Seeking Alpha
  • Today - Tuesday, September 30, 2014

  • 7:45 AM
    • Molycorp (NYSE:MCP) +2.4% premarket on news that its expanded leach system has been placed into service at its Mountain Pass, Calif., facility.
    • MCP says the system expansion addresses one of the major production bottlenecks at Mountain Pass and is expected to boost rare earth production and lower operating costs once it is fully operational and sufficient supplies of hydrochloric acid are available.
    • While onsite production and market availability of HCl are expected to improve in Q4 and beyond, Q3 2014 rare earth production at Mountain Pass is not expected to exceed Q1 2014 levels.
    | Comment!
  • 7:35 AM
    • eBay (NASDAQ:EBAY) thirty-five minutes ago disclosed its plan to spin off PayPal into a separate publicly traded company in the second half of 2015.
    • Shares +11.6% premarket
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  • 7:16 AM
    • William Blair initiates coverage on Advance Auto Parts (NYSE:AAP) with an Outperform rating.
    • AAP +0.4% premarket
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  • 6:46 AM
    • News Corp (NWS, NWSA) is acquiring Move Inc. (NASDAQ:MOVE) for $950M, or $21/share, a 37% premium over MOVE's Monday close.
    • News Corp will own 80% of Move (MOVE); REA Group, which is 61.6% owned by News Corp, will take the other 20%.
    • Move had 2013 revenue of $227M. News Corp says the acquisition will provide a "significant marketing platform for our media assets."
    • Back in April, SA contributor Michael Ranalli called the bottom in MOVE (sub. req'd) when it was trading around $10/share.
    | Comment!
  • Monday, September 29, 2014

  • 6:48 PM
    • Global Equities reports some 85 kWh Tesla Model S (TSLA -0.5%) units sporting the car's Tech Package now support driver assistance (inc. lane departure) and speed assist features, as well as parking sensors. The firm speculates Mobileye (MBLY +7.1%) is providing the driver-assistance tech.
    • Tesla's site doesn't yet mention the features under its listing for the Tech Package. However, a manual for the latest update to the Model S' software (Version 6.0) does mention lane departure and speed assist systems, and notes each relies on a windshield-mounted camera. Moreover, Tesla has said "some Model S [units] being delivered in North America" now come equipped with the features.
    • Mobileye rallied three weeks ago after Elon Musk stated Tesla will offer a car with elements of a self-driving system in 3 years, and will "use sensors and sub-components from many companies." Musk added a fully self-driving car could arrive in 5-6 years.
  • 6:27 PM
    • Ballard Power (NASDAQ:BLDP) +6.9% AH after announcing it received an order for 13 ElectraGen-ME fuel cell backup power systems.
    • The order comes from Precision Power & Air, BLDP's Caribbean distributor, and the cells will be deployed in the Digicel Group network in Jamaica; BLDP says it is the second Digicel order and it increases the total systems deployed throughout Jamaica to 25.
    • BLDP says the initial fuel cell systems ordered have been successfully operating in Digicel's network for more than two years.
  • 6:07 PM
    • Following a successful Phase 3 trial, the FDA has approved Relistor for "the treatment of opioid-induced constipation in patients taking opioids for chronic non-cancer pain."
    • Salix (NASDAQ:SLXP) will sell Relistor under a license from developer Progenics (NASDAQ:PGNX). Many expected FDA approval to arrive following a favorable July ruling.
    • PGNX +3.4% AH.
    • Related tickers: (AZN)(CBST +0.9%)(SGYP -3.4%)(NKTR -0.9%)
    | 1 Comment
  • 5:54 PM
    • 6 weeks after disclosing a possible June/July data breach, Supervalu (NYSE:SVU) says a separate intrusion occurred in late August or early September.
    • Specifically, the intruder "installed different malware into the portion of its computer network that processes payment card transactions at some of its Shop n Save, Shoppers Food & Pharmacy and Cub Foods owned and franchised stores, including some of its associated stand-alone liquor stores."
    • The company insists its "enhanced protective technology significantly limited this recently discovered malware's ability to capture data from payment cards where the malware was installed." It doesn't think the malware "succeed in capturing data from any payment cards used at any stores other than at some checkout lanes at four Cub Foods franchised stores."
  • 5:47 PM
    • The WSJ says it "wasn't immediately clear" what led buyout talks between SoftBank (OTCPK:SFTBF) and Dreamworks (NASDAQ:DWA) to cool. The paper now reports the companies "could ultimately strike a deal other than an outright takeover ... for instance some kind of content partnership."
    • DWA -7.4% AH to $26.10. Shares rose 26% in regular trading on reports of acquisition talks featuring a $32/share offer.
  • 5:36 PM
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  • 5:07 PM
    • Citron Research, which originally took aim at Textura (TXTR -8.9%) last December, now accuses the company (.pdf) of dramatically overstating the fees charged for its flagship CPM cloud construction management software.
