(ZH) Iran's Largest Warship Mysteriously Catches Fire And Sinks In Gulf Of Oman

Iran's Largest Warship Mysteriously Catches Fire And Sinks In Gulf Of Oman
BY TYLER DURDEN
WEDNESDAY, JUN 02, 2021 - 07:00 AM
Just as negotiators were preparing to meet in Vienna on Wednesday to wrap up the latest round of talks on reviving the Iran nuclear deal, Iran's largest warship caught fire Wednesday in the Gulf of Oman and sank under unclear circumstances.
The Fars and Tasnim news agencies reported that efforts to save the support warship, named Kharg (after the island where Iran's main oil terminal sits), were a failure. The fire started around 0225 local time roughly 1,270 kilometers (790 miles) southeast of Tehran in the Gulf of Oman, not far from the Strait of Hormuz, where several Saudi oil tankers have been attacked in recent years (the US Navy accused the Iranians of using limpet mines to carry out these attacks).
The blaze reportedly raged for 20 hours before the ship sank. It appears the entire crew safely left the vessel. The fire occurred during a "training naval operation" and it's not clear exactly what caused it.
"All efforts to save the vessel were unsuccessful and it sank," Iran’s semi-official Fars News Agency said.
According to the AP, the Kharg is one of only a few vessels in the Iranian navy capable of providing replenishment at sea for other ships. The Kharg can also lift heavy cargo, while also carrying a launch pad for helicopters. The warship, built in Britain and launched in 1977, entered the Iranian navy in 1984 after lengthy negotiations following Iran’s 1979 Islamic Revolution.
The ship had light armament and was capable of carrying three helicopters on board, one on the helipad and two more stashed in hangars.
Typically, the Iranian navy patrols the Gulf of Oman and the surrounding area, while the paramilitary Revolutionary Guard patrols the shallower waters in the Strait of Hormuz and the Persian Gulf.
Back in April, another Iranian ship called the MV Saviz, which was believed to be a Guard base and anchored for years in the Red Sea off Yemen, was targeted in an attack suspected to have been carried out by Israel. It's certainly possible that Israel might be behind this attack as well, as tensions have flared recently between Israel and Iran following the latest war between Israel and Hamas in Gaza.
Iranian authorities say the vessel has been used in anti-piracy operations.
While there were no reports of casualties, the sinking of the Kharg marks the latest naval disaster for Iran following a 2020 incident that occurred during an Iranian military training exercise. At the time, a missile mistakenly struck a naval vessel near the port of Jask, killing 19 sailors and wounding 15. Before that, in 2018, an Iranian navy destroyer sank in the Caspian Sea.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • STNE -2.2%, HPE -0.6%

Other news:

  • IRTC -16.1% (CEO departs)
  • PLX -10.7% (Protalix BioTherapeutics and Chiesi Global Rare Diseases to provide update regarding the clinical development of pegunigalsidase alfa (PRX--102) for the proposed treatment of Fabry disease)
  • BYRN -7.9% (stock offering)
  • HHR -5.5% (commences 4.5 mln ADS offering by selling shareholders)
  • WPRT -5.3% (files for $100 mln common stock offering)
  • CMBM -4% (files for 2 mln share offering by selling shareholders)
  • ADCT -1.9% (stock offering)
  • NVTA -1.4% (stock offering)

Analyst comments:

  • CNK -2.8% (downgraded to Sell from Neutral at Goldman)
  • GOTU -2.2% (downgraded to Neutral from Buy at Goldman)
  • IMAX -1.7% (downgraded to Sell from Neutral at Goldman)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • MDLA +5.5%, AMBA +4.3%, LE +4%, SMG +1.2% (raises FY21 EPS and revenue guidance), APPS +1.1%, ZM +1%, DCI +0.9%

Other news:

