>>> Facebook: Color on qtr - -3.74% Pre-Market...

Facebook: Color on qtr

* Pacific Crest highlighted the first sign of engagement issue. Daily active users (DAU) were 728 million and lower than the Street at 737 million. Facebook also confirmed that DAU among younger U.S. teens declined after refuting all engagement weakness in Q2. Teens are only 10% to 15% of the U.S. user base, but could signal the direction of early adopters. * RBC Capital Mkts raises its FB tgt to $60 from $52 noting positives: 1. Revenue Beat, 2. Rising User Engagement, 3. Mobile Now @ 49% Of Ad Revenue, and 4) Margins Surprise to the upside. Two EPS call "surprises" -- 1) Management commentary that it was seeing reduced engagement by young U.S. teens -- RBC's recent survey work makes it believe this risk has been over-stated by the market; and 2) Management commentary that it plans to cap Newsfeed ad loads for the foreseeable future -- RBC believes this view was consistent with prior Q2 EPS call comments and, therefore, not new nor a "surprise." * Stifel notes FB exceeded $2bn in total revenues for the first time, as mobile ad revenues neared half of total. The quarterly results, at the surface, were good enough to drive shares meaningfully higher, as revenues and EPS increase 8% and 23%, respectively, for 2014. But commentary that ruled out further increase in ad loads will limit the extent of follow through after a quarter in which the shares of FB had more than doubled (vs. S&P 500 up 5% in 3Q13). Tgt to $56 from $50. * CRT is raising its target from $52 to $57 on a strong 3Q. FB's reported 3Q Revenue, EBITDA & PF EPS of $2.01 billion, $1.26 billion, and $0.25, were well ahead of CRT/Street's $1.9 billion, $1.0 billion, and $0.18. Mobile was the highlight at 49% of total ad revenue or $881 million. OpEx leverage resulted in EBITDA margin of 62.5%, the highest seen since 4Q11. But management tempered expectations with plans to limit NewsFeed ad inventory going forward. * Canaccord raised its tgt to $62 from $60 on strong Q3 results, while noting the ad model * As mentioned earlier, FB was downgraded to Market Perform from Outperform at BMO Capital Mkts and upgraded to Buy from Hold at Pivotal Research. * FB was also defended at Bernstein, which would buy on any pull-backs. * After initially gapping higher on the print, FB is now flat in pre market at $48.89.

FT : Alcatel shares rise by 18.5 per cent as losses narrow

Shares in Alcatel-Lucent, the telecoms equipment maker, soared on Thursday amid expectations that its turnround plan may be showing the first signs of success. Shares in the Paris-based company rose 18.5 per cent in morning trading to €2.80 after the company reported a loss of €200m between July and the end of September – significantly smaller than analysts’ estimates.

Under Michel Combes, the new chief executive officer, the company is trying to put an end to a dismal few years when it went through half a dozen restructuring plans and burnt about €700m of cash a year on average, since its ill-fated merger with US-based Lucent Technologies in 2006. Thursday’s gains have added to a vigorous rally that has sent Alcatel-Lucent shares up 177 per cent since the start of the year. Last month, Mr Combes proposed to cut 10,000 of Alcatel-Lucent’s 72,000 jobs globally as part of what he has called “The Shift Plan”, a dramatic downsizing and refocusing that aims to make €1bn in savings by 2015. The company, which makes everything from radio towers to billing software for mobile phones, said on Thursday that it was on track to exceed the top end of its €250m-€300m target in fixed-cost savings for 2013. It also said that it expected the last three months to the end of the year “to be driven by strong seasonal activity”. Mr Combes said: “We are seeing the first positive signs of our new operating model in our day-to-day business.” His comments came after the French manufacturer said that sales during the third quarter of this year were €3.7bn, an increase of 7 per cent on a like-for-like basis compared with the same period last year. That slightly higher-than-expected figure came thanks to double-digit growth in the company’s North American sales. Since Nokia disposed of its handset business to Microsoft for €5.4bn, speculation has swirled in the industry that the Finnish company may make a bid for some or all of Alcatel-Lucent. Mr Combes has said he intends to sell €1bn in assets over the coming years. But on a conference call with analysts on Thursday, Mr Combes would not comment directly, saying only that “we will see in the coming years whether consolidation will take place depending on the conditions in the market”. He added: “My focus is to implement my plan, which will make us stronger regardless of what happens in the industry long-term.”

