>>> US Filings, Offerings and Pricings

Filings, Offerings and Pricings

Filings:
  • LDR Hldg (LDRH) filed for a $25 mln mixed securities shelf offering and 3.8 mln shares of common stock by selling shareholders.
  • Legacy Reserves (LGCY) filed for a mixed securities shelf offering for an undisclosed amount.
  • Regado Biosciences (RGDO) filed for a $69 mln common stock offering.
  • Plug Power (PLUG) filed for a ~530.5K share common stock shelf offering by selling stockholders
Offerings:
  • EXACT Sciences (EXAS) filed a mixed securities shelf offering for an undisclosed amount; announced proposed public offering of $125 mln of common stock.
  • Venaxis (APPY) announced proposed public offering of common shares; size not disclosed.
  • Catalyst Pharma (CPRX) announced commencement of public offering of common stock.
  • BG Medicine (BGMD) announced proposed public offering of common stock.
  • 51job (JOBS) announced proposed private offering of US$150 mln convertible senior notes.
  • Central European Media (CETV) announced the commencement of the subscription period for its previously-announced fully-backstopped $341.8 mln rights offerin
Pricings:
  • Chipmos Technology (IMOS 22.91) announced that its 62.1% owned subsidiary, priced its previously announced share subscription at a price of NT$26.5/share ($0.88/share).
  • Pacific Ethanol (PEIX 17.25) priced underwritten offering of 1.75 mln shares of its common stock at $16.00/share, for gross offering proceeds of $28.0 mln

>>> ECB's Draghi: Moderate economic recovery is proceeding, continues to expect


ECB's Draghi: Moderate economic recovery is proceeding, continues to expect prolonged period of low inflation, expects to see gradual upward move in inflation - Prepared remarks
- Inflation expectations remain well anchored, based on subdued medium-term inflation outlook.
- Determined to maintain high degree of accommodation, can act swiftly if necessary.
- Reiterates ECB is prepared to use unconventional tools within its mandate if necessary.
- Looking ahead, further improvements in domestic demand should materialize.
- Geopolitical risk could negatively effect economic expectations.
- Low inflation reflects lower food, services and good prices.
- Inflation should pick up in April thanks to Easter expenditures.
- Risks to inflation outlook are broadly balanced over the medium term.
- Annual HICP should remain low in coming months before gradually rising in 2015, should hit level near 2% by end 2016.
- Subdued loan dynamics reflect the current stage of the business cycle and balance sheet adjustments.
- Eurozone credit market fragmentation must be further reduced.

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: CY +1.1% (also announced that Brad Buss, Executive Vice President and Chief Financial Officer is retiring from Cypress after eight years of service), RECN +0.3%.

Select battery related names showing strength: PLUG +5.6% (acquires ReliOn for $4 mln in stock; expected to be accretive to earnings in 2015 ), KNDI +2%, BLDP 2.5%, TSLA +1.2% (to appeal ban on NJ direct sales, according to reports out yesterday mid session).

Select oil/gas related names showing strength: NBR +1.7%, ESV +1.7%, CHK +0.8%, WFT +0.7% (approves change of jurisdiction of incorporation from Switzerland to Ireland), DVN +0.6%, NFX +0.6% (upgraded to Buy from Neutral at UBS).

