After Hours Summary: NFLX +20%, TACO +8% following earnings/guidance, CXW +5.6% lifting after contract and guidance updates, SEE +1% on spin-off news... IBM -3% following earnings/guidance, V -1.4% CEO succession planAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: NFLX +19.9%, TACO +8%, CXW +5.6% (announced that ICE amended contract with lower fixed payment/extension at the South Texas Family Residential Center; guides Q3 FFO in-line, FY16 light with FY17 above estimates), CE +3.8% (also announced to acquire Italy based SO.F.TER; terms not disclosed), GIG +1.5%
Companies trading higher in after hours in reaction to news: TWMC +16% (thinly traded and ticking higher -- to acquire digital marketplace retail company etailz for approx $75 mln in cash and stock; to be accretive in first full fiscal year), RECN +8.9% (intends to commence a modified 'Dutch auction' tender offer to purchase up to approximately 6 mln shares of its common stock at a price per share not greater than $16.00 nor less than $13.50), SPLS +2.3% (Staples higher in after hours following UK Telegraph story suggesting Cerberus may purchase its UK retail stores), SEE +1% (Sealed Air to pursue spin-off of Diversey Care and related hygiene business; reached a mutual agreement to end the existing business relating to Sealed Air's distribution of SCJ branded products), DEPO +0.8% (DepoMed and Starboard announce settlement agreement; Depomed Board to include three new independent directors, Starboard to withdraw request for Special Meeting), GEO +0.8% (CXW sympathy), AMZN +0.7% (higher with NFLX/tech names; also announced Cloud now available to customers from data centers in Ohio), SCTY +0.5% (has created a new fund to finance more than $300 mln in solar projects with Credit Suisse)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: BMI -6.5% (light volume), IBM -3.1%, CPSS -1%
Companies trading lower in after hours in reaction to news: NKTR -4.3% (announces a $175 mln underwritten public offering of common stock), V -1.4% (Visa CEO Charlie Scharf resigns effective December 1; co has appointed former American Express President Alfred Kelly, Jr. as CEO), JNJ -0.4% (Pfizer to begin shipment of INFLECTRA for injection, a biosimilar of Janssen's Remicade to wholesalers in the U.S. in late November), FBHS -0.2% (light volume; downgraded to Sector Weight from Overweight at KeyBanc)
Closing Market Summary: Bond Yields and Stocks RetreatThe major averages began the week on a modestly lower note as participants preferred a risk-off approach ahead of key economic data and a barrage of corporate earnings reports. The Dow Jones Industrial Average (-0.3%) settled in-line with the S&P 500 (-0.3%) and the Nasdaq Composite (-0.3%).
Equity indices and U.S. Treasury yields ticked lower at the beginning of the week as below-consensus economic data and a mixed set of corporate earnings came into focus. Treasuries were in demand following worse than expected readings of the Empire Manufacturing Survey for October and the Industrial Production/Capacity Utilization Report for September.
Treasuries continued inching higher throughout the session, leading to a flattening in the yield curve. The yield on the 2-yr note settled lower by two basis points (0.82%) while the yield on the benchmark 10-yr note finished lower by four basis points (1.77%). The yield spread between the 2-yr and 10-yr narrowed to 95 basis points after finishing last week at 97 basis points.
The downturn in yields offered support to beleaguered "yield play" sectors -- utilities (+0.6%), telecom services (+0.2%), and real estate (+0.1%) -- but also weighed on the heavily-weighted financial group (-0.4%).
Headwinds from a flattening yield curve and weaker-than-expected economic data masked above-consensus results from Charles Schwab (SCHW 31.69, -0.28) and Bank of America (BAC 16.05, +0.05). Meanwhile, Dow component Goldman Sachs (GS 169.00, -1.52) finished behind the price-weighted average ahead of tomorrow morning's quarterly report.
Seven sectors ended in the red with consumer discretionary (-0.8%), energy (-0.4%), consumer staples (-0.4%), and financials (-0.4%) acting as the largest laggards.
In the consumer discretionary space (-0.8%), restaurant names underperformed as Chipotle Mexican Grill (CMG 394.35, -9.79) declined by 2.4%. The stock was under pressure after having its price target lowered to $372 from $405 at Nomura. Meanwhile, Netflix (NFLX 99.80, -1.67) fell 1.7% ahead of this evening's quarterly report. Fellow F.A.N.G. member Amazon (AMZN 812.97, -9.99) also weighed despite receiving a price target increase at Credit Suisse.
The Dow Jones Transportation Average (-0.4%) finished behind the broader market as J.B. Hunt Transport Services (JBHT 78.45, -1.57) displayed relative weakness. The stock fell 2.0% after missing bottom-line estimates for the quarter. Meanwhile, United Continental (UAL 53.03, -0.17) ended lower by 0.3% ahead of this evening's quarterly report.
