Seeking Alpha
  • Wednesday, October 1, 2014

  • 6:33 PM
    • A Delaware jury has ruled Philips (PHG -2.2%) should pay Masimo (MASI +12.9%) $466M for infringing patents related to fingertip devices that measure blood oxygen and pulse rates. It also cleared Masimo of infringing a Philips patent.
    • Philips will almost certainly appeal the ruling, which has led Masimo shares to soar.
    • Masimo originally sued Philips in 2009. Philips has been arguing Masimo's patents are invalid due to the obviousness of the technology, and because the patent filings were poorly written.
    | 1 Comment
  • 6:00 PM
    • Digital Ally's (NASDAQ:DGLY) shelf filing allows Hudson Bay Capital to sell up to 1.19M shares. The shares are tied to an August private placement in which both convertible notes (due 2016) and a common stock purchase warrant were issued to Hudson Bay.
    • Though down 57% from a Sep. 2 high of $33.59, DGLY remains well above where it traded at the time of the private placement.
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  • 5:42 PM
    • Activist investor Starboard Value has disclosed a 9.9% stake in RealD (NYSE:RLD), and has offered to buy the rest of the company for $12/share. The price represents a 29% premium to RealD's Wednesday close.
    • Starboard says it doesn't believe RealD is "best positioned to execute against its future opportunities as a public company," and thinks its near-term performance "may suffer given the challenged release schedule for 3D films."
    • Shares are at $11.48 AH.
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  • 5:36 PM
    • Top gainers, as of 5:15 p.m.: ESPR +33.5%. ANR +9.0%. GLOG +6.0%. XON +5.0%. HW +4.9%.
    • Top losers, as of 5:15 p.m.: WILN -13.4%. CGA -9.3%. AGU -4.6%. DYN -3.6%. INVN -2.4%.
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  • 5:28 PM
    • Agrium (NYSE:AGU) -4.5% AH after saying it expects Q3 EPS from continuing operations of $0.45-$0.55, below analyst consensus estimate of $0.74, and Q4 EPS from continuing operations to be similar to results from the year-ago Q4 adjusted EPS of $0.72, also below consensus of $1.03.
    • AGU expects the EBITDA contribution from its wholesale operations in H2 2014 to be similar to last year's results, and H2 retail EBITDA is anticipated to be in-line with the record EBITDA achieved in the same period last year.
    • Other fertilizer companies also are lower AH: POT -2.4%, MOS -1%, CF -0.3%.
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  • 5:03 PM
    • In a 348-patient Phase 2b clinical trial, Esperion Therapeutics' (ESPR -0.2%) product candidate for hypercholesterolemia, ETC-1002, achieved the primary endpoint of greater LDL-cholesterol lowering from baseline compared to ezetimibe.
    • In patients who received ETC-1002 as monotherapy, the group treated with doses of 120 mg demonstrated a 27% reduction in LDL-cholesterol. Those treated with doses of 180 mg showed a 30% reduction. Both results were statistically significant compared to ezetimibe alone.
    • Patients who received the combination of 120 mg of ETC-1002 and 10 mg of ezetimibe showed a reduction in LDL-cholesterol of 43% and those who received 180 mg of ETC-1002 plus 10 mg of ezetimibe showed a reduction of 48%. The results were also statistically significant compared to ezetimibe alone.
    • ETC-1002 as a mono or combo therapy showed greater reductions in the coronary disease inflammation biomarker high-sensitivity C-reactive protein (hsCRP) compared to ezetimibe.
    • Shares are up 37% AH on average volume.
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  • 5:01 PM
    • Apple (NASDAQ:AAPL) has been granted its motion for summary judgment on invalidity and non-infringement in its patent battle against Wi-Lan (NASDAQ:WILN). The motion covers two 4G Wi-Lan patents asserted against Apple.
    • Wi-Lan says it's "reviewing the ruling" with its law firm. The company also notes it has a second suit against Apple, through which it's alleging the infringement of 5 4G patents.
    • A number of other patent licensing firms have also received adverse rulings in recent months.
    | Comment!
  • 4:13 PM
    • TrueCar (TRUE +2.5%) has rallied on a weak day for equities after top automakers generally posted healthy September sales figures, aided by strong truck demand. Autodata believes U.S. car/truck sales rose 9% Y/Y to 1.2M.
    • For its part, TrueCar estimates the average transaction price for U.S. light vehicle sales fell 1.9% M/M and 1.4% Y/Y to $31,014. Industry incentive spend per vehicle is estimated to have totaled $2,801, down 6.2% M/M but up 13.1% Y/Y.
    • "The industry is operating within healthy post-recession levels," says TrueCar exec Larry Dominique. "We'll be watching incentive levels for unhealthy behavior as brands look to steal some year-end market share."
    | Comment!
  • 3:16 PM
    • Westport Innovations (WPRT -25.1%), already reeling after cutting its revenue guidance, is downgraded to Hold from Buy with a $20 price target, down from $45, at Lake Street Capital.
    • WPRT had made strides in reducing costs and introducing next-generation products, the firm says, but the launch of key new programs - Volvo and Weichai-HPDI - now looks to be pushed out 12 months as HPDI 2.0 injectors are launched and incorporated into engine designs.
