Seeking Alpha
  • Today - Wednesday, July 8, 2015

  • 12:00 AM
  • Tuesday, July 7, 2015

  • 11:46 PM
    • Pure Cycle (NASDAQ:PCYO): 9M'15 net income of -$45.4M
    • Revenue of $1.88M (-5.5% Y/Y)
    • Press Release
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  • 11:07 PM
    • Scripps Networks Interactive (NYSE:SNI) is set to boost its ad market opportunities with its pursuit of Polish broadcaster TVN, Zacks says.
    • Scripps recently closed on majority control of TVN and indicated its intent to acquire the rest in short order. The acquisition offers Scripps -- a pure-play lifestyle approach in the U.S. -- a diverse set of channels in Poland, including a news broadcaster and a number of popular reality TV formats.
    • A possible downside is currency exchange risks, Zacks notes, as well as issues facing many of its peers: rising programming costs, and rising debt. But the firm believes Scripps will boost its presence in a strong growth market.
    • Previously: Scripps Networks offers $843M for remainder of Poland's TVN (Jul. 06 2015)
    • Previously: Scripps Networks closes on majority stake in Poland's TVN (Jul. 02 2015)
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  • 10:18 PM
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  • 9:34 PM
    • Next week, the FCC is looking to keep a landmark broadcast incentive wireless spectrum auction on track for early next year despite contentious debates from stakeholders -- and if it does, it's a boon for T-Mobile (NYSE:TMUS), says Guggenheim's Paul Gallant.
    • That's because though T-Mobile and Sprint (NYSE:S) have pushed for a bigger reserve of spectrum for "smaller carriers" (i.e.: them), a delay might mean that the current 30 MHz set-aside was at risk.
    • Meanwhile, the airwaves will be coming from TV broadcasters who must go along with any plan -- meaning they expect to see prices they like. A group representing smaller broadcasters say if the framework isn't revised, opening prices for broadcasters could be reduced by $8M.
    • Major broadcasters (ABC (NYSE:DIS), CBS, NBC (NASDAQ:CMCSA), FOX) aren't expected to be key airwaves sellers, while smaller groups like Sinclair (NASDAQ:SBGI) and Entravision (NYSE:EVC) are expected to sell.
    • Related firms: T, VZ
    • Previously: FCC chairman: Cap bid credits, keep smaller spectrum set-aside (Jun. 25 2015)
  • 8:55 PM
    • JPMorgan Chase (NYSE:JPM) has agreed to pay at least $125M to settle investigations by U.S. state and federal authorities that it sought to improperly collect and sell consumer credit card debt, Reuters reports.
    • The U.S. Consumer Financial Protection Bureau, 47 states and D. C. are expected to announce the settlements as soon as tomorrow, with the states splitting ~$95M and the CFPB getting ~$30M, according to the report.
    • JPM has been accused of relying on robo-signing and other ways of going after consumers for debts they may not have owed and for providing inaccurate information to debt buyers.
  • 8:20 PM
    • As a sweetener for approval of its takeover of DirecTV (DTV +0.3%), AT&T (T +0.5%) has agreed to offer a low-priced Internet option for four years to food stamp recipients -- an alternative that the FCC showed a desire for in a letter to the company last week.
    • Users would get up to 5 Mbps for $10/month for the first year, or in slower-speed areas, 1.5 Mbps for $5/month. The costs would go up to $20 and $10 respectively after the year is up. But the customers must not only be on food stamps -- they cannot be current or recent AT&T wireline broadband customers, or be in collection action with AT&T.
    • The telco is eagerly awaiting the result of a regulatory review that has been going on for months.
    • Previously: AT&T gains as analysts get bullish on DirecTV strategy (Jul. 02 2015)
    • Previously: AT&T-DirecTV merger approval expected next week (Jul. 01 2015)
  • 8:03 PM
    • NovaGold (NYSEMKT:NG) slid 8.2% today ahead of a Q2 report where it posted a loss flat from the year-ago quarter, as it pursues permitting for its Donlin Gold project and technical studies on its Galore Creek project (each 50%-owned).
    • The company reported cash and term deposits of $134.7M, down from $165.3M on Nov. 30, mainly due to repayment of $15.8M in convertible notes.
