>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: GALE -16.1%, YGE -10.5%, TWER -10%, INTX -6.9%, DTSI -3.8%, PRKR -2.5%, DLR -1.9%, SNOW -1.4%, RLYP -1.2%, FSM -1%.

Select metals/mining stocks trading lower: SLW -1.9%, ABX -1.8%, SLV -1.7%, HL -1.5%, GG -1.5%, HMY -1.4%, AU -1.3%, NEM -1.3%, IAG -1.3%, GDX -1.2%, GLD -0.9%.

Other news: KIOR -46.7% (after it disclosed that it determined that impairment indicators existed related to the Columbus facility as a result of the Columbus facility not generating positive cash flows; says plan to pursue the required financing), OXBT -7.4% (announces proposed public offering), JRCC -5.7% (filed to delay form 10-K), GME -5.4% (Wal-Mart (WMT) introduces new trade-in and pre-owned video game services and offering, starting Mar 26), CCRN -4.9% (provides updated fourth quarter & Full Year 2013 financial results), CHH -3.2% (announced secondary offering of 3 mln shares of common stock by selling stockholders), SFM -3% (filed for 15 mln share common stock offering by selling shareholders), GBDC -2.8% (announced public offering of 3.5 mln shares of its common stock), CRTO -2.2% announced public offering of 5.25 mln ADSs, each representing one of Criteo's ordinary shares;), EOX -1.9% (announced offering of $125 mln in aggregate principal amount of Convertible Senior Notes due 2019), DLR -1.9% (announced Michael F. Foust Departs as Chief Executive Officer; Board Appoints A. William Stein as interim Chief Executive Officer), YY -1.8% (announced proposed offering of $400 mln convertible senior notes), CUTR -1.6% (filed to delay from 10-K), FRC -1.4% (announced 3.5 mln share Common Stock Offering) SNE -0.9% (weakness overseas following Sony Pictures layoff announcement yest).

Analyst comments: SFLY -6.7% ( downgraded to Undperform from Outperform at Cowen), EJ -2.1% (removed from Conviction Buy list at Goldman), UMPQ -1.6% (downgraded to Sector Perform at RBC Capital Mkts), KORS -0.7% (initiated with an Underweight at Barclays), CSCO -0.7% (downgraded to Equal Weight from Overweight at Barclays).

>>> US Gapping up

Gapping up 

In reaction to strong earnings/guidance: RNA +21.3%, FF +21.2%, ATEC +10.6%, MBT +3.1%, HTZ +2.3%, WPCS +1.9%, NVGS +1.6%, ACFN +1.4%, KYTH +0.7%, .

M&A news: NVS +0.5% (in discussions to purchase Gamida-Cell for up to $600 mln, according to reports).

Other news: ADXS +9.6% (receives patent in Japan for ADXS-HPV for the treatment of cervical cancer), OCLS +6.5% (Continued strength; move comes ahead of expected IPO of subsidiary Ruthigen), LOCM +4.1% (ticking higher following strength seen yesterday afternoon), YOD +3.8% (still checking), YNDX +3.3% (has purchased Tel Aviv's KitLocate location service technology, according to reports), PLUG +2.8% (cont volatility), KNDI +2.8% (cont strength), JASO +2.2% (cont strength), CBI +1.5% (co and Chiyoda announced their joint venture was awarded a contract for LNG liquefaction and export facilities), GTAT +1.2% (still checking), BIIB +1% (announces the FDA has extended the initial Prescription Drug User Fee Act date for its review of the Biologics License Application for marketing approval of PLEGRIDY by three months).

Analyst comments:AMZN +2.91% (target raised to $455 at Oppenheimer), ICPT +1.8% (target raised to $500 at Needham), PVH +1.2% (initiated with an Overweight at Barclays), KATE +1.0% (initiated with an Overweight at Barclays), QGEN +0.9% (upgraded to Buy from Hold at Berenberg), HPQ +0.6% (upgraded to Overweight from Equal Weight at Barclays)

FT : Start-ups with an Apple flavour

Steve Jobs hurled many abusive names at Andy Grignon during his six years at Apple. Mr Grignon internalised the criticism to such an extent that he even had one particularly offensive name printed on his business card there.
“I got yelled at all the time,” he says with a hint of pride. Now, as this former senior manager for the iPhone maker prepares to launch a product of his own, Mr Grignon says his encounters with Apple’s tempestuous co-founder prepared him for anything. “Once you’ve gone through the worst of a Steve meeting, any other meeting – whether pitching an investor or giving a demo – doesn’t feel hard,” he says. “When you are yelled at by Steve Jobs you know you are being yelled at by the best.”
Mr Grignon is part of a select group in Silicon Valley: Apple alumni who have gone on to found their own companies. Whereas many former Google or Facebook employees have launched start-ups, Apple has not been a wellspring of entrepreneurialism.

