Seeking Alpha
  • Today - Tuesday, July 7, 2015

  • 8:03 PM
    • NovaGold (NYSEMKT:NG) slid 8.2% today ahead of a Q2 report where it posted a loss flat from the year-ago quarter, as it pursues permitting for its Donlin Gold project and technical studies on its Galore Creek project (each 50%-owned).
    • The company reported cash and term deposits of $134.7M, down from $165.3M on Nov. 30, mainly due to repayment of $15.8M in convertible notes.
    • NovaGold says that's sufficient capital to cover its share of funding for its Donlin Gold (Alaska) and Galore Creek (Northern Alberta) projects. It expects to spend $44.8M in 2015, including the $15.8M repayment. Some $30.6M of the planned $44.8M amount was spent by May 31.
    • Shares are up 35% from a November's 52-week low, but are down 21.5% over the past month.
    • Conference call tomorrow at 11 a.m. ET.
    • Press release
    • 10-Q filing
    | Comment!
  • 7:21 PM
    • After trading down much of the day, broadcast company TEGNA (NYSE:TGNA) finished up 3% following a boosted price target from Evercore ISI.
    • The analysts bumped the target slightly, to $33 from a previous $32. After closing yesterday at $30.60, shares rose to close at $31.52 today.
    • Shares were downgraded last week by Jefferies Group, to Hold, just three days after it initiated coverage at Buy.
    • Previously: Gannett completes split into print, broadcast firms (Jun. 29 2015)
    | 1 Comment
  • 6:41 PM
    • Bloomberg reports Symantec (NASDAQ:SYMC) is "nearing a deal" to sell its Veritas storage software unit (currently set to be spun off) to P-E firm Carlyle (NASDAQ:CG) for $7B-$8B. For reference, Symantec closed today with a $15.4B market cap.
    • Deal terms are still being negotiated. Symantec hasn't been shy about its willingness to field offers for Veritas, which was acquired for $13B+ in 2005. Reuters reported in April tax concerns had hurt buyout interest.
    • Symantec has risen to $23.40 AH. The company's Information Management ops had FY15 (ended in March) revenue of $2.56B (+1% Y/Y).
    | 1 Comment
  • 6:16 PM
    • VimpelCom (NASDAQ:VIP) is among top postmarket decliners, off 3.7% after hours on a big block that came through in the past hour.
    • Shares gained 1.2% in the regular session today, bucking regional industry peers including Mobile Telesystems (MBT -2.5%) and MiMES Rostelekom (OTCQX:ROSYY -3.5%).
    • The Amsterdam-based company noted today that it's joined Nederland ICT, a trade organization for more than 550 info-tech, telecom and Internet companies in the Netherlands. The move should foster better relationships with in-country peers and help develop home-grown talent for the sectors.
    • Previously: U.S. piles in to bribery probe of Russian phone firms (Jun. 30 2015)
    | Comment!
  • 5:58 PM
    • LendingTree (NASDAQ:TREE) will replace Meadowbrook Insurance (about to be acquired) in the S&P SmallCap 600 after Thursday's close.
    • Shares have risen to $79.01 AH. The all-time high (set last Wednesday) is $79.08.
    • Two weeks ago: Needham hikes LendingTree target to $84
    | Comment!
  • 5:52 PM
    • As it awaits the first ratings from Shark Week -- also known as "Discovery Christmas" -- Discovery Communications (DISCA +2.2%) is supplying investors with red meat via some encouraging numbers in a tough overall ratings environment.
    • The company's flagship station, Discovery Channel, logged its best Q2 in viewers and men in its target demo of adults 25-54, and overall viewers. Combined with a its strong Q1, it's Discovery's best first-half primetime in the demo.
    • Nomura's Anthony DiClemente is now "increasingly confident" about a 1% gain in domestic ad sales for Q2.
    • The company's made a point this year that all Shark Week programming is true, despite the fact that its best ratings came from the fictional Megalodon: The Monster Shark Lives.
    • A carriage fight with Comcast was likely made more tense by Discovery's aggressive opposition to the now-aborted Comcast/Time Warner Cable merger.
    • Previously: Discovery Communications up as Nomura boosts target (Jul. 07 2015)
    | Comment!
