Gapping up
In reaction to strong earnings/guidance:
- IRBT +17.6%, IRBT +17.6%, VICR +13.1%, VRAY +9.9% (appoints Scott Drake CEO and Shar Martin COO, effective immediately; announces preliminary unaudited revenue of approx. $16 mln vs $13.4 mln consensus for second quarter; reaffirms FY18 rev guidance of $80-90 mln), USNA +9.9%, TER +6.8%, ATTU +6.4%, HA +5.9%, SPN +5.3%, SC +5.2%, FCF +5%, SLM +4.3%, KN +4.1%, RHI +3.7%, CHKP +3.6%, AKR +3.4%, DTE +3.2%, CSL +3%, UCBI +2.8%, FLIR +2.6%, ROK +2.1%, SIRI +2%, EVR +1.9%, CNI +1.5%, RNR +1.5%, AMP +1.2%, WIX +1.2%, ANTM +1.1%, RES +1.1%, IPHI +0.9%, GSK +0.8%, .
Other news:
- TORC +143% (announces 'positive' topline results from its dose-ranging Phase 2b clinical trial)
- NVRO +26.6% (after plunging ~16 points in late trade on unfavorable patent ruling)
- NBRV +3% (acquires Zavante Therapeutics for upfront consideration of approximately 8.2 mln ordinary shares)
- RETA +2.3% (continued strength despite co pricing offering of 3 mln shares of common stock at $72.00 per share)
- LULU +1.2% (appoints Calvin McDonald Chief Executive Officer)
Analyst comments:
- HA +5.9% (upgraded to Buy from Hold at Deutsche Bank)
- CROX +2.3% (upgraded to Buy at Pivotal Research Group)
- PPG +1.3% (upgraded to Buy from Neutral at Goldman)
- SNAP +0.8% (upgraded to Hold from Sell at Vertical Group)
Early premarket gappersGapping up:
- IRBT +17.3%, VICR +13.3%, NVRO +13.1%, VRAY +9.8%, TER +9%, USNA +5.9%, SPN +5.3%, FCF +5%, NBRV +4.5%, SLM +4.3%, BSX +4.3%, KN +4.1%, RETA +4%, RHI +3.7%, AKR +3.4%, CSL +3%, KDP +2.8%, UCBI +2.8%, EVR +1.9%, EVR +1.9%, CNI +1.5%, RNR +1.5%, WIX +1.5%, LB +1.3%, LULU +1.2%, AMP +1.2%, CTLT +0.9%, IPHI +0.9%, GSK +0.8%
Gapping down:
- NAVI -7.4%, OC -6.5%, VCYT -4.1%, RDUS -4.1%, MANH -2.9%, MKSI -2.8%, CB -2.6%, CSGP -2.6%, VSTM -2.5%, IART -2.5%, STM -2.4%, SYK -2.3%, EEFT -2.3%, VOD -2.2%, FRO -1.9%, WSC -1.9%, DB -1.9%, PII -1.7%, MMSI -1.5%, CADE -1.3%, T -0.9%, BHE -0.7%, TXN -0.6%
Sushi Shop to be acquired by Amrest for EUR 240m
25 JUL 2018
AmRest [WSE:EAT], the largest publicly listed restaurant group in Central Europe, on 25 July announced it had agreed to acquire 100% of Sushi Shop in a stock exchange announcement as follows.
Amrest Holdings SE,(“AmRest”, the “Company”) announces signing on July 24th, 2018 of an Agreement between AmRest and Mr. Grégory Marciano, Naxicap Partners SA and remaining sellers (jointly “Sellers”) setting forth AmRest’s irrevocable commitment to purchase 100% shares in Sushi Shop Group SAS (“Sushi Shop”, the “Group”) (the “Agreement”).
