Today - Friday, December 13, 2013
8:54 AMRetail darling Lululemon loses its shine
- Lululemon (LULU) is downgraded to Neutral by Credit Suisse and assigned a lowered price target of $59.
- Yesterday, execs with the retailer gave an uninspiring performance during the firm's earnings call. Outgoing CEO Christine day skipped the affair and those fielding questions seemed a bit bowled over by the brand's sudden lack of momentum. (earnings call transcript)
- LULU -0.1% premarket to $60.35.
8:51 AMCalgon Carbon won't pursue an MLP, expands stock buyback program
- Calgon Carbon (CCC) nixes the notion of creating an MLP, saying the concept is not accretive to shareholder value due to rules on qualifying income, the structural support needed, and the additional costs of creating and operating an MLP.
- Instead, CCC will expand its stock buyback program, authorizing up to an additional $100M of stock repurchases.
- CCC also plans an additional $10M in cost cuts, bringing to $40M its total annual cost improvements.
8:49 AMSetback for Spain as LVS pulls $35B resort project
- Spanish stocks are off the highs but remain ahead by 0.4% on the session following Las Vegas Sands' reported decision to drop its massive project for suburban Madrid. The 10-12 year, $35B project was to include 12 casino resorts with 36K rooms, and was a key spoke in the government's plan to pull the economy out of its slump and lower the 26% unemployment rate.
- The MSCI Spain Capped ETF (EWP) is up 26% Y/Y.
8:45 AMHonda recalls 19K 2014 Acura MDXs in the U.S.| Comment!
8:42 AMBreitburn Energy picks up Permian properties for $282M
- Breitburn Energy (BBEP) agrees to acquire additional oil and natural gas properties in the Permian Basin in Texas for ~$282M from CrownRock LP.
- Highlights of the acquisition: estimated average daily net production of ~2,900 boe/day (60% oil), estimated reserve life index of more than 15 years based on estimated proved reserves of ~16.6M boe, ~93 producing wells and 300-plus potential drilling locations, ~84% operated with ~66% average working interest.
8:40 AMMerrimack +6% on encouraging Phase 1 study results
- Merrimack Pharmaceuticals (MACK) has its tail in the air after "encouraging clinical data" from the expanded Phase 1 study of MM-302 for treatment of advanced HER2-positive breast cancer.
- "Patients treated with MM-302 showed no signs of clinical decline in cardiac function ... These results are encouraging for the development of our nanoliposomal technology platform, and an important step towards successfully establishing the safety and activity profile of MM-302 in the HER2-positive breast cancer population."
- A Phase 2 study is being planned.
- Shares +6% premarket
- Press release
8:35 AMHome Depot on the move with another upgrade in tow
- Raymond James upgrades Home Depot (HD) to Outperform from Market Perform after taking in the company's Investor Day presentation.
- The investment firm sees margin upside in 2014 for the home improvement behemoth.
- Home Depot Investor Day recap: (same-day delivery, financial targets)
- HD +0.9% premarket to $79.21.
8:33 AMBrixmor started a Buy at Deutsche
- "Brixmor (BRX) has delivered to investors a clean and simple way to play the U.S. grocery-anchored strips," says Deutsche's Vin Chao, starting the Blackstone (BX) spinoff with a Buy at $23 price target (Blackstone owns a 73% stake).
- "With portfolio and balance sheet repositioning addressed pre-IPO, BRX can focus its efforts on driving above-average earnings growth via occupancy gains, improving rents, and select redevelopment opportunities."
- Chao also likes the relative valuation, and expects a total return of 20% over the next year - a combination of 10% earnings growth driving the shares to $23, and a 4% dividend yield.
8:29 AMInsys -18% following subpoena news
- Insys Therapeutics (INSY) -18.4% premarket following news it received a subpoena from the Department of Health and Human Services in connection with an investigation of potential violations involving HHS programs.
- The subpoena requests documents regarding Subsys, including INSY's sales and marketing practices related to the product; Subsys, a sublingual spray to treat pain in opioid-tolerate cancer patients, is one of its INSY's two marketed products.
8:22 AMTronox expects to receive millions in tax deductions via court ruling, +8.6%
- Tronox (TROX) +8.6% premarket following last night's court ruling that Anadarko Petroleum and its Kerr-McGee unit acted with intent to delay and hinder TROX's creditors at the time of the spinoff.
- The court found APC liable and indicated a damage award of as much as $14.5B - the value is still to be determined - but TROX will receive no immediate or direct benefit from the ruling; instead, 88% of the judgment will go to trusts and other governmental entities to remediate polluted sites.
- TROX expects to receive tax deductions equal to the amount spent by the trusts, which will accrue over the life of the trusts as the funds received by the judgment are spent; the expenditures and accompanying tax deductions may continue for decades, potentially amounting to hundreds of millions of dollars annually.
8:22 AMElephant inks 5-year contract extension with client; +24%
- Elephant Talk (ETAK) soars 24% after getting a 5-year extension with an existing Mobile Network Operator (MNO) client in Europe. Elephant expects hosting fees to increase approximately 13% on average, per SIM per month, in exchange for improved service levels. Elephant will receive continuous prepayments of about $10M for the duration of the contract.
- Press release
8:21 AMCoca-Cola higher after organizational shakeup
- Shares of Coca-Cola (KO) trade higher in early action after the company makes a dramatic split of its Americas business.
- The early beverage industry analysis on the development is favorable with Coca-Cola seen as being able to streamline its focus and squeeze out more efficiencies with the new operating structure.
- KO +1.1% premarket.
8:15 AMInvestors likely to applaud Las Vegas Sands' white flag in Spain
- Shares of Las Vegas Sands (LVS) are on watch after Sheldon Adelson gives up on his vision of a $30B casino complex in Spain.
- Plenty of investors have been clamoring for Las Vegas Sands to stick to its strength of producing impressive returns in Asia and avoid the land of +25% unemployment.
- LVS +1.0% premarket.
8:15 AMCelsion +8.4% on trial data presentation
- "The impressive local response rate seen in these two studies was determined by lesion measurements and digital imaging data," says Dr. Hope Rugo. "Patients are pleased with the local control in the treated areas. I look forward to continuing my involvement in the Phase 2 portion of the DIGNITY study and its future application to clinical development of ThermoDox across different cancers."
- Press release
- CLSN +8.4% premarket
8:09 AMBroad brand strength at Volkswagen
- Volkswagen (VLKAY) reports strong sales of its Audi brand in China and the U.S. helped group grands achieve a 4% gain in sales for November.
- By brand, the automaker has seen Volkswagen, Audi, Porsche, Seat, and Bentley all improve sales this year. Czech unit Skoda is the only Volkswagen brand which has moved in the wrong direction for the year.
8:03 AMAdvertising works on Twitter; RBC boosts price target
- "A substantial 40% of Twitter (TWTR) advertisers reported improving ROI over the last six months and 40% have also increased their Twitter spend," says RBC Capital, upping its price target on Buy-rated Twitter to $60 from $33.
- 59% of respondents plan to increase ad spend with Twitter over the next twelve months, says the team, while only 4% plan to decrease.
- Shares +1.2% premarket to $56.
8:01 AMAereo likes its chances with Supreme Court
- Aereo says it won't oppose a petition to the Supreme Court filed by broadcasters (FOXA, CMCSA, CBS, DIS) as it preps to let the high court decide the issue on if its service is legal.
- So far, Aereo has a decent track record in court cases filed against it in new markets where its has entered.
- However, the legal squabbles have slowed down Aereo's growth track. The company is only in 9 markets after setting a goal to be in 22 by the end of the year.