    • NovaGold says that's sufficient capital to cover its share of funding for its Donlin Gold (Alaska) and Galore Creek (Northern Alberta) projects. It expects to spend $44.8M in 2015, including the $15.8M repayment. Some $30.6M of the planned $44.8M amount was spent by May 31.
    • Shares are up 35% from a November's 52-week low, but are down 21.5% over the past month.
    • Conference call tomorrow at 11 a.m. ET.
    • Press release
    • 10-Q filing
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  • 7:21 PM
    • After trading down much of the day, broadcast company TEGNA (NYSE:TGNA) finished up 3% following a boosted price target from Evercore ISI.
    • The analysts bumped the target slightly, to $33 from a previous $32. After closing yesterday at $30.60, shares rose to close at $31.52 today.
    • Shares were downgraded last week by Jefferies Group, to Hold, just three days after it initiated coverage at Buy.
    • Previously: Gannett completes split into print, broadcast firms (Jun. 29 2015)
    | 1 Comment
  • 7:15 PM
    • Goldcorp (NYSE:GG) is upgraded to Overweight from Equal Weight with a $25.50 price target at Morgan Stanley, which says the miner offers 20% Y/Y output growth, with costs declining 14%, free cash flow turning positive in H2 - all at a compelling stock valuation.
    • GG typically trades at premium multiples but now trades below its peers on price/NAV (1.1x vs. 1.3x for peers) and in line with peers on EV/EBITDA and price/CFPS.
    • At the same time, Stanley downgrades New Gold (NYSEMKT:NGD) to Equal Weight from Overweight and cuts its price target to $4 from $5.25, expecting shares will continue to trade at discounted multiples as mid-tiers with large development projects and free cash flow further out remain out of favor.
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  • 7:01 PM
    • Sony Mobile (NYSE:SNE) chief Hiroki Totoki: "Smartphones are completely connected to other devices, also connected to people’s lives — deeply. And the opportunity for diversification is huge. We’re heading to the IoT (Internet of Things) era and have to produce a number of new categories of products in this world ... In that sense we will never ever sell or exit from the current mobile business."
    • There has been speculation Sony could shutter its mobile ops, which have posted steep losses while dealing with tough high-end competition from Apple/Samsung and low-end/mid-range competition from Chinese OEMs. Totoki: “We are trying to decrease our costs by 30 percent to the end of 2016, and reduce our headcount by 20 percent.”
    • Separately, PlayStation exec Shuhei Yoshida has said it's "too early" to give a price for Sony's Morpheus VR headset, which will launch in 1H16. "We still have work to do to know exactly the cost of goods and so on."
    • Microsoft is partnering with Oculus to provide VR gaming support for the Xbox One (via Windows 10 PCs). The first commercial Oculus Rift model is due in Q1 2016. Oculus CEO Brendan Iribe has estimated the total cost of a Rift headset and a PC powerful enough to run it would be around $1,500.
    | 1 Comment
  • 6:57 PM
    • Yesterday's news from Atwood Oceanics (NYSE:ATW) of a six-month contract extension on the Atwood Beacon is a positive for the company, but Cowen analysts caution that investors should not consider it a beacon of light for the industry.
    • While Cowen welcomes the addition of backlog in calendar 2016 at a slightly higher dayrate than expected, the firm believes the nature of the negotiations - an exchange of lower dayrates for additional backlog - "highlights the continuing downward pressure on operating margins that should be expected across the entire offshore drilling sector going forward."
    • The sector enjoyed a strong afternoon bounce in today's trade: ATW +3%, RIG +5.5%, DO +1.4%, RDC +2.1%, ESV +2.7%, SDRL +3%, NE +3.2%.
    | 1 Comment
  • 6:45 PM
    • A big fiber buildout from AT&T (T +0.5%) is likely to hurt big cable, including Comcast (CMCSA +0.6%), Charter (CHTR +0.5%), Time Warner Cable (TWC +0.7%) and Cablevision (CVC +1%), analyst Craig Moffett says, and it's reminiscent of the mid-2000s.
    • Documents from AT&T show that after wrapping its DirecTV merger, it plans to run fiber past the equivalent of 11.7M homes, he notes. The catch is exactly where that fiber runs, and how much that overlaps the cablecos' footprints.
