Today - Friday, December 13, 2013
5:05 PMStem Cell Therapeutics raises $33M in private placement
- Stem Cell Therapeutics (SCTPF) raises $33M in gross proceeds through a private placement of 157.1M in common and preferred units (each with a 3/4 warrant to purchase an additional common share at $0.28) at a price of $0.21/unit.
- The round was led by a "prominent U.S. healthcare fund," with participation from 7 other funds.
- Funds will be used for IND-enabling studies, manufacturing, and phase I clinical trials of the company's CD47 cancer stem cell program.
5:04 PMFireEye rallies following FBR coverage launch
- FBR's Daniel Ives has started coverage on FireEye (FEYE +2.3%) with an Outperform and $48 PT. He argues the ability of FireEye's threat-prevention hardware to deal with unknown (i.e. zero-day) threats acts as "a key differentiator" relative to tradition security hardware relied upon for dealing with known threats.
- In addition, Ives expects demand for more complex cyber threat prevention offerings will allow FireEye to take more share from rivals offering sandbox solutions.
- Shares are up 92% from a September IPO price of $20, but slightly below their opening trade of $40.30.
5:00 PMOn the hour
- S&P 0%.
- 10-yr +0.06%.
- Euro -0.09% vs. dollar.
- Crude -1.04% to $96.49.
- Gold +1.08% to $1238.1.
4:52 PMBoeing plans South Carolina expansion, continues shift to Southeast U.S.
- Boeing (BA) says it obtained a $1/year lease for 468 acres of state land near its factory in South Carolina, nearly double the amount expected for a planned expansion, but does not say what it plans to build there.
- BA also says it plans to start construction next year on a new 230K sq. ft. facility on its main campus in North Charleston, S.C., where it expects to begin painting fully assembled 787 Dreamliners in mid-2016.
- Earlier: Boeing to move hundreds of jobs away from Washington state.
4:41 PMMore on Sprint/T-Mobile
- Sources tell the WSJ Sprint (S +4.3%) is "studying regulatory concerns" related to a T-Mobile USA (TMUS +8.2%) bid, and that SoftBank (SFTBF) founder/CEO Masayoshi Son is "driving" the effort. However, they caution Sprint hasn't yet decided whether to make a move.
- Deutsche Telekom (DTEGY), which retains a 67% stake in T-Mobile USA, is said to be "looking to possibly exit the U.S. market." Though Deutsche is currently prohibited from selling T-Mobile shares until 18 months have passed from the closing of the MetroPCS deal, it can sell earlier if it received an offer for the entire stake.
- Sprint and T-Mobile only have 53M postpaid subs between them, less than Verizon's 95M and AT&T's 72M. If they try to go through with a merger, they'll mention such figures to regulators early and often.
- But the FCC and DOJ, only two years removed from thwarting AT&T's bid for T-Mobile, haven't given any indication they're now comfortable seeing further consolidation among nationwide U.S. carriers.
- Previous: Sprint reportedly working on deal with T-Mobile
4:27 PMJohnson & Johnson said to receive 3 $4B+ offers for Ortho unit| Comment!
4:25 PMVerizon reportedly close to deal for Intel TV unit
- Bloomberg reports Verizon (VZ -0.6%) is close to a deal to acquire Intel's (INTC -0.7%) TV unit, whose planned Web TV service never got off the ground. Intel was previously reported to be asking $500M for the unit.
- Verizon is once more said to be interested in using Intel's TV assets, which include set-top software and cloud DVR tech, to launch a Web TV service of its own in areas not covered by FiOS. The broadband/pay-TV providers whose networks Verizon will have to leverage to offer the service won't be thrilled to hear that.
- The report's timing coincides with that of a WSJ report stating Sprint is thinking of launching a bid for T-Mobile USA in 1H14. Verizon investors have taken the report in stride.
- Previous: Verizon, T-Mobile reportedly close to spectrum deal
4:15 PMStocks close mostly higher but barely dent week's big losses
- Stocks mostly inched ahead in a session which generated little excitement as investors awaited the start of next week's Fed policy meeting.
- Today's trading barely affected the week's final tally among the leading indexes; the Dow and S&P finished 1.7% lower for the week, while the Nasdaq fell 1.5%.
- Producer prices fell for the third straight month in November, which suggests inflation pressures are weakening; "the case against taper literally centers on [the inflation] numbers," US Bank Wealth Management's Jim Russell says.
- The yield on the benchmark 10-year Treasury fell slightly to 2.868%, gold futures rebounded from yesterday's big slide to gain 0.8% at $1,235.70, and West Texas crude eased 0.9% to $96.60.
4:08 PMAlexion provides update on voluntary Soliris recall
- Alexion Pharmaceuticals (ALXN +1.1%) provides an update on its voluntary recall of 2 lots of Soliris. The company previously instructed return at the distributor level, and is now extending that instruction to the hospital/user level. It notes, however, that "little, if any, inventory" is currently "being held at the hospital or user level."
- No product complaints from the lots have been received, and Alexion reiterates that it does not "anticipate any interruption to patient supply of Soliris."
- The visible particles which caused the voluntary recall have not been observed in other lots of Soliris distributed in the U.S., the company notes.
4:01 PMSprint reportedly working on deal for T-Mobile
- The WSJ reports Sprint (S +5%) could make a bid for T-Mobile USA (TMUS +7.8%) in 1H14. Both Sprint and T-Mobile shares have spiked in response.
- The FCC would doubtlessly give close scrutiny to a deal that would reduce the number of nationwide U.S. carriers to three from four. But Sprint majority owner SoftBank (SFTBF) hasn't been scared to make big bets.
- Both Sprint and T-Mobile's wireless subscriber bases are considerably smaller than Verizon and AT&T's, particularly with regards to corporate users. Sprint may be betting regulators will allow a deal to go through for this reason.
4:00 PMAt the close
- At the close:
- Dow +0.1% to 15755. S&P -0.01% to 1775. Nasdaq +0.06% to 4000.
- Treasurys: 30-year +0.32%. 10-yr +0.05%. 5-yr +0.02%.
- Commodities: Crude -1.02% to $96.51. Gold +0.96% to $1236.6.
- Currencies: Euro -0.14% vs. dollar. Yen -0.17%. Pound +0.32%.