Gapping down
In reaction to disappointing earnings/guidance:
- INFN -23.9%, PRMW -21.2%, MB -20.8%, ZG -19%, MED -15.8%, AXDX -15.6%, INGN -15.2%, CHUY -14.6%, FTR -14.6%, TRUE -14.2%, ICHR -12.7%, KORS -12.2%, DF -12.2%, CTSO -11.9%, COTY -10.9%, JAZZ -8.8%, HEAR -8.6%, MYGN -8.6%, CWH -8.3%, RRGB -7.7%, UCTT -7.6%, DLPH -7.6%, AKRX -7.2%, DXC -7.2%, MTCH -7.1%, DAR -6.8%, WEN -6.3%, VSLR -6.1%, SMG -5.5%, HCKT -4.3%, ENPH -3.9%, GDDY -3.4% (also approves repurchase of up to $500 mln of the company's Class A common stock), DISH -3.2%, PAAS -3.1%, SRLP -3%, STKL -2.9%, SUPN -2.8%, SCSC -2.7%, ACHN -2.7%, DPLO -2.4%, RESI -2.4%, IAG -2.2%, DXCM -2.2%, MODN -2.1%, ZAGG -2%, REGI -2%, CLNY -1.6%, AFMD -1.5%, GNL -1.4%, TWO -1.3%, KTOS -1.1%, BWXT -1.1%, MBI -1%, .
Other news:
- COMM -4.7% (CNBC reporting Arris [ARRS] is near a deal to be acquired by CommScope)
- IAC -2.1% (following MTCH results and ahead of its own earnings release tomorrow after the close)
- ENDP -1% (announces 'positive' results from Phase 3 RELEASE studies of collagenase clostridium histolyticum in patients with cellulite)
- RDFN -1% (following Z / ZG results; reports earnings Nov 8)
Analyst comments:
- MODN -2.1% (downgraded to Hold at Needham)
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Gapping up
In reaction to strong earnings/guidance:
- TWLO +17.1%, SEND +16.7%, XOG +14.7%, ETSY +13.2%, CUTR +12.9%, ODP +10.9%, FIVN +10.5%, DIOD +10.4%, WTTR +10%, CSLT +7.9%, ITG +7.9%, NEWR +7%, CPE +6.5%, PLNT +6.3%, RCKT +5.8%, VIRT +5.5%, CCLP +5.4%, GHDX +5.2%, MEET +5.1%, MNTA +4.6%, VSI +4.6%, LC +4.4%, RPD +4.4%, HALO +4.4%, PXD +4.4%, FTK +4.3%, PUMP +4.1%, VGR +4.1%, AAXN +4%, PZZA +3.6%, DATA +3.6%, HZNP +3.4%, XEC +3.2%, BTG +2.7%, PAGP +2.4%, FTI +2.4%, PAA +2.3%, BGNE +2.3%, CCS +2.2%, GGB +1.8%, GRPN +1.8%, AG +1.6%, SBGI +1.4%, PSEC +1%, .
M&A news:
- ARRS +17.7% (CNBC reporting Arris is near a deal to be acquired by CommScope [COMM] for more than $31/share)
- DVMT +3.9% (WSJ reporting potential for improved Dell offer)
- KHC +1% (Kraft Heinz to sell Canadian natural cheese business to Parmalat for purchase price of CAD$1.62 bln)
Other news:
- RENN +19.3% (CM Seven Star Acquisition Corp [CMSS] enters into business combination with Renren's [RENN] Kaixin Auto Group)
- SRCI +18.5% (Colorado voters reject Proposition 112 measure)
- FOMX +15% (announces its Phase 3 Studies FX2016-11 and FX2016-12 met both co-primary endpoints)
- GNC +12.2% (reaches agreement w/ Harbin Pharma for the funding of Hayao's investment, enters into JV Framework Agreement with respect to joint ventures in Hong Kong and China)
- FMS +9.3% (California voters reject Proposition 8)
- AVEO +5.9% (after closing the day 20% lower)
- RCKT +5.8% (announces the clearance of the Company's INDapplication for RP-L102, the Company's lentiviral vector (LVV)-based gene therapy for the treatment of Fanconi Anemia by the FDA)
- BR +2.6% (modestly rebounding -- clarifies guidance from call - narrows Q2 estimated revs range)
- MDR +1.5% (company confirms Chairman, CEO, CFO share purchases)
Analyst comments:
- PTI +6% (initiated with Overweight rating and $21 tgt at Cantor Fitzgerald)
- WES +5.3% (upgraded to Buy from Neutral at BofA/Merrill)
- ONCE +2.6% (upgraded to Neutral from Underperform at Wedbush)
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When It Comes To Sports, Money Is No Object For Rupert Murdoch
21st Century Fox's Rupert Murdoch will be tough to beat in the battle for the 21 Fox Regional Sports Networks (RSNs) that antitrust regulators are requiring Walt Disney to divest in order to receive approval for the company's $ 71 billion purchase of Fox's entertainment assets.
