>>> US Early premarket gappers

Early premarket gappers
Gapping up: NSPH +51.7%, QURE +20.7%, ZUMZ +15.4%, MGCD +13.3%, DVAX +10%, HMY +7.5%, MG +7.2%, GBX +5.4%, EZCH +2.9%, SUNE +2.9%, ZIXI +2.7%, DNN +2.7%, CCO +2.5%, ABX +1.6%, M +1.5%, PAAS +1.3%, PLCE +1.3%, NEM +1.2%, GOLD +1.2%, GFI +1%, AEM +0.9%, GDX +0.8%, QUAD +0.8%

Gapping down: TLOG -67.2%, CLBS -38.7%, EPZM -21.3%, GALE -20.2%, GALE -20.2%, FINL -16.2%, ARDX -15.1%, ARDX -15.1%, AKBA -9.6%, WLL -9%, SSL -9%, JKS -7.9%, ATML -7%, VAlE -6.5%, SDRL -6%, RECN -6%, BHP -5.7%, BBL -5.6%, WBAI -5.5%, PSDV -5.3%, BP -5.3%, CSIQ -5.3%, CMCM -5.3%, STO -5.2%, FCX -5.2%, AA -5%, RDS.A -4.8%, GME -4.8%, SOHU -4.7%, BABA-4.7%, MT -4.6%, RIO -4.5%, X -4.4%, SFUN -4.4%, JD -4.4%, PBR -4.3%, SAGE -4.2%, JMEI -4.2%, BITA -4.2%, BIDU -4.1%, KMI -3.9%, YY -3.9%, CEMP -3.8%, RIG -3.8%, CMG -3.6%, DANG -3.6%, IHG -3.5%, SLB -3.2%, COST -2.5%, ERI -2.3%, WBA -2%, UA -1.9%, KBH -1.6%, LMT -1.4%

>>> Walgreens Boot Alliance beats by $0.06, reports revs in-line; raises low end

Walgreens Boot Alliance beats by $0.06, reports revs in-line; raises low end of FY16 EPS, in-line; RAD acquisition progressing as planned

  • Reports Q1 (Nov) earnings of $1.03 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.97; revenues rose 48.5% year/year to $29.03 bln vs the $29.24 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $4.30-4.55 (from $4.25-4.55), excluding non-recurring items, vs. $4.43 Capital IQ Consensus Estimate.
  • Retail US Pharmacy: Sales in comparable stores increased 5.8% compared with the same quarter a year ago. Pharmacy sales, which accounted for 68.4% of division total sales in the quarter, increased 6.7% compared with the year-ago quarter, while comparable pharmacy sales increased 9.3%.
  • Retail Pharmacy Int'l: On a pro forma constant currency basis, comparable store sales in the first quarter increased 2.2% compared with the same period a year ago, with particularly strong growth in Mexico and the Republic of Ireland. Comparable pharmacy sales increased 3.8% in the first quarter compared with last year's first quarter, driven by good growth in dispensing and pharmacy services in the UK and Mexico.
  • The company continues to expect to reach at least $1.0 billion in combined net synergies in fiscal 2016 relating to the strategic combination with Alliance Boots.
  • Walgreens Boots Alliance's proposed acquisition of Rite Aid (RAD) is progressing as planned. Rite Aid has scheduled a special meeting of its stockholders for 4 February 2016 to, among other things, consider and vote on a proposal to approve the Agreement and Plan of Merger related to the proposed acquisition. Walgreens Boots Alliance continues to expect the transaction to close in 2H16.

