VRX - News and Analysis from Seeking Alpha 'VRX' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/symbol/vrx Valeant Pharmaceuticals International Q3 2009 Earnings Call Transcript http://seekingalpha.com/article/170637-valeant-pharmaceuticals-international-q3-2009-earnings-call-transcript?source=feed 170637 Valeant Pharmaceuticals International (VRX)

Q3 2009 Earnings Call

November 2, 2009 10:00 am ET

]]> Mon, 02 Nov 2009 15:12:13 -0500 Valeant Pharmaceuticals International (VRX)

Q3 2009 Earnings Call

November 2, 2009 10:00 am ET


Complete Story »]]> VRX Valeant: It Turns Out that Wrinkles Are Worth Quite a Lot http://seekingalpha.com/article/170563-valeant-it-turns-out-that-wrinkles-are-worth-quite-a-lot?source=feed 170563 I wrote about Valeant Pharmaceuticals (VRX) back on June 16, when the stock was trading at a little over $22. The company came to my notice because of Efudex, its treatment for actinic keratosis and basal cell carcinoma. Not only does the treatment work to remedy an almost epidemic growth in skin cancer among baby boomers -- it turns out that the treatment also improves the appearance of the skin. After undergoing surgical treatment myself for basal cell carcinoma, I can safely say that patients who have a choice will opt for the cream over surgery. The improvement in appearance is a bonus.

Since then, the stock has run up to $29, and after its earnings report this morning, it was up another 12% at $33 in pre-market trading, making a gain of 50% in four and a half months.

]]> Mon, 02 Nov 2009 11:01:43 -0500 Carol Flake Chapman Carol Flake Chapman submits:

I wrote about Valeant Pharmaceuticals (VRX) back on June 16, when the stock was trading at a little over $22. The company came to my notice because of Efudex, its treatment for actinic keratosis and basal cell carcinoma. Not only does the treatment work to remedy an almost epidemic growth in skin cancer among baby boomers -- it turns out that the treatment also improves the appearance of the skin. After undergoing surgical treatment myself for basal cell carcinoma, I can safely say that patients who have a choice will opt for the cream over surgery. The improvement in appearance is a bonus.

Since then, the stock has run up to $29, and after its earnings report this morning, it was up another 12% at $33 in pre-market trading, making a gain of 50% in four and a half months.


Complete Story »]]> VRX Carol Flake Chapman Tupperware: Unlikely Market Leader http://seekingalpha.com/article/166332-tupperware-unlikely-market-leader?source=feed 166332 Tupperware (TUP) has been on a tear since the market lows rising nearly 4-fold, with no end in sight. Looking at the weekly chart (click to enlarge) you’ll find a chart hitting new 2 year highs with RSI confirming. The daily chart below (click to enlarge) is just as good with higher highs and higher lows, with yesterday being an exceptionally large volume day.

Other stocks that popped up on my scans today are Checkpoint (CHKP), Microvision (MVIS), Tractor Supply Co. (TSCO), Valeant Pharmaceuticals (VRX), and F5 Networks (FFIV). All are market leaders with strong weekly and daily charts.

]]> Wed, 14 Oct 2009 03:22:46 -0400 Jeff Pierce Jeff Pierce submits:

Tupperware (TUP) has been on a tear since the market lows rising nearly 4-fold, with no end in sight. Looking at the weekly chart (click to enlarge) you’ll find a chart hitting new 2 year highs with RSI confirming. The daily chart below (click to enlarge) is just as good with higher highs and higher lows, with yesterday being an exceptionally large volume day.

Other stocks that popped up on my scans today are Checkpoint (CHKP), Microvision (MVIS), Tractor Supply Co. (TSCO), Valeant Pharmaceuticals (VRX), and F5 Networks (FFIV). All are market leaders with strong weekly and daily charts.


Complete Story »]]> CHKP FFIV MVIS TSCO TUP VRX Jeff Pierce Best Performing Mid and Small Cap Stocks Since 10/9/07 Peak http://seekingalpha.com/article/165768-best-performing-mid-and-small-cap-stocks-since-10-9-07-peak?source=feed 165768 Yesterday, we looked at the best performing S&P 500 stocks since the index's all-time closing high on 10/9/07. This morning we highlight the 25 best performing stocks in the S&P 400 (mid cap) and S&P 600 (small cap) indices. As we saw yesterday with the S&P 500, sectors dominating both lists come from the Consumer Discretionary, Health Care, and Technology sectors. While the presence of tech stocks on these tables is not surprising, given the weak consumer and prospects for nationalized health care, it is surprising to see pockets of strength in the Consumer Discretionary and Health Care sectors.

BestMidcapsBestSmallcaps]]> Fri, 09 Oct 2009 11:29:48 -0400 Bespoke Investment Group Hickey and Walters (Bespoke) submit:

Yesterday, we looked at the best performing S&P 500 stocks since the index's all-time closing high on 10/9/07. This morning we highlight the 25 best performing stocks in the S&P 400 (mid cap) and S&P 600 (small cap) indices. As we saw yesterday with the S&P 500, sectors dominating both lists come from the Consumer Discretionary, Health Care, and Technology sectors. While the presence of tech stocks on these tables is not surprising, given the weak consumer and prospects for nationalized health care, it is surprising to see pockets of strength in the Consumer Discretionary and Health Care sectors.

BestMidcapsBestSmallcaps
Complete Story »]]> ARO CERN CREE CRK EW HP INFA MANT MVL NFLX NVR PALM PCLN PRGO ROST ROVI SLH STRA SY THOR UHS URBN UTHR VRX WMS Bespoke Investment Group Top Option Trades from September 30 http://seekingalpha.com/article/164255-top-option-trades-from-september-30?source=feed 164255 Below are a few of the most interesting trades that took place in the options market on Wednesday September 30th, 2009.

I not only provide what the action was that traded, but also the most likely reasoning behind the approach and what it means for shares.

]]> Thu, 01 Oct 2009 07:03:28 -0400 Joe Kunkle Joe Kunkle submits:

Below are a few of the most interesting trades that took place in the options market on Wednesday September 30th, 2009.

I not only provide what the action was that traded, but also the most likely reasoning behind the approach and what it means for shares.


Complete Story »]]> BBY CA CF DTV DWA HOG KMB MFC MHK PAR TXT VCLK VRX Joe Kunkle Wednesday Options Recap http://seekingalpha.com/article/164156-wednesday-options-recap?source=feed 164156 Sentiment

Stocks opened steady on better-than-expected GDP numbers, but the early gains faded fast after manufacturing data missed to the downside. The Dow Jones Industrial Average headed higher early after a report released pre-market showed the US economy contracting at a .7 percent annual rate in the second quarter. The decline was less than the 1 percent previously reported and also better than the -1.2 percent economists had expected.

The better than expected GDP print seemed to overshadow a separate report from ADP, which showed the US economy losing 254,000 private sector jobs in September, which was more than the 200,000 economists had expected. August numbers were revised to -277,000, from an initial reading of -298,000.

]]> Wed, 30 Sep 2009 16:16:36 -0400 Frederic Ruffy Frederic Ruffy submits:

Sentiment

Stocks opened steady on better-than-expected GDP numbers, but the early gains faded fast after manufacturing data missed to the downside. The Dow Jones Industrial Average headed higher early after a report released pre-market showed the US economy contracting at a .7 percent annual rate in the second quarter. The decline was less than the 1 percent previously reported and also better than the -1.2 percent economists had expected.

The better than expected GDP print seemed to overshadow a separate report from ADP, which showed the US economy losing 254,000 private sector jobs in September, which was more than the 200,000 economists had expected. August numbers were revised to -277,000, from an initial reading of -298,000.


Complete Story »]]> AET BAC CIT DIA DRI HBAN ICE JBL NKE QQQQ SPY VRX Frederic Ruffy Biotech News Bytes: Neuralstem, Questcor, Valeant, Impax http://seekingalpha.com/article/162549-biotech-news-bytes-neuralstem-questcor-valeant-impax?source=feed 162549 On 9/21/09, Neuralstem (AMEX: CUR) ($2.50, +34%, heavy volume) announced that the FDA has approved its Investigational New Drug (IND) application to commence a Phase I trial to treat Amyotrophic Lateral Sclerosis (ALS or Lou Gehrig’s disease) with its spinal cord stem cells. The Company’s patented technology has the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities and the ability to control the differentiation of these cells.

CUR is the first company to commence a stem cell trial to treat ALS, which will evaluate the safety of the Company’s cells, the surgical procedures, and the devices required for multiple injections of these stem cells directly into the grey matter of the spinal cord. This trial will ultimately consist of 18 ALS patients with varying degrees of the disease. The FDA has approved the first stage of the trial, which consists of 12 patients who will receive 5-10 stem cell injections in the lumbar area of the spinal cord. The patients will be examined at regular intervals post-surgery, with final review of the data in about 24 months.

]]> Mon, 21 Sep 2009 10:39:33 -0400 Mike Havrilla Mike Havrilla submits:

On 9/21/09, Neuralstem (AMEX: CUR) ($2.50, +34%, heavy volume) announced that the FDA has approved its Investigational New Drug (IND) application to commence a Phase I trial to treat Amyotrophic Lateral Sclerosis (ALS or Lou Gehrig’s disease) with its spinal cord stem cells. The Company’s patented technology has the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities and the ability to control the differentiation of these cells.

CUR is the first company to commence a stem cell trial to treat ALS, which will evaluate the safety of the Company’s cells, the surgical procedures, and the devices required for multiple injections of these stem cells directly into the grey matter of the spinal cord. This trial will ultimately consist of 18 ALS patients with varying degrees of the disease. The FDA has approved the first stage of the trial, which consists of 12 patients who will receive 5-10 stem cell injections in the lumbar area of the spinal cord. The patients will be examined at regular intervals post-surgery, with final review of the data in about 24 months.


Complete Story »]]> CUR IPXL QCOR VRX Mike Havrilla Valeant's Six New Value Aligned Pay Practices http://seekingalpha.com/article/159828-valeant-s-six-new-value-aligned-pay-practices?source=feed 159828 By David Lee Berkowitz

Valeant CEO's Pay Package Draws Praise as a Model - WSJ.com.

In the above article in Wednesday's WSJ, G Mason Morfit, chairman of Valeant's (VRX) board compensation committee and a partner at ValueAct, an activist hedge fund whose 22% stake makes it Valeant's largest shareholder, lays out 6 pay practices that mimic a private equity pay plan in a public company.

]]> Thu, 03 Sep 2009 10:16:09 -0400 Value Expectations Value Expectations submits:

By David Lee Berkowitz

Valeant CEO's Pay Package Draws Praise as a Model - WSJ.com.

In the above article in Wednesday's WSJ, G Mason Morfit, chairman of Valeant's (VRX) board compensation committee and a partner at ValueAct, an activist hedge fund whose 22% stake makes it Valeant's largest shareholder, lays out 6 pay practices that mimic a private equity pay plan in a public company.


Complete Story »]]> VRX Value Expectations Valeant’s Pain Drug Disappoints http://seekingalpha.com/article/158215-valeants-pain-drug-disappoints?source=feed 158215 Yesterday, Valeant Pharmaceuticals International (VRX) announced the failure of its drug candidate, retigabine, in a mid-stage study. The trial evaluated retigabine for pain associated with postherpetic neuralgia (PHN), which is common in shingles. The company’s shares closed down 8.5% at $ 24.85.

Retigabine was tested in 187 PHN patients versus placebo for a period of up to ten weeks in approximately 50 locations. The drug was administered once daily in doses of 300 mg to 900 mg. In the final week, patients rated their pain on a scale of zero to ten. While retigabine was generally well tolerated, the study failed to meet its pre-specified primary efficacy endpoint. Valeant is analyzing the data further.

]]> Tue, 25 Aug 2009 14:31:02 -0400 Zacks.com Zacks.com submits:

Yesterday, Valeant Pharmaceuticals International (VRX) announced the failure of its drug candidate, retigabine, in a mid-stage study. The trial evaluated retigabine for pain associated with postherpetic neuralgia (PHN), which is common in shingles. The company’s shares closed down 8.5% at $ 24.85.

Retigabine was tested in 187 PHN patients versus placebo for a period of up to ten weeks in approximately 50 locations. The drug was administered once daily in doses of 300 mg to 900 mg. In the final week, patients rated their pain on a scale of zero to ten. While retigabine was generally well tolerated, the study failed to meet its pre-specified primary efficacy endpoint. Valeant is analyzing the data further.


