>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: BRDR -21.6%, SALE -21.5%, (also announces CFO transition), LF -13.4%, HLF -13.3%, S -12.3%, CHGG -9.4%, KORS -7.2%, DISH -6.9%, REGN -6.9%, GDP -5.4%, AYR -4.8%, PQ -4.5%, ACHN -3.9%, SAJA -3.5%, RRST -3.5%, VSI -3.4%, CKP -3.2%, ANV -2.9%, SD -2.9%, LCI -2.5%, BEP -2%, EGAN -1.9%, SC -1.8%, CRK -1.7%, CYH -1.4%, BXE -1.3%, BNS -0.9%, NOR -0.7%

Select metals/mining stocks trading lower: EOG -4.1%, AU -2.8%, MT -2.2%, SU -2.2%, VIV -2%, HMY -1.7%

Select oil/gas related names showing early weakness: SDRL -4.2%, UPL -3.2%, APC -2.5%, HAL -2.3%, BHI -2.1%, OXY -1.9%, SLB -1.9%, TOT -1.8%, RIG -1.7%, DO -1.5%, NOV -1.5%, RDS.A -1.5%, BP -1.3%

Other news: UMPQ -3.7% (announced the commencement of a secondary public offering), OIBR -3.6% ( disclosed it reiterated that it engaged Banco BTG Pactual S.A. to develop viable structure and funding alternatives), HTA -3.5% ( announces public offering of 8 mln shares of common stock), STO -3.4% (announces execution of debt capital market transactions), FL -3.2% (CEO Ken Hicks to retire; Richard Johnson named CEO), HMC -3.2% (sales fall 5.8% in October, according to reports), DCT -3% (announces public offering of 13.5 mln common shares ), NUS -2.5% (in symp with HLF), HLT -2% (prices 90 mln shares of common stock by certain selling stockholders affiliated with The Blackstone Group (BX) at $25.00 per share), VPCO -1.8% (following 28%+ move higher yesterday), RCL -1.4% (agreed to repurchase 3.5 mln shares of common stock of the company held by Awilhelmsen AS ), NWE -1.1% (announces proposed offering of up to $348 million of its common stock), LVS -0.8% (files Automatic Mixed Securities Shelf ), JPM -0.6% (updated in its 10-Q filing the range of possible losses for legal proceedings to $0 to $5.9 bln from $0 to $4.6 bln)

Analyst comments: NMM -3.4% (downgraded to Underweight from Equal-Weight at Morgan Stanley), TMUS -2.3% (resumed with a Underperform at BofA/Merrill ), NOK -1.6% (downgraded to Underperform from Mkt Perform at Bernstein), SON -1.5% (downgraded to Neutral from Buy at BofA/Merrill ), VLY -1.3% (downgraded to Neutral from Buy at Guggenheim), OI -1.3% (downgraded to Underperform from Neutral at BofA/Merrill), MGI -1.2% (downgraded to Sell from Hold at Evercore) 

>>> US Gapping Up

Gapping up 
In reaction to strong earnings/guidance: BLMN +19.4%, ACUR +14.8%, ODP +14.4%, ELNK +12.8%, ININ +9%, NLS +7.7%, ARCI +7.1%, (also announces departure of CFO ), AFSI +7.1%, MWW +6.8%, TDW +5.6%, PLOW +4.7%, NCMI +4.4%, SNHY +4.4%, ALLT +4.2%, SKH +3.8%, NTRI +3.7%, MSI +3.6%, ARCO +3.6%, THC +3.3%, QLYS +3.2%, SYKE +3.2%, RKT +2.9%, WNR +2.9%, CLDT +2.9%, EOX +2.4%, (sees October comparable store sales up low single digits, in-line with expectations; sees Q3 EPS of $0.38-0.40 vs 0.32 Capital IQ Consensus Estimate), DXPE +2.3%, ENBL +2.3%, BDX +2%, TSLX +1.9%, NTI +1.9%, GALE +1.6%, TXRH +1.6%, WPC +1.5%, RSO +1.3%, VLO +1.3%, AEIS +1.1%, CVS +1%, HCN +1%, EL +1%, AIG +0.9%, LB +0.8%

