>>> Long Teliasonera Short TELE 2

I would Buy TLSN here & Sell Tele 2 - playing a 7% move, support level on the spread 3.5% lower

{TLSN SS Equity TEL2B SS Equity GRT D}

* Tele2 - Downgraded by Citi today from Buy to Neutral.
The credibility of the company has suffered a few blows in recent months, after the medium term guidance had to be revised and the outcome of the Norwegian auction has seriously damage the value of the asset. However, the guidance appears to be achievable and that could buy Tele2 enough time to execute on portfolio management, as it has done in the past. We believe the investment case is predicated on delivering in that front, which makes Tele2’s
investment case binary.

* Teliasonera
- Teliasonera is trading near lows vs peers, consensus has been quite negtive for few months, we couls see some improvement as the sector is trsding better
- On a chart basis the stock has rebound from good support 46.75/85 levels, we couls quickly see the stock on the 50 levels


Valuation levels look interesting to play this trade

FT : European regulators warn as risky loans rise above bubble peak

Debt investors are abandoning normal creditor protections on European leveraged buyout loans as they snap up riskier securities at a faster rate and in greater proportions than at the peak of the credit bubble.
Growing volumes of euro-denominated “covenant light” loans have now aroused the interest of European regulators, who are increasing their monitoring of lenders’ behaviour.

Nearly €8bn of these “cov-lite” loans were arranged last year, exceeding the €7.73bn previous peak of 2007, according to data compiled by S&P Capital IQ. Almost €2bn have been issued so far this year, representing more than a quarter of all leveraged loans sold to institutional investors, up from a fifth last year and 7 per cent in 2007.
Cov-lite loans remove the early warning signs that lenders would traditionally expect when extending credit. These include the obligation to maintain certain performance and financial ratios, which if breached trigger a default, allowing banks to request cash injections from shareholders, or a debt restructuring.
The revival of these riskier loans – which fell out of favour during the financial crisis – has alarmed some in the industry who fear a repeat of the excessive risk-taking that brought the global banking system to the brink of collapse.
Jon Moulton, the veteran British private equity executive, told the Financial Times: “Cov-lites are pretty dangerous pieces of paper for those who advance the loan.”
Recent financings have included Goldman Sachs, Nomura, Crédit Agricole and Natixis underwriting a €1bn cov-lite debt package for Ceva Sante Animale, a French animal drugmaker, which was one of the largest cases of that type of debt from a European company this year.
“Europe’s macroeconomic environment continues to improve and investors are more comfortable on sovereign risk,” Michael Masters, a London-based director at Barclays’ leverage finance syndicate, said. “Investors continue to search for yield right across the credit spectrum.”
The trend is mirroring a buoyant US market, which private equity groups have predominantly used so far to fund their European leveraged buyouts. Dollar-denominated cov-lite loans to US and European companies reached a record $260bn in 2013, or 57 per cent of the total volume, and 69 per cent more than in 2007.
This has prompted the Federal Reserve and the Office of the Comptroller of the Currency to warn that the lack of “meaningful” covenants was a sign that “prudent underwriting practices have deteriorated”.
They have in mind memories of banks including Citigroup – whose chief executive once told the Financial Times that in matter of leveraged loan frenzy, “as long as the music is playing, you’ve got to get up and dance” – taking big writedowns after markets tightened in 2007 and 2008.
In Europe, the total volume of leveraged loans is still lower than in 2007, leading to increased competition among underwriting banks.
“We haven’t had enough volumes of new deals that would allow investors to do some picking and choosing. There are so few issuances that banks are willing to be more aggressive,” Paul Gibbon, managing director at UBS’s leveraged capital markets unit, said.
In the UK, the Bank of England’s Prudential Regulation Authority has been “keeping a watching eye on developments”, according to a person familiar with the situation, though it is not doing any specific programme of work in the area. “The strength and depth of erosion of covenants in bank lending is not as strong a seen in the US,” said the person.
The one UK lender attracting particular attention is Barclays, because of its large leveraged loan business in the US. The PRA is helping US regulators to assess the riskiness of the bank lending to private equity in the North American market, as part of a wider programme being done on all lenders operating in the US.
“While the issue of a re-emergence of lending to leveraged clients is becoming a general concern requiring close monitoring, at this moment there is little evidence that would support such concern about the lending practices of European banks,” the European Central Bank said.