Complete Story »]]> VRX Zacks.com Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/153534-wall-street-breakfast-must-know-news?source=feed 153534

  • BoA's Lewis closer to exit. Bank of America (BAC) reshuffled its senior management yesterday, replacing the head of consumer banking with Brian Moynihan, who had previously run wealth management, and hiring Sallie Krawcheck as the new wealth management chief. The bank is also setting up a five-way competition for a new CEO to replace Ken Lewis "at the appropriate time," with candidates including Moynihan, who is the front runner for the position, Krawcheck, CFO Joe Price, home-lending chief Barbara Desoer and Goldman Sachs veteran Tom Montag. Shares -1.4% premarket (7:00 ET). (Read BoA's press release)
  • BoA settles Merrill suit. Bank of America (BAC) agreed to a $33M settlement with the SEC over charges that it made false and misleading statements to investors about bonuses at Merrill Lynch. The settlement was announced almost immediately after the allegations, which the bank neither confirmed nor denied, but the SEC emphasized it will continue its investigation. Though the $33M payment is high for disclosure-related cases not connected to fraud, the fine seems small compared to the $3.6B in bonuses paid at Merrill in 2008 and damages CEO Ken Lewis' once-golden reputation far more than BoA's bottom line. (Read the SEC's complaint (.pdf) and statement on the settlement)
  • No surprises from UBS loss. UBS (UBS) posted a Q2 net loss of 1.4B Swiss francs ($1.32B), its third consecutive quarterly loss, on costs related to job cuts and charges related to the company's debt. Its wealth and asset management divisions saw outflows of 39.4B francs. CEO Oswald Gruebel said markets improved in the second quarter but a sustainable economic recovery 'is not yet visible.' Shares -8.3% premarket (7:00 ET). (Read UBS' letter to shareholders (.pdf))
  • Bank regulators oppose financial reforms. Several top banking regulators, including the FDIC's Sheila Bair, will testify in Congress today against some key elements of Obama's proposed financial reforms. The regulators feel parts of Obama's plan are unnecessary, and Bair doesn't "see merit or wisdom in consolidating federal supervision" under a single regulator since combining agencies is 'no panacea' for effective oversight. The testimony comes in spite of strongly-worded exhortations from Geithner, who wants regulators to end their turf battles and public criticism and to get in line behind the reforms. (See the Senate's full list of witnesses for today's hearing)
  • Monday's market climb. The S&P 500 broke through the 1,000 mark for the first time since November, climbing 1.5% to close at 1,002.63, and the Nasdaq broke the 2,000 mark, closing up 1.5% at 2,008.61. All three major U.S. indexes, including the Dow Jones Industrial Average, are now at their highest levels since last autumn. Speculation that the recession may be ending helped commodities surge and sent Treasurys and the dollar down.
  • Google's Schmidt leaves Apple board. Google (GOOG) CEO Eric Schmidt resigned from Apple's (AAPL) board of directors, with Apple releasing a statement that "as Google enters more of Apple's core businesses... Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest." The resignation, which Apple described as mutual, highlights not just the growing overlap between Apple and Google, but also increased antitrust scrutiny from the Federal Trade Commission. The move failed to mollify the FTC, which said it "will continue to investigate remaining interlocking directorates between the companies."
  • ANZ picks up Asian assets. Australia and New Zealand Banking Group (ANZBY.PK) agreed to buy some Asian units from Royal Bank of Scotland (RBS) for around $550M. ANZ will pick up retail, wealth management and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, as well as RBS' institutional banking businesses in Taiwan, the Philippines and Vietnam, as a 'further stepping stone' in the bank's Asian growth strategy.
  • Clunker program lifts car sales. July U.S. motor vehicle sales reached their highest pace in eleven months, thanks in large part to the 'Cash for Clunkers' program which sent consumers rushing to dealerships. Car firms sold 997,824 cars and light trucks in July, pushing the annualized selling pace to 11.24M vehicles vs. June's rate of 9.69M, and a slump in luxury auto demand showed signs of lessening. Here's the breakdown:
    -Ford (F): +2.3% to 158,838 vs. consensus of -5%, making it the first U.S. manufacturer to report a monthly sales increase this year.
    -Chrysler: -9% to 88,900. Car sales -14% to 22,109. Sales up 30% M/M. "We are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle."
    -General Motors: -19.4% to 189,443. Chevrolet was the best-performing brand at -9.3% to 124,948. Saturn, the worst performer, was -66.1% to 5,968.
    -Honda (HMC): -17.3% to 114,690. Truck sales -20.6% to 37,996.
    -Toyota (TM): -11.4% to 174,872, up 27.7% M/M. Lexus division -16.5% to 18,517. Hybrids +19.3% to 24,295.
    -Nissan (NSANY): -24.6% to 71,847. Trucks -48.4% to 20,448.
    -Daimler (DAI): -24% to 17,646 for the Mercedes-Benz car division.
    -Volkswagen (VLKAY.PK): +0.7% to 20,590. Diesels accounted for more then 30% of total sales.
  • CIT sweetens buyback offer. CIT Group (CIT) raised its tender offer on $1B in notes to a purchase price of $875 per $1,000, up from $825. CIT also lowered its minimum tender condition to 58% of notes, and has already received tenders for 64.97% of notes. The improved terms all but guarantee the buyback's success, pulling CIT one step farther away from bankruptcy court. (Read CIT's press release)
  • AIG gets new chief. Robert Benmosche will become CEO and President of AIG (AIG), replacing Edward Liddy as of August 10. Benmosche is the former CEO of MetLife (MET), and will be AIG's fifth chief since 2005.
  • Manufacturing still contracting. The ISM Manufacturing Index came in at 48.9 in July vs. 46.5 consensus, its 18th consecutive month of contraction. Nonmetallic Mineral Products and Paper Products reported growth. Machinery, Plastics & Rubber Products, and Wood Products led the laggards.
  • Construction spending inches up (.pdf). June Construction Spending rose 0.3% to $966B/year, beating consensus estimates of -0.5%. Compared to a year ago, construction was down 10.2%. For the first half of the year, spending of $456B was 11.4% below last year.

Earnings: Tuesday Before Open

  • Allegheny Energy (AYE): Q2 EPS of $0.43 in-line. Revenue of $815M (-15%) vs. $868M. (PR)
  • Archer Daniels Midland (ADM): FQ4 EPS of $0.10 vs. consensus of $0.45 (may not be comparable). Revenue of $16.5B (-24%) vs. $15.2B. (PR)
  • ArvinMeritor (ARM): FQ3 EPS of -$0.25 beats by $0.06. Revenue of $993M (-47%) vs. $1.2B. (PR)
  • Cameron International (CAM): Q2 EPS of $0.60 beats by $0.13. Revenue of $1.3B (-14%) vs. $1.2B. Issues upside Q3 EPS guidance of $0.50-0.55 vs. $0.42 consensus. Issues upside FY '09 EPS guidance of $2.15-2.25 vs. $1.89 consensus. (PR)
  • Cincinnati Bell (CBB): Q2 EPS of $0.11 beats by $0.01. Revenue of $328M (-7%) vs. $336M. (PR)
  • Cognizant Technology Solutions (CTSH): Q2 EPS of $0.50 beats by $0.13. Revenue of $777M (+13%) vs. $762M. Issues upside Q3 guidance: sees EPS of $0.44 vs. $0.39 consensus, revenue of at least $800M vs. $781M consensus. (PR)
  • CVS Caremark (CVS): Q2 EPS of $0.65 beats by $0.01. Revenue of $25B (+18%) vs. $24B. (PR)
  • Discovery Communications (DISCA): Q2 EPS of $0.43 beats by $0.11. Revenue of $881M (-0.5%) in-line. (PR)
  • D.R. Horton (DHI): FQ3 EPS of -$0.45 misses by $0.22. Revenue of $922.5M (-43%) vs. $792M. (PR)
  • Duke Energy (DUK): Q2 EPS of $0.26 beats by $0.01. Revenue of $2.9B (-10%) vs. $3.2B. (PR)
  • Emerson Electric Company (EMR): FQ3 EPS of $0.56 misses by $0.01. Revenue of $5.1B (-22.5%) vs. $5.3B. (PR)
  • Entergy (ETR): Q2 EPS of $1.23 misses by $0.03. Issues in-line guidance for FY '09, sees EPS of $6.20-6.80 vs. $6.56 consensus. (PR)
  • Expeditors International of Washington (EXPD): Q2 EPS of $0.25 in-line. Revenue of $895M (-38%) vs. $999M. (PR)
  • Frontier Communications Corporation (FTR): Q2 EPS of $0.11 misses by $0.02. Revenue of $532M (-5%) vs. $534M. (PR)
  • HCP (HCP): Q2 EPS of $0.55 beats by $0.04. Revenue of $267M (+7.5%) vs. $249M. (PR)
  • Henry Schein (HSIC): Q2 EPS of $0.81 beats by $0.05. Revenue of $1.6B (-2%) in-line. (PR)
  • Iconix Brand Group (ICON): Q2 EPS of $0.30 in-line. Revenue of $56M (+9%) vs. $51M. (PR)
  • IntercontinentalExchange (ICE): Q2 EPS of $1.12 misses by $0.01. Revenue of $250M (+27%) vs. $243M. Shares +0.6% premarket (7:40 ET). (PR)
  • Louisiana-Pacific (LPX): Q2 EPS of -$0.26 beats by $0.07. Revenue of $266M (-31%) vs. $241M. (PR)
  • Marvel Entertainmnet (MVL): Q2 EPS of $0.37 beats by $0.06. Revenue of $116M (-26%) vs. $106M. (PR)
  • NiSource (NI): Q2 EPS of $0.02 beats by $0.01. Revenue of $1B (-35%) vs. $1.6B. (PR)
  • Pinnacle West Capital (PNW): Q2 EPS of $0.77 misses by $0.10. Revenue of $840M (-5%) vs. $834M. (PR)
  • PPL (PPL): Q2 EPS of $0.32 misses by $0.08. Revenue of $1.7B (+65%) in-line. (PR)
  • Progress Energy (PGN): Q2 EPS of $0.64 misses by $0.05. Revenue of $2.3B (+3%) in-line. (PR)
  • Rowan Companies (RDC): Q2 EPS of $0.78 beats by $0.03. Revenue of $482M (-18%) vs. $435M. (PR)
  • Spectra Energy Corp. (SE): Q2 EPS of $0.22 beats by $0.02. Revenue of $937M (-17%) vs. $1.1B. (PR)
  • St. Joe Company (JOE): Q2 EPS of -$0.49 misses by $0.33. Revenue of $41M (-40%) vs. $24M. (PR)
  • Tenet Healthcare (THC): Q2 EPS of -$0.03 misses by $0.02. Revenue of $2.2B (+5.5%) in-line. (PR)
  • TRW Automotive (TRW): Q2 EPS of -$0.11 vs. consensus of -$0.83 (may not be comparable). Excluding charges, reports $0.08 per share. Revenue of $2.7B (-39%) vs. $2.6B. (PR)
  • Valeant Pharmaceuticals International (VRX): Q2 EPS of $0.51 beats by $0.07. Revenue of $192M (+25%) vs. $181M. Shares +5.6% premarket (8:20 ET). (PR)
  • W&T Offshore (WTI): Q2 EPS of -$0.07 beats by $0.41. Revenue of $150M (-67%) vs. $138M. (PR)

Earnings: Monday After Close

  • Anadarko (APC): Q2 EPS of -$0.48 beats by $0.20. Revenue of $1.8B (-37%) in-line. (PR)
  • Arena Pharmaceuticals (ARNA): Q2 EPS of -$0.48 beats by $0.01. Revenue of $2.4M (-8%) vs. $3.1M. (PR)
  • Atmel (ATML): Q2 EPS of $0.00 beats by $0.05. Revenue of $285M (-32%) vs. $279M. Sees Q3 sales up 4-8% sequentially. (PR)
  • Axis Capital (AXS): Q2 EPS of $1.22 beats by $0.05. Revenue of $781M (-4%) vs. $747M. (PR)
  • Centex (CTX): Q2 EPS of -$2.63 misses by $1.46. Including tax benefit, reported EPS of $0.68. Revenue of $574M (-49%) vs. $563M. (PR)
  • Chesapeake Energy (CHK): Q2 EPS of $0.62 beats by $0.11. Revenue of $1.7B vs. $1.9B. (PR)
  • Comstock Resources (CRK): Q2 EPS of -$0.26 in-line. Revenue of $65M (-62%) vs. $63M. (PR)
  • Extra Space Storage (EXR): Q2 FFO of $0.24 beats by $0.10. Revenue of $69M (+3%) vs. $67M. (PR)
  • Forest Oil (FST): Q2 EPS of $0.52 beats by $0.06. Revenue of $182M (-65%) vs. $240M. (PR)
  • Herbalife (HLF): Q2 EPS of $0.78 beats by $0.06. Revenue of $572M (-11%) vs. $550M. Sees Q3 EPS of $0.66-0.69 vs. $0.81. Sees Q3 revenue down 4-6%. (PR)
  • Hologic (HOLX): FQ3 EPS of $0.29 beats by $0.03. Revenue of $403M (-6%) vs. $395M. Sees full-year EPS of $1.14-1.16 vs. $1.12. (PR)
  • Principal Financial Group (PFG): Q2 EPS of $0.69 beats by $0.06. Revenue of $2.2B (-19%) vs. $2.5B. (PR)
  • Pulte Homes (PHM): Q2 EPS of -$0.74 misses by $0.17. Revenue of $679M (-58%) vs. $647M. (PR)
  • STEC (STEC): Q2 EPS of $0.42 beats by $0.08. Revenue of $86M (+54%) vs. $83M. Sees Q3 EPS of $0.45-0.47 vs. $0.39. Files to sell 7.5M shares of common stock. (PR)
  • WMS Industries (WMS): FQ4 EPS of $0.49 beats by $0.02. Revenue of $196M (+5%) vs. $197M. Sees full-year revenue of $760M-780M vs. $707M. (PR)

Today's Markets

Little movement in Asian markets, which closed mixed. European markets are heading down and U.S. markets are unlikely to sustain yesterday's gains.