But Google’s $3.2bn acquisition of smart-home pioneer Nest Labs, launched by two former Apple superstars, marked a turning point. As more people escape One Infinite Loop, Apple’s corporate HQ in Cupertino, California, to start out on their own, each is hoping to take with them some of that Apple magic – and the tough lessons they learnt there.
Few of these Apple seeds have fallen far from the tree. Take Mr Grignon’s Quake Labs, set up with former Apple designer Bill Bull. They are developing an online service, Eightly, that lets anyone create an app that works on any device, without needing to write any code – a sort of App Store for everyone.
Similarly Tim Bucher, a former senior vice-president of Macintosh engineering in the mid-2000s, will next month start selling Lyve, an online storage system that works a little like Apple’s iCloud and iPhoto but lets people manage their images and videos across any sort of device.
Mark Kawano, whose six years at Apple included designing iPhoto and helping external developers to make good-looking iOS apps, has just laun­ch­ed an app for the iPad: Storehouse, a slick, simple service for arranging photos, videos and words into magazine-like stories.
Even Tony Fadell and Matt Rogers, Nest’s founders, built their thermostats and smoke alarms much as Ap­ple might: charging premium pri­ces for devices with a design and at­ten­tion to detail that strive to create an emotional connection with customers. “Tony and Matt are the first two successful entrepreneurs I’ve seen come out of Apple,” says Randy Komisar, a Nest board member as an investor at Kleiner Perkins Caufield & Byers, and also a former Apple employee. “Ap­ple’s culture was not that entrepreneurial. It was a command-and-control hierarchy with Jobs at the top. Matt and Tony were exceptions.”
Many employees tended to stay at Apple for a long time. Most of its executive team have worked in Cupertino for more than 15 years.
“Apple is so good we don’t need to leave to form our own companies,” says Nikola Hu, a former iOS engineer who nonetheless left to develop Moov, a wearable fitness tracker. “Inside Apple, everything would be much faster because they have more resources.”
However, more are beginning to follow Mr Hu out of the door. In her new book Haunted Empire, Yukari Iwatani Kane says “morale has languished” at Apple since Mr Jobs died in 2011, and that resignations have inc­reased as its stock price stagnates and product launches become “more incremental”.
For many Apple refugees, Nest was a first step to their own entrepreneurial endeavour. Hugo Fiennes, who led Apple’s hardware team for the first four versions of the iPhone, worked on Nest’s initial ther­m­ostat before for­m­ing Electric Imp, a platform for con­necting devices to the “internet of things”. Former iPhone software des­igner Mike Matas helped create Nest’s user interface before laun­ching Push Pop Press, a maker of digital books for the iPad.
In 2011, Push Pop Press was bought by Facebook, and Mr Matas now works in Creative Labs, a kind of start-up within Facebook that created its lauded new iPhone app, Paper. “Their bar for excellence is really high and they al­ways strive to really perfect stuff before it goes out,” Mr Matas recalls of Apple. “Anyone who works there takes that with them.”


Mr Matas worked on Paper with for­mer Apple colleagues Sharon Hwang, a graphic designer, and Loren Brichter, who after leaving Apple sold an iPhone app, Tweetie, to Twitter and also created the game Letterpress.
Despite the familiar colleagues, Mr Matas says working at Facebook can be very different from Apple. Now it is a question of working with users who generate their own content, he says: “You have to design for other people’s stuff.” While Apple’s teams were silo­ed and rarely met their counterparts in other departments, Facebook is much more collaborative. “A lot of stuff that Paper has developed has gone out into other parts of the company,” he says.
Nonetheless, Paper was developed in secrecy for more than a year before its surprise unveiling in January. That seems more like Apple’s ap­proach than the internet companies’. Facebook and Google often post new services to the web to see how users res­pond, before improving them based on large-scale, real-world behaviour.
Mr Grignon says Facebook’s sometime motto of “move fast and break things” sits uncomfortably with many longstanding Apple employees. “It’s a recklessness, in a way, of engineering. It works well for folks like Facebook but Apple engineers go­ing into companies like that can experience a certain level of frustration.”
He says Apple’s reputation for perfectionism sometimes works against alumni. “When you have a bunch of Apple guys together, [investors] are concerned that we won’t ship until it’s perfect,” he says. “We work very hard to combat that.”
Now, Mr Kawano says, the development of mobile apps has forced the tech industry to raise its design standards: “The minimum viable product needs to be way better than you would do for the web, because the platform is so much higher quality.”
That might suggest former Apple staffers have an advantage when they found tech companies. But Mr Bull says it is hard to generalise about people that emerge from Cupertino. “There is the whole gamut of egotists and humble people.” While many try to emulate Apple’s emphasis on user-centric design, there were no “dogmatic principles” behind its success, he adds.
Even Jobs’s unique approach to management was “just saying the obvious”, says Mr Grignon. “Most people are more polite than that – they won’t cut to the middle of your heart and turn the knife a bit.”