>>> Fast Retailing reports Q1 results; lowers FY16 outlook

Fast Retailing reports Q1 results; lowers FY16 outlook
Reports Q1 (Nov) net income of JPY48.0 bln; revs increased 8.5% YoY to JPY520.3 bln.
  • Fall Winter ranges got off to strong start, boosting same-store sales in September and October. However, unexpected warm weather in November lowered demand for winter items, pushing overall revenue sharply lower.
  • On the profit side, heavy discounting in November squeezed gross margins and the shortfall in sales swelled the SG&A ratio. Operating profit declined 12.4% year on year.
  • Fiscal 2016 consolidated estimates: Downward revisions
    • Consolidated revenue: JPY1.800 trillion (+7.0% year on year), operating profit: JPY180.0 billion (+9.4%), profit attributable to owners of the parent: JPY110.0 billion (-0.0%).
    • Basic earnings per share: JPY1,079.01.
    • These include downward revisions as follows: JPY100.0 billion for revenue, JPY20.0 billion for operating profit, and JPY5.0 billion for profit attributable to owners of the parent. Scheduled FY2016 annual dividend: JPY370 per share, unchanged.

(BFW) Altice Hires Former French Investment Head Turrini: Le Monde

THE WORLD ECONOMY | 01.07.2016 at 11:41 • Updated 01.07.2016 at 11:42 | By Sarah Belouezzane
http://s1.lemde.fr/image/2016/01/07/534x0/4843258_6_36fd_regis-turrini-alors-patron-de-l-ape-et_682bfed53d5ae274f1cb5735f356bcd3.jpg


The transition period lasted only six months. Reportedly, Turrini, former head of the Agency for state participation (EPA), will join Altice, the parent company of the operator SFR and holding patrick drahi the telecom tycoon. Mr. Turrini should take office from the second week of January.
Contrary to appearances, the former head of mergers and acquisitions at Vivendi does not reinforces teams identify potential prey from Altice. This function is provided directly by Mr. Drahi, who spent nearly 50 billion euros in the last two years the redemption of various operators.
No, Mr. Turrini just manage regulatory matters and relations with the governments of countries where the Group is present. It will also serve this function lobbyist at SFR, the second largest French operator, bought by Mr Drahi in 2014. Moreover, the office of Mr. Turrini will be located in Paris, while the remaining teams Altice is installed Swiss. Moving to the other side of the Alps have, indeed, made spot for a former high state official.
Bad casting
If Mr. Drahi wished to recruit Mr Turrini, is for its acquired skills and the links established during his time at the head of the EPA, the body that manages the share of the state in 77 companies (EDF, Thales Renault, PSA ...), explains one expert subject. The fact that the competitor Orange is part of the equity portfolio managed by Mr. Turrini can not hurt either.

Appointed by Arnaud Montebourg, the former Minister of Economy, Mr. Turrini is however not stay more than a year at the head of the EPA: differences with Emmanuel Macron, the successor of Mr. Montebourg at Bercy including the EDF-Areva record, had led the two men to separate by mutual agreement in late July 2015. But the protagonists have very quickly said no disagreement on the substance between old énarques, just a matter bad casting: "There was nothing special, it was a mutual decision, everyone agreed that Mr. Turrini did not have the right profile", do we explained to Bercy the time.
This agreement between Mr. Turrini and Mr. Macron could be useful for Mr Drahi group, especially with regard SFR. The minister of the economy would still not digested the conditions in which Michel Combes, Chairman of the operator since August 2015, left Alcatel: the former boss of the equipment had demanded 14 million euros allowances, after only two years of presidency, a social plan and finally the sale of a tricolor flagship Nokia Finnish competitor. After intervention Bercy, M. Combes had received "only" 7 million euros.

En savoir plus sur http://www.lemonde.fr/economie/article/2016/01/07/regis-turrini-l-ancien-patron-de-l-ape-rejoint-altice_4843259_3234.html#WEcezmW4x0KJ2xLX.99

