>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: SMT +38.7% (also is taking action to exit the optical touch sensor business for desktop displays), UEPS +20.9%, ATHN +17.1%, LCI +14%, EXPE +12.8%, IMN +11.8% (ticking higher), BEBE +11%, CYTK +10.1% (light volume), OUTR +9.9% (announces new RedBox President and leadership transitions for Coinstar and ecoATM; downgraded to Market Perform from Outperform at Northland Capital after announcement of a $350M Dutch Tender), UBNT +8.7%, ATVI +8.3%, LQDT +8%, MXL +6.4%, ADEP +6.2%, LSCC +5.2%, (light volume), MSG +5.2%, ONNN +4%, NWSA +3.9%, GPS +3.8%, MCO +3.8%, STO +3.2%, NTGR +2.5%, ECOM +2.3%, MT +2.1%, MITK +1.9% (light volume), CLCT +1.8% (light volume), SSD +1.3%, APO +1.3%, WWWW +0.7% (light volume), TPX +0.6% (light volume).

A few 3-D print names are modestly rebounding (light volume): DDD +2.7%, SSYS +2.2%, XONE +1.6%

Other news: PDO +28.6% (the co and Yuma Energy announce merger agreement), ARIA +7.5% (Sarissa Capital Management (Carl Icahn's past healthcare lieutenant) wants two Board seats on ARIA Board, according to reports), GTAT +6.9% (related to reports that Apple aquired sapphire tools), MU +1.8% (still checking), AAPL +1.8% (Apple has repurchased $14 bln in shares since earnings report, Tim Cook says, according to reports), PCLN +1.6% (following EXPE results), MYGN +1.4% ( BRCA Patent Owners and Gene by Gene Resolve Patent Suit; Gene by Gene will cease selling or marketing clinical diagnostic tests within N. America that include analysis of the BRCA1 and/or BRCA2 genes as a standalone test or in conjunction with gene panels), GM +1.3% (favorable mention on Mad Money), TWTR +0.9% (modestly rebounding), AMZN +0.8% (announces content licensing agreement with Twentieth Century Fox television distribution that will make Prime Instant Video the exclusive online-only subscription home for streaming all past episodes of The Americans), IIVI +0.8% (announces $20 mln share repurchase program), T +0.8% ( DailyMail discusses that takeover speculation continues in VOD despite AT&T (T) denial, according to reports), QIHU +0.7% (Qihoo 360 Tech. and D Link introduce smart WLAN router, according to reports), GOOG +0.6% (Google plans to own $750 stake in Lenovo (LNVGY) following Motorola deal closure, according to reports), TRIP +0.5% (following EXPE results), SDRL +0.5% (enters into forward agreement for 81,828,500 shares of Sevan Drilling , AAL +0.5% (favorable mention on Mad Money), FB +0.4% (following LNKD results), SODA +0.4% (modestly pulling back), KO +0.4% (Barron's profiles positive view on Coca Cola (KO) following Green Mountain Coffee (GMCR) deal. ), CTRP +0.3% (following EXPE results), HTS +0.2% (American Capital Agency (AGNC) discloses 8.5% passive stake in 13G filing ).

Analyst comments: ANR +1.9% (upgraded to Neutral from Sell at Citigroup), SBUX +1.6% (upgraded to Outperform from Market Perform at Wells Fargo), MYGN +1.4% (upgraded to Neutral from Underperform at Credit Suisse ), SNE +1.1% (upgraded to Buy from Hold at Jefferies), C +1.1% (added to US 1 Focus List at BofA/Merrill ), NFLX +1% (Transferring coverage of Netflix and establishing a Buy rating and a $475 target - Stifel)

(Mediapart) Nuclear: a wear problem threatens nearly half of the reactors

Nuclear: a wear problem threatens nearly half of the reactors (PDF attached french article)

Nearly half of the nuclear reactors are threatened by a fuel cladding wear phenomenon, according to an internal document that EDF has acquired Mediapart. The electrician has launched a real tussle with the Nuclear Safety Agency on the subject.

