>>> Unicredit has Jean Pierre Mustier as favourite to become CEO

Unicredit has Jean Pierre Mustier as favourite to become CEO – report 

Unicredit, the listed Italian lender, has Jean Pierre Mustier as favourite to become its new CEO, Italian-language daily La Stampa reported.

The unsourced report said that Mustier emerged as the leading candidate following a series of meetings among Unicredit's senior management and shareholders yesterday 29 June.

The report noted that Mustier is presently a partner at Tikehau Capital but in the past headed Unicredit's major business and investment activities.

The report noted that the Unicredit nominating committee is expected to give today a clearer indication of who will become CEO. The report said that the nominating committees recommendations could be given to the Unicredit earler than 11 July.

The report said that the nominating committee is likely to put forward a shortlist of two-three candidates. The report said that in addition to Mustier, BMPS CEO Fabrizio Viola and Flavio Valeri, presently at Deutsche Bank, could be on the list.

As previously reported, a new CEO could open the way for a capital increase of EUR 5bn-EUR 7bn and a sale of a number of assets held by Unicredit.

La Stampa article sourced from print copy: page 20


Source La Stampa

>>> FCC shareholder Bill & Melinda Gates Foundation seeks higher offer from Carl

FCC shareholder Bill & Melinda Gates Foundation seeks higher offer from Carlos Slim - report (translated)
Story
The Bill & Melinda Gates Foundation is asking Carlos Slim to increase its EUR 7.6 per share offer for the Spanish construction and infrastructures group Fomento de Construcciones y Contratas (FCC), El Confidencial reported.

The Gates' Foundation claims that the offer price should be in line with the debt-related agreements with the Spanish bank Bankia and refinancing agreements signed between FCC shareholder Esther Koplowitz and BBVA, the unsourced Spanish-language report said.

Carlos Slim has presented an offer via his vehicle Control Empresarial de Capitales valued at EUR 1.529bn. At the time of launch, the offer represented a premium above FCC's stock market value of 15%. Since then, FCC stock has retained the price set by Slim, the report noted. Inversora Carso holds a majority of FCC, which helps protect the offer against a possible rival bid.

The Bill & Melinda Gates Foundation holds 6% of FCC, after acquiring 7,638.198 shares at EUR 14.87 per share or EUR 113.5m in total. Selling to Slim's offer will result in capital losses of EUR 55m, the report said.

FCC shareholder Esther Koplowitz signed last February a contract with Bankia and BBVA for refinancing the debt resulting from its participation in FCC. This agreement, whose origin dates back to April 2011, involves a guarantee from Slim over payment commitments that Koplowitz has contracted with the two financial institutions. The loans amounted to EUR 843.5m, backed by an underlying 58.4 million shares, equivalent to 15.4% of capital. Bankia and BBVA have put options to sell the 15.4% stake at EUR 9 per share.

Both Bankia and BBVA have linked the mortgage on this stake to a put option that allows them to liquidate their asset position from 2020. Slim would be forced to buy the securities with the particularity that the price fixed for eventual transaction is EUR 9 per share, almost 20% above the amount offered in the takeover bid.

>>> Europe : Brokers Upgrades & Downgrades - 30th of June 2016

>>> Up
*AGF MANAGEMENT RAISED TO MARKET PERFORM AT BMO CAPITAL MARKETS
*BAYTEX ENERGY RAISED AT BMO CAPITAL MARKETS
*BW LPG RAISED TO HOLD AT NORDEA
*CLOSE BROTHERS RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*DASSAULT SYSTEMES RAISED TO BUY AT HSBC
*DET NORSKE RAISED TO BUY VS NEUTRAL AT UBS
*DIAMOND RESORTS CUT TO NEUTRAL VS BUY AT GOLDMAN
*EIFFAGE RAISED TO OVERWEIGHT AT BARCLAYS
*EFG RAISED TO HOLD AT KEPLER CHEUVREUX
*GAM HOLDING RAISED TO HOLD AT KEPLER CHEUVREUX
*ICAP RAISED TO OVERWEIGHT AT BARCLAYS
*INDRA RAISED TO HOLD AT KEPLER CHEUVREUX
*NEXT RAISED TO BUY VS NEUTRAL AT UBS
*NOKIA RAISED TO BUY VS NEUTRAL AT GOLDMAN
*SOCIETE GENERALE RAISED TO BUY AT HSBC
*SOFTWARE RAISED TO BUY AT HSBC
*SSE RAISED TO OUTPERFORM AT RBC CAPITAL
*SWISSCOM RAISED TO BUY AT BOFAML
*TELENOR RAISED TO BUY AT BOFAML
*VINCI RAISED TO OVERWEIGHT AT BARCLAYS

