>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: FN +12.3%, SRDX +7.6%, BECN +7.3%, LXRX +7%, RTEC +6.7%, THC +6.2%,OI +6%, CGNX +5.8%, ROG +5.7%, MPWR +5.5%, DENN +5.3%, LMNX +5.3%, MNK +5.2%, BWXT +5%, RGR +5%, MACK+4.8%, VMC +4.8%, IDTI +4.1%, IVAC +4%, EXAS +3.9%, AEIS +3.8%, TNET +3.6%, MYL +3.4%, ARW +3.4%, TXRH+3.3%, FLY +3.2%, ACW +3%, CC +2.6%, PFE +2.6%, AEGN +2.6%, EIGI +2.5%, GGP +2.3%, UVE +2.3%, AXTI +1.9%,CIM +1.4%, HOT +1.4%, AFSI +1.4%, S +1.4%, CVS +1.3%, TACO +1.2%, ABMD +1.2%, CLX +1.1%, WEC +1%, RKUS+0.9%, BBW +0.9%, EMR +0.9%, ARRY +0.9%

Select metals/mining stocks trading higher: AUY +2.1%, GFI +1.5%, SLW +1.1%, NEM +1%, GDX +0.9%

Other news: CORI +25.7% (receives favorable written feedback from the FDA on its Pre-Investigational NDA submission for once-weekly transdermal Corplex Donepezil), PTX +11.7% (cont momentum higher), YELP +4.6% (headlines Einhorn has highlighted a new YELP position in his Q1 letter), MUX +1.6% ( purchases 'attractive target' near El Gallo Mine for $250K ), VRX+1.6% (confirms Joseph Papa has assumed role of Chairman/CEO), AV +0.8% (acquires an additional 23% share in Aviva India from JV partner Dabur Invest Corp), KITE +0.8% (confirms FDA orphan designations for KTE-C19 for the treatment of primary mediastinal B cell lymphoma and 4 other indications )

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ONDK -36.1%, KTWO -24.4%, MCEP -17.6%, CYH -11.7%, BETR -8.5%,RAIL -7.5%, OZM -7.5%, UBS -6.3%, Q -6.1%, QLYS -5.7%, (appoints Melissa Fisher CFO, effective immediately), OLN-5.7%, APLP -5%, PBI -4.4%, APC -3.8%, RSO -3.8%, AMAG -3.8%, ARR -3.6%, COTY -3.4%, IMS -3.3%, ADM -3.3%, AIG-3.2%, VNO -3%, EL -2.7%, WNR -2.6%, RGLS -2.2%, VLO -2.2%, SBAC -2.1%, CERU -1.6%, ACLS -1.5%, RSPP -1.4%,APU -1.4%, EIX -1.3%, SYKE -1.3%, HSBC -1.3%, NTI -1.2%, CEQP -1.2%, HRS -1%, RRD -1%, FOLD -0.7%

M&A news: STO -2.5% (divests interest in Edvard Grieg field; increases stake in Lundin Petroleum (LNDNY))

Select EU financial related names showing weakness in sympathy with Commerzbank (, down ~8%, released earnings overnight): RBS -5%, DB -4.5%, CS -4.1%, BCS -3.4%, SAN -3.2%

Select metals/mining stocks trading lower: MT -4.5%, RIO -4.1%, CLF -4%, VALE -3.4%, BHP -3.2%, X -2.5%, FCX-2.1%, AA -2.1%

Select oil/gas related names showing early weakness: SDRL -6.4%, RDS.A -2.4%, MRO -2.4%, BP -2.3%, RIG -2.3%,WLL -2.2%, TOT -2.2%, CVX -0.9%

Other news: CUR -37.3% (commences common stock offering for undisclosed amount ), RVLT -19% (prices 2.775 mln common stock offering at $5.25/share), LC -6.1% (in sympathy with ONDK), ADRO -5.7% (files for $300 mln mixed securities shelf offering), INCR -5.5% ( commences 8 mln common stock offering by selling stockholders, namely affiliates of Avista Capital Partners, L.P. and affiliates of Ontario Teachers' Pension ), PRAH -5.2% (announces 5 mln common share secondary offering by selling shareholders), COMM -4.1% (Commscope announces sale of 20 mln shares of common stock on an underwritten basis by an affiliate of The Carlyle Group, the selling shareholder), EQT -2% (upsizes and prices 10.5 mln shares of common stock at $67.00 per share)

Analyst comments: SRPT -4% (downgraded to Underperform from Mkt Perform at Leerink Partners), UTX -0.9% (downgraded to Sector Perform at RBC Capital Mkts)