(BFW) *STADA CUTS 2014 FORECAST ON RUSSIA, UKRAINE

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BN 03/24 13:03 *STADA 2013 SALES EU2.014B VS EU1.838B BFW 03/24 13:03 *STADA CUTS 2014 FORECAST ON RUSSIA, UKRAINE BN 03/24 13:02 *STADA CUTS 2014 FORECAST ON RUSSIA, UKRAINE BN 03/24 13:02 *STADA 2013 ADJ EBITDA UP 13% TO EURO 415.2M BN 03/24 13:01 *STADA ADJUSTS 2014 FORECAST BN 03/24 13:01 *STADA DIV TO INCREASE BY 32% - 2014 OUTLOOK ADJ BN 03/24 13:01 * STADA ARZNEIMITTEL SUCCESSFUL FINL YR '13 - ADJ EBITDA REACHES

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DGAP-Adhoc: STADA Arzneimittel AG: Successful financial year 2013 - Adjusted EBITDA reaches new record high - Dividend to 2014-03-24 13:01:37.823 GMT

DGAP-Adhoc: STADA Arzneimittel AG: Successful financial year 2013 - Adjusted EBITDA reaches new record high - Dividend to increase by 32 percent - 2014 outlook adjusted

STADA Arzneimittel AG / Key word(s): Miscellaneous

24.03.2014 14:01

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: SOL +11.1%.

M&A news: ICLD +11.6% (to acquire cloud backup solutions provider VaultLogix), .

Select solar related stocks trading higher: RGSE +5.5%, ASTI +3.6%, TSL +2.6%, .

Battery related names are trading higher: FCEL +7%, BLDP +6.2%, PLUG +4.4%,

Other news: NUS +22.7% (provides update on China regulatory reviews), LGF +8.7% (Divergent boost), MNGA +8.3% (continued strength), HLF +7% (to nominate three additional Icahn designees to Board ; also following NUS news), NVMI +5.8% (approves $12 mln share repurchase program, to commence following the expiration of the current quarterly black-out period), EMKR +5.2% ( awarded solar panel manufacturing contract), VC +5.1% (ticking higher, Barron's profiles positive view on Visteon), YZC +3.2% (disclosed provision of financial guarantee to the co's wholly-owned subsidiaries and granting of authorization to Yancoal Australia and its subsidiaries to provide Guarantees for the daily operation of the subsidiaries of Yanzhou Coal Minging in Australia; l upgraded to Overweight from Neutral at JPMorgan, upgraded to Neutral from Underperform at Credit Suisse), CHL +2.8% (modestly rebounding from last week's earnings weakness), GTAT +2.1% (still checking), MDR +2.1% (Barron's profiles positive view on McDermott ), RMTI +1.4% ( Submits New Drug Application for Triferic for the Treatment of Iron Replacement in Chronic Kidney Disease Patients on Hemodialysis), CELG +1.2% ( OTEZLA demonstrates clinically meaningful and sustained improvements in skin, nail and scalp of adult patients with moderate to severe plaque psoriasis), AAPL +1.2% (Apple in discussions with Comcast regarding streaming TV service, according to reports; Barron's profiles positive view on Apple), HSBC +1.1% (still checking for anything specific), BIDU+1.1% (following positive MadMoney mention), DRYS +0.9% (Maersk and other container cos will cut costs amid overcapacity, according to reports), DIS +0.8% (Walt Disney's Frozen has generated $1 bln in global sales, according to reports), HPQ +0.8% (following positive MadMoney mention), WBAI +0.3% (plans to add social more social networking features, according to reports), AMZN+0.2% (NASDAQ plans to rethink Amazon cloud partnership, according to reports).

Analyst comments: SSYS +3.3% (upgraded to Overweight from Neutral at JP Morgan), YELP +1.9% (target raised to $100 from $87 at Jefferies; upgraded to Mkt Outperform from Mkt Perform at JMP Securities), AXLL +1.8% (light volume, upgraded to Buy from Neutral at BofA/Merrill ), VMW +1.6% (upgraded to Buy from Neutral at Sterne Agee), BSX +1.4% ( upgraded to Outperform from Mkt Perform at Bernstein), SYMC +1.1% (upgraded to Outperform from Market Perform at BMO Capital Markets), ROST +0.7% ( upgraded to Outperform at RBC Capital Mkts),

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: DRAM -6.2%, GALT -3.3% (light volume), ALQA -3.3%

Metals/mining stocks trading lower: MUX -2.8%, GOLD -1.6%, GG -1.4%, HL -1.2%, ABX -1%, GLD -0.8%, SLV -0.5%.

