Gapping up
In reaction to strong earnings/guidance: CRC +19.2%, CECO +19%, EXEL+14.8%, AXGN +13.5%, APEI +11.8%, LINE +11.4%, NEO +9.1%, APIC +6%,HALO +5.9%, HTZ +5.3%, XON +5%, LXRX +4.4%, JD +4.2%, FCAU +4.1%,WDAY +3.8%, SBLK +3.5%, JKS +3.1%, MBI +1.9%, AZO +1.7%, SALT +1.6%,GSL +1.4%, OPK +1.2%, BNS +1.1%
Select metals/mining stocks trading higher: MT +10.5%, BBL +5%, BHP+4.9%, RIO +4.4%, VALE +4.1%, X +2.6%, AA +2.1%
Other news: EXEL +15.1% (Exelixis and Ipsen (IPSEY) jointly announce an exclusive licensing agreement for the commercialization & further development of oncology drug Cabozantinib ), SYN +12.5% (US Patent office issues notices of allowance for 3 patent applications covering SYN-004; intended for prevention of C. difficile infection & antibiotic-associated diarrhea), FOLD +12% (sannounces 'positive' data from both of its Phase 3 studies of the oral small molecule pharmacological chaperone migalastat HCl ), TROV +6.8% (enters into an agreement with Multiplan for participation in the PHCS), PVCT +6.4% (receives patent extending protection of the PV-10 manufacturing process), TTM +5.3% (reports Feb. 2016 sales), HSC +4.7% (awarded $10 mln order from the Mexico City International Airport), FCAU +4.1% ( reports FEB US Sales up 12%), BTU+2.5% (updates on initiative to optimize liquidity and reduce leverage; files to delay form 10-K), LVS +2.2% (Macau gaming data released), VRX +1.7% ( issues statement, confirms it received a subpoena from the SEC in Q4 ),BABA +1.5% (in symp with JD earnings), TWTR +1.1% (still checking, may just be up with futures today), SNN +0.9% (concludes pension funding exercise; agreements to boost free cash flow by £50 mln in FY17 onwards)
Analyst comments: BGG +3.4% (upgraded to Strong Buy from Mkt Perform at Raymond James), RIG +1.7% (upgraded to Hold at Canaccord Genuity)
In reaction to strong earnings/guidance: CRC +19.2%, CECO +19%, EXEL+14.8%, AXGN +13.5%, APEI +11.8%, LINE +11.4%, NEO +9.1%, APIC +6%,HALO +5.9%, HTZ +5.3%, XON +5%, LXRX +4.4%, JD +4.2%, FCAU +4.1%,WDAY +3.8%, SBLK +3.5%, JKS +3.1%, MBI +1.9%, AZO +1.7%, SALT +1.6%,GSL +1.4%, OPK +1.2%, BNS +1.1%
Select metals/mining stocks trading higher: MT +10.5%, BBL +5%, BHP+4.9%, RIO +4.4%, VALE +4.1%, X +2.6%, AA +2.1%
Other news: EXEL +15.1% (Exelixis and Ipsen (IPSEY) jointly announce an exclusive licensing agreement for the commercialization & further development of oncology drug Cabozantinib ), SYN +12.5% (US Patent office issues notices of allowance for 3 patent applications covering SYN-004; intended for prevention of C. difficile infection & antibiotic-associated diarrhea), FOLD +12% (sannounces 'positive' data from both of its Phase 3 studies of the oral small molecule pharmacological chaperone migalastat HCl ), TROV +6.8% (enters into an agreement with Multiplan for participation in the PHCS), PVCT +6.4% (receives patent extending protection of the PV-10 manufacturing process), TTM +5.3% (reports Feb. 2016 sales), HSC +4.7% (awarded $10 mln order from the Mexico City International Airport), FCAU +4.1% ( reports FEB US Sales up 12%), BTU+2.5% (updates on initiative to optimize liquidity and reduce leverage; files to delay form 10-K), LVS +2.2% (Macau gaming data released), VRX +1.7% ( issues statement, confirms it received a subpoena from the SEC in Q4 ),BABA +1.5% (in symp with JD earnings), TWTR +1.1% (still checking, may just be up with futures today), SNN +0.9% (concludes pension funding exercise; agreements to boost free cash flow by £50 mln in FY17 onwards)
