>>> LinkedIn: Color on qtr (180.64)

LinkedIn: Color on qtr (180.64)
  • Wunderlich Secuirities notes LinkedIn Corporation (LNKD) reported Q2 revenues, EBITDA, and EPS that were 3%, 14%, and 23% ahead of consensus, respectively. Guidance for next quarter was also ahead of the consensus and FY14 revenues and EBITDA guidance was raised by 8% and 4%, respectively. The company added 2,236 LinkedIn Corporate Solutions (LCS) customers, up from 1,400 last quarter and grew Talent revenues 57% Y/Y, ahead of estimates. Firm is raising estimates slightly with the expectation for continued beats and raises. Maintaining Buy rating and tgt of $250,
  • RBC Capital notes the Positives include: 1) Top Line Strength; 2) Solid Corporate Solutions Customer Adds; 3) increased penetration with existing clients, per management; 4) ARPU growth of 6% Y/Y was higher then expected; 5) EBITDA Margin Expansion... Negatives included 1) Soft Overall User & Engagement Growth.
  • FBR Capital notes LinkedIn (LNKD) growth improved after 10 quarters of deceleration. Guidance was also raised above consensus' estimates. Growth was led by Talent Solutions, while Marketing Solutions was the source of growth resurgence. The 3Q guidance implies deceleration to 39% growth at the high end. Among the wrinkles in the quarter was a 4.6% decline in FCF/share and lower engagement on tough comps. Raise tgt to $156 (from $141).
  • Topeka Capital notes LinkedIn delivered a nice upside quarter with revenues, Adj. EBITDA, and Adj. EPS handily above firm's estimates and consensus, and with guidance that was cleanly raised above consensus. Topeka continues to see an opportunity for more beat and raise quarters with guidance that could top Street expectations as LNKD executes. Longer-term sees LinkedIn benefiting financially from investments in R&D, Sales Solutions, Sponsored content, and China.
  • Needham Research notes LinkedIn's Q2 revenue and 2014 guidance exceeded expectations. The outperformance was driven primarily by ARPU acceleration and solid net new customer adds in Talent Solutions. Firm expects ARPU increases to be the main Talent Solutions revenue driver in 2H14. Marketing Solutions revenue growth remained solid, but is growing at a more modest pace than optimistic view. LinkedIn continues to be Needham's top large cap pick given its limited competition and innovative products that raise member and enterprise engagement, as well as drive incremental revenues.
LNKD is up approx 6% in pre-market trade; stock is testing its 200 sma.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: WWWW -20.7% (also downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey), SREV -12%, MXWL -9.9%, ADNC -9.8%, CTRL -9.6%, GPRO -9.4%, YRCW -9.3% (light volume), BYD -9.1%, ARRS -7.8%, PXLW -7.2%, IMMR -6.6%, MT -6%, ABTL -4.4%, (light volume), MRC -3.8%, (light volume), SPWR -3.3%, AFFX -2.6%,OUTR -2.2%, PCYC -2.2%, OMG -2.1%, (light volume), RBS -1.9%, LYV -1.7%, GFIG -1.5% (light volume), KOG -0.9%, TSLA -0.6%, ASH -0.6%, WY -0.4%, (light volume).

Select financial related names showing weakness: DB -1.6%, UBS -1.3%, HSBC -1%, C -1% (to sell 80% of its $1.5 bln limited partnership interest in Metalmark Capital Partners II to Lexington ), CS -0.9%, BAC -0.7%, ING -0.6%.

Select metals/mining stocks trading lower: MT -5.9%, GOLD -2.5% (downgraded to Neutral from Buy at UBS), RIO -2.4%, BBL -1.4%, BHP -1.1%.

Select solar names lower following SPWR results: TSL -1.9% JKS -1.1% CSIQ -0.6%.

