Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- AIRG -6.9%, KMX -4.8%, GIS -1.1%
Other news:
- MSTX -81.3% ( reports top-line results from Phase 3 study in sickle cell disease; study did not meet its primary efficacy endpoint; will hold a conference call tomorrow)
- MIRN -23.6% (to close the ongoing Phase 1 study of MRX34, its investigational microRNA therapy for multiple cancers )
- CDNA -7.2% (announces a proposed offering of common stock)
- AERI -4.7% (cautious mention from biotech blogger Adam Feuerstein)
- PLM -2.4% ( to offer 13,333,333 Units at $0.75/Unit for gross proceeds of $10 mln in a private transaction)
- JKS -2.1% (still checking)
- NFLX -1.5% (presented at GS conf after mkt close yesterday)
- LEI -1.4% (ticking lower; files for 13,009,664 share common stock offering pursuant to the asset purchase agreement by selling stockholders)
Analyst comments:
- SKX -3.8% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
- AAL -1.1% (downgraded to Mkt Perform from Outperform at Raymond James)
- POST -0.9% (downgraded to Mkt Perform from Outperform at BMO Capital )
- DO -0.7% (downgraded to Sell from Neutral at Goldman)
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- ADBE +4.9%, CPRT +4.1%, FDX +3.8%, NUS +1.9%, ( reaches resolution with the SEC, which fully resolves the previously disclosed SEC investigation in its entirety; sees Q3 revs at high end or above prior guidance), GTN+0.6%, DEO +0.5%, (issues trading update ahead of its AGM)
M&A news:
- ABB +0.7% (to sell its Cable Business to NKT Cables for EUR836 mln)
- SPWR +0.5% (8point3 Energy Partners LP to acquire Sunpower's 49% stake in its 102-MW Henrietta Solar Project for about $134 mln)
Select financial related names showing strength: BCS +3.9%, ING +3.7%, SAN +2.5%, CS +2.1%
Select metals/mining stocks trading higher: AU +4.6%, DRD +4.6%, VALE +3.7%, AG +3.5%, GFI +2.9%, GDX+2.5%, ABX +2.3%
Select oil/gas related names showing strength: CHK +3.4%, OAS +2.5%, MRO +2.4%, SSL +2.2%, RIG +1.9%,RDS.A +1.3%, BP +1.2%
Other news:
Select metals/mining stocks trading higher: AU +4.6%, DRD +4.6%, VALE +3.7%, AG +3.5%, GFI +2.9%, GDX+2.5%, ABX +2.3%
Select oil/gas related names showing strength: CHK +3.4%, OAS +2.5%, MRO +2.4%, SSL +2.2%, RIG +1.9%,RDS.A +1.3%, BP +1.2%
Other news:
- EBIO +12.8% (announces deal to acquire privately-held Viventia )
- USEG +10.1% (thinly traded, entered into an Earnings & Participation Agreement on a previously announced project with IronHorse Resources)
- ADMS +9.7% (announces results of EASE LID 3, says the improvement in LID was statistically significant and confirmed safety and efficacy data from earlier pivotal trials),
- CLVS +9.1% (continued strength following today's M&A chatter)
- SPSC +4.9% (to join S&P SmallCap 600)
- FOXF +4.9% (light volume - to join S&P SmallCap 600)
- FATE +4.7% (granted orphan designation by the FDA for ProTmune )
- EXEL +4.3% (will provide update on CABOzantinib in clinical data oral presentation at the ESMO Congress on Oct 10)
- SRPT +3.2% (announces favorable USPTO decisions in Exon 51 and Exon 53 composition of matter patent interference cases against BioMarin Pharmaceutical)
- AGTC +2.4% (CFO disclosed purchase of 10000 shares, worth total of $87.5K )
- KITE +1.6% ( enters an exclusive, worldwide license with the NIH for intellectual property related to multiple T-cell receptor based product candidates for the treatment of tumors expressing mutated KRAS antigens)
- AXAS +1.3% (sells its Portilla field and associated surface acreage for net proceeds of approximately $13 million and its 12,178 acre surface ranch and ½ of the Company's minerals on the property for gross proceeds of $6.7 million)
- TGT +1.3% (announces new $5 billion share repurchase program)
- MSFT +1.1% (dividend increased 8 percent; $40 billion authorized for share repurchase)
- COO +1.1% (to join the S&P 500)
- UPS +1% (following FDX earnings)
Analyst comments:
- CONN +7.3% (upgraded to Buy from Hold at Stifel)
- ANFI +6.5% (initiated with a Buy at Jefferies)
- ESV +5.7% (upgraded to Buy from Neutral at Goldman )
- PBYI +4.1% (upgraded to Buy at Stifel)
- BCS +3.9% (upgraded to Buy from Hold at HSBC)
- SYRG +2.6% (initiated with a Outperform at Credit Suisse)
- NE +2.5% (upgraded to Neutral from Sell at Goldman)
Vale board rumoured to approve today sale of 66% stake in Vale Fertilizantes to Mosaic for USD 3bn
The board of Brazilian mining company Vale will approve today the sale of 66% of its fertilizer unit, Vale Fertilizantes, toMosaic for USD 3bn, a Brazilian journalist Lauro Jardim wrote in his blog, without citing any source. The blogpost was published on the website of local newspaper O Globo.