  • 5:36 PM
  • 5:26 PM
    • Walt Disney (NYSE:DIS) is giving in-store demos of its technology-laced Playmation toy line in North American stores this week, and has begun accepting preorders for the toys.
    • The toys -- developed along with partner Hasbro (NASDAQ:HAS), and designed to interact with one another using infrared, Bluetooth and motion sensors and to encourage active play -- launch on Oct. 4 with a line based on Marvel's Avengers.
    • The demos will be available through launch in Disney stores, including reserved 30-minute slots for a heavier orientation with the toys.
    • Disney shares rose 1.2% today to reach a record high of $117.19. Earlier today, Atlantic Securities upgraded Disney stock to Overweight.
    • And in Star Wars news, a spinoff film focused on a young Han Solo is planned for May 25, 2018, with Christopher Miller and Phil Lord (the directing team behind The Lego Movie and the 21 Jump Street films) attached to direct.
    • Previously: Disney unveils high-tech, active-play Playmation toys (Jun. 02 2015)
    | 1 Comment
  • 4:40 PM
    • Electronic Arts (NASDAQ:EA) says it has appointed Samantha Ryan head of EA Mobile.
    • Ryan is a recent addition to the company, having joined just a few months ago. Previously she had served as senior VP of production and development at Warner Bros. Interactive.
    • In its last earnings report (fiscal Q4), EA noted that mobile revenue set a new record, contributing $524 million for the fiscal year. Monthly active users for mobile titles averaged more than 165M in Q4.
    • The company's shares rose 2.7% today and hit an all-time high heading into the close, following this morning's upgrade from UBS to Buy.
    | Comment!
  • 4:24 PM
    • The Container Store Group (NYSE:TCS) is up 6.4% after hours, following a Q1 report where net loss widened from the previous year, but beat expectations.
    • Comparable-store sale slipped just 0.9%, vs. a forecast decline of 3-4%. The company says revenues that declined 2.1% Y/Y would have been up 0.9% at least year's Swedish krona-dollar exchange rate, due to Elfa net sales. Gross margin was 58.5%, up 40 bps Y/Y.
    • Average ticket on its new custom closet offering, TCS Closets, exceeds $10K.
    • Opened its Tucson, Ariz., store May 30, and its first opening for Q2 in Overland Park, Kan., on June 27. It plans to open eight more new stores (one relocation) in the full year.
    • The company reiterated its outlook for the full year, saying it expects net sales of $800M-$815M (vs. a consensus of $815M) considering comparable-store sales growth of -2% to flat. It sees EPS of $0.30-$0.38, in line with expectations, and adjusted EBITDA of $85M-$91M vs. consensus of $76.8M.
    • Conference call at 4:30 p.m. ET.
    • Press Release
    | Comment!
  • 4:06 PM
    • The Container Store (NYSE:TCS): FQ1 EPS of -$0.11 beats by $0.02.
    • Revenue of $169.83M (-2.1% Y/Y) misses by $3.73M.
    • Shares +8%.
    • Press Release
    | Comment!
  • 4:05 PM
    • Ubiquiti (NASDAQ:UBNT) was one of the best tech performers on a day the Nasdaq rose 0.1%, gradually rallying on volume of 836K shares (above a 3-month daily average of 745K).
    • With 10M shares (37% of the float) shorted as of June 15, short-covering likely helped out. The wireless broadband/enterprise Wi-Fi hardware vendor currently trades for 16x an FY16 (ends June '16) EPS consensus of $2.02.
    | 1 Comment
  • 3:48 PM
    • Potash Corp. (POT -2.2%) reportedly would be open to raising its $8.6B bid for K+S (OTCQX:KPLUY) if the German company could reveal more value not currently seen by the Canadian company.
    • POT's €41/share bid represents a 43% premium to the average weighted price of K+S shares over the past six months, but K+S CEO Norbert Steiner has said the Legacy project alone is worth at least €21/share on top of €29 for the German company’s existing operations.
    • The market may be factoring in a better than 50-50 probability that a deal happens, but J.P. Morgan Ben Scarlett sees only a one-in-three chance of success, believing a deal would face substantial execution risk and anti-trust or other concessions.
    • The firm thinks European and North American anti-trust authorities will examine the impact of a deal in their own regions, and perhaps invoke conditions that require approval from authorities in places such as Brazil, China and India.
