>>> VOW invest in Gett yesterday, BMW in Scoop today...Toyota/Uber...

it looks like that automaker don't want to miss the train...some read across I think for another sector car rental...SIXT, EUROPCAR, HERTZ...should see more consolidation as business more at risk and relationship with automakers should be more at risk


BMW Invests in Scoop Technologies, mobile ride-share app company 

Announced a strategic investment in Scoop Technologies, Inc., creators of the carpooling mobile application Scoop. Since launching in August 2015, Scoop commuters have taken more than 40,000 trips, offsetting nearly 500,000 in commute mileage for riders. Originally launched in Pleasanton, CA, Scoop now also operates commute trips into San Francisco, Palo Alto, Sunnyvale and North San Jose.

The Scoop app automatically connects co-workers and neighbors who live in the same neighborhood and travel to the same work area. Commuters select each trip one way at a time and choose whether to ride or drive. Scoops algorithm matches them to a carpool with neighbors and co-workers for the most efficient commute.

>>> MDVN - Board is reportedly split over support for GILD and PFE proposals; s

Board is reportedly split over support for GILD and PFE proposals; said to have received GILD offer that is a substantial improvement over Sanofi's rejected $52.50/shr offer - StreetInsider 
- Sources say a deal with GILD might have been announced this week but some board members prefer a proposal received from PFE

(Oscar Gruss- Makor) MDVN - Initial Thoughts

MDVN ($10.2B MC @ $62) - Potential bidders reported today are CELG ($80B MC, $5.7B cash & $14.3B debt @ 3/31/16),  GILD ($115B MC, $11.3B cash & $12.3B debt @ 3/31/16), SNY ($103B MC, $10.0B cash & $18.0B debt @ 12/31/15), AZN ($75B MC, $4.1B cash & $16.3B debt @ 3/31/16) and NVS ($206B MC, $5.1B cash & $28.1B debt @ 3/31/16). CELG & GILD are biotech companies, as is MDVN. SNY, AZN and NVS are all large pharmas.         

 

MDVN currently has $300M net cash for a $9.7B EV (@ $62/share), which is an 8.4x multiple of 2017E revenues of $1.17B (up 25% YoY) and a 29x P/E multiple of 2017E $2.14 EPS (up from an estimated $1.33 EPS in 2016E and $1.01 in 2015). The potential buyers trade at 2017E P/E multiples of 14x-15x (except GILD which trades at 7x). It appears that MDVN's bankers are setting up a bidding contest amongst well-heeled buyers for a company with prospects for high near-term growth and a focus on prostate cancer (the second most common cancer) which should be attractive to the large pharma companies with existing worldwide distribution capabilities.          

 

MDVN traded in the $68/share range in March 2015 which implies multiples of 9.3x EV/Revs and 32x P/E. Multiples of 10x EV/Revs and 35x P/E imply takeover values of $73 and $75, respectively. MDVN traded at prior 20 day average closing price of $42.25; the SNY $52.50/share offer was a ~25% price premium. A 50%-60% price premium implies a $63.50-$67.50 takeover price; a 70% price premium is $72.00/share.           

 

The MDVN annual meeting is scheduled for June 22; NVS announced today eight director nominees to the MDVN Board. The net is that the sale process should be over by the annual meeting and bidding may be fast and furious (as reflected in the current premium that MDVN is trading to the NVS proposal price). A 70%-80% probability of a deal being announced implies a $67-$70/share takeover price based on the prior 20 day price as a downside.

 

DISCLAIMER

This information represents neither an offer to buy or sell any security nor, because it does not take into account the differing needs of individual clients, investment advice.  Those seeking investment advice specific to their financial profiles and goals should contact their Oscar Gruss & Son Incorporated sales representative.  Oscar Gruss & Son Incorporated believes this information to be reliable, but no representation is made as to accuracy or completeness.  This information does not analyze every material fact concerning a company, industry, or security.  Oscar Gruss & Son Incorporated assumes that this information will be read in conjunction with other publicly available data.  Matters discussed here are subject to change without notice.  There can be no assurance that reliance on the information contained here will produce profitable results.  A security denominated in a foreign currency is subject to fluctuations in currency exchange rates, which may have an adverse effect on the value of the security upon the conversion into local currency of dividends, interest, or sales proceeds.  The value of securities and depositary receipts of foreign issuers that are denominated in United States dollars are also influenced by fluctuations in currency exchange rates.

© 2016 Oscar Gruss & Son Incorporated.  All rights reserved.

 

 

 

DISCLAIMER This information represents neither an offer to buy or sell any security nor, because it does not take into account the differing needs of individual clients, investment advice. Those seeking investment advice specific to their financial profiles and goals should contact their Oscar Gruss & Son Incorporated sales representative. Oscar Gruss & Son Incorporated believes this information to be reliable, but no representation is made as to accuracy or completeness. This information does not analyze every material fact concerning a company, industry, or security. Oscar Gruss & Son Incorporated assumes that this information will be read in conjunction with other publicly available data. Matters discussed here are subject to change without notice. There can be no assurance that reliance on the information contained here will produce profitable results. A security denominated in a foreign currency is subject to fluctuations in currency exchange rates, which may have an adverse effect on the value of the security upon the conversion into local currency of dividends, interest, or sales proceeds. The value of securities and depositary receipts of foreign issuers that are denominated in United States dollars are also influenced by fluctuations in currency exchange rates. © 2016 Oscar Gruss & Son Incorporated. All rights reserved.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance: VMEM -7.7%, TIF -4.1%, SPWH -3.2%, ANW -3%, BABA -2.6%, BMO -2.5%, INTU -1.5%


