WSJ : DHS Issues National Terrorism Alert for Domestic Extremists

DHS Issues National Terrorism Alert for Domestic Extremists
Alert is department’s first in a year, warns that some extremists may be motivated by Jan. 6 attack

The Department of Homeland Security issued a national terrorism alert warning that violent domestic extremists could attack in the coming weeks, emboldened by the Jan. 6 riot at the U.S. Capitol.

DHS, in an alert issued Wednesday, said violent extremists opposed to the government and the presidential transition “could continue to mobilize to incite or commit violence,” though the department said it doesn’t have evidence of a specific plot.

The DHS release was part of a public alert called a National Terrorism Advisory System bulletin.

The alert is the department’s first in about a year. The last such bulletin from DHS came in January 2020, warning about Iran’s potential to carry out cyberattacks. DHS notably didn’t issue an alert ahead of the Jan. 6 planned rally in Washington, D.C. that devolved into a mob siege at the Capitol, despite public chatter online that extremists planned to do so.

The alert described a series of factors in the recent past that have increased the potential for violence among U.S. extremists.

Violent extremists have been “motivated by a range of issues, including anger over Covid-19 restrictions, the 2020 election results, and police use of force,” the alert said. The alert also listed opposition to immigration, citing that as a motivating factor in a white supremacist’s killing of 23 people in El Paso, Texas in 2019.

DHS said it is “concerned these same drivers to violence will remain through early 2021 and some [domestic violent extremists] may be emboldened by the January 6, 2021 breach of the U.S. Capitol Building in Washington, D.C. to target elected officials and government facilities.”

“This is a bulletin that should have been issued in late December,” said Elizabeth Neumann, a former DHS counterterrorism official who served during the Trump administration and has been critical of how the department has approached the issue. “I’m grateful that the new team at DHS has quickly assessed the available intelligence and performed their statutory duty to warn the public about the threat environment we are facing.”

Since the Jan. 6 riot, far-right groups have used increasingly violent rhetoric in online chats, sharing bomb-making materials and guerrilla tactics and calling for asymmetric war with the government, according to researchers at the Soufan Group, a nonpartisan center that tracks extremist movements.

“There is open talk of war, that the war is coming, that ‘2021 will be our year,’ ” said Mollie Saltskog, an analyst at the Soufan Group. “This is all in the aftermath of January 6.”

WSJ : The GameStop Short Squeeze Shows an Ugly Side of the Investing World

The GameStop Short Squeeze Shows an Ugly Side of the Investing World
Short sellers are thick skinned, but the nasty comments, insults and threats leveled at them feel like political fights, not investing differences

Andrew Left is no stranger to conflict when it comes to investing. He makes a living betting that companies will stumble, and he calls out executives by name.

Companies and their supporters fight back, but the criticism he normally gets is nothing compared with the venom spewed in recent days by stock traders who have come together online to drive up shares of an unlikely momentum stock, mall retailer GameStop Corp. GME +97.82%

“It makes you feel vulnerable,” Mr. Left, 50, founder of Citron Research, said in an interview. “We live in a world where we’re all exposed and people don’t understand boundaries.”


The angry traders have shared his personal information, hacked into Mr. Left’s social-media accounts and texted Mr. Left and his two children, using threatening, profane and personal language, according to people close to the matter.

Other short sellers have also been targeted in these forums. In the past week, there has been an uptick in references to well-known short sellers like Mr. Left and Muddy Waters LLC’s Carson Block on Reddit channels, blogs and other social-media venues, according to a review by Meltwater, a global media intelligence company.

Muddy Waters’ Mr. Block, who made his name shorting Chinese stocks, said he has received death threats and other nastiness in the past, though the abuse always seemed tamer in the investing world than in politics.

“People have always been much more pragmatic about their money than their political beliefs, which allows activist short sellers to get a hearing with investors,” Mr. Block said. “Maybe what happened with Andrew is an evisceration of that pragmatism that’s similar to the rabid delusions you’re seeing in politics and elsewhere.”