>>> Down
*BANCA SISTEMA CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*BETSSON CUT TO HOLD AT NORDEA
*BOUYGUES CUT TO UNDERPERFORM VS NEUTRAL AT BOFAML
*EMPIRE CUT TO UNDERWEIGHT AT BARCLAYS
*HENDERSON CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*IMI CUT TO HOLD AT HSBC
*JUPITER FUND CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*LIBERTY GLOBAL CUT TO NEUTRAL VS BUY AT BOFAML
*ODFJELL CUT TO HOLD AT NORDEA
*RECKITT BENCKISER CUT TO NEUTRAL AT JPMORGAN
*SHAWBROOK CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*SOPRA STERIA GROUP CUT TO HOLD AT HSBC
*TEMENOS CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*TRAVIS PERKINS CUT TO HOLD VS BUY AT BERENBERG
*UBI BANCA CUT TO HOLD AT HSBC
*UNICREDIT CUT TO HOLD AT HSBC

>>> PT Change

>>> Initiation
*BEIERSDORF RATED NEW OUTPERFORM AT MACQUARIE; PT EU89
*BIM RATED NEW BUY AT BERENBERG; PT TRY64.80
*DANONE RATED NEW NEUTRAL AT MACQUARIE; PT EU63
*EUROCASH RATED NEW HOLD AT BERENBERG; PT PLN48.40
*HENKEL RATED NEW NEUTRAL AT MACQUARIE; PT EU110
*JERONIMO MARTINS RATED NEW BUY AT BERENBERG; PT EU15.40
*L’OREAL RATED NEW NEUTRAL AT MACQUARIE; PT EU172
*MIGROS RATED NEW BUY AT BERENBERG; PT TRY22.80
*NESTLE RATED NEW UNDERPERFORM AT MACQUARIE; PT CHF67
*RECKITT BENCKISER RATED NEW OUTPERFORM AT MACQUARIE; PT 7,900P
*UNILEVER RATED NEW OUTPERFORM AT MACQUARIE; PT EU46
*VECTURA REINSTATED BUY AT PEEL HUNT, PT 200P

>>> Call
>> Stock
*ASML ADDED TO CITI FOCUS LIST EUROPE, REPLACES CAP GEMINI
*ASML SET AS TOP PICK AMONG EUROPEAN TECHNOLOGY STOCKS AT CITI

>>> US After Hours Movers

Advancers (with shrs traded post-mkt):
  • CRCM +18.1% (1k); Google Capital Invests $46.35m
  • SGY +7.9% (33k); Ends Ensco Pact, Signs Midstream Contract
  • CIT +6% (13k); Laurentian to Buy CIT Canada Financing Unit
  • SSTK +3.8% (141k); Named to S&P 600
  • TWLO +3.3% (290k); Closed at Highest Since Last Week’s IPO
  • MGT +3.2% (240k); Adds to 23% Regular-Session Gain
  • CLVS +2.3% (26k); Rose 22% in Regular Session
  • C +2.2% (821k); Plans $8.6b Buyback, Div. Boost to 16c
  • ALLY +1.9% (35k); Inaugural Div., $700m Buyback Planned
  • BAC +1.7% (3.6m); $5b Buyback; Boosts Div to 7.5c
  • JPM +1.5% (760k); $10.6b Buyback, Maintains Div. at 48c
  • GS +1.4% (94k); Plans Buyback, Div. Boost
  • LNT +1.2% (12k); Set to Join S&P 500
  • CPHD +1.2% (20k); Infection-Control Aid Cleared by FDA
  • MS +1.1% (290k); Up to $3.5b Buyback; Boosts Div. to 20c
  • HBAN +1.1% (110k); Will Lift Div. to 8c
  • BK +1.1% (109k); Plans $2.7b Buyback, Boosts Dividend
  • DB +1.1% (132k); Says U.S. Capital Adequacy Not in Doubt
  • SWX +1% (6k); Moving Up to S&P MidCap 400
  • RF +1% (259k); May Buy Back Up to $640m, Boost Div.
Advancers after earnings:
  • PRGS +5.2% (11k)

