>>> Bill Ackman: Zoetis Shenanigans - Just Release

 

http://activiststocks.com/blog/zoetis-ackman


Bill Ackman: Zoetis Shenanigans

August 3, 2015 Activist Stocks

Sign up for our free daily newsletter to stay in the activist investing know. You know Zoetis as the world’s largest producer of medicines for animals, but it’s also a plaything for Bill Ackman’s Pershing Square.

The hedge fund owns about 8.5% of Zoetis and some 5% in its potential buyer Valeant Pharma. Ackman has a board seat at Zoetis, received in February, and also tried previously partnering with Valeant in its bid to buy Allergen.

Valeant has been rumored to have made a preliminary offer to Zoetis for a buyout. If the issue wasn’t clear - Ackman owns a stake in a company that might buy another major position of his. A corporate governance nightmare. But Ackman is used to toeing the line.

Ackman and his Pershing Square teamed up with Valeant, the “Pharma serial acquirer” to push for a buyout of Allergan, the maker of anti-ageing treatment Botox. The fund bought almost 10% of Allergan to become its largest shareholder.

The seemingly shady alliance between the two was termed as “symbiotic activism” by Wachtell Lipton. Ackman netted around $2.6 billion on the Actavis buyout of Allergan, on what is best described as insider trading in all its complex beauty. But is it really all that bad if he used material nonpublic information? Money certainly talks, helping shine a light on the fact that legalities and ethics don’t really matter if shareholders are making money.

Now in the present case of Zoetis and Valeant, Ackman has stakes in both the buyer and the seller, where he can theoretically leverage his board seat in Zoetis to push for a deal. Or put pressure on Valeant CEO Mike Pearson to do a deal.

In something similar to the Allergan deal, Pershing will be privy to confidential market-moving information thanks to its director position at Zoetis. Granted, Zoetis has a staggered board and adopted a poison pill.

In any case, I’m not here to bash Ackman, I’m just noting that Valeant might not be the obvious buyer for Zoetis that everyone thinks it is. Zoetis could well end up going to Bayer, where it’s rejected a previous bid and the hemming and hawing of Valeant buying Zoetis could be Ackman’s way of dusting up more interest for Zoetis from a different buyer. Don't forget - freedaily newsletter here.

<img src="http://static1.squarespace.com/static/55357f54e4b0611f4045827d/t/55be9d90e4b05cc8300732d1/1438555537510/" />

 

>>> Clorox beats by $0.07, beats on revs; guides FY16 EPS below consensus, revs

Clorox beats by $0.07, beats on revs; guides FY16 EPS below consensus, revs below consensus

Reports Q4 (Jun) earnings of $1.44 per share, $0.07 better than the Capital IQ Consensus Estimate of $1.37; revenues rose 4.0% year/year to $1.56 bln vs the $1.53 bln consensus. Fourth-quarter diluted EPS results reflect the benefits of higher sales and gross margin expansion. In addition, the sale of real estate assets by a low-income housing partnership contributed a one-time benefit of 6 cents to diluted EPS. These factors were partially offset by increased selling and administrative expenses, primarily from higher performance-based incentive costs as a result of strong fiscal-year financial performance; compared to the prior year which reflected lower performance-based incentive costs when the company's results fell below financial targets. In addition to the impact on selling and administrative expenses, the impact of incentive costs is reflected in cost of goods sold and research and development on the income statement. Increased investments in total demand-building programs also reduced fourth-quarter diluted EPS.
  • Co issues downside guidance for FY16, sees EPS of $4.63-4.83 vs. $4.84 Capital IQ Consensus Estimate; sees FY16 revs flat to 1% higher (3% to 4% growth, currency neutral), which equates to roughly $5.655-5.712 bln vs. $5.74 bln Capital IQ Consensus Estimate.

(BFW) Mobileye in ‘Pole Position’ to Be VW Supplier: Morgan Stanley

Mobileye in ‘Pole Position’ to Be VW Supplier: Morgan Stanley
2015-08-03 12:31:04.708 GMT


By Beth Mellor
(Bloomberg) -- Mobileye, Delphi Automotive in “pole
position” to become Volkswagen’s core advanced driver
assistance systems (ADAS) suppliers, Morgan Stanley analyst Ravi
Shanker (rates MBLY overweight) says.