Health care plan providers underperformed in the health care space (-0.2%) as Anthem (ANTM 118.28, -2.81) fell 2.3%. The stock was downgraded to "Neutral" from "Overweight" at JP Morgan. Biotechnology finished ahead of the broader market, but the iShares Nasdaq Biotechnology ETF (IBB 265.72, -0.36) extended its monthly loss to 8.1%
Today's trading volume fell below the recent average of 859 million as 693 million shares changed hands at the NYSE floor.
Today's economic data included October Empire Manufacturing and the Industrial Production and Capacity Utilization Report for September:
- Industrial production increased just 0.1% in September (consensus +0.2%) after declining a downwardly revised 0.5% (from -0.4%) in August.
- The capacity utilization rate increased to 75.4% (consensus 75.6%) from a downwardly revised 75.3% (from 75.5%).
- The Empire State Manufacturing Survey fell to -6.8 in October (consensus +2.0) from -2.0 in September.
Tomorrow's economic data will include CPI for September (consensus 0.3%) and the NAHB Housing Market Index for October (consensus 59.0), which will cross the wires at 8:30 ET and 10:00 ET, respectively. The day's data will be capped off with the 16:00 ET release of Net Long-Term TIC Flows for August.
- Russell 2000: +6.6% YTS
- S&P 500: +4.0% YTD
- Nasdaq Composite : +3.8% YTD
- Dow Jones: +3.8% YTD
Louis Vuitton set to buy Pinarello
Negotiations underway as LVMH Group seek to enter high-end sports market
LVMH Moët Hennessy Louis Vuitton SE, better known as LVMH Group, is set to purchase the Italian bike brand Pinarello, according to a report on Tuttobiciweb.it. The European multinational luxury goods conglomerate headed by Bernard Arnault is looking to branch out into the sports and wellness markets.
LVMH Group is best known for its high-end brands Louis Vuitton fashion and handbags, Moet & Chandon champagnes, along with a wide range of luxury brands in the clothing, cosmetics, fashion accessories, jewellery, perfumes, spirits, watches and wines arena. However, according to the report, LVMH Group is interested in expanding into the sports, wellness and leisure markets with cycling's prominent brand Pinarello as its primary purchase objective.
The Pinarello brand was founded by Nani Pinarello, whose son Fausto Pinarello has been president since 1977. The company currently manufactures bicycles for the road, track and cyclo-cross, but its prized product is the F8 Dogma that ranges from €10,000 to €12,000. Pinarello is also involved in tourism and owns prime holiday real-estate along with luxury holiday and travel brand Pinarello Travel and the Pinarello Granfondo 'La Pina'.
LVMH Group was also attracted by the bike brands presence in professional cycling based on its equipment sponsorship of Team Sky, team of Tour de France winner Chris Froome. In July, Pinarello and Team Sky extended its partnership for a further four years.
Negotiations for the purchase began several months ago by a firm in Milan between the Treviso-based Pinarello and LVMH Group, and what needs to be settled on is only the final sale price, however, the deal could be complete soon. If the transaction becomes official, Fausto Pinarello will remain the CEO of the brand.
http://www.cyclingnews.com/news/louis-vuitton-set-to-buy-pinarello/?utm_content=buffer70d7c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
http://www.tuttobiciweb.it/index.php?page=news&cod=94940&tp=n
Louis Vuitton courtise Pinarello. La société vélo Treviso est dans le collimateur du groupe LVMH, dirigé par l'entrepreneur Bernard Arnault, supercolosso luxe qui possède les marques les plus connues, de Louis Vuitton Moet & Chandon, de Kenzo à Dior, aux maisons suisse montres et chronomètres.la négociation est initiée, menée par la société de Trévise par un studio dédié à Milan et pourrait bientôt améliorer. retenue maximale sur ITER, et le montant de la transaction. Mais il ressemble à un croisement LVMH s'ouvre le nouveau bord de luxe dans le sport, bien - être et de loisirs. Il a identifié le Trevisan la marque d'acquérir, ou de vérifier pour les vélos.
Les négociations - est né il y a quelques mois - il a été précédé par une réorganisation très délicate et complexe de la société holding de la famille: une grande petite galaxie étirement du contrôle de la société aux activités immobilières, la société en charge des voyages à la gestion des terres et d' autres actifs, les placements en actions dans d' autres sociétés, y compris Andrea Pina onlus Fondation. E 'était Fausto Pinarello - le fils aîné du fondateur Nani Pinarello - Pinarello actuel président de la société depuis 1977, pour gérer cette étape, avant la négociation avec le géant trans, qui ouvre sans aucun doute une nouvelle frontière.
Concentrés des marques de luxe, de la mode à l' alcool, de parfums aux montres, LVMH peut maintenant ouvrir la voie à un nouveau segment, celui du sport haut de gamme. À l' appui , il y aurait des partenaires américains.