Select Utility related names showing weakness after PJM reported auction results; Capacity price lower for 2019-2020: NRG -3%, DYN -1.6%, PEG -1.2%, EXC -0.9%, FE -0.5%

Other news: BSI -71.8% (files revised motion to convene a meeting of its financial creditors and various guaranteed creditors for the approval of a proposed debt reorganization and arrangement, CBL -12.3% (WSJ report that the company is being investigated for alleged accounting fraud; issues statement; believes allegations are baseless), TMST -11.7% (prices $75 mln of its 6.00% Convertible Senior Notes due 2021), BABA -2.5% (discloses in 20F annual filing an investigation by the SEC into potential violations of federal securities laws)

Analyst comments: AMKR -3.2% (downgraded to Sell from Neutral at Citigroup), BCEI -2.9% (downgraded to Underperform from In-line at Imperial Capital)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: NM +24.6%, NMBL +15.2%, DY +11.3%

M&A news: BIOD +55% (Biodel and Albireo agree to combine through share exchange agreement), CSC +30.2% (HPE announces spinoff of Enterprise Services business with CSC; also reported earnings), HPE +11.9% (announces spinoff of Enterprise Services business with CSC, also reported earnings), MON +2.2% (Bayer (BAYRY) issues statement on MON proposal; remains 'confident' in completing a transaction)

Select EU financial names showing strength: SAN +4.7%, RBS +4.4%, BBVA +4%, DB +3.1%, HSBC +2.8%, CS +2.1%

Select metals stocks trading higher: FCX +2.8%, CLF +2.6%, MT +2.3%, BBL +2.2%, BHP +2.1%, VALE +2%

Select oil/gas related names showing strength: CHK +4.4%, SDLP +3%, WLL +2.5%, BP +1.9%, STO +1.7%, XCO +1.3%

Other news: PTX +24.7% (announces that the USPTO has issued Orange Book patents covering safety information related to dosing patients with Zohydro ER with BeadTek), SRPT +21.9% (announces that the FDA will not complete its review of the Eteplirsen New Drug Application by the PDUFA date), SPEX +14.3% (releases a letter updating shareholders on the co's progress; states it 'is actively exploring viable opportunities outside of the patent monetization space'), GALE +9.2% (in smypathy with other biotech peers showing strength), NVAX +6.4% (FDA has granted Fast Track Designation to its' RSV F-Protein nanoparticle vaccine candidate (RSV F Vaccine) for the protection of older adults), MGI +3.8% (Moneygram & Wal-Mart (WMT) Mexico extend agreement to provide MoneyGram receive services at Wal-Mart locations across the country until 2018), PDLI +3.4% (to make initial $107 mln equity investment in Noden Pharma), NVO +2.7% (receives 16-0 vote from FDA favoring the approval of IDegLira), HPQ +1.9% (in sympathy with HPE), MSFT +0.9% (to cut 1,850 jobs to streamline smartphone hardware business)

Analyst comments: WDC +3% (upgraded to Overweight from Equal Weight at Barclays), ON +2.1% (initiated with a Outperform at Credit Agricole), AMAT +1.7% (upgraded to Buy from Neutral at Citigroup), SHPG +1.6% (initiated with a Buy at Shore Capital)

>>> Tiffany & Co misses by $0.04, misses on revs; guides Q2 EPS below consensus;

Tiffany & Co misses by $0.04, misses on revs; guides Q2 EPS below consensus; reaffirms FY17 EPS guidance, lowers FY17 revs below consensus
  • Reports Q1 (Apr) earnings of $0.64 per share, excluding $0.05 tax benfit, $0.04 worse than the Capital IQ Consensus of $0.68; revenues fell 7.4% year/year to $891.3 mln vs the $914.97 mln Capital IQ Consensus.
  • Comparable store sales declined 9% vs. ests near -5%. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales declined 7%, and comparable store sales declined 9%.
    • Americas sales -9%; comps -10% -- management attributing the declines to varying degrees of softness in spending by U.S. customers and foreign tourists.
    • Asia Pac sales -8%; comps -15%. Japan +8%; comps +12%. Europe -9%; comps -15%.
  • Co issues downside guidance for Q2, sees EPS similar rate YoY to Q1 (down ~15% from $0.85) vs. $0.79 Capital IQ Consensus Estimate.
  • Co issues guidance for FY17, reaffirms mid single digit EPS decline vs. -2% consensus to $3.75; lowers FY17 revs to low single digit decline from $4.1 bln last year (previously near last year's level) vs. $4.1 bln Capital IQ Consensus; worldwide gross retail square footage increasing 2%, net through 11 openings, 6 relocations and 10 closings; (iii) operating margin below the prior year's 19.7% (excluding the prior year's charges due to an expected increase in gross margin more than offset by SG&A expense growth; a modest year-over-year strengthening of the U.S. dollar; net inventories unchanged from the prior year.
  • "As expected, this was a difficult quarter in terms of both sales and earnings growth. We faced numerous challenges, including continued pressure from foreign tourist spending in Europe, the U.S. and Asia, particularly in Hong Kong. However, we are continuing to take actions that are intended to strengthen sales growth with local customers in the U.S. and around the world. From a strategic perspective, we believe that our initiatives will enhance our ability to provide our customers with extraordinary products and experiences and ultimately contribute to improved financial results. We remain focused on generating sustainable long-term sales and earnings growth."