FT : Release oil from US reserve to hurt Russia

Release oil from US reserve to hurt Russia

World oil price could drop $10-$12 per barrel

Russia’s seizure of Crimea has prompted political leaders in Europe and North America to seek meaningful measures to convince Russia to pull back its troops.
In particular, they seek measures that would affect Russia immediately, putting internal pressure on the country’s leaders to stop their aggression while leaving the rest of the world unharmed. Some propose accelerating natural gas exports from the US to Europe. However, this is no better than computer “vapourware” because the gas would not arrive for years.

A viable alternative to gas exports is releasing oil from the US Strategic Petroleum Reserve (SPR). These stocks are available today and could have a speedy impact on Russia. Given that the country depends on oil and natural gas exports for its survival, such an action would have a quick and significant effect if the release depresses oil prices.
The SPR now holds 694m barrels of crude. The federal government acquired the oil between 1977 and 2009 as a safeguard against severe disruptions of world oil markets. The original intention was to create a billion-barrel reserve, to offset any prolonged interruption of US oil imports during some future conflict.
The US no longer needs such a large strategic reserve. The SPR cannot be entirely eliminated due to the International Energy Program commitment to hold reserves equal to 90 days of imports, but the US could easily sell 500,000 to 750,000 barrels per day for up to two years without breaching this obligation.
Kremlin pain
By my calculation, if the US did this and all else remained equal, the world oil price would drop $10-$12 per barrel.
Although that would be only about a 10 per cent reduction in price, it would still inflict substantial pain on the Kremlin. A crude oil price decline of $10 per barrel would cut Russian export income by around $40bn, which amounts to roughly 10 per cent of the 2012 fuel export income Russia reported to the World Trade Organisation. Russia’s GDP could fall as much as 4 per cent.
An SPR oil release could also exacerbate the rouble’s decline and further increase the country’s internal economic difficulties.
In addition, lower oil prices would offer significant benefits to European consumers who depend on natural gas from Russia, including those in Ukraine. That is because Russia links – or tries to link – the price of natural gas it exports to Europe to crude oil prices.
Thus, by liquidating the surplus SPR oil, the US would give Europe lower natural gas prices. In the US, lower crude oil prices would cut gasoline prices as much as 25 cents per gallon. And the profit generated from any sales of SPR oil – which costs, on average, $28 per barrel – could go to deficit reduction.
There are two big “ifs” to this scenario, however. The first is that Congress would probably have to authorise any SPR oil sales, especially if the oil was to be sold to foreign buyers. Approval could take weeks or months. However, Congress could surprise, especially if the step were seen as a way to impose sanctions on Russia.
Saudi reaction
The second “if” concerns the reaction of Saudi Arabia. The world’s largest oil exporter would also see a reduction in income. It is likely, though, that the Saudis would acquiesce because they are locked in a struggle with Russia over Syria and Iran.
The Saudi Arabian leaders would probably welcome crude oil sales from the reserve as a clear effort to weaken Russia.
Saudi Arabia’s economy, unlike Russia’s, can tolerate lower oil prices because budgets are premised on lower oil prices, and because the country has accumulated large financial reserves that can be drawn when prices fall. Most likely the Saudis would say and do nothing as long as the US limited its price reduction goal to, say, 10 per cent rather than 50 per cent.
No doubt oil traders and producers in the US would agree. Some have argued that relaxing the US ban on crude exports would be preferable to an SPR release. However, increasing supply is the only way to have a real price impact on global markets.
Easing the export prohibition would not accomplish this but permitting the exports of oil now held in the SPR would.
Moreover, US strategic stocks are no longer strategic but rather surplus government property. Sooner or later the oil will re-enter the market, just as inventories of other commodities accumulated for crises have been sold when no longer needed.
In this case, strategic stocks may indeed serve a strategic purpose if the price declines curb Russia’s belligerence.
Philip K Verleger Jr retired from the University of Calgary where he was the David Mitchell-EnCana Professor and now heads PKVerleger LLC; he was director of the Office of Energy Policy at the US Treasury in the Carter administration