  • ACIU +21.4% (provides key clinical and preclinical updates for its SupraAntigen-derived liposomal vaccine candidates, which are designed to convey active, long-lasting immunization against pathological forms of amyloid-beta)
  • AMC +21.4% (unveils all new communication initiative to engage directly with its sizable retail shareholder base through the launch of AMC Investor Connect)
  • SLCT +19.4% (FBNC to acquire SLCT in all-stock transaction)
  • LYRA +14.8% (Lyra Therapeutics and LianBio form strategic partnership and exclusive license agreement to develop and commercialize LYR-210 in China and other Asian markets)
  • SRNE +10.3% (announces that the Mexican Comisión Federal para la Protección contra Riesgos Sanitarios, the health regulatory authority for Mexico, has listed COVI-STIX on its official government website list of rapid antigen tests approved for emergency use in Mexico)
  • SKLZ +7.1% (to acquire Aarki)
  • LQDA +6.8% (FDA has accepted NDA resubmission for LIQ861 (treprostinil) inhalation powder for treatment of pulmonary arterial hypertension)
  • OSTK +3.4% (looking to possibly sell tZERO unit or seek partners, according to CoinDesk)
  • AQB +3.1% (reports first harvest of genetically engineered Atlantic salmon)
  • INCY +1.9% (Incyte and Eli Lilly (LLY) report OLUMIANT improved pain, physical function and morning joint stiffness in rheumatoid arthritis in Phase 3 post-hoc analyses) SWI +1.7% (aims to be Data Pros' first choice for database performance management, expands comprehensive portfolio with addition of new database insights for SQL server solution)
  • KMDA +1.5% (receives FDA approval for KEDRAB label update)
  • WSBF +1.4% (declares special dividend of $0.50/sh)
  • KODK +1.3% (issues statement in response to New York Attorney General)
  • ETSY +1.3% (to acquire Depop for $1.625 bln) 

Analyst comments:

  • DXC +2.9% (upgraded to Overweight from Equal Weight at Wells Fargo)
  • CGC +1.3% (upgraded to Hold from Sell at Canaccord Genuity)
  • CCEP +0.9% (upgraded to Overweight from Neutral at JP Morgan)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • SLCT +19.4%, SLS +5.2%, MDLA +4.5%, SWI +4.1%, DCI +4.1%, OSTK +3.9%, AMBA +3.1%, ZM +2.5%, KODK +2.3%, INCY +1.9%, WSBF +1.6%, ASMB +1.2%, SMG +1.2%, NVS +1%
  • Gapping down:
    • IRTC -13.5%, BYRN -7.9%, WPRT -7.1%, GSMG -6.3%, HHR -4.8%, CMBM -3.5%, STNE -2.2%, NVTA -2.1%, ADCT -1.9%, MRNA -1.1%, EW -1.1%, TSLA -0.7%, LI -0.6%

>>> US After Hours Summary: AMBA +5.5%, MDLA +4.4%, APPS +2.6%, ZM +2.5% higher

After Hours Summary: AMBA +5.5%, MDLA +4.4%, APPS +2.6%, ZM +2.5% higher on earnings; HPE -1.2% lower on earnings; SLCT +19.8% jumps as it gets acquired

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: AMBA +5.5%, MDLA +4.4%, APPS +2.6%, ZM +2.5%, SMG +1.5% (raises FY21 EPS and revenue guidance)

Companies trading higher in after hours in reaction to news: SLCT +19.8% (FBNC to acquire SLCT in all-stock transaction), OSTK +3.9% (looking to possibly sell tZERO unit or seek partners, according to CoinDesk), ALSN +1.6% (launches Allison FracTran, its next-gen hydraulic fracturing transmission), KODK +0.9% (issues statement in response to New York Attorney General), STIC +0.8% (closes combination with Barkbox; to trade under ticker "BARK" beginning June 2), TMO +0.4% (MRNA enters into manufacturing agreement with TMO for COVID-19 vaccine), AVTR +0.1% (acquires RIM Bio), ADCT +0.1% (stock offering)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: STNE -1.8%, HPE -1.2%, FLT -0.1% (provides guidance following the close of the AFEX acquisition)

