>>> Lionsgate invests in e-sports franchise Immortals

Lionsgate invests in e-sports franchise Immortals

Lionsgate (NYSE: LGF.A, LGF.B), the Santa Monica, California-based entertainment company, has invested in leading eSports franchise Immortals, joining a consortium of partners including Michael Milken and Steve Kaplan in eSports.
Press release follows:
Reflecting its continued focus on the potential of the eSports market, Lionsgate (NYSE: LGF.A, LGF.B), a premier next generation global content leader, announced today that it has invested in leading eSports franchise Immortals. The Company joins a consortium of world-class investors that includes financier and philanthropist Michael Milken and previous investors Steve Kaplan, co-founder of Oaktree Capital and co-owner of The Memphis Grizzlies and the Premier League's Swansea City, investor Gregory Milken, Third Wave entrepreneur Allen DeBevoise and CrossCut Ventures, among others.
The Immortals currently compete worldwide for over 200 million fans in League of Legends, Counterstrike GO, Overwatch and Super Smash Brothers. The eSports market is projected to grow to over USD 1bn by the end of next year, and the League of Legends World Championships were played at a sold-out Staples Center in Los Angeles this past year.
"We're delighted to be an early mover in a market that has the potential to transform the face of sports entertainment," said Lionsgate President of Interactive Ventures & Games Peter Levin. "Our involvement in eSports creates tremendous opportunities to develop new content and utilize our suite of distribution platforms for a coveted consumer demographic with compelling engagement metrics. Collaborating with an elite group of partners, the combination of the Lionsgate and Immortals brands will be formidable."
"Lionsgate joins a dream team of media, tech and traditional sports partners who share our vision of building a dynamic Immortals organization and a strong e-sports foundation," said Immortals Chairman and CrossCut Ventures Managing Director Clinton Foy. "What we're doing today in eSports is like the early days of building the NFL and NBA. It's not the evolution of games – it's the evolution of sports, technology and media."
"Lionsgate is the perfect entrepreneurial partner for our Immortals family," said Immortals CEO Noah Whinston. "Immortals and Lionsgate are both focused on developing new entertainment formats, and we're thrilled to collaborate with them at the cutting edge of eSports media."
Lionsgate's investment in Immortals is the latest step in the Company's eSports initiative. Last year Pilgrim Media Group, in which Lionsgate is a majority investor, announced that it was partnering with ESL, the world's largest eSports promoter, to create original eSports entertainment content for television and digital platforms. Their first collaboration, in partnership with Microsoft, will be centered around the iconic gaming brand Halo. Lionsgate was also an early investor in live streaming mobile gaming platform Mobcrush.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • HGG -51.9%, (HHGregg sees fiscal Q3 sales of ~$453 mln vs. $564.3 mln Capital IQ Consensus Est; co expects to incur a non-cash charge for asset impairment of $7-12 mln of certain locations in the quarter ended December 31, 2016), ASNA -20.1%, WDFC -8.6%, FRSH -7.1%, (issues downside Q4 revenue guidance), NSTG -6.4%, BOOT -5.3%, (Boot Barn Holdings reports light prelim Q3 results ahead of ICR conf), SHOO -4.9%, CRAY -4.2%, (anticipates 2016 revenue to be in previously provided range; believes it will be difficult to grow over 2016 in 2017 ), HALO -4.1%, (guides 2017 revenue below expectations), SCVL -2.3%, (sees FY17 $1.36-1.38 vs $1.49 Capital IQ Consensus Estimate; sees revs $1.000-1.003 bln vs $1.00 bln Capital IQ Consensus Estimate), ABMD -2.2%, (offers prelim Q3 rev results, reaffirms FY17 outlook ahead of presentation at the Annual J.P. Morgan Healthcare Conference), VTR -1.2%, HRC -1.1%, FLDM -1%, ( guides Q4 revenue below consensus ),
