Today - Friday, March 6, 2015
- Domtar (UFS +3.6%) shoots higher following headlines that the company received a favorable ruling from the International Trade Commission in the preliminary phase of anti-dumping and countervailing duty investigations concerning certain uncoated paper from Australia, Brazil, China, Indonesia and Portugal.
- Other paper packaging stocks are lower: IP -0.9%, PKG -1.9%, RKT -1.7%, MWV -1.8%, KS -1.5%.
- With the Nasdaq down 1.1%, major tech decliners are outpacing major gainers by a sound margin.
- Notable gainers include gaming headset maker Turtle Beach (HEAR +6.8%), Chinese data center owner 21Vianet (VNET +3.6%), wireless charging tech developer Energous (WATT +2.7%), Chinese online retailer LightInTheBox (LITB +5.6%), and solar microinverter maker Enphase (ENPH +5.9%).
- Notable decliners include ultracapacitor maker Maxwell (MXWL -6.6%), healthcare IT giant Cerner (CERN -3.8%), enterprise storage hardware vendor Quantum (QTM -6%), cloud SMB marketing software vendor Constant Contact (CTCT -4.6%), 3D measurement/imaging system maker FARO Technologies (FARO -5.4%), PC/mobile peripherals giant Logitech (LOGI -4.6%), and cloud security/compliance software vendor Qualys (QLYS -4.2%).
- Energous is up 12% over the last two trading days; its Q4 report arrives on Monday afternoon. Maxwell was up sharply yesterday on an insider buy. Cerner closed yesterday near an all-time high of $73.24.
- Previously covered: YY, Finisar/JDS Uniphase, Violin Memory, Crossroads, Skullcandy, Neustar, Synacor, CyberArk, Autohome/Bitauto, Wave Systems
- The FDA approves Astellas Pharma's (OTCPK:ALPMF) (OTCPK:ALPMY) QIDP-designated Cresemba (isavuconazonium sulfate) for the treatment of adult patients with invasive aspergillosis and invasive mucormycosis.
- Aspergillus is a fungus whose spores are present in the air we breathe. It's normally harmless but can cause disease in people with weakened immune systems, damaged lungs or allergies. The variety of these disease is called aspergillosis.
- Mucormycosis is caused by fungi in the order Mucorales. It can affect multiple parts of the body and is characterized by a variety of symptoms such as headache, facial pain, fever and nasal congestion that progresses to black discharge.
- Both conditions are rare, but serious.
- The agency designated Cresemba a Qualified Infectious Disease Product for the treatment of invasive aspergillosis in 2013. In addition to reaping the benefits of Fast Track review, it will have an additional five-year period of market exclusivity.
- Precious metals miners are bludgeoned as April Comex gold tumbles 2.7% to $1,164.30/oz. for its lowest settlement of the year so far.
- The culprit was the upbeat February jobs report, which sparked fears that the improving economy will prompt the Fed to hike interest rates sooner rather than later.
- ABX -6%, GG -6.6%, NEM -7.9%, AU -6.1%, AUY -6.6%, KGC -7.8%, SLW -3.4%, GOLD -5.4%, EGO -5%, GFI -7.9%, HL -10.4%, RGLD -8.6%, FNV -3.2%, NG -4.3%, SBGL -6.4%, PAAS -4.3%,BTG -6.5%, IAG -6.2%, AUQ -5.6%, AGI -2.8%.
- Precious metals ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, GLTR, DGZ, DGLD, AGOL, DBP, WITE, TBAR, USV, UBG, JJP, BAR, GYEN, GEUR, BARS, RGRP, BLNG
- Precious metals mining ETFs: GDX, NUGT, DUST, SIL, GLDX, SLVP, RING, SGDM, PSAU, GDXX
- As many industry sources expected, particularly after he recently left his government job, Andy Lack is coming back to NBC News (NASDAQ:CMCSA) to settle the waters.
- Lack -- who ran NBC news from 1993-2001 -- will take over as chairman of NBC News and MSNBC. Patricia Fili-Krushel will take an undetermined role on NBCUniversal chief Steve Burke's team; NBC News president Deborah Turness will report to Lack.
- CNBC will report straight to Burke, though.
- Lack was rumored to be returning as NBC News faced ratings challenges at some programs as well as staffing issues and journalistic firestorms, particularly around suspended anchor Brian Williams and his Iraq reporting.
- Previously: Variety: Lack may return to lead NBC news division in shakeup (Mar. 03 2015)
- Previously: NBC suspends Williams from top-rated 'Nightly News' for six months (Feb. 10 2015)
- Wave Systems' (NASDAQ:WAVX) $2.7M (49%) Q4 Y/Y revenue drop had much to do with a $2.3M decline in OEM software bundling revenue, which in turn was largely due to declining software shipments to Dell. For the whole of 2014, Dell OEM software revenue fell by $4.5M.
- Q4 billings totaled $2.9M, down from $3.4M in Q3 and $5.4M a year ago, and even with revenue. OEM billings and license/maintenance billings respectively fell by $2M and $500K Y/Y.