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: NIHD -26%, SGI -14.8% (downgraded to Sector Perform from Outperform at FBN Securities), WTW -13.3%, AAWW -12.1%,JIVE -11.6%, OTEX -11.5%, GLUU -10.3%, EDMC -9.8%, AVP -8.9%, ROVI -8.3%, JDSU -8.1%, TSYS -8%, (light volume), RATE -6.9%, SNE -6%, VRX -5.6%, MOH -5.5%, NVO -5%, (light volume), RDS.A -4.4%, GTLS -3.9%, SPWR -3.5%, MERU -3.1%, (light volume), V -2.6%, ABX -2.4%, AXTI -2.3%, BYD -2.2%, (light volume), AZN -2.2%, SLRC -2.1%, (light volume), MET -2%, MGM -1.9%, CROX -1.8%, ALL -1.8%, SBUX -1.6%, RKUS -1.2%, DRIV -0.9%, (light volume), TOT -0.5%, FICO -0.4%, (light volume).

Metals/mining stocks trading lower: HMY -2.8%, AU -2.4%, GOLD -2.3%, EGO -2.1% AUY -2.1% ( downgraded to Hold from Buy at TD Securities on valuation and reduced expectations ), SLV -1.7%, GDX -1.4%, GLD -0.6%.

Select solar related names showing early weakness following SPWR results: JASO -3.2%, SOL -2.3%, FSLR -1.4%, SCTY -1.4%, TSL -0.6%.

Other news: ARIA -24.2% (Ariad Pharm Announces Temporary Suspension of Iclusig Marketing in the United States), DSCO -9.3% (announces proposed public offering of common stock; size not disclosed), QTWW -7.1% (still checking), EGAS -4.6% (announces offering 1,134,155 shares of its common stock, of which 80,000 shares will be sold by the co, 1,006,911 will be sold by the co's Chairman and CEO, and 47,244 shares will be sold by the co's CFO), ERIC -3.1% (still checking), RYAAY -1.8% and ZNH -1.5% (following AFLYY results), WDC -1.7% (announces 10.87 mln share secondary offering by selling shareholder Hitachi), KORS -1.3% (addition to S&P 500 postponed), RCL -1.1% (still checking).

Analyst comments: MAT -2.6% (downgraded at Piper)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: ZLTQ +28.6%, EXPE +17.5%, ALU +15.2% (also Alcatel-Lucent and NantWorks announce definitive agreement by which NantWorks will acquire ALU's Digital Multimedia Solutions product business unit; financial terms not disclosed), SPRT +11.3%, FLDM +10.5%, PFPT +10.1%, (light volume), CRR +8.3%, (light volume), ANIK +7.2%, QUIK +6.9%, (light volume), SSNI +6.5%, ITMN +5.6%, (light volume), UNTD +5.3%, SWKS +5.1%, WMB +4.9%, TRN +4.7%, ANR +3.9%, (light volume), ATML +3.6%, THOR +3.2%, (Thoratec upgraded to Buy from Hold at Canaccord), AFFX +3%, (light volume), OI +3%, (light volume), BT +2.9%, (light volume), CTRX +2.6%, (light volume), FB +2.6%, MCHP +2.6%, EL +2.6%, (ticking higher), CAVM +2.5%, HBI +2.4%, CAH +2.4%, (light volume), PRGO +1.9%, FLT +1.7%, MA +1.6%, IPI +1.4%, (light volume), POWI +1.1%, ARRS +1%, PRAA +0.9%, (light volume), MTGE +0.4%, (light volume),.

Select online travel names showing strength following EXPE results: OWW +4.6%, TRIP +1.6%, PCLN +1.2%, CTRP +1.1%.