Online forums like Reddit’s WallStreetBets are full of traders boasting that they are beating up the big investors who normally control the market. It is an ironic twist, or a sign of their lack of understanding, that they equate short sellers with the Wall Street establishment.

Short sellers are fringe players who go after companies and institutions the rest of the financial world is largely backing. They often make bets based on deep research, sometimes exposing fraud. Recent successes include firms like Nikola Corp. , Wirecard AG and Valeant Pharmaceuticals International Inc.

But they are often rich. And in some cases, individual investors have been burned by their short-selling campaigns. Nikola, for example, was a favorite stock of retail momentum traders.

This time, Mr. Left targeted GameStop, which soon became the subject of a short squeeze, where rising prices prompt bearish investors to buy back shares they had sold short to cut their losses, pushing the stock higher still. Traders have driven the price of GameStop up threefold since Thursday when Mr. Left held a live stream presentation arguing the stock would fall by 50%.

The company’s fans have ordered dozens of pizzas sent to his home, well past midnight. Mr. Left even reached out to one online critic after he asked Mr. Left why he made his Twitter account private. “We spoke on the phone, he sounded like 15 years old,” Mr. Left said.

But Mr. Left has also contacted the Federal Bureau of Investigation and the Securities Exchange Commission about the more vicious abuse and what he sees as collusion among the investors. In a YouTube video posted on Wednesday, Mr. Left said he has now closed most of his short position.

Current and former regulators say that authorities do have means to crack down on online groups that band together to pump stocks. There are several cases where authorities have successfully won cases against groups of investors that have acted together online to manipulate a stock’s price. In most cases, they have targeted those that spread false information online.

It is unclear whether what is happening online now could be considered manipulation. Many of the posters are simply announcing their intention to drive a stock higher, and not attempting to deceive other investors by making false claims.

The current and former regulators say that there are mechanisms for the SEC to quickly limit some of this activity. Much like when the SEC banned short selling in hundreds of companies at the height of the financial crisis, it can take emergency measures that would make it harder to trade options, which many traders are using to juice their returns and drive the stock higher.

The vitriol against Mr. Block, Mr. Left and hedge fund Melvin Capital Management’s Gabe Plotkin largely began in the past 10 days, according to Meltwater. Mr. Plotkin had a short position in GameStop.

Mr. Left has received the majority of so-called “negative” sentiment. Most of the online content has stemmed from the U.S., though users from China have also been a large part of the effort.

Mr. Left said the traders’ attacks on him are a sign of the risks they are taking by trading options and buying into stocks with the markets near all-time highs. The fact that so many investors are cooped up amid the coronavirus pandemic puts even more people on edge.

“It’s extreme capitalism gone wild,” Mr. Left says. “We’re a nation of gamblers.”

Mr. Block believes this will end badly for the traders, who are ignoring the “investing lessons of the past,” such as not chasing expensive stocks. In time, he believes the new investors will be burned. “Frenzied retail speculation always leads to tears,” says Mr. Block.

FT : Ferragamo family shareholders eye management overhaul

Ferragamo family shareholders eye management overhaul
Move comes as brand seeks to lift performance due to waning demand for luxury goods in pandemic

Family shareholders in luxury brand Salvatore Ferragamo have called off plans to sell a minority stake in the company and are seeking to overhaul its management, according to several people familiar with the situation.

The move comes as Ferragamo, famous for its shoes worn by Hollywood stars and its formal menswear, seeks to turn around its fortunes following years of fluctuating growth and the fallout from the Covid-19 crisis that has dragged on demand for luxury goods.

Last year the Ferragamo family, which owns a 54 per cent stake in Milan-listed Ferragamo Finanziaria, that controls the brand, explored selling a minority stake in the holding company to raise capital.

However, several investors who were approached said they were put off by the fact that the Ferragamo family would not relinquish any control over the company’s governance in exchange for a stake sale.