Though pundits have noted that Murdoch may be able to buy them at a “discount” from the valuation Fox sold the networks to Disney, the Australian-born media tycoon isn’t a bargain hunter when it comes to sports, a business that it wants “New Fox” to focus on once the Disney deal closes.
Earlier this year, Fox signed a 5-year, $3.3 billion deal for the rights to the NFL’s Thursday Night Football broadcast, considered by many fans to be the league’s weakest. On a per-game basis, that works out to $60 million per game, roughly 33 percent higher than the $45 million-per-game rate that incumbents CBS and NBC paid. Fox also signed a 5-year, $1 billion deal with the WWE for its marquee Smackdown Live broadcast in June, athree-fold increase over what incumbent NBCUniversal is paying. A spokesperson for New York-based Fox didn’t respond to a request for comment for this story.
There is plenty about the Fox Regional Sports Networks (RSNs) for Murdoch to like. For one thing, they have the rights to broadcast 44 teams from Major League Baseball, the National Hockey League and the National Basketball Association. According to the Wall Street Journal, the RSNs generate $2 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA). Sports also is one of the few genres of programming that most consumers watch live and continues to attract huge though declining audiences. The legalization of sports betting is expected to boost the audience for professional and college sports and boost the ad revenue for broadcast and cable TV networks.
The best FOX RSN is the YES (Yankee Entertainment and Sports Network), the cable home of the Bronx Bombers and the NBA’s Brooklyn Nets. YES’s EBIDTA is roughly $500 million. The Yankees also have a right of first refusal to buy Fox’s stake in YES and have reportedly joined forces with private-equity firm RedBird Capital and other investors to bid for YES. Other teams are interested in buying RSNs in their areas, according to the Journal. The deadline for bids for the RSN is Thursday.
The bidding war between Comast and Walt Disney for Fox’s assets drove up their value to a level that other investors including rapper Ice Cube and private equity players might not feel can be justified. Murdoch, whose family controls Fox, can buy what he wants when he wants without worrying about being challenged by his board of directors, where he is co-Executive Chairman along with his son Lachlan. Another son, James Murdoch is Fox's CEO.
Endemol Shine sale on hold, not cancelled; private sale to Banijay for upwards of USD 2bn possible – report (translated)
07 NOV 2018
The sale of the Netherlands-based TV production company Endemol Shine has been delayed and put on hold, French daily Les Echosreported, citing several people with knowledge of the matter. According to the sources, the disposal of the business by vendors Apollo[NYSE:APO] and 21st Century Fox [NASDAQ:FOXA] could be delayed by several months, but is not “fully dead”.
The report claimed that as the potential buyers and the vendors disagree on the price of the target, the vendors have decided to take more time and improve the financials of the business. The report noted that with a debt of EUR 1.7bn, the adjusted debt to EBITDA ratio of Endemol Shine amounts to 9 for Standard & Poor’s and 7.5 for Moody’s.
The report went on to say that Banijay, a French TV production company, is still interested in the business and could have improved its initial offer to more than USD 2bn. Discussions between Banijay and the vendors could therefore continue, or start again with a direct private sale of Endemol Shine to Banijay rather than via an auction, according to the report.
French media and telecoms group Vivendi [EPA:VIV], a minority shareholder in Banijay, is understood to support the acquisition. The report claimed that French investment holding Fimalac could also back the acquisition via an investment in LOV Group, the holding vehicle for Stéphane Courbit, the founder and main shareholder in Banijay.
Endemol Shine reported an EBITDA of EUR 224m on revenues of EUR 1.85bn in 2017. Banijay and Endemol Shine owners did not comment on the information, the report noted.
Paradis Latin sold to Butler Industries (translated)
07 NOV 2018
Paris-based cabaret Paradis Latin has been sold by the Israel family to Butler Industries, the investment fund of American-Brazilian businessman Walter Butler, according to an announcement from the buyer.
Paradis Latin has 100 employees. Harold Israel remains managing director of the business, the French-language item noted.