>>> Cyber security names near morning highs -- FEYE +6%, PFPT +3.6%, PANW +3.3%,

Cyber security names near morning highs -- FEYE +6%, PFPT +3.6%, PANW +3.3%, IMPV +2.6%, FTNT +1.3%, SYMC +0.7%, CTXS +0.4%, CHKP +0.2%
Sector strength follows several Goldman ratings/target changes before the open
PANW +3.3% assumed with a Buy at Goldman tgt $97 and added to Conviction Buy list; FEYE +6% assumed with a Buy from Neutral at Goldman; tgt $42
FTNT +1.3% initiated with a Neutral at Goldman tgt $26; CHKP +0.2% / LOCK assumed with a Neutral at Goldman; SYMC +0.7% assumed with a Neutral at Goldman tgt $23

From: LAURENT CHEKROUN ()
Subject: Fwd:(GS) Tailwinds put Security in the spotlight; Buy PANW (CL), FEYE; initiate on P
Tailwinds put Security in the spotlight; Buy PANW (CL), FEYE; initiate on PFPT (Buy), FTNT

* Why we are Bullish on Security stocks
We assume coverage of Security Software with an
Attractive coverage view, given several tailwinds
that we believe put Security in the spotlight.
These include: (1) an evolving cyber threat
landscape producing larger and more costly data
breaches; as a result of this (and a potential
firewall refresh), enterprises are reviewing, and in
many cases, increasing Security spend to avoid
significant financial/reputational damage in the
event of a breach, (2) a number of factors that are
supportive of increased M&A and capital
allocation for our stocks looking forward.

* Breaches, refreshes support shift to next-gen
We view recent high-profile data breaches (e.g.,
TGT) and an expected firewall refresh as positive
catalysts for our stocks, with a preference for
next-gen/APT-centric providers. Our proprietary
IT surveys support our bullish call, highlighting:
(1) Security spending is accelerating at its highest
rates since 2010, (2) a firewall refresh appears
more likely within the next 12 months, and (3)
new budget is being created to fight APTs, with a
high preference for solutions from new vendors.

* Breaches, refreshes support shift to next-gen
We view recent high-profile data breaches (e.g.,
TGT) and an expected firewall refresh as positive
catalysts for our stocks, with a preference for
next-gen/APT-centric providers. Our proprietary
IT surveys support our bullish call, highlighting:
(1) Security spending is accelerating at its highest
rates since 2010, (2) a firewall refresh appears
more likely within the next 12 months, and (3)
new budget is being created to fight APTs, with a
high preference for solutions from new vendors.

* Stock views: Buy PANW (CL), PFPT, FEYE
Palo Alto Networks (PANW, CL-Buy) is our top
pick, offering disruptive long-term growth and
accelerating profitability that should exceed street
forecasts. We also initiate coverage of Proofpoint
(PFPT) at Buy, given our above-consensus view on
near-term growth/FCF trends, and potential upside via
M&A. We upgrade FireEye (FEYE) to Buy, as
proprietary survey data indicates increased budget
(with new vendors) to counter APTs, a more positive
view on FCF, and potential M&A tailwinds over the
long-term. We also initiate coverage of Fortinet
(FTNT) with a Neutral rating.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ININ -22%, MTG -3.8%, TSM -3.4%, IBKR -2.8%, YHOO -2.7%, ASML -2.3%, PNC -2%, AIR -1.5%, PNFP -1.4%, BAC -0.7%, HSY -0.5%, NTRS -0.4%.

M&A news: SHPG -0.8% (cont vol on M&A spec), AOL -0.6% (Yahoo (YHOO) not interested in acquiring AOL, M&A head says, according to reports).

