>>> Bankia block trade could be delayed if share price remains weak - sources

Bankia block trade could be delayed if share price remains weak - sources
Spain’s Orderly Bank Restructuring Fund (FROB) is in no rush to hold a block trade for Bankia [BME:BKIA] if no window appears, said a source and a person familiar with the situation.
The FROB has been gearing up for a November block trade, with February as a Plan B, it was reported last month. However, Bankia’s share price has fallen since then and a placement this year is looking unlikely as matters stand, said the source familiar.
Bankia’s shares are trading at EUR 3.91, giving it a market capitalization of EUR 11.27bn. This places the stock about halfway between its 52-week low of EUR 3.25 and its high of EUR 4.68.
The stock trended up through October, holding EUR 4.00 through most of the month, but has been falling since the end of the month.
The FROB is in no rush to hold the next block trade, said the person familiar with the situation. There is “no obligation” to do it this month, the person said.
The government-backed agency has until the end of 2019 to fully exit Bankia, the person said. If the privatization takes longer, it could ask for an extension, the person added.
The FROB is being advised by Nomura, while Bankia’s 67.5% shareholder Banco Financiero y de Ahorros (BFA) is being advised by Rothschild, the person said. The two financial advisers have put together a pool of pre-qualified banks for the accelerated bookbuild (ABB), the source said. The panel of banks are monitoring the market for a window, the person added.
Bankia is currently merging with another FROB-owned bank, Banco Mare Nostrum (BMN), in a deal which is expected to be closed next month. The deal is equivalent to just 6.67% of Bankia’s post-merger capital and an ABB could take place before the merger closes, this news service said in July.
A spokesperson for the FROB declined to comment.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • SPWH -11.8%, WSM -11.7%, (also announces acquisition of Outward, Inc for all cash consideration of $112 mln), CORI -6.5%, DXLG -6.5%, MATW -2.1%, POST -0.9%

M&A news:

  • CHTR -1.1% (WSJ reported Comcast may be interested in Fox acquisition)

Other news:

  • HTBX -14.7% (to offer for sale shares of its common stock in an underwritten public offering; size not disclosed)
  • VBLT -12.2% (to offer 2.5 mln ordinary shares in an underwritten public offering)
  • ICON -6.6% (Iconix Brand receives NASDAQ letter for delayed 10-Q (as expected); Company anticipates filing by January 16 and believes that submission of a plan will not be necessary)
  • MCRN -4.3% (announces secondary offering of 13,090,155 shares of common stock by selling stockholders )

Analyst comments:

  • FITB -0.5% (downgraded to underperform at Macquarie)


>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • DCIX +30.3%, FL +22.9%, ANF +22.7%, SCVL +21.1%, HIBB +18.9%, SPLK +14.9%, NGVC +9.8%, ROST +8.8%, GPS +7.7%, BKE +7%, SFUN +5.6%, AMAT +3.7%, GLOB +2.1%, LXFT +1.2%, ASND +0.5%

M&A news:

  • FOXA +7.5% (WSJ reported Comcast may be interested in Fox acquisition)
  • TIME +4% (WSJ reporting MDP bid for TIME in $17-20 per share range)

Select Cable related names trading higher in sympathy with the M&A reports:

  • DISCA +4.4%, LGF.A +2%, TWX +0.8%, VIAB +0.6%

Other news:

  • MYOS +5.9% (CEO disclosed purchase of 25000 shares worth approx)
  • IPAS +4% ( enters into common stock purchase agreement with Aspire Capital for the sale of 1,867,692 shares of iPass common stock at $0.54 per share for proceeds of $1,000,000)
  • TSLA +3.7% (introduces new Semi truck & roadster electric models; J.B. Hunt Transport Services (JBHT) placed a reservation to purchase multiple Tesla Semi tractors to be manufactured by Tesla)
  • MXWL +3.4% (Director disclosed purchase of 250K shares valued at approx $1.3 mln)
  • AGIO +2.7% (reports Phase 1 study evaluating single agent ivosidenib)
  • NKE +2.3% (increases quarterly dividend to $0.20/share from $0.18/share)

Analyst comments:

  • SQ +1.3% (upgraded to Outperform from In-line at Evercore ISI)
  • OXY +1.3% (added to Conviction Buy list at Goldman)

