>>> Shell/BG deal could trigger more industry M&A

Shell/BG deal could trigger more industry M&A

Royal Dutch Shell's [NYSE:RDS.A] GBP 47.7bn (USD 6.65bn) bid to acquire BG Group [OTCMKTS:BRGYY] could trigger further M&A activity in the sector, reported The Globe and Mail on its website Wednesday (8 April) evening.

In a report focusing on the possibility of a consolidation wave on the heels of the Shell/BG development, Randy Mendy, chief operating officer at Edge Consulting Group, said that entities like Eni in Italy, BP in the UK and Total in France could become either merger partners or targets for takeover.

Les Stelmach, a portfolio manager working with Franklin Bissett Investment Management, said in the report that Irving, Texas-based ExxonMobil, which in 2012 bought Celtic Exploration in Western Canada for USD 2.6bn, could potentially pursue another "intermediate-sized" business. He added that such a move would be more likely than, for instance, a scenario where an entity like Canadian Natural Resources launches a bid to acquire Cenovus.

According to a report from the National Post's website Wednesday evening, Canadian Natural Resources and Suncor Energy happen to be two names that come up a lot when discussing possible buyers in the marketplace. The report, which focused on the potential for deals in Canada due to the Shell/BG transaction, added that Husky Energy has suggested that it is open to seeking out a "transformational" deal of its own. A section of the report citing Evaluate Energy noted that Shell, ExxonMobil, Petronas, BP, Chevron, Eni, PetroChina, Total, Statoil and Lukoil all have the financial wherewithal to pursue acquisitions. Evaluate Energy added in the report that Lukoil is the only company in the list that lacks operations within Canada.

Source The Globe and Mail, National Post

>>> Vivendi for Mediaset, talked about that few weeks ago...

Happy to talk about it other name i was mentioning was Lagardere...see Mediobanca comment below

Mediobanca sees Mediaset as possible target for Vivendi MS.MI SKYB.L VIV.PA - RTRS

09-Apr-2015 15:09 ** Shares in Italian TV company Mediaset MS.MI rise to their highest level since March 2011, up 2.6 pct and outperform European media stocks .SXMP which is up 1.2 pct ** Mediobanca Securities says Mediaset, controlled by former prime minister Silvio Berlusconi, could be "an interesting strategic option" for French media group Vivendi VIV.PA ** It says "a deal in paper, cash, or a mix of the two would be feasible", confirming its outperform rating and 4.74 euro price target based on fundamentals ** The Sky SKYB.L M&A deal "could translate into a need of the other names to build up an international alternative in the mid-term", it says

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: MG -6.3%, BBBY -3.2%, AA -2.6%, ATNY -2.4%, ZUMZ -1.2%, STLY -1%, COST -1%, RECN -0.7%

Select metals/mining stocks trading lower: HMY -3.1%, SLV -1.3%, BHP -1.2%, RIO -0.9%, MT -0.8%, AU -0.7%, GDX -0.5%

Other news: ZNGA -10.3% (announced that current CEO Don Mattrick will depart the Company and the Board effective April 8, 2015; Mark Pincus, Zynga's founder and chairman, will return to the role of Chief Executive Officer), EVRY -5.6% (announced it is moving forward with the restructuring plan and has filed voluntary Chapter 11 petitions), MEMP -5.1% (announced secondary public offering of ~4.66 mln common units representing limited partner interests owned by MRD Holdco LLC), QURE -2.5% (discloses update to risk factors statement with respect to the ongoing post-approval review of its Glybera program by the European Medicines Agency), GPT -2.4% (announced public offering of 7 mln shares of common stock), SHPG -2.2% (reports topline results from first of three placebo-controlled Phase 2 studies of SHP625 in children with alagille syndrome; did not meet the primary or secondary endpoints), RDS.A -1.9% (cont weakness following merger news with BG Group), SRC -1.1% (announced commencement of a public offering of 20 million shares of common stock), RGLS -0.8% (filed for ~3.27 mln share common stock offering by selling shareholders)

Analyst comments: CLF -4.4% (downgraded to Underperform from Market Perform at BMO Capital ), VALE -1.3% (downgraded to Underperform from Market Perform at BMO Capital ), TCK -1.1% (downgraded to Neutral from Outperform at Credit Suisse), EMC -0.8% (downgraded to Sector Perform at FBN Securities)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: APOG +7.4%, MSTX +6.6%, PIR +4.7%, WBA +3.4%, LB +1.4%, DDC +0.8%

M&A news: INFN +2% (announces offer to acquire Transmode)

Select China related names showing strength: MCP +13.5%, SHI +12.4%, FENG +8.2%, SFUN +6.2%, PTR +3.8%, LEJU +3.4%, WYNN +2.4%, HSBC +1.1%, .


