TheChek News Flow

In reaction to disappointing earnings/guidance: SPRT -13.5%, TCS -9.6%, SEED -4.9%, AZZ -0.6%, MSM -0.4%.

A few Euro drug names showing weakness: SNY -1%, GSK -0.6% .

Select oil/gas related names showing early weakness: TOT -0.9%, WLT -0.8%, CAM -0.6% (Cameron downgraded to Outperform at RBC Capital Mkts; tgt raised to $68), RDS.A -0.5%, COP -0.2% (lowers Q4 production guidance to ~1475 MBOED; no long-term impact to production due to weather related downtime).

Other news: RBCN -6% (announces sale of $28.2 mln of common stock), VRS -5.3% (modestly pulling back), BLDP -4.9% (modestly pulling back), JKS -3% (still checking), LAND -2.9% (announced monthly dividend lower than prior month), OXBT -2.7% (still checking), SI -1.3% (still checking), NOK -0.9% (still checking), NKE -0.9% (still checking), MSFT -0.8% (Mulally said he will not leave for Microsoft), RSE -0.7% ( prices 7 mln shares of common stock of $19.50 per share), PGR -0.5% (still checking), FB -0.4% ( has acquired India startup Little Eye Labs, according to reports), PM -0.3% (following late weakness on potential China smoking ban).

Analyst comments: SHOO -3.7% (downgraded to Neutral from Overweight at Piper Jaffray), TWTR -3.2% (downgraded to Sell from Hold at Cantor Fitzgerald), NBIX -2.8% (downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $16), DF -1.9% (downgraded to Hold from Buy at Deutsche Bank), AMBA -1.7% (downgraded to Hold from Buy at Needham), THC -1.3% (Tenet downgraded to Market Perform from Outperform at Raymond James), GNRC -0.9% (downgraded to Hold from Buy at Stifel), ZTS -0.8% (downgraded to Equal-Weight from Overweight at Morgan Stanley), KEY -0.7% (KeyCorp downgraded to Perform from Outperform at Oppenheimer), MCD -0.6% (McDonald's downgraded to Market Perform from Outperform at Wells Fargo), LLY -0.6% ( Lilly downgraded to Underperform from Market Perform at BMO Capital), USB -0.4% (downgraded to Neutral from Outperform at Credit Suisse)

Reports Q1 (Nov) earnings of $0.67 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.64; revenues rose 6.9% year/year to $3.14 bln vs the $3.07 bln consensus.

Co confirmed downside guidance for FY14, sees EPS of $5.00-5.20, excluding non-recurring items, vs. $5.25 Capital IQ Consensus Estimate.

In fiscal year 2014, Monsanto continues to expect strong operational growth from its core business, reflected in mid-to-high teens growth in EBITDA. The co also reaffirmed free cash flow in the range of $600-800 mln for FY14, after ~$917 mln (net of cash acquired) in cash for The Climate Corp acquisition and investment to support the recently announced alliance on microbials with Novozymes.

The co expects net cash provided by operating activities to be $2.9-3.3 bln, and net cash required by investing activities to be ~$2.3-2.5 bln for FY14, including capital expenditures and acquisition-related costs.

Sales for Monsanto's Seeds and Genomics segment in the first quarter were $1.7 bln as the co achieved growth in its soybean business and strong corn portfolio upgrades, including expected trait upgrades across its Latin American portfolio.

Those results are balanced against the expected decrease in corn acres in Latin America, some acre and timing effects related to cotton in Australia, and a more normalized U.S. sales contribution pattern after the step up from last year's accelerated season. Tracking the upcoming U.S. season, the company noted the pace of its U.S. order book and strong pre-pays are tracking well with 2014 targets, reflecting a strong end to the U.S. harvest for the company's products.

In reaction to strong earnings/guidance: MU +10.9%, APOL +9.7%, STZ +7.1%, GBX +2.4%.

