>>> Michael Kors on Conference Call

Michael Kors on Conference Call  

Higher SG&A due to higher retail occupancy, higher distribution cost, increased marketing expense, and increase in employee related costs...

Seeing an increase in brand awareness globally and has opportunity to expand it even further in coming quarters.... saw very healthy growth across all segments and geographies....

500 new shops globally this year... momentum building in jewelry business; focus on expanding watch and jewelry offerings... new fragrance and beauty collection performing well; will continue global roll out of this collection; plan on being a global player in this segment.

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: DSW -17%, GOMO -11.3%,CRMT -11.2%, WTSL -9.9%, DAKT -5.3%, BCRX -3.9% (discloses financial outlook for 2014: Sees FY14 operating expenses in upper half of previously announced range of $48-59 mln).

M&A news: VRX -0.3% (Valeant Pharma to sell filler and toxin assets to Nestle for $1.4 billion; VRX increases merger proposal For AGN).

Select drug/biotech name showing weakness: GSK -1.6% ( Independent discusses rumors that GlaxoSmithKline may make GBP 1 bln bid for Ariad), MRK-1%, AZN -0.8% (Barron's positive on PFE after dropping AZN bid), TEVA -0.4%.

Select metals/mining stocks trading lower: RIO -1.4%, BBL -1.2%, AU -1.2%,BHP -0.7%.

Other news: ACUR -26.2% ( announces the FDA advised that data from co's AVERSION hydrocodone bitartrate with acetaminophen product candidate are insufficient to support an intranasal abuse deterrence claim), DDD -5% (is offering 5,950,000 shares of its common stock in an underwritten public offering.), MNKD-4.4% (still checking), CACH -3.3% (commences $14 mln public offering of common stock), BEE -3% (announces offering of 34 mln shares of common stock; announced that it has signed an agreement to acquire the remaining 63.6 percent ownership interest in the 757-room Hotel del Coronado for $210 mln), BCRX -2.9% (commences $100 mln public offering of common stock), BXE -2.9% (announces $250 mln bought deal financing of 25.65 mln common shares at $9.75 per share; increases FY14 CapEx budget and exit guidance), CRI -2.3% (still looking around), HCN -2.2% (announces its anticipated second quarter 2014 acquisition pipeline of ~ $414 million; announces 12 mln share common stock offering), DYAX-2% (following 28% move higher yesterday--boosted by BCRX read-thru; confirmed enrollment in trial this morning), DEO -1.5% (still checking; initiated with a Hold at Kepler), BKD -0.9% (announces secondary offering of 19.4 mln common shares by certain affiliates of Fortress Investment Group), SSYS -0.3% (following DDD offering).

Analyst comments: LOW -0.6% (Lowe's downgraded to Sell from Hold at Canaccord)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: FORM +7.8%, QIHU +5.7%, TOL+3.5%, KORS +3.3%, WDAY +2.3%, SDRL +0.9%.

M&A news: AGN +2.4% (VRX increases merger proposal FORAGN).