A few European drug names are trading lower: NVS -3.3%, GSK -1.6%, SHPG -1.1%, AZN -0.7%

Other news: BOTA -21.8% (reports top-line data From its Phase 2 IGLOO trial of Laninamivir Octanoate; neither the 40 mg or 80 mg cohort achieved a statistically significant reduction in the median time to alleviation of influenza symptoms), HIL -10.6% (priced public offering of common stock at $4.25/share after hours; intends to initially keep $10.0 mln of the net proceeds as cash or cash equivalents and to use the balance of the net proceeds from the offering), AIXG -7.3% (pulling back from two day gains), ALU -6.7% (continued weakness following earnings), SSYS -6% (announced that it has expanded European Ops ATHL -3.8% ( prices 12.5 mln share offering by selling shareholders at $46.25 per share ), PT -3.7% (continued weakness), RGSE -3.6% (filed for an offering of ~4.232 mln shares of Class A common stock by selling shareholders), VE -3.4% / SAP -1.9% (still checking), BONE -3.1% (announces public offering of common stock; size not disclosed), YY -2.4% (still checking), MSFT -1.5% (received unfavorable ruling yesterday in Ireland court ruling), RDS.A -1.4% (acknowledged outcome of Woodside Petroleum's shareholders' negative vote on selective buy-back proposal announced June 17 2014; Shell is reviewing its options in relation to its remaining 13.6% holding in Woodside), CDTI -1.3% (promotes David E. Shea to Chief Financial Officer), QIHU -1.3% ( priced private placement of $450 mln principal amount of convertible senior notes due 2020 and $450 mln principal amount of convertible senior notes due 2021), IGT -0.8% (following SGMS / BYI news).

Analyst comments: DDD -3.3% (downgraded to Sector Perform at RBC Capital Mkts; downgraded to Neutral from Overweight at Piper Jaffray, downgraded to Neutral from Buy at Citigroup), EHTH -1.4% (downgraded to Neutral from Buy at BofA/Merrill), BBBY -1.5% (downgraded at Opco).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ARNA +26.3%, IMPV +13.7%, AXTI +11.6%, GDOT +8.4%, TNDM +8.1%, SKUL +7%, SWIR +6.6%, LNKD +6.5%, BEAT +5.6%, (light volume), SYNA +5.2%, KCG +5.1%, EXPE +3.8%, IRE +3.7%, MHK +3.2%, AHS +3.1%, DATA +2.3%, WU +1.9%, (light volume), PG +1.8%, MCHP +1.3%, (light volume), CYH +1%, ONNN +0.9%, CTRX+0.9%, AVD +0.7%, (light volume), LNG +0.2%, (light volume), AIV +0.1%, (saw late move higher following early earnings release), .

M&A news: BYI +33.5% (Scientific Games to acquire Bally Technologies in transaction valued at $5.1 billion), IBCA +10.3% (Intervest Bancshares Corp to be acquired by Bank of the Ozarks in an all-stock transaction).

Select oil/gas related names showing strength: STO +0.8%, TOT +0.6%.

Other news: ARRY +8.5% (received orphan drug designation status for binimetinib for the treatment of ovarian cancer), SRPT +2.9% (announces appointment of John Hodgman as interim chairman; also initiated with an Outperform at Oppenheimer), JD +2.5% (trading higher following positive MadMoney mention), FNMA +1.4% (releases June 2014 monthly summary; Book of Business decreased at a compound annualized rate of 1.7% in June), VRTX +0.7% (light volume; receives European approval for KALYDECO (ivacaftor) in eight non-G551D gating mutations; KALYDECO is the first medicine to treat the underlying cause of CF in people with specific non-G551D gating mutations )

Analyst comments: RNA +3.9% (light volume, initiated with an Outperform at Oppenheimer), DV +0.3% (DeVry upgraded to Buy from Hold at Stifel)