]]> Tue, 04 Aug 2009 07:18:32 -0400 SA Editor Rachael Granby

  • BoA's Lewis closer to exit. Bank of America (BAC) reshuffled its senior management yesterday, replacing the head of consumer banking with Brian Moynihan, who had previously run wealth management, and hiring Sallie Krawcheck as the new wealth management chief. The bank is also setting up a five-way competition for a new CEO to replace Ken Lewis "at the appropriate time," with candidates including Moynihan, who is the front runner for the position, Krawcheck, CFO Joe Price, home-lending chief Barbara Desoer and Goldman Sachs veteran Tom Montag. Shares -1.4% premarket (7:00 ET). (Read BoA's press release)
  • BoA settles Merrill suit. Bank of America (BAC) agreed to a $33M settlement with the SEC over charges that it made false and misleading statements to investors about bonuses at Merrill Lynch. The settlement was announced almost immediately after the allegations, which the bank neither confirmed nor denied, but the SEC emphasized it will continue its investigation. Though the $33M payment is high for disclosure-related cases not connected to fraud, the fine seems small compared to the $3.6B in bonuses paid at Merrill in 2008 and damages CEO Ken Lewis' once-golden reputation far more than BoA's bottom line. (Read the SEC's complaint (.pdf) and statement on the settlement)
  • No surprises from UBS loss. UBS (UBS) posted a Q2 net loss of 1.4B Swiss francs ($1.32B), its third consecutive quarterly loss, on costs related to job cuts and charges related to the company's debt. Its wealth and asset management divisions saw outflows of 39.4B francs. CEO Oswald Gruebel said markets improved in the second quarter but a sustainable economic recovery 'is not yet visible.' Shares -8.3% premarket (7:00 ET). (Read UBS' letter to shareholders (.pdf))
  • Bank regulators oppose financial reforms. Several top banking regulators, including the FDIC's Sheila Bair, will testify in Congress today against some key elements of Obama's proposed financial reforms. The regulators feel parts of Obama's plan are unnecessary, and Bair doesn't "see merit or wisdom in consolidating federal supervision" under a single regulator since combining agencies is 'no panacea' for effective oversight. The testimony comes in spite of strongly-worded exhortations from Geithner, who wants regulators to end their turf battles and public criticism and to get in line behind the reforms. (See the Senate's full list of witnesses for today's hearing)
  • Monday's market climb. The S&P 500 broke through the 1,000 mark for the first time since November, climbing 1.5% to close at 1,002.63, and the Nasdaq broke the 2,000 mark, closing up 1.5% at 2,008.61. All three major U.S. indexes, including the Dow Jones Industrial Average, are now at their highest levels since last autumn. Speculation that the recession may be ending helped commodities surge and sent Treasurys and the dollar down.
  • Google's Schmidt leaves Apple board. Google (GOOG) CEO Eric Schmidt resigned from Apple's (AAPL) board of directors, with Apple releasing a statement that "as Google enters more of Apple's core businesses... Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest." The resignation, which Apple described as mutual, highlights not just the growing overlap between Apple and Google, but also increased antitrust scrutiny from the Federal Trade Commission. The move failed to mollify the FTC, which said it "will continue to investigate remaining interlocking directorates between the companies."
  • ANZ picks up Asian assets. Australia and New Zealand Banking Group (ANZBY.PK) agreed to buy some Asian units from Royal Bank of Scotland (RBS) for around $550M. ANZ will pick up retail, wealth management and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, as well as RBS' institutional banking businesses in Taiwan, the Philippines and Vietnam, as a 'further stepping stone' in the bank's Asian growth strategy.
  • Clunker program lifts car sales. July U.S. motor vehicle sales reached their highest pace in eleven months, thanks in large part to the 'Cash for Clunkers' program which sent consumers rushing to dealerships. Car firms sold 997,824 cars and light trucks in July, pushing the annualized selling pace to 11.24M vehicles vs. June's rate of 9.69M, and a slump in luxury auto demand showed signs of lessening. Here's the breakdown:
    -Ford (F): +2.3% to 158,838 vs. consensus of -5%, making it the first U.S. manufacturer to report a monthly sales increase this year.
    -Chrysler: -9% to 88,900. Car sales -14% to 22,109. Sales up 30% M/M. "We are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle."
    -General Motors: -19.4% to 189,443. Chevrolet was the best-performing brand at -9.3% to 124,948. Saturn, the worst performer, was -66.1% to 5,968.
    -Honda (HMC): -17.3% to 114,690. Truck sales -20.6% to 37,996.
    -Toyota (TM): -11.4% to 174,872, up 27.7% M/M. Lexus division -16.5% to 18,517. Hybrids +19.3% to 24,295.
    -Nissan (NSANY): -24.6% to 71,847. Trucks -48.4% to 20,448.
    -Daimler (DAI): -24% to 17,646 for the Mercedes-Benz car division.
    -Volkswagen (VLKAY.PK): +0.7% to 20,590. Diesels accounted for more then 30% of total sales.
  • CIT sweetens buyback offer. CIT Group (CIT) raised its tender offer on $1B in notes to a purchase price of $875 per $1,000, up from $825. CIT also lowered its minimum tender condition to 58% of notes, and has already received tenders for 64.97% of notes. The improved terms all but guarantee the buyback's success, pulling CIT one step farther away from bankruptcy court. (Read CIT's press release)
  • AIG gets new chief. Robert Benmosche will become CEO and President of AIG (AIG), replacing Edward Liddy as of August 10. Benmosche is the former CEO of MetLife (MET), and will be AIG's fifth chief since 2005.
  • Manufacturing still contracting. The ISM Manufacturing Index came in at 48.9 in July vs. 46.5 consensus, its 18th consecutive month of contraction. Nonmetallic Mineral Products and Paper Products reported growth. Machinery, Plastics & Rubber Products, and Wood Products led the laggards.
  • Construction spending inches up (.pdf). June Construction Spending rose 0.3% to $966B/year, beating consensus estimates of -0.5%. Compared to a year ago, construction was down 10.2%. For the first half of the year, spending of $456B was 11.4% below last year.

Earnings: Tuesday Before Open

  • Allegheny Energy (AYE): Q2 EPS of $0.43 in-line. Revenue of $815M (-15%) vs. $868M. (PR)
  • Archer Daniels Midland (ADM): FQ4 EPS of $0.10 vs. consensus of $0.45 (may not be comparable). Revenue of $16.5B (-24%) vs. $15.2B. (PR)
  • ArvinMeritor (ARM): FQ3 EPS of -$0.25 beats by $0.06. Revenue of $993M (-47%) vs. $1.2B. (PR)
  • Cameron International (CAM): Q2 EPS of $0.60 beats by $0.13. Revenue of $1.3B (-14%) vs. $1.2B. Issues upside Q3 EPS guidance of $0.50-0.55 vs. $0.42 consensus. Issues upside FY '09 EPS guidance of $2.15-2.25 vs. $1.89 consensus. (PR)
  • Cincinnati Bell (CBB): Q2 EPS of $0.11 beats by $0.01. Revenue of $328M (-7%) vs. $336M. (PR)
  • Cognizant Technology Solutions (CTSH): Q2 EPS of $0.50 beats by $0.13. Revenue of $777M (+13%) vs. $762M. Issues upside Q3 guidance: sees EPS of $0.44 vs. $0.39 consensus, revenue of at least $800M vs. $781M consensus. (PR)
  • CVS Caremark (CVS): Q2 EPS of $0.65 beats by $0.01. Revenue of $25B (+18%) vs. $24B. (PR)
  • Discovery Communications (DISCA): Q2 EPS of $0.43 beats by $0.11. Revenue of $881M (-0.5%) in-line. (PR)
  • D.R. Horton (DHI): FQ3 EPS of -$0.45 misses by $0.22. Revenue of $922.5M (-43%) vs. $792M. (PR)
  • Duke Energy (DUK): Q2 EPS of $0.26 beats by $0.01. Revenue of $2.9B (-10%) vs. $3.2B. (PR)
  • Emerson Electric Company (EMR): FQ3 EPS of $0.56 misses by $0.01. Revenue of $5.1B (-22.5%) vs. $5.3B. (PR)
  • Entergy (ETR): Q2 EPS of $1.23 misses by $0.03. Issues in-line guidance for FY '09, sees EPS of $6.20-6.80 vs. $6.56 consensus. (PR)
  • Expeditors International of Washington (EXPD): Q2 EPS of $0.25 in-line. Revenue of $895M (-38%) vs. $999M. (PR)
  • Frontier Communications Corporation (FTR): Q2 EPS of $0.11 misses by $0.02. Revenue of $532M (-5%) vs. $534M. (PR)
  • HCP (HCP): Q2 EPS of $0.55 beats by $0.04. Revenue of $267M (+7.5%) vs. $249M. (PR)
  • Henry Schein (HSIC): Q2 EPS of $0.81 beats by $0.05. Revenue of $1.6B (-2%) in-line. (PR)
  • Iconix Brand Group (ICON): Q2 EPS of $0.30 in-line. Revenue of $56M (+9%) vs. $51M. (PR)
  • IntercontinentalExchange (ICE): Q2 EPS of $1.12 misses by $0.01. Revenue of $250M (+27%) vs. $243M. Shares +0.6% premarket (7:40 ET). (PR)
  • Louisiana-Pacific (LPX): Q2 EPS of -$0.26 beats by $0.07. Revenue of $266M (-31%) vs. $241M. (PR)
  • Marvel Entertainmnet (MVL): Q2 EPS of $0.37 beats by $0.06. Revenue of $116M (-26%) vs. $106M. (PR)
  • NiSource (NI): Q2 EPS of $0.02 beats by $0.01. Revenue of $1B (-35%) vs. $1.6B. (PR)
  • Pinnacle West Capital (PNW): Q2 EPS of $0.77 misses by $0.10. Revenue of $840M (-5%) vs. $834M. (PR)
  • PPL (PPL): Q2 EPS of $0.32 misses by $0.08. Revenue of $1.7B (+65%) in-line. (PR)
  • Progress Energy (PGN): Q2 EPS of $0.64 misses by $0.05. Revenue of $2.3B (+3%) in-line. (PR)
  • Rowan Companies (RDC): Q2 EPS of $0.78 beats by $0.03. Revenue of $482M (-18%) vs. $435M. (PR)
  • Spectra Energy Corp. (SE): Q2 EPS of $0.22 beats by $0.02. Revenue of $937M (-17%) vs. $1.1B. (PR)
  • St. Joe Company (JOE): Q2 EPS of -$0.49 misses by $0.33. Revenue of $41M (-40%) vs. $24M. (PR)
  • Tenet Healthcare (THC): Q2 EPS of -$0.03 misses by $0.02. Revenue of $2.2B (+5.5%) in-line. (PR)
  • TRW Automotive (TRW): Q2 EPS of -$0.11 vs. consensus of -$0.83 (may not be comparable). Excluding charges, reports $0.08 per share. Revenue of $2.7B (-39%) vs. $2.6B. (PR)
  • Valeant Pharmaceuticals International (VRX): Q2 EPS of $0.51 beats by $0.07. Revenue of $192M (+25%) vs. $181M. Shares +5.6% premarket (8:20 ET). (PR)
  • W&T Offshore (WTI): Q2 EPS of -$0.07 beats by $0.41. Revenue of $150M (-67%) vs. $138M. (PR)

Earnings: Monday After Close

  • Anadarko (APC): Q2 EPS of -$0.48 beats by $0.20. Revenue of $1.8B (-37%) in-line. (PR)
  • Arena Pharmaceuticals (ARNA): Q2 EPS of -$0.48 beats by $0.01. Revenue of $2.4M (-8%) vs. $3.1M. (PR)
  • Atmel (ATML): Q2 EPS of $0.00 beats by $0.05. Revenue of $285M (-32%) vs. $279M. Sees Q3 sales up 4-8% sequentially. (PR)
  • Axis Capital (AXS): Q2 EPS of $1.22 beats by $0.05. Revenue of $781M (-4%) vs. $747M. (PR)
  • Centex (CTX): Q2 EPS of -$2.63 misses by $1.46. Including tax benefit, reported EPS of $0.68. Revenue of $574M (-49%) vs. $563M. (PR)
  • Chesapeake Energy (CHK): Q2 EPS of $0.62 beats by $0.11. Revenue of $1.7B vs. $1.9B. (PR)
  • Comstock Resources (CRK): Q2 EPS of -$0.26 in-line. Revenue of $65M (-62%) vs. $63M. (PR)
  • Extra Space Storage (EXR): Q2 FFO of $0.24 beats by $0.10. Revenue of $69M (+3%) vs. $67M. (PR)
  • Forest Oil (FST): Q2 EPS of $0.52 beats by $0.06. Revenue of $182M (-65%) vs. $240M. (PR)
  • Herbalife (HLF): Q2 EPS of $0.78 beats by $0.06. Revenue of $572M (-11%) vs. $550M. Sees Q3 EPS of $0.66-0.69 vs. $0.81. Sees Q3 revenue down 4-6%. (PR)
  • Hologic (HOLX): FQ3 EPS of $0.29 beats by $0.03. Revenue of $403M (-6%) vs. $395M. Sees full-year EPS of $1.14-1.16 vs. $1.12. (PR)
  • Principal Financial Group (PFG): Q2 EPS of $0.69 beats by $0.06. Revenue of $2.2B (-19%) vs. $2.5B. (PR)
  • Pulte Homes (PHM): Q2 EPS of -$0.74 misses by $0.17. Revenue of $679M (-58%) vs. $647M. (PR)
  • STEC (STEC): Q2 EPS of $0.42 beats by $0.08. Revenue of $86M (+54%) vs. $83M. Sees Q3 EPS of $0.45-0.47 vs. $0.39. Files to sell 7.5M shares of common stock. (PR)
  • WMS Industries (WMS): FQ4 EPS of $0.49 beats by $0.02. Revenue of $196M (+5%) vs. $197M. Sees full-year revenue of $760M-780M vs. $707M. (PR)

Today's Markets

Little movement in Asian markets, which closed mixed. European markets are heading down and U.S. markets are unlikely to sustain yesterday's gains.


