Seeking Alpha
  • Today - Wednesday, August 20, 2014

  • 10:34 AM
    • Shares of SodaStream (SODA +4.9%) are active again on M&A chatter to reach their highest level since late July.
    • There isn't any specific information for investors to latch onto, although the usual suspects - Dr. Pepper Snapple, Starbucks, PepsiCo, and Anheuser-Busch InBev - still lurk in the background.
    | 1 Comment
  • 10:28 AM
    • Bloomberg reports P-E firm Hellman & Friedman is among the P-E firms to have submitted offers for Shutterfly (SFLY +2.6%).
    • The news service adds Shutterfly may be been valued at ~$2B in a sale, and that Bain has also expressed interest. However, tech/Internet companies have shown little interest.
    • Shares have moved higher in response to Bloomberg's report. Shutterfly's market cap is currently right around $2B.
    • Previous: The Deal reports Shutterfly has received buyout offers
    | Comment!
  • 10:15 AM
    • Bloomberg reports Infineon (OTCPK:IFNNF) "nearing an agreement to acquire a U.S.- based semiconductor company for about $2 billion," and that a deal could be announced as soon as today.
    • No word on whom Infineon is looking to buy. Bloomberg notes it reported last month analog/mixed-signal chipmakers Fairchild (FCS +5.6%), Power Integrations (POWI +11.3%), and Semtech (SMTC +8%) are considered M&A targets, as the chip industry continues to consolidate.
    • Shares of  all three companies are up sharply, as are those of peers International Rectifier (IRF +5.8%) and Intersil (ISIL +4.4%). FCS and IRF are currently worth $2B; POWI is worth $1.9B; ISIL is worth $1.8B; and SMTC is worth $1.7B.
    • "[Infineon] would like to build a stronger presence in power management," says Liberum Capital's Janardan Menon. He adds the market has "high barriers to entry and strong growth prospects," a fact that also hasn't been lost on Texas Instruments and other industry players.
    | Comment!
  • 9:54 AM
    • D.A. Davidson has upgraded Skullcandy (SKUL +3.9%) to Buy, and raised its target by $2 to $10.
    • The firm thinks Skullcandy's U.S. ops are stabilizing, and is pleased with a mix shift towards higher-margin in-ear headphones.
    • The move comes a week after Jefferies upgraded Skullcandy to Hold, declaring it's seeing "signs of sustained fundamental improvement." Shares are at their highest levels since April.
    | Comment!
  • 9:30 AM
    • Highpower (NASDAQ:HPJ) will start supplying Timex with advanced compact lithium batteries developed specifically for Timex's IRONMAN ONE GPS+, a smartwatch that offers stand-alone wireless connectivity without a phone.
    • "We are excited to work with Timex as a contributor to this innovative smartwatch technology," says CEO George Pan.
    • HPJ +13.4% premarket
    | Comment!
  • 9:24 AM
    • CLSA has downgraded GT Advanced (NASDAQ:GTAT) to Underperform from Outperform.
    • The downgrade comes a month after CLSA lowered its estimates for GT, citing potentially low sapphire yields at the company's Mesa, AZ facility. It also arrives with shares up 111% YTD amid strong Apple-related hopes.
    • Previous: GT Advanced gains on iPhone screen production report
    | 14 Comments
  • 9:11 AM
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  • 8:55 AM
    • GasLog (NYSE:GLOG) +3% premarket after reporting in-line Q2 earnings, better than expected Q2 revenues, and a strong outlook for coming years.
    • GLOG says it estimates contracted charter revenues to rise from $145.4M for FY 2013 to $424.2M for FY 2017 based on contracts in effect as of June 30, 2014 for the eight LNG carriers delivered in 2010, 2013 and through June 30, six LNG carriers acquired from a subsidiary of BG Group and four LNG carriers on order for which time charters have been secured.
    • GLOG says it has 15 vessels on the water vs. eight at the end of Q1; of the 15, 14 are on multi-year charters.