Analyst comments: BGG +3.4% (upgraded to Strong Buy from Mkt Perform at Raymond James), RIG +1.7% (upgraded to Hold at Canaccord Genuity)
Early premarket gappers
Gapping up: CECO +19%, APEI +16.7%, AXGN +13.5%, EXEL +12.1%, CRC +12.1%, LINE +11.4%, MT +8.9%, HALO +8.9%, VALE +7.1%, JD +6.1%,APIC +6%, JKS +5.6%, BHP +5.4%, BBL +5.2%, RIO +4.8%, XON +4.7%, X +3.6%, SBLK +3.5%, VRX +3.4%, HSC +2.9%, CS +2.9%, FCX +2.6%, LVS+2.5%, GSK +2.5%, KATE +2.4%, TWTR +2.2%, FCAU +2.2%, BABA +2.1%, BP +2.1%, OPK +2%, MBI +1.9%, AA +1.8%, HTZ +1.8%, RDS.A +1.7%, RIG+1.6%, AZO +1.3%, BNS +1.1%, WDAY +0.9%
Gapping down: RMTI -32%, OPWR -23.8%, DPLO -22.9%, SUNE -17.7%, NLST -13.2%, BCS -7.4%, ANAC -5.9%, NVCR -5.8%, MRO -5.2%, CODI -5%,TERP -4%, EYES -2.3%, SALT -2.2%, TNET -2%, CROX -1.9%, FSIC -1.8%, ZLTQ -1.7%, KITE -1.6%, PRGN -1.3%, GFI -1.2%
Greece govt spokesperson Gerovasili: To exhaust all diplomatic means to defend its positionst upcoming EU Summit
- Reiterates view that Greek govt has already made many concessions so that debt relief talks can begin
- Reiterates the red line that discussion on pensions has reached itslimits
- Euro Working Group (EWG) meeting on Monday, Feb 29th showed that there is distance between the positions of European creditors and Greece on the one hand, and the IMF on the other
ML
* LSE/DB1 - ICE said to explore rival bid for LSE to thwart D. Boerse....RSTR
ROTORK - FY15 small beat and order in-take “less bad” in Q4,4% short base.+5%
JUST EAT - FY EBITDA a 3$ beat and EBITDA guidance implies 8% u/gs........+5%
ZALANDO - EBIT a beat v BAML and guides to top end for revs, looks solid+3-4%
DIRECT LINE - PBT of £192.5m vs cons for 2H of £135.9m, comb ratio driver.+3%
SWISS LIFE - Net profit 6% ahead driven by savings,div CHF 8.5 v 8.26 est.+2%
TULLETS - Revs in Line , PBT and EPS small better than cons.............+1-2%
HELICAL BAR - Good progress on developments. Sales continue at Barts SQ.+1-2%
ACCIONA - Net at EUR 207m bang in line, EUR 2.5 div v cons at 2, u/g away.+1%
KLOECKNER - Numbers bang in line with pre-release, no -ve surprises.......+1%
GEORG FISCHER - FY EBIT a 5% beat and div CHF 18 v 17 est, guides in line.+1%
SMIN - small positive from triennial review of UK pension scheme.........u/c
TAYLOR WIMPEY - Results 1% better than est, dividend as expected..........u/c
PSP SWISS PROPS - EPRA NAV a small beat and small div increase reassuring.u/c
GLENCORE - Underlying EBIT a 13% miss v cons, net debt touch higher.......u/c
ELEMENTIS - Sales 2% light v cons and EBIT a 3.5% miss, 8p special div....u/c
RANDGOLD - We DOWNGRADE to Neutral, PO to 6,700p from 6,600p..............-1%
ASHTEAD - Q3 results in line, guides lower on capex but no cons upgrades-1-2%
MONY - FY revs in line, op prft looks better at £80.5m as does EPS........-1%
FRESNILLO - FY15 EBITDA a 7% miss v cons, 2% when adj for non-cash items..-2%
OERLIKON - FY sales in line but EBITDA lower & net loss higher, CEO exits.-2%
ACERINOX - FY EBITDA 1% light, net debt materially higher, weak outlook.-2-3%
BARCLAYS - Adj PBT £5.4bn v 5.77bn est, capital better but cuts 16/17 div.-3%
IPSEN - Q4 small beat but 2016 margin guidance implies 5% downgrades......-3%
CS
Acciona UNCH 2015 Net Income inline, EBITDA inline, revenues small miss
Acerinox -3% EBITDA €42m cons €45m, outlook looks slightly light
Ashtead -2-3% Q3 EPS is a 4% beat, capex guidance worse
Aviva +1% Osborne under pressure to soften plans for pensions reform
