>>> US Gapping down

Gapping down 
In reaction to strong earnings/guidance:

  • MDCA -23.4%, HDSN -19%, NUAN -14.9%, SNR -13.5%, SPKE -12.2%, OTEX -10.2%, SAIL -7.9%, SYNA -7.4%, INFN -6.5%, BOLD -6.5%, KODK -6.4%, SND -6.4%, TGI -5.9%, FTK -5.5%, MELI -4.5%, BKNG -4.4%, AXDX -4.2%, IMMU -3.6%, IEA -3.6%, AYX -3.5%, NVAX -3.5%, LB -3.3%, PTCT -3.1%, TROX -2.8%, FTI -2.7%, BSTI -2.6%, SUN -2.1%, PBYI -2%, ATUS -1.7%, FNV -1.7%, RXII -1.5%, ELF -1.3%, AG -1.2%, NICE -1.2%

Other news:

  • EXEL -29.2% (Partner Roche provides update on Phase III Study of TECENTRIQ and COTELLIC; did not meet its primary endpoint of overall survival)
  • SNCR -16.1% (does not expect to regain compliance with the continued listing requirements set by the Nasdaq Hearings Panel prior to May 10)
  • IART -7.1% (prices offering of 5,250,000 shares of common stock at $58.50 per share)
  • NBR -4.5% (prices its offerings of 35,000,000 of its common shares at $7.75/share)

Analyst comments:

  • M -4.2% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
  • MIDD -1.4% (downgraded to Neutral from Outperform at Robert W. Baird)
  • COG -1% (downgraded to Underperform from Buy at BofA/Merrill)

>>> US Gapping up

Gapping up
In reaction to disappointing earnings/guidance/SSS:

  • SDPI +22.4%, CVNA +15.1%, MRAM +14.4%, RUN +9.9%, WMGI +8.4%, BREW +7.7%, GSAT +7.6%, ROKU +7.3%, UPL +7.3%, UPLD +7%, HIMX +6%, PEGI +5.9%, KNDI +5.6%, ECOM +5%, AMCX +5%, SEP +4.9%, TSG +4.6%, DSX +4%, KELYA +3.9%, WRD +3.6%, CHEF +3.6%, GDOT +3.5%, SEDG +3.5%, SIEN +2.9%, BAM +2.9%, ENB +2.8%, CPA +2.7%, LLEX +2.7%, EGC +2.7%, KPTI +2.6%, BTG +2.5%, AKG +2.5%, JNP +2.5%, PTLA +2.4%, ICL +2.4%, AVYA +2.3%, PSTI +2.3%, RNG +2.2%, UFAB +2.1%, CTL +2%, GEN +1.9%, MGA +1.9%, IAC +1.8%, PBH +1.6%, HL +1.3%, TRCO +1.3%, ZTO +1.2%, WP +1.2%, ETP +1.1%, DUK +1.1%, FOXA +0.8%

M&A news:

  • ARMO +67.3% (to be acquired by Eli Lilly (LLY) for $50.00/share, or approximately $1.6 billion, in an all-cash transaction)
  • FSNN +11.4% (to acquire MegaPath for $71.5 mn)
  • CRK +6.4% (enters into definitive agreement with Arkoma Drilling and Williston Drilling to acquire certain oil and gas assets located in North Dakota in exchange for common stock)
  • EVHC +6.2% (Envision Healthcare: KKR (KKR) is said to be putting together an $11 bln plus bid for Envision, according to the NY Post)

Other news:

  • NGD +5.7% (New Gold appoints Interim COO Raymond Threlkeld as the new President and CEO; Threlkeld succeeds Hannes Portmann, who has left the company to pursue other opportunities)
  • AQXP +4.9% (Aquinox Pharma and Astellas announce exclusive licensing agreement for Rosiptor; Aquinox to receive $25 mln in upfront payment)
  • RBS +2.6% (settlement with the US Department of Justice regarding US RMBS investigation)
  • QCOM +2.3% (approves new $10 bln stock repurchase authorization)
  • AGS +1.9% (prices secondary public offering of 4.25 mln shares of common stock by Apollo Gaming at $21.50 per share)
  • XRAY +1.3% (CFO disclosed the purchase of 50K shares worth ~$2.2 mln)
  • RCL +1% (approved the repurchase of $1 billion of the company's common stock over the next two years),

Analyst comments:

  • FSLR +2.5% (upgraded to Overweight from Neutral at JP Morgan)
  • CVRR +1.6% (upgraded to Buy from Neutral at Citigroup)
  • GRPN +1.6% (upgraded to Neutral from Sell at UBS)
  • AIG +1.3% (upgraded to Buy from Neutral at Goldman)
  • MPC +1.2% (upgraded to Buy from Neutral at BofA/Merrill)
  • TTD +0.7% (initiated with Outperform rating and $66 tgt at Oppenheimer)

