In an operations update, BPZ Energy (BPZ -1.5%) says that while it foresees lower Q3 production rates at Block Z-1, it expects output from new wells and improved rates resulting from its gas lift program will allow for improved levels of production and cash flow at year's end.
Brean Capital reiterates its Buy rating and $4 price target even as it cut its FY 2014 production expectations to 2,690 boe/day vs. its earlier outlook for 3.1K boe/day after BPZ says overall production so far in Q3 averaged 2,387 boe/day.
Piper reports 3D Systems (DDD +1.9%) has landed a deal with GM that could be worth $6M-$8M. Shares have spiked higher in response.
Analyst Troy Jensen: "To our knowledge Detroit experienced significant rainfall over a short period of time and this caused a flood in General Motors' Rapid Prototyping facility ... This ultimately ruined multiple machines and we believe General Motors purchased or ordered 11 iPro 8000s (list for roughly $600K) and a couple of SinterStation machines in the September quarter."
By itself, the deal doesn't move the needle significantly for 3D Systems: The company's 2014 and 2015 revenue consensus estimates are respectively at $708.8M and $926.2M.
Alibaba (BABA -2.5%) is now down 5% from a post-IPO opening trade of $92.70, and 12% from a peak (reached shortly afterwards) of $99.70. Shares are still up 29% from their $68 IPO price.
The decline comes even as bullish notes from non-underwriters continue to arrive. Rosenblatt Securities forecasts Alibaba's sales will rise 48% in FY15 (ends March '15) to $12.51B, and declares the Chinese e-commerce market is still in its early stages.
Rosenblatt highlights the transformative impact Alibaba's Taobao site (estimated to account for ~60% of China's e-commerce GMV) is having on a deeply fragmented Chinese retail scene. "The key significance of Taobao in the China market is that it is connecting merchants/consumers across what have been sharp geographic boundaries ... the majority of the Chinese population is not practically reachable from a physical retail reach standpoint."
Quartz recently made similar points. "China’s logistics system is governed by nine separate ministries and commissions ... Thanks to high transaction costs, no trucking firm has yet established a nationwide network ... As of 2008, China had only 549,000 retail enterprises, compared with the US’s 1.1 million ... For any customers outside the very biggest cities, product selection was dismal. Online shopping revolutionized that."
MKM launched coverage with a Buy and $125 target yesterday. The firm praised Alibaba's business model and dominant market position, and noted there's plenty of room for the company to grow its active buyer count (currently 279M), given China's size. At the same time, concerns were raised about Alibaba's complex ownership structure and near-term mobile monetization.
Later this year, the company intends to start a Phase 2b clinical trial evaluating aramchol in 240 NASH patients who also suffer from obesity and insulin resistance. If successful, it will serve as the basis for a pivotal Phase 3 trial.
Making a lot of noise of late as it tries to become the E*Trade or Interactive Brokers of China, China Finance Online (JRJC +17.3%) announces a partnership with Zhongshan Securities, integrating China Finance's web-based trading platform with Zhongshan's trading and settlement system.
The new alliance with one of China's oldest and respected securities firms, says JRJC, will allow customers to easily create new trading accounts and get highly competitive commission rates.
NQ Mobile has soared in early trading amid rumors China's Bison Capital is still interested in taking the company private at $9.80/share, per the terms of its "non-binding" offer. NQ originally disclosed Bison's offer on July 30.
16.2M shares were shorted as of Aug. 29, making a squeeze easy to come by. NQ remains 35% below Bison's offer price.
Peabody Energy (BTU +3.9%) opens higher after reporting higher expectations for Q3 EBITDA, now seeing a range of $190M-$210M, which BTU says reflects strong cost improvements and operating results.
BTU says it is experiences higher than expected results from the western U.S., improved performance from Australian metallurgical coal mines and continued cost reductions across the platform.
Also updates Q3 EPS targets to a loss of $0.63-$0.69 from prior expectations for a loss of $0.40-$0.53, primarily reflecting the effects of non-cash tax expense following the repeal of the Minerals Resource Rent Tax in Australia.
MagneGas (NASDAQ:MNGA) announces that it has received formal confirmation from the Special Operations Command of the NY Fire Department that it has begun final testing of MagneGas for use as a replacement to acetylene.