*IRAN PLANS TO BUY AIRBUS PLANES, ROUHANI SAYS: EUROPE1
Gapping down
In reaction to disappointing earnings/guidance: EVDY -27%, WPRT -15.5%, M -8.5%, MNGA -5.9%, JUNO -5.4%, XENE -4.5%, EXEL -3.6%, DOX -3%, FENG -2%, TLF -2%, MIDD -1.1%, BC -0.8%
Other news: HZNP -16.9% (responds to Express Scripts (ESRX) lawsuit and recent allegations; believe claims are without merit), INSY -11.5% (Express Scripts (ESRX) terminates relationship with specialty pharma Linden Care, sues Horizon Pharma (HZNP)), NEOS -9.6% (received Complete Response Letter from the FDA regarding the NDA for Cotempla XR-ODT), NBG -6.2% (cont weakness), MNGA -5.9% filed for $50 mln mixed securities shelf offering),), AFSI -5.4% (commences an underwritten public offering of 5 mln of its common stock), VWR -3.7% ( files for a 9 mln share offering of common stock by selling stockholder), STAY -1.8% (Extended Stay America and Extended Stay America commence 15 mln paired share offering on behalf of selling shareholders), PINC -1.8% (prices offering of 4,033,198 shares of common stock at $34.50 per share on behalf of certain selling member-owner stockholders), SMCI -1.7% (filed to delay Form 10-Q), LOXO -0.9% (announces a proposed offering of 2 mln shares of common stock)
Analyst comments: BCRX -2.9% (downgraded to Underperform at BofA/Merrill), ORCL -1.7% (downgraded to Equal-Weight from Overweight at Morgan Stanley), MET -1.5% (downgraded to Equal-Weight from Overweight at Morgan Stanley), EMC -0.6% (downgraded to Market Perform from Outperform at Wells Fargo
)
In reaction to disappointing earnings/guidance: EVDY -27%, WPRT -15.5%, M -8.5%, MNGA -5.9%, JUNO -5.4%, XENE -4.5%, EXEL -3.6%, DOX -3%, FENG -2%, TLF -2%, MIDD -1.1%, BC -0.8%
Other news: HZNP -16.9% (responds to Express Scripts (ESRX) lawsuit and recent allegations; believe claims are without merit), INSY -11.5% (Express Scripts (ESRX) terminates relationship with specialty pharma Linden Care, sues Horizon Pharma (HZNP)), NEOS -9.6% (received Complete Response Letter from the FDA regarding the NDA for Cotempla XR-ODT), NBG -6.2% (cont weakness), MNGA -5.9% filed for $50 mln mixed securities shelf offering),), AFSI -5.4% (commences an underwritten public offering of 5 mln of its common stock), VWR -3.7% ( files for a 9 mln share offering of common stock by selling stockholder), STAY -1.8% (Extended Stay America and Extended Stay America commence 15 mln paired share offering on behalf of selling shareholders), PINC -1.8% (prices offering of 4,033,198 shares of common stock at $34.50 per share on behalf of certain selling member-owner stockholders), SMCI -1.7% (filed to delay Form 10-Q), LOXO -0.9% (announces a proposed offering of 2 mln shares of common stock)
Analyst comments: BCRX -2.9% (downgraded to Underperform at BofA/Merrill), ORCL -1.7% (downgraded to Equal-Weight from Overweight at Morgan Stanley), MET -1.5% (downgraded to Equal-Weight from Overweight at Morgan Stanley), EMC -0.6% (downgraded to Market Perform from Outperform at Wells Fargo
)
Gapping up
In reaction to strong earnings/guidance: GURE +15.4%, ALRM +11.5%, HCKT +9.9%, OPXA +9.2%, (also announces 'supportive' preclinical study results for its Neuromyelitis Optica program), OPWR +5.9%, LITE +5.4%, (also files to delay Form 10-Q ), ARNA +5.3%, JNP +4.3%, UQM +3.4%, WGBS +2.5%, TSEM +2%, LXFT +1.9%, HTHT +1.5%, JOBS +1.5%, GIB +1.4%, OXGN+0.9%
M&A news: MEG +3.3% (Media General is near a decision to support Nexstar's (NXST) pending bid to acquire MEG, according to Bloomberg)
Select Brazil related names showing strength: VIV +3.7%, TSU +3.4%, SBS +3%, ABEV +2.6%, VALE +1.7%, PBR +1.4%
