*FRANKFURT CUM-CUM PROBE OPENED IN WAKE OF COMMERZBANK REPORT
Lending Club on Conference Call- Call has ended
- Saw some seasonality; have seen some softness slide into April.
- Not disclosing other executives that resigned.
- Will schedule as many investor meetings in the next few weeks
Gapping up
In reaction to strong earnings/guidance: HZNP +11.9%, SSYS +7.4%, INO +6%,BIND +5.3%, TSN +4.8%, TSEM +4.6%, TEVA +4.1%, ASTC +3.3%, EBIX +3%,IMKTA +2.5%, LPX +2.2%, KOS +1.7%, HCP +1.3%, WLH +0.8%, AES +0.7%
M&A news: KKD +24.6% (to be acquired by JAB Beech for $21/share in cash, or ~$1.35 bln), DEPO +5.9% (NY Post discusses new hopes that Horizon Pharma (HZNP) could enter M&A talks with DEPO; also upgraded to Buy from Neutral at Mizuho), NSAM +5% (NorthStar Asset Mgmt followup to reports it is near a deal to be acquired by Colony Capital (CLNY) ), ARIA +3.9% (Incyte to acquire ARIAD's (ARIA) European operations), APOL +3.4% (shareholders approve $10/share cash acquisition by consortium of investors including Vistria Group, funds affiliated Apollo Global (APO) and Najafi Companies), INCY +1.1% (to acquire ARIAD's (ARIA) European operations & in-license Iclusig for $140 mln & tiered royalties, also reported earnings)
Other news: PTX +17% (cont momentum higher following last week's strength),CHK +6.1% (small rebounding following last week's 30%+ declines), CLLS +5.8% (files for mixed securities shelf offering), VRX +4.1% (reiterates 2016 first quarter guidance, expects to file its Form 10-Q for the quarter ended March 31, 2016 on or before June 10), DDD +3.1% (in symp with SSYS), MYL +2.3% (in sympathy with peer TEVA (- higher after earnings)), BZH +1.5% (director purchases 55,000 shares at ~$7.25/share), BUD +1.3% (still checking, likely surrounding expectations of completion of SABMiller merger)
Analyst comments: SNN +2.2% (upgraded to Buy from Hold at Jefferies), TSLA+1.4% (assumed with a Buy at Dougherty & Company; tgt $500)
In reaction to strong earnings/guidance: HZNP +11.9%, SSYS +7.4%, INO +6%,BIND +5.3%, TSN +4.8%, TSEM +4.6%, TEVA +4.1%, ASTC +3.3%, EBIX +3%,IMKTA +2.5%, LPX +2.2%, KOS +1.7%, HCP +1.3%, WLH +0.8%, AES +0.7%
M&A news: KKD +24.6% (to be acquired by JAB Beech for $21/share in cash, or ~$1.35 bln), DEPO +5.9% (NY Post discusses new hopes that Horizon Pharma (HZNP) could enter M&A talks with DEPO; also upgraded to Buy from Neutral at Mizuho), NSAM +5% (NorthStar Asset Mgmt followup to reports it is near a deal to be acquired by Colony Capital (CLNY) ), ARIA +3.9% (Incyte to acquire ARIAD's (ARIA) European operations), APOL +3.4% (shareholders approve $10/share cash acquisition by consortium of investors including Vistria Group, funds affiliated Apollo Global (APO) and Najafi Companies), INCY +1.1% (to acquire ARIAD's (ARIA) European operations & in-license Iclusig for $140 mln & tiered royalties, also reported earnings)
Other news: PTX +17% (cont momentum higher following last week's strength),CHK +6.1% (small rebounding following last week's 30%+ declines), CLLS +5.8% (files for mixed securities shelf offering), VRX +4.1% (reiterates 2016 first quarter guidance, expects to file its Form 10-Q for the quarter ended March 31, 2016 on or before June 10), DDD +3.1% (in symp with SSYS), MYL +2.3% (in sympathy with peer TEVA (- higher after earnings)), BZH +1.5% (director purchases 55,000 shares at ~$7.25/share), BUD +1.3% (still checking, likely surrounding expectations of completion of SABMiller merger)
Analyst comments: SNN +2.2% (upgraded to Buy from Hold at Jefferies), TSLA+1.4% (assumed with a Buy at Dougherty & Company; tgt $500)
Gapping down
In reaction to disappointing earnings/guidance: LC -26.3%, (also announced resignation of CEO, internal review regarding non-conforming sales), AU -7%,SN -6.1%, BID -4.7%, JD -2.9%, W -2.8%, MGIC -2.8%, TA -2%, IPI -2%, CMRX-2%, GTN -1.5%, QTWO -1.1%, CRNT -0.8%, GLP -0.6%
Select metals/mining stocks trading lower: SBGL -6.9%, HMY -6.3%, MT -4.8%,IAG -4.4%, RIO -4.2%, GFI -3.7%, BHP -3.1%, BBL -3%, GG -2.8%, GDX -2.7%,ABX -2.5%, NEM -2.4%, AKS -1.7%, INCY 1.1%
Other news: SPHS -26.8% (to raise ~$5 mln in an at-the-market offering),BIDU -5.7% (still checking, may be related to Shanghai weakness overnight, JD earnings), PSTI -4.9% (receives $3.3 mln grant from Israeli Ministry of Economy & Industry), CLF -0.8% (Casablanca Capital announces that it sold its stake in CLF as a result of 'winding down' its business following the passing of former chairman and co-founder, Donald Drapkin)
Analyst comments: VALE -3.8% (downgraded to Hold from Buy at Societe Generale), WDAY -1.8% (downgraded to Sell from Hold at Brean Capital)
In reaction to disappointing earnings/guidance: LC -26.3%, (also announced resignation of CEO, internal review regarding non-conforming sales), AU -7%,SN -6.1%, BID -4.7%, JD -2.9%, W -2.8%, MGIC -2.8%, TA -2%, IPI -2%, CMRX-2%, GTN -1.5%, QTWO -1.1%, CRNT -0.8%, GLP -0.6%