>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • ANF +29.9%, SCVL +22.2%, FL +20.3%, FL +20.3%, HIBB +18.5%, SPLK +15.4%, NGVC +9.8%, GPS +9.2%, ROST +7.7%, RVNC +6.3%, FOXA +5.9%, MYOS +4.4%, IPAS +4%, TIME +3.7%, MXWL +3.4%, VIAB +3.2%, AMAT +3.1%, DISCA +3%, SFUN +2.6%, SFUN +2.6%, NKE +2.1%, GLOB +2.1%, LGF.A +2%, BKE +1.5%, LXFT +1.2%, TWX +0.8%, ASND +0.5%

Gapping down:

  • SPWH -11.8%, WSM -11.3%, VBLT -9.4%, ICON -6.6%, MCRN -5.4%, DXLG -4.1%, MATW -2.1%, CBS -1.6%, CHTR -1.1%, POST -0.9%

(FBR) 21st Century Fox target raised to $36 at B. Riley FBR, Inc. -Deal talk bol

21st Century Fox target raised to $36 at B. Riley FBR, Inc. -Deal talk bolsters argument for realization of SOTP

B. Riley FBR, Inc. raises their FOXA tgt to $36 from $29. The report last week of stalled talks with Disney was followed up, on Thursday, post-close, with reports from the media (including the WSJ and CNBC) that Fox has attracted interest from Comcast and Verizon. They do not know if a deal will be done. In fact, the prospect of a potential DOJ antitrust challenge to the pending AT&T/TWX merger would seem to cast some doubt on anything happening. Still, this many reports, in quick succession from credible media, means that the formerly unthinkable prospect of someone else buying most of Murdoch-controlled Fox is likely to be factored into the equity price for some time. They do not change their Neutral rating-because the indicated movement of Fox's stock, after hours, would make upside to their price target less compelling, and there is meaningful risk a deal does not happen.

FOXA +7% premarket.

(BofA-ML) the Flow Show - The Da Vinci Flow

Key takeaways
* HY blinks...3rd largest outflow ever; EM shrinks...debt outflows largest 42 weeks; Tech winks...2nd largest inflows ever
* Mini taper tantrum kick-started by ECB reminds investors of Draghi as savior of global liquidity & risk assets
* Air in risk assets getting thinner but Big Top still ahead of us

* Our big 2017 bull: ECB & BoJ have bought $2.0tn of financial assets, Bitcoin up from $952 to $7800, yield on European HY bonds fell below yield on US Treasuries; market cap of FAANG+BAT grew $1.5trn; equity vol fell to 50-year low, bond vol to 30-year low
* Weekly flows: $0.9bn redemptions from bond funds (largest in 47 weeks), $3.2bn into equity funds ($9.9bn into ETFs, disguising largest week of LO outflows in 2017)
* BofAML Bull & Bear Indicator: drops to 6.7 (on equity breadth, big HY outflows, less bearish GT2 positioning); peak-to-trough moves following recent Bull & Bear peak of 7.6 on Oct 26 …SX7E -7%, BKX -6%, EMD -3%, JNK -3%, EEM -3%
* Mario, Salvator Mundi: recent 3-week "mini taper tantrum" kick-started by ECB tapering announcement; EU HY spreads up 50bps since Oct 26 (back above Treasuries); investors remain heavily reliant on Draghi as savior of global liquidity & risk assets
* HY blinks…EM shrinks: 3 largest week of High Yield fund outflow on record ($6.7bn); note Q4'15-Q1'16 meltdown in HY saw $25bn outflows; EM Debt outflows (largest in 42 weeks); but IG inflows continue to be strong
* …Tech winks: 2 largest inflow ever to tech funds ($1.1bn) after record last week ($1.3bn); EM debt, financials & tech big 3 flow winners of 2017
* HY to Treasuries: Treasury funds see 1 inflows in 9 weeks ($0.5bn); note HY redemptions have led to UST inflows 70% of time since 2014
* China, Salvator Mundi: big PBoC liquidity injections (CNY360bn thus far in Nov, driving China 10-year yields back below 4%) + no IG contagion from HY + CPI still not surprising to upside + US tax reform = Nov sell-off "dress rehearsal" not Big Top
* Dip & rip: consensus "no fear of Fed/ECB/BoJ/PBoC" unshaken…dip'n'rip price action; inflation catalyst missing; air in risk assets getting thinner but Big Top still ahead of us


Asset Class Flows
* Equities: inflows 21 of past 23 weeks ($3.2bn; $9.9bn into ETFs, $6.7bn largest weekly outflows from mutual funds YTD)
* Bonds: small outflows for first time in 35 weeks ($0.9bn)
* Precious metals: small week of outflows ($0.2bn)