Today - Wednesday, September 2, 2015
- Vale (NYSE:VALE) says it received a ruling allowing it to restart operations at the Onca Puma nickel mine in Brazil, after a court last month ordered operations stopped due to a dispute over payments to local indigenous communities.
- Vale also says a court order for the company to pay the indigenous groups 3M reais ($796K) also was suspended.
- Ahead of the Nov. 1 spinoff of its PC and printing ops, HP (NYSE:HPQ) has named Enrique Lores, currently the head of its EMEA PC business, its new printing division chief. He replaces Stephen Nigro, who will now lead a newly-created 3D printing unit. Various lower-level executive positions have also been reshuffled.
- Both Lores and Nigro will report to Dion Wiesler, set to be the CEO of the HP Inc. PC/printing spinoff. The shakeup comes a month after HP reported its printing revenue fell 9% Y/Y in FQ3 to $5.11B, and 11 months after the company unveiled a 4-step inkjet 3D printing process (called Multi Jet Fusion) said to be both faster and cheaper than rival technologies.
- Separately, Reuters reports HP is exploring a sale of its TippingPoint security appliance unit, which sells next-gen firewalls, threat-prevention systems, and intrusion prevention systems. Sources state P-E firms have expressed interest, and that the business could fetch $200M-$300M.
- Reuters adds HP is "reviewing all parts of its business to find assets that may not fit into the separate companies" created by its breakup. Corporate security appliance demand has been healthy, thanks in part to a string of high-profile cyberattacks, but the market is also intensely competitive. Notable players include Cisco, Check Point, Juniper, Palo Alto Networks, Fortinet, and FireEye.
- CB&I (NYSE:CBI) says it has won the contract to perform early engineering and services work for a petrochemical plant a U.S.-Korean joint venture is planning in Louisiana.
- CBI is the first major contractor brought on board by the joint venture of Axiall and South Korea’s Lotte Chemical that plans to build an ethane cracker plant expected to produce ~1M metric tons/year of ethylene; a final investment decision on moving forward with the project is expected by year's end.
- The companies are not releasing project and contract costs, but new ethane crackers typically are multibillion-dollar projects.
- TV station operator Media General (NYSE:MEG), up 1.2% after hours, has set Sept. 14 as the broadcast debut of its original show Hollywood Today Live, a one-hour daily news/variety program.
- The show will air in 12 markets of Fox Television Stations (FOX, FOXA), along with 33 of Media General's markets. As a Web show, it provided celebrity interviews; now it will produce TV from a street-level studio overlooking Hollywood and Vine.
- Media General had hired a head of programming last month to amp up its original content, including the push for Hollywood Today Live.
- Previously: Media General hires programming chief to boost original content (Aug. 11 2015)
- The FCC will be able to start the "shot clock" on Charter Communications' (CHTR +1.1%) buyout of Time Warner Cable (TWC +1%), having approved protective orders that can begin a comment cycle.
- The approvals came despite at least partial dissent from the two Republican commissioners, Ajit Pai and Michael O'Rielly.
- The disputed portions cover the protection of sensitive deal-related information, which drew attention during the deal reviews for AT&T/DirecTV and Comcast/TWC.
- S&P +0.06%.
- 10-yr +0.02%.
- Euro -0.78% vs. dollar.
- Crude -0.94% to $45.85.
- Gold -0.04% to $1,133.30.
- Prestige studio Miramax, previously rumored to be exploring a sale, has hired Morgan Stanley to find a buyer, Bloomberg reports.
- Qatari investment bank QInvest will co-advise on the process, which is said to start formally after the Labor Day holiday. The studio is part-owned by Qatar through the country's sovereign wealth fund.
- Miramax could be looking for up to $1B after its current owners bought it from Disney for $660M in 2010, and bidders could include streaming services like Hulu (CMCSA, DIS, FOX, FOXA), Netflix (NASDAQ:NFLX) or Amazon.com's Instant Video (NASDAQ:AMZN), or studios like MGM or oft-rumored buyer Lions Gate (NYSE:LGF).
- Miramax's most recent release is Mr. Holmes, with Ian McKellen as famed detective Sherlock Holmes, and it currently produces From Dusk Till Dawn, the TV adaptation of the film now in its second season on the El Rey network.
4:49 PM| 4:49 PM | 2 Comments
- Lannett (NYSE:LCI) +15.2% AH on news it has agreed to acquire Kremers Urban Pharmaceuticals, the U.S. specialty generic pharmaceuticals subsidiary of UCB S.A., for $1.23B, plus potential contingency payments.
- LCI sees the deal as accretive to adjusted EPS in FY 2016 in the mid- to high-single digits and 20%-25% in FY 2017, and expects to receive a significant tax benefit with a value in excess of $100M.
- The companies say they expect to reap $40M/year in overlapping costs after the third year following the merger.
- Ooma (NYSE:OOMA) posted a beat on top and bottom lines in its first earnings report since going public in mid-July.
- GAAP loss of $3.4M came to -$0.80/share, vs. a year-ago loss of $1.1M (-0.48/share). Non-GAAP net loss of $2.5M (-$0.58/share) beat an expected -$0.99/share.
- Revenue breakout: Subscription and services, $17.4M (up 37%); Product and other, $3.7M (down 8%). Core user revenue was up 29% Y/Y, and subscription recurring revenue growth was 37%.
- The company reported cash and equivalents of $59.2M as of July 31. It netted proceeds of about $57M from the IPO; having closed at $8.95, shares are down about 45% from their IPO price of $13.
- Conference call to come at 5 p.m. ET.
- Press Release
- Michael K. Simon, LogMeIn's (NASDAQ:LOGM) CEO for the last 12 years, is stepping down at year's end. COO Bill R. Wagner will replace him. Simon will remain chairman and "serve in an advisory role to Wagner."
- LogMeIn uses the announcement to affirm the Q3 and 2015 revenue/EPS guidance it provided on July 23.
- Boeing (NYSE:BA) reportedly delivered 14 of its 787 Dreamliners in August, exceeding its target of 10 per month for the second straight month and suggesting strong financial performance later in the year.
- The tally, likely to be confirmed by Boeing tomorrow, means the company has managed to deliver an average of more than 11 of the planes per month YTD, putting it on track to easily meet its target of 100 for 2015.
- The high delivery suggests Boeing likely is bringing in additional cash, since the bulk of payment comes when planes go to customers, and likely will please investors, who are closely watching Boeing's cash generation.
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