Other news: ANFI +30% (announces the completion of the Independent Third Party Forensic Investigation, BDO has independently concluded that these allegations are 'unsubstantiated and/or unfounded' ), AMDA +20% (submitted 24-month clinical data outcomes from its CASCADE study to the FDA), MNKD +8.3% (rebounding following yesterday's declines), JCP +6.7% (announces Q3 SSS +6.4%, and that gross margins and earnings exceeded their expectationsreaches agreement to settle a false advertising class action lawsuit in California), LITE +5.4% (filed to delay Form 10-Q in connection with separation from JDS Uniphase), JMEI +3% (may attributed to Singles Day in China), AVXL +2.9% (confirms the positive safety and cognitive efficacy data from its Phase 2a Alzheimer's trial of ANAVEX 2-73; no change to science, data or fundamentals of the company), RDY +2.9% (rebounding pre-mkt after yday's declines), EDU +2.7% (may attributed to Singles Day in China), SUNE +2.3% (rebounding pre-mkt after yday's declines), QIHU +1.8% (still checking), DEO +1.4% (may be in sympathy with M&A deals in spirit space),NGG +1.3% (appoints Deloitte as its new auditor, replacing PricewaterhouseCoopers), BABA +1.2% (reports that $10 bln of GMV settled through Alipay on 'Singles Day'; exceeds 2014 levels after 14 hrs), WX +1% (WuXi PharmaTech and Eli Lilly (LLY) announce strategic collaboration to develop, manufacture and commercialize a novel small molecule in China)
Analyst comments: AEGR +0.6% (upgraded to Neutral from Underperform at BofA/Merrill), AMZN +0.6% (target raised to $800 from $750 at Morgan Stanley
)
In reaction to strong earnings/guidance: GURE +15.4%, ALRM +11.5%, HCKT +9.9%, OPXA +9.2%, (also announces 'supportive' preclinical study results for its Neuromyelitis Optica program), OPWR +5.9%, LITE +5.4%, (also files to delay Form 10-Q ), ARNA +5.3%, JNP +4.3%, UQM +3.4%, WGBS +2.5%, TSEM +2%, LXFT +1.9%, HTHT +1.5%, JOBS +1.5%, GIB +1.4%, OXGN+0.9%
M&A news: MEG +3.3% (Media General is near a decision to support Nexstar's (NXST) pending bid to acquire MEG, according to Bloomberg)
Select Brazil related names showing strength: VIV +3.7%, TSU +3.4%, SBS +3%, ABEV +2.6%, VALE +1.7%, PBR +1.4%
Other news: ANFI +30% (announces the completion of the Independent Third Party Forensic Investigation, BDO has independently concluded that these allegations are 'unsubstantiated and/or unfounded' ), AMDA +20% (submitted 24-month clinical data outcomes from its CASCADE study to the FDA), MNKD +8.3% (rebounding following yesterday's declines), JCP +6.7% (announces Q3 SSS +6.4%, and that gross margins and earnings exceeded their expectationsreaches agreement to settle a false advertising class action lawsuit in California), LITE +5.4% (filed to delay Form 10-Q in connection with separation from JDS Uniphase), JMEI +3% (may attributed to Singles Day in China), AVXL +2.9% (confirms the positive safety and cognitive efficacy data from its Phase 2a Alzheimer's trial of ANAVEX 2-73; no change to science, data or fundamentals of the company), RDY +2.9% (rebounding pre-mkt after yday's declines), EDU +2.7% (may attributed to Singles Day in China), SUNE +2.3% (rebounding pre-mkt after yday's declines), QIHU +1.8% (still checking), DEO +1.4% (may be in sympathy with M&A deals in spirit space),NGG +1.3% (appoints Deloitte as its new auditor, replacing PricewaterhouseCoopers), BABA +1.2% (reports that $10 bln of GMV settled through Alipay on 'Singles Day'; exceeds 2014 levels after 14 hrs), WX +1% (WuXi PharmaTech and Eli Lilly (LLY) announce strategic collaboration to develop, manufacture and commercialize a novel small molecule in China)
Analyst comments: AEGR +0.6% (upgraded to Neutral from Underperform at BofA/Merrill), AMZN +0.6% (target raised to $800 from $750 at Morgan Stanley
)
Morgan Stanley Cuts ORCL to Equal Weight from Overweight, price target: $45
- firm sees limited upside without increased clarity on key catalysts
- Firm notes that strong cloud bookings alone failed to prove the catalyst firm hoped, and indicators in the databse business have been mixed
Price Target raised to $800 from $750 at Morgan Stanley, reiterates Overweight rating
- on growing AWS opportunity, as firm sees AWS driving ~60% of AMZN forward profitability
- Firm sees AMZN at $800/ share even if core N.America retail margins reach only 8% (from ~5% in '15e) and if long-term International retail margins reach 2$ (from 0%)
Macy's beats by $0.03, misses on revs; guides Q4 below consensus (lowers FY16 guidance); co will not pursue a REIT, looking to monetize real estate in other ways; inveting in digital; partners with Luxottica
- Reports Q3 (Oct) earnings of $0.56 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.53; revenues fell 5.2% year/year to $5.87 bln vs the $6.1 bln Capital IQ Consensus.