Vale decided to divide the sale of its fertilizer unit in two in order to get a better total value for the deal, the Portuguese-language article noted. The company is in negotiations to sell a minority stake in the chemicals business of the unit for USD 1bn. However, this deal will not be announced on 21 September, the item added.
The item did not provide any other information on the deal.
As previously reported, US-based Mosaic hired JPMorgan as advisor for this deal.
Après des années de croissance, la maison de luxe a vu ses ventes baisser de 17% en 2015. L'enseigne indépendante semble se diriger vers un tournant stratégique.
Selon ce document de 92 pages, en notre possession, le groupe a réalisé un chiffre d’affaires de 6,24 milliards de dollars, en chute de 17% par rapport à 2014 alors que le résultat net a reculé de 6,8% à 1,34 milliard. Le résultat opérationnel a plongé de 23% à 1,6 milliard, engendrant une rentabilité en baisse à 25,7%, contre 27,6% un an plus tôt.
Le groupe a subi la chute du tourisme en France et en Belgique, suite aux attentats, ainsi que la baisse des ventes en Chine et la récession au Brésil et en Russie. Comme les comptes de Chanel sont consolidés en dollars, ces résultats sont aussi la conséquence de la hausse de la monnaie américaine face à l’euro et aux autres monnaies mondiales. Pour l’année en cours, la société s’attend à une performance stable. Conséquence, l’agence Bloomberg a revu à la baisse son estimation de la valeur du groupe à environ 19 milliards de francs.
Mais il n’y a pas que des mauvaises nouvelles dans les comptes de Chanel. Sous la rubrique «dividendes payés aux actionnaires», on découvre que les frères Wertheimer se sont octroyés 1,64 milliard de dollars, nettement plus que les 69 millions versés en 2014. Et la société dispose encore de 1,3 milliard en cash à la banque.
Préparer la transition
Reste que cette société emblématique semble être à un tournant de son existence. C’est aujourd’hui l’une des rares griffes encore indépendantes. Sa notoriété n’a cessé de croître notamment grâce à Karl Lagerfeld. Mais, à 82 ans, le directeur artistique du groupe, qui est entré chez Chanel en 1982, n’est pas éternel. Il va falloir préparer sa succession et la transition à la tête de la maison.
Début janvier, Chanel a remercié sa directrice générale Maureen Chiquet pour «divergences stratégiques». Elle officiait dans le groupe depuis près de dix ans. C’est Alain Wertheimer, 67 ans, qui a repris directement les rênes. Il vit à New York, alors que Gérard, 65 ans, supervise la division montres depuis Genève. A moyen terme, c’est l’un des fils d’Alain qui pourrait prendre les commandes de Chanel.
Enfin, pour relancer son célèbre N°5, détrôné du podium des parfums les plus vendus dans le monde, Chanel a revisité sa mythique fragrance dont la première version date de 1921. Elle vient de dévoiler une nouvelle version, baptisée «No5 L’Eau», qui vise à conquérir un public plus jeune.
C’est l’une des révélations des 92 pages du rapport annuel 2015 de Chanel International BV – l’entité néerlandaise qui chapeaute le groupe et ses filiales – que le magazine suisse Bilan et Le Monde se sont procuré. Ce document ratifié par le cabinet d’audit Deloitte a été déposé à la chambre de commerce d’Amsterdam.