According to several people close to the family, the sale option has been put on hold while the group focuses on relaunching the brand with new management. Sale talks could be restarted at a later stage.

“Covid-19 has been a tsunami for the company but the family loves it and it [is not ready] to sell,” said one of the people.

“The family has now opted to prioritise a turnaround of the company, beginning with an overhaul of the management,” said one investor who was approached to buy a minority stake. 

Contracts for Ferragamo’s creative director and chief executive, which will expire in the next few months, are unlikely to be renewed, according to several people familiar with the situation.

Creative director Paul Andrew, a British footwear designer, and chief executive Micaela Le Divelec, a former Gucci executive, were appointed in 2019. The duo’s failure to rejuvenate the brand and make it more appealing to younger customers, such as Chinese millennials, has hindered growth, the people said.

Ferragamo declined to comment.

The brand’s revenues dropped 38.5 per cent during the first nine months of 2020 compared with the same period in 2019, amid prolonged boutique closures and global lockdowns to combat the march of the coronavirus pandemic.

The company, which is due to announce its full-year results on Thursday, said last week that it had hired an executive search company to select independent members ahead of the renewal of its board in March. 

Ferragamo also appointed former Goldman Sachs banker Claudio Costamagna to the board following the resignation of Giuseppe Anichini, a longtime aide of the Ferragamo family.

The new independent board members will replace members of the family “as per best practices”, the company said. The family also agreed the new chairman of the family holding would not have an executive role. 

Thomas Chauvet, a luxury analyst at Citi, said Ferragamo “is not growing much, but it’s not distressed either. I believe that the family is keen to make it work, they love the business, there’s no sense of urgency”.

According to another investor, the brand’s debt levels are low and while “some members of the Ferragamo family would rather sell to cash in and focus on other investments, the company still has space for manoeuvre before it is forced to sell”.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • TTOO -15.7% (sees Q4 above consensus), FFIV -7.2%, HOPE -6.8%, MNRO -6.6%, CNI -6.2%, DZSI -4.8% (sees Q4 revs above consensus, also announces stock offering), BA -4.3%, LRN -3.8% (also CEO retires), VFC -3.4%, HA -3.3%, AMD -3.1%, NAVI -3%, TXN -2.9%, SBUX -2.8% (also COO to step down; CFO to retire), UMBF -2.6%, T -2.6%, AGYS -2.5%, XLNX -2.2%, MKTX -1.7%, ANTM -1.4%, UMC -1.2%, SCCO -1.2%, ADP -1%, ABT -1%

Other news:

  • TRXC -12.7% (prices offering of 23,083,333 shares of common stock at $3.00 per share)
  • PLUG -12.5% (prices offering of 28 mln shares of common stock at $65.00 per share)
  • SCPS -9% (prices offering of 1 mln shares of common stock at $9.00 per share)
  • PSNL -8.3% (prices offering of 3.95 mln shares of common stock at $38.00 per share)
  • CBIO -3.6% (stock offering)
  • QUMU -3.5% (prices offering of 3,225,000 shares of its common stock at a price to the public of $6.75/share)
  • CCL -2.4% (mixed shelf offering)
  • TWO -1.4% (convertible notes offering; also provides Q4 update)
  • UAVS -1.4% (agrees to acquire MicaSense for $23 mln in cash and stock)
  • LVS -1.3% (names new CEO, COO, CFO)
  • CALT -1.1% (stock offering)
  • SYF -1.1% (approves $1.6 bln share repurchase program)
  • GNW -1% (COO to step down)

Analyst comments:

  • VIR -10.1% (downgraded to Underweight from Neutral at JP Morgan)
  • UNFI -5.8% (downgraded to Underweight from Equal Weight at Wells Fargo)
  • SPWR -5% (downgraded to Neutral from Overweight at Piper Sandler)
  • ULTA -2.3% (downgraded to Neutral from Buy at Citigroup)
  • MTZ -2.2% (downgraded to Sector Weight from Overweight at KeyBanc Capital Markets)
  • UAA -1.7% (downgraded to Neutral from Buy at Citigroup)
  • V -1.7% (downgraded to Sector Weight from Overweight at KeyBanc Capital Markets)
  • MA -1.6% (downgraded to Sector Weight from Overweight at KeyBanc Capital Markets)
  • ACI -0.8% (downgraded to Equal Weight from Overweight at Wells Fargo)
  • XRX -0.8% (downgraded to Neutral from Outperform at Credit Suisse)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • TRMK +9.3%, FMBI +4.3%, SLGN +3.6%, COF +3.1% (also authorizes $7.5 bln stock repurchase program), ROL +2.5%, PFC +2.1% (also names new CEO), MSFT +1.6%, SBSI +1%, GLW +1%, CVLT +1%

Other news:

  • AMC +155.6% (continues its short squeeze momentum)
  • GME +66.9% (continues its short squeeze momentum)
  • SRNE +5.4% (reports preliminary results of Phase 1b study of COVI-MSC for treatment of ICU COVID-19 patients)
  • WBA +4.8% (confirms the appointment of Roz Brewer as the company's Chief Executive Officer; Stefano Pessina as Executive Chairman)
  • GBT +4% (European Medicines Agency has completed the validation of GBT's Marketing Authorization Application for Oxbryta tablets and started its standard review process)
  • CTMX +3.2% (Point72 Asset Mgmt discloses 9.1% stake)
  • DPW +3% (Ault Global Holdings' Coolisys Technologies has received a purchase order for 5,000 ACECool 7kW residential EV charging systems for an aggregate of $1.75 mln and expects to receive orders for a substantially greater number of such chargers from iNetSupply)
  • TLSA +1.3% (files shelf registration statement for to up to $250 mln in market value of its securities)
  • REGN +1.1% (Regeneron Pharma and Columbia University researchers have independently confirmed findings that REGEN-COV antibody cocktail is active against SARS-CoV-2 variants; data included in bioRxiv paper and submitted for peer-reviewed publication)

Analyst comments:

  • DKS +2.3% (upgraded to Buy from Neutral at Citigroup)
  • DY +0.9% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • AMC +85.5%, GME +83.5%, SRNE +9.4%, TRMK +9.3%, WBA +6.9%, CTMX +5.1%, COF +5.1%, FMBI +4.3%, SLGN +3.9%, SPWR +3.3%, MRTN +3.1%, MSFT +2.9%, BX +2.4%, PFC +2.1%, RHP +2%, UMC +1.4%, BNFT +0.7%
  • Gapping down:
    • TTOO -11.7%, TRXC -9.4%, SCPS -9.4%, PLUG -8.1%, FFIV -7.9%, HOPE -6.8%, DZSI -6.5%, DZSI -6.5%, PSNL -5.8%, CBIO -5.2%, CNI -3.9%, AMD -2.8%, SBUX -2.6%, UMBF -2.6%, AGYS -2.5%, IGT -2.2%, XLNX -1.7%, TLSA -1.5%, CHRW -1.5%, NAVI -1.4%, TXN -1.4%, TWO -1.2%, CALT -1.1%, HA -1%, VAC -0.7%, DCT -0.7%

>>> Europe : Brokers Upgrades & Downgrades - 27th of January 2021 V2(+)

>>> Up
* Air Liquide Raised to Buy at SocGen; PT 154 euros
* Arrow Global Raised to Buy at Peel Hunt; PT 262 pence
* Axa Raised to Neutral at Citi
* Bilia Raised to Buy at SEB Equities; PT 135 kronor
* Centrica Raised to Buy at Goldman; PT 67 pence
* DFDS Raised to Buy at ABG; PT 310 kroner
* Eurofins Scientific PT Raised to 88 euros at Berenberg
* Greencore Group Raised to Buy at Jefferies; PT 150 pence
* Intertek Raised to Buy at Berenberg; PT 6,450 pence
* Liberbank Raised to Buy at Jefferies; PT 36 euro cents
* Marzocchi Pompe Raised to Outperform at EnVent S.p.A.
* Microsoft PT Raised to $300 from $260 at Jefferies
* MTU Aero Raised to Neutral at Exane; PT 195 euros
* Naturgy Raised to Hold at Grupo Santander; PT 23.90 euros
* NN Raised to Buy at Citi
* Nordea Bank Raised to Overweight at Morgan Stanley; PT 88 kronor
* Norma PT Raised to 54 euros from 43 euros at Berenberg
* Thales Raised to Outperform at Exane; PT 97 euros