>>> Fast Retailing reports Q1 results; lowers FY16 outlook

Fast Retailing reports Q1 results; lowers FY16 outlook
Reports Q1 (Nov) net income of JPY48.0 bln; revs increased 8.5% YoY to JPY520.3 bln.
  • Fall Winter ranges got off to strong start, boosting same-store sales in September and October. However, unexpected warm weather in November lowered demand for winter items, pushing overall revenue sharply lower.
  • On the profit side, heavy discounting in November squeezed gross margins and the shortfall in sales swelled the SG&A ratio. Operating profit declined 12.4% year on year.
  • Fiscal 2016 consolidated estimates: Downward revisions
    • Consolidated revenue: JPY1.800 trillion (+7.0% year on year), operating profit: JPY180.0 billion (+9.4%), profit attributable to owners of the parent: JPY110.0 billion (-0.0%).
    • Basic earnings per share: JPY1,079.01.
    • These include downward revisions as follows: JPY100.0 billion for revenue, JPY20.0 billion for operating profit, and JPY5.0 billion for profit attributable to owners of the parent. Scheduled FY2016 annual dividend: JPY370 per share, unchanged.

>>> a Year ago SX5E @ 3,046 with Eur$1.1850 WTI $56.15 SPX 2050 SHCOMP 3378

>>> a Year ago SX5E @ 3,046 with Eur$1.1850 WTI $56.15 SPX 2050 SHCOMP 3378

--> European Macro look better for 2016 than for 2015 (helped buy USD & Oil)

--> China impact not as that big as since Aug. lot of people a much less exposure to China, mkt move are very local and very technicals

--> Saudi/Iran tensions are not a real factor to push mkt lower

--> Still some concerns on US Credit Market but nobody is talking of that on the last few days

--> I agree that US Market look stretch where is trading but will see decent buyer coming in below 1,900 levels, still some decent share buyback to come in 2016 ($615bil vs $560bil in 2015)

--> Investors looking to support on SX5E ~2,990 levels, we could see 2,870 as ultimate support as bottom of lower trend - see below

>>> EuroStoxx- Quick Reminder of last year debuts - Lost 6% on first few day



From: LCHEKROUN@makor-cm.com At: Jan 7 2016 08:51:06
To: LAURENT CHEKROUN (MAKOR SECURITIES LO)
Subject: Fwd:>>> EuroStoxx- Quick Reminder on last year debuts - Lost 6% on first few days before Bouncing - see quick chart



SHCOMP Last year lost 8% on the same period and didn’t really bounce back after
Traded in a narrow range for the first 2 months…

There are more proofs of better numbers in Europe…difficult to catch a falling knife but important to keep in mind that many measures have been taken in Europe to be less dependant of the chinese econony, all numbers on Factory orders in Europe have been good so we can think that this decorrelation is starting to work for some countries ( Germany & Italy)…ECB is still in a very accommodative mood…

Hard to find lower point but last year levels are not so bad indicators…

(JPM) French Telcos : The inescapable market repair - with or without

Since Iliad’s mobile launch four years ago, French Telcos have shown little
pricing discipline, with a systematic prioritization of volumes over ARPU
protection. Mobile price points collapsed, broadband entered an interminable
promotional period, and fibre was given away with no premium. In this report,
we make the point that FTTH is likely to change the game dramatically. The
capex burden is too heavy for the industry, with or without consolidation;
pricing inflation is required to protect value. We are net buyers of French
Telcos with an Overweight rating on Num-SFR and Iliad while we are Neutral
on Orange and Bouygues. We see two main reasons to be positive: i) the
capex risk is flagged while the prospect of pricing restoration is not, and
ii) consolidation is a cheap option.

* FTTH capex is significant and will persist for many years. Our FTTH
capex model suggests that the fibre bill should top €17bn to cover very
dense and medium dense areas. Over the next 10 years, the industry is likely
to invest €1.5bn pa on average in FTTH, which should absorb 3-4% of the
industry annual revenues and c.15% of OpFCF.

* Pricing inflation is required. Altnets’ improved margins in FTTH are often
seen as a barrier to pricing inflation. This postulate overlooks the capex side
of the equation. Our bottom-up cash cost model suggests that altnets’
margins expand by 14-26ppt when they co-invest in fibre, but contract by
13ppt if they rent fibre access. However, normalized OpFCF margins are
improved only in very dense areas (18% of lines) AND only when operators
have enough scale. In the vast majority of cases, alternative operators’ cash
generation deteriorates in the fibre world. The ULL avoidance is not enough
to fund FTTH investments. Getting the pricing model right is paramount.