Other news: AMRS +18.4% (Amyris and BASF reach agreement for strain engineering collaboration), CYTR +8.4% (to present updated Aldoxorubicin preclinical glioblastoma study results; support continued development of Aldoxorubicin as treatment for relapsed glioblastoma ), WPCS +6.6% (enters into definitive agreement to sell its Seattle Operations for ~ $2.7 mln), ISR +5.8% (continued strength), MNGA +5.4% (Expands into Georgia with New Distributor), ACTG +4.2% (announces settlements and license agreements), EJ +3.6% (announced that affiliate of its subsidiary Leju signed a partnership agreement with Zillow), MCP +3.5% (still checking), IRBT +2.3% (announces $50 mln stock repurchase program), CTRP +2.2% (announces up to $600 mln share repurchase program), ONNN +2.1% ( to Acquire Truesense Imaging for ~$92 mln in cash), MNKD +2.1% (continued strength), GILD +1.9% (announces results from Phase 3 Study of Sofosbuvir Among Hepatitis C Patients in Japan; The study met its primary efficacy endpoint), BBRY +1.8% (still checking), WBAI +1.5% (still checking), SUNE +1.3% (S.A.C. Capital cuts passive stake to 0.2%, down from 5.3% on 2/14 - amended 13G filing ), FIO +1.2% (Fusion-io collaborates with Oracle (ORCL) to double usable capacity for MySQL), ALLT +1.2% (receives $5 mln purchase order from a Tier-1 mobile and fixed operator), NVS +1.2% (announces data on 19 compounds at AACR highlight strong cancer pipeline across multiple molecular targets and biological pathways), HE+1.1% (issues statement: 'Board of directors has not cut the dividend, nor is a dividend cut currently contemplated'), PACW +1% (PACW to replace MANT in the S&P MidCap 400), CHL +1% (still checking), JKS +0.6% (signs RMB241.4 Million Loan Agreement with China Development Bank for Two PV Solar Projects), COST +0.1% (positive mention on Mad Money).

Analyst comments: OPEN +2% (upgraded to Buy from Neutral at Citigroup), MON +1.6% (upgraded to Overweight from Neutral at JP Morgan), KKR +0.5% (initiated with a Outperform at Bernstein), INTC +0.5% (resumed with an Overweight from Neutral at Piper Jaffray ), NXPI +0.3% (tgt raised to $76 from $60 at BofA/Merrill)

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: SGOC -32.2%, CACI -8.9%, GBX -8.4%, EXAR -2.5%, BZH -2.4%, (sees Q2 net orders -9%; closings -13%; Reiterates Expectation of Net Income for Fiscal 2014; announces proposed offering of $300 mln aggregate principal amount of Senior Notes due 2019), TXI -1.9%, SEAS -1.4%, CS -0.2%, (light volume).

Select financial related names showing weakness: DB -1.8% (downgraded to Neutral from Overweight at JP Morgan), USB -1.3% ( downgraded to Neutral from Buy at Goldman; removed from Conviction Buy list), NBG -2.8%, C -1.1% (Feds will open criminal investigation over C's mexico unit, according to reports; downgraded to Neutral from Buy at Sterne Agee), LYG -1%.

A few metals/mining stocks trading modestly lower: RIO -1.7%, BHP -1.4%, ABX -1.2%, GDX -1.1%, SLW -0.9%.

Other news: BGMD -16.7% ( announces proposed public offering of common stock), APPY -7.7% (intends to offer shares of its common stock in an underwritten public offering), KIN -4.3% (early weakness attributed to secondary pricing), EXAS -3.9% (files mixed securities shelf offering; announces proposed public offering of $125 mln of common stock), CPRX -3.6% (announces commencement of public offering of common stock), PEIX -2.6% (Pacific Ethanol disclosed amendments to credit facility and term loan arrangements to accommodate restart of production at its Madera, California ethanol production facility), YELP -2.6% (gets subpoenas about users commonly, according to reports), LQDT -2.6% (under continued pressure), JOBS -1.5% (announces proposed private offering of us$150 million convertible senior notes), TTM -1.4% (still checking), JNPR -1.3% (discloses it expects to reduce worldwide headcount by ~6%), MANT -1.1% (MANT to replace PACW in the S&P SmallCap 600), RYAAY -1.1% (still checking), CAT -0.6% (Jim Chanos reaffirms on CNBC that he is still short CAT), BRCM -0.5% (Emulex discloses it entered into a Dismissal and Standstill Agreement with Broadcom ), CSC -0.3% (following CACI guidance).

Analyst comments: VVUS -5.3% (downgraded to Underweight from Neutral at Piper Jaffray), XOM -0.6% (initiated with an Underperform at BMO Capital Mkts), BRCM -0.5% (resumed with a Neutral from Overweight at Piper Jaffray), LNG -0.5% (downgraded to Neutral from Outperform at Credit Suisse; tgt raised to $65 from $50)

RTR - Despite hurdles, Delphi's liability in GM recall could be tested

(Reuters) - Delphi Automotive's name does not appear on the outside of the 2.6 million vehicles recalled by General Motors Co since February, but the company is getting drawn into a mounting wave of litigation for its role in producing the faulty ignition switch that prompted the recalls.

