Gapping down
In reaction to disappointing earnings/guidance:
- CVGI -16.8%, TLYS -14.5%, ATRS -10.1%, KURA -9.5%, FENG -9.1%, NCMI -9%, LBRT -7.8%, SFIX -7.3%, DKS -5.3%, MLNT -3.3%, INWK -2.5%, COUP -1.6%, AKBA -1.5%, DSW -1%
M&A news:
- QCOM -5% (Qualcomm acquisition by Broadcom (AVGO) blocked by President Trump)
Other news:
- ADXS -21.7% (announces clinical hold in Axalimogene Filolisbac Phase 1/2 combination study with AstraZeneca's IMFINZI; reprots Q1 results)
- BL -5.5% (prices 8 mln shares of common stock by selling shareholders at $41.50 per share)
- MYGN -4.6% (recently received a Subpoena from the Department of Health and Human Services, Office of Inspector General, in connection with an investigation into possible false or otherwise improper claims submitted for payment under Medicare and Medicaid)
- SNSS -4.4% (announces cancellation of presentation and webcast at Cowen & Company 38th Annual Health Care Conference due to travel changes caused by inclement weather)
- MC -4.3% (prices offering $5 mln shares of common stock at $51.00 per share)
- EDIT -2.8% (files mixed securities shelf offering and files for $150 mln common stock shelf offering)
- SABR -1.7% (prices secondary offering by selling shareholders of of 15 mln shares of common stock at $22.45 per share)
- AWI -1.6% (attributed to block trade pricing)
Analyst comments:
- JCP -2.5% (initiated with Underperform at Credit Suisse)
- FINL -1.9% (light volume; initiated with Underperform at Credit Suisse)
Gapping up
In reaction to strong earnings/guidance:
- INFU +11.3%, VNET +7.2%, HDS +4.1%, GDS +3%, REN +2.1%, TTEC +2.1%, UAL +2.1%, (guidance) AMPH +2%, CLAR +1.4%, X +1%, (provides 2018 guidance with EBITDA of approx $1.7 bln and reaffirms Q1 EBITDA guidance of approx $250 mln), IRET +0.8%
M&A news:
- AVGO +1.4% (Qualcomm acquisition by Broadcom (AVGO) blocked by President Trump)
Other news:
- PTI +53.4% ( announces that the FDA has granted Breakthrough Therapy Designation for PTI-428, the Co's cystic fibrosis transmembrane conductance regulator (CFTR) amplifier)
- ALT +14.9% (Altimmune announces data from a pre-clinical study comparing SparVax-L and BioThrax against anthrax infection; data from the study showed a 67% survival rate in animals challenged with a lethal dose of anthrax after a single dose of SparVax-L)
- ATHX +10.9% (binding letter of intent to expand MultiStem collaboration)
- BLCM +9.6% (reports interim clinical data of BPX-501 in pediatric patients with acute myeloid leukemia and primary immunodeficiencies)
- AMRN +4.6% (Vascepa showed reductions in potentially atherogenic lipids and inflammatory markers )
- WTI +2.9% (W&T Offshore entered into joint exploration and development agreements with a group of investors with initial capital commitment of $230.5 million)
- INTC +2.2% (positive mention on MadMoney)
- DRYS +1.4% (modestly higher after releasing investor presentation)
- CERS +1% (announces that the Community Blood Center of Appleton, Wisconsin received approval by the FDA on the BLA requesting allowance of interstate distribution of platelets that have been pathogen-reduced with the INTERCEPT Blood System)
Analyst comments:
- MU +3.8% (target raised to $66 at Mizuho)
Nokia: Solidium Oy acquires 3.3% of the shares in Nokia for approximately EUR 844 mln
"The appealing factors for us are the company's strong market position combined with broad technological expertise, which provides opportunities for value creation. In line with our mandate, we hereby strengthen and stabilize the domestic ownership in this nationally very important company", says Solidium's CEO Antti Mäkinen.