>>> US Early premarket gappers


Early premarket gappers

Gapping up:

  • SDPI +22.4%, MRAM +13.2%, CVNA +11.1%, RUN +8.9%, HIMX +8.7%, WMGI +8.4%, BREW +7.7%, SEP +6.2%, UPLD +5.8%, PEGI +5.6%, EGLE +5.5%, ROKU +4.6%, ECOM +4%, WRD +3.6%, CHEF +3.6%, SEDG +3.3%, SIEN +2.9%, CTL +2.8%, GDOT +2.8%, CPA +2.7%, LLEX +2.7%, EGC +2.7%, SND +2.5%, SND +2.5%, ZTO +2.4%, PTLA +2.4%, ICL +2.4%, RNG +2.2%, TTD +1.9%, AGS +1.9%, QCOM +1.9%, GEN +1.9%, IAC +1.8%, XRAY +1.3%, ETP +1.1%, RCL +1%, FOXA +0.8%

Gapping down:

  • MDCA -16.1%, HDSN -14.6%, SNCR -13.3%, NUAN -13.2%, SPKE -11.7%, OTEX -9.8%, SYNA -7.4%, KODK -7.3%, BOLD -6.5%, MELI -6.1%, INFN -5.6%, FTK -5.5%, BKNG -5%, IART -4.4%, SAIL -4.3%, AXDX -4.2%, NBR -4.1%, IMMU -3.6%, PTCT -3.1%, NVAX -2.9%, AYX -2.8%, FTI -2.8%, TROX -2.8%, SUN -2.1%, PBYI -2%, ATUS -1.7%, FNV -1.7%, ELF -1.3%, SHLD -0.9%

>>> Himax Tech beats by $0.01, beats on revs; guides Q2 EPS in-line, revs above

Himax Tech beats by $0.01, beats on revs; guides Q2 EPS in-line, revs above consensus (7.02)
  • Reports Q1 (Mar) loss of $0.02 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of ($0.03); revenues rose 4.9% year/year to $162.85 mln vs the $160.67 mln Capital IQ Consensus.
    • Revenue from large display drivers was $59.3 million, up 1.6% sequentially and up 0.1% year-over-year. Large panel driver ICs accounted for 36.4% of Himax's total revenues for the first quarter, compared to 32.3% in the fourth quarter of 2017 and 38.2% a year ago.
    • Revenue for small and medium-sized display drivers came in at $71.7 million, down 11.8% sequentially and up 7.6% year-over-year, due to seasonality and the overall weak smartphone market.
  • Co issues guidance for Q2, sees EPS of 0.00-0.01, excluding non-recurring items, vs. $0.01 Capital IQ Consensus Estimate; sees Q2 revs of $177.47-185.6 vs. $176.77 mln Capital IQ Consensus Estimate.
    • Himax expects a solid rebound in the second quarter overall and sequential growth across all three major product categories.

FT : New investors set to join SoftBank’s $100bn Vision Fund

New investors set to join SoftBank’s $100bn Vision Fund
Daimler, Japanese banks and Larry Ellison are among latest backers of giant tech venture

Germany’s Daimler and Japan’s three largest banks are set to become investors in SoftBank’s Vision Fund as the Masayoshi Son-led company looks to complete fundraising for its $100bn technology investment fund, according to people briefed on the matter.

The Mercedes-Benz maker along with MUFG, Mizuho, and Sumitomo Mitsui Banking Corporation will be among the final investors in the fund, which is the largest ever created in private equity or venture capital, these people said.

They added that other new investors will include Larry Ellison, the billionaire US co-founder of software group Oracle who is investing personally, and the sovereign wealth fund of Bahrain.

Mr Son, founder of SoftBank and the person who has final say on the Vision Fund ’s investment decisions, is also set to make a personal investment as well as create structures that allow the company’s executives to participate in the fund.

The new investments will allow the fund to reach its goal of hitting about $100bn, set out when it was launched with the backing of the state investment funds of Saudi Arabia and Abu Dhabi just over a year ago.

SoftBank is debating internally when it should begin fundraising for its next fund, one of these people said, which is expected to be named Vision Fund II.

Daimler and the Japanese banks are set to be among the smaller ones in the fund, alongside earlier participants such as Apple, Qualcomm, Foxconn and Sharp. About $88bn of the fund comes from SoftBank, Saudi Arabia and Abu Dhabi.


Daimler has been among the most active carmakers investing in ride-hailing and car-sharing platforms in recent years.

In 2014 it acquired MyTaxi, a cab-hailing service that now has 70m passengers in Europe. Last year it acquired Chauffeur Privé in France, a rival to Uber. It also owns the car-sharing company car2go. To build up scale, Daimler and BMW announced in March that they would merge their new mobility services on everything from electric vehicle charging to ride-hailin

Individuals close to the three Japanese banks said their decision to invest had a twin motivation: the quest for returns in Japan’s ultra low-interest environment and the desire to further strengthen their relationships with what is by far Japan’s most active corporate name.