Select oil/gas related names showing strength: RIG +1.4%, PBR +1.2%, STO +1%, TOT +0.8%

Other news: NVGN +44.3% (announced that studies conducted at The University of Queensland Diamantina Institute revealed that experimental drug, Anisina, killed melanoma cells irrespective of their mutational status), WPCS +35.1% (announced that its domestic operation was awarded $14.4 million in new contracts during the month of March 2015), MPET +21.8% (continued volatility in the name pre-mkt), FNJN +8.1% (announced thaty have signed a patent license agreement), AMCN +8.1% (granted wi-fi concession right on ordinary trains operated by Shanghai Railway Bureau), INO +7.9% (higher following CEO appearance on CNBC discussing $45 mln Ebola grant, also announces its Immunotherapy activates robust In Vivo T Cell responses in head and neck cancer patients), SLTD +7.8% (Solar3D's SUNworks division achieves record sales in March), MUX +5% (provides robbery update; maintains production guidance), TASR +4.1% (announces an order from the London Police Department for 178 AXON body cameras; the order was received and shipped in the first quarter of 2015), DBVT +3.5% (receives FDA Breakthrough Therapy Designation for Viaskin Peanut for the treatment of peanut allergy in children), CTP +2.8% (announced new debt financing amendment to credit facility; co intends to file Form 10-K on or before April 15, 2015), UAL +2.7% (reports March 2015 operational results), BAM +1.9% (announced three-for-two stock split and dividend increase of 6% per share), WG +1.5% (KKR Credit Advisors disclosed 16.6% active stake in 13D filing), BIDU +1.2% (Putian Healthcare Industry Chamber of Commerce has suspended its boycott of Baidu's advertising service, according to reports), BABA +1.1% (Alibaba and COST issue joint statement regarding false claims of distribution channels of Costco products sold in China)

Analyst comments: PLUG +2.4% (initiated with a Equal-Weight at Morgan Stanley; tgt $3), RIBT +2.2% (initiated with a Buy at Maxim Group; tgt $7), IHG +1.4% (upgraded to Hold from Underperform at Jefferies), CGIX +1.4% (initiated with a Buy at Janney), XENT +1.1% (initiated with a Buy at CRT Capital), DNKN +0.7% (added to U.S. Focus List at Credit Suisse), SWN +0.6% (upgraded to Buy at Johnson Rice
)

>>> HSBC under €1bil Bail by french prosecutor

On 8 April 2015, HSBC Holdings plc was informed that it has been placed under formal criminal investigation ('mise en examen') by the French magistrates in connection with the conduct of HSBC's Swiss Private Bank in 2006 and 2007 for alleged tax-related offenses. A EUR1bn bail was imposed.
HSBC Holdings plc believes the French magistrates' decision is without legal basis and the bail is unwarranted and excessive. It intends to appeal and will defend itself vigorously in any future proceedings.

>>> Constellation Brands beats by $0.09, reports revs in-line; guides FY16 EPS i

Constellation Brands beats by $0.09, reports revs in-line; guides FY16 EPS in-line; initiates quarterly dividend

Reports Q4 (Feb) earnings of $1.03 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.94, net sales +5% to $1.35 bln vs. $1.36 bln consensus, +6% ex-FX.
  • Net sales for the beer segment increased 11% primarily due to volume growth driven by continued strong consumer demand.
  • Wine and spirits net sales on a constant currency basis increased two%. This reflects favorable mix and distributor performance payments, partially offset by lower volume.
Co issues in-line guidance for FY16, sees EPS of $4.70-4.90 vs. $4.85 Capital IQ Consensus Estimate.
  • For fiscal 2016, the beer business is targeting mid-single digit volume growth, high-single digit net sales growth and 10 - 12% operating income growth.
  • For the wine and spirits business, the company expects net sales and operating income growth to be in the low-to-mid-single digit range.

>>> Initiates $0.31 Quarterly Dividend, Yield 1.0% 

Constellation's board has approved the initiation of a dividend program under which the company intends to pay a regular quarterly cash dividend to stockholders of its common stock. The initial quarterly cash dividend is $0.31 per share of Class A Common Stock and $0.28 per share of Class B Common Stock, payable on May 22, 2015 to stockholders of record as of the close of business on May 8, 2015.

CEO: "The decision by Constellation's board of directors to initiate a dividend represents a significant milestone in the company's history and demonstrates confidence in our growth prospects, free cash flow generation and financial outlook over the long-term."

CFO: "Both our beer and wine and spirits businesses have strong, consistent, cash generation capabilities and produce solid returns on invested capital. The beer business acquisition and our organic growth focus across our businesses have strengthened our financial profile and created significant capital allocation flexibility and shareholder return opportunities. We are initially targeting a dividend payout ratio of 25-30% of our comparable basis net income. Going forward, we will evaluate opportunities to increase our dividend based on the growth of our net income and free cash flow."

(Oppenheimer) Apple: Watch Apple change computing, again

Apple: Watch Apple change computing, again - Oppenheimer

Oppenheimer believes we are at the inflection point of the next stage of computing. In 2007, the iPhone was the catalyst to turn computing not only mobile but also personal. They believe the Apple Watch will expand on the intimacy of hardware. With increasingly accessible supply chain, capital, and consumers, and with a notification-based interface, the Watch is the missing link to connect IoT applications to consumers. They believe in the next five years, the Watch will revolutionize the way we interact with objects around us. They see it as a digital "concierge"—the primary interface between users and a myriad of connected hardware devices consumers will add to their lives, which ultimately constitute their unique IoT (Internet of Things) ecosystems; $155 tgt.