Companies trading lower in after hours in reaction to news: IRTC -12.9% (CEO departs), GSMG -8.5% (stock offering), BYRN -8.1% (stock offering), WPRT -4.6% (files for $100 mln common stock offering), CMBM -4.1% (files for 2 mln share offering by selling shareholders), PUMP -3.4% (files for mixed shelf offering), HHR -3.2% (commences 4.5 mln ADS offering by selling shareholders), ASMB -1.2% (CFO to resign), AQB -0.7% (reports first harvest of genetically engineered Atlantic salmon), SYF -0.6% (announes organizational changes), MRNA -0.6% (MRNA enters into manufacturing agreement with TMO for COVID-19 vaccine), NVTA -0.6% (stock offering), TSLA -0.3% (SEC told Tesla last year that Elon Musk's tweets violated court-ordered policy, according to WSJ), MSM -0.1% (acquires majority interest in Wm. F. Hurst Co), EW -0.1% (Acumen Hypotension Prediction Index software receives FDA clearance), NVS -0.1% (receives FDA approval for Cosentyx as treatment for children and adolescents with psoriasis)

(BreakingViews) Krispy Kreme IPO looks half-baked, Jam tomorrow

Krispy Kreme’s initial public offering is far from dollars to doughnuts. Five years after being bought by JAB, the maker of sugary pastries is going public again. Buying up franchises has boosted sales, but patchy performance and the trend towards healthier eating make a mooted $4 billion valuation look over-jammed.

The investor backed by Germany’s Reimann family has been busy since acquiring Krispy Kreme for $1.4 billion in 2016. Managers such as former Mars executive Josh Charlesworth have introduced new flavours, treat designs, and ways of selling online. The 83-year-old company has also spent some $465 million buying back stores from franchisees, a move that gives it greater control over its products, and also helped grow the top line by an average of 19% from 2016 to 2020 to $1.1 billion.

Yet the sweet treat maker’s transformation is hardly complete. Revenue growth after stripping out acquisitions has been patchy: it was 8% in the first quarter of this year but ranged from 1% to 5% a year since 2018. Its EBITDA margin, after adjusting for costs such as stock-based compensation and M&A-related expenses, has hovered between 14% and 16% over that same period. Conversely, sugary pastry rival Dunkin’ Brands, which operates a franchise model and was taken private last year, enjoyed margins close to 40%.

A mooted valuation of $4 billion, reported by Bloomberg, looks rich. Assuming that figure includes debt, it would imply an enterprise value multiple of 26 times 2020 EBITDA, in line with more profitable coffee retailer Starbucks’ trailing multiple. Confectionery group Hershey trades at a less fruity 18 times, according to Refinitiv. Arguably the closest peer, Dunkin’ Brands was bought for around 23 times the previous year’s EBITDA.

Companies that flog so-called indulgences, a euphemism for sugary foods, are going out of fashion. Mondelez and Nestlé are trying to increase the proportion of healthier products they offer. Krispy Kreme seems to be bucking the trend: its glazed doughnut contains 200 calories and more than 40% of an individual’s advised maximum daily sugar intake. Sweet-toothed investors may be tempted to take the doughnut and leave the stock.

(Breaking Views)Porsche family applies some gas to VW untangling,Best laid clans

Volkswagen’s governance is like a Rubik’s cube. The 135 billion euro carmaker’s corporate structure counts the Porsche-Piech family, VW bosses and public stakeholders like the German state of Lower Saxony as key parties, and improving the lot of one can mess things up for others. A potential listing of the luxury Porsche brand could help clean up the situation.

VW bosses have for a while mulled some sort of conscious uncoupling with Porsche AG, acquired a decade ago after the family’s holding company, Porsche Automobil Holding, got into difficulties. Given that the luxury car brand could be worth 150 billion euros, when valued in line with Ferrari’s 33 times EBIT to enterprise value multiple, a spinoff or listing could unlock value. Yet it also raises thorny questions over how such a move would impact the Porsche-Piech family, which holds 31% of VW and 53% of the voting rights, and Lower Saxony, which holds a 12% economic stake.