Complete Story »]]> AAPL ADM AIG ANZBY.PK APC ARM ARNA ATML AXS AYE BAC CAM CBB CHK CIT CRK CTSH CTX CVS DAI DHI DIA DISCA DUK EMR ETR EXPD EXR F FST FTR GLD GOOG HCP HLF HMC HOLX HSIC ICE ICON JOE LPX MET MVL NI NSANY PFG PGN PHM PNW PPL QQQQ RBS RDC SE SPY STEC THC TM TRW UBS USO VLKAY.PK VRX WMS WTI SA Editor Rachael Granby 30 Possible Pandemic Profit Plays: Bullish Biotech and Drug Stocks to Watch http://seekingalpha.com/article/145799-30-possible-pandemic-profit-plays-bullish-biotech-and-drug-stocks-to-watch?source=feed 145799 As stated on April 27 of this year in my blog post U.S. Futures Looking Dismal but Possible Swine Flu Profit Play, I gave you a look at how the media plays a role in helping stocks performance over a period of time. Since then the H1N1 Flu (Swine Flu) has been declared a pandemic. Although I don't expect the media to be reporting about the Swine Flu too much over the next week or two, unless something drastic happens (due to other stories that have crept up recently), this is still an issue we have to deal with, and don't think drug companies have stopped the R&D process on finding another pill.

I was doing my nightly research and I noticed an unbelievable amount of stocks from the healthcare sector (Biotech and Drugs) which have been strong the last 30 days (Swine Flu has been a popular topic in the media over the past 30 days, but note that all of the companies in this article are not trying to develop a vaccine for the Swine Flu, but are in the healthcare sector), and are still demonstrating strength on the technical level. The ratio used in evaluating these stocks is called the Bull:Bear ratio, which is defined on my blog post Bull Bear Ratio Defined. I don't like using just one piece of software so I go to another source which is Investor's Business Daily (IBD) as they give a very nice composite rating for these stocks. For details on how IBD ranks these stocks check out my blog post One of My Methods to Finding Bullish Stocks.

]]> Sun, 28 Jun 2009 07:47:15 -0400 Marco Hickey Marco Hickey submits:

As stated on April 27 of this year in my blog post U.S. Futures Looking Dismal but Possible Swine Flu Profit Play, I gave you a look at how the media plays a role in helping stocks performance over a period of time. Since then the H1N1 Flu (Swine Flu) has been declared a pandemic. Although I don't expect the media to be reporting about the Swine Flu too much over the next week or two, unless something drastic happens (due to other stories that have crept up recently), this is still an issue we have to deal with, and don't think drug companies have stopped the R&D process on finding another pill.

I was doing my nightly research and I noticed an unbelievable amount of stocks from the healthcare sector (Biotech and Drugs) which have been strong the last 30 days (Swine Flu has been a popular topic in the media over the past 30 days, but note that all of the companies in this article are not trying to develop a vaccine for the Swine Flu, but are in the healthcare sector), and are still demonstrating strength on the technical level. The ratio used in evaluating these stocks is called the Bull:Bear ratio, which is defined on my blog post Bull Bear Ratio Defined. I don't like using just one piece of software so I go to another source which is Investor's Business Daily (IBD) as they give a very nice composite rating for these stocks. For details on how IBD ranks these stocks check out my blog post One of My Methods to Finding Bullish Stocks.


Complete Story »]]> ABAX ACOR ALKS ALXN AUXL AVNR AZN BVF CELG CHTT CRL ENDP FRX GILD HSP ISTA ITMN JAZZ MBLX MNTA MYGN NOVN OREX PFE RDY SVNT VIVO VRTX VRX WYE Marco Hickey Merck Short Base Rising http://seekingalpha.com/article/142337-merck-short-base-rising?source=feed 142337 Merck & Co. Inc (MRK) the global research-driven pharmaceutical company has seen its short base (as measured by Percent Shares Outstanding on Loan) increase by 57% over the past month to 5.33%.

Pharmaceutical giants Johnson & Johnson (JNJ) and Pfizer Inc. (PFE) have lower short bases of 0.73% and 1.41% respectively. On the other hand two of the more popular shorts are Mylan Inc. (MYL) with a short base of 25.40% and Valeant Pharmaceuticals Inc. (VRX) with 13.85%.

]]> Wed, 10 Jun 2009 03:53:59 -0400 Data Explorers Jessica Johnson submits:

Merck & Co. Inc (MRK) the global research-driven pharmaceutical company has seen its short base (as measured by Percent Shares Outstanding on Loan) increase by 57% over the past month to 5.33%.

Pharmaceutical giants Johnson & Johnson (JNJ) and Pfizer Inc. (PFE) have lower short bases of 0.73% and 1.41% respectively. On the other hand two of the more popular shorts are Mylan Inc. (MYL) with a short base of 25.40% and Valeant Pharmaceuticals Inc. (VRX) with 13.85%.


Complete Story »]]> JNJ MRK MYL PFE VRX Data Explorers Life Science Companies Get Boost from Capital Markets http://seekingalpha.com/article/141784-life-science-companies-get-boost-from-capital-markets?source=feed 141784 by MARIE DAGHLIAN

During the first week in June, small biotech companies continued to struggle, doing what they must to conserve cash and keep their most promising programs alive and on track. The capital markets, though, were starting to show signs of a shifting tide as public financings of life sciences companies took center stage, alongside some interesting collaborations. Pfizer's (PFE) private European offering of $10.5 billion in senior unsecured notes in four separate issues turned it into a big fundraising week. The company said it would use the money to terminate the credit agreement it had taken out to fund the $68-billion buyout of Wyeth. As a backdrop to this activity, the unemployment rate in the United States reached 9.4 percent, the highest figure in the past 25 years, but the U.S. Department of Labor released figures that showed an easing of job losses.
Valeant Pharmaceuticals (VRX), an international specialty pharma company developing treatments in neurology and dermatology, announced a private placement of $365 million. The principal amount was increased from the previously announced $300 million.
Two healthcare service companies also issued large debt offerings. US Oncology, an oncology services company, raised $465 million and Express Scripts (ESRX), one of the largest pharmacy benefit management companies in North America, raised $2.5 billion in debt and $1.4 billion through the sale of 23 million shares of its common stock through a public offering. The money will be used to finance a portion of its previously announced $4.7-billion purchase of WellPoint's (WLP) pharmacy benefit management business.
With its coffers of cash, Big Pharma still dominates the partnering arena and seems to be less averse to doing earlier stage deals. For its first partnership deal, Massachusetts biotech Concert Pharmaceuticals signed an agreement with GlaxoSmithKline (GSK) that could be worth up to $1 billion for the company over the next few years.
The companies will collaborate to develop and commercialize deuterium-containing medicines. The deal includes three of Concert’s research and development programs; namely, CTP-518, a protease inhibitor for the treatment of HIV, expected to enter Phase I clinical trials in the second half of 2009, a preclinical compound for chronic renal disease, and a third research product in Concert’s pipeline. Concert will also provide GSK with deuterium-modified versions of three GSK pipeline compounds for GSK to develop.
For its part, Concert will receive $35 million in upfront payments, including a $16.7-million equity investment by GSK. Concert is also eligible to receive milestones and tiered, double-digit royalties based on deuterium-containing products arising from both the Concert pipeline programs and the GSK pipeline compounds.
Concert will be responsible for research and development for each of its three programs, with GSK maintaining the option to obtain an exclusive, worldwide license to product candidates within the program and assuming responsibility for development and commercialization. Concert retains full rights to further develop and commercialize its product candidates in any program GSK chooses not to license.
GSK is already a strong player in the HIV arena, and recently formed a partnership with Pfizer to develop and market HIV drugs. For Concert, the partnership could be the first of many, a strong boost for its chemistry technology that can exchange some of the hydrogen in existing drug molecules with deuterium. Deuterium is a hydrogen-relative that can result in drugs with unique chemical composition that are potentially more effective than the original versions.
A chance meeting in an airport security line in Dublin led to an unusual agreement to investigate a novel combination anticancer regimen between pharmaceutical powerhouses AstraZeneca (AZN) and Merck (MRK). The companies will collaborate to research the combination of two investigational compounds, MK-2206 from Merck and AZD6244 from AstraZeneca to see if the combined administration can enhance their anticancer properties. Both compounds are designed to inhibit a protein known to be abnormally activated in human cancers. All development costs will be shared equally through the Phase I trial, after which the companies will consider opportunities for further clinical development.
Microsoft (MSFT) stepped further into the life sciences arena with its purchase of Rosetta Biosoftware, a business unit of Rosetta Inpharmatics, which is owned by Merck. The deal will allow Microsoft to incorporate genetic, genomic, metabolomic, and proteomics data management software into the Microsoft Amalga Life Sciences platform for enhanced translational research capabilities. Merck also agreed to become a customer of the Amalga platform. This deal gives Microsoft a bioinformatics platform that is already developed and profitable, an existing customer list of almost 100 names in academia and industry.
Not all the news was positive, as small companies continue to struggle to maintain viability. Two San Diego biotech companies are shutting down. Nanogen will lay off all 89 employees based in San Diego by July 14, as the company moves forward with the sale of its assets to French firm Elitech for $25.7 million. The molecular diagnostics company filed for Chapter 11 bankruptcy protection, saying it was "unable to secure sufficient working capital or alternative corporate transactions to enable the company to service its debt obligations and fund its operations." The company's Italian affiliate will also be acquired by Elitech.
TorreyPines Therapeutics' board voted to liquidate the company’s assets after failing to find a buyer or to negotiate other alternatives allowing it to remain in business, even as it said it “continues to seek and will consider any reasonable alternative strategic or financing proposals presented to the company.” The company had laid off all but three employees in March. The company had been in trouble since October 2007 when it revealed unimpressive data on its acute migraine headache drug.
StemCells (STEM) decided to close its Australian division, Melbourne's Stem Cell Sciences, which had been the country's first dedicated stem cell biotech firm. Palo Alto-based StemCells had already acquired all of SCS intellectual property that included a portfolio of more than 20 patent families.
Finally, with no partner at hand, Anadys Pharmaceuticals (ANDS) raised money and cut staff so that it could move its hepatitis C drug candidate ANA598 into mid-stage clinical trials. The company reduced its work force by 40 percent and suspended development of its second drug candidate for cancer. It also raised $17.5 million through private offering of common stock and warrants.
]]> Sun, 07 Jun 2009 06:53:05 -0400 The Burrill Report The Burrill Report submits:

by MARIE DAGHLIAN

During the first week in June, small biotech companies continued to struggle, doing what they must to conserve cash and keep their most promising programs alive and on track. The capital markets, though, were starting to show signs of a shifting tide as public financings of life sciences companies took center stage, alongside some interesting collaborations. Pfizer's (PFE) private European offering of $10.5 billion in senior unsecured notes in four separate issues turned it into a big fundraising week. The company said it would use the money to terminate the credit agreement it had taken out to fund the $68-billion buyout of Wyeth. As a backdrop to this activity, the unemployment rate in the United States reached 9.4 percent, the highest figure in the past 25 years, but the U.S. Department of Labor released figures that showed an easing of job losses.
Valeant Pharmaceuticals (VRX), an international specialty pharma company developing treatments in neurology and dermatology, announced a private placement of $365 million. The principal amount was increased from the previously announced $300 million.
Two healthcare service companies also issued large debt offerings. US Oncology, an oncology services company, raised $465 million and Express Scripts (ESRX), one of the largest pharmacy benefit management companies in North America, raised $2.5 billion in debt and $1.4 billion through the sale of 23 million shares of its common stock through a public offering. The money will be used to finance a portion of its previously announced $4.7-billion purchase of WellPoint's (WLP) pharmacy benefit management business.
With its coffers of cash, Big Pharma still dominates the partnering arena and seems to be less averse to doing earlier stage deals. For its first partnership deal, Massachusetts biotech Concert Pharmaceuticals signed an agreement with GlaxoSmithKline (GSK) that could be worth up to $1 billion for the company over the next few years.
The companies will collaborate to develop and commercialize deuterium-containing medicines. The deal includes three of Concert’s research and development programs; namely, CTP-518, a protease inhibitor for the treatment of HIV, expected to enter Phase I clinical trials in the second half of 2009, a preclinical compound for chronic renal disease, and a third research product in Concert’s pipeline. Concert will also provide GSK with deuterium-modified versions of three GSK pipeline compounds for GSK to develop.
For its part, Concert will receive $35 million in upfront payments, including a $16.7-million equity investment by GSK. Concert is also eligible to receive milestones and tiered, double-digit royalties based on deuterium-containing products arising from both the Concert pipeline programs and the GSK pipeline compounds.
Concert will be responsible for research and development for each of its three programs, with GSK maintaining the option to obtain an exclusive, worldwide license to product candidates within the program and assuming responsibility for development and commercialization. Concert retains full rights to further develop and commercialize its product candidates in any program GSK chooses not to license.
GSK is already a strong player in the HIV arena, and recently formed a partnership with Pfizer to develop and market HIV drugs. For Concert, the partnership could be the first of many, a strong boost for its chemistry technology that can exchange some of the hydrogen in existing drug molecules with deuterium. Deuterium is a hydrogen-relative that can result in drugs with unique chemical composition that are potentially more effective than the original versions.
A chance meeting in an airport security line in Dublin led to an unusual agreement to investigate a novel combination anticancer regimen between pharmaceutical powerhouses AstraZeneca (AZN) and Merck (MRK). The companies will collaborate to research the combination of two investigational compounds, MK-2206 from Merck and AZD6244 from AstraZeneca to see if the combined administration can enhance their anticancer properties. Both compounds are designed to inhibit a protein known to be abnormally activated in human cancers. All development costs will be shared equally through the Phase I trial, after which the companies will consider opportunities for further clinical development.
Microsoft (MSFT) stepped further into the life sciences arena with its purchase of Rosetta Biosoftware, a business unit of Rosetta Inpharmatics, which is owned by Merck. The deal will allow Microsoft to incorporate genetic, genomic, metabolomic, and proteomics data management software into the Microsoft Amalga Life Sciences platform for enhanced translational research capabilities. Merck also agreed to become a customer of the Amalga platform. This deal gives Microsoft a bioinformatics platform that is already developed and profitable, an existing customer list of almost 100 names in academia and industry.
Not all the news was positive, as small companies continue to struggle to maintain viability. Two San Diego biotech companies are shutting down. Nanogen will lay off all 89 employees based in San Diego by July 14, as the company moves forward with the sale of its assets to French firm Elitech for $25.7 million. The molecular diagnostics company filed for Chapter 11 bankruptcy protection, saying it was "unable to secure sufficient working capital or alternative corporate transactions to enable the company to service its debt obligations and fund its operations." The company's Italian affiliate will also be acquired by Elitech.
TorreyPines Therapeutics' board voted to liquidate the company’s assets after failing to find a buyer or to negotiate other alternatives allowing it to remain in business, even as it said it “continues to seek and will consider any reasonable alternative strategic or financing proposals presented to the company.” The company had laid off all but three employees in March. The company had been in trouble since October 2007 when it revealed unimpressive data on its acute migraine headache drug.
StemCells (STEM) decided to close its Australian division, Melbourne's Stem Cell Sciences, which had been the country's first dedicated stem cell biotech firm. Palo Alto-based StemCells had already acquired all of SCS intellectual property that included a portfolio of more than 20 patent families.
Finally, with no partner at hand, Anadys Pharmaceuticals (ANDS) raised money and cut staff so that it could move its hepatitis C drug candidate ANA598 into mid-stage clinical trials. The company reduced its work force by 40 percent and suspended development of its second drug candidate for cancer. It also raised $17.5 million through private offering of common stock and warrants.