>>> Down
* Aena Cut to Sell at Banco Sabadell; PT 136.50 euros
* Air France-KLM Cut to Sell at Berenberg; PT 3 euros
* Arjo Cut to Hold at SEB Equities; PT 64 kronor
* Autoliv GDRs Cut to Hold at SEB Equities; PT 830 kronor
* Babcock Cut to Underweight at Barclays; PT 145 pence
* JM Raised to Buy at Kepler Cheuvreux; PT 345 kronor (+)
* Kaubamaja Cut to Hold at SEB Equities; PT 9.20 euros
* Legal & General Cut to Neutral at Citi
* Mondi Cut to Hold at SBG Securities; PT 2,060 pence (+)
* SGS Cut to Hold at Berenberg
* Somfy Cut to Hold at SocGen; PT 155 euros (+)
* Tele Columbus Cut to Equal-Weight at Barclays; PT 3.25 euros
* TUI Cut to Reduce at Commerzbank; PT 265.54 pence
* Zurich Ins. Cut to Neutral at Citi

>>> Initiation
* Banco BPM Rated New Overweight at Barclays; PT 2.20 euros
* BPER Banca Rated New Overweight at Barclays; PT 1.90 euros
* Credito Emiliano Rated New Equal-Weight at Barclays
* Hexagon Purus Holding Rated New Buy at SpareBank; PT 100 kroner (+)
* Intesa Sanpaolo Rated New Overweight at Barclays; PT 2.40 euros
* J. Martins Rated New Hold at SocGen; PT 15 euros
* Marlowe Rated New Buy at Peel Hunt; PT 753 pence
* Mediobanca Rated New Overweight at Barclays; PT 9.50 euros
* Multiconsult Rated New Buy at Pareto Securities; PT 200 kroner (+)
* UniCredit Rated New Equal-Weight at Barclays; PT 8.60 euros
* Vivendi Resumed Buy at SocGen; PT 31 euros

>>> Call
* Airlines’ Recovery Path Uncertain, Air France-KLM Cut: Berenberg (+)
* Bayer Interest Rising Amid ‘Robust’ Pandemic Performance: DB (+)
* Brewin Dolphin Makes Positive Start to the Year, RBC Says (+)
* Citi Upgrades Axa, NN Group; Positive on Reinsurers, Dutch Life
* Essity 4Q Sales Beat Estimates, Tissue Volume Strong: Jefferies (+)
* Europe Car Suppliers View Upbeat at Berenberg on Sales, Costs (+)
* Evotec Seen Starting More Contract Talks Post U.S. Contract: RBC (+)
* Greencore in Good Position to Capitalize on Recovery: Jefferies
* Hapag-Lloyd Momentum to Be Driven by Higher Rates: Jefferies (+)
* KPN ‘Strong’ Revenue Beat a 4Q Results Highlight, Goldman Says (+)
* Lanxess 4Q Pre-Release Shows Resilience, Deutsche Bank Raises PT (+)
* Lanxess PT Raised to 80 euros from 74 euros at M.M. Warburg (+)
* Nordea Raised at Morgan Stanley After Underperforming Peers
* SEB Starts Off 4Q Earnings Period ‘In Style,’ Jefferies Says (+)
* Siemens Healthineers 1Q Strong Across Portfolio: Morgan Stanley
* Testing Stocks to Benefit From Megatrends, Berenberg Says