The purchase price based on Enterprise Value (on the cash-free and debt-free basis) will amount to approx. EUR 240m, of which an equivalent of EUR 13m is to be paid to Mr. Grégory Marciano and Mr. Adrien de Schompré in the AmRest’s shares. Additionally, an amount of up to EUR 10m (earn-out) will be paid to the Sellers upon Sushi Shop reaching certain financial KPI’s for 2018.
Sushi Shop is the operator of the leading European chain of Japanese cuisine restaurants comprising of 165 stores, of which about one third are restaurants run by franchisees. Upscale Sushi Shop restaurants are present in France (72% of the entire business) and in 11 other countries (including Spain, Belgium, Great Britain, Germany, Switzerland, Italy). The Group's business model is based mainly on the "delivery" (55% of sales) and "take-away" (32% of sales) channels.
In 2017 fiscal year the network generated the system sales of approx. EUR 202m. The consolidated revenues of Sushi Shop amounted to ca. EUR 130m.
The parties of the Agreement intend to sign the Share Purchase Agreement in the upcoming weeks and close the transaction within the next couple of months, which will be a subject to consultation with the workers council of Sushi Shop and obtaining clearance by the relevant antitrust authorities.
The acquisition would strengthen AmRest’s portfolio with a well-established proprietary brand in sushi segment, a category highly attractive to AmRest’s business model. The offer of Sushi Shop shall add substantial leverage on food delivery platforms of the Group.
De La Rue activist Crystal Amber increases stake to 4.58% from 3.11%
25 JUL 2018
De La Rue [LON:DLAR] shareholder Crystal Amber has increased stake in the UK-based banknote and passport printer from 3.11% to 4.58%. The transaction that took place on 20 July was reported four days later, according to the stock exchange disclosure.
Crystal Amber manager Richard Bernstein said De La Rue is at risk of hostile takeover bids from overseas unless it can focus on developing the technology side of the business, it was reported earlier.
As reported previously, Oberthur Technologies of France and US-based Crane Currency are considered potential bidders for the company.
Link to the stock exchange disclosure.
AMS could sell units to finance buys - report (translated)
25 JUL 2018
AMS [SWX:AMS], the Austro-Swiss semiconductor company, could sell units to finance buys, Finanz und Wirtschaft reported.
The Swiss bi-weekly cited the AMS 2018 half year results' statement that states the company is actively evaluating strategic expansion opportunities, and could make a change to its business portfolio. AMS does not have sufficient finance to make large buys and could sell units to finance deals, the report stated. AMS CEO Alexander Everke told a telephone conference that there are interesting takeover candidates, the report noted.
Excerpt of AMS half year 2018 results statement:
ams has recently initiated a strategic review of specific business areas taking an active approach to align its business portfolio for long-term attractive growth, profitability and end market diversification.
Simultaneously, ams is actively evaluating strategic expansion opportunities in line with its strategy to build the global leader in sensor solutions based on its focus areas optical, imaging, environmental, and audio sensing.
Focused on enhancing ams’ long-term positioning, ams currently expects to provide an update on both developments in the fourth quarter 2018. While taking into account potential effects from possible future changes to its business portfolio, ams endorses its growth target for ams revenues of 60% CAGR for the 2016-2019 period.
At the same time, ams is convinced of the long-term strength of its business model and committed to driving balanced profitable growth. ams therefore also endorses reaching the target of 30% adjusted EBIT margin for ams in 2020, prudently taking into consideration potential financial effects that could result from possible future changes to its business portfolio.
Second quarter group revenues were USD 252.8m, down 42% sequentially compared to the first quarter and up 18% from USD 213.3m in the same quarter 2017. Group revenues for the first half of 2018 were USD 685.5m, up 76% compared to USD 388.7m recorded in the first half of 2017.
Lex: Hammerson/UK retail: Intu the void
Hammerson’s new strategy should be known as the anti-Intu plan. The retail landlord’s ill-fated proposal to take over its smaller rival would have increased both gearing and exposure to indifferent UK shoppers. Shareholders hated the idea. Now that Hammerson has called off the pursuit, it is throwing this approach into reverse.
