>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • AQ -24.3% (also Aquantia and Sumitomo Electric (SMTOY / SMTOF) announce strategic partnership), BABY -19.5%, ACCO -17.8%, QLYS -16.6%, TEVA -12.9%, GRPN -12.4%, QUOT -12.2%, CRAY -8.8%, DISH -7.2%, CSOD -5.2%, KRNT -4.8%, TRIP -4.4%, VNE -3.7%, CEVA -3.3%, TWLO -2.9%, BXMT -2.7%, MPWR -1.5%, OXY -1.4%, HUBS -1.2%, KELYA -1.2%, CVE -1.1%, BKI -1.1%, CRL -0.9%, DENN -0.8%

Other news:

  • QIWI -2.8% (CFO to leave co)
  • G -1.4% (announces underwritten public offering of 10.0 mln common shares by selling shareholders)

Analyst comments:

  • CWEN -6.3% (downgraded to Sell from Neutral at Guggenheim)
  • DE -1.4% (downgraded to Neutral from Buy at BofA/Merrill)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • DBD +24.5%, LSCC +18%, CRTO +17%, UIS +12.2%, JCOM +10.7%, CFX +8.5%, EXEL +8.2%, IPG +6.2%, IRTC +6.1%, CBRE +4.5%, CAMT +3.7%, ATVI +3.6%, SPSC +3.5%, LPX +3.4%, AVLR +2.8%, HLT +2.3%, RRR +1.3%, AKAM +1% (also Akamai Tech and Mitsubishi UFJ Financial Group announce joint venture), WH +0.7%

Other news:

  • WPG +3.4% (higher after declaring unchanged quarterly dividend-reports earnings next week)
  • PCG +2.1% (extending Tuesday's 8% move higher)
  • CALX +1.8% (shareholder Voce Capital disclosed the purchase of 100K shares worth ~$750K)
  • CLF +1.2% (appoints Keith A. Koci as CFO, effective immediately)
  • GME +1.1% (shareholder Hestia Capital sent a letter to Board 'stating they believe the Board should immediately pursue a tender offer of between $500M and $700M, and continue to buy back as much as $100M in stock per year)

Analyst comments:

  • BE +4.7% (upgraded to Outperform from Mkt Perform at Raymond James)
  • DOCU +3.7% (upgraded to Buy from Hold at Deutsche Bank)
  • FCX +3.1% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • SHOP +2.7% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
  • CLVS +2.4% (initiated with a Buy at H.C. Wainwright)

>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • LSCC +14.9%, UIS +12.2%, JCOM +10.7%, EXEL +9.1%, IRTC +6.1%, PCG +3.6%, WPG +3.4%, FCX +3.1%, SPSC +3%, ATVI +2.5%, CALX +1.8%, CAMT +1.8%, RRR +1.3%, GME +1.1%, AKAM +1%, CLF +0.8%, M +0.6%, JNJ +0.5%, AVLR +0.5%

Gapping down:

  • AQ -16.9%, QLYS -16.5%, QUOT -12.1%, GRPN -9.6%, CRAY -8.6%, CSOD -5.2%, TRIP -4.8%, VNE -4.8%, KRNT -3.4%, TWLO -3.3%, MGNX -2.2%, MPWR -1.5%, G -1.4%, OXY -1.4%, HUBS -1.2%, DENN -0.8%

>>> Competitors Steering Towards Nokian Tyres

Nokian Tyres, a specialist in winter season tyres, is said to be in focus currently as a potential takeover target in the market.
It is number one in the world in terms of its niche business area. The parties rumoured to be interested are Pirelli, Bridgestone and Goodyear – a predictable assortment of its larger competitors. Clearly, this makes for an obvious bolt on to the larger rivals, with added synergies / efficiencies.
The current share price of Nokian is near to €30, with a takeout price as high as €40 likely to clinch any deal that may materialise.
A recent trading update from Nokian Tyres was solid, as was the latest from Michelin. It could very well be the case that with increasingly extreme weather patterns, demand for the offering of Nokian is set to increase. Given that Pirelli was taken over by the Chinese a couple of years ago, this may provide the clue to potential M&A moves in this space.
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