Barclays -2% Messy numbers, dividend cut
Burberry UNCH Vague bid spec in the FT
Centrica +1% Additional capacity for winter 2017/2018, was 2018/2019
Deut Boerse -1-2% ICE Said to Explore Bid for LSE to Thwart Deutsche Boerse
Direct Line +1% Numbers slightly ahead of market expectations
Drax +5% Additional capacity for winter 2017/2018, was 2018/2019
GAM Holding -3-5% PBT a beat, big net new money miss
Georg Fis +1-2% Sales inline, EBIT and dividend small ahead
Glencore +1-2% EBITDA $8.7bn cons $8.7bn, aiming for lower net debt
Indra -2-3% Revenues c1% light, adj EBIT inline, outlook conservative
Ipsen -1-2% Sales beat, costs higher, dividend flat
Jardine Lloyd -2% Revenues inline at 1.16b cons 1.17b, commentary cuatious
Kloeckner M/P EBITDA €11m vs CS ests €10m, net debt reduction better
LSE +5-7% ICE Said to Explore Bid for LSE to Thwart Deutsche Boerse
Moneysuper +1% Profits 1% ahead, EPS a small beat, outlook better
Miners M/P Copper -0.25%, Brent -0.45%, Iron Ore +2.70%, China +1.59%
Oerlikon +5-7% New CEO, implementing new strategy, outlook reads fine
Philips +1-2% Chinese investor GO Scale said to bid for Philips Lighting
PSP +1% FY rental income 275mln vs cons 279.4mln, guidance inline
Regus M/P Revs 1927m cs 1954m, debt a little higher, outlook inline
Rotork +2-3% FY revenues 2% beat, operating profit 2% beat
Santander -1% Announced USD1.8bn writedown
SSE +2% Additional capacity for winter 2017/2018, was 2018/2019
Stan Life +1% Osborne under pressure to soften plans for pensions reform
St James +1% Osborne under pressure to soften plans for pensions reform
Taylor Wimp M/P FY earnings inline, maintains previous cap return guidance
Ubisoft +3-5% Vivendi says it owns 15.66% of Ubisoft, vs 11.5%
Umicore -2% Loses first round in BASF patent fights over batteries
Weir +1-2% Possible U.S. parties interested in bidding. FT
MainFirst Pre Mkt Indications...
*DB1-ICE said to explore rival bid for LSE(+5%),wait till March.....-1.6%
*BMW-Mood in China more stable,sees SD sales grth,adding dealers....+0.5%
*VW-Mueller says in constructive talks with US,+ve f/b China/Germ...+1%
*VIVENDI-Raises offer for Gameloft to €7.2(6) & Ubisoft stake.......unch
*SWISS LIFE-Prems 18.9b(19.2),NP 878m(846),Divi 8.8(8)..............+2%
*OCERLIKON-Net -418m(-336),Sales 2.67b(2.7),CEO leaves +ve news.....-2.4%
*KLOECKNER-Q4 Rev 6.44b(6.4),Ebitda 2m(-2),NI -263m(-246),O/L ok....+3%
*ATLANTIA-Weighting sale of 30% stake in Autostrade Unit-Sole.......+0.5%
*FISHER-FY Sales 3.64b(3.65),Ebit 296m(282),Net 198m(187),o/l ok....+0.5%
*GAM-FY Op Inc 600.6m(584),Net 158.4m(146.2),AUM 119b(121.8)........unch
*PSP-FY Rental 275.1m(276.1),Net 187.7m(177.8),Div 3.3(3.25)........unch
*DIC-FY Rent 136.7m(134),FFO 47.9m,Pft 20.7m,FY16 Rent 100m.........+3.4%
*ZALANDO-Rev 2.96b(2.964),Ebit 107.5(105.96),Guidance look ok.......+2.5%
Key themes to survive low growth and high volatility
European capital goods stocks couldn’t escape the recent market turmoil and are down 20%
compared to December’s elevated levels. Moreover, we believe that the correction between
April and August 2015 was driven by concerns about falling oil prices, a slowdown in the
Chinese economy and concerns about an industrial recession in the US. Similar to Q2 last year,
Q4 results were broadly in line with expectations. At current valuations, we therefore think that
the rebound may carry into the second quarter as much as we saw a recovery September
through November last year.