- Comparable sales on an owned plus licensed basis were down by 3.6 percent in the third quarter. On an owned basis, third quarter comparable sales declined by 3.9 percent.
- Co issues downside guidance for Q4, sees EPS of $2.54-2.64 vs. $2.82 Capital IQ Consensus, with comps down 2-3%..
- Lowers FY16 EPS to $4.20-4.30 from $4.70-4.80; lowers comps to down 1.8-2.2% from flat.
- The board of directors has concluded that a REIT does not offer sufficient upside potential for value creation.
- Co has engaged Tishman Speyer in an expanded relationship to advise and support the company's senior management team in identifying and advancing potential store redevelopment projects nationwide.
- Co has begun a process to explore joint ventures or other deal structures with third parties to redevelop Macy's flagship real estate assets in Manhattan (Herald Square), San Francisco (Union Square), Chicago (State Street) and Minneapolis (downtown Nicollet Mall) in a manner that maintains a robust Macy's retail store presence while also bringing alternative use into those buildings; this exploration could expand to include other assets, including mall-based properties, to the extent opportunities are available.
- Co will continue to pursue selected real estate dispositions and monetize assets in instances where the business is simultaneously enhanced or where the value of real estate significantly outweighs the value of the retail business
- Luxottica (LUX) bring LensCrafters optical retail shops to as many as 500 Macy's (M) department stores in the U.S. over the next three year.
- Accelerating investments in Macy's, Bloomingdale's and Bluemercury's digital and mobile capabilities to mirror the shift to increased online shopping, where the company continues to see double-digit, year-over-year sales increases.
- Department stores: JWN, JCP, KSS, BONT; retail: XRT.
Macy’s and Luxottica Group Sign Exclusive Agreement To Open LensCrafters Licensed Departments In As Many As 500 Macy’s
AB InBev to give restricted share owners up to three board seats - CEO
AB InBev [EBR:ABI] and SabMiller [LON:SAB] will give owners of restricted shares the possibility of electing up to three directors to the board once their combination is completed, AB InBev CEO Carlos Brito said during the conference call following the deal announcement.
As the board will comprise of up to 15 members, AB InBev will be entitled to appoint up to nine members with the remaining three being independent, Brito explained.
Today, 11 November, AB InBev reached an agreement to acquire SABMiller for approximately GBP 71bn. The Belgian brewer’s offer comprises a partial share alternative accounting for approximately 41.6% of the total consideration. SABMiller largest shareholders Altria and BEVCO have submitted irrevocable undertakings to vote in favour of the offer and accept to be paid in shares.
The new company will not be listed in London, the CEO confirmed. Its primary listing will be in Brussels and secondary listings are envisioned in Johannesburg and Mexico City, while American Depositary Shares will be listed on the NYSE.
On the South African listing, Brito said it could occur even before the deal completion and certainly “as soon as reasonably practicable”. The new company will retain its regional headquarters in Johannesburg to be in a position to leverage on Africa’s growth opportunities, he said. The top manager did not give a clear indication on whether SABMiller’s London headquarters will be maintained in its current form.
AB InBev and SABMiller see potential to add revenue and cash flow synergies on top of the USD 1.4bn cost synergies arising from their combination, Brito noted.
During the conference call, Brito explained that of the expected USD 1.4bn of cost synergies, 20% should come from procurement and engineering savings, 25% from breweries and distribution efficiency gains, 20% from best practice sharing and 35% from corporate headquarters and overlapping regional headquarters.
Brito noted that this amount will add to the USD 1.050bn cost saving target announced by SABMiller on 9 October 2015, while the revenues and cash flow synergies potential will be clearer going forward.
The two companies are mostly complimentary and committed to take a proactive approach on regulatory issues where they may occur, Brito said, mentioning China and South Africa as examples.
The CEO stressed that today’s announcement on SABMiller’s sale of its 58% stake in Molson Coors (NYSE:TAP) provides an indication on the companies’ level of commitment on this front, in light of anticipated antitrust concerns in US. He declined to say whether the decision to sell the asset came on the back of discussions with US authorities.