    • Lake Street believes several months could pass before improvement is clear, with limited near-term catalysts and lower growth ahead while WPRT works through the transition; shares can recover later in 2015 as WPRT executes and demonstrates resumed revenue growth and new engine rollouts.
    | 1 Comment
  • 2:58 PM
    • Cliffs Natural Resources (CLF -5.6%) plunges to a new 52-week low despite releasing a sustainability report which says it has reduced the number of environmental incidents by more than 75% since the start of 2012 continued to improve quality-related performance of non-conforming cargoes for its North American iron ore operations.
    • Wells Fargo issues a negative view of CLF which takes its valuation range for the shares down to $4-$7 from its prior range of $7-$10 range amid falling iron ore prices and the company’s high-cost structure.
  • 2:00 PM
    • Activist investor Relational Investors "plans to wind down its operations and dissolve its current funds by the end of next year," the WSJ reports. A new fund with the same name is expected to be be eventually launched, but founders Ralph Whitworth and David Batchelder "will cede day-to-day control."
    • The report comes after Whitworth took a leave of absence in July to focus on his health.  Relational has $6B in assets under management.
    • Many of the companies Relational holds positions in have added to their Wedenesday losses following the report: MHR -6.8%. CLH -5.9%. MTW -4.3%. SPW -3.7%. BEAV -3.5%. TKR -3%. HOLX -2.8%. PMCS -3.6%.
  • 1:41 PM
    • Concerns about the Ebola case in Dallas have contributed to a downward swing in hotel stocks
    • The group has been one of the harder hit sectors on the day.
    • Decliners: Starwood Hotels (NYSE:HOT) -3.8%, Hyatt Hotels (NYSE:H) -3.1%, Hilton Worldwide (NYSE:HLT) -1.4%, Diamond Resorts (NYSE:DRII) -3.0%, InterContinental Hotels Group (NYSE:IHG) -2.6%, Wyndham Worldwide (NYSE:WYN) -3.3%, La Quinta (NYSE:LQ) -1.7%, Marriott International (NASDAQ:MAR) -3.5%, Red Lion Hotels (NYSE:RLH) -2.3%, Choice Hotels International (NYSE:CHH) -2.3%.
    • Previous coverage on Ebola impact
  • 1:20 PM
    • Volatile and heavily-shorted 3D printing names are among the bigger decliners as the Nasdaq posts a 1.4% drop. Volumes for several names are already near or above their 3-month daily averages.
    • ExOne (XONE -10.6%) has tumbled to a fresh post-IPO low, and Voxeljet (VJET -3%) is close to its post-IPO low of $12.85. Also selling off: DDD -4.5%. SSYS -5.2%. CAMT -8.7%. ONVO -3.8%. OTCPK:AMAVF -5.9%.
  • 1:01 PM
    • DARTs of 577K gained 17% from August and 21% from one year ago.
    • Ending customer equity of $54.9B up 33% Y/Y.
    • 272K customer accounts up 18%.
    • Ending customer margin loan balances of $17.3B up 36%.
    • Source: Press Release
    • IBKR is up 0.6%, managing a gain today amid 1%+ drop in the broader market.
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  • 12:46 PM
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  • 12:46 PM
    • Globalstar (NYSEMKT:GSAT) has tumbled amid rumors Kerrisdale Capital is about to disclose a short position.
    • Kerrisdale has a long history of sparking selloffs with bearish columns.
  • 12:33 PM
    • The New York Times (NYT +8.6%) plans to cut about 100 newsroom jobs - roughly 7.5% of the staff - along with a smaller number of positions from its editorial and business operations as the paper "continue(s) to invest in the digital future."
    • Additionally, NYT Opinion, a mobile app dedicated to opinion content, is shutting down due to lack of subscriber interest.
    • The company also notes financial results in Q3 are improved from Q2's weakness, with digital advertising looking to show growth of 16% - the best quarterly gain since 2010 - and digital subscriptions up 40K, the largest amount since 2012.
  • 12:21 PM
    • Jason Kelly, most recently the CEO of e-commerce ad sales firm Sociomatic, has been named the president of Millennial (NYSE:MM) Managed Media business. That puts him in charge of the struggling mobile ad network owner's "global brand and performance sales teams."
    • Kelly has also held senior sales roles at Time, Virgin America, and Google-acquired Admeld. His hiring follows the departure of sales EVP Mollie Spilman to Criteo, and comes on the heels of Millennial's deal to purchase programmatic mobile ad tech provider Nexage.
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  • 12:17 PM
    • Growing fears of Ebola highlighted by the first diagnosed case in the U.S. yesterday LAKE)+Surges+on+Expected+Rise+in+Demand+for+Hazmat+Suits+Amid+U.S.+Ebola+Case/9875400.html" target="_blank">continue to move Lakeland Industries (LAKE +10.6%), a provider of industrial protective clothing.
    • It was about three weeks ago - in response to Ebola - when the company went global with its product availability and boosted its manufacturing capacity.
    | 1 Comment
  • 12:15 PM
    • Frontline (FRO +15.1%) powers higher after teaming with Tankers International to form a new company, VLCC Chartering, to create a larger fleet with more flexibility and more options for cargo owners and a single point of contact.
    • VLCC Chartering will have a combined fleet of nearly 60 large tankers, which means it will control nearly 10% of the 639-ship market.
    • The new venture is expected to reduce voyage related expenses and improve net earnings of the very large crude carriers operated by both companies.
    | 1 Comment
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