The family’s latest gambit, reported by Reuters on Monday, is that they would be prepared to acquire a direct stake in a spun-out Porsche AG. It’s not clear how they intend to do this, but there are several ways a spinoff or listing might happen.

Volkswagen boss Herbert Diess could start by listing a small stake in Porsche, say 25%. That could raise resources for VW’s electric vehicle transition, but given that the group is forecast to have 31 billion euros of net cash at year-end, that’s a sideshow. The real benefit for VW shareholders would come from a full demerger, in which each of the German carmaker’s investors receive a new Porsche share.

That might also appeal more to the Porsche-Piech family members. With a market price for Porsche AG stock, they could swap some of their 31% VW holding for some or all of Lower Saxony’s stake in Porsche AG. For no cash outlay, the family would end up with a bigger chunk of Porsche, and limit their dealings with other public sector shareholders, as was the case before the VW merger.

The snag is that such a deal would leave Diess more beholden to public sector investors. But unions already call the shots on VW strategy anyway, because they and Lower Saxony have 12 of the carmaker’s 20 supervisory board seats. A deal is there to be done – just don’t bet on all sides’ ability to strike one.

>>> US Gapping Up

Gapping up
In reaction to earnings/guidance:

  • BNS +0.8%

M&A news:

  • CLDR +24.7% (to be acquired by Clayton, Dubilier & Rice and KKR for $5.3 bln ($16.00 in cash per share))
  • CLAR +5.5% (to acquire Australia-based Rhino-Rack Pty Ltd, for an aggregate purchase price of ~$198 mln )

Other news:

  • LCTX +14.3% (reports additional cases of retinal tissue restoration in Dry AMD patients treated with OpRegen RPE Cells)
  • AMC +11.9% (discloses that market prices and trading volume of shares of Class A common stock have recently experienced, and may continue to experience, extreme volatility)
  • AKBA +11.1% (and Otsuka announce FDA acceptance for filing of new drug application for vadadustat for the treatment of anemia due to chronic kidney disease in adult patients on dialysis and not on dialysis)
  • ALYA +10.6% (won an information resources project management contract with a Québec government ministry worth CAD 12.4 mln)
  • CRBP +9.7% (announced licensing deals for two new monoclonal antibodies (mAbs), CRB-601 and CRB-602, that target integrins to inhibit activation of transforming growth factor ß)
  • NRXP +8.9% (announces "positive" results for ZYESAMI and submits Emergency Use Authorization Application to US Food and Drug Administration to treat critical COVID-19 in patients suffering from respiratory failure)
  • ALKS +7.8% (announces FDA approval of LYBALVI for the treatment of schizophrenia and bipolar I disorder)
  • CTIC +7.5% (announced that the FDA has accepted its New Drug Application (NDA) for pacritinib as a treatment for myelofibrosis patients with severe thrombocytopenia; PDUFA Action Date November 30, 2021)
  • BYSI +6.1% (announces that the U.S. Food and Drug Administration has accepted for filing, and with Priority Review, the Company's New Drug Application seeking approval for use of plinabulin in combination with granulocyte colony-stimulating factor for the prevention of chemotherapy-induced neutropenia)
  • AFG +5.6% (closes on sale of its annuity businesses for $3.5 bln; declares special one-time dividend of $14.00 per share)
  • XPEV +4.7% (reports May deliveries +483% Y/Y
  • NIO +4% (reports May deliveries +95.3% yr/yr to 6,711 vehicles)
  • JKS +3.7% (announced that the maximum solar conversion efficiency of its large-area N-type monocrystalline silicon solar cells reached 25.25%, setting a new world record for large-size contact-passivated solar cells)
  • GSS +3.3% (completes upsizing and restructuring of senior secured credit facility into a revolving credit facility)
  • EQNR +2.4% (and ExxonMobil (XOM) Petrogal Brasil and Pré-sal Petróleo have decided to develop phase one of the Bacalhau field in the Brazilian pre-salt Santos area )
  • BP +1.9% boosts its renewables business in the US with 9GW solar acquisition from 7X Energy)
  • GEO +1.9% (Chairman, Chief Executive Officer and Founder, George C. Zoley, will transition to the position of Executive Chairman of GEO's Board of Directors under a new five-year employment agreement)
  • AMGN +1.7% (and Kyowa Kirin to jointly develop and commercialize KHK4083, a Phase 3-ready, potential first-in-class treatment for atopic dermatitis),