* Notes MBLY was recently added to VW list of suppliers as
part of Future Automotive Supply Tracks (FAST) initiative
and MBLY, DLPH are the only ADAS suppliers on list
* May pave the way for MBLY to become VW’s core vision systems
supplier, which would be key catalyst for stock
* NOTE: MBLY reports 2Q results Aug. 6
* NOTE: MBLY 12 buy ratings, 2 holds, 0 sells, avg. PT ~$67:
Bloomberg data


For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Beth Mellor in New York at +1-212-617-3078 or
bmellor@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Beth Mellor

>>> US Early premarket gappers

Early premarket gappers
Gapping up: LXRX +17.8%, OSUR +13%, PERI +3.9%, FIT +3.2%, UN +1.5%, GPRO +1.3%, RIG +1.2%, NICE +0.9%, DO +0.7%, HSBC +0.6%

Gapping down: ABGB -23.5%, CPGX -7.5%, GFI -6.5%, NBG -5%, ITEK -4.9%, L -2.3%, MT -1.7%, SSL -1.6%, NOK -1.4%, GOLD -1.3%, SDRL -1.2%, VALE -1.1%, RIO -1%, OAS -1%, FCX -0.9%

>>> Noble Energy beats by $0.18, misses on revs; co raises 2015 sales volumes gu

Noble Energy beats by $0.18, misses on revs; co raises 2015 sales volumes guidance

Reports Q2 (Jun) earnings of $0.26 per share, $0.18 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 47.2% year/year to $730 mln vs the $952.75 mln consensus.
  • Total organic capital spend in 2015 remains unchanged at $2.9 bln for legacy Noble Energy assets plus $165 mln incremental capex allocated to the Eagle Ford/Delaware assets (post the closing of the transaction).
  • Full year 2015 Noble Energy sales volumes, prior to the inclusion of Rosetta assets, have been increased to between 305-320 MBoe/d, reflecting strong confidence in underlying performance and development execution for the second half of the year, up from 300-315 MBoe/d.
  • Third quarter sales volumes are anticipated to be 345 to 365 MBoe/d, which includes the Eagle Ford and Delaware assets for the period of July 20, 2015 to September 30, 2015.
  • Fourth quarter 2015 sales volumes are expected to increase to a range of 375 to 400 MBoe/d.
  • "Looking forward, our production is ramping through the remainder of the year, while capital continues to trend lower each quarter. Production increases are driven from our onshore assets and major project startups in the Gulf of Mexico. In addition, we have two material offshore exploration wells currently drilling, one in the Falkland Islands and one in Cameroon, which provide substantial new resource potential. Our operational performance and financial strength will continue to deliver differential results for Noble Energy."

>>> Tyson Foods misses by $0.11, misses on revs; guides FY15 EPS below consensus

Tyson Foods misses by $0.11, misses on revs; guides FY15 EPS below consensus, revs in-line

Reports Q3 (Jun) earnings of $0.80 per share, $0.11 worse than the Capital IQ Consensus Estimate of $0.91; revenues rose 4.0% year/year to $10.07 bln vs the $10.32 bln consensus.

Co issues mixed guidance for FY15, sees EPS of $3.10-3.20 (Prior $3.30-3.40) vs. $3.43 Capital IQ Consensus Estimate; sees FY15 revs of Approx $41 bln vs. $41.79 bln Capital IQ Consensus Estimate.
  • "We reduced our total net debt $688 million during the third quarter. Because we expect to be ahead of schedule on reaching leverage ratio goals, and we see great value in our shares, we plan to start buying back stock in the fourth quarter".
  • In fiscal 2016, we expect domestic protein production (chicken, beef, pork and turkey) to increase approximately 3% from fiscal 2015 levels. Grain supplies are expected to decrease in fiscal 2016, which should result in higher input costs as well as increased costs for cattle and hog producers.

>>> *IRAQI KURDS TO ALLOCATE REV. FROM OIL SALES TO IOCS FROM SEPT.

*IRAQI KURDS TO ALLOCATE REV. FROM OIL SALES TO IOCS FROM SEPT.
*IRAQI KURDS TO ALLOCATE ON MONTHLY BASIS REV. FROM OIL SALES
*IRAQI KURDS EXPECTS OIL SALES TO RISE IN 2016
*KRG ENVISAGES MAKING ADDITIONAL REV. AVAILABLE TO IOCS IN 2016
*KRG'S NATURAL RESOURCES MINISTRY COMMENTS ON ITS WEBSITE

--> All names related to Kurdistan & Irak are trading Higher DNO, GENL,...