- Operating expenses fell 22% Y/Y to $7.2M. Prior to the receipt of a $3.3M in net proceeds from a stock/warrant offering, Wave ended Q4 with $1.8M in cash, down from $4.3M in Q3 and $2.1M a year earlier. The deferred revenue balance stood at $5.1M.
- On the CC (transcript), CEO William Solms admitted he now thinks his "original estimate of being cash flow positive by the end of 2014 was overly optimistic." He argued salesforce changes and Wave's Virtual Smart Card 2.0 software will provide a lift in 2015.
- Q4 results, PR
- After skyrocketing over the last two days in response to Autohome's (ATHM -7.9%) Q4 beat and Q1 guidance, Autohome and fellow Chinese online auto play Bitauto (BITA -9.4%) are among Friday's biggest tech decliners. Autohome has seen 1.01M shares traded vs. a 3-month daily average of 662K; Bitauto has seen 1.31M shares traded vs. a 3-month daily average of 1.03M.
- Bitauto reports on Monday morning; the company trades for 29x 2015E EPS, and has a 40.9% 2015 revenue growth consensus. Autohome also trades for 29x 2015E EPS, and has a 48.9% 2015 revenue growth consensus; its estimates have risen sharply post-earnings.
- Analysts are praising strategies Pandora Media (NYSE:P) laid out at investor day, though a few key updates were missing, even as competition intensifies from the likes of Apple and Spotify.
- Pandora might look at an on-demand product a la Spotify -- raising the "interesting" possibility of making Pandora a "one-stop shop for users' acoustic demands," says RBC's Mark Mahaney.
- A key Copyright Royalty Board ruling won't come until December, but it will dictate what Pandora will pay for about 90% of the content it provides subscribers. The company had no updates on progress there, though the decision is a ways off.
- "We believe the CRB outcome will be positive," says Pacific Crest's Andy Hargreaves, "but a (stock) overhang is likely to persist. We believe the most likely outcome from the CRB rate proceeding is status quo pricing or lower."
- On competition: "Among U.S. ad-supported digital properties, Pandora trails only Facebook in total engagement and the company's algorithms have demonstrated a consistent ability to defend the business against competitors."
- Pacific Crest had an Outperform rating on Pandora with a price target of $45. RBC Capital has a Buy and on Monday set its price target at $25.
- Shares are -0.4% today to $15.35; they've lost 58.8% over the past 12 months.
- Related: Another Competitor For Pandora To Deal With (Mar. 03 2015)
- Related: Pandora Can Survive Apple, But Does That Make It A Good Investment? (Feb. 12 2015)
- Fiat Chrysler Automobiles (NYSE:FCAU) CEO Sergio Marchionne received €6.6M ($7.2M) in total compensation last year, according to a new SEC filing.
- The pay level worked out to a 83% improvement from what the auto industry veteran earned in 2013.
- Marchionne had a very active year in which he guided Fiat's merger with Chrysler and set ambitious sales goals.
- He is expected to stay on as CEO until at least the end of 2018.
- SEC Form 20F
- Piper's Andrew Nowinski has launched coverage on CyberArk (NASDAQ:CYBR) with a Neutral rating and $54 target (14% below Thursday's close).
- In spite of the cautious target, Nowinski has plenty of good things to say about CyberArk. "First, we believe CyberArk is one of the few vendors that can effectively secure 'privileged accounts,' which are essentially 'keys to the kingdom.' Second, CyberArk offers one of the most comprehensive platforms in the industry ... We also believe the increased adoption of CyberArk’s other products should lead to an acceleration in billings growth."
- However, he's also worried "CyberArk’s total addressable market is still small and requires significant education, which could lead to extended sales cycles and lumpy revenue growth."
- Shares remain up 69% from A Feb. 9 close of $36.09, but are now down 14% from a Feb. 20 high of $70.48. They trade for 11x a (quite possibly conservative) 2016 sales consensus of $165.9M.
- The U.S. rig count declined by 75 this week to 1,192, picking up the pace from last week's 43 rigs taken out of service, the 13th consecutive week of total decline and the lowest reading since the week ending Dec. 31, 2009, according to the latest survey from Baker Hughes (NYSE:BHI).
- Drillers idled 64 oil rigs to 922, the lowest number of oil rigs in use since April 2011 and down 43% since October.
- Per drilling region, the biggest decline came from Texas' Permian shale basin, where 22 rigs were shut down, while 8 Eagle Ford rigs were shut.
- ETFs: USO, OIL, UCO, SCO, BNO, UGA, DTO, DBO, UWTI, USL, DWTI, UHN, DNO, SZO, OLO, TWTI, OLEM
- Melbourne, Australia-based Genetic Technologies (GENE -20.8%) raises AUD$18.6M (US$14.3M) from U.S.-based investors via its offer of 3,333,333 American Depositary Shares (ADSs) representing 499,999,950 ordinary shares. Each ADS represents 150 ordinary shares.
- Net proceeds will fund the commercialization of BREVAGenplus, the company's refocus on the U.S. molecular diagnostics market and working capital.
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