Complete Story »]]> ANDS AZN ESRX GSK MRK MSFT PFE STEM TPTX VRX The Burrill Report Notable Picks from Investment Managers - Barron's http://seekingalpha.com/article/140426-notable-picks-from-investment-managers-barron-s?source=feed 140426 Barron's highlights the notable picks and pans of a group of well-respected investment managers who met last week for the Ira Sohn Investment Research Conference.

  • David Einhorn, head of Greenlight Capital, is bearish on Moody's (MCO) because of its 'shattered brand.' (Einhorn was on the mark at last year's conference with his bearish call on Lehman Brothers.)

]]> Sun, 31 May 2009 04:18:35 -0400 SA Editor Rachael Granby Barron's highlights the notable picks and pans of a group of well-respected investment managers who met last week for the Ira Sohn Investment Research Conference.

  • David Einhorn, head of Greenlight Capital, is bearish on Moody's (MCO) because of its 'shattered brand.' (Einhorn was on the mark at last year's conference with his bearish call on Lehman Brothers.)


Complete Story »]]> BAC BRK.A GE GGWPQ.PK HOLX LNCR MCO MICC RBA SI STRA VRX SA Editor Rachael Granby Valeant Pharmaceuticals International Q1 2009 Earnings Call Transcript http://seekingalpha.com/article/135491-valeant-pharmaceuticals-international-q1-2009-earnings-call-transcript?source=feed 135491 Valeant Pharmaceuticals International (VRX)

Q1 2009 Earnings Call

May 05, 2009 10:00 AM ET

]]> Tue, 05 May 2009 18:25:36 -0400 Valeant Pharmaceuticals International (VRX)

Q1 2009 Earnings Call

May 05, 2009 10:00 AM ET


Complete Story »]]> VRX Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/135303-wall-street-breakfast-must-know-news?source=feed 135303

  • More banks need capital. Speculation continues to grow ahead of Thursday's stress test results, with sources now saying as many as 10 out of 19 tested banks may need more capital. Regulators will likely cite commercial real-estate loans as a major reason why the banks need more capital, with projected losses of up to 12% on those loans over two years. Despite the rumors, financial shares rose by the most in more than a month yesterday, sending Wells Fargo (WFC) up 23.7%, Bank of America (BAC) up 19.3% and Citigroup (C) up 7.7%.
  • S&P marches upwards. The S&P 500 turned positive for 2009, as a late burst of buying in the financial sector, basic-materials, energy and consumer stocks pushed the index to 907.24. The S&P is up 34% since hitting bear-market lows in early March, and is now up 0.4% for the year to date.
  • UBS misses profit mark again. UBS (UBS) posted a Q1 net loss of 1.98B Swiss francs ($1.75B) amid more writedowns and continued client withdrawals, and said its bad loans may increase as the global economy worsens. Since taking office in February, CEO Oswald Gruebel has cut 7,500 jobs, replaced two executive board members and sold a Brazilian business unit, calling a return to profitability his 'most urgent' task. Shares -1.2% premarket (7:00 ET).
  • Obama tax plan faces resistance. Obama unveiled plans to end tax breaks for U.S.-based multinational corporations but met with resistance from some Democrats in Congress worried about 'unintended consequences.' The proposal would ban three offshore tax-saving strategies commonly used by companies like Citigroup (C), General Electric (GE) and Procter & Gamble (PG), and re-opened a debate about whether U.S. firms can stay globally competitive if forced to pay hefty taxes on foreign profits.
  • Bankruptcy fallout for Chrysler lenders, dealers. Chrysler's dealership network is on the verge of collapse as uncertainty about Chrysler's future drives already-scarce consumers away. Meanwhile, secured lenders who oppose Chrysler's bankruptcy plan have asked for their identities to be kept secret after some received death threats. Chrysler itself received court permission to use $4.5B in government loans for bankruptcy financing, and expects to be profitable again by 2012.
  • Antitrust probe on Apple, Google. The Federal Trade Commission is investigating whether Apple (AAPL) and Google (GOOG) violated antitrust laws with the overlap of directors on their boards. Arthur Levinson and Google CEO Eric Schmidt sit on the boards of both companies, leaving room for antitrust regulators to intervene if their presence reduces competition.
  • Alcatel-Lucent widens loss. Alcatel-Lucent (ALU) saw its Q1 loss more than double to €402M ($537.5M) from €181M the year before, as demand for telecommunications equipment slumped. This marked the company's tenth consecutive quarterly deficit. CEO Ben Verwaayen said the company has no plans to leave the business of making wireless-communications equipment but acknowledged this "will be a year of transition" and "taking appropriate actions." Shares -2.7% premarket (7:00 ET).
  • Raising the bar on failed bank reviews. With so many U.S. banks failing (32 to date in 2009), government watchdogs want to change the law so that a review is required only if a bank's failure costs the FDIC $300M or more. Currently, a review must be done if a bank failure costs the FDIC $25M or more, which has created a heavy workload of 'material loss reviews' of failed banks.
  • Kindle tackles textbooks. Amazon (AMZN) is reportedly planning to unveil a new version of Kindle tomorrow aimed at publishers of periodicals and academic textbooks. The new e-reader will, among other features, likely have a larger screen and a more fully functional web browser. Amazon has already worked out a deal with several publishers to make their textbooks available in e-format.
  • ArcelorMittal shelves steel bid. ArcelorMittal (MT) has suspended a potential $8B investment in Indonesian steelmaking facilities, after over a year of stalled negotiations. The deal was meant to capture key supplies of iron ore and reduce ArcelorMittal's reliance on big suppliers like Rio Tinto (RTP) and BHP Billiton (BHP).
  • TALF gets a boost. The Federal Reserve's TALF program is making some progress, with a $5B JPMorgan Chase (JPM) bond offering backed by credit-card loans that is eligible for the program. The JPMorgan deal is the largest to date of the TALF-eligible offerings, and is one of six deals due to be sold today.
  • Loss but no aid expected for AIG. AIG (AIG) is expected to post a Q1 loss when it reports on Thursday, but reportedly won't need a new capital injection from the government. If this is true, it will be the first quarterly results announcement since AIG's September bailout that is not coupled with government aid.
  • Aussies hold rate steady. Australia's central bank left its benchmark interest rate unchanged at 3%, as largely expected. The bank is waiting to see whether the lowest borrowing rates in nearly 50 years, coupled with government spending, will be enough to pull the economy out of its recession.
  • Construction spending improves (.pdf). Construction spending rose 0.3% in March vs. an expected 1.6% fall and last month's 1% fall (revised). For the quarter, spending fell 10.9%.
  • Home sales beat expectations. Pending Home Sales rose 3.2% in March, vs. consensus of 0% and previous sales of +2% (revised). NAR chief economist Lawrence Yun said the increase could be the "leading edge" of first-time buyers taking advantage of cheap prices and the $8,000 tax credit.

Earnings: Tuesday Before Open

  • Archer-Daniels-Midland (ADM): FQ3 EPS of $0.37 misses by $0.12. Revenue of $14.8B (-20.7%) vs. $16.9B. (PR)
  • Automatic Data Processing (ADP): FQ3 EPS of $0.80 in-line. Revenue of $2.4B (-2.2%) in-line. (PR)
  • Avon Products (AVP): Q1 EPS of $0.27 misses by $0.06. Revenue of $2.2B (-12.9%) vs. $2.1B. (PR)
  • Brookfield Asset Management (BAM): Q1 EPS of $0.15 misses by $0.01. Revenue of $2.65B (-17.4%) vs. $1.61B. (PR)
  • Cincinnati Bell (CBB): Q1 EPS of $0.12 beats by $0.01. Revenue of $625.5M (-3.5%) vs. $345M. (PR)
  • Cimarex Energy (XEC): Q1 EPS of $0.09 misses by $0.08. Revenue of $209M (-56.2%) vs. $232M. (PR)
  • Cognizant Technology Solutions (CTSH): Q1 EPS of $0.38 beats by $0.01. Revenue of $746M (+16%) vs. $734M. (PR)
  • Constellation Energy Group (CEG): Q1 EPS of $0.74 beats by $0.04. Revenue of $3.1B (-16.2%) vs. $4.4B. (PR)
  • CVS (CVS): Q1 EPS of $0.55 beats by $0.01. Revenue of $23.4B (+9.7%) vs. $23.6B. (PR)
  • Denbury Resources (DNR): Q1 EPS of $0.19 in-line. Revenue of $173.7M (-45.2%) vs. $241.4M. (PR)
  • Diamondrock Hospitality Company (DRH): Q1 EPS of $0.16 beats by $0.03. Revenue of $118.5M (-10.8%) vs. $114M. (PR)
  • Duke Energy (DUK): Q1 EPS of $0.28 misses by $0.04. Revenue of $3.3B (-0.7%) vs. $3.4B. (PR)
  • Emerson Electric (EMR): FQ2 EPS of $0.49 misses by $0.04. Revenue of $5.1B (-15.5%) in-line. (PR)
  • FirstEnergy (FE): Q1 EPS of $1.02 beats by $0.13. (PR)
  • Foundation Coal (FCL): Q1 EPS of -$0.10 misses by $0.06. Revenue of $395M (-2.9%) vs. $401M. (PR)
  • Health Net (HNT): Q1 EPS of $0.41 beats by $0.06. Revenue of $3.9B (+2.5%) in-line. Shares +2.6% premarket (8:40 ET). (PR)
  • Hewitt Associates (HEW): FQ2 EPS of $0.60 beats by $0.05. Revenue of $762M (-3.5%) vs. $754.5M. (PR)
  • IntercontinentalExchange (ICE): Q1 EPS of $1.09 beats by $0.14. Revenue of $232M (+12.1%) vs. $230M. (PR)
  • Kraft Foods (KFT): Q1 EPS of $0.45 beats by $0.05. Revenue of $9.4B (-6.5%) vs. $9.7B. Shares +3.0% premarket (7:30 ET). (PR)
  • Legg Mason (LM): FQ4 EPS of -$2.29 beats by $0.04. Revenue of $617M (-42.3%) vs. $611M. (PR)
  • Louisiana-Pacific (LPX): Q1 EPS of -$0.29 beats by $0.13. Revenue of $205M (-41.4%) vs. $245M. (PR)
  • Macerich Company (MAC): Q1 EPS of $1.16 beats by $0.10. Revenue of $211M (-3.1%) vs. $201M. (PR)
  • Marvel Entertainment (MVL): Q1 EPS of $0.57 beats by $0.21. Revenue of $197M (+75%) vs. $136M. (PR)
  • Molson (TAP): Q1 EPS of $0.53 beats by $0.20. Revenue of $559M (-58.8%) vs. $568M. Shares +6.5% premarket (8:45 ET).(PR)
  • Penske Automotive Group (PAG): Q1 EPS of $0.11 beats by $0.08. Revenue of $2.2B (-32%) in-line. (PR)
  • PetroQuest Energy (PQ): Q1 EPS of -$1.36 misses by $1.40. Revenue of $59M (-22.4%) in-line. (PR)
  • Pinnacle West Capital (PNW): Q1 EPS of -$0.29 misses by $0.17. Revenue of $629M (-8.6%) vs. $699M. (PR)
  • Precision Castparts (PCP): FQ4 EPS of $1.87 misses by $0.01. Revenue of $1.6B (-9.2%) vs. $1.8B. (PR)
  • Progress Energy (PGN): Q1 EPS of $0.64 beats by $0.03. Revenue of $2.4B (+18.2%) vs. $2.2B. (PR)
  • Radian Group (RDN): Q1 EPS of -$2.69 misses by $1.03. Net loss is "primarily attributable to unrealized mark to market losses on derivatives and the continued increase in mortgage insurance defaults." (PR)
  • Spectra Energy (SE): Q1 EPS of $0.33 in-line. Revenue of $1.4B (-13.5%) in-line. (PR)
  • St. Joe (JOE): Q1 EPS of -$0.12 misses by $0.10. Revenue of $21.6M (-81.5%) vs. $33.3M. (PR)
  • Teva Pharmaceutical Industries (TEVA): Q1 EPS of $0.71 beats by $0.03. Revenue of $3.1B (+22.4%) vs. $3.4B. (PR)
  • Valeant Pharmaceuticals (VRX): Q1 EPS of $0.46 beats by $0.23. Revenue of $178M (+17%) vs. $175M. Shares +5.6% premarket (8:15 ET). (PR)
  • Wisconsin Energy (WEC): Q1 EPS of $1.20 beats by $0.18. Revenue of $1.40B (-2.2%) vs. $1.45B. (PR)
  • W&T Offshore (WTI): Q1 EPS of -$0.54 misses by $0.01. Revenue of $117M (-67.1%) vs. $122M. (PR)

