MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
Flip Order
-
Monday, June 17
-
5:57 PM U.S. online retail sales rose 14.6% Y/Y in May, says comScore. That sits well with Cantor, which is reiterating a Buy on Amazon (AMZN) and eBay (EBAY). Though May's rate is down from April 16.9%, it's above Q1 13.3%. Mobile activity is providing a lift - comScore estimates mobile made up 48% of time spent on U.S. retail e-commerce activity in Q1 (34% from smartphones, 14% from tablets). Meanwhile, eBay CEO John Donahoe predicts China will give PayPal a license, thus allowing it to take on Alibaba's dominant AliPay service. eBay currently handles $6B/year worth of Chinese transactions, much of it from local merchants selling abroad. Analysys predicts the Chinese online payments market will soon top CNY1T ($163B). Comment!
-
5:08 PM Campbell (CPB) is acquiring Denmark's Kelsen Group, owner of the Kjeldsens and Royal Dansk baked snack brands (the latter is known to U.S. consumers for its butter cookies), from P-E firm Maj Invest for an undisclosed sum. Kelsen had 2012 sales of $180M, has been growing at a "compound double-digit rate" since '09, and has seen its Chinese sales grow at a 28% CAGR over the last 3 years. The deal will bolster a baked snack business that includes the Pepperidge Farm cookie/cracker brand, and the Arnotts Australian biscuit brand. It's expected to be "modestly accretive" starting in 2014. Comment!
-
3:47 PM Shares of Orchard Supply (OSH +12.7%) are higher today after announcing earlier it would voluntarily file for bankruptcy in an effort to sell itself to Lowe's (LOW). The stock initially soared over 90% on news that the deal would be worth around $205M, or approximately $34.17 per share, a massive premium to Friday's close of $1.88. However, details in the press release showed the numbers are a little more convoluted than previously thought. LOW will assume the debt owed to nearly all of OSH's supplier partners, which means the actual per share value of the deal is contingent on how much debt gets wiped out in bankruptcy court. Comment!
-
3:33 PM Hasbro (HAS +0.2%) strikes an expanded licensing deal with Rovio to develop more toys and games based on the Angry Birds brand. As part of the deal, a collaboration between Angry Birds Star Wars from Rovio Entertainment and LucasFilm will also be expanded. Comment!
-
3:27 PM Goldman (Buy, PT $62) says last Friday's sell-off in shares on Monster Beverage (MNST +0.3%) "seems overdone" as a proposal up for debate by the AMA "does not seem to contain new information." Comment!
-
-
2:54 PM Ingersoll-Rand (IR +0.3%) announces a private offering of senior notes, consisting of three tranches. The company intends to use the proceeds to fund the redemption of IR Global's existing $600M of 6.00% Senior Notes due in 2013 and $655M of its 9.5% Senior Notes due 2014, and to fund expenses related to the spin-off of its commercial and residential security businesses. Comment!
-
2:39 PM Out with the old. The Netflix-DreamWorks Animation deal signals an important change in the way content is distributed, according to industry watchers The most important part of the deal is that it focus on exclusive fresh content for Netflix (NFLX +6.8%) from DreamWorks (DWA +4%) - instead of just filling up a library with older titles. The big picture: A bidding war for new films from Hollywood studios (LGF, SNE, VIA, CMCSA, DIS) could help the industry maximize profits. George Lucas and Steven Spielberg called it (I, II) last week when they predicted giant upheaval for the film industry. 5 Comments
-
1:50 PM Natural Grocers by Vitamin Cottage (NGVC +7.7%) trades higher as stocks related to organic foods continue to draw attention. SA author Stephen Simpson draws an important distinction between the company and Whole Foods Market by noting the grocery concern is more of a pure-play on the organic industry and has its eyes set on a smaller square-footage footprint. Comment!
-
1:30 PM Nissan (NSANY.OB) is threatening to put a damper on the summer profits of the Big Three (GM, F, FIATY.PK) automakers with new aggressive pricing stemming from a lower yen and an urge to gain market share in the U.S. What to watch: Nissan's "scorched-earth" pricing policy is running up against an onslaught of new models from Detroit with positive reviews. The U.S. automakers may hold the line on prices - unless Toyota (TM) gets aggressive as well and forces the issue. 3 Comments
-
1:23 PM Macau gambling revenue rose 39% over the last week as both high VIP turnover and generous win percentage rates boosted sales for operators (LVS, MGM, MPEL, WYNN) in the region. Even if the pace slows down for the rest of June, the monthly revenue tally could easily exceed analyst estimates according to both RBC and Citi. 7 Comments
-
1:19 PM Alliant Techsystems (ATK +0.6%) says it's landed a $50M contract from Rolls-Royce (RYCEY.PK +0.2%) to produce aft fan composite cases for the new Trent XWB-97 engine. The contract has the potential to grow to more than $200M. Comment!