* The colossal FTTH bill increases the consolidation rationale but given
the history of the French M&A situation, it is hard to predict the outcome of
the ongoing discussions. That said, we believe Mr Bouygues is likely to
regard Orange as a more suitable buyer. A deal with the incumbent provides
an honorable exit for Bouygues on jobs protection, fixes the use of cash
issue and offers continued exposure to telecoms with an equity-based
transaction. We discuss in this report Orange’s crucial role as well as key
anti-trust considerations post the failed Danish transaction. Visibility on the
regulatory prospects is limited but securing approval is possible.

* Stock views and Dec-16 TPs: We are Overweight Num-SFR with a €50 TP
(39% upside potential), and Iliad with a €265 TP (19%), while we are
Neutral on Orange with a €18 TP (16%, rating reinstated, previously Not
Rated) and Neutral on Bouygues with a €36 TP (3% downside).

>>> Home Retail Group could see rival bid from Clayton Dubilier & Rice and Terry

Home Retail Group could see rival bid from Clayton Dubilier & Rice and Terry Leahy

Former Tesco CEO Terry Leahy and the buyout group Clayton Dubilier & Rice (CDR) are thinking about making a counter bid for Home Retail Group [LON:HOME], The Times reported.

The newspaper cited market sources who said Leahy and CDR would probably be among several private equity firms considering making offers for HRG. The article cited Apax Partners and Apollo Global Management as two possible private equity bidders, without attributing the claim to a source.

The item said it is understood that Leahy, a consultant with CDR, worked on whether a deal would be financially feasible late in 2015.

It remains to be seen whether CDR and Leahy will make an offer for HRG, which rebuffed an approach in November last year from the UK-based supermarket group J Sainsbury [LON:SBRY]. Sainsbury’s disclosed the bid approach this week.

One retail CEO cited by the report said rival retailers and other investors could be considering options. HRG has significant cash and a credit book valued at about GBP 579m that could easily be securitised, the CEO said, adding that the possible securitisation would make funding a takeover relatively easy.

One private equity investor quoted in the report said, however, that he thought Sainsbury’s is in the pole position to acquire HRG. The investor did not think HRG’s numbers make sense for buyout groups, adding that his firm considered a deal in January but found it difficult to make a financial case for an offer. HRG’s Argos unit would need to demonstrate much better sales growth to give the returns that his firm would expect, the investor added.

Leahy and CDR refused to comment, the item said.

The Times

>>> Sainsbury shareholder QIA not happy about bid for HRG, could block deal

Sainsbury shareholder QIA not happy about bid for HRG, could block deal 

J Sainsbury [LON:SBRY] shareholder the Qatar Investment Authority (QIA) is unhappy with the UK-based supermarket group’s proposed offer for Home Retail Group [LON:HOME], The Guardian reported.

The newspaper cited unspecified sources who said the QIA was not pleased at the limited consultation regarding the offer and added the QIA’s relationship with Sainsbury’s since former CEO Justin King departed in 2014 has been less cordial.

It is understood that the QIA, holder of a 25.1% interest in Sainsbury’s, is not keen to see its stake in the group diluted and does not want to invest in a cash call to help finance the takeover, the report said. However, the QIA could yet support a deal if its concerns regarding dilution are addressed, the item added.

If Sainsbury’s offer is valued at more than 25% of its market capitalisation, shareholder approval would be required, the article continued. The QIA would, therefore, be strongly-placed to block the HRG deal.

The Sainsbury family, which holds a stake of about 3%, is believed to be supportive of the supermarket group’s management, according to the report.

Sainsbury’s disclosed this week that it had approached HRG regarding a possible takeover bid, but added that HRG had rejected the approach.

Home Retail Group’s market capitalisation stood at GBP 1.07bn (EUR 1.44bn) at the close of trading in London yesterday, 6 January.

The Guardian