Gapping down
In reaction to disappointing earnings/guidance:
- VSAT -7.6%, KEYS -5.7%, UEPS -1.6%, CVCO -1.2%, RY -1.2%, PLAB -1.1%
M&A news:
- RCUS -13.5% (entered 10-yr parnership with GILD; GILD to take $200 mln equity stake; no M&A deal)
Other news:
- LJPC -11.6% (learned that Amivas, an entity not affiliated with La Jolla, was granted FDA approval of its IV artesunate product)
- TMDX -4.4% (prices 5 mln shares of its common stock at $14.00 per share)
- BEP -2.9% (BEP and BAM announce offering of 10,236,000 limited partnership units of BEP by certain affiliates of BAM)
- NUVA -2.6% (to offer $400 mln in convertible notes in private placement)
- FVRR -2.5% (commences follow-on offering of $100 mln of its ordinary shares)
- IIPR -2.3% (offering of 1,348,389 shares of its common stock for gross proceeds of approximately $100.0 mln)
- REGN -1.6% (Sanofi (SNY) agreed to sell 11.8 mln shares of REGN common stock at $515.00 per share)
Gapping up
In reaction to strong earnings/guidance:
- STNE +24.3%, HEI +10.6%, OOMA +9.2%, TSCO +6% (guides Q2 well above consensus),VIPS +5.1%, PZZA +3.8% (May comps)
Other news:
- MRSN +32.4% (reports "positive" interim data from the expansion portion of the XMT-1536 Phase 1 Study
- CHRS +9.1% (to join S&P SmallCap 600)
- ZYNE +8.2% (announces "positive" top line results from exploratory open label Phase 2 BRIGHT Trial of Zygel in autism spectrum disorder)
- ESNT +6.7% (to join S&P MidCap 400)
- TSCO +6.1% (issues upside revenue and EPS guidance for Q2)
- PTEN +5.5% (to join S&P SmallCap 600)
- ATRA +4.7% (prices offering of 12,633,039 shares of its common stock at $11.32 per share and, to certain investors, pre-funded warrants to purchase 2,866,961 shares of common stock at $11.3199 per pre-funded warrant share)
- BAM +3.2% (BEP and BAM announce offering of 10,236,000 limited partnership units of BEP by certain affiliates of BAM)
- DIS +2.5% (to submit proposal on Wed concerning phased reopening of Florida parks)
- TLRY +1.8% (announces optimization plan for adult-use facilities in Canada)
- DPZ +1.3% (provides mid-quarter update; co is seeing a material increase in US comps in weeks 5-8 of Q2 relative to weeks 1-4)
- IDXX +1.1% (provides update on US Companion Animal Market Trends through May 22), .
Analyst comments:
- AMC +5.9% (upgraded to Neutral from Sell at MKM Partners)
- NYMT +4.7% (upgraded to Equal Weight from Underweight at Barclays)
- HIBB +4.2% (upgraded to Positive from Neutral at Susquehanna)
- XRAY +2% (upgraded to Outperform from In-line at Evercore ISI)
Early premarket gappers
- Gapping up:
- STNE +22.9%, OOMA +10.8%, TSCO +9.3%, TSCO +9.3%, CHRS +8.5%, HEI +7.6%, VIPS +5.4%, ATRA +4.7%, ESNT +4.1%, PTEN +3.7%, TLRY +3.1%, LJPC +2.3%, MRSN +2.2%, DIS +2%, BMY +1.1%, DPZ +1.1%, IDXX +1.1%
- Gapping down:
- VSAT -7.8%, TMDX -5.9%, KEYS -4.4%, RY -4.4%, BEP -3.4%, FVRR -3%, NUVA -2.6%, IIPR -2.3%, UEPS -1.6%, CVCO -1.2%
Hello,
We’re re-starting the Makor Share Class Report as of this week, on a fresh presentation, more visual, and we tried to be more exhaustive, especially with US names.
- This week, we like +RDSA LN / -RDSA NA, +UNA NA/ -ULVR LN, +RDSB LN/ -RDSA LN, - UHRN / + UHR (a bit higher), - LBTYK US / +LBTYA US
- Also on a less liquid note, we like +ATCOA / - B, + INDUA / - C, + EPIA/-B, - SCHN / SCHP
Our new report might evolve a bit in the near future, more detailed calls. However, if you want to start discussing, don’t hesitate to contact us
Have a nice week,
Mathias Lascar
MAKOR
++ 44 207 290 27 60
In $16 Billion Push to Expand Broadband, America Is Flying Through a Fog
Under FCC’s latest plan to fund to internet providers’ service expansions, many rural customers who lack broadband could be counted as already having it
WASHINGTON—Spurred by the coronavirus pandemic, federal policy makers are pushing to spend billions of dollars to close gaps in America’s high-speed internet network.
There is one big obstacle: Government officials say they don’t have a clear picture of where service gaps exist, meaning parts of the country will be left out when it is time to distribute the funds.
