO +6.4%, FBRC +6%, SNTA +5.7%, ARMH +5.4%, TGTX +5.4%, HLX +4.8%, APA +4.6%, DD +4.2%, GST +3.6%, GPRO +2.9%, ACT +2.7%, NQ +2.4%, MM +1.3%, CNI +1.1%, CYS +1.1%, STLD +0.9%, NFLX +0.6%

Gapping down: UCTT -8.1%, EDU -8.0%, TEP -5.0%, RMBS -3.6%, HLF -3.3%, ATR -2.9%, STFC -2.3%, CS -2.2%, ITI -2.1%, POL -2%, AMZN -1.6%, RCII -1%, NUS -1%