>>> US Early premarket gappers

Early premarket gappers

Gapping up: RNA +28.8%, FF +21.2%, MNGA +14.1%, ATEC +4.4%, ATEC +4.4%, YOD +3.8%, PLUG +2.9%, YGE +2.7%, HPQ +1.9%, WPCS +1.9%, GTAT +1.7%, JASO +1.6%, CBI +1.5%, KNDI +1.4%, MELA +1.4%, ACFN +1.4%, CSIQ +1.2%, FCEL +1.1%, KYTH +0.7%

Gapping down: GALE -15.8%, TWER -10%, INTX -6.1%, GME -5.9%, OXBT -5.8%, JRCC -5.7%, DTSI -3.8%, GBDC -2.8%, PRKR -2.5%, CRTO -2.2%, SFM -2.2%, CHH -2.1%, EOX -2%, DLR -1.9%, RIG -1.9%, DLR -1.9%, FRC -1.4%, CSCO -1.4%, SNOW -1.4%, SNE -1.3%, RLYP -1.2%, HTZ -0.8%

>>> Ivanhoe Energy announces successful conclusion to the arbitration case with

Ivanhoe Energy announces successful conclusion to the arbitration case with GAR Energy and Associates 

Co announced a successful conclusion to the arbitration case with GAR Energy and Associates. The case arose out of GAR Energy's allegations related to an engagement for consulting work in Colombia and Ecuador. Ivanhoe defended the case vigorously from the beginning, asserting that it had acted in accordance with its contractual and other duties in dealing with GAR Energy. Ivanhoe is gratified that, after considering all of the evidence, the arbitration panel agreed with the Company's position and exonerated Ivanhoe completely on all of GAR Energy's claims.
The arbitration panel ruled on March 14th in favour of Ivanhoe on the merits, totally rejecting GAR Energy's claims. The arbitration decision is binding and non-appealable.

*VOLKSWAGEN DOESN'T PLAN TO CHANGE TERMS OF SCANIA BID, SVD SAYS

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BN 03/18 10:59 *VOLKSWAGEN WON'T RAISE SCANIA OFFER, SVENSKA DAGBLADET REPORTS

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*VOLKSWAGEN DOESN'T PLAN TO CHANGE TERMS OF SCANIA BID, SVD SAYS 2014-03-18 10:59:55.394 GMT

--NIKLAS MAGNUSSON

-0- Mar/18/2014 10:59 GMT

(Makor) Top Trading Ideas : long Adidas (ADS GR) / short Nike (NKE)


Top Trading Ideas: long Adidas (ADS GR) / short Nike (NKE)

We recommend to go long Adidas (Eur 78.40) and short Nike (78.98). Adidas has significantly underperformed since the beginning of the year on significantly reduced expectations. Year to date, the stock is down 15% while over the same time period, Nike is up slightly. However, in terms of relative value the trade is well justified. Moreover, in terms of growth going forward, the growth rates of both companies are comparable. Moreover, the trade is mean reverting and we note that Adidas is at its lowest point vs. Nike in relative terms over the last 20 years.


FULL REPORT ATTACHED

>>> Fitch: Spain restructuring law may hurt SME and mortgage recoveries


Fitch: Spain restructuring law may hurt SME and mortgage recoveries
- Announced by the Spanish government to facilitate debt refinancing and restructuring agreements may affect the recovery expectations and cash flows of SME CLO securitisations and mortgage cover pools, Fitch Ratings says. The reforms may make SME funding scarcer or more expensive.
- The initiative eases the process by which refinancing and restructuring agreements between companies and bank creditors are formalised ahead of any insolvency proceedings. It requires the SME business to be viable after the restructuring and that the terms are accepted by at least 51% of financial creditors. These alternatives are not possible on debt to commercial creditors or on public sector obligations. The reform was enacted in Royal Decree 4/2014,
dated 7 March 2014.

>>> EU Parliament votes in favor of Telcom package

EU Parliament votes in favor of Telcom package
**Note: According to prior reports there was speculation that the EU could delay the plan to lower roaming charges by up to 3 years.
- In June of 2013, the European Commission voted to end mobile roaming fees in 2014. However, in late August, EU Commissioner Kroes canceled the draft proposal.