While the Federal Communications Commission estimates more than 94% of Americans—or about 309 million people—have access to high-speed internet services, it acknowledges that number is based on flawed data from internet-service providers.
The FCC requires these companies to report that they serve a census block if they can reach even a single home or business there. That means if one of your neighbors has a broadband connection, the FCC might count your house as having broadband, too—even if the local internet-service provider can’t reach you.
Citing concerns about the data, FCC Commissioner Jessica Rosenworcel wants to delay plans to auction $16 billion to internet-service providers this October to upgrade broadband infrastructure in rural areas.
“You don’t manage problems you cannot measure,” Ms. Rosenworcel said in an interview. She wants the auction delayed until the FCC has accurate maps of existing service areas.
As a Democrat on the Republican-controlled commission, Ms. Rosenworcel is unlikely to prevail. FCC Chairman Ajit Pai says even with the data problems, the auction will benefit many communities and should move forward on schedule.
“The choice we face as a nation is simple: Do we help them now, or do we delay relief until we can determine who else needs help, too? To me, rural America has waited long enough,” he said in a statement, adding that the FCC can fill in remaining service gaps when it has better data.
The flawed service data has persisted through multiple administrations. Twenty years ago, when the FCC began collecting the broadband data, it was designed as a big-picture tool for monitoring the market for voice and internet service, said Carol Mattey, a telecom consultant and former FCC official. “It was never intended at its inception to be the tool for deciding which areas got funding,” she said.
Congress passed a law earlier this year ordering the FCC to start collecting better data. But the law removed the agency’s preferred funding source for the work and didn’t appropriate new funding.
Lawmakers say they want to get the FCC the money it needs. The HEROES Act, House Democrats’ pandemic-response bill passed on May 15, would give the agency $24 million to improve broadband data. The bill would also speed up funding to some areas.
Separately, House Democrats have proposed an additional $80 billion for broadband infrastructure. The GOP-controlled Senate hasn’t taken up any of the proposals.
Brandon McGowen is among the many Americans clamoring for broadband who could miss out as a result of the flawed data.
The bank technology officer has struggled to work from his Puxico, Mo., home during the pandemic, adding to his longtime frustration with the speeds AT&T Inc. offers him via DSL technology, which sends internet signals over copper telephone wires.
SEMO Electric Cooperative, a power company serving southeast Missouri, is planning on seeking FCC funding this fall to build a high-speed fiber cable that would reach Mr. McGowen and many others. Mr. McGowen says he would subscribe in a heartbeat.
But a competing company, BPS Networks, has told the FCC it is serving Mr. McGowen’s area with high-speed broadband, along with many other census blocks across rural Missouri and Arkansas, via tower-mounted “fixed wireless” signals. BPS is owned by FDF Communications Co.
Mr. McGowen said he recently called BPS inquiring about service. The company surveyed his property, and the service technician’s report confirmed the problem, according to a copy viewed by The Wall Street Journal: “No signal, too many trees,” it reads.
Nevertheless, BPS’s claim to serve the area could mean SEMO Electric can’t seek federal dollars for a fiber line down Mr. McGowen’s street. The project could be delayed for years, said SEMO Electric CEO Sean Vanslyke. “The impact on our region would be devastating,” he said.
Missouri Attorney General Eric Schmitt’s office sent BPS a letter on May 7 questioning its claims.
Reached for comment, BPS President W.F. Provance pointed to a May 6 letter the company sent to the FCC, saying BPS is following the agency’s directions and is capable of providing broadband in the census blocks where it is claiming service.
The FCC is reviewing BPS’s claims as well as those from other companies about changes in their service territories since the middle of 2019. If the agency accepts all the claims, that could reduce the size of the October auction by about 9%, according to Conexon LLC, a consulting firm that helps electric cooperatives build fiber networks.
In Chisago County, Minn., about a 40-minute drive from Minneapolis, many residents are desperate for faster internet. One local internet provider, Frontier Communications Corp., has a reputation among residents for poor service, said Nancy Hoffman, executive director of the county’s economic development authority.
Frontier, which filed for bankruptcy in April, told the FCC that it covers much of Chisago County with 25-megabit-per-second download speeds, the FCC’s minimum for advanced broadband.
Data from Ookla LLC, owner of Speedtest.net, show some consumers experienced that speed but the average download speed for Frontier customers in Chisago County was just 12 megabits per second since June 30, 2019.
In a statement, Frontier said it has been upgrading its infrastructure and stands by its service claims, which it said are “consistent with FCC requirements.”
Frontier’s service report to the FCC could end up blocking parts of Chisago County from receiving funding in the October auction, though the company told the FCC in a letter Saturday it would welcome including the areas in the auction. It made similar reports across 29 states.