Other news: TBPH +9.8% (announces positive results from Phase 1 proof-of-concept study of TD-6450, an NS5A Inhibitor to treat Hepatitis C; 240 mg achieved a median maximal viral load decline of 4.9 Log10 IU/mL following three daily doses in Genotype 1a Patients), BAA +7.7% (signed a definitive agreement with Gold Holding for $41 million gold sale transaction relating to the Twangiza mine), BLIN +3.2% (disclosed that it entered into a Securities Purchase Agreement with accredited investors pursuant to which it sold an aggregate of 200,000 shares of Series A Preferred Stock for gross proceeds of $2 mln), PLUG +2.5% (announced it has signed a long-term hydrogen distribution agreement with Praxair (PX)), SGOC +2% (appointed Mr. Shi-Bin Xie as President and CEO), TRN +1.6% ( announced that its subsidiary, Trinity Rail Group, LLC, has entered into a supply agreement with GATX Corporation to deliver 8,950 railcars over a four-year period, beginning March 2016), SPLS +1.6% (in symp with ODP), AZN +1.4% (disclosed that MedImmune, its global biologics research and development arm, has entered into an agreement to acquire Definiens for initial consideration of $150 mln), GPRO +1% (cont pre-mkt vol), AN +0.7% (October 2014 reported retail new vehicle unit sales increased 8% versus October 2013)

Analyst comments: SHPG +1.1% (upgraded to Buy from Neutral at UBS), LVLT +1% (upgraded to Buy from Neutral at Citigroup), SLM +0.8% (upgraded to Buy from Neutral at Goldman), AVNR +0.7% (initiated with a Buy at Deutsche Bank), CEMP +0.7% (initiated with a Buy at Sun Trust Rbsn Humphrey)

Alibaba Group Announces September Quarter 2014 Results

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BN 11/04 12:00 *CORRECT: ALIBABA GROUP 2Q ADJ. EPS 2.79-ADS YUAN BN 11/04 12:00 *ALIBABA GROUP REPORTS SEPT. QUARTER ADJ. EPS 2.79-ADS YUAN BN 11/04 12:00 *ALIBABA GROUP REPORTS SEPT. QUARTER ADJ. EPS 2.55-ADS YUAN BN 11/04 12:00 *ALIBABA GROUP REPORTS SEPT. QUARTER '14 RESULTS

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Alibaba Group Announces September Quarter 2014 Results 2014-11-04 12:00:01.852 GMT

Alibaba Group Announces September Quarter 2014 Results

Business Wire

HANGZHOU, China -- November 4, 2014

Alibaba Group Holding Limited (NYSE:BABA) today announced its financial results for the quarter ended September 30, 2014.

“We delivered a strong quarter with significant growth across our key operating metrics,” said Jonathan Lu, chief executive officer of Alibaba Group. “Our business continues to perform well, and our results reflect both the strength of our ecosystem and the strong foundation we have for sustainable growth. On our China retail marketplaces, gross merchandise volume for the quarter increased 49% and annual active buyers increased 52% year on year. We extended our unrivaled leadership in mobile with 217 million monthly active users on our mobile commerce apps in September and US$95 billion in mobile GMV for the twelve months ended September 2014. We are also encouraged by continued improvement of mobile monetization which demonstrates the strong commercial intent of our users.”

“Our financial performance this quarter was robust, with revenue growing 54% year on year,” said Maggie Wei Wu, chief financial officer of Alibaba Group. “We continue to execute our focused growth strategy, and the fundamental strength of our business gives us the confidence to invest in new initiatives to add new users, improving engagement and customer experience, expand our products and services and drive long-term shareholder value.”

September Quarter Operational and Financial Highlights

Operational highlights:

  September   June 30,   September 30,   30, 2013 2014 2014 % Change RMB RMB RMB   US$^(1) YoY   QoQ (in millions, except percentages)   GMV^(2) 373,659 500,916 555,666 90,529 48.7% 10.9% Mobile GMV as a percentage of 14.7% 32.8% 35.8% total GMV^(2) Annual Active 202 279 307 52.0% 10.0% Buyers^(3) Mobile Monthly Active Users 91 188 217 138.5% 15.4% (MAUs)^(4)  

Financial highlights:

  Three months ended September 30,   2013   2014 RMB RMB   US$^(1) YoY % Change (in millions, except percentages and per share amounts)   Revenue 10,950 16,829 2,742 53.7% Mobile Revenue 332 3,719 606 1,020.2%   Income from Operations 5,248 4,345 708 (17.2%)*   Non-GAAP EBITDA^(5) 6,505 8,493 1,384 30.6% Non-GAAP EBITDA 59.4% 50.5% Margin^(5)   Net Income 4,937 3,030 494 (38.6%)* Non-GAAP Net Income^(5) 5,893 6,808 1,109 15.5%   Diluted Earnings per 2.13 1.24 0.20 (41.8%)* Share/ADS (EPS) Non-GAAP Diluted 2.55 2.79 0.45 9.4% EPS^(5)

>>> DISH Network misses by $0.08, reports revs in-line

DISH Network misses by $0.08, reports revs in-line

Reports Q3 (Sep) earnings of $0.31 per share, $0.08 worse than the Capital IQ Consensus Estimate of $0.39; revenues rose 5.0% year/year to $3.68 bln vs the $3.69 bln consensus.
  • Pay-TV ARPU for the third quarter totaled $84.39, compared to the year-ago period's pay-TV ARPU of $80.98.
    • Pay-TV subscriber churn rate increased slightly to 1.67 percent versus 1.66 percent for third quarter 2013.
  • Total pay-TV customers decreased by ~12,000 in the quarter. DISH closed the third quarter with 14.041 million pay-TV subscribers, compared to 14.049 million pay-TV subscribers at the end of third quarter 2013. DISH activated ~691,000 gross new pay-TV subscribers, compared to ~734,000 gross new pay-TV subscribers in the prior year's third quarter.
  • DISH added ~28,000 net broadband subscribers in the third quarter, bringing its broadband subscriber base to ~553,000. DISH added ~75,000 net broadband subscribers in the third quarter 2013.