Et il n'y a pas de doute que les derniers produits par les joyaux de l'avenue République - principalement la F8 Dogme, la «Ferrari des bicyclettes" - représente tout ce qui est la plus avancée dans le monde des deux roues. Avec des coûts en fonction de la performance, et la recherche de salut-technologie , ils sont en amont, allant de 10 à 12 mille euros pour un modèle.
Fausto Pinarello, si la transaction aboutit, restera à la tête de l'entreprise, cycles Pinarello, dont il est aujourd'hui président. Sa position serait de chef de la direction, toujours avec pleins pouvoirs. Les rumeurs disent aussi que rien ne changerait dans les stratégies des entreprises et des grands événements politiques ( en particulier le Pina, l' un des plus célèbre marathon dans le monde), et aussi dans le partenariat et le parrainage technique, qui est maintenant ajouté l'exposition de Marco Goldin sur les impressionnistes, avec beaucoup d'événements parallèles.
un signe de reconnaissance du fait que le luxe trans géant donne à l'entreprise Treviso, impostasi comme l' un des principaux acteurs, et scellé ces dernières années par la collaboration technique avec Sky cuirassé.
l'entrepreneur, dans le récent travail de restructuration à la détention, il a agi en respectant les actions de la famille, avec la division entre les quatre héritiers directs. Alors Ida Gobbo, la veuve du légendaire patriarche nain, qui est mort en 2014 à 92 ans; Gloria, veuve du troisième enfant, Andrea, qui est mort à seulement 40 ans en 2011, est mort à la fin d'une course cycliste dans le Frioul; et deuxième fille Carla Pinarello, soeur de Fausto. L'
année dernière , il y avait une autre réorganisation corporative, tout à l' intérieur de l'entreprise. Ils étaient sortis Roberto Della Pietà, épouse Carla Pinarello, et son fils Nicola Della Pietà, d' abord les gestionnaires de la famille désignés pour soutenir Fausto, après la mort prématurée de Andrea. En substance, les actifs de la dynastie avaient été signalés tout au long des héritiers directs de Nani. Avec le résultat que maintenant le senior et junior Della Pietà ont emménagé dans le domaine de Prosecco organique, avec le champion cycliste Marzio Bruseghin. Pourraient les rumeurs sur les Français de ne pas déclencher l'arrêt de la place? Il y a d' autres qui brode sur elle, "sera né Pinarello."
catalyst, but long journey aheadPop Milano and BP's shareholders have approved their plans to merge and change legal status into joint stock companies. This is a positive step for the sector, however we remain cautious on Italian banks until visibility improves on BMPS. We think BP has most to gain from the merger approval.
Altice – Growth priced in
We cannot rule out a new offer for SFR, but the timing is uncertain. Altice is improving across the board and may deliver above-sector growth rates on the back of the US, but this is well reflected in the current premium and an above-average leverage requires some extra compensation.
Altice shows willingness to raise stake in SFR
The acquisition of a 5.2% stake in SFR in an off-market transaction and the decision to appeal AMF’s decision indicates that Altice still has some willingness to increase its exposure to SFR and pay at least the same price (1.6x ratio, implied EUR25.5 per SFR share). However, the exchange offer has been terminated and we do not expect an imminent offer. But Altice may resume its offer, particularly in a scenario of French mobile consolidation although this time we think the deal would be structured in a different way, with Bouygues and Altice most likely teaming up. The economic benefits of such an integration are hard to ignore (NPV of c. EUR7bn) and although not in our estimates, such a scenario would provide some upside to Altice.
We still prefer SFR to Altice
We think Altice can deliver higher growth than European peers and SFR over the coming years (a 6.8% EBITDA CAGR over 2015-18E, driven by the US at 9.8%, with SFR at 4.4% and sector at 2%), but this is well reflected in the trading premium (Altice 7.6x EV/EBITDA 2017E, sector 6.7x, SFR 6.1x). Altice’s 2018 EquityFCF yield of 9.4% (SFR 7.3%, sector 6.8%) is compensation for higher debt (net debt/EBITDA 2017 5.0x, SFR 3.5x, sector 2.2x). We still see more upside at SFR (18% vs. 2.5%).
Altice raises stake in SFR
An offer is uncertain but Altice is probably still interested in raising its stake in SFR ahead of a potential consolidation deal in France. We adjust our TP and estimates on the back of the likely new management fee but still see some decent upside based on above sector EBITDA growth estimates
French consolidation cannot be ruled out
However, the exchange offer has been terminated and we do not expect an imminent offer. But Altice may resume its offer, particularly in a scenario of French mobile consolidation that in our view is still possible (more likely after French presidential elections in spring 2017). This time, we think the deal would be structured in a different way, with Bouygues and Altice most likely teaming up their respective telecom units. The economic benefits of such an integration are hard to ignore (NPV of c. EUR7bn) and although not in our estimates, such a scenario would also provide solid support to SFR.