Today - Saturday, October 3, 2015
- Laureate Education (LAUR) files for an $100M IPO. The deal size could eventually be pushed to as high as $1B, according to Renaissance Capital.
- The for-profit education company reported revenue of $4.414B in 2014 and operating income of $299.5M. Also of note, Laureate Education has a close prior association with Bill Clinton and the Clinton Global Initiative.
- KKR (NYSE:KKR) was a lead investor in the group that took Laureate private in 2007.
- SEC Form S-1
- An UAW union repping workers at a Ford (NYSE:F) plant in Missouri reached a tentative agreement with the company.
- Workers still need to vote on the deal which covers employment conditions, not wage levels being negotiated on a national level.
- The development is crucial for Ford as the Kansas City-area plant is a major producer of the new F-150. Any slowdown in production would create a ripple of worry with F-150 sales continuing to ramp up.
- Overall F-Series U.S. sales were up 16% to over 69K units in September. The F-Series has delivered over 564K U.S. YTD.
- Incoming Volkswagen (OTCQX:VLKAY) chairman Hans Dieter Poetsch called the crisis surrounding the company as "existence-threatening" in an interview with a German publication, although he still thinks VW will survive.
- One of the biggest challenges for Poetsch and the VW board is how deeply to cut into Volkswagen's investment budget in order to try to stave off credit agency downgrades. Number-crunching on the benefit of lower debt costs against missed R&D opportunities is expected to hit overdrive.
- There's also been some speculation that Volkswagen might consider asset sales (Bugatti, Ducati, Man, Seat, Lamborghini) in order to improve its balance sheet in the face of emissions scandal costs. A smaller Volkswagen runs counter to Fiat Chrysler (NYSE:FCAU) CEO Sergio Marchionne's thesis (Confessions of a Capital Junkie) that major manufacturers need to scale up off of shared platforms, but could also create some intriguing M&A potential.
- Previously: Spurned Fiat Chrysler to wait for right merger deal (July 15)
Friday, October 2, 2015
- Tesla's (NASDAQ:TSLA) Q3 deliveries were up just slightly from Q2's 11,532 - a one-week planned production shutdown weighed - but up 49% Y/Y and in-line with guidance for deliveries to be nearly flat Q/Q.
- The deliveries are said to include the first ones for the recently-unveiled Model X. In its Q2 shareholder letter, Tesla forecast 50K-55K deliveries for the whole of 2015.
- TSLA -0.6% after hours to $246.00.
- Jordan Spieth was named PGA Tour Player of the Year today after a dominating season.
- Spieth's accomplishment continues a red-hot streak for Under Armour's (NYSE:UA) list of endorsers, which is short on quantity compared to Nike and Adidas, but long on recent accomplishments. During this calendar year, UA endorser Tom Brady won the Super Bowl MVP, Stephen Curry surprised with the NBA MVP, and Bryce Harper is considered a strong favorite for the MLB MVP to be awarded in November.
- Sports industry analysts have estimated that the market benefit of the performance of the Under Armour stars could be in the hundreds of millions.
- Staples (SPLS +0.9%) says it will try to sell more in fewer hours this Thanksgiving holiday.
- The company will keep stores closed completely on Thanksgiving in a move opposite of the trend in retail to bring employees in earlier each Turkey Day.
- Staples will still be ringing up a decent amount of sales on Thanksgiving as it ranks third in the U.S. in e-commerce sales volume.
- Staffing stocks trade lower after today's jobs report painted a weaker employment picture than anticipated.
- The biggest movers in the sector are Barrett Business Services (BBSI -4.3%), ManpowerGroup (MAN -3.4%), Kelly Services (KELYA -2.4%), and Robert Half International (RHI -2.4%).
- Previously: Staffing stocks on the radar after weak jobs data (Oct. 02 2015)
2:11 PM| 2:11 PM | 1 Comment
- Good Time Restaurants (GTIM -0.6%) reports strong same-store sales growth for its brands during FQ4.
- Same-store sales were up 6.8% at both the Bad Daddys Burger Bar and Good Times Burgers & Frozen Custard chains.
- The company is still on track with its plan to open eight to ten Bad Daddys Burger Bar restaurants in 2016.
- Good Times trades at $6.21 vs. a 52-week trading range of $4.81 to $10.19.
- It's a big day for companies with an association to gambling and tourism in China after reports of increased cooperation from the government set off some buying enthusiasm.
- Outside of the main group of Macau casino names, gainers today include Qunman Cayman (NASDAQ:QUNR) +10.4%, Ctrip (NASDAQ:CTRP) +5.7%, Iao Kun Group (NASDAQ:IKGH) +4.1%, Galaxy Entertainment (OTCPK:GXYEF) +8.5%, and Tunio (NASDAQ:TOUR) +6.4%.
- Previously: Beijing to the rescue in Macau
- Previously: Huge rip for Wynn Resorts amid sunny day in Macau
- Wynn Resorts (NASDAQ:WYNN) is now up 16% to climb back over $60 after setting a series of successive five-year lows in September.
- While the entire Macau sector is ripping gains on reports that Beijing is warming up to supporting the gaming sector, Wynn is making the most dramatic move.
- The support of the Chinese government in helping to drive mass market traffic to Macau is seen as essential amid the financial troubles of junket operators in the VIP realm.
- Previously: Beijing to the rescue in Macau
- South Korea has selected nine potential locations to allow development of foreigner-only casino complexes. Only two of the sites will eventually be selected by the Ministry of Culture, Sports and Tourism.
- The list of gaming companies with a potential interest in developing casinos in South Korea includes Genting Singapore (OTCPK:GIGNY, OTCPK:GIGNF), Wynn Resorts (NASDAQ:WYNN), Caesars Entertainment (NASDAQ:CZR), and Mohegan Sun.
- Analysts see a minor economic benefit to the South Korean economy if the project comes to fruition.
- Related ETFs: EWY, FKO.
- Neiman Marcus (Pending:NMG) eliminated 500 corporate and support jobs as it looks to get lean ahead of its IPO, although there are questions now on if the company will go public this year or next.
- Reports from yesterday indicate the department store operator is dragging its feet in handing out IPO roles to eager bankers.
- Delta Air Lines (DAL -3.2%) reports revenue passenger miles rose 2.4% to 17.356B in September. RPMs for Delta in the U.S. were up 4.5% during the month.
- Capacity rose 0.9% to 20.429B available seat miles as international capacity was tightened.
- September load factor +130 bps to 85.0%.
- YTD load factor -40 bps to 84.9%.
- Previously: Airline stocks lose altitude (Oct. 02 2015)
- Hennes & Mauritz (OTCPK:HMRZF, OTCPK:HNNMY) has filed a lawsuit against Forever 21 over coopyright infringement, reports Just-Style.com.
- The case is of interest because it involves allegations of the use of a copycat manufacturer in China. Large fashion manufacturers have been looking for ways to stem the number of products out of China that infringe on product rights.
- Forever 21 operates over 700 stores, with a majority located in the U.S.
- Airline stocks are weaker than broad market averages on heightened concerns of a weak U.S. economy and in reaction to guidance from Delta.
- The slide in the sector comes even with crude oil dropping back below $45.
- In a new SEC filing, Delta says it sees Q3 operating margin of 20% to 21% and passenger unit revenue growth of -4.5% to -5.5%.
- Leading decliners in the sector in early trading are Delta Air Lines (DAL -3.5%), JetBlue Airways (JBLU -3%), Hawaiian Holdings (HA -3.7%), and American Airlines Group (AAL -2.9%).
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