eBay shares spiking to highs; Hearing rumors that Icahn may announce stake
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Momenta May Attract Hedge Funds in 2014: Bernstein 2013-11-06 14:03:06.196 GMT
By Cristin Flanagan Nov. 6 (Bloomberg) -- Chances of approval for a Momenta generic of Teva’s MS drug Copaxone look to be increasing, writes Bernstein analyst Aaron Gal, MNTA may attract significant hedge- fund interest at start of 2014. * Street not assuming take-out or chance of royalty structure separation from oper co. similar to Theravance * Now sees 50% chance Mylan will co-introduce generic in 2014 * PT raised to $24 from $20 vs Bloomberg avg PT $20 * NOTE: Nov. 4, Teva asked Supreme Court to stay appeals court ruling, while co. appealed ruling: Reuters * NOTE: In July Gal wrote, generic Copaxone in May 2014 may push Momenta to $30
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--Editor: Stefanie Batcho-Lino
To contact the reporter on this story: Cristin Flanagan in New York at +1-212-617-8919 or cflanagan1@bloomberg.net
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Filings, Offerings and Pricings
Filings:
* Diamondback Energy (FANG) filed for a mixed securities shelf offering for an undisclosed amount and a secondary offering of common stock consisting of ~17.46 mln shares by selling security holders. Co also launched a secondary common stock offering; Gulfport Energy (GPOR) selling 2 mln shares. * Bio-Path (BPTH) filed for a $100 mln mixed securities shelf offering. * Gulfport Energy (GPOR) filed for a mixed securities shelf offering for an undisclosed amount; co also launched a public offering of 6.5 mln shares.
Offerings:
* ZELTIQ (ZLTQ) Aesthetics announced proposed public offering of 4.5 mln shares of common stock by selling stockholders. * InvenSense (INVN) to offer $125 mln convertible senior notes due 2018. Boise Cascade (BCC) announced launch of public offering of 8 mln shares of its common stock by selling stockholder. * ServiceNow (NOW) announced it plans to offer $500 mln convertible senior notes due 2018. * Seacor Hldgs (CKH) announced offering of up to $200 mln of its convertible Senior Notes due 2028. * Seaspan (SSW) announced a pricing of $50 mln public offering of 7.95% series D cumulative redeemable perpetual preferred shares. * Kite Realty (KRG) announced a public offering of 32 mln common shares of beneficial interest. * Ocera Therapeutics (OCRX) announced that it has obtained commitments to purchase common stock and warrants in a private placement. Gross proceeds from the private placement are expected to be $28 million before deducting fees and expenses
Pricings:
* Zogenix (ZGNX 2.41) priced an offering of ~26.66 mln shares at $2.25/share. InterMune (ITMN 13.73) priced an offering of 6.5 mln shares at $13.00/share. * Layne Christensen (LAYN 17.64) priced an offering of $110.0 mln aggregate principal amount of 4.25% Convertible Senior Notes due 2018. * NGL Energy Partners (NGL 31.53) agreed to sell ~ $240.0 mln of its common units in a private placement at a price of $29.59/unit. * Seacoast Banking (SBCF 2.27) priced a public offering of ~34.883 mln shares of its common stock has priced at $2.15/share. * ChannelAdvisor (ECOM 34.62) priced a follow on offering of 5 mln shares at $34/share.
Bank of America Corp CEO: Rate structure to remain low, sees US 2014 GDP around +2.5%, economy is moving forward - BoA/Merrill conference
- US equities are probably a little bit overpriced right now, earnings season is adding fuel to the fire. - Consumer spending trends are solid.
Polo Ralph Lauren beats by $0.03, reports revs in-line; guides Q3 revs in-line; raises low end of FY14 rev guidance; sees margins at low end of previous guidance; raises quarterly dividend 12.5% (171.19 ) Reports Q2 (Sep) earnings of $2.23 per share, $0.03 better than the Capital IQ Consensus Estimate of $2.20; revenues rose 2.8% year/year to $1.92 bln vs the $1.91 bln consensus.
Co issues in-line guidance for Q3, sees Q3 net revs +8-10% to ~$1.99-2.03 bln vs. $2 bln Capital IQ Consensus, including a 200 basis point net negative impact from foreign currency translation and discontinued businesses. Operating margin for the third quarter of Fiscal 2014 is expected to be ~equal to the comparable prior year period as a lower gross margin is essentially offset by anticipated operating expense leverage despite continued investments to support the Company's strategic growth objectives.