Other news:
  • AKER -29% (prices 1,667,000 shares of common stock at $1.20 per share, together with 833,500 five-year warrants to purchase common stock with an exercise price of $1.50)
  • WMB -10.3% (prices 65 mln shares of common stock at $29.00 per share)
  • ATW -5.9% (commenced an underwritten public offering of 13,500,000 shares of common stock)
  • WPZ -4.3% (announce financial repositioning for long-term, sustainable growth; Both cos announced an agreement to permanently waive payment obligations), CIO -3.3% (commences 4 mln common stock offering)
  • MACK -1.9% (modestly pulling back following yesterday's strength)
  • DM -1.5% (Dominion Midstream files for offering of 25,383,348 common units representing limited partner interests by selling unitholders ),
Analyst comments:
  • WRLD -2.3% (downgraded to Underperform from Hold at Jefferies)
  • EXPE -0.9% (initiated with a Sell at Citigroup)
  • GS -0.8% (downgraded to Sell at Citigroup)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • PXLW +12.4%, (sees Q4 revs at high end of guidance, expects to report GAAP profitability ) CUDA +8.5%, MDRX +6.7%, (ticking higher; reaffirms Q4 guidance and provides initial outlook for 2017 ), ZBH +3.8%, CMG +2.5%, EXPR +1.8%, OFIX +1.8%, TACO +1.7%, (preannounces Q4 sales with comps +5.5%, just above estimates), VOXX +0.9%, ZLTQ +0.7%, (discloses commercial leadership transition, provides prelim Q4 results, FY17 guidance),
M&A news:
  • VRX +11.7% (divests its CeraVe, AcneFree and AMBI Skincare brands To L'Oreal (LRLCY) for $1.3 bln; also to divest Dendreon for $819.9 mln; )
Select metals/mining stocks trading higher:
  • RIO +5.1%, VALE +4.7%, BBL +4.7%, CLF +4.6%, MT +4.4%, FCX +4.1%, X +2.9%, AKS +2.3%
Other news:
  • NGNVC +44.5% (continued strength; extending late surge higher yesterday), XGTI +20% (regains full compliance with all listing requirements of the Nasdaq), ILMN +14% (confirms the introduction the NovaSeq Series, a new and scalable sequencing architecture expected one day to enable a $100 genome; Illumina and Bio-Rad Laboratories launch of the Illumina Bio-Rad Single-Cell Sequencing Solution), ARRY +8.1% (still checking), PTX +6.3% (continued strength), SSI +5.7% (modestly rebounding), KITE +3.5% (Kite Pharma enters into a strategic partnership with Daiichi Sankyo Co for axicabtagene ciloleucel) PSTI +3.4% (announced that its Phase III study of its PLX-PAD cells in the treatment of critical limb ischemia was cleared by the FDA; expects to begin enrolling patients in its Phase III study in both the U.S. and Europe during 1H17), BIO +3% (Illumina and Bio-Rad Laboratories launch of the Illumina Bio-Rad Single-Cell Sequencing Solution), PBR+2.8% (prices $4 bln in Global Notes), CNDT +2.4% (higher in after hours after Carl Icahn affirmed 9.77% active stake in the Xerox (XRX) spin-off ), ZIOP +2.4% (ZIOPHARM & Intrexon (XON) announce cooperative research and development agreement with the National Cancer Institute utilizing sleeping beauty system to generate T cells targeting neoantigens),FEYE +1.7% (in sympathy with CUDA), CYBR +1.1% (in sympathy with CUDA),
Analyst comments:
  • TIME +2.7% (upgraded to Outperform from Market Perform at Wells Fargo), ETFC +1.8% (upgraded to Buy from Neutral at Goldman ), VOD +1.7% (upgraded to Buy from Neutral at Goldman ), XRX +1.6% (upgraded to Buy from Neutral at Goldman ), BIDU +1% (upgraded to Buy from Hold at Stifel)