Nearly half of the nuclear reactors in France is threatened by a wear phenomenon that affects fuel cladding, corrosion victims with repeated use, according to an internal document that EDF has acquired Mediapart. Authority of safety of nuclear power (ASN) envisages measures operating restriction to prevent the risk of rupture of the metal casings. Their behavior is essential for the functioning of nuclear power plants as fuel cladding provide the first safety barrier system. But these provisions are challenged by the group that considers too restrictive. The ASN must render an opinion on this subject in the coming days.

The document which has survived from the anonymous, is a tracking form Technical Alerts nuclear fleet, prepared by the Operations Engineering (UNITE) nuclear generation division (DPN) Electrician unit. It covers the week ending December 13, 2013 (see below).


From page 7, you can read several paragraphs on a corrosion problem on the Zircaloy cladding, metal alloy zirconium present in 25 reactors National Park - which has 58 in all, spread across 19 plants. This material is presented as "more susceptible to corrosion" as newer products, also used in the French plants. It is therefore subject to special monitoring, guided by the established models What the nuclear safety experts. Specifically, 13 slices are involved 1,300 megawatts (MW), among the most powerful, and 12 900 MW, one of the oldest.

Schéma sur le fonctionnement d'un réacteur nucléaire (Wikipedia). Cliquer pour agrandir
Diagram of the operation of a nuclear reactor (Wikipedia).
Click to enlarge
The problem is that the operator has found that the corrosion extended to deeper than expected on some duct thicknesses. So it had to change its reference model. But these new measures are rejected by the ASN considers that they are "not acceptable", as can be read in this document. Consequently, the authority to "consider the establishment of" operating restrictions on fuel "in order to limit radiation, thus reducing the thickness of maximum cladding corrosion."

In other words, it may request a precautionary EDF to use less fuel and its time to replace them more often with new equipment. Exactly the opposite of what is today the electrician, which lengthens the period of use of fuels, increasingly loaded uranium 235 to increase its nuclear production.

"On the razor's edge"

Coupe métallographique d'un crayon de combustible issu d'un réacteur (©IRSN). Metallographic section of a fuel rod from a reactor (© SNRIs).
A showdown begins, and we discover the intensity over the paragraphs. EDF proposes raising the maximum corrosion threshold to 108 microns, or 0.108 millimeter. A trifle? Not really concerned ducts do not measure more than 0.57 millimeter, or even five times the thickness corroded "It's a lot, it is a problem.. This means that between a fifth and a sixth part of the sheath is "Monique Sené analysis physicist, founder of the Group for scientific information on nuclear energy (GSIEN).

But meanwhile, the ASN intends to impose more drastic restriction of 0.1 millimeter. A view rejected by EDF, who openly expresses, "this value is the historical landmark value unrelated to any physical justification." Above all, such a limit would "drastically reduce lengths of campaign", that is to say, periods of use of fuel in the reactors 13 1300 MW. The group may therefore need to review thoroughly the management of uranium fuel at the price of substantial additional costs.

Typically, a fuel rod remains four years in a reactor, which corresponds to the three "rings" of EDF typology. They are then removed during maintenance shutdowns, to be returned to treatment Areva La Hague plant. In the heart of the reactors, new and older assemblages are mixed, according to scientific calculations neutron (see below examples of these "managements"). Longer fuels are used less often they should be changed, and thus stop the reactors. It is a measure of budgetary savings.

Exemple de plan d'assemblage dans un cœur de réacteur, mêlant combustibles neufs et anciens. Example of assembly plan a heart reactor, mixing old and new fuels.
But this is not all. Car Accident, corrosion sheaths could aggravate the situation. Normally, nuclear reactors are controlled by control rods. They determine its power rising or dropping into the machine. If one of them suddenly pops as a result of too much pressure in the system, it is the beginning of a potentially serious accident - he did is never produced such until here in France. The temperature inside the reactor and then greatly increases very quickly. The fuel rods are subjected to a shock treatment and can be deformed. Sheaths corroded might break from 0.08 mm (80 microns) corrosion alert ASN, who beyond, "the safety demonstration of holding the pencil rod ejection is not established."