Other news: BIOA -15.5% (announces public offering of 2.8 mln shares of common stock), POZN -6.8% (announces FDA acceptance of refiling of new drug application for PA8140/PA32540 tablets), BBRY -4.9% ( following AAPL / IBM news ), IRT -3.1% (upsizes and prices 7 mln shares of common stock at $9.50 per share), ITI -3% (reported resignation of CFO Chuck McBride, names Craig Christensen interim CFO; co continuing to work with auditors to complete FY14 audit), ARCC -2.9% (announces public offering of 11.85 mln shares of its common stock), BCEI -1.8% (prices $300 mln of 5.75% senior unsecured notes due 2023), RIOM -1.7% (repaid $3 mln plus accrued interest of $584K owing on the Operating Loan on July 11, 2014), IPXL -0.9% (announced it received a subpoena from Conneticuit AG regarding its generic product digoxin).

Analyst comments: NSM -2.2% (downgraded to Underperform from Market Perform at Wells Fargo), IMAX -1.9% (downgraded to Neutral from Overweight at Piper Jaffray ), POT -1.5% (downgraded to Hold from Buy at TD Securities), ROST -0.8% (downgraded to Neutral from Buy at Sterne Agee), KORS -0.7% (downgraded to Mkt Perform from Outperform at William Blair), MCD -0.6% (hearing target/estimates lowered at Janney).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: INTC +4.8%, TXT +3.3%, ABT +2%, BLK +1.3%, USB +1%, CSX +0.5%.

M&A news: ZIPR +118.5% (Realogy announces agreement to acquire ZipRealty for $6.75/share in an all-cash transaction valued at ~$166 mln), TWX +16.9% (FOXA confirms TWX proposal, which TWX rejected; FOXA says 'We are not currently in any discussions with Time Warner'), IGT +9.4% (enters into definitive merger agreement with GTECH S.p.A. (GTKYY)), ICAD +5.2% (acquired DermEbx and Radion to provide skin cancer treatment solution to the dermatology market; expected to be immediately accretive to revs and operating cash flow), FOXA +0.6% ( confirms TWX proposal, which TWX rejected; FOXA says 'We are not currently in any discussions with Time Warner'), .

Other news: OIBR +17.6% (signed MOU with Portugal Telecom (PT) in relation to financial investments in Rio Forte Investments S.A. commercial paper), CNCE +8.3% (announces FDA lifts partial clinical hold for CTP-354, a novel drug candidate for spasticity), PDS +4.5% (announces strategic technology and service agreement & marketing alliance with Schlumberger (SLB)), GLW +4.3% (Potential catalysts: BGR report out yesterday afternoon highlighted Gorilla Glass vs Sapphire), PT +3.9% (signed MOU with OIBR) in relation to financial investments in Rio Forte Investments S.A. commercial paper), STM +3.8% (following INTC earnings), BLRX +3.4% (announces results from phase 1/2 study for Celiac treatment), GPRO +3.1% (seeing continued strength), CY +2.8% (following INTC results), ARNA +2.4% (issued patent for APD371 by USPTO), SUNE +2.4% (trading higher ahead of TerraForm Power (TERP) IPO), AAPL +2.2% (Apple and IBM announce exclusive partnership to transform enterprise mobility through a new class of business apps ), AMD +2.2% (following INTC earnings), IBM +2% (Apple and IBM announce exclusive partnership to transform enterprise mobility through a new class of business apps ), JKS +2% (signs RMB1 bln strategic financing agreement with China Minsheng Bank), RIO +1.9% (reports record first half iron ore shipments), ISIS +1.8% (earns $1 million from GlaxoSmithKline for advancing ISIS-TTR Rx), MT +1.7% (bte China GDP), CBS +1.7% (open to licensing agreement with Aereo, according to reports), KNDI+1.7% (seeing continued strength), SIRI +1.5% (announces additional $2 billion common stock repurchase program).

