Airbus To announce a airplane order on Sunday at the International Air Transport Association (IATA) meeting - press
Colgate-Palmolive Co Hearing recent strength attributed to chatter that an activist investor is building a stake
Radioshack Corp Hearing vague takeover chatter circulating of a possible bid
From: LAURENT CHEKROUN ()
Subject: >>> Buy Rolls-Royce Sell Safran
{RR/ LN Equity SAF FP Equity GRT D<GO>}* Rolls-Royce (RR/ LN)- Las news of disposal o Energy to Siemens is a positive step even if it has a slight negative impact on EPS (2/3% dilutive)- Integration of Tognum on its way- 2014 could be disappointing due to decline in defence but starting in 2015 we could several years of double digit EPS growth driven by top-line growth in the non-defence divisions and by ongoing significant cost reduction.- All geo-politics developments should disminish the pressure on defence program cut in the US, next US elcetions are in 2016 and we should see some stability in term of budget before thatThere is few risks on the stock, some are already priced but could create volatility on the stock- Some bad news on few new programmes that could face development delays or slower coule weight on the stock- SFO investigations for Bribery could also be -ve for the stock- Large acquisition could be also a potential -ve news- Chart : stock only rebound 4% from support, see another 5% of potential reboud on short term, still a big gap open since last Feb. ( 1095/1185)* Safran (SAF FP)- last set of numbers were a bit disappointing on Aerospace Propulsion & Defence (weakness on helicop. & delays on defence contract), civil market still strong- Eur$ still an issue, there is a risk above the 1.40 levels- Still some risk of Delays on LEAP project which is a big part of next years plan- French state has a 22% stake and as they have moved on Airbus, sector is not key anymore for the state, as we see rumors on EDF of state decreasing its stake, we could see some speculation also on this one- chart : Stock had a nice rebound from 46.20 support (7%), strong resistance on the 51 levels, don't expect the stock to break these levels* The SpreadI will play a quick 3.5% perf on this one, with a target above the 7% perf on the ratio
Caterpillar dives lower off the opening to probe its 50-day ma's around the 102-area
{RR/ LN Equity SA FP Equity GRT D<GO>}
* Rolls-Royce (RR/ LN)
- Las news of disposal o Energy to Siemens is a positive step even if it has a slight negative impact on EPS (2/3% dilutive)
- Integration of Tognum on its way
- 2014 could be disappointing due to decline in defence but starting in 2015 we could several years of double digit EPS growth driven by top-line growth in the non-defence divisions and by ongoing significant cost reduction.
- All geo-politics developments should disminish the pressure on defence program cut in the US, next US elcetions are in 2016 and we should see some stability in term of budget before that
There is few risks on the stock, some are already priced but could create volatility on the stock
- Some bad news on few new programmes that could face development delays or slower coule weight on the stock
- SFO investigations for Bribery could also be -ve for the stock
- Large acquisition could be also a potential -ve news
- Chart : stock only rebound 4% from support, see another 5% of potential reboud on short term, still a big gap open since last Feb. ( 1095/1185)
* Safran (SAF FP)
- last set of numbers were a bit disappointing on Aerospace Propulsion & Defence (weakness on helicop. & delays on defence contract), civil market still strong
- Eur$ still an issue, there is a risk above the 1.40 levels
- Still some risk of Delays on LEAP project which is a big part of next years plan
- French state has a 22% stake and as they have moved on Airbus, sector is not key anymore for the state, as we see rumors on EDF of state decreasing its stake, we could see some speculation also on this one