-
12:46 PM Cheesecake Factory (CAKE +1.1%) is back in a growth phase with new restaurants in Kuwait and Dubai as well as additional debuts planned for Asia. In the U.S., the company has kept a measured approach to growth since 2008, holding nearly steady at 162 outlets. What to watch: The company's Grand Lux Cafe and RockSugar Pan Asian Kitchen brands hold some interesting potential. Comment!
-
11:45 AM Deutsche Bank's Doug Mitchelson doesn't think Charter Communications (CHTR +1.6%) and Time Warner Cable (TWC -2.1%) can complete a deal that would pay TWC shareholders in the $110-$125 range. Instead, the analyst believes TWC shareholders would have to receive a price closer to $146 in order to satisfy the board. Also in the mix is Liberty Media (LMCA +0.7%) with its 27% stake in Charter. Comment!
-
11:07 AM Shares of Restoration Hardware (RH +2.6%) are up gain again to brush aside a negative take in Barron's amid Friday's earnings-inspired rally. SA contributor Brian Nichols called it over the weekend, noting that despite the recent rally the company still only trades at 1.8X sales and has upside potential to improve margins. Comment!
-
10:59 AM Ford (F +2.2%) thinks it can cut into losses in Europe as new higher-margin vehicles start to sell amid higher demand on the continent. Ford's head of sales in the region, Roelant de Waard, forecast sales in Ford’s main markets in Europe will increase about 3.7% Y/Y to about 14M in 2014. 1 Comment
-
10:49 AM Frontline (FRO +23%) soars after John Fredriksen backs the sector for gains due to "high growth" in LPG production. Other shipping stocks on the move: Ship Finance International (SFL) +1.5%, Seadrill (SDRL) +1.2%, StealthGas (GASS) +3.4%, GasLog (GLOG) +3.2%. 7 Comments
-
9:52 AM Netflix (NFLX +5.1%) roars 6% higher after news of a content deal with DreamWorks Animation breaks. Though the partnership will significantly strengthen the company's menu of children's programming including the rights to air Shrek and Kung Fu Panda series, with financial terms undisclosed there is a wildcard in the mix. 6 Comments
-
9:26 AM O'Reilly Automotive (ORLY) announces a proposed offering of $300M in senior notes which will be due in 2023. The company says the funds might be used for a variety of different items including buybacks and repayment of debt. Comment!
-
9:08 AM Barnes & Noble (BKS) says it will keep its lowered level of pricing on Nook products in place after last week it introduced a Fathers Day promotion. The Nook HD+ is listed at $149 for the 16GB device and $179 for the 32GB version. Comment!
-
8:54 AM Lowe's (LOW) deal to buy Orchard Supply stores in California is interesting to analysts because it's a move into smaller-sized stores. Orchard stores - which were once under the Sears Holdings umbrella - average 36K square feet compared to Lowe's spacey stores that average 113K square feet. Could a new Lowe's brand be on tap? Comment!
-
8:49 AM Smithfield Foods (SFD) moves up 1.4% premarket after Starboard Value pitches that a piecemeal sale of the company might make sense. The sum-of-the-parts chatter could also provide another lift for the packaged meats sector as a whole. On watch: Tyson Foods (TSN), Seaboard Corporation (SEB), Hillshire Brands (HSH), and Hormel Foods (HRL). Comment!
-
8:31 AM Pinnacle Entertainment (PNK) says it worked out an agreement in principle with the FTC that will allow its purchase of Ameristar Casinos (ASCA) to move forward. The company now has more time to sell a casino in Lake Charles, Louisiana and St. Louis, Missouri to satisfy regulatory concerns. Comment!
-
8:25 AM Shares of Tesla Motors (TSLA) move 2.6% higher premarket to $102.91 with a fresh Overweight rating and $150 price target from Global Equities helping to lift sentiment early in the week. The investment firm thinks Tesla is creating a "new industry" with its electric vehicles boasting solid performance and muscle. 11 Comments
-
8:21 AM Toyota (TM) pulls the plug on the practice of allowing warranties to be sold online by third parties and will limit sales to within the same state a consumer buys a vehicle. The automaker indicated it was concerned with running afoul of state commerce laws, but industry insiders think the move is designed to keep dealerships happy. Last year, Toyota Financial Servives sold over 500K extended service contracts providing a revenue stream for both the automaker and dealerships. Comment!
-
8:09 AM Amazon (AMZN) adds Disney Pixar titles to its LoveFilm streaming service in the U.K. Current subscribers will have access to the children's hits from the studio at no extra cost. (Related: Netflix and DreamWorks Animation strike a deal for an original kids series) Comment!