>>> Vulcan Materials beats by $0.19, beats on revs; sees FY16 EBITDA at high end

Vulcan Materials beats by $0.19, beats on revs; sees FY16 EBITDA at high end of guidance; raises shipment outlook
  • Reports Q1 (Mar) adj. earnings of $0.26 per share, $0.19 better thanthe Capital IQ Consensus of $0.07; revenues rose 19.5% year/year to $754.7 mln vs the $702.14 mln Capital IQ Consensus.
  • Aggregates freight-adjusted revenues increased $107 million, or 28 percent, to $487 million
  • Shipments increased 17 percent, or 5.7 million tons, to 39 million tons
  • "The strong fundamentals of our aggregates-focused business and the execution of our teams led to strong earnings growth in 2015 and to a fast start in 2016. Our fast start through the first quarter has put usahead of our original plans and tracking towards the high end of our full year Adjusted EBITDA guidance of $1.0 to $1.1 billion. In addition, we now project full year 2016 aggregates shipments to be 8 to 9 percent higher than 2015 (vs. our prior 7 percent growth estimate). Other management expectations (e.g., aggregates price, gross profit growth and SAG expense) remain consistent with those outlined during our fourth quarter 2015 communications."

>>> Fresh Del Monte beats by $0.73, misses on revs

Fresh Del Monte beats by $0.73, misses on revs
  • Reports Q1 (Mar) earnings of $1.57 per share, excluding non-recurring items, $0.73 better than the two analyst estimate of $0.84; revenues rose 1.0% year/year to $1.02 bln vs the $1.05 bln two analyst estimate.
Bananas:
  • Net sales for Q1 of 2016 increased $4.3 mln to $458.6 mln, compared with $454.3 mln in the first quarter of 2015, primarily driven by higher sales volume in the Company's Asia and Middle East regions. Worldwide pricing decreased $0.08, or 1%, to $14.81 per unit, compared with $14.89 per unit in Q1 of 2015. Volume was 2% higher than the prior year period
Other Fresh Produce:
  • Net sales for Q1 of 2016 increased $16.3 mln to $480.9 mln, compared with $464.6 mln in Q1 of 2015. The increase in net sales was primarily due to higher sales volume in the co's fresh-cut, avocado and pineapple product lines
Prepared:
  • Food Net sales for the first quarter of 2016 decreased $10.9 mln to $78.6 mln, compared with $89.5 mln in Q1 of 2015. The decrease in net sales was primarily the result of lower sales volume and lower selling prices in the co's Jordanian poultry business and lower sales volume in the co's canned pineapple product line.

>>> Coty to merge with P&G Beauty Brands (PG), anticipated meaningful EPS accret

Coty to merge with P&G Beauty Brands (PG), anticipated meaningful EPS accretion due to ~$780 mln of cost synergies; expected to close Oct 2016
  • Estimated cost savings have been increased to approximately $780 million annually, or 16% of acquired revenues, after the next four years, a very substantial increase from the estimate provided in July 2015
  • The P&G Beauty Brands, supported by the total expected synergies, is expected to add approximately 600 bps to the Coty stand-alone operating profit margins over a 4-year period
  • Estimated to increase Coty's fiscal 2015 adjusted earnings per share, excluding the impact of amortization, by approximately $0.49 to $0.54
  • To realize the cost synergies and close the transaction, the Company is anticipating to incur one-off costs of approximately $1.2 billion over the next four years
  • Following the close of the transaction, the annual dividend is expected to increase to $0.50 per share

(TechCrunch) Asos and Telefónica’s Wayra launch fashion tech accelerator

Fashion retailer Asos already has its own corporate venture arm, the aptly-named Asos Ventures. And now the publicly listed U.K. company is getting into to the startup accelerator business with a new fashion tech program being run in partnership with (and by) Telefónica’s Wayra.

The 8 month-long accelerator, which will be housed at Wayra’s London base, is on the hunt for “mature startups with a proven track record” who play in the fashion tech and ad space, and who can potentially complement Asos’ existing online fashion retail business, helping the company improve the Asos experience of its 11 million world-wide customers.

And, like other Wayra-run accelerators, there’s also the possibility, where a strategic fit applies, to tap into Telefónica’s 300 million customer base, although your mileage in this regard will vary. Corporate accelerators have a habit of over-egging this aspect of the programs they run.

However, two recent example of where this has happened are RotaGeek and Qudini. Both Wayra-accelerated startups have had their wares adopted by O2/Telefónica, proving that the corporate model can work as advertised, and that when it does it’s win-win for the startups involved and the corporates hoping to stay relevant in the face of ‘innovator’s dilemma’.
Specifically, here’s how Asos’ Wayra-run program will work: Both Asos and Wayra will invest a combined £34,000 for an equity stake in the range of 5 to 10 per cent. Chosen startups will be housed at Wayra’s London academy where they’ll receive 8 months office space, mentoring and business development support. The latter will come via Wayra’s own staff and mentor network, as well as through high level support from Asos itself.