- chart : Stock had a nice rebound from 46.20 support (7%), strong resistance on the 51 levels, don't expect the stock to break these levels
* The Spread
I will play a quick 3.5% perf on this one, with a target above the 7% perf on the ratio
Buyers:
-
Dick's Sporting Goods (DKS) CEO, CFO and Director bought 140,300 shares at $42.46-42.82 worth ~ $6.0 mln
-
GEO Group (GEO) CEO bought 100,000 shares at $33.33-34.06 worth ~ $3.4 mln
-
Banc of California (BANC) CEO bought 35,000 shares at $10.38 worth ~ $400K
-
OFS Capital (OFS) CEO bought 26,266 shares at $12.66-12.69 worth ~ $300K
-
Aegerion Pharmaceuticals (AEGR) CEO bought 10,000 shares at $31.59 worth ~ $300K
-
8x8 (EGHT) CEO bought 38,000 shares at $7.42 worth ~ $300K
-
Synalloy (SYNL) CEO bought 11,096 shares at $14.76-14.77 worth ~ $200K
-
Plains All American Pipeline (PAA) Pres. of subsidiary-PMC ULC/10% owner sold 208,182 shares at $55.56-56.31 worth ~ $11.6 mln
-
SBA Communications (SBAC) Chairman sold 75,000 shares at $100.50-101.62 worth ~ $7.6 mln
-
Ameriprise Financial (AMP) CEO sold 67,298 shares at $110.11-110.89 worth ~ $7.5 mln
-
Freeport-McMoRan Copper & Gold (FCX) Director sold 186,000 shares at $33.67-33.87 worth ~ $6.3 mln
-
Microchip Technology (MCHP) CEO sold 120,249 shares at $47.09-47.32 worth ~ $5.7 mln
- Ensco (ESV) CEO sold 50,000 shares at $51.52-51.66 worth ~ $2.6 mln
BN 05/30 13:18 *TOTAL SELLS 10% SHAH DENIZ STAKE TO TPAO
BN 05/30 13:18 *TOTAL SELLS 10% SHAH DENIZ STAKE SALE WORTH $1.5B
BN 05/30 13:17 *TOTAL SELLS 10% STAKE IN SHAH DENIZ
BN 05/30 13:18 *TOTAL SELLS 10% SHAH DENIZ STAKE SALE WORTH $1.5B
BN 05/30 13:17 *TOTAL SELLS 10% STAKE IN SHAH DENIZ
*TOTAL SELLS 10% SHAH DENIZ STAKE SALE WORTH $1.5B
2014-05-30 13:18:25.882 GMT
--JURJEN VAN DE POL
-0- May/30/2014 13:18 GMT
2014-05-30 13:18:25.882 GMT
--JURJEN VAN DE POL
-0- May/30/2014 13:18 GMT
Gapping up
In reaction to strong earnings/guidance: BIG +10.2%, OVTI +9.3%, NMBL +4.2%, VEEV +3%, ANN +2.5%, AVGO +1.7%.
M&A news: COT +2.6% (announces U.K. Business Unit's Acquisition of Aimia Foods), SNN +1.6% (cont M&A spec).
Other news: RTRX +24.1% (announced entry into a U.S. license agreement for Thola (tiopronin)), NBY +15% (continued strength on reports that co's NeutraPhase product was used to treat necrotizing fasciitis), NLNK +11.7% (dorgenmeltucel-L HyperAcute immunotherapy for melanoma demonstrates clinical efficacy with tumor regression and immune activation), PLX +9.9% (announces ELELYSO (taliglucerase alfa) approved in Canada for the treatment of Gaucher disease in both adult and pediatric patients), OPTT +7.6% (still checking), RESN +7% (IPO opened yesterday; also SCON confirmed stake), DRWI +5.8% (continued strength, +12% on the week), MOBI +4.3% (announces change of fiscal year end and $20 mln share repurchase program), LNG +2.7% (Co and and Iberdrola sign 20-year LNG sale and purchase agreement), CRM +2.6% (announced global strategic partnership with Microsoft), MSG +2.6% (potentially related to sale of Clippers for $2 bln), GTE +2.2% (announced entry into an agreement to sell its Argentina business for ~$69 mln), PGNX +2.2% (PSMA ADC data selected for poster highlight presentation at ASCO), SPEX +1.4% (seeing modest rebound from yesterday's sharp pullback), GTAT +1.3% (positive blog mention; also continued strength, +8% on the week), AVA +1.1% (announced its non-regulated subsidiary, Avista Capital, signed an agreement to sell Ecova, Inc. to Cofely USA Inc. for $335 mln in cash), MDW +1.1% (announced $25 mln bought deal offering of 30.121 mln common shares at $0.83 per share).
Analyst comments: ARRY +4% (initiated with a Buy at Cantor Fitzgerald), KEYW +1.3% (initiated with a Buy at Drexel Hamilton), AAPL +0.4% (target raised to $720 from $635 at Goldman
)
In reaction to strong earnings/guidance: BIG +10.2%, OVTI +9.3%, NMBL +4.2%, VEEV +3%, ANN +2.5%, AVGO +1.7%.
M&A news: COT +2.6% (announces U.K. Business Unit's Acquisition of Aimia Foods), SNN +1.6% (cont M&A spec).