(BN) *SCIENTIFIC GAMES TO BUY BALLY FOR $83.30/SHR CASH


PRN 08/01 11:21 Scientific Games to Acquire Bally Technologies In Transaction Valued at $5.1 Billion
BN 08/01 11:24 *SGMS SAYS HADDRILL EXPECTED TO SERVE AS VICE CHAIRMAN
BN 08/01 11:24 *SCIENTIFIC GAMES SAYS BALLY'S HADDRILL TO BE VICE CHAIRMAN
BN 08/01 11:23 *SGMS: HADDRILL- ROBBINS WILL JOIN BOARD OF SCIENTIFIC GAMES
BN 08/01 11:23 *SCIENTIFIC GAMES TO BUY BALLY IN $5.1B DEAL, INCLUDING DEBT
BN 08/01 11:23 *SGMS SAYS DEAL NOT SUBJECT TO FINANCING CONTINGENCY
BN 08/01 11:23 *SGMS: ISAACS WILL CONTINUE AS PRESIDENT-CEO OF SCIENTIFIC GAMES
BN 08/01 11:23 *SGMS HAS COMMITTED DEBT FINANCING FOR DEAL
BN 08/01 11:23 *SCIENTIFIC GAMES SEES $40M CAPITAL COSTS FOR INTEGRATION
BN 08/01 11:23 *SGMS SEES DEAL FINANCED WITH DEBT, CASH ON HAND
BN 08/01 11:22 *SGMS: DEAL VALUE INCL REFINANCING $1.8B EXISTING BALLY DEBT
BN 08/01 11:22 *SCIENTIFIC GAMES, BALLY TERMS PREMIUM ABOUT 38%
BN 08/01 11:22 *SGMS DEAL TOTAL VALUE ABOUT $5.1B INCL NET DEBT $1.8B
BN 08/01 11:22 *SCIENTIFIC GAMES SEES $75M OF COSTS TO ACHIEVE 'SYNERGIES'
BN 08/01 11:21 *SCIENTIFIC GAMES DEAL INCL REFINANCING OF $1.8B BALLY DEBT
BN 08/01 11:21 *SCIENTIFIC GAMES SEES DEAL ADDING TO EPS IMMEDIATELY
BFW 08/01 11:21 *SCIENTIFIC GAMES TO BUY BALLY TECHNOLOGIES IN TRANSACTION
BN 08/01 11:21 *SCIENTIFIC GAMES SEES DEAL IMMEDIATELY ADDING TO EPS, CASH FLOW
BN 08/01 11:21 *SCIENTIFIC GAMES TO BUY BALLY FOR $83.30/SHR CASH
BN 08/01 11:21 *SCIENTIFIC GAMES TO PAY $83.30/SHR CASH
BN 08/01 11:21 *SCIENTIFIC GAMES TO BUY BALLY TECHNOLOGIES IN TRANSACTION

Scientific Games to Buy Bally Technologies for $83.30/Shr Cash
2014-08-01 11:22:59.313 GMT


By Brad Skillman
Aug. 1 (Bloomberg) -- Scientific Games to acquire Bally for
$5.1b including refinancing of $1.8b of net debt
* Deal represents 38% premium to yday’s BYI closing price

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>>> Procter & Gamble beats by $0.04, misses on revs; guides FY14 EPS in-line (7

Procter & Gamble beats by $0.04, misses on revs; guides FY14 EPS in-line (77.32)
Reports Q4 (Jun) core earnings of $0.95 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.91; revenues fell 0.7% year/year to $20.16 bln vs the $20.48 bln consensus.
  • Co issues in-line guidance for FY14, sees EPS of mid single digits (cons +3.9%) vs. $4.21 Capital IQ Consensus Estimate.
  • "We met our objectives in a very difficult operating environment, delivered strong constant currency earnings growth, and built on our strong track record of cash returns to shareholders. Still, we have more work to do to deliver the profitable sales growth and strong cash productivity we are capable of delivering. We will discuss our going-forward strategy and plans to further strengthen our results during our earnings call this morning."
  • Guidance Details: P&G expects organic sales growth in the low-to-mid single digit range in fiscal year 2015. Net sales growth is expected to be in the low single digit range, including a negative one point impact from foreign exchange