    • Sees the medium to long-term outlook for LNG shipping as very positive, and anticipates significant opportunities as the expected ramp-up of new liquefaction capacity around the world is projected to outstrip the number of ships currently on order.
    | Comment!
  • 8:31 AM
    • Shares of American Eagle Outfitters (NYSE:AEO) pop after the company tops earnings estimates with its Q2 report and avoids some of the worst-case scenarios pinned on the retailer.
    • Comparable-store sales fell 7% during the period.
    • Gross profit rate -40 bps to 33.4%.
    • SG&A expense ratio +110 bps to 26.7%.
    • Inventory -15% to $393M.
    • Guidance: Q3 EPS of $0.17-$0.19 vs. $0.18 consensus. Comp sales are expected to fall at a mid single-digit rate.
    • AEO +10.8% premarket.
    | Comment!
  • 8:24 AM
    • Target (NYSE:TGT) reports U.S. comparable-store sales were flat in Q2 on a 1.3% drop in transactions.
    • Comp sales fell 11.4% in Canada on a sharp decline in average transaction amount.
    • Gross margin rate -100 bps to 30.4% for the U.S. segment.
    • Gross margin rate -1320 bps to 18.4% for the Canadian segment.
    • U.S. REDcard penetration +210 bps to 20.8%.
    • Guidance: FY14 EPS slashed to $3.10-$3.30 vs. $3.60-$3.90 prior and $3.49 consensus.
    • TGT -1.7% premarket
    | Comment!
  • 8:15 AM
    • JA Solar (NASDAQ:JASO) -6.1% premarket after Q2 earnings and revenues come in short of Wall Street expectations, even as shipments soared.
    • On a Y/Y basis, results were much improved: Excluding special items, earnings swung from a year-ago loss, and revenue surged 53% to 2.4B yuan ($390.5M).
    • Total shipments during Q2 jumped 47% Y/Y to 681.8 MW, while shipments of modules surged 76% to 445.8 MW; JASO says it expects total cell and module shipments of 730-760 MW in Q3.
    • Gross margin was 15.2%, vs. 8.1% in the year-ago quarter and 16.7% in Q1 2014.
    • Raises FY 2014 shipment guidance, now expecting to ship 2.9-3.1 GW, vs. prior guidance of 2.7-2.9 GW.
    • CEO Baofang Jin expects sustained growth and profitability in H2 "due to accelerating activity in China, and continued favorable product and geographic mix."
    | Comment!
  • 8:02 AM
    • Shares of NovaBay Pharmaceuticals (NYSEMKT:NBY) are off 40% premarket on light volume after the company announced that its ophthalmic formulation for viral conjunctivitis, NVC-422, failed to achieve its primary or secondary endpoints in a Phase 2 clinical trial.
    • The global study enrolled patients with adenoviral conjunctivitis in the U.S., India, Sri Lanka and Brazil. The endpoints were: measured clearing of bulbar conjunctival injection (red eye); eradication of adenovirus from tear film; spread of infection to the fellow eye; reduction in sub-epithelial infiltrates; clearing of blurred vision compared to its Vehicle at Test-of-Cure Visit (Day 18).
    • The company has terminated its pursuit of NVC-422 for this indication.
    | 1 Comment
  • 7:27 AM
    • Share of Amicus Therapeutics (NASDAQ:FOLD) are up 37% premarket on light volume in response to its report of positive results for its Fabry disease drug candidate, migalstat HCL, in a Phase 3 clinical trial (Study 012).
    • Study 012 compared oral migalstat to standard-of-care enzyme replacement therapies (ERT), Fabrazyme (agalsidase beta) (NYSE:SNY) and Replagal (agalsidase alfa) (NASDAQ:SHPG), for Fabry disease. The co-primary endpoints were the mean annualized changes in estimated glomerular filtration rate (eGFR) and measured (iohexol) GFR (mGFR) assessed by descriptive comparisons on migalstat and ERT over 18 months.
