>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: SCTY -30.2%, OESX-23.8%, KS -18.6%, USNA -14.9%, KFRC -9.8%, MCZ -4.1%, DIS -3.6%, CSC-3.6%, ARMH -2.9%, DWRE -2.5%, SGEN -2.3%, LF -2.1%, AXTA -1.6%, ARI-1.2%, EEFT -0.8%, WU -0.7%


Select SCTY related peers showing weakness: SUNE -4.2%, FSLR -2.5%,CSIQ -1.4%, JASO -0.8%

Select metals/mining stocks trading lower: AUY -2.1%, KGC -2.1%, MUX-2%, IAG -1.6%, AG -1.6%, GG -1.3%, ABX -1.1%, GOLD -0.8%, NEM -0.7%,AU -0.6%

Other news: CTIC -44% (reports Pacritinib has been placed on full clinical hold; co withdraws its NDA), MSTX -33.3% (intends to offer shares of common stock and warrants to purchase common stock in an underwritten public offering ), TRXC -11.1% (finalizes FDA submission process related to Surgibot System 510(k) application), TTM -5.3% (reports January global wholesales), EXC -2.3% (Pepco Hldgs dropped in late trade on reports Exelon may walk away from POM deal)

Analyst comments: N/A

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ELMD +46.6%, AKAM +18%, LLNW+17.8%, PAYC +15.6%, CRTO +15.2%, PSEC +11.2%, MKTO +9.9%, FDC+8.1%, RSYS +7.9%, UNIS +7.7%, ATEN +7.3%, NUAN +5.9%, SCSC +5.4%,SGMO +5.1%, PNRA +3.4%, GWPH +3%, USAC +2.9%, CG +2.7%, TCX+1.5%, RICK +1.5%, FWRD +1.2%, TWX +0.6%

M&A news: EDE +15.2% (Empire District Elec to be acquired by Algonquin Power & Utilities for $34/share, or ~$2.4 bln)

Select financial related names showing strength: DB 8% (co is considering a multi-billion euro bond buyback), BBVA 5.4%, SAN 5%, CS 2.1%, C 2.1%

Other news: FIT +3.8% (Salesforce.com's (CRM) Marc R. Benioff discloses 5.3% passive stake ), RACE +3.5% (cont pre-mkt vol), QGEN +2% (Qiagen & 10x Genomics to enter into Co-marketing and co-development collaboration), SHPG +2% (granted orphan designation by the FDA for its compound for the treatment of retinitis pigmentosa), JOY +1.9% (still checking), TWTR +1.7% (reports earnings AMC), NOK +1.4% (publishes results for its public exchange offer for Alcatel-Lucent (ALU); Nokia to hold ~91% of the share capital of ALU)

Analyst comments: RBS +5.4% (upgraded to Outperform from Underperform at Exane BNP Paribas+), BUD +3.9% (upgraded to Buy from Neutral at BTIG Research), NFLX +2.1% (upgraded to Buy from Outperform at Credit Agricole ), HES +1.3% (added to Conviction Buy List at Goldman), SYT +0.6% (upgraded to Buy at Kepler)