Decliners:
  • ICPT -5.3% (39k); $400m Convertible Offering
  • SAN -3.1% (55k); U.S. Unit Fails Stress Test for 3rd Year
Decliners after earnings:
  • TSCO -7.5% (263k)
  • PIR -6.8% (254k)

>>> Asian Update

Asian Mid-session Market Update: Rebound continues after more good news from US financial sector; June PMIs on tap

***Economic Data***
- (JP) JAPAN MAY PRELIMINARY INDUSTRIAL PRODUCTION M/M: -2.3% V -0.2%E; Y/Y: -0.1% V +1.9%E
- (JP) Japan May Loans & Discounts Corp Y/Y: 2.6% v 3.1% prior
- (AU) AUSTRALIA MAY PRIVATE SECTOR CREDIT M/M: 0.4% V 0.5%E; Y/Y: 6.5% V 6.7%E
- (AU) AUSTRALIA MAR-MAY SKILLED VACANCIES Q/Q: -1.9% V +2.8% PRIOR
- (NZ) NEW ZEALAND MAY BUILDING PERMITS M/M: -0.9% V +6.8% PRIOR
- (NZ) NEW ZEALAND JUNE ANZ ACTIVITY OUTLOOK: 35.1 (14-month high) V 30.4 PRIOR; BUSINESS CONFIDENCE: 20.2 (4-month high) V 11.3 PRIOR
- (NZ) New Zealand May M3 Money Supply y/y: 7.3% v 7.8% prior
- (KR) SOUTH KOREA MAY INDUSTRIAL PRODUCTION M/M: 2.5% V 0.3%E; Y/Y: 4.3% (first rise in 3 months) V 0.3%E
- (UK) JUNE GFK CONSUMER CONFIDENCE: -1 V -2E

***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 +0.8%, S&P/ASX +1.8%, Kospi +0.6%, Shanghai Composite -0.2%, Hang Seng +1.6%, Sep S&P500 flat at 2,067

***Commodities/Fixed Income***
- Aug gold -0.7% at $1,318/oz, Aug crude oil -0.9% at $49.43/brl, Jul copper flat at $2.20/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 2.7 tonnes to 950.1 tonnes; highest since July 2013
- USD/CNY: (CN) SWIFT: CNY use in international transactions: 1.90% of total in May v 1.82% prior
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6312 V 6.6324 PRIOR; 2nd straight firmer setting
- (CN) PBOC to inject CNY130B in 7-day reverse repos
- (JP) Japan investors bought net ¥394B in foreign bonds v sold ¥458B in prior week; Foreign investors sold net ¥184B in Japan stocks v sold ¥233B in Japan stocks in prior week

***Market Focal Points/FX***
- Asian equity markets are tracking another session of impressive gains on Wall St, as Brexit fears continue to subside with the help of a easy-Fed-for-longer narrative. Vix index was down for the 3rd straight day, falling to pre-Brexit levels, as Fed funds futures now imply rates remaining on hold well into 2017. Among FX majors, GBP/USD remained volatile, falling about 70pips from the highs below 1.34, but other pairs were less active - USD/JPY traded in a 40pip range below ¥103, AUD/USD was in a 40pip range below 0.7470, and NZD/USD retreated about 30pips below 0.7090. Gold was down over $10 from the highs below $1,310. Markets are looking ahead to tomorrow's raft of June PMI data for hints over concern regarding the spillover of Brexit in the far east.