Analyst comments:

  • INSE +4.7% (initiated with a Buy at B. Riley Securities)
  • VALN +4.3% (initiated with a Buy at Guggenheim)
  • AFRM +3.8% (upgraded to Buy from Neutral at BofA Securities)
  • DVN +3.6% (upgraded to Strong Buy from Outperform at Raymond James)
  • WDH +3.3% (Initiated with a Buy at both BofA and Goldman)
  • AMRS +2.2% (Initiated with a Buy at HSBC)
  • BA +1.8% (upgraded to Outperform from Market Perform at Cowen)
  • ISRG +1.4% (upgraded to In-line from Underperform at Evercore)
  • SPT +1.3% (resumed with an Overweight at KeyBanc)
  • BWMN +1.2% ( initiated with a Buy at B. Riley Securities)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • AKBA +14%, AMC +5.7%, AFG +5.6%, XPEV +5.3%, NIO +3.5%, JKS +3.4%, GSS +3.3%, IAG +2.2%, FSM +2.2%, BP +1.9%, AG +1.8%, AMGN +1.6%, NVO +1.6%, BNS +1.2%, SCHN +1%, AZN +1%, MARA +0.9%,
  • Gapping down:
    • CRNT -3.9%, CVAC -2.7%, MBRX -2.7%, AGLE -2.3%, LMNL -1.8%,

>>> Europe : Brokers Upgrades & Downgrades - 1st of June 2021 V2(+)

>>> Up
* Atea Raised to Buy at Arctic Securities; PT 190 kroner
* Equinor Raised to Outperform at Bernstein; PT 237 kroner
* Eurazeo SE Raised to Add at AlphaValue (+)
* Indus Holding Raised to Buy at Commerzbank; PT 43 euros
* Norwegian Air Raised to Buy at SEB Equities; PT 16 kroner
* PNE AG Raised to Add at Baader Helvea; PT 8.20 euros
* Raiffeisen Raised to Overweight at JPMorgan; PT 24 euros
* Royal Mail PT Raised to 1,000 pence from 635 pence at Citi
* Solaria Energia Raised to Neutral at Oddo BHF; PT 22.70 euros (+)
* SSP Raised to Add at Peel Hunt
* Victrex Raised to Hold at HSBC; PT 2,450 pence
* Yara Raised to Buy at SpareBank; PT 550 kroner

>>> Down
* Deutsche Wohnen Cut to Hold at Jefferies; PT 53 euros
* Retelit Cut to Hold at Alantra Equities; PT 2.85 euros
* Sixt Cut to Hold at Berenberg
* Tate & Lyle Cut to Hold at Investec; PT 775 pence (+)

>>> Initiation
* Bowman Consulting Group Rated New Buy at B Riley Securities (+)
* Inspired Entertainment Rated New Buy at B Riley Securities (+)
* Valneva Rated New Buy at Goldman; PT 14 euros
* Valneva ADRs Rated New Buy at Goldman; PT $34

>>> Call
* Aryzta 3Q Shows Organic Growth in Positive Territory: Vontobel (+)
* Royal Mail Gets Street-High PT at Citi on Letter Volume Upside
* SSP Group Raised at Peel Hunt on Growing Long-Term Attractions