  • 3:37 PM
    • Mostly silent as the Germans played the "bad cop" during 2015's version of the Greek crisis, things have gotten serious enough for France to get involved, with chatter of a French official saying the ECB could provide emergency funding support for Greek banks as long as some sort of deal is in the works.
    • Always being in favor of stock market charts headed upward and to the right, the U.S. gets involved as well, with President Obama - after earlier speaking with Greek PM Tsipras - placing a call to Angela Merkel, pressuring the German Chancellor to get a deal done.
    • Down more than 1% earlier, the U.S. averages are in the green less than 30 minutes before the bell: S&P 500 (SPY +0.6%), DJIA (DIA +0.5%), Nasdaq 100 (QQQ +0.3%).
  • 3:21 PM
    • Gannett (GCI -1.5%) has reached a deal to sell its headquarters in Tysons Corner, Va., to London-based Tamares Group for about $270M.
    • The two office towers that Gannett called home were visible from the Washington Beltway and total about 785K square feet. The complex cost about $300M to build back in 2001.
    • Divesting its headquarters offers some room for cost savings as Gannett recently performed a split into its print operations and a broadcast-focused company, TEGNA (TGNA +2.3%).
    • Gannett will stay in the D.C. area; it's leasing back part of the complex on a long-term basis, but most of the building will be left to Tamares to rework.
    • Previously: After the spinoff: Gannett off 7.3%, TEGNA -3.5% after downgrade (Jul. 02 2015)
    • Previously: Gannett completes split into print, broadcast firms (Jun. 29 2015)
    | 1 Comment
  • 3:00 PM
    • A raised bid for the real estate assets of Pinnacle Entertainment (PNK +5.6%) by Gaming and Leisure Properties (GLPI -2.9%) is putting pressure on Boyd Gaming (BYD +2.9%) to think about its possibilities, says Union Gaming analyst Christopher Jones.
    • In addition, it could mean "considerable" value adjustment for MGM's regional assets, he notes.
    • MGM is now up 4.3% this afternoon. Jones rates Boyd Gaming and MGM as Buys, along with GLPI.
    • Previously: MGM, LVS, Wynn up sharply as Credit Suisse says "worst is over" for Macau (Jul. 07 2015)
    | Comment!
  • 2:49 PM
    • The Macau casino sector is defended at Credit Suisse, which says the "worst is over" for the sector as it sees a fundamental shift towards supportive policy from both Macau and the central government, and seasonally stronger months are ahead.
    • "Negatives are well-known," the firm says, noting that with fixed cost's contribution increasing, the earnings upside from a recovery should be strong; long-term investors should find the sector attractive when gross gaming revenue stops falling, which will put an end to Wall Street's earnings cut and allow investors to "refocus on the structural story" of Macau.
    • MGM +2.8%, LVS +2.8%, WYNN +5.5%, MPEL +5.3%.
  • 2:48 PM
    • The ruble has fallen to 57 against the dollar amid a steep selloff in oil prices - WTI crude is now at $52.45/barrel. The decline has fueled speculation Russia's central bank will curb foreign currency purchases.
    • QIWI is now down 29% from a May high of $35.45. The Russian online payments leader remains up 26% YTD.
    | 1 Comment
  • 2:26 PM
    • Kandi (NASDAQ:KNDI) hasn't been left out as U.S.-traded Chinese stocks post massive losses (see Internet stocks and solar stocks). The selloff follows fresh declines for mainland exchanges in the wake of an early-2015 run-up that stoked memories of the bubble.
    • The EV maker is now down 47% YTD. Yesterday, Kandi announced its EV JV with Geely has inked a contract for the sale of 4K cars - 2,500 Kandi K10 and 1,500 K11 units. The deal is worth over RMB540M ($89M); delivery is expected to be finished by year's end.
  • 2:23 PM
    • Stone Energy (SGY +5.9%) says operations at its Cardona #6 development well in the deepwater Gulf of Mexico have been proceeding ahead of schedule and below budget, and drilling has been completed through the targeted zones.
    • SGY expects Q2 production to come in at or above the high end of previous guidance of 246MM-258MM cfe/day, the result of reduced scheduled third-party pipeline downtime in the deepwater Gulf and flatter than expected production declines in Appalachia.
    • SGY says it may realize additional upward revisions in Appalachian production in Q2 earnings pending participation elections by SGY's operating partners.
    | Comment!
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