Other news: SPEX +22.2% (continued momentum), PRAN +5.3% (continued strength), POWR +2.7% (Becker Drapkin Management discloses 8.8% active stake in 13D filing), LEJU +2.5% (Tencent Holdings discloses 16.1% active stake in 13D filing), CLVS +2.4% (following 9% move lower yesterday), SPPI +2.3% (completes enrollment in Phase 2 Trial of SPI-2012; Spectrum expects to make a Phase 3 Go/No-Go decision before the end of the year), FEYE +2.2% (still checking), PPC+1.9% (Pilgrim's Pride (PPC) may raise offer for HSH to $50/share, analysts say, according to Bloomberg real M&A column), ARIA +1.7% ( Independent discusses rumors that GlaxoSmithKline (GSK) may make GBP 1 bln bid for Ariad; ARIA also confirms will present at upcoming investor conferences), JDSU +1.6% (announces $100 mln common stock repurchase program), KBH +1.6% (following TOL results),RBS +1.4% (plans to cut mortgage business in the United states by 2/3, according to reports ), ANH +1.3% (Board of Directors authorizes co to acquire up to an additional 10 mln shares of the co's common stock through its share repurchase program), CERN +0.9% (increases share repurchase program by $100 mln), SPWR+0.7% (SunPower and Xcel Energy to Build 50-Megawatt Solar Power Plant in Colorado), GOOG +0.7% (in the process of developing prototype for self driving car, according to reports), RYN +0.5% (approves separation of Rayonier Advanced Materials; declares special dividend distribution of all outstanding shares of Rayonier Advanced Materials common stock to Rayonier's shareholders ), AAPL+0.4% (Apple and NTT DOCOMO to offer iPad in Japan starting on Tuesday, June 10; plans to decrease Beats purchase price to $3 bln from $3.2 bln, according to reports ; tgt raised to $655 from $590 at Barclays; maintain Equal Weight), CRM+0.3% (following WDAY results), URBN +0.3% (announces authorization to repurchase 10 mln shares), PFE +0.3% ( following positive Barron's mention),YHOO +0.2% (Microsoft does not plan to sell search to Yahoo (YHOO), according to reports ).

Analyst comments: TI +4.5% ( added to Conviction Buy List at Goldman), VEEV+4.3% (initiated with an Overweight at JPMorgan), FCEL +4% (resumed with a Buy at Stifel; tgt $2.90), TWTR +2.9% (upgraded to Buy from Neutral at Nomura), GTAT+2.2% (resumed with a Buy at Stifel), RKUS +1.1% ( initiated with an Outperform at BMO Capital Mkts), FSLR +0.5% (resumed with a Buy at Stifel)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: SPEX +34.7%, FORM +7.8%, QIHU +7.2%, TOL +6.6%, WDAY +4.5%, POWR +2.7%, LEJU +2.5%, CLVS +2.4%, AGN +2.4%, JD +2.3%, FEYE +2.2%, PPC +1.9%, JDSU +1.6%, RBS +1.4%, ANH +1.3%, CERN +0.9%, SDRL +0.9%, SPWR +0.7%, GOOG +0.7%

Gapping down: ACUR -16.7%, CRMT -14.1%, WTSL -13.9%, GOMO -10.5%, DDD -5%, MNKD -4.4%, CACH -3.3%, BEE -3%, BCRX -2.9%, BXE -2.9%, BCRX -2.9%, HCN -2.2%, DYAX -2%, BKD -0.9%

(WSJ) BMW Expects Strong Chinese Demand for Electric Cars

BMW Expects Strong Chinese Demand for Electric Cars
German Auto Maker Expects China to Become World's Largest Market for Electric Cars in Five Years


BMW AG BMW.XE -0.25% expects strong demand for its i series of electric cars in China, which the company expects to become the world's largest market for electric vehicles in five years.
Speaking at an event in Shanghai on Wednesday, Karsten Engel, chief executive for BMW's China operations, said BMW aims to sell up to 1,000 i3 and i8 cars in the country this year.
BMW's i series cars will go on sale in China in September, but sales will be limited to four cities due to a supply shortage and concerns over a lack of charging infrastructure.
The lack of adequate charging facilities makes electric cars a tough sell in most countries. In China, where privately owned parking spaces are few and bureaucratic hurdles many, car makers are finding the going even tougher.
In a bid to boost sales of electric vehicles in China, BMW on Wednesday unveiled plans to set up charging stations in Shanghai, the country's financial hub.
The German auto maker said it would work with State Grid Shanghai Electric Vehicle Co., a unit of one of China's top two state-owned utility providers, and Expo Shanghai Group, a state-owned property company, to install more than 50 charging stations as part of a pilot program.