Other news: OPTT +28.3% (awarded $2.6 mln contract by Mitsui Engineering & Shipbuilding for development and supply of Japan Utility PowerBuoy system), XOMA +14.4% ( Results From Two Phase 2 Studies in XOMA's Gevokizumab Proof-of-Concept Program Are Very Encouraging and Compelling), NQ +11.5% (looking around for anything new), PRAN +10.2% (continued strength), CETV +9.2% (modestly rebounding), VVUS +3.7% (Newly Published Study Finds Qsymia Achieves Greater Weight Loss at Lower Doses Than Either of Its Components as Monotherapy), CRTO +2.9% (recent IPO), JNY +2.6% (following late spike after NYPost James Covert reported 'NY POST EXCLUSIVE on auction process of Jones Group coming shortly'), FF +2.5% (FF to replace AOS in the S&P SmallCap 600), GLW +1.2% (announces $1 bln accelerated share repurchase ), DB +1.1% (still checking), AOS +0.8% (AOS to replace SKS in the S&P MidCap 400), TEVA +0.8% ( FDA clears commencement of Phase 3 chronic heart failure trial ), YELP +0.7% (prices 3.75 mln share follow-on offering at $67.00 per share ), BP +0.7% (RDS.A and TOT reported), ELN +0.7% (PRGO reported), BUD +0.2% (positive mention on MadMoney).

Analyst comments: HTS +0.8% (upgraded to Buy from Neutral at Compass ), HES +0.6% (upgraded to Outperform from Neutral at Credit Suisse)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: ZLTQ +37.8%, EXPE +19.1%, ALU +15.2%, XOMA +14.4%, SPRT +11.3%, FLDM +10.5%, PFPT +10.1%, CETV +9.2%, ANIK +7.2%, QUIK +6.9%, SSNI +6.5%, ITMN +5.6%, HBI +5.1%, SWKS +5.1%, TRN +4.7%, OWW +4.6%, THOR +3.2%, AFFX +3%, OI +3%, PRAA +2.9%, FB +2.6%, MCHP +2.6%, FF +2.5%, ATML +1.8%, FLT +1.7%, TRIP +1.6%, IPI +1.4%, PCLN +1.2%, CTRP +1.1%, DB +1.1%, POWI +1.1%, ARRS +1%

Gapping down: RATE -11.7%, JIVE -11.6%, OTEX -11.5%, GLUU -10.3%, EDMC -9.8%, DSCO -9.3%, WTW -9.3%, ROVI -8.3%, JDSU -8.1%, TSYS -8%, QTWW -7.1%, SGI -6.9%, SNE -6%, MOH -5.5%, EGAS -4.6%, SPWR -3.5%, ZNH -3.2%, MERU -3.1%, MET -3.1%, V -2.6%, AU -2.4%, AXTI -2.3%, AZN -2.2%, SLRC -2.1%, ABX -2%, ALL -1.8%, WDC -1.7%, SLV -1.7%, SBUX -1.6%, FSLR -1.4%, JASO -1.4%, GDX -1.4%, KORS -1.3%, RKUS -1.2%, RCL -1.1%, DRIV -0.9%, YELP -0.8%

Third Point May Want Cypriot Hellenic Bank: Phileleftheros

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Third Point May Want Cypriot Hellenic Bank: Phileleftheros 2013-10-31 10:52:47.91 GMT

By Paul Tugwell Oct. 31 (Bloomberg) -- Third Point representatives have already met with Central Bank of Cyprus to express “serious interest” in acquiring majority of Hellenic Bank share capital, Nicosia-based Phileleftheros newspaper reports, citing unidentified CBC officials. * Third Point wants to buy shares from planned capital increase worth minimum EU60m, prepared to cover full EU168m increase: Phileleftheros * NOTE: Hellenic Bank said Oct. 29 in Cyprus bourse filing that it received investor interest in capital increase * NOTE: Third Point Fund Invests $60m in Greece’s Energean Oil & Gas NSN MMSNKX6JIJV3 <GO> * NOTE: Third Point Plans Greek-Focused Hedge Fund on Recovery Bet NSN ML3C7V6JTSF4 <GO>

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

--Editors: Jerrold Colten, Marco Bertacche

To contact the reporter on this story: Paul Tugwell in Athens at +30-210-74-19-073 or ptugwell1@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at +39-02-8064-4261 or jcolten@bloomberg.net