Plaintiffs have now named Delphi, one of the largest auto parts suppliers in the world, in at least two lawsuits stemming from the recall. One was filed by a former Delphi employee whose daughter was killed in a 2013 crash involving a recalled 2006 Chevy Cobalt, the other by customers who claim the ignition problems caused their cars to lose value.

Delphi's legal exposure may hinge on how much control it had over decisions involving the design of the switch, and the terms of its four-year bankruptcy, which ended in 2009.

While Delphi made the part, GM set the specifications and ultimately approved its use, according to documents from civil litigation and congressional investigations.

Delphi spokeswoman Claudia Tapia declined to comment, except to say that the company was "working cooperatively with GM on this matter." The company has not yet filed responses to the two lawsuits. GM spokesman Jim Cain said that Delphi owned the intellectual property for the switch but declined to comment on questions of liability or lawsuits.

The February and March recalls center on concerns that ignition switches supplied by Delphi could unexpectedly turn off engines during operation and leave airbags, power steering and power brakes inoperable.

GM has linked the defect to 13 deaths and has apologized for how it handled the recall and said it is committed to helping affected customers.

BANKRUPTCY SHIELD

Even though there's no doubt that Delphi made the ignition switch, the company would likely benefit from defenses that are not available to GM, which itself faces a spate of lawsuits over the recall.

Like GM, Delphi went through bankruptcy and emerged in 2009 as a different legal entity. In purchasing "old" Delphi's assets, the new company largely shed liability for past actions. The terms of Delphi's bankruptcy asset sale preclude "successor liability," meaning that the new entity would generally not assume liabilities created by its predecessor.

GM went through a similar process and also has a so-called shield from certain kinds of liabilities. But Delphi's shield is stronger.

GM agreed to modify the terms of its bankruptcy exit to allow "new" GM to assume liability for post-bankruptcy accidents involving pre-bankruptcy products.

Delphi, which emerged from a four-year trip through bankruptcy just months later, did not.

For Delphi, "there's that potential that there's just no responsibility at all" said Larry Coben, a plaintiffs' attorney with the firm Anapol Schwartz, who represented GM product liability claimants during its bankruptcy.

To penetrate this shield, plaintiffs' lawyers could mount a two-pronged argument. First, they would have to convince a judge that Delphi was engaged in an ongoing cover-up of the defects, and second, that because of this cover-up, the court should invoke "successor liability" and allow the suits to proceed against "new" Delphi.

LONG-TIME PARTNERS

If plaintiffs can get past the bankruptcy issue, Delphi may also be able to invoke what is known as the "component parts doctrine" and argue that it doesn't bear the same responsibility as GM, since it only supplied the part and was not responsible for the overall vehicle.

But if Delphi is found to have played a meaningful role in the design decisions, "then they're liable," said Mark Geistfeld, a professor at New York University School of Law who specializes in civil litigation.

Delphi began as a GM subsidiary and was spun off into an independent company in 1999. GM is Delphi's largest customer, accounting for approximately 17 percent of its net sales, according to Delphi's latest annual report.

Delphi told congressional investigators that GM approved the original part in 2002, despite the fact that it did not meet GM's own specifications, according to a memo released by the U.S. House of Representatives Energy and Commerce Committee.

During a hearing on the recall on Tuesday, Rep. Marsha Blackburn, a Republican from Tennessee, said that both GM and Delphi engineers worked on the switch.

The two companies, Blackburn said, "have a shared responsibility and liability in this entire issue."

But that's easier said than proved in court.

"Ultimately, it would be up to a jury," said Lance Cooper, a plaintiffs' attorney from Georgia who is involved in litigation against GM. "If Delphi makes the switch and they know it's a bad switch, they could point the finger at GM, but that's not going to keep them out of a courtroom."