(WSJ) Valeant Increases Takeover Offer for Allergan

Valeant Increases Takeover Offer for Allergan
Boosts Cash Portion of Bid, Adds Contingent Value Right

Valeant Pharmaceuticals International Inc. VRX.T -1.85% on Wednesday said it had boosted its offer to buy Botox maker Allergan Inc., AGN -1.14% increasing the cash part of its cash-and-stock bid by $10 a share to $58.30.
That puts the new offer's value at $166.16 a share, or $49.4 billion, compared with the $152.89 a share, or $45.5 billion, of Valeant's initial bid publicized last month.
Valeant also is proposing a contingent value right potentially worth up to $25 a share depending on the sales level for the eye treatment DARPin, which is still at the trial stage.
Allergan had previously rejected Valeant's initial bid, saying the offer undervalued the company. Allergan has also expressed doubts about Valeant's acquisition-heavy business model in lieu of research and development spending.
Valeant on Wednesday said it would commit to invest as much as $400 million to develop DARPin, which has faced delays.

(BN) *VALEANT RAISES CASH PORTION OF ALLERGAN OFFER 21% TO $58.30/SHR

PRN 05/28 10:00 Valeant Substantially Increases Merger Proposal For Allergan
 BN 05/28 10:04 *VRX  TO WORK WITH ALLERGAN'S BOARD TO FINALIZE DETAILS OF CVR
BFW 05/28 10:03 *CORRECT: VALEANT BOOSTS CASH PORTION OF ALLERGAN OFFER 21%
 BN 05/28 10:03 *CORRECT: VALEANT BOOSTS CASH PORTION OF ALLERGAN OFFER 21%
 BN 05/28 10:03 *VRX MAINTAINS 0.83 OF A VALEANT SHARE AS PART OF DEAL
 BN 05/28 10:02 *VALEANT RAISES CASH PORTION OF ALLERGAN OFFER 21% TO $58.30/SHR
 BN 05/28 10:02 *VRX ADDS CONTINGENT VALUE RIGHT FOR DARPIN OF UP TO $25/SHR
 BN 05/28 10:00 *VALEANT ADDS CONTINGENT VALUE RIGHT DARPIN UP TO $25.00/SHR
 BN 05/28 10:00 *VALEANT COMMITS TO INVEST UP TO $400M IN DARPIN
 BN 05/28 10:00 *VALEANT BOOSTS MERGER PROPOSAL BY $10/SHR TO $58.30
 BN 05/28 10:00 *VALEANT BOOSTS MERGER PROPOSAL FOR ALLERGAN TO $58.30
 BN 05/28 10:00 *VALEANT BOOSTS MERGER PROPOSAL FOR ALLERGAN BY $10.00/SHR
 BN 05/28 10:00 *VALEANT SUBSTANTIALLY INCREASES MERGER PROPOSAL FOR ALLERGAN
Valeant Boosts Cash Part of Allergan Bid by $10/Shr to $58.30
2014-05-28 10:03:02.167 GMT


By Colleen McElroy
     May 28 (Bloomberg) -- Commits to invest up to $400m in
Darpin.
  * NOTE: April 22 Valeant Offers $48.30 Cash, 0.83 Shrs for
    Allergan {NSN N4FKLX6KLVRH<Go>}

Link to Statement:{NSN N6A3S33MSFLS <GO>}
Link to Company News:{AGN US <Equity> CN <GO>}
Link to Company News:{VRX CN <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Colleen McElroy at +1-212-617-5057 or
cmcelroy@bloomberg.net

>>> SAP - Buy here to play a break-out - first target 58.28 (+3.5%)

- Stock is trading near strong Resistance - (downside Trend, 200d MA, 100d MA)

- Stock is trading on low level of valuation, SAP has underperformed the SX8P by 6% since January. stock already rebound from the support level (53.50) levels but still some upside

- As Europe is coming back in focus in term of investment and growth regions, SAP could be one o f the name that could catch up on the next few weeks.

- Q2 will be reported on 17th of July

- Consensus is clearly on the Buy Side (Buys 57.4% Holds 31.9% Sells 10.6%)

- Market was specualting on potential $4b takeover of Tibco (Mentionned in German Press), sector is clearly in M&A Logic (Atos, Sopra, Bull,...and many deal in the US...)

- if stock doesn't break the levels, I will add some more on correction below 55.

Laurent