Photographies de tronçons de zircaloy 4, à différents stades d'oxydation (©IRSN). Cliquer pour agrandir Photographs of sections of Zircaloy 4 at different oxidation stages (© IRSN). Click to enlarge
But then again, EDF is resisting and considers that "the value of 80 microns is reached during the second half of the cycle (between 60 and 80% of the natural length of campaign), this limit can not become a constraint on the length of campaign. " In other words, since it is known that the corrosion thickness reaches this before the end of the planned duration of use, we can not refrain from crossing the threshold. In response, the ASN calls EDF a safety demonstration "acceptable." And could accept a slow operation, "base", that is to say without changing the reactor power during the second round of fuel use. "This is an operation on the razor's edge, Monique analysis senna, accident and ejection of clusters, there is no leeway. It's annoying to work without a net. "We swim in full gray area.

The ASN must give its opinion on this controversial topic in the coming days. But the problem could last five to six more years until 2019 or 2020, when the entire stock of Zircaloy sheaths should be passed. "The heart of the discussion now is to determine how thick corrosion is tolerable, told Mediapart Houdré Thomas, director of nuclear power plants to control the ASN; "is technically examine this subject, which is not entirely trivial. It's complicated. "

More specifically, the "discussions focus on the fact establish compensatory measures compared to a situation where doubts about the acceptability of the corrosion could have. It is not completely obvious. " Several possibilities are considered: change fuel assemblies, reactor power block, and thus the amount of nuclear electricity, remove all ducts Zircaloy park. The latter option would mechanically stop all reactors involved, the time to change uranium rods. It should also find new solutions for the storage and treatment of corroded assemblies. Unable to change or repair the fuel cladding, too radioactive to be approached. We must keep all or change any.

"Challenging the safety demonstration"

Intérieur de la cuve d'un réacteur nucléaire. Inside the vessel of a nuclear reactor.
This problem is the subject of intense discussions between EDF, ASN and its network of experts from IRSN (Institute for Radiological Protection and Nuclear Safety) for fifteen years. The development of the corrosion of Zircaloy has been modeled, and even an experimental program was established to provide a tool for the simulation of damage in the event of ejection ducts cluster. Zirconium is popular with manufacturers of nuclear components because it absorbs very little neutron and thereby facilitates the process of chain reactions. Its default is to corrode faster.

In the past, IRSN estimated that the maximum thickness of corrosion were dumped by EDF. In 2011, as noted in a report (read it here) that the maximum thickness of 115 microns reach calculated oxide or 0.115 millimeter. That is to say, even more than the maximum threshold EDF is now trying to accept. These thicknesses exceed the design criteria previously selected by EDF, and "could jeopardize the safety demonstration" (see this document, p. 2) . When experts analyzed 2,800 fuel assemblies unloaded slices park, 119 were "leaky". In June 2011, two months after the Fukushima accident, these studies are restarted from the feedback from the use of fuels between 2003 and 2009. The novelty today is the recent actions reveal a larger than expected corrosion process.

While EDF puts pressure on the executive for extending the life of nuclear power plants beyond 40 years the revelations on the wear of fuel cladding creep new pebbles in the shoes of the electrician. Over the years, the equipment is used, leaving fuiter radionuclides inside and outside the reactor building. Yet, in theory, the fuel cladding must be as insurmountable as the Great Wall of China. They provide the first safety barrier designed to prevent the spread of radioactive elements outside the reactor. In fact, cases of cladding failure have been observed, including the Cattenom (Lorraine). Over time, a rate of cladding failure between 1 and 2% was allowed.