    • The statistical analysis of the results was based on 54 of the 60 subjects in the study that had GLP HEK-amenable mutations. All patients were treated with ERT for a minimum of 12 months prior to the start of the trial.
    • Migalstat had a comparable effect to ERT on patients' kidney function (measured by the change in eGFR and mGFR). Levels of the biomarker plasma lyso-Gb3 remained low and stable in patients with amenable mutations who switched from ERT to migalstat. Of the 48 patients with GLP HEK-amenable mutations who completed Study 012, 46 (96%) elected to continue with the 12-month treatment extension. 45 remain on migalstat today as their sole treatment for Fabry disease.
    | Comment!
  • 7:02 AM
    • Staples (NASDAQ:SPLS) reports comparable-store sales fell 5% in Q2 as sales fell off for computers and technology accessories.
    • Operating income rate -290 bps to 1.2%.
    • Staples.com revenue +8%.
    • International revenue -0.5% to $941M.
    • North American revenue +2.6% to $1.997B.
    • SPLS +1.6% premarket
    | 1 Comment
  • Tuesday, August 19, 2014

  • 9:31 PM
    • After coming off a halt, PetSmart (NASDAQ:PETM) closed AH trading up strongly in response to news it's (officially) exploring a sale, acquiring Pet360 for $130M-$160M, and carrying out major cost cuts.
    | Comment!
  • 8:08 PM
    • In addition to missing Q2 estimates, Youku (NYSE:YOKU) is guiding for Q3 revenue of RMB1.09B-RMB1.13B ($177.2M-$183.7M), below an RMB1.15B consensus.
    • Youku says it was "still in the process" of renewing a service agreement with a major mobile carrier of the end of Q2, and thus opted to defer the recognition of ~RMB40M in revenue until the renewal is in place. That contributed to the Q2 miss, and also a slowdown in Y/Y revenue growth to 27% from Q1's 36%.
    • Content costs rose to 42% of revenue from 38% a year ago; bandwidth costs were steady at 22%. Opex rose 20% Y/Y to $50.5M (33% of revenue).
    • Youku now has 500M+ monthly users. Mobile has grown to account for over 30% of revenue. Subscription service revenue rose 379% Y/Y, but over 95% of revenue still comes from advertising.
    • The company's cash balance totaled $1.6B at the end of Q2, or nearly half its current market cap.
    • Q2 results, PR
    | Comment!
  • 6:07 PM
    • Youku.com (NYSE:YOKU): Q2 EPS of -RMB0.41 misses by RMB0.07.
    • Revenue of RMB958.7M (+27.2% Y/Y) misses by RMB21.95M.
    • Shares +0.46% AH.
    • Press Release
    | Comment!
  • 6:00 PM
    • PetSmart (NASDAQ:PETM): Q2 EPS of $0.98 beats by $0.04.
    • Revenue of $1.73B (+1.4% Y/Y) in-line.
    • Shares +1.29% AH.
    • Press Release
    | Comment!
  • 5:59 PM
    • Hertz (NYSE:HTZ) now expects 2014 results to be "well below the low end" of prior guidance due to "operational challenges in the rental car and equipment segments," and its ongoing accounting review.
    • The "challenges" include heavy vehicle recall activity, "significantly higher-than-expected" U.S. opex, "issues and delays" in the installation of ERP and counter systems, and "continued soft demand" in the equipment rental market.
    • Hertz's audit committee has "directed the Company to conduct a review of the financial records for fiscal years 2011, 2012 and 2013 and their impact, if any, on 2014." Hertz notes additional errors might be found.
    • U.S. rental car revenue rose 4% Y/Y in Q2; rental car revenue/day rose "slightly." International rental car revenue rose 7%, and equipment rental revenue 1%.
    • Lead independent director George W. Tamke is resigning, and will be replaced by director Linda Fayne Levinson. Rent A Car Americas chief Scott Sider is retiring. Sider's responsibilities will be assumed by other execs.
    • Avis (NASDAQ:CAR) is following Hertz lower.
    | Comment!
  • 5:37 PM
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