-
8:05 AM Three breakfast reads:
1) From the ashes of Webvan, Amazon builds a grocery business
2) Intel Could Hit A Share Price Of $40 By 2016
3) Microsoft Must Share in PC Pain to Profit Comment! -
8:01 AM Under Armour (UA) plans to launch a performance monitoring watch for consumers that could break new ground. The watch will use a variety of data tracking to "score" a workout on a scale between 0 and 10. (h/t Brian Sozzi) 1 Comment
-
7:45 AM More on the SodaStream (SODA) - Whirlpool (WHR) deal: The quick analyst take on the collaboration between the companies is that clear benefits exist for both with SodaStream gaining a major partner and Whirlpool jumping into a new product line. Though it's still very early in the game, the broadening out of the home carbonation business isn't great news for soda sellers (KO, PEP, DPS). 6 Comments
-
7:42 AM Ford (F) expects to export more vehicles from India as it seeks cost-cutting initiatives. Chennai, India is one of the locations where the automaker has a global platform set up for manufacturing new models. 4 Comments
-
7:37 AM More on the Netflix (NFLX) - Dreamworks Animation deal: The partnership between the two media players calls for 300 hours of original programming and appears to be a deeper commitment by Netlflix toward children's programming. Though Netflix let a deal for content from Viacom's Nickolodean expire early this year, it now has Dreamworks and Disney (starting in 2016) supplying it with content for kids. Financial terms weren't disclosed. NFLX +1.4% premarket 10 Comments
-
7:20 AM SodaStream (SODA) announces a collaboration with Whirlpool (WHR) that will see the companies jointly develop a home carbonation system under the KitchenAid brand. The product is expected to be available in Q4. 5 Comments
-
7:14 AM BofA initiates coverage on Texas Roadhouse (TXRH) with a Buy rating and $28 price target. Comment!
-
6:54 AM Man of Steel took in $125.1M over the weekend (Thursday-Sunday) to soar above the estimate of analysts and set up the Warner Bros. (TWX) film for a trilogy. Close to 80% of the first-run showings were in 3-D and IMAX. 1 Comment
-
6:44 AM Ford (F) CEO Alan Mulally says he sees the Asia-Pacific region accounting for up to 40% of the automaker's sales within four or five years. The exec is in India just ahead of the launch of the EcoSport compact crossover in the nation. 4 Comments
-
5:37 AM Car makers have been facing increasing regulatory pressure to sell zero-emission vehicles, with New York, New Jersey and seven other states following California in demanding that a minimum number of new-car sales will be electric, plug-in hybrid and hydrogen-powered by 2025 (in California, the goal is 25%). This is all very nice, except consumers are largely uninterested, partly due to cost. Still, 2025 remains a long way off. Comment!
-
5:11 AM United Continental Holdings (UAL) is finally enjoying some smooth flying after an "awful" 2012, CEO Jeff Smisek has said. Last year, the carrier lost $723M and suffered a wave of canceled and delayed flights, partly as an after-effect of the 2010 merger between United Airlines and Continental. "For far too long, we've operated this company as an airline. Airlines don't make money," Smisek added. 1 Comment
-
3:15 AM France's government has instructed its three representatives on France Telecom's (FTE) board to vote to keep CEO Stephane Richard at a crucial directors' meeting today to discuss his future. The meeting comes after Richard was placed under formal investigation as part of a probe into a €285M government arbitration payout to a businessman in 2008. Richard also has the support of employee shareholders, who hold one seat. Comment!
-
2:59 AM AT&T (T) has reportedly been thwarted in a €70B bid to acquire Telefonica (TEF) by Spain's government, which has the power to stop the sale of any company that is deemed strategic. The U.S. carrier told state representatives that it would take on the Spanish operator's €52B of debt as part of any transaction. Telefonica said it hasn't "received any approach or...indication of interest," from AT&T. 4 Comments
-
2:13 AM Time Warner's (TWX) "Man of Steel" enjoyed a super opening weekend, generating almost $200M in worldwide ticket sales, including $125.1M in the U.S. and Canada. Given that the Superman reboot has also taken in $170M from promotional partners, the film has nearly covered its $375M production and marketing costs. The success of the film so far has strengthened speculation about sequels and a "Justice League" flick. Comment!
-
1:52 AM KKR (KKR), Blackstone (BX), Carlyle (CG) and prospective strategic buyers such as U.K.-based Inmarsat (IMASF.PK) and Australia's NewSat (NWTLD.OB) are among the suitors to have reportedly placed first-round bids for the satellite operations of Singapore Telecoms' Australian unit, Optus, which SingTel values at over A$2B ($1.9B). SingTel advisers Credit Suisse (CS) and Morgan Stanley (MS) will provide a loan of A$1.7B that the acquirers can use to finance the deal. Comment!
Other date
Latest Consumer Articles