"Flying a reactor is not simple, it must take into account all the corrosion," says physicist Monique Sené. If a sheath ruptures, radioactive materials spread in the primary circuit of the reactor. "It is pure non-stop but it is not possible to retain the gaseous products," she says. By dint, pipes and even parts of the reactor building may be contaminated. Personal find themselves at risk of radiation, especially during maintenance operations, the most dangerous.

For EDF, "we can not talk about wrestling with the ASN, it is a technical issue which is the subject of exchanges of work." But the group recognizes that "the issue of corrosion of certain ducts is under discussion."

Far from being anecdotal, the problem of wear sleeves fits the heart of the current EDF dilemma, torn between the demands of security and economic imperatives. Given the large number of tranches (25) managing this problem will necessarily have an impact on the operation of the park, and therefore the amount of nuclear electricity produced.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: SMT +38.7%, UEPS +23.9%, LCI +14%, ATHN +13.6%, EXPE +12.8%, PDO +11.8%, BEBE +11%, ARIA +10.2%, CYTK +10.1%, OUTR +9.9%, UBNT +8.7%, ATVI +7.7%, MXL +6.4%, ADEP +6.2%, GTAT +5.3%, LSCC +5.2%, ONNN +4%, NWSA +3.9%, GPS +3.8%, TRIP +3.7%, STO +3.2%, MT +2.6%, NTGR +2.5%, AAPL +2.3%, TWTR +2.3%, ECOM +2.3%, DDD +1.9%, MITK+1.9%, MU +1.8%, CLCT +1.8%, PCLN +1.6%, SSD +1.3%, AMZN +0.8%, IIVI +0.8%, QIHU +0.7%, WWWW +0.7%

Gapping down: FWM -25.6%, ELON -19.3%, MCZ -17.2%, EGOV -12.4%, EXXI -11.3%, PXLW -11%, ACET -9.7%, LPHI -9.4%, OPEN -9.2%, ECHO -8%, LNKD -7.8%, NCR -6.4%, IMI -5.5%, HITT -5.2%, STKL -4.9%, RNDY -2.6%, IMPV -2.5%, AOL -1.9%, GMCR -1.4%, SUNE -1.1%, SHPG -1.1%, BP -1.1%, SAP -1%

>>> US Earnings : VVI missed, OFC Beats, LNCE Missed, CI Missed

* Viad Corp misses by $0.01, beats on revs; guides Q1 EPS in-line, revs below consensus 

Reports Q4 (Dec) loss of $0.20 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of ($0.19); revenues fell 0.3% year/year to $201.8 mln vs the $198.95 mln consensus.
  • Co issues guidance for Q1, sees EPS of $0.28-0.38, excluding non-recurring items, vs. $0.31 Capital IQ Consensus Estimate; sees Q1 revs of $269-286 mln vs. $302.91 mln Capital IQ Consensus Estimate.
  • "We had a solid finish to 2013 and we expect another year of meaningful profit growth in 2014. Our Marketing & Events Group has great sales momentum and will also benefit from significant positive show rotation and ongoing margin improvement initiatives. Our Travel & Recreation Group is driving strong organic growth and will also benefit from the new Glacier Skywalk attraction, which will help to offset the loss of revenues from our Glacier National Park concession contract that expired at the end of 2013. The fundamental drivers of our industries continue to trend in a positive direction and we continue to see opportunities ahead to gain additional market share."
  • FY14 Guidance: Marketing & Events Group Total revenue is expected to increase at a high single-digit rate compared to 2013. Travel & Recreation Group Revenue is expected to decrease by approximately 10 percent to 12 percent from 2013, reflecting the termination of the company's contract to provide concessions within Glacier National Park, partially offset by additional revenues from the grand opening of the company's new Glacier Skywalk attraction in May 2014 and organic revenue growth.

* Corp Office Props reports FFO in-line, beats on revs; reaffirms FY14 FFO guidance

Reports Q4 (Dec) funds from operations of $0.48 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.48; revenues fell 6.3% year/year to $128.8 mln vs the $127.13 mln consensus.