- Federal Reserve's annual capital analysis review (CCAR) of major financials gave passing grades to 30 out of 33 key institutions and once again singled out Santander and Deutsche Bank units based on "qualitative concerns." Among the dividend/buyback plans of top financials, Citigroup was most notable with a payout increase of 220% and a buyback of $8.6B (~7% of market cap). JPM and BAC plans were more modest - former maintained div with a 4.7% shares buyback and the latter raises its div by 50% with 3.7% share buyback.

- Mainland China markets underperformed, weighed down by cautious rhetoric from Fin Min Lou and mixed sentiment in the China Beige Book. Lou remarked that the govt is struggling to meet annual fiscal targets, as the Treasury's intake in the first 5 months of the year has risen only 0.6% - below 2% budgeted growth rate. China Beige Book pointed to Services and Construction helping spur stronger growth along with a notable rise in employment expectations, but added that Brexit does pose significant downside risk for the economy as its growth rate is unlikely to have hit bottom. Meanwhile, PBoC has once again set Yuan fix slightly firmer to match the retreat in USD in other major pairs.

- Japan's preliminary May industrial output was the most notable datapoint, missing estimates on both sequential and annual basis. Economists warn that these figures could portend a more pronounced GDP deterioration in Q2, which bolsters the case for more BOJ easing next month accompanying central bank's growth and inflation outlook revisions.

***Equities***
US equities / ADRs:
- PRGS: Reports Q2 $0.33 adj v $0.30e, R$96.7M v $95.3Me (1 est); +6.2% afterhours
- C: Fed does not object to its CCAR plan; approves $8.6B (~7% of market cap) share buyback and 220% dividend increase to $0.16/shr (implied yield 1.52%); +2.1% afterhours
- JPM: Fed does not object to its CCAR plan; approves $10.6B (4.7% of market cap) share buyback and maintains dividend at $0.48/shr (implied yield 3.2%); +0.9% afterhours
- PIR: Reports Q1 -$0.07 v -$0.06e, R$418.4M v $421Me; Cuts FY guidance; -6.1% afterhours
- TSCO: Reports prelim Q2 $1.85B v $1.93Be, SSS -0.5% v +5.6% y/y; cuts FY16 guidance; -7.4% afterhours

Notable movers by sector:
- Consumer discretionary: Intime Department Store Group Co 1833.HK +7.0% (Alibaba to hold stake); DeNA Co.2432.JP +5.1% (joint development speculation with Docomo)
- Consumer staples: Australian Dairy Farms AHF.AU -1.7% (guidance)
- Financials: National Storage REIT NSR.AU -5.8% (Macquarie cuts to underperform); ANZ Bank ANZ.AU +2.5% (divestment)
- Industrials: Mitsubishi Heavy Industries 7011.JP +4.8% (Daiwa raises to outperform); BBMG Corp 2009.HK +1.8% (asset disposal); Beijing Dinghan Technology 300011.CN -0.4%, China High-Speed Railway Technology Co 000008.CN -0.8% (China approves railway network plan); Daewoo Shipbuilding & Marine 042660.KR +0.5% (creditors seek partial sales)
- Technology: MediaTek 2454.TW +2.1% (to be Samsung supplier)
- Materials: Aluminum Corporation of China 2600.HK +1.7% (asset disposal); Kuraray Co 3405.JP -1.0% (guidance)
- Healthcare: Mayne Pharma MYX.AU +29.0% (plans to acquire assets from Teva's US generics portfolio)

>>> Closing Market Summary: Indices Continue Post-Brexit Rebound


Closing Market Summary: Indices Continue Post-Brexit Rebound

The stock market ended the Wednesday affair on a broadly higher note, extending its recent rebound alongside European bourses. Equity markets continued their uptrend as investors maintained their risk-on posture, bidding oversold currencies, commodities, and the heavily-weighted financial (+2.3%), health care (+1.9%), and industrial (+1.7%) sectors. The Nasdaq Composite (+1.9%) finished ahead of the S&P 500 (+1.7%) and the Dow Jones Industrial Average (+1.6%).