Earnings: Monday After Close

  • American Financial Group (AFG): Q1 EPS of $1.11 beats by $0.15. Sees full-year EPS of $3.75-4.05 vs. $3.72. Shares +9.7% AH. (PR)
  • Chesapeake Energy (CHK): Q1 EPS of $0.46 misses by $0.02. Revenue of $2B (+23.8%) vs. $2.2B. Shares -6% AH. (PR)
  • D.R. Horton (DHI): FQ2 EPS of -$0.34 misses by $0.04. Revenue of $775M (-52.3%) vs. $817M. Shares -1.2% AH. (PR)
  • EOG Resources (EOG): Q1 EPS of $0.53 misses by $0.06. Revenue of $1.16B (+2.1%) vs. $0.98B. Shares +0.9% AH. (PR)
  • Extra Space Storage (EXR): Q1 FFO of $0.23 misses by $0.26. Revenue of $69.3M (+5.5%) vs. $67.1M. Sees full-year FFO of $0.99-1.03 vs. $1.21. Shares -3.7% AH. (PR)
  • FMC Corp. (FMC): Q1 EPS of $1.22 in-line. Revenue of $690M (-8%) vs. $790M. Shares -6.2% AH. (PR)
  • Forest Oil (FST): Q1 EPS of $0.29 beats by $0.13. Revenue of $195M (-48.3%) vs. $257M. Shares flat AH. (PR)
  • Health Care REIT (HCN): Q1 FFO of $0.81 beats by $0.02. Revenue of $144M (+14%) in-line. (PR)
  • Hill-Rom (HRC): FQ2 EPS of $0.27 beats by $0.12. Revenue of $337M (-10.1%) vs. $334M. Full-year guidance in-line. (PR)
  • Hologic (HOLX): FQ2 EPS of $0.29 beats by $0.02. Revenue of $402M (-6.7%) vs. $405M. Sees FQ3 EPS in-line, and revenue of $390-400M vs. $409M consensus. Shares -10.3% AH. (PR)
  • McKesson (MCK): FQ4 EPS of $1.23 beats by $0.08. Revenue of $26.22B vs. $27.3B. Shares -3.4% AH. (PR)
  • MGM Mirage (MGM): Q1 EPS of -$0.06 beats by $0.01. Revenue of $1.5B (-20.4%) vs. $1.58B. Says cancellations have tapered off and business seems to be stabilizing. Shares +4.8% AH. (PR)
  • Principal Financial Group (PFG): Q1 EPS of $0.63 misses by $0.03. Revenue of $2.18B vs. $2.51B. Assets under management down 22% from a year ago to $237B. Shares +0.4% AH. (PR)
  • St. Mary Land (SM): Q1 EPS of -$0.01 misses by $0.15. Revenue of $199M (-45%) vs. $196M. Shares flat AH. (PR)
  • Vulcan Materials (VMC): Q1 EPS of -$0.29 misses by $0.22. Revenue of $600M (-26.6%) vs. $690M. -2.4% AH. (PR)

Today's Markets

Overseas markets moved higher Tuesday. Futures are up moderately.

]]> Tue, 05 May 2009 07:18:49 -0400 SA Editor Rachael Granby

  • More banks need capital. Speculation continues to grow ahead of Thursday's stress test results, with sources now saying as many as 10 out of 19 tested banks may need more capital. Regulators will likely cite commercial real-estate loans as a major reason why the banks need more capital, with projected losses of up to 12% on those loans over two years. Despite the rumors, financial shares rose by the most in more than a month yesterday, sending Wells Fargo (WFC) up 23.7%, Bank of America (BAC) up 19.3% and Citigroup (C) up 7.7%.
  • S&P marches upwards. The S&P 500 turned positive for 2009, as a late burst of buying in the financial sector, basic-materials, energy and consumer stocks pushed the index to 907.24. The S&P is up 34% since hitting bear-market lows in early March, and is now up 0.4% for the year to date.
  • UBS misses profit mark again. UBS (UBS) posted a Q1 net loss of 1.98B Swiss francs ($1.75B) amid more writedowns and continued client withdrawals, and said its bad loans may increase as the global economy worsens. Since taking office in February, CEO Oswald Gruebel has cut 7,500 jobs, replaced two executive board members and sold a Brazilian business unit, calling a return to profitability his 'most urgent' task. Shares -1.2% premarket (7:00 ET).
  • Obama tax plan faces resistance. Obama unveiled plans to end tax breaks for U.S.-based multinational corporations but met with resistance from some Democrats in Congress worried about 'unintended consequences.' The proposal would ban three offshore tax-saving strategies commonly used by companies like Citigroup (C), General Electric (GE) and Procter & Gamble (PG), and re-opened a debate about whether U.S. firms can stay globally competitive if forced to pay hefty taxes on foreign profits.
  • Bankruptcy fallout for Chrysler lenders, dealers. Chrysler's dealership network is on the verge of collapse as uncertainty about Chrysler's future drives already-scarce consumers away. Meanwhile, secured lenders who oppose Chrysler's bankruptcy plan have asked for their identities to be kept secret after some received death threats. Chrysler itself received court permission to use $4.5B in government loans for bankruptcy financing, and expects to be profitable again by 2012.
  • Antitrust probe on Apple, Google. The Federal Trade Commission is investigating whether Apple (AAPL) and Google (GOOG) violated antitrust laws with the overlap of directors on their boards. Arthur Levinson and Google CEO Eric Schmidt sit on the boards of both companies, leaving room for antitrust regulators to intervene if their presence reduces competition.
  • Alcatel-Lucent widens loss. Alcatel-Lucent (ALU) saw its Q1 loss more than double to €402M ($537.5M) from €181M the year before, as demand for telecommunications equipment slumped. This marked the company's tenth consecutive quarterly deficit. CEO Ben Verwaayen said the company has no plans to leave the business of making wireless-communications equipment but acknowledged this "will be a year of transition" and "taking appropriate actions." Shares -2.7% premarket (7:00 ET).
  • Raising the bar on failed bank reviews. With so many U.S. banks failing (32 to date in 2009), government watchdogs want to change the law so that a review is required only if a bank's failure costs the FDIC $300M or more. Currently, a review must be done if a bank failure costs the FDIC $25M or more, which has created a heavy workload of 'material loss reviews' of failed banks.
  • Kindle tackles textbooks. Amazon (AMZN) is reportedly planning to unveil a new version of Kindle tomorrow aimed at publishers of periodicals and academic textbooks. The new e-reader will, among other features, likely have a larger screen and a more fully functional web browser. Amazon has already worked out a deal with several publishers to make their textbooks available in e-format.
  • ArcelorMittal shelves steel bid. ArcelorMittal (MT) has suspended a potential $8B investment in Indonesian steelmaking facilities, after over a year of stalled negotiations. The deal was meant to capture key supplies of iron ore and reduce ArcelorMittal's reliance on big suppliers like Rio Tinto (RTP) and BHP Billiton (BHP).
  • TALF gets a boost. The Federal Reserve's TALF program is making some progress, with a $5B JPMorgan Chase (JPM) bond offering backed by credit-card loans that is eligible for the program. The JPMorgan deal is the largest to date of the TALF-eligible offerings, and is one of six deals due to be sold today.
  • Loss but no aid expected for AIG. AIG (AIG) is expected to post a Q1 loss when it reports on Thursday, but reportedly won't need a new capital injection from the government. If this is true, it will be the first quarterly results announcement since AIG's September bailout that is not coupled with government aid.
  • Aussies hold rate steady. Australia's central bank left its benchmark interest rate unchanged at 3%, as largely expected. The bank is waiting to see whether the lowest borrowing rates in nearly 50 years, coupled with government spending, will be enough to pull the economy out of its recession.
  • Construction spending improves (.pdf). Construction spending rose 0.3% in March vs. an expected 1.6% fall and last month's 1% fall (revised). For the quarter, spending fell 10.9%.
  • Home sales beat expectations. Pending Home Sales rose 3.2% in March, vs. consensus of 0% and previous sales of +2% (revised). NAR chief economist Lawrence Yun said the increase could be the "leading edge" of first-time buyers taking advantage of cheap prices and the $8,000 tax credit.

Earnings: Tuesday Before Open

  • Archer-Daniels-Midland (ADM): FQ3 EPS of $0.37 misses by $0.12. Revenue of $14.8B (-20.7%) vs. $16.9B. (PR)
  • Automatic Data Processing (ADP): FQ3 EPS of $0.80 in-line. Revenue of $2.4B (-2.2%) in-line. (PR)
  • Avon Products (AVP): Q1 EPS of $0.27 misses by $0.06. Revenue of $2.2B (-12.9%) vs. $2.1B. (PR)
  • Brookfield Asset Management (BAM): Q1 EPS of $0.15 misses by $0.01. Revenue of $2.65B (-17.4%) vs. $1.61B. (PR)
  • Cincinnati Bell (CBB): Q1 EPS of $0.12 beats by $0.01. Revenue of $625.5M (-3.5%) vs. $345M. (PR)
  • Cimarex Energy (XEC): Q1 EPS of $0.09 misses by $0.08. Revenue of $209M (-56.2%) vs. $232M. (PR)
  • Cognizant Technology Solutions (CTSH): Q1 EPS of $0.38 beats by $0.01. Revenue of $746M (+16%) vs. $734M. (PR)
  • Constellation Energy Group (CEG): Q1 EPS of $0.74 beats by $0.04. Revenue of $3.1B (-16.2%) vs. $4.4B. (PR)
  • CVS (CVS): Q1 EPS of $0.55 beats by $0.01. Revenue of $23.4B (+9.7%) vs. $23.6B. (PR)
  • Denbury Resources (DNR): Q1 EPS of $0.19 in-line. Revenue of $173.7M (-45.2%) vs. $241.4M. (PR)
  • Diamondrock Hospitality Company (DRH): Q1 EPS of $0.16 beats by $0.03. Revenue of $118.5M (-10.8%) vs. $114M. (PR)
  • Duke Energy (DUK): Q1 EPS of $0.28 misses by $0.04. Revenue of $3.3B (-0.7%) vs. $3.4B. (PR)
  • Emerson Electric (EMR): FQ2 EPS of $0.49 misses by $0.04. Revenue of $5.1B (-15.5%) in-line. (PR)
  • FirstEnergy (FE): Q1 EPS of $1.02 beats by $0.13. (PR)
  • Foundation Coal (FCL): Q1 EPS of -$0.10 misses by $0.06. Revenue of $395M (-2.9%) vs. $401M. (PR)
  • Health Net (HNT): Q1 EPS of $0.41 beats by $0.06. Revenue of $3.9B (+2.5%) in-line. Shares +2.6% premarket (8:40 ET). (PR)
  • Hewitt Associates (HEW): FQ2 EPS of $0.60 beats by $0.05. Revenue of $762M (-3.5%) vs. $754.5M. (PR)
  • IntercontinentalExchange (ICE): Q1 EPS of $1.09 beats by $0.14. Revenue of $232M (+12.1%) vs. $230M. (PR)
  • Kraft Foods (KFT): Q1 EPS of $0.45 beats by $0.05. Revenue of $9.4B (-6.5%) vs. $9.7B. Shares +3.0% premarket (7:30 ET). (PR)
  • Legg Mason (LM): FQ4 EPS of -$2.29 beats by $0.04. Revenue of $617M (-42.3%) vs. $611M. (PR)
  • Louisiana-Pacific (LPX): Q1 EPS of -$0.29 beats by $0.13. Revenue of $205M (-41.4%) vs. $245M. (PR)
  • Macerich Company (MAC): Q1 EPS of $1.16 beats by $0.10. Revenue of $211M (-3.1%) vs. $201M. (PR)
  • Marvel Entertainment (MVL): Q1 EPS of $0.57 beats by $0.21. Revenue of $197M (+75%) vs. $136M. (PR)
  • Molson (TAP): Q1 EPS of $0.53 beats by $0.20. Revenue of $559M (-58.8%) vs. $568M. Shares +6.5% premarket (8:45 ET).(PR)
  • Penske Automotive Group (PAG): Q1 EPS of $0.11 beats by $0.08. Revenue of $2.2B (-32%) in-line. (PR)
  • PetroQuest Energy (PQ): Q1 EPS of -$1.36 misses by $1.40. Revenue of $59M (-22.4%) in-line. (PR)
  • Pinnacle West Capital (PNW): Q1 EPS of -$0.29 misses by $0.17. Revenue of $629M (-8.6%) vs. $699M. (PR)
  • Precision Castparts (PCP): FQ4 EPS of $1.87 misses by $0.01. Revenue of $1.6B (-9.2%) vs. $1.8B. (PR)
  • Progress Energy (PGN): Q1 EPS of $0.64 beats by $0.03. Revenue of $2.4B (+18.2%) vs. $2.2B. (PR)
  • Radian Group (RDN): Q1 EPS of -$2.69 misses by $1.03. Net loss is "primarily attributable to unrealized mark to market losses on derivatives and the continued increase in mortgage insurance defaults." (PR)
  • Spectra Energy (SE): Q1 EPS of $0.33 in-line. Revenue of $1.4B (-13.5%) in-line. (PR)
  • St. Joe (JOE): Q1 EPS of -$0.12 misses by $0.10. Revenue of $21.6M (-81.5%) vs. $33.3M. (PR)
  • Teva Pharmaceutical Industries (TEVA): Q1 EPS of $0.71 beats by $0.03. Revenue of $3.1B (+22.4%) vs. $3.4B. (PR)
  • Valeant Pharmaceuticals (VRX): Q1 EPS of $0.46 beats by $0.23. Revenue of $178M (+17%) vs. $175M. Shares +5.6% premarket (8:15 ET). (PR)
  • Wisconsin Energy (WEC): Q1 EPS of $1.20 beats by $0.18. Revenue of $1.40B (-2.2%) vs. $1.45B. (PR)
  • W&T Offshore (WTI): Q1 EPS of -$0.54 misses by $0.01. Revenue of $117M (-67.1%) vs. $122M. (PR)