FT : Investors spar over great rotation from bonds to equities

Investors spar over great rotation from bonds to equities
Long predicted by some, dismissed as fake news by others until stronger signs of US growth


The debate about “fake news” has gripped politics since the election of Donald Trump in November and has entered markets as investors spar over a “great rotation” from bonds into stocks.

Long predicted by some analysts, expectations of a pronounced rotation out of low yielding bonds and defensive share sectors into areas of the equity market that prosper from faster economic growth have been heightened by the prospect of the so-called “Trumpflation” trade.

Like many arguments about “fake news”, there is evidence to support both sides.

In the two months following Trump’s election win, $41.5bn was pulled out of bond funds, the largest redemptions since the taper tantrum of 2013, according to Bank of America Merrill Lynch.

In the same period, the bank said in a recent note, almost $70bn flowed into US equity funds, as expectations about higher growth and inflation hurt bond prices.

Not so fast say others. Analysts at Goldman Sachs likened chatter about a lasting rotation out of bonds and into equities to the “misinformation, half-truths, and political spin” seen during the 2016 US presidential election.

In a note this week “Debunking the ‘fake news’ of the imminent great rotation from bonds to stocks”, David Kostin, the bank’s chief US equity strategist, said: “The political rotation occurring in Washington DC will not be mirrored in financial portfolios”, arguing that too many holders of US debt are constrained as to what assets they can own.

Those that have more flexibility, such as pension funds and households, already “have debt allocations that are currently at the lowest level in 30 years”, Mr Kostin writes.

The argument does not convince Jim Tierney, chief investment officer of AllianceBernstein’s US concentrated growth fund, who says a rotation from bonds into equities has been “long overdue for two or three years”.

“I think if we get into an economic environment or scenario where investors have an expectation of low to no returns for a prolonged period of time, the vast majority of investors will find a way to get out of that asset class,” he says.



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The question now, he says, is whether or not Trump and the Republican-controlled Congress can deliver on investor’s expectations for tax cuts, deregulation and higher growth. With confirmation hearings for Trump’s cabinet appointments having started this week, investors are on the lookout for any signs that the president-elect will have a fractious relationship with Republicans in Congress.

“You’re hearing about a little bit of infighting, so investors are reassessing and thinking it won’t be as smooth a ride as we thought,” he says.

Indeed bond funds saw their strongest inflows in three months last week, according to Bank of America Merrill Lynch.

Michael Hartnett, chief investment strategist at the bank, says the big positioning shifts will not happen until “the Fed’s become more hawkish and the economy has shrugged its shoulders”.

He points to the extreme facts of economic conditions in recent history, noting $1.5tn of inflows to bond funds over the past 10 years, the lowest global interest rates in thousands of years, and, in particular, the moment last July when yields on even the 50-year Swiss government bond went below zero.

“Perhaps -0.035 per cent on a 50-year Swiss bond was an undershoot and will be corrected more violently than people give credit for in the early part of this year,” he said.

The result of this swing back from such extreme positions, he argues in a note this week, is that the shift from “Davos Man” to “Joe Six-Pack”, from secular stagnation, deflation and globalisation into growth, inflation and isolationism will be “violent, extreme and ultimately overshoot”.

Les Echos : Sauvetage d’Areva : vers un feu vert sous conditions de Bruxelles

Une décision de la Commission européenne sur le plan de sauvetage du groupe nucléaire public devrait intervenir dans l’après-midi. Selon nos informations, Areva devrait dans un premier temps faire appel à un prêt d’actionnaire de l’Etat.

Le cours de l'action d'Areva a été suspendu ce midi à la demande du groupe, dans la perspective de la publication d'un communiqué, a indiqué Euronext. Selon nos informations, la Commission européenne s'apprête à rendre une décision sur le plan de restructuration présenté par le groupe et son premier actionnaire, l'Etat. Selon deux sources, la Commission européenne autoriserait le plan de sauvetage sous conditions. Celles-ci, liées au rachat des actifs d'Areva NP (la branche Réacteurs) par EDF, obligeraient le groupe nucléaire public à solliciter dans un premier temps un prêt d'actionnaire auprès de l'Etat.

Dans ses plans initiaux, Areva prévoyait une augmentation de capital de 5 milliards d'euros dès le mois de février. Pour autoriser une aide d'Etat massive (4,5 milliards d'euros sur les 5 milliards de recapitalisation), les services de la commissaire européenne à la Concurrence souhaiteraient d'abord étudier le dossier de rachat des actifs d'Areva NP par EDF, selon ces sources. L'électricien public a déposé mi-novembre une offre ferme valorisant ces actifs 2,5 milliards d'euros. Mais cette offre est soumise à plusieurs conditions suspensives, notamment l'examen par l'Autorité de sûreté nucléaire de la conformité de la cuve de l'EPR en construction à Flamanville (Manche). Bruxelles souhaite également vérifier que cette acquisition par EDF soit bien conforme aux règles en matière de concentration et de concurrence.