Other news: RTRX +24.1% (announced entry into a U.S. license agreement for Thola (tiopronin)), NBY +15% (continued strength on reports that co's NeutraPhase product was used to treat necrotizing fasciitis), NLNK +11.7% (dorgenmeltucel-L HyperAcute immunotherapy for melanoma demonstrates clinical efficacy with tumor regression and immune activation), PLX +9.9% (announces ELELYSO (taliglucerase alfa) approved in Canada for the treatment of Gaucher disease in both adult and pediatric patients), OPTT +7.6% (still checking), RESN +7% (IPO opened yesterday; also SCON confirmed stake), DRWI +5.8% (continued strength, +12% on the week), MOBI +4.3% (announces change of fiscal year end and $20 mln share repurchase program), LNG +2.7% (Co and and Iberdrola sign 20-year LNG sale and purchase agreement), CRM +2.6% (announced global strategic partnership with Microsoft), MSG +2.6% (potentially related to sale of Clippers for $2 bln), GTE +2.2% (announced entry into an agreement to sell its Argentina business for ~$69 mln), PGNX +2.2% (PSMA ADC data selected for poster highlight presentation at ASCO), SPEX +1.4% (seeing modest rebound from yesterday's sharp pullback), GTAT +1.3% (positive blog mention; also continued strength, +8% on the week), AVA +1.1% (announced its non-regulated subsidiary, Avista Capital, signed an agreement to sell Ecova, Inc. to Cofely USA Inc. for $335 mln in cash), MDW +1.1% (announced $25 mln bought deal offering of 30.121 mln common shares at $0.83 per share).
Analyst comments: ARRY +4% (initiated with a Buy at Cantor Fitzgerald), KEYW +1.3% (initiated with a Buy at Drexel Hamilton), AAPL +0.4% (target raised to $720 from $635 at Goldman
)
Gapping down
In reaction to disappointing earnings/guidance: BLOX -32.3%, (Co's CEO Robert Thomas to step down), BNNY -16.8%, EXPR -10.8%, PSUN -10.5%, SPLK -7%, LGF -6.9%, EXA -6.8%, GES -3.3%, FWM -2.9%, VMEM -2.6%, GHM -1.8%, ESL -1.2%.
Select metals/mining stocks trading lower, potentially related to Tier 1 downgrade of Russian steel stocks: CLF -3.4%, RIO -3.1%, BHP -2.2%, VALE -1.8%, MT -1.3%, X -0.8%, FCX -0.6%.
Other news: GLUU -7.4% (announced proposed public offering of common stock), CRDS -5.6% (filed for $25 mln mixed securities shelf offering; also files for ~2.98 mln share common stock offering by selling shareholders), FUEL -2.4% (negative mention on Mad Money), CYTX -1.6% (enters into subscription agreements with certain institutional investors to raise ~ $10 mln), NVS -0.8% (may face lawsuit over kickbacks, according to reports), LINE -0.7% (negative mention on Mad Money).
Analyst comments: EXAS -2.4% (downgraded to Neutral from Outperform at Wedbush on valuation), SDRL -1.9% (downgraded to Sell from Hold at Nordea), HHS -1.3% (downgraded to Perform from Outperform at BMO Capital Mkts ).
In reaction to disappointing earnings/guidance: BLOX -32.3%, (Co's CEO Robert Thomas to step down), BNNY -16.8%, EXPR -10.8%, PSUN -10.5%, SPLK -7%, LGF -6.9%, EXA -6.8%, GES -3.3%, FWM -2.9%, VMEM -2.6%, GHM -1.8%, ESL -1.2%.
Select metals/mining stocks trading lower, potentially related to Tier 1 downgrade of Russian steel stocks: CLF -3.4%, RIO -3.1%, BHP -2.2%, VALE -1.8%, MT -1.3%, X -0.8%, FCX -0.6%.
Other news: GLUU -7.4% (announced proposed public offering of common stock), CRDS -5.6% (filed for $25 mln mixed securities shelf offering; also files for ~2.98 mln share common stock offering by selling shareholders), FUEL -2.4% (negative mention on Mad Money), CYTX -1.6% (enters into subscription agreements with certain institutional investors to raise ~ $10 mln), NVS -0.8% (may face lawsuit over kickbacks, according to reports), LINE -0.7% (negative mention on Mad Money).
Analyst comments: EXAS -2.4% (downgraded to Neutral from Outperform at Wedbush on valuation), SDRL -1.9% (downgraded to Sell from Hold at Nordea), HHS -1.3% (downgraded to Perform from Outperform at BMO Capital Mkts ).