Earnings: Monday After Close

  • American Financial Group (AFG): Q1 EPS of $1.11 beats by $0.15. Sees full-year EPS of $3.75-4.05 vs. $3.72. Shares +9.7% AH. (PR)
  • Chesapeake Energy (CHK): Q1 EPS of $0.46 misses by $0.02. Revenue of $2B (+23.8%) vs. $2.2B. Shares -6% AH. (PR)
  • D.R. Horton (DHI): FQ2 EPS of -$0.34 misses by $0.04. Revenue of $775M (-52.3%) vs. $817M. Shares -1.2% AH. (PR)
  • EOG Resources (EOG): Q1 EPS of $0.53 misses by $0.06. Revenue of $1.16B (+2.1%) vs. $0.98B. Shares +0.9% AH. (PR)
  • Extra Space Storage (EXR): Q1 FFO of $0.23 misses by $0.26. Revenue of $69.3M (+5.5%) vs. $67.1M. Sees full-year FFO of $0.99-1.03 vs. $1.21. Shares -3.7% AH. (PR)
  • FMC Corp. (FMC): Q1 EPS of $1.22 in-line. Revenue of $690M (-8%) vs. $790M. Shares -6.2% AH. (PR)
  • Forest Oil (FST): Q1 EPS of $0.29 beats by $0.13. Revenue of $195M (-48.3%) vs. $257M. Shares flat AH. (PR)
  • Health Care REIT (HCN): Q1 FFO of $0.81 beats by $0.02. Revenue of $144M (+14%) in-line. (PR)
  • Hill-Rom (HRC): FQ2 EPS of $0.27 beats by $0.12. Revenue of $337M (-10.1%) vs. $334M. Full-year guidance in-line. (PR)
  • Hologic (HOLX): FQ2 EPS of $0.29 beats by $0.02. Revenue of $402M (-6.7%) vs. $405M. Sees FQ3 EPS in-line, and revenue of $390-400M vs. $409M consensus. Shares -10.3% AH. (PR)
  • McKesson (MCK): FQ4 EPS of $1.23 beats by $0.08. Revenue of $26.22B vs. $27.3B. Shares -3.4% AH. (PR)
  • MGM Mirage (MGM): Q1 EPS of -$0.06 beats by $0.01. Revenue of $1.5B (-20.4%) vs. $1.58B. Says cancellations have tapered off and business seems to be stabilizing. Shares +4.8% AH. (PR)
  • Principal Financial Group (PFG): Q1 EPS of $0.63 misses by $0.03. Revenue of $2.18B vs. $2.51B. Assets under management down 22% from a year ago to $237B. Shares +0.4% AH. (PR)
  • St. Mary Land (SM): Q1 EPS of -$0.01 misses by $0.15. Revenue of $199M (-45%) vs. $196M. Shares flat AH. (PR)
  • Vulcan Materials (VMC): Q1 EPS of -$0.29 misses by $0.22. Revenue of $600M (-26.6%) vs. $690M. -2.4% AH. (PR)

Today's Markets

Overseas markets moved higher Tuesday. Futures are up moderately.


Complete Story »]]> AAPL ADM ADP AFG AIG ALU AMZN AVP BAC BAM BHP C CBB CEG CHK CTSH CVS DHI DIA DNR DRH DUK EMR EOG EXR FCL FE FMC FST GE GLD GOOG HCN HEW HNT HOLX HRC ICE JOE JPM KFT LM LPX MAC MCK MGM MT MVL PAG PCP PFG PG PGN PNW PQ QQQQ RDN RTP SE SM SPY TAP TEVA UBS USO VMC VRX WEC WFC WTI XEC SA Editor Rachael Granby Possible Swine Flu Profit Trades http://seekingalpha.com/article/133227-possible-swine-flu-profit-trades?source=feed 133227 Looking at the U.S. stock market futures we seem to be down quite a bit. The Dow is down 152, S&P 500 down 19, and the Nasdaq is down 23.75. Looks like Monday could be a rough day, with the likelihood of some depressing earnings reports as well as people worrying about the Swine flu, we could be down significantly.

Speaking of the swine flu, that story may actually shine some light on the Pharma sector Monday. A way to profit off of this highly talked about illness may be to flip some med stocks. I remember when Severe acute respiratory syndrome (SARS) was highly covered I was able to make some profits. One of the drugs given to patients that for SARS was Ribavirin. Two publicly traded companies which distribute popular forms of this drug are Roche (RHHBY.PK) (OTC) and Valeant (VRX). As one can see from the Google News Timeline below, the media heavily covered SARS in March-June and peaking in April.

]]> Mon, 27 Apr 2009 03:34:02 -0400 Marco Hickey Marco Hickey submits:

Looking at the U.S. stock market futures we seem to be down quite a bit. The Dow is down 152, S&P 500 down 19, and the Nasdaq is down 23.75. Looks like Monday could be a rough day, with the likelihood of some depressing earnings reports as well as people worrying about the Swine flu, we could be down significantly.

Speaking of the swine flu, that story may actually shine some light on the Pharma sector Monday. A way to profit off of this highly talked about illness may be to flip some med stocks. I remember when Severe acute respiratory syndrome (SARS) was highly covered I was able to make some profits. One of the drugs given to patients that for SARS was Ribavirin. Two publicly traded companies which distribute popular forms of this drug are Roche (RHHBY.PK) (OTC) and Valeant (VRX). As one can see from the Google News Timeline below, the media heavily covered SARS in March-June and peaking in April.


Complete Story »]]> AZN CVS PFE RHHBY.PK VRX WAG WYE Marco Hickey Valeant Pharmaceuticals International Q4 2008 Earnings Call Transcript http://seekingalpha.com/article/122397-valeant-pharmaceuticals-international-q4-2008-earnings-call-transcript?source=feed 122397 Valeant Pharmaceuticals International (VRX)

Q4 2008 Earnings Call

February 24, 2009 11:00 AM ET

]]> Tue, 24 Feb 2009 16:10:35 -0500 Valeant Pharmaceuticals International (VRX)

Q4 2008 Earnings Call

February 24, 2009 11:00 AM ET


Complete Story »]]> VRX Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/122255-wall-street-breakfast-must-know-news?source=feed 122255

  • AIG wants new loan terms, again. Sources say AIG (AIG) is looking to overhaul its $150B government bailout to reduce its financial burden, and in the process would further expose taxpayers to the troubled insurer's balance sheet. The new plan would have $60B of the government's loan repaid with a combination of debt, equity, cash and operating businesses. It would also mark a complete turnaround for the government, changing its approach to the insurer from that of a creditor to one of a potential owner. Sources say AIG would like to announce the changes next week when it releases Q4 earnings but talks, though in advanced stages, have not yet produced a final deal. The company is expected to post a heavy quarterly loss of over $60B, marking the biggest loss in corporate history.
  • Thain testifies on bonuses. John Thain, former CEO of Merrill Lynch, will answer questions posed by New York AG Andrew Cuomo's staff today, and will disclose the names of Merrill employees who received $3.6B in bonuses just before the bank merged with Bank of America (BAC). Thain had already answered some general questions from Cuomo's office but had refused to identify individual recipients, citing orders from Bank of America to keep that information private. A judge on the New York Supreme Court ruled that Thain is required to provide those details, and the judge will later decide if that information should become public.
  • Hedge funds face off on more regulation. One of the world's largest hedge fund groups is ready to propose new measures that would push money managers to open up their businesses. The Alternative Investment Management Association, a U.K. group with members in the U.S. and many other countries, could release a proposal as early as today suggesting hedge fund managers take such steps as registering with regulators and having regular contact with authorities about their businesses. These changes have faced resistance from many U.S. funds, but global pressure is growing to institute financial reform and extend hedge fund regulations.
  • JPMorgan slashes dividends. JPMorgan (JPM) cut its common stock dividend by 87%, to $0.05 from $0.38. The surprise move will save JPMorgan around $5B a year, money it hopes to use to speed its repayment of $25B in TARP funds. CEO Jamie Dimon said the firm cut its dividend out of a "normal abundance of caution," and that "extraordinary times must call for extraordinary measures." The bank also said it has been 'solidly profitable' this quarter and quarterly outlook is 'roughly in line' with consensus forecasts.
  • Roche bid still too low. Roche Holding (RHHBY.PK) will likely have to raise its bid for the 44% of Genentech (DNA) it doesn't already own after Genentech urged shareholders to reject Roche's $42B bid, saying it substantially undervalues the company. Before Roche went forward with its $86.50/share hostile offer, Genentech's banker had proposed $112/share as an acceptable price, showing just how far apart the two sides are on a fair valuation of the deal. Analysts believe the companies will ultimately meet somewhere in the middle, around the $95-$100 range.
  • Employee churn at News Corp. Peter Chernin, the highly regarded President and COO of News Corp. (NWS), plans to leave the company when his contract expires this summer. Chernin has run News Corp.'s Fox television and film production, one of the company's largest divisions, for over 12 years. No replacement was named, and businesses Chernin oversaw will instead report directly to CEO Rupert Murdoch. Chernin's departure comes at a difficult time for the media giant, whose stock price has dropped by more than two-thirds in the past year.
  • Yahoo upgrades ad services. Trying to win back business as the economy falters, Yahoo (YHOO) will unveil several new tools today to help create better matches between online ads and their target audiences. Among the services offered, ads can be customized based on which websites consumers have visited and their behavior on those sites, and marketers will be able to buy text ads targeted to users at a certain time of day or based on other factors like age or gender. Though other companies already offer some similar features, Yahoo is betting on its ability to harness a user base of hundreds of millions of monthly visitors.
  • Here's $300. Now shoo! American Express (AXP) is offering select customers a $300 prepaid AmEx gift card to pay off their balances and close their accounts. The unusual move underscores how badly the credit card market has deteriorated and the steps companies are willing to take to avoid what could become a massive surge in credit card defaults. American Express declined to disclose the specifics of which customers are eligible for the offer, but said the offer applied to a "relatively small number of cardmembers who have sizeable balances and little spending and payment activity."
  • Dark news from regional Feds. The Chicago Fed's National Activity Index inched up to -3.45 from -3.65 in December, but the three-month average of -3.41 was the lowest since at least 1975. According to the Dallas Fed's Texas Manufacturing Outlook Survey, factory activity deteriorated further in December. New orders and capacity utilization fell precipitously, with declines outnumbering increases 5 to 1.
  • German confidence keeps falling. German business confidence fell to a 26 year low in February as the worst recession since WWII led companies to slash production and fire workers. The IMF expects Germany's economy to contract 2.5% this year, despite stimulus efforts.