Analyst comments: TNDM +12.1% (initiated with an Outperform at William Blair), FEYE +5.1% (assumed with a Buy from Neutral at Goldman), MLNX +3.9% (upgraded to Buy from Hold at Jefferies), PANW +3.3% (assumed with a Buy at Goldman), ARMH +2.4% (upgraded to Buy from Hold at FinnCap), WDC +2% (upgraded to Outperform at Robert W. Baird ), IM +1.9% (upgraded to Buy from Neutral at BofA/Merrill ), SJW +1.5% (upgraded to Outperform at Robert W. Baird), SYT +1.1% (upgraded to Outperform from Neutral at Credit Suisse), AAL +0.7% (initiated with a Overweight at Atlantic Equities)

(ManagerMagazin) Elliott calls Vodafone for Germany Cable massive surcharge

{http://bit.ly/1yqPpOY} German

DISPUTE OVER CASH COMPENSATION
Elliott calls Vodafone for Germany Cable massive surcharge

Vodafone needs the majority of cable Germany in order to take the company private can.Now the hedge fund Elliot legs away in between and requires a higher cash compensation for the minority shareholders

84,53 EUR per share cash consideration are not sufficient Elliott. The U.S. hedge fund wants erstreiten for the minority shareholders of cable Germany to court at least 225 euros. The Vodafone could also cost at least three billion euros.
Hamburg - The U.S. hedge fund Elliott Capital wants erstreiten in connection with the acquisition of cable operator Kabel Germany (KDG) by Vodafone to court a much higher compensation for the KDG minority shareholders. Elliott and others, KDG-1 shareholders have now brought legal proceedings against Vodafone verdict before the District Court of Munich.
Instead of 84,53 EUR offered by the mobile phone giant cash consideration per share calls Elliott in court 225-275 euros per paper. The reported manager magazin in his on Friday (July 18) emerging issue and refers to industry insiders.
The requirement arises from the valuation report, which have been submitted in Munich Elliotts auditors Rödl & Partner. Sets up the fund known as unyielding Argentina's creditors have become by that Vodafone could also cost at least three billion euros, manager magazine writes. Elliott holds 13.5 percent of KDG.A court spokeswoman confirmed that the court proceedings in Munich was initiated, but did not comment further. Elliott and Rödl & Partner wanted to take no position on the subject.
The right to such a large look-up is likely to Elliott in Germany have record character. Vodafone had announced the acquisition of the cable competitors last year and so far has secured 76.6 percent of KDG. Vodafone needs the majority to take KDG from the stock market can. The British telecommunications company now has to respond to September period, to the demand in court. A Vodafone spokesman declined to comment on the subject.

(BFW) *BMW SAYS GLOBAL AIR-BAG RECALL AFFECTS 1.6 MILLION VEHICLES

 BN 07/16 12:13 *BMW COMMENTS IN E-MAILED STATEMENT
 BN 07/16 12:13 *BMW CARS RECALLED IN 2013 FOR AIR BAG REPAIRS ALREADY FIXED
 BN 07/16 12:12 *BMW RECALL AFFECTS 3-SERIES CARS BUILT MAY 1999-AUG. 2006
 BN 07/16 12:11 *BMW SAYS GLOBAL AIR-BAG RECALL AFFECTS 1.6 MILLION VEHICLES
*BMW SAYS GLOBAL AIR-BAG RECALL AFFECTS 1.6 MILLION VEHICLES
2014-07-16 12:12:09.717 GMT

--BRIAN LYSAGHT

-0- Jul/16/2014 12:12 GMT

(BFW) *ELLIOTT WANTS EU225-EU275/SHR FOR KABEL D’LAND: MANAGER MAGAZIN

 BN 07/16 12:05 *ELLIOTT FILES SUIT IN MUNICH REGIONAL COURT: MANAGER MAGAZIN
 BN 07/16 12:05 *ELLIOTT WANTS EU225-EU275/SHR FOR KABEL D'LAND: MANAGER MAGAZIN
 BN 07/16 12:04 *ELLIOTT WANTS LARGE PREMIUM FOR KABEL D'LAND: MANAGER MAGAZIN
*ELLIOTT WANTS EU225-EU275/SHR FOR KABEL D’LAND: MANAGER MAGAZIN
2014-07-16 12:06:21.47 GMT

--BRIAN LYSAGHT

-0- Jul/16/2014 12:06 GMT