Guidance:Co reaffirms guidance for FY14, sees FFO of $1.84-1.92 vs. $1.89 Capital IQ Consensus Estimate.

Q4 Operating Performance:
Portfolio Summary -- At December 31, 2013, the Company's consolidated portfolio of 183 operating office properties totaled 17.4 million square feet. The Company's consolidated portfolio was 90.3% leased and 89.1% occupied as of December 31, 2013.

Same Office Performance -- For the year ended December 31, 2013, COPT's same office portfolio represents 84% of the rentable square feet of the portfolio and consists of 165 properties. For the quarter ended December 31, 2013, the Company's same office property cash NOI, excluding gross lease termination fees, was flat as compared to the quarter ended December 31, 2012.

Leasing -- COPT completed a total of 1.1 million and 3.8 million square feet of leasing, respectively, for the quarter and year ended December 31, 2013. During these same periods, the Company's respective renewal rates were 74% and 70%. In the fourth quarter, lease terms on renewals averaged 5.9 years and for development and other new leases averaged 9.8 years. Average lease terms on renewals during the full year were 4.3 years and on development and other new leases were 8.3 years.

* Lance misses by $0.03, misses on revs; guides FY14 EPS below consensus

Reports Q4 (Dec) earnings of $0.33 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.36; revenues rose 7.4% year/year to $451 mln vs the $458.18 mln consensus.

Guidance:
Co issues guidance for FY14, sees EPS of +10-16% YoY to ~$1.27-1.35, excluding non-recurring items, vs. $1.38 Capital IQ Consensus Estimate; sees FY14 revs of +3-5% organic growth, may not be comparable to $1.85 bln Capital IQ Consensus
  • Capital expenditures for 2014 are projected to be between $70-75 mln as investments are made in plant improvements, quality, capacity and innovation.

* CIGNA misses by $0.10, beats on revs; guides FY14 EPS below consensus

Reports Q4 (Dec) earnings of $1.39 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus Estimate of $1.49; revenues rose 7.0% year/year to $8.15 bln vs the $8.05 bln consensus.
  • Co issues downside guidance for FY14, sees EPS of $6.80-7.20, excluding non-recurring items, vs. $7.32 Capital IQ Consensus Estimate.
  • Overall, Global Health Care results for 2013 reflect continued growth in the Company's targeted customer segments.
  • Fourth quarter premiums and fees increased ~6% relative to fourth quarter 2012, driven by customer growth, specialty contributions, and renewal rate increases. Fourth quarter 2013 adjusted income from operations and adjusted margin reflect elevated medical costs in our Medicare Advantage business and claim variability in our Guaranteed Cost business.
  • "Cigna's operating performance in 2013 was strong, driven by the continued effective execution of our strategy which resulted in improved health outcomes and productivity for our customers and clients...In the midst of an environment undergoing rapid change and disruption, our focused strategy and differentiated capabilities will enable us to deliver continued future growth."

(BFW) *TELE2 CEO SAYS ’ABSOLUTELY’ A BUYER IN ANY SWEDISH M&A DEALS

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BN 02/07 09:51 *TELE2 CEO SAYS SWEDEN IS HOME MARKET AND A 'FORTRESS' FOR CO. BN 02/07 09:51 *TELE2 CEO MATS GRANRYD SPEAKS IN PHONE INTERVIEW BN 02/07 09:51 *TELE2 CEO SAYS 'ABSOLUTELY' A BUYER IN ANY SWEDISH M&A DEALS BN 02/07 09:51 *TELE2 CEO DECLINES TO COMMENT ON ANY M&A SPECULATION

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*TELE2 CEO SAYS ’ABSOLUTELY’ A BUYER IN ANY SWEDISH M&A DEALS 2014-02-07 09:53:04.858 GMT

--NADINE SKOCZYLAS

-0- Feb/07/2014 09:53 GMT