    • Cable analysts, he says, will have to "adjust their models to reduce both growth and pricing power assumptions.”
    • Moffett estimates that Comcast may have the biggest change in overlap, to 22% from 18%. For Charter, it would go to 12% from 7%. And a Charter-Time Warner Cable combination would go from a 17% overlap to 21%.
  • 6:43 PM
    • Barclays’ Paul Cheng predicts all 10 Americas-based oil majors - XOM, CVX, COP, HES, MUR, SU, CVE, IMO, OTCPK:HUSKF, PBR - will beat earnings forecasts, benefiting from strong downstream and chemical performances as well as better than expected production volumes and a lower operating cost environment.
    • Cheng estimates the oil majors will exceed the current EPS consensus by a median of 30% while the refiners will beat by 9%.
    • Cheng raises his full-year EPS forecast for CVX to $3.75 from $3.55 and for COP to $0.25 from $0.20, but lowers his forecast for XOM to $4 from $4.05.
  • 6:41 PM
    • Bloomberg reports Symantec (NASDAQ:SYMC) is "nearing a deal" to sell its Veritas storage software unit (currently set to be spun off) to P-E firm Carlyle (NASDAQ:CG) for $7B-$8B. For reference, Symantec closed today with a $15.4B market cap.
    • Deal terms are still being negotiated. Symantec hasn't been shy about its willingness to field offers for Veritas, which was acquired for $13B+ in 2005. Reuters reported in April tax concerns had hurt buyout interest.
    • Symantec has risen to $23.40 AH. The company's Information Management ops had FY15 (ended in March) revenue of $2.56B (+1% Y/Y).
    | 1 Comment
  • 6:31 PM
    • Adept (NASDAQ:ADEP) claims its new Hornet 565 robot is 25% faster, 50% lighter, takes up 50% less space, and provides a 25% larger workspace than competing product-packaging robots.
    • Like other Adept robots, 565 ships with the company's ACE developer's software and supports optional machine vision/guidance and packaging automation apps. Adept plans to show it off at the China International Robot Show (runs from July 8-11), along with other products.
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  • 6:25 PM
    • Low crude oil prices present an opportunity to drive down oil sands costs even further, adding to the 25% savings YTD, some of Canada's largest producers said today at a TD Bank conference in Calgary.
    • Cenovus Energy (NYSE:CVE) executive VP of oil sands Harbir Chhina believes his company can cut costs by another 30%, adding that “the key thing that’s going to happen now, with this downturn, is really the cost structure in the oil sands is going to come down."
    • It is a sentiment echoed by Canadian Oil Sands (OTCQX:COSWF) CEO Ryan Kubik, who expects 2015 operating costs of C$39.48/bbl vs. C$45.69 at the start of the year.
    • Encana (NYSE:ECA) VP of strategy Corey Code said the oil price slide has provided the opportunity to cut costs not just in oil sands but across its shale oil holdings in Alberta and Texas.
    • In addition to reducing operating costs, MEG Energy's (OTCPK:MEGEF) John Rogers said the company would grow its production solely by expanding existing oil sands plants for the foreseeable future.
  • 6:16 PM
    • VimpelCom (NASDAQ:VIP) is among top postmarket decliners, off 3.7% after hours on a big block that came through in the past hour.
    • Shares gained 1.2% in the regular session today, bucking regional industry peers including Mobile Telesystems (MBT -2.5%) and MiMES Rostelekom (OTCQX:ROSYY -3.5%).
    • The Amsterdam-based company noted today that it's joined Nederland ICT, a trade organization for more than 550 info-tech, telecom and Internet companies in the Netherlands. The move should foster better relationships with in-country peers and help develop home-grown talent for the sectors.
    • Previously: U.S. piles in to bribery probe of Russian phone firms (Jun. 30 2015)
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  • 6:12 PM
    • Esterline (NYSE:ESL) has bought back 689K shares from activist Relational Investors at $92.65, $0.16 below today's close.
    • The purchase covered over 2% of outstanding shares. It followed the June redemption of Esterline's 7% senior notes due 2020.
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  • 6:00 PM
    • S&P +0.02%.
    • 10-yr +0.01%.
    • Euro -0.17% vs. dollar.
    • Crude -0.1% to $52.96.
    • Gold -0.12% to $1,154.30.
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