Other news: GDP -6.9% (announces results of the CMR 8-5H-1 well and provides operational update in the Tuscaloosa Marine Shale; well has achieved a peak 24-hour average production rate to date of 950 BOE per day), CTRP -3.2% (swiftly responds to temporary potential internet security ris), NBG -2.2% and DB -1% (still checking), ALV -1.8% (elects New Board Member), ALU -1.8% (still checking), TWTR -0.8% (Twitter to pull #music app from Apple (AAPL) app store, according to reports), GM -0.6% (ongoing inquiry into defects; NYT Friday reported Feds are looking into the potential for bankruptcy fraud by not disclosing defects).

Analyst comments: MTW -2.1% (downgraded to Underperform from Hold at Jefferies), SUSS -1.7% (downgraded to Market Perform from Outperform at Wells Fargo), L -0.5% ( downgraded to Hold from Buy at Deutsche Bank), XLS -0.5% (downgraded to Hold from Buy at Jefferies), TIF -0.4% (removed from Conviction Buy list at Goldman)

>>> US Filings, Offerings and Pricings

Filings, Offerings and Pricings

Filings:
  • Endeavour Intl (END) filed for ~2.917 mln share common stock offering, warrants to purchase ~729.5K shares at strike price of $5.292, ~729.5K shares underlying the warrants, $17.5 mln of 6.5% convertible senior notes, ~3.753 mln shares underlying the 6.5% convertible senior notes.
  • KonaRed (KRED) filed for a ~10.769 mln share common stock offering by selling stockholders.
  • Rand Logistics (RLOG) filed for a $8.2 mln common stock offering.
  • GlaxoSmithKline (GSK) filed for a mixed securities shelf offering for an undisclosed amount.
  • Galectin Therapeutics (GALT) filed for a $100 mln common stock offering and a 500K share common stock offering by selling stockholders.
  • Karyopharm Therapeutics (KPTI) filed for a $115 mln common stock offering.
  • SeaWorld Entertainment (SEAS) filed for a 15 mln share common stock offering by selling stockholders.
Offerings:
  • ING (VOYA) announced that underwriters of ING Group offering of ING U.S. common stock to acquire ~4 mln additional shares.
  • Mercer (MERC) announced that it has commenced an underwritten public offering of 7 mln shares of its common stock.
  • 58.com (WUBA) announced proposed public offering by the co and certain shareholders of ADSs, each representing two Class A ordinary shares of the co; co proposes to offer 4 mln ADSs and the selling shareholders propose to offer an aggregate of 4 mln ADSs.

(NY Post) Is late-night TV’s MagicJack the next WhatsApp?

Link to Article : {http://bit.ly/1eEJ9Lv} // {CALL US Equity DES <GO>}

When Facebook forked over $19 billion for the Whats­App messaging service, visions of a similar mother lode seemed to have danced in the executive suites of at least one late-night TV ad competitor.
And what is this cutting-edge communications hotbed, this First Runner-up in the Next Big Thing Hipness Pageant? Some Silicon Valley startup, some Brooklyn hard-charger all full of creativity, attitude and ironic fedoras?
Um … it’s MagicJack. Of West Palm Beach, F-L-A.
At first blush, this sounds like Ronco’s Pocket Fisherman angling for a bidding war between Google and Apple.
A cable viewer who has not seen — repeatedly — commercials and infomercials for the device that connects to a computer or router to enable voice calls over the Internet … well, that cable viewer may not in fact technically exist.
These would be ads that your grandmother would call low-tech.
But three weeks after the Feb. 19 WhatsApp deal, executives at MagicJack VocalTec dedicated part of their quarterly earnings call to point out the similarities between part of MagicJack’s business and WhatsApp’s, i.e., a growing number of subscribers for a mobile phone application that allows users to communicate for free. Asked a week later whether he was looking for a buyer, MagicJack Chief Executive Officer Gerald Vento called it a “very appropriate question” before going on to say that he’s “never worried about exit strategy.”
An exit strategy?
But you know what? MagicJack shares have more than doubled this year as the company reported better-than-expected fourth-quarter earnings, and hedge-fund manager Whitney Tilson named it one of his picks.
“I’m not surprised that a company like MagicJack would want to ride on the hype of the Facebook acquisition,” said Brian Blau a Gartner’s research director. The Whats­App deal “raises the value of messaging, and it raises it to the height that maybe wasn’t thought of before, or wasn’t thought of as realistic.”
MagicJack is revamping its mobile app to benefit from the same business model of free communication services offered by WhatsApp.
WhatsApp has more than 450 million members, with 1 million users being added daily. MagicJack said that registered users of its free app jumped 23 percent, to 6.9 million, in the fourth quarter.
OK, bit of a gap there. But still … an exit strategy might be worth thinking about.