FT : Tax haven buyers set off property alarm

Tax haven buyers set off property alarm

At least £122bn of property in England and Wales is held through companies in offshore tax havens where ownership is difficult to trace, a Financial Times analysis of Land Registry data has found. The figure – more than the total value of all housing stock in Westminster and the City of London – reveals for the first time the detail of the scale of offshore property ownership in the UK. It raises concern that London property in particular has become a haven for dirty money from around the world. "Property is a key risk area for the UK," says Robert Barrington, executive director of Transparency International UK. "From Abacha to Marcos and the Gaddafis, corrupt leaders have used shell companies and trusts to hide their identities and safeguard stolen fortunes, often in property." Nearly two out of three of the 91,248 foreign-company owned properties in England and Wales are held via the British Virgin Islands and Channel Island structures. Just under two-thirds of the offshore-owned property by value is in Greater London, with 27 per cent in the City of Westminster. The Land Registry data do not allow a breakdown between residential and commercial property. When Prime Minister David Cameron last year announced that details of who owned UK-based companies would be made publicly accessible, the government highlighted the need for transparency to tackle tax evasion, money laundering and other crimes. Yet Land Registry records show only the owner or entity holding a property, not the ultimate owner of the company through which the asset is held. Transparency International has called for the introduction of a list of beneficial ownership of property to mirror the UK government’s push to reveal the owners behind British companies. Anti-money laundering regulations require estate agents and lawyers to carry out due diligence on those involved in property transactions, which includes making checks on beneficial ownership. But doing so can be difficult. "When you have a company hidden offshore, it is I think almost impossible for your average estate agent to find out what on earth is going on," says Peter Bolton King, global residential director at Rics. "You have to make a professional judgment whether you are satisfied with the information that you are provided with." During the 2011 Libyan revolution, it emerged that the late Libyan dictator Muammer Gaddafi’s son Saadi owned a £10m London mansion through an offshore vehicle. Many of London’s "trophy houses", including Witanhurst, a 65-room mansion overlooking Hampstead Heath, are owned by offshore companies whose ultimate owners are hidden. Witanhurst is registered to Safran Holdings, an offshore company registered in the British Virgin Islands. Besides offering privacy to individuals and companies, BVI and the Channel Islands are attractive because of their tax regimes, and because of their strong ties with London’s banking and business community and their robust judicial systems. The 128 jurisdictions of choice for property investors include more unusual ones such as Iran and Niue, the tiny South Pacific island nation. A Land Registry official said there were no plans to introduce a register of beneficial ownership of property and that it would be "misleading to suggest that registering land or property in a company name amounts to allowing individuals to conceal information on the register for illicit purpose". The total value of offshore ownership of property is likely to be considerably higher than £122bn. Limitations on how the Land Registry holds the data mean the true picture is difficult to ascertain. More than a third of the data provided by the Land Registry do not contain a purchase price. The Land Registry does not capture price information when properties change hands through the purchase of an offshore corporate vehicle for example.

FT Lex : Iliad: the siege of T-Mobile

Iliad: the siege of T-Mobile   Xavier Niel always said that Iliad, the French mobile carrier he founded, would one day have to invest in network infrastructure. He didn’t say that the infrastructure would be on the other side of the Atlantic. Yet Iliad on Thursday confirmed its offer for a 57 per cent stake in the US carrier T-Mobile.

The offer, at $33 a share, looks low. Wednesday’s price was $31. But it is well over December’s $25 price, which Iliad calls "unaffected" because it predates talk of a bid from Sprint. Much has happened since then. This interpretation of "unaffected" will be roundly rejected.

Iliad argues that the bid is, in total, worth $36, a 43 per cent premium to the putative unaffected price. It sees $10bn worth of synergies from the deal, which will make the value of the shares it doesn’t buy $40.50 (the market may disagree, of course – the shares will continue to trade). How might that value estimate work? Say $1.5bn in pre-tax savings can be found at T-Mobile after the deal; tax the savings at 35 per cent; capitalise them at the usual 10 times. There’s the $10bn. But if you spread that value over T-Mobile’s 813m shares, it comes to $12 a share, which does not quite close the gap between $25 and $40.50. So just how the figures work is unclear.

Then there is the question of where $1.5bn in savings – or anything near it – can be found at a company with a $26bn operating cost base. If this were a merger on a single country, perhaps. But this is a cross-border stake sale. And the lack of overlap means T-Mobile will always be worth more to Sprint.

Perhaps, though, Mr Neil’s thought process is simple. There is more profit in the US than in Europe; he knows how to run a lean operation to undercut rivals gone fat; and T-Mobile is the vehicle he needs to do it. The rest is detail. Fair enough, but to get what he wants he will have to fight much harder than this.