Select metals/mining stocks trading lower: SBGL -6.9%, HMY -6.3%, MT -4.8%,IAG -4.4%, RIO -4.2%, GFI -3.7%, BHP -3.1%, BBL -3%, GG -2.8%, GDX -2.7%,ABX -2.5%, NEM -2.4%, AKS -1.7%, INCY 1.1%
Other news: SPHS -26.8% (to raise ~$5 mln in an at-the-market offering),BIDU -5.7% (still checking, may be related to Shanghai weakness overnight, JD earnings), PSTI -4.9% (receives $3.3 mln grant from Israeli Ministry of Economy & Industry), CLF -0.8% (Casablanca Capital announces that it sold its stake in CLF as a result of 'winding down' its business following the passing of former chairman and co-founder, Donald Drapkin)
Analyst comments: VALE -3.8% (downgraded to Hold from Buy at Societe Generale), WDAY -1.8% (downgraded to Sell from Hold at Brean Capital)
Various EU officials and finance ministers comment ahead of Eurogroup meeting on Greece EU's Moscovici:
- An agreement is needed on Greece
- Contingency measures are important
--> -30% pre open
Lending Club reports EPS in-line, beats on revs; announces resignation of CEO following internal review
- Reports Q1 (Mar) earnings of $0.05 per share, in-line with the Capital IQ Consensus of $0.05; revenues rose 86.8% year/year to $151.3 mln vs the $147.9 mln Capital IQ Consensus.
- Operating revenue as a percent of originations, or revenue yield, was 5.50% in the first quarter, up from 4.95% in the same period last year. Lending Club today also reported that on May 6, 2016, the board of directors accepted the resignation of Renaud Laplanche as Chairman and CEO. His resignation followed an internal review of sales of $22 million in near-prime loans to a single investor, in contravention of the investor's express instructions as to a non-credit and non-pricing element, in March and April 2016.
- Scott Sanborn will continue in his role of President and will become acting CEO, assuming additional managerial responsibilities for the Company.
- Lending Club conducted a review, under the supervision of a sub-committee of the board of directors and with the assistance of independent outside counsel and other advisors, regarding non-conforming sales to a single, accredited institutional investor of $22 million of near-prime loans ($15 million in March and $7 million in April). The loans in question failed to conform to the investor's express instructions as to a non-credit and non-pricing element. Certain personnel apparently were aware that the sale did not meet the investor's criteria. In early April 2016, Lending Club repurchased these loans at par and subsequently resold them at par to another investor. As a result of the repurchase, as of March 31, 2016, these loans were recorded as secured borrowings on the Company's balance sheet and were also recorded at fair value. The financial impact of this reporting is that the Company was unable to recognize approximately $150,000 in revenue as of March 31, 2016, related to gains on sales of these loans.
- Given the events above, the Company took, and will continue to take, remediation steps to resolve the material weaknesses in internal control over financial reporting identified in the first quarter of 2016 -- one related to the sales of non-conforming loans and the other to the failure to disclose the personal investment interests -- and to restore the effectiveness of its disclosure controls and procedures. These remediation steps included the termination or resignation of three senior managers involved in the sales of the $22 million of near-prime loans.
- In light of the recent events, the Company believes it is prudent not to provide guidance at this time. The Company intends to provide guidance as soon as appropriate.
Early premarket gappers
Gapping up: CLLS +6.9%, DEPO +5.5%, BIND +5.3%, TSEM +4.6%, CHK +4.4%, ASTC +3.3%, TEVA +2.5%, AZN +2.2%, ON +2%, VRX +1.8%, ARMH +1.7%,KOS +1.7%, WLL +1.5%, NVS +1.5%, DB +1.5%, SHPG +1.4%, W +1.4%, BUD +1.3%, INCY +1.1%, SDRL +1%, RBS +1%, WLH +0.8%, CRNT +0.8%, AES+0.7%, MGIC +0.5%
Gapping down: LC -9.2%, BIDU -6.8%, AU -5.7%, HMY -4.9%, PSTI -4.3%, GFI -3.9%, VALE -3.8%, RIO -3.7%, MT -3.6%, IPI -2.9%, BHP -2.7%, GDX-2.5%, AMD -2.2%, BBL -2.1%, ABX -2%, GTN -1.5%, CLF -1.4%, CS -0.9%
Gapping down: LC -9.2%, BIDU -6.8%, AU -5.7%, HMY -4.9%, PSTI -4.3%, GFI -3.9%, VALE -3.8%, RIO -3.7%, MT -3.6%, IPI -2.9%, BHP -2.7%, GDX-2.5%, AMD -2.2%, BBL -2.1%, ABX -2%, GTN -1.5%, CLF -1.4%, CS -0.9%
Germany says talks on possible minimum carbon price are ongoing - Reuters News
09-MAY-2016 12:39:07
BERLIN, May 9 (Reuters) - Germany is discussing a possible minimum price to be set on Europe-wide avoidance of carbon dioxide emissions but talks are still ongoing, an Environment Ministry spokesman said on Monday.
"We are carrying out talks with other departments and these have not yet been completed," the spokesman told a regular government news conference, adding that Environment Minister Barbara Hendricks had not yet formed an opinion on the topic.
He said the ministry's priority was reducing the number of carbon emissions permits.