All the new investors will be participating under the terms of the fund’s unusual structure, which sees them receive 62 per cent in preferred units paying out an annual coupon of 7 per cent over the fund’s 12-year life cycle, and the rest with equity.

SoftBank itself is the only investor which has full equity exposure, giving it the most upside to the fund’s investments in addition to the management and performance fees.

SoftBank outlined on Wednesday in a presentation that it had spent $29.7bn of the Vision Fund since inception. It has placed bets on more than 30 companies including ride-hailing group Uber, shared-office provider WeWork and chipmaker Nvidia.

SoftBank, Daimler, the Japanese banks and a spokesperson for Larry Ellison declined to comment. Representatives of Bahrain’s sovereign wealth fund were not immediately available for comment.

WSJ : Venezuela’s Brewing Oil Shock May Be Bigger Than Iran’s

Venezuela’s Brewing Oil Shock May Be Bigger Than Iran’s
Two threats could further disrupt Venezuelan exports, possibly taking as much crude off the market as the renewal of Iran sanctions

The oil headlines this week have all been about Iran, but the slowly unfolding disaster in Venezuela may be even more significant.

Less than two weeks before a controversial snap presidential election that would almost certainly give incumbent Nicolás Maduro a six-year term, the country’s main source of export revenue could take another drastic tumble. S&P Global Platts estimates the country’s recent crude production was 1.41 million barrels a day, at least a 30-year low except for a crippling 2002-2003 strike. And over half a million barrels below what it was a year ago.


Venezuela faces two risks that, if both come to pass, could cut its oil output by more than the biggest estimates of what could happen to Iran if sanctions were reimposed. The risks stem from Venezuela’s dependence on importing lighter varieties of crude to mix with the heavy oil it produces, and its need for products imported from the U.S. to enable its thick oil to be transported.

The first situation is playing out in the Dutch-administered islands of Curaçao and Bonaire, where Venezuela’s state oil company owns refining and storage facilities. U.S. producer ConocoPhillips is attempting to take physical control of those facilities after winning an arbitration award against Venezuela for seizing its assets in 2007. Venezuela appears to be telling its suppliers not to ship oil to these facilities for fear ConocoPhillips will seize that too, potentially shutting down refining.

The second situation would play out if the U.S. halts exports to Venezuela of a product called diluent, which allows the thick oil to be transported. Such a move would imperil half or more of the country’s remaining production. U.S. Vice President Mike Pence has already called the presidential election a sham.

Energy economist Philip Verleger estimates the Conoco spat could cost Venezuela as much as 500,000 barrels a day in exports, which is the upper end of the estimated impact of reimposed Iranian sanctions. An embargo could hurt even more. Don’t look east for oil’s next wild card, look south.

>>> US After Hours Summary: SEDG +6%, CVNA +5% are higher, while NUAN


After Hours Summary: SEDG +6%, CVNA +5% are higher, while NUAN -14%, INFN -11%, SYNA -7%, BKNG -6% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: MRAM +13.9%, WMGI +8.4%, SEDG +6%, EGLE +5.5% (light volume), CVNA +5%, SEP +4.7% (light volume), RUN +3.3%, PTLA +2.9%, GDOT +2.8%, CTL +2.7%, CPA +2.7%, UPLD +2.5%, ROKU +1.9%, IAC +1.8%, RNG +1.2%, ZTO +1.2%

Companies trading higher in after hours in reaction to news: SND 2.5% (light volume; to acquire substantially all of the assets of Quickthree Solutions; transaction provides for an aggregate purchase price of up to $42.75 million), QCOM 2% (approves new $10 bln stock repurchase authorization), AGS 1.9% (prices secondary public offering of 4.25 mln shares of common stock by Apollo Gaming at $21.50 per share), XRAY 1.8% (ticking higher after CFO discloses the purchase of 50K shares worth ~$2.2 mln), MNRO 0.5% (modestly rebounding; defended at Jefferies), TTD 0.5% (initiated with Outperform rating and $66 tgt at Oppenheimer)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: MDCA -16.8%, HDSN -14.9%, NUAN -13.9%, SPKE -10.9%, INFN -10.7%, OTEX -9.5%, KODK -7.3%, SYNA -7%, BOLD -6.5%, BKNG -5.7%, MELI -5.3%, IMMU -3.7%, AYX -3.4%, NVAX -2.9%, SAIL -2.3%, PBYI -2.1%, SUN -2.1% (light volume), ATUS -1.7%, ETP -1.5%

Companies trading lower in after hours in reaction to news: SNCR -11.8% (does not expect to regain compliance with the continued listing requirements set by the Nasdaq Hearings Panel prior to May 10), IART -5.6% (commences 5.25 mln common stock offering), NBR -5.4% (commences offering of 35 mln common shares and 5 mln of its new mandatory convertible preferred shares)