>>> Walt Disney: Color on Quarter --> -2% pre market

Walt Disney: Color on Quarter

  • FBR & Co lowers tgt to $101 from $110. Star Wars crushed it, driving big upside, with the studio hitting our outlier-high estimate of $1B in segment profit. Of course, in this tape, seemingly no investor cares, with the stock indicating down, after hours, on slow affiliate fee growth at ESPN. Still, they see investors as focusing on a tiny pimple to miss a pretty face. New disclosures suggest that stronger-than-expected retransmission/reverse fees for ABC are nearly completely offsetting slower ESPN affiliates. Additionally, Disney sees signs that the modest sub-loss pressures at ESPN are reversing, thanks, at least in part, to uptake of DISH's Sling, supporting what they have argued all along-that online potential for Disney networks is a great offset to the risk to the pay TV bundle.
  • Topeka lowers tgt to $130 from $131. Media Netowrks EBIT result missed their projection of $1.60B, due primarily to an increase in sports rights.Theme Parks margins were a new record, studio EBIT at $1 bln was also a record. They still feel comfortable with the overall shape of their F2017 view, although they are modifying F2017 EPS down by $0.05/share simply to account for higher P&A on the film slate.
  • Needham notes that although shares traded down in the after-market as investors focused on ESPN weakness, the strategy, execution and mgmt team excellence was on full display as DIS reported record results in film, parks and consumer products thanks to Star Wars. Mgmt forecast that ESPN would be a positive contributor to Operating Income growth going forward, although the Q&A session indicated that analysts were skeptical of this claim. They maintain their Hold rating as they believe DIS is pivoting toward content creation that targets boys (rather than girls) and 20-45 year olds (rather than 10-17 year olds), both of which have far more competition and muddy DIS's historical brand value.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: AKAM +17.8%, LLNW +17.8%, PAYC +15.6%, SQ +14.8%, EDE+13.5%, MKTO +9.9%, PSEC +9.3%, DB +9%, RSYS +7.9%, UNIS +7.7%,ATEN +7.3%, NUAN +6.1%, BBVA +5.6%, SAN +5.5%, SCSC +5.4%, FIT+4.7%, NVO +4.5%, CETV +3.6%, RACE +3.4%, PNRA +3.4%, EURN +3.2%,CS +3.2%, GWPH +3%, CRM +2.9%, JOY +2.8%, FCX +2.6%, TWTR +2.5%, C+2.2%, QGEN +2%, TCX +1.5%, RICK +1.5%, FWRD +1.2%, TWX +0.6%

Gapping down: MSTX -35%, SCTY -30.7%, OESX -23.8%, TRCX -20.5%,CTIC -18.8%, KS -18.6%, USNA -14.9%, KFRC -9.8%, MUX -7.3%, SGMO-7.1%, TTM -5.3%, MCZ -4.1%, IAG -3.7%, DIS -3.6%, ABX -2.7%, ARMH-2.6%, AUY -2.5%, KGC -2.5%, AG -2.5%, DWRE -2.5%, NEM -2.3%, AA-2.3%, SLW -2.3%, LF -2.1%, NAV -2%, GG -1.6%, AXTA -1.6%, AU -1.4%,ARI -1.2%, SUNE -1.1%, GOLD -0.9%, ARWR -0.9%, EEFT -0.8%, WU -0.7%,SGEN -0.6%, FDC -0.5%, CG -0.5%

>>> Mattress Firm activist Berkshire seeks talks to enhance shareholder value, s

Mattress Firm activist Berkshire seeks talks to enhance shareholder value, strategic activities, board composition
Mattress Firm Holding Corp. (NASDAQ:MFRM) shareholder Berkshire Partners is seeking talks on strategic issues including potential board representation.

In a Tuesday 13D filing, Berkshire Partners disclosed beneficial ownership of 10.4%. Berkshire stated it intends to contact the management and board concerning options for enhancing shareholder value and other matters relating to the business and affairs of the company, including discussions about the potential for representation on the board and discussions relating to the composition of the board of directors generally. These discussions may also include engaging with the company on a review of its strategic activities, assessment of its organization, management of its balance sheet and the pursuit of other corporate transactions.

The activist said the 13D filing is not an admission that it holds shares for the purpose or with the effect of changing or influencing the control of the company.

On 8 February 8.5% shareholder 40 North Management wrote to Mattress calling for an overhaul of the company's board that adds more independent directors and reduces the control of 36% shareholder J.W. Childs.

40 North in a letter referred to the company's corporate governance as "worst-in-class," and raised serious concern for "its ongoing treatment by J.W. Childs – a minority shareholder who effectively controls the Board of Directors – as a private company being run without regard for the interests of all shareholders."

The activist has been a shareholder for three years, and filed its initial 13D in 2013.

Mattress has a market cap of USD 1.15bn.