Global equity markets tilted to the upside overnight as European bourses continued to recover from their recent weakness. The Euro Stoxx 50 (+2.8%) trimmed its post-Brexit decline to 6.8% while the U.K.'s FTSE (+3.6%) erased its loss, and is now up 3.6% since Thursday's referendum. Additionally, strength from the oil patch contributed to the early positive bias as the energy component gained following the American Petroleum Institute's weekly inventory data. 

The major U.S. averages gapped higher at the start of the session, bolstered by a largely in-line reading of the Personal Income and Spending Report for May. The release was largely a non-event, having little impact on rate hike expectations. On that note, Federal Reserve Governor Powell commented overnight that global risks have shifted to the downside following the British referendum.

The benchmark index climbed through the afternoon, eventually finding resistance near the 2070 price level. The area is significant as it represents the underside of Friday's gap down and rests within five points of the index's 50-day simple moving average (2076.49). Ten sectors ended in the green with financials (+2.3%) and energy (+2.0%) leading the pack while health care (+1.9%), industrials (+1.8%), and technology (+1.7%) followed.

The economically-sensitive financial sector (+2.3%) ended the session near its best level of the day as money center banks outperformed. In the group, JPMorgan Chase (JPM 61.20, +1.68), Citigroup (C 42.12, +1.68), and Bank of America (BAC 13.19, +0.49) gained between 2.8% and 4.2% ahead of this evening's Comprehensive Capital Analysis and Review (CCAR) results. Expectations remain high that most banks will be granted approval to boost their respective capital return programs. The broader sector trimmed its monthly loss to 4.9%, but still sports a loss of 5.6% for the year.

Biotechnology displayed relative strength in the health care space (+1.9%), evidenced by the 2.2% rebound in the iShares Nasdaq Biotechnology ETF (IBB 256.05, +5.39). The ETF has rallied 6.0% since notching a four-month closing low on Monday (241.49). In the sub-group, large cap Biogen (BIIB 238.91, +10.39) jumped 4.6% after receiving an upgrade to "Outperform" at Bernstein.

The transports outperformed in the industrial sector (+1.8%), evidenced by the 2.2% gain in the Dow Jones Transportation Average. In the sector, airlines outperformed as the U.S. Global Jets ETF (JETS 20.96, +0.58) rebounded 2.9%. The ETF has trimmed its post-Brexit loss to 5.1%. Elsewhere, General Electric (GE 30.55, +0.61) rallied 2.0% after the company received approval to have its nonbank Systemically Important Financial Institution designation rescinded.

The U.S. Dollar Index (95.79, -0.45) extended its losing streak, weakening for the second session. The euro gained 0.4% against the dollar (1.1106) while the pound finished higher by 0.7% against the buck (1.3437). Separately, the dollar gained 0.1% against the safe haven yen (102.84).

Treasuries spent most of their session near their flat lines despite a persistent rally in equities. However, the complex notched new session lows in the final hour as the yield on the 10-yr note rose four basis points to 1.51%.

Today's participation was above the recent average as more than one billion shares changed hands on the NYSE floor.

Today's economic data included the weekly MBA Mortgage Index, the Personal Income and Spending Report, and Pending Home Sales for May:

  • The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 2.6% in mortgage applications.
  • Personal income increased 0.2%, which was weaker than expected (consensus +0.3%), and personal spending jumped 0.4%, which was stronger than expected ( consensus +0.3%).
    • The core PCE Price Index, which excludes food and energy, increased 0.2%, which was just as expected.
    • Income growth was led by a 0.2% increase in wages and salaries.
    • Spending growth featured a 0.5% increase in goods spending and a 0.4% increase in services spending.
    • The personal savings rate dipped from 5.4% to 5.3%.
    • The PCE Price Index increased 0.2%, which left it up 0.9% year-over-year.
    • That is down from the 1.1% year-over-year increase seen in April.
    • The core PCE Price Index was up 1.6% year-over-year for the third straight month.
    • All in all, this was not a report that would have triggered an increased fear of a Fed rate hike at the July meeting even if Brexit didn't happen.
    • Brexit, of course, did happen, so the fact that the May report was mixed, and didn't feature a pickup in inflation on a year-over-year basis, will only help to solidify the belief that the Fed is likely on hold for some time yet.
  • Pending Home Sales for May declined by 3.7% while the consensus expected a downtick of 1.4%. Meanwhile, the April reading was revised to 3.9% from 5.1%.

Tomorrow economic data will be limited to weekly initial claims (consensus 265k) and Chicago PMI for June (consensus 50.8), which will be released at 8:30 ET and 9:45 ET, respectively. 

  • Nasdaq Composite -4.6% YTD
  • Russell 2000 -0.4% YTD
  • S&P 500 +1.3% YTD
  • Dow Jones +1.6% YTD 

(Makor) European Holdings Companies – Set up Short EXOR (EXO: IM)


June 29, 2016 

 

European Holdings Companies – Set up Short EXOR (EXO: IM)

 

Following yesterday’s positive momentum in the markets and the outperformance of EXO: IM vs. its listed assets, the discount to NAV now tightened to 20% - close to the lowest level of the past three years trading history. We believe the real discount is much lower and in the range of 10%-15% given the fact that since the acquisition of PartnerRe the US insurance sector has lost approx. 10%. In addition, on March Exor disposed to PartnerRe its real estate asset in the U.K ”Almacantar” for almost EUR 0.5 bn. Almacantar’s prime assets are in located in central London and Brexit is expected to have a negative impact on the real-estate sector in the U.K and its valuation, strengthening our view that a discount on PartnerRe is required.  

 

Therefore, we factor in our NAV 15% discount to PartnerRe acquisition price, which leads to a discount of ~13% – see our NAV model attached.We note that if we do not factor any discount to PartnerRe acquisition price the spread would be ~20% (still below average level) and if we factor only 10% discount to PartnerRe - the spread is at ~16%.

 

We also refer investors to our note from June 14 in which we discussed in details the transformation of Exor and our thought on the appropriate discount (back than the spread was 28%). We see the current level as an attractive point to short Exor and hedge with its three listed assets and an ETF on the insurance sector.

 

 

 

  

  ​     ​     ​

 

Makor Capital

 

11 Menachem Begin St., 26th FL

Ramat Gan 52681
ISRAEL
Tel         +972 3 5453 762

Fax        +972 3 7162 680

 

   

Research Disclaimer

 

This publication has been prepared by Makor Capital Limited (“Makor Capital”) and is intended for professional or qualified investors only. Makor Securities London Ltd (“Makor Securities”)is distributing this material to its clients who are Eligible Counterparties or Professional Clients under FCA Rules. It may also be disseminated to persons who are Investment Professionals within the meaning of the Financial Services and Markets Act 2000 (Financial Promotion Order 2005).  In the United States, Makor Capital only distributes this material to major US institutional investors (as that term is defined in Rule 15a-6 of the Securities and Exchange Act of 1934) and to SEC-registered broker-dealers or  banks acting in a broker–dealer capacity. This material is not intended for distribution to any other persons and should not be redistributed.  If you do not fall into any of these categories you should disregard it.

 

This material is a marketing communication.  It is not investment research and has not been prepared in accordance with legal requirements designed to promote the independence of investment research. It is not subject to any prohibition on dealing ahead of the dissemination of investment research under U.K. law. This material is not a research report and is not intended to be a research report as defined under U.S. securities laws and regulations.  This material is not intended to provide information reasonably sufficient upon which to base any investment decision.   

 

This material does not take into account the particular investment objectives, financial situation or needs of individual clients or other recipients. Before acting on this material, clients and other recipients should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. 

 

This material should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. 

