Today - Thursday, March 13, 2014
- In addition to starting three other savings banks with Buys, analyst Laurie Hunsicker initiates Kearny Financial (KRNY) with a Buy as well (along with $19 price target).
- "The key to the investment thesis sits in understanding the MHC (Mutual Holding Company) structure and the potential implications for existing shareholders in the event of a second-step IPO," says Hunsicker, noting meaningful downside protection thanks to the buyback opportunity on shares trading below book.
- Dara Biosciences (DARA), which provides a liquid version of the Tamoxifen treatment for breast cancer, finds that the adherence of patients to the tablet form "is less than optimal."
- In a survey, 14% of respondents said they miss two or more Tamoxifen doses a month, while 8% had swallowing difficulties.
- Seven percent said a liquid version of Tamoxifen would boost their compliance and 22% said they'd be willing to try it.
- Shares are +3.7% premarket. (PR)
- Chevron's (CVX) multi-billion dollar Indonesia Deepwater Development gas project is facing a delay of up to 18 months, according to the country's oil and gas minister, pushing expected production startup for the project past 2016.
- CVX has said it plans a final investment decision for the project in 2014 but is subject to the timing of government approvals.
- Daily production from the project is expected to peak at 1.1B cf of natural gas and 31K bbl of condensate.
- Gramercy Property Trust (GPT) AFFO of $3.4M or $0.05 per share in Q4, $5.8M or $0.09 per share for all 2013.
- Eleven properties acquired in eight separate deals for total price of about $164.9M, with initial cap rate of 7.3% and average lease term of 14 years.
- Subsequent to quarter's end, Gramercy acquired a 115K square foot industrial facility in Des Plaines, Illinois for $6.3M with initial cap rate of 7.6%.
- Common stock dividend reinstated at $0.035 per share.
- Press release, Q4 results
- CC at 2 ET
- The initial quarterly payout will be $0.035 per share to be paid on April 15 to holders of record as of March 31. The annualized yield is 2.5% based on last night's close of $5.68.
- Management had previously indicated a resumption of the common dividend was likely early this year.
- CEO Gordon DuGan: "We are currently focused on Gramercy's growth trajectory and therefore our dividend policy will be based upon a low payout ratio for the time being."
- Press release
- GPT no trades premarket.
- Amazon (AMZN) confirms in an e-mail to customers that it will bump up the price of Amazon Prime to $99 when their memberships renew.
- The company notes the 40K movie and TV episodes available to customers through Prime Instant Video, along with the 500K books through the Kindle lending library.
- It also makes some hay out of the two-day free shipping option for Prime members which now includes 20M items.
- AMZN +2.1% premarket
- A World Bank panel rejects Venezuela's request for a new hearing to contest a 2013 partial ruling that it failed to act in good faith regarding negotiations to compensate ConocoPhillips (COP) for the country's expropriations of three oil projects in 2007.
- Venezuela's state oil company PDVSA said the decision last year was unfair because it had offered $2.3B in compensation, which was higher than its $1.8B estimate of the assets' value, excluding tax and royalties claims.
- Experts say a final ruling on damages in Venezuela's biggest arbitration case could take another year or two.
8:36 AM| Comment!
- The number of cattle deaths that could be connected to Merck's (MRK) Zilmax feed additive may be much higher than the company has reported to the FDA, a study shows.
- The analysis found that over 3,800 cattle that received Zilmax in 2011-2012 died, with 40-50% of those deaths probably attributable to the drug.
- A Reuters review showed that over a six-year period, Merck reported that 285 cattle died in the U.S. unexpectedly or were destroyed after being fed Zilmax.
- Merck raised doubts about the veracity of the new study and expressed confidence in the product even though the company temporarily withdrew it in August.
- The FDA said it would review the research.
- Foster Wheeler (FWLT) agrees to acquire South Africa-based MDM Engineering Group for $109M as it continues to grow through acquisitions.
- MDM performs preliminary and final feasibility studies as well as plant design, construction and commissioning, which FWLT says is a strong fit for the company that enhances its global capacity in its minerals and metals business.
- Unilife (UNIS) closes $60M debt deal with OrbiMed. $40M funds immediately followed by $10M in December and $10M in June 2015.
- The six-year agreement stipulates the company make interest-only payments at a rate of 10.25% per annum. The principal is due by March 12, 2020.
- OrbiMed will earn tiered royalty payments on Unilife net sales up to a maximum of 2.75%.
- Tim Hortons (THI) is upgraded by KeyCorp to a Buy rating from Hold.
- The restaurant stock draws mixed views from the analysts community with expansion plans in the U.S. looking like a bit of a gamble amid weak traffic patterns and stiff competition.
- KeyCorp sees an opening for Tim Hortons in key markets.
- Plug Power (PLUG) +8.9% premarket after issuing Q4 results that beat revenue estimates and predicting orders will rise more than fourfold this year to more than $150M.
- Unadjusted net loss widened to $28.9M from $8.47M in the year-ago quarter, mainly because of a $20M charge related to a change in the fair value of previously issued common stock warrants.
- Bookings reached $32M in the quarter, as strong product sales and maintenance orders were received from large companies such as Wal-Mart, Kroger, BMW and Mercedes-Benz; shipments fell 46% Y/Y to 279 units.
- “I am more bullish than ever that Plug Power is moving into a rapid growth cycle,” CEO Andy Marsh says, expecting EBITDA to break even by Q3.
- Also: BLDP +7.5%, FCEL +5% premarket.