Co issues in-line guidance for FY14, raises FY14 net revs to +5-7% to ~$7.29-7.43 bln (from +4-7%) vs. $7.35 bln Capital IQ Consensus, includes an ~200 basis point net negative impact from foreign currency translation and discontinued businesses. Based on an intensification of investments in the Company's global retail operations in the second half of the year, operating margin for Fiscal 2014 is expected to be at the low end of its outlook, which called for a 25-75 basis point contraction from the prior year's record 16.2%. As a reminder, the anticipated decline in Fiscal 2014 operating margin is due to the integration of certain formerly licensed merchandise categories and geographic regions to directly controlled operations, accelerated investment in the Company's long-term growth initiatives and unfavorable foreign currency effects.
Co also announced that its Board of Directors declared a 12.5% increase in the regular quarterly cash dividend on the Company's Common Stock.
"We successfully transitioned key operations to new technology platforms and made great strides with our global store expansion and e-commerce efforts. Our first half revenues have actualized at the high end of our expectations and profit margins are in line with our plans."
Gapping down
In reaction to disappointing earnings/guidance: CRIS -19%, TNGO -14.6%, SZYM -13.1%, TRNX -12.6% (also downgraded to Sector Perform from Outperform at RBC), PHMD -11.6%, VIP -11.4%, TSLA -11.3%, ZAGG -10%, GEVO -8.4%, MELI -8.1%, CTRP -7.8%, VVUS -7.2%, ANF -7.1%, VCLK -6.7% (also announces intent to pursue divestiture of Owned & Operated websites segment ), URS -6.5%, MCEP -6.2%, ( downgraded to Mkt Perform from Outperform at Raymond James), LLNW -5.6%, QEP -5.3%, MED -5.2%, DVA -4.5%, HUM -4.2%, KND -4.1% (light volume), ENPH -3.6%, (light volume), JAZZ -2.8%, LYV -2.6%, HFC -2.4%, PZZA -2.3%, FOXA -2%, BLMN -1.5%, (light volume), EFC -1.5%, (light volume), ODP -0.7% (OfficeMax announces Departure Of Board Members DePinto And Montgoris following proposed merger of co and Office Depot).
Other news: STP -33.3% (files an application for a provisional liquidation with the Grand Court of the Cayman Islands, the jurisdiction of its incorporation), CYTX -9% (modestly pulling back premarket; may be attributed to Adam Feuerstein report), UNIS -7.4% (Unilife Corporation issues letter to stockholders regarding securities class action lawsuit; says co 'is in full compliance with all applicable regulatory requirements' ), ZLTQ -6.1% (announces proposed public offering of 4.5 mln shares of common stock ), ARO -4.9% and AEO -4.3% (following ANF guidance), ITMN -3.9% (prices 6.5 mln shares at $13.00 per share), SAND -2.8% ( announces record gold sales in Q), BCC -2% (announces launch of public offering of 8 mln shares of its common stock by selling stockholder), NOW -0.7% (to Offer $500 Million Convertible Senior Notes due 2018), BP -0.6% (still checking).
Analyst comments: VVUS -4.4% (downgraded to Neutral from Buy at BofA), AER -2.6% (downgraded to Underperform from Buy at BofA), UN -1% (downgraded to Neutral from Buy at Nomura), BWLD -0.7% (downgraded to Hold from Buy at Miller Tabak), RYL -0.4% (downgraded to Buy from Strong Buy at ISI Group).
Gapping up
In reaction to strong earnings/guidance: SYNC +16.3%, REGI +13%, BEAT +12.2%, BCOR +10.6%, SCMP +8.8%, HSP +7.5% (light volume), IMPV +7.2%, (light volume), MYGN +7.2%, Z +6.5%, ANV +6.3%, CBEY +6.3% (light volume), SUNE +6%, AU +5.9%, YY +5.8%, RL +5.7%, MKTG +5.6%, AUXL +5.6%, SREV +5.6% (light volume), ININ +5.5% (Interactive Intelligence upgraded to Outperform from Market Perform at Northland), GPOR +5.2% (also Diamondback Energy launches secondary common stock offering; Gulfport Energy selling 2 mln shares), MGIC +5.2% (thinly traded), ING +4.5%, TWX +3.8%, CHTP +3.5% (light volume), QLTY +3.4%, (light volume), SPA +3.4%, (thinly traded), SALE +3%, PWE +2.9%, SGEN +2.8% (light volume), SD +2.8%, FTR +2.7%, OPEN +2.7%, CHK +2.3%, KW +2.1%, NYMT +1.9% (light volume), TM +1.9%, MEET +1.8%, FOSL +1.5%, RGR +1.4%, RMTI +1.1%.
M&A news: MSPD +68.4% (Mindspeed to be acquired by MACOM Technology Solutions for $5.05 per share).
Select financial related names showing strength: CS +3.6%, BCS +2.9%, UBS +2.3%, DB +1.7%, SAN +1%, LYG +0.6% (plans to open internal investigation into currency trading practices, according to reports).
Select metals/mining stocks trading higher: HL +3.6%, GFI +2.3%, SLW +1.6%, RIO +1.3%, GDX +1.3%, SLV +1%, NEM +0.9%, BHP +0.8%, BBL +0.6%, GLD +0.6%.