Buying in ideas from McKinsey, the world’s largest consulting firm, has resulted in a decision to halve the number of executive directors, ditch retail parks, sell off £1.1bn of assets (12 per cent of the portfolio) and hand shareholders £300m. The loan-to-value ratio will fall and the UK will make up a smaller part of the London-listed group.
For all this effort, shares rose 1 per cent on Tuesday. Has McKinsey simply told Hammerson the time with its own watch? It is difficult to spot anything wildly innovative here. Renewed focus on Europe is a good idea when footfall is down over 1 per cent in the UK and up 2 per cent in France, but is a retread of former schemes. Similarly it is little surprise that Hammerson is talking up its nicest UK locations. Differentiation is fast becoming a retail cliché.
Annual cost savings of at least £7m are welcome. Handing back £300m might appease some shareholders — but reconsidering capital expenditure is at odds with the idea of focusing on fancy shopping centres. Nothing here will diminish the drumbeat of Amazon.
Shareholders still find it hard to forgive the company for dismissing an approach from Klépierre out of hand. The 635p per share offer valued Hammerson shares at a level they have not traded at since autumn 2015.
Klépierre can make another bid in October. Until then, Hammerson’s best bet is that disposals will prove the 30 per cent gap between market value and the value of assets wrong. Recent sales have been made at a 10 per cent discount to net asset value. The strategy may not be groundbreaking. But a modest re-rating in the share price is still warranted.
Juul users sue over the addictive e-cigarette
The lawsuits target Juul’s recipe and the company’s marketing strategy
Three lawsuits against e-cigarette start up Juul Labs, uncovered by Wired reporter Nitasha Tiku, allege that Juul’s patented recipe stoked the users’ nicotine addictions. One of the suits was filed in New York by the mother of a teen who started Juuling when he was 15 years old. Now, he can’t stop, the suit alleges, “even though it subjects him to disciplinary measures at home and at school.”
The complaints, filed in the US District Court in Northern California, the San Francisco Superior Court, and US District Court in New York, specifically reference a key ingredient in Juul’s recipe: compounds called nicotine salts. Nicotine salts form in the heat-dried tobacco leaves that are rolled into most cigarettes, and they’re said to be easier to inhale than the free-base form of nicotine found in cigars, pipe tobacco, and many other vapes.
In a recent study, researchers tested how two Juul flavors stacked up against nine other vapes. They found that the Juul vape juices contained more nicotine and less of that harsh free-base than the other brands, according to a paper published in the journal Chemical Research in Toxicology in May. That means Juul packs a powerful nicotine punch in a palatable package.
The three suits all include the same image from Juul’s patent: a chart that shows certain nicotine salts deliver even more nicotine into the bloodstream than a Pall Mall cigarette. But Gideon St Helen, a tobacco researcher at the University of California, San Francisco, cautions against over-interpreting that data without knowing more about how the company produced it. Blood nicotine levels can rise much higher after smoking conventional cigarettes than the levels we see on that graph, he says in an email to The Verge. “[W]ithout seeing the details of how Juul conducted these studies, and without studies by independent researchers, these claims and counterclaims are hard to verify or refute,” he says.
All three complaints also target Juul Labs’ branding and marketing strategies, which the two California suits allege were built “around creating, and addicting, an entirely new group of customers who are not regular smokers.” But the company has said that’s not the case: “Juul is intended for adult smokers only who want to switch from combustible cigarettes,” spokesperson Victoria Davis told The Verge in early July. She added in an emailed statement today: “Juul Labs does not believe the cases have merit and will be defending them vigorously.”
But Juul has run into trouble about its marketing before. In April of this year, the FDA told Juul Labs the agency needed more information about the company’s marketing strategy. “We don’t yet fully understand why these products are so popular among youth,” FDA commissioner Scott Gottlieb said in a statement at the time. “But it’s imperative that we figure it out, and fast.”