>>> Wal-Mart beats by $0.05, reports revs in-line; guides Q3 EPS in-line; raises

Wal-Mart beats by $0.05, reports revs in-line; guides Q3 EPS in-line; raises FY17 EPS, in-line
--> Earning Trasncript atatched
--> WMT +3.1% in pre open 328k shares traded @ vwap of 75.45

  • Reports Q2 (Jul) earnings of $1.07 per share, $0.05 better than the Capital IQ Consensus of $1.02; revenues rose 0.1% year/year to $119.41 bln vs the $119.33 bln Capital IQ Consensus.
  • Walmart U.S. delivered positive comp sales for the eighth consecutive quarter, up 1.6% vs. +1% guidance, driven by the seventh consecutive quarter of positive traffic, up 1.2%. Sams comps ex fuel +0.6% vs. slightly positive guidance.
  • Neighborhood Market comp sales increased ~6.5%. Globally, on a constant currency basis, e-commerce sales and GMV increased 11.8% and 13.0%, respectively, representing an acceleration from the first quarter.
  • Consolidated operating income increased 1.6%, including a gain of $535 million from the sale of Yihaodian. Excluding this gain, consolidated operating income declined 7.2%. As expected, investments in people and technology, as well as currency exchange rate fluctuations negatively impacted results.
  • Co issues in-line guidance for Q3, sees EPS of $0.90-1.00 vs. $0.93 Capital IQ Consensus Estimate. Comps: Walmart U.S.: 1.0% to 1.5%; Sam's Club (ex. fuel): Slightly positive
  • Co issues in-line guidance for FY17, raises EPS to $4.15-4.35 from $4.00-4.30, excluding non-recurring items but including $0.05 dilution from jet.com acquisition in Q4, vs. $4.26 Capital IQ Consensus Estimate.

Reuters - Volvo and Uber team up to develop self-driving cars

STOCKHOLM (Reuters) - Volvo Car Group has agreed a $300 million alliance with Uber to develop self-driving cars, the latest move by traditional vehicle manufacturers to team up with Silicon Valley firms long seen as disruptive threats to their industry.
The partnership will see the Swedish-based carmaker, owned by China's Geely, and ride-hailing service Uber pool resources into initially developing the autonomous driving capabilities of its flagship XC90 SUV. The investment will be roughly shared equally by the two companies.
Uber will purchase Volvos and then install its own driverless control system for the specific needs of its ride-hailing service.
Volvo will use the same vehicle for its own autonomous driving project, which is based on a plan that still envisages having a driver in the car.
The investment will go towards researching and developing both hardware, such as sensors used to detect traffic and obstacles, as well as software for the self driving cars.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: RPTP +19.6%, CIE +13.3%, IMMU +9.4%, NTAP +8.8%, SPHS +5.6%, NTES +3.6%, WMT +3.5%, LB +2.9%, GFI +2.6%, ARWR +2.5%, RIO +2.3%, JKS +2.3%, FCX +2.3%, YY +2.3%,BHP +2.2%, BBL +2.1%, SBGL +2%, MT +1.9%, CHK +1.9%, AU +1.7%, AG +1.7%, SAND +1.6%, SNPS +1.6%, SHPG +1.1%, MRO +1%, GG +1%, GDX +0.9%, BONT +0.6%

Gapping down: CERU -60.6%, EARS -54.2%, PTLA -18.4%, HEB -16.7%, JNP -15.3%, BGG -14%, ARAY -13.2%, OMED -10.3%, KEYS -9%, AEG -4.8%, A -3.7%, WUBA -3.2%, STEM -2.7%, TWTR-2.6%, UIHC -1.4%, CSCO -1.4%, SDRL -1.1%, DB -1.1%, SCTY -0.8%

>>> TOM2 NA - +2% not far from recent highs (8.5 and 8.47 in June)



From: LCHEKROUN@makor-cm.com At: 08/18/16 11:10:24
To: LAURENT CHEKROUN (MAKOR SECURITIES LO)
Subject: Fwd:>>> TOM2 NA - +2% not far from recent highs (8.5 and 8.47 in June)

An interesting name - perfect match for many players. As mentioned few time for the last few weeks (months & years) – let me know if you want to talk about it.

 

Weekly setup = bullish towards 8.92

 

 

 

 

(MS) Gold & Gold Equities - the big disconnect



Gold equities have re-rated to historical peaks or above. Without diminishing the possibility of more upside if risk aversion continues, we estimate that equities are discounting a gold price that is >20% above spot through perpetuity. Anglogold, Centamin, GoldCorp, Zhaojin are relative global picks

 

Equity re-rating has driven valuations to levels that are at or above historical peaks. Total shareholder returns for precious metals equities have so far exceeded 169% YTD. This has propelled valuations to levels that are at or above historical peaks for most equities under our coverage universe. While lifting gold prices have driven upgrades to consensus earnings, we maintain more than 50% of the equity performance is explained by multiple re-ratings. Our analysis suggests that the market is paying a 32% premium to what it has historically paid for reserves and resources across our global precious metals coverage.

 

An average 24% upside to spot gold is currently priced in. Without diminishing the upside to equities if risk aversion continues, shares are discounting a gold price that is, on average, 24% above spot through perpetuity if we use our base case costs of capital. Alternatively, the implied gold price declines to US$1,437/oz if we use a normalized 5% WACC - still 6% higher than current spot prices.

 

Balance sheets, operating risks remain low in absolute terms. Gold producers maintain robust balance sheets with 10 out of 27 companies holding net cash; the average ND/EBITDA among our globally covered stocks stands at 0.3x. This gives optionality to better manage sector cyclicality and seize reinvestment opportunities as they arise, without exposing shareholders to disproportionate risks. Companies have shown prudence and discipline so far, in our view. Additionally, cost improvements and overall price deflation over the last 12-18 months reduced all-in cash costs (AISC) whereby gold prices would need to fall by ~35%, on average, before companies burn cash.

 

This rally is (somewhat) different from historical precedents. We identify 6 rallies in gold equities with >60% performance over the last 40+ years including the current one, but excluding the super cycle. The current rally stands out. It has occurred over a relatively short time frame, with gold equities up 111% in just 8 months, compared to 20 months in one previous instance with a comparable level of performance, and 18-24 months for 2 rallies with over 200% absolute performance.

 

Relative picks: We favour AngloGold, Centamin, Goldcorp, and Zhaojin among our global coverage. Fresnillo and Randgold Resources are least preferred.



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