    • Whereas Textura says it charges a usage fee of ~15 bps (0.15%) of a contract's value from various contractors, Citron asserts actual bookings are much lower. Among other things, the research firm states per-contract subcontractor fees are capped, and that "special deals" are often cut.
    • Citron also argues (citing industry data about subcontractor activity) Textura's addressable market is less than 1/10 of what it claims, and that the company has made "no meaningful entry into foreign construction markets." A subcontractor lawsuit regarding alleged overcharges is also brought up.
    | Comment!
  • 5:01 PM
    • Lone Pine Capital now has a reportable holding in Tiffany (NYSE:TIF) after buying about 2.6M shares to boost its stake in the company to 5.3%.
    • Shares +0.7% AH
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  • 4:38 PM
    • Intellicheck (IDN +7.6%) has won a $300K contract to install a Defense ID system at "a major National Guard location in the Midwest." The system includes handheld ID card readers, a Visitor Vendor Control Center, a Fugitive Finder Module, and a Control Server.
    • Installation is expected to be finished by the end of Q3. On Friday, Intellicheck announced a $247K contract for a Defense ID system upgrade.
    | Comment!
  • 4:27 PM
    • AMAG Pharmaceuticals (AMAG +28.2%) acquires privately-held Missouri-based Lumara Health for $675M in a cash-and-stock transaction. The deal consists of $600M in cash, $75M in stock and up to $350M in sales-related milestones.
    • Lumara focuses on women's health. It's lead product is the Orphan Drug Makena (hydroxyprogesterone caproate injection) indicated to reduce the risk of preterm birth in women who are pregnant with one baby and who have delivered one preterm baby spontaneously in the past.
    • Also, Lumara divests its portfolio of OTC products to Perrigo for $82M.
    | Comment!
  • 4:26 PM
    • "The fundamental pillars of the revenue growth story at MOBL are intact and are growing at much better paces than indicated in the income statement," says Dallas Salazar in a column now out of embargo.
    • While MobileIron (MOBL +9.6%) officially reported only 17% Y/Y 1H14 revenue growth, adjusted revenue growth (excludes an accounting change) was 51%. Moreover, gross billings rose 52% to $65.2M (exceeds revenue of $56.7M), with recurring billings rising 53% to $34.3M.
    • Salazar also points out recurring billings have been steadily growing as a % of total billings (they were at 63% in Q2), and that this shift towards subscription revenue streams has led to strong deferred revenue growth.
    • He expects the MDM software vendor's 2H14 numbers to "reflect a much different picture" than the ones shown by recent headline numbers, and serve as a catalyst for shares.
  • 4:18 PM
    • Shares of Ford (NYSE:F) ended the day 7.5% lower on a late selling flurry after the automaker forecast a loss of $1B in South America due to currency issues and issued weak guidance for Europe as well.
    • Pre-tax profit for 2014 is pegged at $6B by the company.
    • The comments from Ford management came during an Investor Day Conference (webcast, slides).
    • F -0.5% AH.
  • 4:12 PM
    • Thinly-traded micro cap Alcobra (ADHD -18.3%) plummets on a 4x surge in volume. The drop takes out the recent up move which started on September 16. Shares peaked at $21.53 on September 23 representing 34% rise from the September 11 low of $16.06.
    • On September 22, the company announced that it had completed all patient follow-up visits in its Phase 3 trial of Metadoxine Extended Release. The top-line analysis is due in another week.
    • If the down trend continues, then it is a clear signal that somebody knows something and it ain't positive. Longs beware.
  • 4:11 PM
    • Synnex (NYSE:SNX): FQ3 EPS of $1.59 beats by $0.11.
    • Revenue of $3.53B (+29.3% Y/Y) beats by $130M.
    • Shares +7.5% AH.
    • Press Release
    | Comment!
  • 3:58 PM
    • Bloomberg reports Computer Sciences (CSC +5.9%) has contacted Blackstone, Bain, and other P-E firms about an LBO. Shares have spiked higher.
    • Talks are said to be at an early stage, with CEO Mike Lawrie reportedly trying to convince would-be suitors CSC's turnaround is half-finished. One source says P-E firms like the IT services firm's multiples, but have concerns about its cash flow and slower-growing units.
    • With a current market cap of $8.7B, CSC would be a big fish to swallow. But the company's low valuation (shares go for 0.7x FY14 sales) and fairly predictable revenue streams could boost P-E interest.
    | Comment!
  • 3:32 PM
    • Possibly threatening a settlement over a separate investigation into its doing business with sweethearts like Iran and Sudan into doubt, Commerzbank (OTCPK:CRZBY -5.5%) is facing an investigation by the Manhattan DA over violations of money-laundering laws.
    • At issue are the dreaded lax controls for detecting and preventing money laundering, and the new probe, say sources, is threatening the settlement of other one. U.S. officials are reportedly considering combining the two investigations into one settlement - a move which would delay resolution and potentially add hundreds of millions of dollars in fines (the previous settlement number was reported to be in the area of $600M).
    | Comment!
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