M&A news: PATH +31.6% (NuPathe disclosed letter from TEVA that enclosed a proposed draft of a merger agreement), FRX +13% (Forest Labs to Acquire Aptalis for $2.9 bln in Cash; Acquisition is Immediately Accretive; Accretive to FY2015 Non-GAAP EPS by ~ $0.78), CEC +9.4% (reports indicate co is exploring sale).

Select financial related names showing strength: RBS +2.1%, DB +1.7%, NBG +1.6%, ING +1.5%, IRE +1.3%, BAC +1.2% ( initiated with a Buy at Jefferies), JPM +0.5% (initiated with a Buy at Jefferies) .

Other news: CPRX +19.8% (reports 'positive' cardiac safety results of its phase 3 Product, Firdapse Tablets; The study met the pre-specified primary endpoint), ARTC +10.9% (announces entry into a deferred prosecution agreement; to pay $30 mln fine to the DOJ), MSTX +8.9% (provides enrollment update on Phase 3 'EPIC' Study Of MST-188; Enrollment on-track at 6 months with 40 U.S. sites open in 2013), MFRI +7.8% (still checking), SKUL +6.8% (announces Strategic Relationship With Toshiba (TOSBF) to Bring Leading Performance and Lifestyle Audio to Consumer Laptops), QIHU +5.7% (Marbridge suggesting Alibaba considering Qihoo investment), PSTI +4.6% (receives key placental patent in Australia), ENZY +4.3% (announces 'New Food Raw Material' certification for K-REAL krill oil in China), RNN +4.6% (initiates Phase Ib Clinical Trial of RX-3117 for Treatment of Solid Tumors; RX-3117 has Shown Efficacy Against Gemcitabine-Resistant Human Cancer Cell Lines and a Broad-Spectrum of Anti-Cancer Activity), PLUG +3.9% (continued strength), ALKS +3.8% (announces advances with its late-stage CNS Pipeline; Unveils New Aripiprazole Lauroxil Two-Month Product Candidate for Treatment of Schizophrenia; Clinical Testing to Begin in 2014), IAG +3.7% (still checking), ICEL +3.6% ( announced signing a long-term supply agreement with the Nestle Institute of Health Sciences SA. Terms of the agreement were not disclosed), RYAAY +2.7% (still checking), BBRY +2.4% (still checking), LRN +2.2% (announce intent to create new company led by Ron Packard ; appoints new CEO), F +1.4% (CEO Alan Mulally says he will not leave for Microsoft (MSFT), to stay at Ford at least through 2014, according to Associated Press tweet), SAP +1.1% (SAP AG cloud executive leaving, according to reports out), SNDK +0.9% (following MU results), C +0.1% (Citigroup considering sale of stakes in funds, according to reports).

Analyst comments: HP +3.8% (ticking higher, upgraded to Outperform at RBC Capital Mkts), RAD +3.8% (Rite Aid upgraded to Overweight from Neutral at JPMorgan), MTW +2.4% (upgraded to Overweight from Equal-Weight at Morgan Stanley), SODA +1.8% (initiated with a Buy at KeyBanc ), TCB +1.4% (TCF Financial upgraded to Outperform from Perform at Oppenheimer), RKUS +0.9% (initiated with a Outperform at Wedbush), ORMP +0.7% (initiated with a Buy at MLV ), SBUX +0.4% (initiated with a Outperform at Credit Suisse)

Gapping up: ARTC +10.9%, APOL +9.7%, MU +9.5%, CEC +9.4%, QIHU +5.7%, PSTI +4.6%, ENZY +4.3%, PLUG +3.9%, ALKS +3.8%, IAG +3.7%, ICEL +3.6%, RAD +3.6%, AZZ +3.3%, FRX +3%, SEED +2.9%, RYAAY +2.7%, LRN +2.2%, RBS +2.1%, NBG +1.6%, F +1.4%, IRE +1.3%, CSIQ +1.1%, YGE +1%, SNDK +0.9%, GBX +0.9%

Gapping down: TCS -7.8%, RBCN -6%, JKS -3%, LAND -2.9%, OXBT -2.7%, SLV -1.7%, SI -1.3%, NOK -0.9%, MSFT -0.8%