Early premarket gappers
Gapping up: PTI +43.7%, ALT +17.8%, VNET +7.2%, AMRN +4.6%, WTI +2.9%, MU +2.3%, REN +2.1%, TTEC +2.1%, AMPH +2%, CVE +1.6%, DRYS +1.4%, CLAR +1.4%, INTC +1.3%, AVGO +1.2%, COUP +1.1%, IRET +0.8%, KRO +0.8%
Gapping down: ADXS -23.1%, CVGI -16.8%, TLYS -14.2%, KURA -11.2%, FENG -9.1%, NCMI -9%, LBRT -7.8%, SFIX -6.6%, BL -5.5%, QCOM -5.2%, MYGN -4.6%, EDIT -4.2%, MC -4.2%, AQUA -2.7%, INWK -2.5%, SABR -1.7%, JCP -1.5%, AKBA -1.5%, AWI -0.8%
Michel Barnier, the EU’s Brexit negotiator has warned that the UK has yet to face up to the “hard facts” of Brexit, as he underlined that Brussels will not grant “à la carte” access to the single market.
Echoing language from a speech by Theresa May earlier this month, Mr Barnier said that “it is time to face up to the hard facts” on Brexit, in comments that cut directly across key aspects of the UK prime minister’s negotiating stance.
A country cannot have the “the status of a third country and at the same time want the advantages of the union,” he said.
Speaking in the European Parliament in Brussels, Mr Barnier explicitly ruled out any chance for Britain to secure the crucial “mutual recognition” of its regulatory standards it needs to access the single market, unless it accepts EU oversight of its rules.
“One cannot solicit, from the outside, mutual recognition of rules and standards, were that to repose only on trust,” he said. It needs “common law, coherent supervision and one legal authority,” he said.
“We could not allow someone to participate in our agencies “without the legal obligation to apply EU law, and without the jurisdiction of the Court of Justice,” he said.
The EU must be particularly vigilant to prevent any risk of regulatory dumping, he said.
“It’s a fairly astonishing idea to think that the 27 member states and your parliament could accept convergence when the UK wants it, while leaving it at the same time the possibility to deviate when it sees a competitive advantage,” he said.
MergerMarket.com
HNA Cold Chain considering fundraise in 2H18 to fund M&A, source says
13 MAR 2018
HNA Cold Chain [NEEQ:831900], a Beijing, China-based cold chain logistics solutions provider, is considering a fundraise in 2H18 via a minority stake sale to finance its acquisition plans, a source familiar with the situation said.
The company would issue new shares for the fundraising and the size could be several hundreds of millions of CNY. It will work on the details closer to June, the source said.
HNA Cold Chain has an internal team reviewing potential targets both in China and overseas markets, like the US, Europe, Southeast Asia and Australia. Approaches from financial advisors with suitable targets in mind will be entertained, the source said.
It would take on board both strategic and financial investors, with companies having expertise in logistics and transport sectors highly regarded. The company is not likely to sell to overseas investors, as that could complicate any attempt to seek an initial public offering (IPO) in China in the future. A timeframe for the IPO is undecided, the source said.
The company has already been approached by several interested parties, but it does not plan to engage in formal negotiations until June, the source said.
Proceeds will be earmarked to fund HNA Cold Chain’s acquisitions to keep improving the company’s logistics network coverage, the source said.
It considers companies engaged in the provision of cold chain logistics, storage and warehousing services as potential targets, with companies that use its services for fresh agricultural produce and food considered ideal, the source said.
HNA Cold Chain will also look at companies that provide Internet of Things (IoT) solutions for cold chain businesses, like online remote monitoring devices that can provide live data on temperature and location of the transport fleet as well as warehousing, the source noted.
HNA Cold Chain acquired a 30% stake in Henan Bingxiong Refrigerated Truck, a special truck maker, and a 34% stake in Beijing Sino Supply Chain, a medical cold chain technology R&D and application company, for CNY 192m and CNY 154.55m, respectively in 2016, according to the company’s announcement.
Established in 1997, HNA Cold Chain provides cold chain services for fresh agricultural produce, seafood, frozen food, chemicals, and pharmaceutical drugs.
Nantong Square Cold Chain Equipment [SHA:603339] is a peer of HNA Cold Chain, a sector banker said. Nantong Square Cold Chain Equipment trades at a P/E ratio of 29x.
With total assets of CNY 2.68bn, HNA Cold Chain had revenues of CNY 953m and a net profit of CNY 17m in 1H17. Logistics services provider HNA Logistics Group is the company’s largest shareholder with a 40.66% stake, according to its 1H17 report.
HNA Logistics Group is a subsidiary of Hainan-based conglomerate HNA Group. As reported, HNA Group is selling various assets both domestically and overseas to resolve its financial problems.
Asked if HNA Group could put HNA Cold Chain’s shares up for sale, the source said as far as the company is concerned, HNA Group has no plans to divest the company at this stage.
HNA Cold Chain declined to comment.