 

In the United States, Makor Capital does not offer securities services to U.S. persons except pursuant to SEC Rule 15a-6 only to major US institutional investors and SEC registered broker-dealers or  banks acting in a broker–dealer capacity. Transactions in the United States must be effected through the U.S. broker-dealer, Oscar Gruss & Son Incorporated. Oscar Gruss & Son has not prepared, reviewed or distributed this material.

 

Some of this material is produced by providers which Makor Securities believes to be reliable, but Makor Securities does not warrant or represent (expressly or impliedly) that it is accurate, complete, not misleading or as to its fitness for the purpose intended and it should not be relied upon as such. 

Opinions expressed will be the current opinions of those producing this material as of the date appearing on this material only. We expect those producing the material in  this publication to update it on a timely basis but can give no undertaking that they will do so and regulatory compliance or other reasons may prevent  them from doing so (or us from disseminating updated material).  

 

Members and employees of Makor Securities London Ltd, employees of Makor Capital, Makor Capital Markets may from time to time have long or short positions in securities, warrants, futures, options, derivatives or other financial instruments referred to in this material. For Makor Securities, this information is set out in our Conflicts of Interest Policy which is available on request.  Policies for the production of research from other research providers are available on request.  Unless otherwise stated, share prices provided within this material are as at the close of business on the day prior to the date of the material.

 

Neither the whole nor any part of this material may be duplicated in any form or by any means. Neither should any of this material be redistributed or disclosed to anyone without prior consent. This material is issued for general information and discussion purposes only. None of  Makor Securities, Makor Capital, Makor Capital Markets accepts  liability whatsoever for any direct, indirect or consequential loss or damage of any kind arising out of the use of all or any of this material. 

 

The services, securities and investments discussed in this material may not be available to, nor are suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and it should be noted that investment involves risk, including the risk of capital loss. Past performance is no guide to future performance. In relation to securities denominated in foreign currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable.

 

All investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and it should be noted that investment involves risk, including the risk of capital loss. Past performance is no guide to future performance. In relation to securities denominated in foreign currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable.

 

Entities

 

Makor Securities London Ltd is authorised and regulated by the Financial Conduct

Authority (FCA registration number 625054) 

 

Makor Capital, company number 514456466, is incorporated in Israel and is a 100% held

subsidiary of Makor Holdings Pte Ltd incorporated in Singapore. 

 

Makor Capital Markets SA, company number CH-660.2.999.011-0 is incorporated in Switzerland

and is also a 100% held subsidiary of Makor Holdings Pte Ltd.

 

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>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ECR -12.4%, (updates on its operations, provides FY16 capex & production guidance; announced that it has commenced an underwritten public offering of 37,500,000 shares of its common stock), AVAV -7.9%, AYI -2.7%

M&A news: HTCH -7.4% (Hutchinson Tech. updates on status of acquisition by TDK Corporation, says the FTC is continuing its review and has not indicated when its review may be completed)

Select EU financial related names showing weakness: LYG -2%, RBS -1.7%, DB -1.7%, CS -0.9%

Other news: LPCN -52.2% (receives CRL from the FDA regarding its NDA for LPCN 1021), ESPR -32.1% (provides clinical development and regulatory update for Bempedoic Acid; on track to initiate global pivotal Phase 3 studies and CVOT in Q4 ), ECR -12.8% (offering of 37.5 mln shares of its common stock at $3.50 per share), ALV -4.9% (confirms in statement to Reuters its involvement in Toyota's (TM) Prius recall), HR -4.1% (prices offering of 8 mln shares of common stock for gross proceeds of $268 mln), ANTH -2.3% (provides clinical program updates for Blisibimod and Sollpura, says positive trends from BRIGHT-SC proof-of-concept study and study will continue), BUFF -1.0% (prices secondary offering of 15 mln shares common stock by selling stockholders at $22/share), SWN -1.0% (commences 75 mln common stock offering)

Analyst comments: AEG -2.2% (downgraded to Underweight from Equal Weight at Barclays) 