During a call, Director of Wayra U.K. Gary Stewart, told me that since Wayra/Telefónica’s primary business isn’t running accelerators for other corporates, the partnership with Asos had to have a strategic fit for both companies, in terms of the kind of startups the program is aiming to attract but also the mentoring and biz dev support Asos will bring to the table.

For example, he told me, it was important that products and services developed by accelerated startups can, where appropriate, be tested with Asos’ customer-base and that support will come from the very top of Asos. In other words, that this is about the development of actual and successful companies, not simply PR or ticking the innovation or social responsibility box for the corporates involved.

Stewart also stressed that in many ways the new program will run just like other Wayra accelerators, with the difference here being that it targets a specific vertical and has a second backer/partner in the form of Asos. Despite the fashion retailer talking up its own needs, in terms of how startups can help it better reach customers, there’s no prior requirement to work with Asos’ existing software stack. “We don’t play the API game,” adds Stewart.

That said, suggested areas where applying startups can bring value to Asos include: helping customers navigate its catologue of 80,000 products; new ways of thinking about search; tech to power outfit or style recommendations and personalisation; helping Asos’ product taxonomy work harder; making content shoppable; big data and NLP; and retail logistics and last-mile delivery.

It’s worth noting, however, that the program is ruling out startups in the wearable tech, 3D printing or fashion design space.

“Asos has always been known as a digital leader and this partnership will help us continue to serve the needs of our customers as they evolve,” says Cliff Cohen, Asos CIO, in a statement. “There are specific areas where we would like to accelerate innovation, but we are also excited to hear what ideas come back from the start-ups themselves. The potential here, for ASOS, our customers and the companies we end up working with, is huge and Wayra UK is the perfect partner to work with on this search”.

Investor Active Ownership not pushing for sale of Stada -source - Reuters News

nvestor Active Ownership not pushing for sale of Stada -source - Reuters News

03-MAY-2016 13:23:32
FRANKFURT, May 3 (Reuters) - Investor Active Ownership, which has secured a 7 percent stake in Stada STAGn.DE, has no immediate plans to push for a sale of the German maker of generic drugs and consumer care products, a person close to the activist investor told Reuters.

"Active Ownership is currently not preparing a sales process, management change and also not a break-up," the source said on Tuesday.

It would instead work together with Stada's management on strategies that create value, the person added.

Officials at Active Ownership and Stada declined to comment.

The investor says on its website it was typically seeking board seats and advisory roles in the publicly listed small- and mid-size companies that it invests in.

"Together with management, we define value-enhancing strategies and measures and are ready to support their implementation as supervisory board members and advisors," it says on the website.

Active Ownership Fund SCS has acquired a direct 5.05 percent stake in Stada and holds about an additional 2 percent via stock options, an April 1 regulatory filing shows.

German daily Frankfurter Allgemeine Zeitung and the Wall Street Journal earlier cited sources as saying Active Ownership acquired the stake to potentially push for a sale of the generic drugmaker.

>>> Coty misses by $0.03, misses on revs (31.06)

Coty misses by $0.03, misses on revs
  • Reports Q3 (Mar) earnings of $0.09 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.12; revenues rose 2.5% year/year to $950.7 mln vs the $970.73 mln Capital IQ Consensus.
  • For the full fiscal year, like-for-like revenue performance is expected to remain consistent with the year-to-date trend. Adjusted operating income is expected to be in line with the prior year due to the impact of foreign exchange, with high single digit growth on a constant currency basis.
  • Adjusted gross margin of 61.8% increased from 61.6% in the prior-year period, driven primarily by a lower level of promotional and discounted pricing activity.

>>> ZODIAC AEROSPACE ZODC.PA HAS NOT RECEIVED ANY TAKEOVER OFFERS, BOARD HAS NOT

ZODIAC AEROSPACE ZODC.PA HAS NOT RECEIVED ANY TAKEOVER OFFERS, BOARD HAS NOT DISCUSSED THE ISSUE - SOURCES

Zodiac Aerospace has not received any takeover offers - sources - Reuters News

03-MAY-2016 12:06:19
PARIS, May 3 (Reuters) - Zodiac Aerospace ZODC.PA has received no takeover offers despite recent speculation of bid interest in the aircraft interiors and systems maker, two people familar with the matter said on Tuesday.

"The board has received no takeover offers," one of the sources said.

Another said the board had not discussed the issue.

A spokesman for the company confirmed this but declined further comment.