Mi-décembre, Areva et son premier actionnaire l'Etat (à 86 %) avaient transmis aux services de la commissaire européenne à la Concurrence les derniers éléments du plan de sauvetage. Outre l'offre ferme d'EDF pour reprendre les actifs de la division Réacteurs, Areva avait présenté l'offre d'investisseurs -les japonais MHI et JNFL, pour 10 % du capital de NewCo soit 500 millions d'euros.

>>> Chipotle Mexican Grill follow up: Sees Q4 EPS well below consensus with impr

Chipotle Mexican Grill follow up: Sees Q4 EPS well below consensus with improvement in December sales as comps eased; adds $100 mln to buyback
Sees Q4 EPS $0.50-0.58 vs $0.98 Capital IQ Consensus; revs $1.035 bln vs $1.05 bln Capital IQ Consensus; comps -4.8% vs. ests near -3.5%.
  • Comparable restaurant sales for the quarter decreased 4.8%, which includes the benefit of 0.5% related to previously deferred revenue that was recognized in the fourth quarter. Comparable restaurant sales decreased 20.2% in October 2016, decreased 1.4% in November 2016, and increased 14.7% in December 2016. Sales comparisons are lapping an easier compare due to lower sales levels in November and December 2015.
  • Operating margin 13-14%. "During the quarter we incurred higher expenses compared to our originally-forecasted amounts in other operating costs, driven by increased promotional spend and costs related to testing television advertising. Our marketing and promotional expenses during the quarter totaled ~4.7% of sales. We also incurred higher food costs compared to our originally-forecasted amounts as a result of increased market costs for avocados."
  • This report is also filed to announce that Chipotle's Board of Directors has authorized repurchases of Chipotle common stock with a total aggregate purchase price of $100 million, exclusive of commissions. This repurchase is in addition to previously announced repurchase authorizations totaling $2.1 billion.

WSJ : Alibaba Is Better at Selling Than Buying

Alibaba Is Better at Selling Than Buying
At $2.6 billion, a 42% premium, a bigger stake in department-store operator Intime Retail is no bargain

Alibaba has gone shopping again—and picked up another nonbargain.

The New York-listed Chinese e-commerce titan said it will pay up to $2.6 billion to raise its stake in Hong Kong-listed Chinese department-store operator Intime Retail to around 74% from 28%.

Even for a company with a $230 billion market cap, that’s a lot to pay for a deal that probably won’t work. But it is in keeping with Alibaba’s scattershot approach. The company has spent nearly $30 billion on acquisitions since 2015, according to Dealogic, and while some deals have made strategic sense—like last year’s $1 billion investment in Lazada, an e-commerce company with a strong presence in Southeast Asia—many others serve no obvious purpose. Among the businesses it has jumped into: a soccer club, film studios and a Hong Kong newspaper.

Alibaba ended September with $3 billion in net cash, down from $12 billion in 2015, despite generating billions in cash every year from its core e-commerce business.

While looking to get in on the “next big thing” is natural for a technology company, it is hard to argue that a brick-and-mortar retailer qualifies. But Alibaba, having followed its initial 2014 Intime investment by paying a premium price of $4.5 billion for 20% of Chinese electronics chain Suning Commerce Group in 2015, is now looking to double down on Intime at a 42% premium. That’s an above-peer 23 times forward earnings for a company whose sales has been sliding.

Alibaba, still in the red on Suning, says it can integrate Intime’s online and offline customer data and improve inventory efficiency.

“Online to offline,” or O2O, has been a tech buzzword in China in the past few years, as its biggest tech companies spend billions on mobile services that let users to hail taxis, order food or buy movie tickets. But there’s a difference between operating a taxi-hauling app and running a department store or shopping mall.

And unlike Amazon, which sells directly to consumers, Alibaba acts merely as an online platform for merchants. Actually running a retail operation with inventories adds to the company’s risks.

This will be a pricey shopping trip for Alibaba.