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: MCK +2%, GIS +1.7%, SHLM +1.6%, CAMP +0.5%, (also authorizes $25 mln share repurchase)

M&A news: PVTB +23% (PrivateBancorp to be acquired by CIBC (CM) for $18.80 in cash & 0.3657 of a CIBC common share), DRII +18.2% (headlines the company may be near a deal to be acquired by Apollo), OLED +5% (Universal Display acquires the OLED Intellectual Property assets of BASF SE (BASFY) for ~EUR 87 mln), ETE +3.4% (Williams Cos merger with Energy Transfer (ETE) terminated), CM +2.4% (PrivateBancorp to be acquired by CIBC (CM) for $18.80 in cash & 0.3657 of a CIBC common share), WMB +1.7% (Williams Cos merger with Energy Transfer (ETE) terminated), TSLA +1.6% (CtW Investment Group urges Tesla's Board to form a special committee to review SolarCity (SCTY) acquisition and other governance reforms), AA +1.4% (files initial form 10 registration statement for separation of upstream business, Alcoa Corporation)

Select metals/mining stocks trading higher: GFI +6.1%, HMY +4.5%, AG +4.4%, SBGL +4.3%, PAAS +4.2%, AU +3.7%, SLV +3.1%, RIO +3%, KGC +1.8%

Select oil/gas related names showing strength: BCEI +7.1%, WLL +4.4%, CHK +3.5%, PBR +3.2%, OAS +2.9%, BP +2.7%, TOT +2.6%

Other news: TSRO +73.9% (announces that the Phase 3 NOVA trial of niraparib successfully achieved its primary endpoint of progression-free survival), BPMX +27.1% (announces topline results from its Phase 2a safety study of BPX-01), IBIO +18.2% (granted orphan designation by the FDA for the its compound for the treatment of systemic sclerosis), UQM +16.1% (signs definitive stock issuance and purchase agreement with Hybrid Kinetic Group), AMRS +15.8% (Amyris and Ginkgo Bioworks partner; partnership is expected to generate over $300 million in incremental value for both companies over the next 5 years), CLVS +12.1% (trading higher in sympathy with other biotech peers), CTRV +11.5% (ContraVir Pharma and Center Point Clinical Services renew partnership agreemen), ATNM +11% ( initiates pivotal Phase 3 clinical trial for lead asset Iomab-B), MYGN +7.3% (announces its myChoice HRD test successfully identified an increased number of patients with ovarian cancer who may benefit from treatment with niraparib), CGIX +7.1% (announces that it offers Ventana PD-L1 assay as a complementary diagnostic IHC test for Genentech's (RHHBY) Tecentriq), KMPH +6.5% ( announces results from a Phase 1 proof-of-concept trial with KP511; KP511 clinical data consistent with preclinical animal data ), BSTG +6.2% (submits application to the FDA seeking oprhan designation for its Cellspan Esophageal Implants), FUEL +3.9% (continued strength after CNBC reported intraday that presidential candidate Donald Trump was using Rocket Fuel's software to track potential supporters behavior), SHPG +3.5% (announces positive topline results of SHP465 efficacy and safety study in adults with ADHD), DRNA +2.8% (announces that new preclinical data shows the potential of Dicerna Galxc subcutaneous delivery platform as Rnai drug discovery enging), BT +2.6% (provides revised financials reflecting previously announced organizational change), LC +2% (Bloomberg detailed comments from today's annual meeting, in which CEO Scott Sanborn disclosed that an investor has started buying $1 bln in debt while others wrap up their due diligence ), GILD +1.3% (Diplomat Pharmacy announces it will dispense Gilead's EPCLUSA for the treatment of patients with chronic hepatitis C virus infection)

Analyst comments: DAR +3.6% (upgraded to Buy from Neutral at Goldman), RIG +2.4% (upgraded to Hold from Sell at Evercore ISI), HZNP +2% (initiated with an Outperform at BMO Capital), NICE +1.5% (resumed with a Overweight at JP Morgan)