Comme l’avait déjà révélé l’agence Reuters fin août, Chanel n’a pas été épargné par le retournement du marché. Ce groupe, qui met un point d’honneur à ne jamais diffuser le moindre chiffre, a vu ses ventes plonger de 17 % par rapport à 2014, à 6,24 milliards de dollars. Son résultat net a également reculé de 6,8 %, à 1,34 milliard de dollars. La rentabilité du groupe s’en est seulement un petit peu ressentie puisqu’elle est restée à un niveau extrêmement enviable de 25,7 % (contre 27,6 % un an plus tôt).
« Environnement économique difficile »
A la faveur de la cession de sa filiale Chanel Limited UK (qui représente 11 % de ses ventes) à une autre entité toujours sous son contrôle, le groupe veut faire de Londres un nouveau « centre de management et de direction ». Sans pour autant parler de transfert...
Early premarket gappers
Gapping up: CLVS +10.5%, USEG +10.1%, ARIA +7.8%, ADMS +7.7%, CONN +6.4%, EXEL +6.2%, SPSC +5.3%,ADBE +4.8%, AU +4.4%, BCS +4.2%, FDX +4.2%, CPRT +4.1%, IDRA +3.9%, GFI +3.8%, VALE +3.7%, DRD+3.4%, SRPT +3.4%, ING +3.3%, MRO +3.2%, AG +2.8%, CHK +2.7%, RIG +2.6%, OAS +2.6%, FOXF +2.5%, KBH+2.5%, SAN +2.1%, SSL +2.1%, CS +2%, NUS +1.9%, KITE +1.6%, ABX +1.6%, GDX +1.5%, RDS.A +1.4%, BP+1.4%, AXAS +1.3%, MSFT +1.3%, XOM +1.3%, PBR +1.2%, GIS +1.2%, AGTC +1.1%, GPRO +1%, UPS +0.9%
Gapping down: MSTX -82.2%, MIRN -26.8%, AERI -5.1%, CDNA -3.5%, SKX -3.2%, JKS -1.9%, LEI -1.4%, AIRG-1.1%, COMM -0.9%
Gapping down: MSTX -82.2%, MIRN -26.8%, AERI -5.1%, CDNA -3.5%, SKX -3.2%, JKS -1.9%, LEI -1.4%, AIRG-1.1%, COMM -0.9%
ABB holds power systems division and firmly resists breaking
ABB maintains its current network division. The Swiss Siemens competitor wants to convince investors in the Capital Markets Day on 4 October with a growth agenda.
The Swiss ABB Group wants the demands of activists around major shareholder Cevian Capital parry with a growth agenda. The strategic review of the current systems division had brought the result that their whereabouts in the Group creates value for shareholders. The reported manager magazin in its new edition, which is available on Friday (September 23) in trade, citing the business community.
The management at ABB CEO Ulrich Spiesshofer will therefore hold on the division. Sells hand was the global system business for high voltage cables NKT Cables as ABB announced on Wednesday.
The aim is also to increase the cost efficiency, mm, citing the business community. In the medium term could the operating result of the division be increased by a mean hundreds of millions per year, so an internal ABB default.
As the manager magazine further reported that ABB top support of the largest shareholder Investor AB has it (10.5 percent). An ABB spokesman declined to comment on the information.
SPECIAL SITUATION: MEDIASET (MS: IM) in light of the Vivendi deal dispute - risk/reward skewed to the upside
In this note we present four potential scenarios for Mediaset and their valuation implication given the uncertain situation with Vivendi regarding the sale of Mediaset Premium (“Premium”).
On April 2016 Vivendi offered to acquire 100% of Premium but in July pulled back from its original offer and asked to renegotiate. Vivendi proposed a revised offer of which Mediaset rejected and filed for damages in Italian courts. At the same time there have been rumors in the French press that the two parties are trying to reach a new deal/settlement.
In the report attached we draw four potential scenarios for Mediaset, in order to assess valuation implications of a range of potential alternatives and what could be the upside/downside of each. We believe the market is now pricing a low probability of a future deal and has significantly marked down the valuation of Mediaset Premium. We note that any other outcome and especially an announcement of a revised deal (or even just renewed talks between the parties) could unlock upside in Mediaset shares. We see the downside risk mainly if Premium losses are higher than market expectations and at the same time Vivendi completely abandons the idea of the acquisition.
Below we present a summary of the 4 scenarios and the implied weighted average PT:
Given the attractive risk/reward ratio we would start to build a position of Long MS: IM /Short Mediaset Espana TL5: SM (pro rata of the capital structure) + hedge the rest with short Vivendi.
Full report and analysis attached!