>>> Up
* Aena Raised to Buy at Goldman; PT 147 euros
* BNP Paribas Raised to Overweight at Morgan Stanley; PT 41 euros
* CNP Assurances Raised to Buy at HSBC; PT 14.60 euros
* Deutsche Wohnen PT Raised to 60 euros at Deutsche Bank
* E.On Raised to Add at AlphaValue
* Eurofins Scientific Raised to Buy at Jefferies; PT 700 euros
* KWS Saat Raised to Buy at Pareto Securities; PT 69 euros
* Ricardo Raised to Buy at HSBC; PT 430 pence
* Rockwool Raised to Overweight at Barclays; PT 2,000 kroner
* Shop Apotheke PT Raised to 140 euros at Deutsche Bank
* Unite Group Raised to Overweight at JPMorgan; PT 900 pence
* *WILMINGTON UPGRADED TO BUY AT SHORE CAPITAL (WAS UNDER REVIEW) (+)
>>> Down
* Bertrandt Cut to Hold at Bankhaus Metzler; PT 37 euros
* Close Brothers Cut to Sell at Investec; PT 1,010 pence (+)
* Electrolux Cut to Hold at DNB Markets; PT 160 kronor
* Fraport Cut to Sell at Goldman; PT 33 euros
* Hannover Re Cut to Hold at Bankhaus Metzler; PT 148 euros (+)
* Hella Cut to Hold at MainFirst; PT 36 euros
* ISS Cut to Underperform at Jefferies; PT 80 kroner
* Kingspan Cut to Underweight at Barclays; PT 42 euros
* Masmovil Cut to Neutral at Exane; PT 17 euros (+)
* Melia Hotels Cut to Hold at Mirabaud Securities; PT 5.20 euros (+)
* Nexi Cut to Neutral at Banca Akros (ESN); PT 13 euros (+)
* Pearson Cut to Sell at Berenberg; PT 400 pence
* RBS Cut to Hold at Investec; PT 120 pence (+)
* Sartorius Cut to Sell at LBBW; PT 260 euros (+)
* TUI Cut to Hold at Commerzbank; PT 6 euros (+)
* USU SOFTWARE Cut to Hold at Hauck & Aufhaeuser (+)
>>> Initiation
* Nordex Reinstated Buy at Jefferies; PT 12 euros
* Onxeo Rated New Buy at Bryan Garnier; PT 1.22 euros (+)
* SMA Solar Reinstated Hold at Jefferies; PT 29 euros
>>> Call
* Adidas, Brenntag, Kion, SKF Added to Berenberg’s Large-Cap Picks
* Boohoo Still a Top Pick at Numis After Short Seller Report (+)
* British Land FY Shows Covid-19 Pressures Will Dominate, MS Says (+)
* Britvic’s Dividend Deferral, Low Visibility to Hurt Shares: Citi (+)
* Burberry PT, EPS Estimates Cut at Citi on Tougher Mid-Term View
* Carrefour Share-Price Correction Has Gone Too Far, Kepler Says (+)
* Elior’s Lack of Detail on Liquidity a Disappointment: Bernstein (+)
* Eurofins Gets Street-High PT at Jefferies on Re-Rating Potential
* European Insurance Stocks’ Underperformance is Unwarranted: RBC
* French, Benelux Bank Outlook Uncertain, BNP Paribas Raised: MS
* H&M Total Sales Set to Drop by Half in 2Q, Barclays Says (+)
* Pearson Cut at Berenberg on ‘Severe’ Enrollment Disruption
* Rockwool Double-Upgraded on Potential Renovation Boost: Barclays
* Siemens Plan to Further Cut Energy-Unit Stake Is Positive: Citi (+)
-
TUI (TUI1 TH) +12%
- TUI at Non-Deal Roadshow Hosted By Kepler Cheuvreux Today
-
Renault (RNL TH) +7.5%
- Macron Pledges Additional Stimulus to Help French Carmakers
- IAG (INR TH) +6.5%
- Nokian Renkaat (NRE TH) +5.2%
- Ryanair (RY4C TH) +5
-
Fraport (FRA TH) +4.4%
- Fraport Cut to Sell at Goldman; PT 33 euros
-
Aroundtown (AT1 TH) +4%
- Aroundtown First Quarter Adjusted Ebitda EU237.2 Mln, +32% Y/y
- Safran (SEJ1 TH) +3%
- EasyJet (EJT1 TH) +2.9%
- Valeo (VSA TH) +2.6%
- RBI (RAW TH) -1.4%
-
Infineon (IFX TH) -1.5%
- Infineon Technologies Raised Around EUR1 Bln to Partly Fund Cypress Acquisition
- Telefonica Deutschland (O2D TH) -1.8%
- Erste (EBO TH) -1.9%
- TAG Immobilien (TEG TH) -1.9%
- LEG Immobilien and TAG Terminate Talks on Combination
- Bank of Ireland (BIRG TH) -3%
- Cineworld (DQ6 TH) -5%
- Shares gained 19% yesterday