>>> EU COMMISION AUTUMN ECONOMIC FORECASTS: Cuts Euro Zone 2014 and 2015 GDP gro

EU COMMISION AUTUMN ECONOMIC FORECASTS: Cuts Euro Zone 2014 and 2015 GDP growth outlook 
>>> 2014 Growth Outlook:
- Cuts Euro Area GDP growth from +1.2% to +0.8%
- Cuts Germany GDP afrom +1.8% to 1.3%
- Raises Spain GDP from +1.1% to +1.2%
- Cuts Italy GDP from +0.6% to -0.4%
- Raises UK GDP from 1.6% to +3.1% 

>>> 2015 Growth Outlook:
- Cuts 2015 Euro Area GDP growth from 1.7% to 1.1%
- Raises Spain's 2015 GDP forecast from 2.1% to 2.2%
- Cuts Italy GDP from 1.2% to 0.6%
- Cuts Germany GDP from 2.0% to 1.1%
- Cuts France GDP from +1.5% to +0.7%

>>> Inflation
- Sees 2014 euro zone inflation at 0.5%
- Sees 2015 euro zone inflation 0.8%
- Sees 2016 euro zone inflation at 1.5%

(HSBC) Altice : OW(V): Altice offers to buy PT’s domestic assets

* Altice offers to buy Portuguese assets of Portugal Telecom from Oi for an EV of EUR7bn including EUR800m earn-out if
certain revenue and cash flow targets are reached
* We calculate that Altice’s leverage could reach 4.4x EBITDA in 2015 before synergies as the deal would be financed with
new debt and existing cash
* Proposed deal is in line with Altice’s strategy to focus on in market consolidation; OW(V) rating and EUR53 target price

(GS) Telecom Service : The turnaround stars: Reinstate Altice at CL Buy, Numeric

The turnaround stars: Reinstate Altice at CL Buy, Numericable at Buy

*Leading turnaround track record : A PE company in public markets
Altice has a sector-leading turnaround track record, having increased the EBITDA margins of acquired companies over the past decade by 24 pp on average, at a pace of >500 bp per year. Its Executive Chairman and founder, Patrick Drahi, has demonstrated an ability to buy and sell assets at the right points in the economic cycle. We believe Altice is far more than a
diverse collection of cable/mobile assets – it is more akin to a private equity company, but it is using public markets to accelerate its M&A opportunity.

*Restructuring potential at SFR far greater than consensus expects
We believe the integration of SFR and Numericable will again demonstrate Altice’s cost-cutting capability. In addition we believe they can achieve the full run rate of targeted cost synergies (c.€1 bn) within just three years, a best-in-class performance on fixed-mobile integration, and find further efficiencies within SFR of €1.3 bn by 2018 – a similar underlying cost reduction vs. historical precedents. While such radical cost reduction will likely weigh heavily on sales, we expect Altice to reach its ‘mid-term’ goal of 40% EBITDA margins by 2017 (vs. 26% pro-forma in 2014E). We are 12%- 19% ahead of Bloomberg pro-forma consensus EBITDA estimates for Numericable in 2015/16 and model a 2015-18 EBITDA CAGR of 9%.

*Altice has up to €20 bn of M&A capacity over the next 4 years
The substantial margin increase at SFR should give Altice up to €20 bn of debt-funded M&A capacity over the next four years on our estimates, plus it can also use equity. We note that on 11/3/14 Altice offered up to €7.025 bn for the telecom incumbent in Portugal. Additionally, we continue to see a 40% probability of further consolidation in France. We believe Altice’s call option on Vivendi’s 20% stake in SFR-NMC adds further value to the group.

*Altice (CL Buy): M&A potential merits a premium, 12m PT €75
Reinstate Altice at CL Buy with 51% upside to our 12m PT of €75 (implying an 8% 2017E FCF yield). Despite lower quality assets than leading cable peers, we believe M&A potential will deliver even greater FCF growth.

*Numericable (Buy): SFR turnaround drives dividends, 12m PT €40
Reinstate Numericable at Buy, with 37% potential upside to 12m PT of €40 (implying a 9% 2017E FCF yield), catalysed by large earnings surprises.