Select oil/gas related names showing strength: SDRL +1.8%, ESV +1.6% ( increases quarterly cash dividend 50% to $0.75 from $0.50 per share), TOT +1.2%, RDS.A +1.1%, STO +0.9%.
Other news: OXBT +9.2% (continued momentum), NQ +7.1% (still checking for anything new), DVAX +5.3% (RA Capital discloses 9.9% passive stake in 13G filing), CVS +3.6% (positive Barron's mention), NOK +3.2% and ALU +2.2% (still checking), ECOM +2.5% (ChannelAdvisor prices follow on offering of 5 mln shares at $34 per share), DDD +2.3% (3D Systems and Sindoh Ink Agreement to Distribute Consumer 3D Printers in South Korea), ATVI +2.2% (Sells More Than $1 Billion of Call of Duty: Ghosts into Retail Worldwide as of Day One), WYNN +1.6% (announces $3 cash dividend; increases quarterly dividend 25% to $1.25 from $1 per share), .
Analyst comments: VRNG +4.3% ( initiated with a Buy at Dawson James), RYAAY +3.6% (upgraded to Buy from Neutral at Nomura), SCCO +1.5% (upgraded to Market Perform from Underperform at Cowen), CAH +0.9% (upgraded to Buy from Neutral at Sterne Agee)
Abercrombie and Fitch shares fall 9% following disappointing guidance Abercrombie & Fitch (ANF $34.90 -3.41) issues guidance the third quarter, sees EPS at higher end of $0.40-0.45, excluding non-recurring items which is line with expectations with revenues of $1.033 billion which is below expectations. Total comparable sales for the quarter, including direct-to-consumer sales, decreased 14% with comparable U.S. sales decreasing 14% and comparable international sales decreasing 15%. Total direct-to-consumer comparable sales increased 11% for the quarter. Third quarter comparable sales are compared to the thirteen-week period ended November 3, 2012. The company issued downside guidance for the fiscal year 2014 with EPS of $1.40-1.50 which is below expectations. Based on a projected low double digit decrease in comparable sales for the fourth quarter, the Company expects full year adjusted non-GAAP earnings per diluted share to be in the range of $1.40 to $1.50.
This projection also assumes significant gross margin rate erosion in the fourth quarter as the Company clears through excess inventory. The company also announced that it plans to close all of its stand-alone Gilly Hicks stores. The co expects to substantially complete the closures by the end of the first quarter of Fiscal 2014. Store closures in Europe are subject to applicable notice and consultation provisions. The Company will continue to offer Gilly Hicks branded intimate apparel through its Hollister stores and direct-to-consumer business. In conjunction with the decision to close Gilly Hicks stores, the Company amended its existing Credit and Term Loan Agreements effective November 4, 2013.
The amendments allow the Company to exclude from its calculation of the minimum coverage and maximum leverage ratios up to $60 million of cash charges associated with the Gilly Hicks restructuring. In addition, the required minimum coverage ratio will be temporarily reduced through the second quarter of the 2015 Fiscal year. "Our results for the third quarter reflect continued top-line challenges, with overall spending among younger consumers remaining weak. Until we have seen a clear trend improvement, we are continuing to take a cautious approach into the fourth quarter and are working to end the year with appropriate levels of fall carryover inventory. During the quarter, we completed our long-term strategic review, and believe that we now have a clear roadmap for sustainable growth in sales, profitability and return on invested capital. We look forward to sharing the results of our review in our analyst meeting." The Company will host an analyst meeting to discuss the results of its long-term strategic review on Wednesday, November 6, 2013.
Parker Drilling beats by $0.03, beats on revs
Reports Q3 (Sep) earnings of $0.12 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.09; revenues rose 43.9% year/year to $237.8 mln vs the $231.35 mln consensus.
Outlook: "We are encouraged by recent forecasts of long term economic and industry trends, supporting demand growth in some of our key markets and the need for the innovative, reliable and efficient products and services we provide. In the more immediate future, we expect our rental tools segment to benefit from further growth of its international operations and its expanded presence in the growing Gulf of Mexico offshore drilling market. This may be tempered by effects of continued softness in U.S. land drilling markets. We expect drilling demand in the Gulf of Mexico's inland waters to improve from current levels and support solid results from our barge drilling business. Our success in securing continued work for our international rig fleet will determine our ability to maintain and build on the contributions from this business. We expect tender activity and contract renewals to provide ample opportunities to recontract rigs as they come to term, as well as further strengthen our international drilling rig fleet utilization. "We continue to make progress in strengthening our business and ability to meet the needs of our customers. We see many opportunities ahead and remain focused on delivering reliable performance and value to our stakeholders," Mr. Rich concluded.