Earnings: Tuesday Before Open

  • FirstEnergy (FE): Q4 EPS of $1.09 beats by $0.06. Revenue of $3.2B vs. $3.32B. (PR)
  • Foster Wheeler (FWLT): Q4 EPS of $1.03 beats by $0.08. Revenue of $1.6B (+11.9%) vs. $1.8B. (PR)
  • GrafTech International Ltd (GTI): Q4 EPS of $0.49 beats by $0.11. Revenue of $265M (-1.7%) vs. $280M. (PR)
  • Heinz (HNZ): FQ3 EPS of $0.76 beats by $0.12. Revenue of $2.4B (-7.5%) vs. $2.5B. (PR)
  • Home Depot (HD): Q4 EPS of $0.19 beats by $0.04. Revenue of $14.6B (-17.3%) vs. $14.7B. (PR)
  • Macy's (M): Q4 EPS of $1.06 beats by $0.05. Revenue of $7.9B (-7.7%) in-line. (PR)
  • Magna International (MGA): Q4 EPS of -$0.68 in-line. Revenue of $4.8B (-29.3%) vs. $4.7B. (PR)
  • Medco Health Solutions (MHS): Q4 EPS of $0.59 beats by $0.01. Revenue of $13.0B (+13.9%) vs. $12.7B. (PR)
  • Office Depot (ODP): Q4 EPS of -$0.73 vs. consensus of -$0.06. Revenue of $3.27B (-15.4%) vs. $3.47B. Takes $1.27B charge for goodwill and trade-name impairments. (PR)
  • Pacific Gas & Electric (PCG): Q4 EPS of $0.70 beats by $0.04. "Looking ahead, we are confident that we are well positioned to continue making the needed investments to strengthen energy reliability and services for our customers." (PR)
  • Parker Drilling Company (PKD): Q4 EPS of $0.27 beats by $0.12. Revenue of $212.4M (+17.5%) vs. $225.7M. (PR)
  • Quanta Services (PWR): Q4 EPS of $0.24 beats by $0.05. Revenue of $921.5M (+4.8%) vs. $913.5M. (PR)
  • RadioShack (RSH): Q4 EPS of $0.50 misses by $0.20. Revenue of $1.3B (-7.7%) vs. $1.4B. (PR)
  • Sempra Energy (SRE): Q4 EPS of $1.30 beats by $0.39. Revenue of $2.3B (-26.3%) vs. $2.55B. (PR)
  • Target (TGT): Q4 EPS of $0.81 misses by $0.02. Revenue of $19.02B vs. $19.53B. Credit card receivables increased 9.6% to $9.1B from a year ago. (PR)
  • Tenet Healthcare (THC): Q4 EPS of -$0.02 in-line. Revenue of $2.2B (+5.7%) in-line. (PR)
  • Valeant Pharmaceuticals International (VRX): Q4 EPS of $0.52 beats by $0.24. Revenue of $183M (-3.1%) vs. $185M. (PR)
  • ViroPharma (VPHM): Q4 EPS of -$0.01 misses by $0.16. Revenue of $50M (+4.8%) vs. $61M. (PR)

Earnings: Monday After Close

  • DTE Energy Company (DTE): Q4 EPS of $0.80 misses by $0.18. Revenue of $2.17B (-1.8%) vs. $2.1B. Shares -2.4% AH. (PR)
  • Forest Oil (FST): Q4 EPS of $0.32 beats by $0.01. Revenue of $281M (-15.7%) vs. $331M. Shares +2.4% AH. (PR)
  • General Growth Properties (GGP): Q4 FFO of $0.70 misses by $0.15. Revenue of $1B (-2.8%) vs. $830M. Shares +16.7% AH. (PR)
  • Health Management Associates (HMA): Q4 EPS of $0.07 in-line. Revenue of $1.11B (+3.3%) in-line. (PR)
  • Healthcare Realty Trust (HR): Q4 EPS of $0.38 in-line. Revenue of $57.1M (+13.5%) vs. $58.3M. Shares +7.6% AH. (PR)
  • Hecla Mining Company (HL): Q4 EPS of -$0.24 misses by $0.13. Revenue of $27.5M (-24.1%) vs. $73M. Shares -1.2% AH. (PR)
  • Hertz Global (HTZ): Q4 EPS of -$0.22 misses by $0.17. Revenue of $1.79B (-16.4%) vs. $1.95B. (PR)
  • Mohawk Industries (MHK): Q4 EPS of -$1.87 vs. consensus of $0.24. Revenue of $1.49B (-17.8%) vs. $1.54B. Sees Q1 EPS of -$0.89 to -$0.80 vs. $0.28 consensus. Shares -15.1% AH. (PR)
  • Nordstrom (JWN): Q4 EPS of $0.31 beats by $0.01. Revenue of $2.3B (-8.5%) in-line. Sees 2009 EPS of $1.10-1.40 vs. $1.22. Shares +13.3% AH. (PR, earnings call transcript)
  • ONEOK (OKE): Q4 EPS of $0.65 misses by $0.02. Revenue of $2.84B (-28.7%) vs. $3.49B. Shares +1.6% AH. (PR)
  • St. Mary Land (SM): Q4 EPS of $0.43 misses by $0.11. Revenue of $258M (-6.2%) vs. $264M. Shares -2.1% AH. (PR)
  • Whiting Petroleum (WLL): Q4 EPS of -$0.07 misses by $0.01. Revenue of $224M (-3.7%) vs. $220M. Shares +2.5% AH. (PR)

Today's Markets

  • Asia markets declined Tuesday, largely a reaction to the lack of buying in Monday's U.S. session. Nikkei -1.46% to 7,269. Hang Seng -2.86% to 12,798. Shanghai -4.56% to 2,201. BSE Sensex -0.24% to 8,882.
  • In Europe markets opened down and moved lower, but are off from their lows at midday. London -1.1%. Paris -1.35%. Frankfurt -2.1%.
  • U.S. futures are up in the overnight session. Dow +0.6% to 7,160. S&P +0.6% to 749. Nasdaq +0.4%. Crude +0.3% to $38.56. Gold -0.5% to $989.40.

Tuesday's Economic Calendar

Seeking Alpha editor Eli Hoffmann contributed to this post.

]]> Tue, 24 Feb 2009 07:17:42 -0500 SA Editor Rachael Granby

  • AIG wants new loan terms, again. Sources say AIG (AIG) is looking to overhaul its $150B government bailout to reduce its financial burden, and in the process would further expose taxpayers to the troubled insurer's balance sheet. The new plan would have $60B of the government's loan repaid with a combination of debt, equity, cash and operating businesses. It would also mark a complete turnaround for the government, changing its approach to the insurer from that of a creditor to one of a potential owner. Sources say AIG would like to announce the changes next week when it releases Q4 earnings but talks, though in advanced stages, have not yet produced a final deal. The company is expected to post a heavy quarterly loss of over $60B, marking the biggest loss in corporate history.
  • Thain testifies on bonuses. John Thain, former CEO of Merrill Lynch, will answer questions posed by New York AG Andrew Cuomo's staff today, and will disclose the names of Merrill employees who received $3.6B in bonuses just before the bank merged with Bank of America (BAC). Thain had already answered some general questions from Cuomo's office but had refused to identify individual recipients, citing orders from Bank of America to keep that information private. A judge on the New York Supreme Court ruled that Thain is required to provide those details, and the judge will later decide if that information should become public.
  • Hedge funds face off on more regulation. One of the world's largest hedge fund groups is ready to propose new measures that would push money managers to open up their businesses. The Alternative Investment Management Association, a U.K. group with members in the U.S. and many other countries, could release a proposal as early as today suggesting hedge fund managers take such steps as registering with regulators and having regular contact with authorities about their businesses. These changes have faced resistance from many U.S. funds, but global pressure is growing to institute financial reform and extend hedge fund regulations.
  • JPMorgan slashes dividends. JPMorgan (JPM) cut its common stock dividend by 87%, to $0.05 from $0.38. The surprise move will save JPMorgan around $5B a year, money it hopes to use to speed its repayment of $25B in TARP funds. CEO Jamie Dimon said the firm cut its dividend out of a "normal abundance of caution," and that "extraordinary times must call for extraordinary measures." The bank also said it has been 'solidly profitable' this quarter and quarterly outlook is 'roughly in line' with consensus forecasts.
  • Roche bid still too low. Roche Holding (RHHBY.PK) will likely have to raise its bid for the 44% of Genentech (DNA) it doesn't already own after Genentech urged shareholders to reject Roche's $42B bid, saying it substantially undervalues the company. Before Roche went forward with its $86.50/share hostile offer, Genentech's banker had proposed $112/share as an acceptable price, showing just how far apart the two sides are on a fair valuation of the deal. Analysts believe the companies will ultimately meet somewhere in the middle, around the $95-$100 range.
  • Employee churn at News Corp. Peter Chernin, the highly regarded President and COO of News Corp. (NWS), plans to leave the company when his contract expires this summer. Chernin has run News Corp.'s Fox television and film production, one of the company's largest divisions, for over 12 years. No replacement was named, and businesses Chernin oversaw will instead report directly to CEO Rupert Murdoch. Chernin's departure comes at a difficult time for the media giant, whose stock price has dropped by more than two-thirds in the past year.
  • Yahoo upgrades ad services. Trying to win back business as the economy falters, Yahoo (YHOO) will unveil several new tools today to help create better matches between online ads and their target audiences. Among the services offered, ads can be customized based on which websites consumers have visited and their behavior on those sites, and marketers will be able to buy text ads targeted to users at a certain time of day or based on other factors like age or gender. Though other companies already offer some similar features, Yahoo is betting on its ability to harness a user base of hundreds of millions of monthly visitors.
  • Here's $300. Now shoo! American Express (AXP) is offering select customers a $300 prepaid AmEx gift card to pay off their balances and close their accounts. The unusual move underscores how badly the credit card market has deteriorated and the steps companies are willing to take to avoid what could become a massive surge in credit card defaults. American Express declined to disclose the specifics of which customers are eligible for the offer, but said the offer applied to a "relatively small number of cardmembers who have sizeable balances and little spending and payment activity."
  • Dark news from regional Feds. The Chicago Fed's National Activity Index inched up to -3.45 from -3.65 in December, but the three-month average of -3.41 was the lowest since at least 1975. According to the Dallas Fed's Texas Manufacturing Outlook Survey, factory activity deteriorated further in December. New orders and capacity utilization fell precipitously, with declines outnumbering increases 5 to 1.
  • German confidence keeps falling. German business confidence fell to a 26 year low in February as the worst recession since WWII led companies to slash production and fire workers. The IMF expects Germany's economy to contract 2.5% this year, despite stimulus efforts.

Earnings: Tuesday Before Open

  • FirstEnergy (FE): Q4 EPS of $1.09 beats by $0.06. Revenue of $3.2B vs. $3.32B. (PR)
  • Foster Wheeler (FWLT): Q4 EPS of $1.03 beats by $0.08. Revenue of $1.6B (+11.9%) vs. $1.8B. (PR)
  • GrafTech International Ltd (GTI): Q4 EPS of $0.49 beats by $0.11. Revenue of $265M (-1.7%) vs. $280M. (PR)
  • Heinz (HNZ): FQ3 EPS of $0.76 beats by $0.12. Revenue of $2.4B (-7.5%) vs. $2.5B. (PR)
  • Home Depot (HD): Q4 EPS of $0.19 beats by $0.04. Revenue of $14.6B (-17.3%) vs. $14.7B. (PR)
  • Macy's (M): Q4 EPS of $1.06 beats by $0.05. Revenue of $7.9B (-7.7%) in-line. (PR)
  • Magna International (MGA): Q4 EPS of -$0.68 in-line. Revenue of $4.8B (-29.3%) vs. $4.7B. (PR)
  • Medco Health Solutions (MHS): Q4 EPS of $0.59 beats by $0.01. Revenue of $13.0B (+13.9%) vs. $12.7B. (PR)
  • Office Depot (ODP): Q4 EPS of -$0.73 vs. consensus of -$0.06. Revenue of $3.27B (-15.4%) vs. $3.47B. Takes $1.27B charge for goodwill and trade-name impairments. (PR)
  • Pacific Gas & Electric (PCG): Q4 EPS of $0.70 beats by $0.04. "Looking ahead, we are confident that we are well positioned to continue making the needed investments to strengthen energy reliability and services for our customers." (PR)
  • Parker Drilling Company (PKD): Q4 EPS of $0.27 beats by $0.12. Revenue of $212.4M (+17.5%) vs. $225.7M. (PR)
  • Quanta Services (PWR): Q4 EPS of $0.24 beats by $0.05. Revenue of $921.5M (+4.8%) vs. $913.5M. (PR)
  • RadioShack (RSH): Q4 EPS of $0.50 misses by $0.20. Revenue of $1.3B (-7.7%) vs. $1.4B. (PR)
  • Sempra Energy (SRE): Q4 EPS of $1.30 beats by $0.39. Revenue of $2.3B (-26.3%) vs. $2.55B. (PR)
  • Target (TGT): Q4 EPS of $0.81 misses by $0.02. Revenue of $19.02B vs. $19.53B. Credit card receivables increased 9.6% to $9.1B from a year ago. (PR)
  • Tenet Healthcare (THC): Q4 EPS of -$0.02 in-line. Revenue of $2.2B (+5.7%) in-line. (PR)
  • Valeant Pharmaceuticals International (VRX): Q4 EPS of $0.52 beats by $0.24. Revenue of $183M (-3.1%) vs. $185M. (PR)
  • ViroPharma (VPHM): Q4 EPS of -$0.01 misses by $0.16. Revenue of $50M (+4.8%) vs. $61M. (PR)

Earnings: Monday After Close

  • DTE Energy Company (DTE): Q4 EPS of $0.80 misses by $0.18. Revenue of $2.17B (-1.8%) vs. $2.1B. Shares -2.4% AH. (PR)
  • Forest Oil (FST): Q4 EPS of $0.32 beats by $0.01. Revenue of $281M (-15.7%) vs. $331M. Shares +2.4% AH. (PR)
  • General Growth Properties (GGP): Q4 FFO of $0.70 misses by $0.15. Revenue of $1B (-2.8%) vs. $830M. Shares +16.7% AH. (PR)
  • Health Management Associates (HMA): Q4 EPS of $0.07 in-line. Revenue of $1.11B (+3.3%) in-line. (PR)
  • Healthcare Realty Trust (HR): Q4 EPS of $0.38 in-line. Revenue of $57.1M (+13.5%) vs. $58.3M. Shares +7.6% AH. (PR)
  • Hecla Mining Company (HL): Q4 EPS of -$0.24 misses by $0.13. Revenue of $27.5M (-24.1%) vs. $73M. Shares -1.2% AH. (PR)
  • Hertz Global (HTZ): Q4 EPS of -$0.22 misses by $0.17. Revenue of $1.79B (-16.4%) vs. $1.95B. (PR)
  • Mohawk Industries (MHK): Q4 EPS of -$1.87 vs. consensus of $0.24. Revenue of $1.49B (-17.8%) vs. $1.54B. Sees Q1 EPS of -$0.89 to -$0.80 vs. $0.28 consensus. Shares -15.1% AH. (PR)
  • Nordstrom (JWN): Q4 EPS of $0.31 beats by $0.01. Revenue of $2.3B (-8.5%) in-line. Sees 2009 EPS of $1.10-1.40 vs. $1.22. Shares +13.3% AH. (PR, earnings call transcript)
  • ONEOK (OKE): Q4 EPS of $0.65 misses by $0.02. Revenue of $2.84B (-28.7%) vs. $3.49B. Shares +1.6% AH. (PR)
  • St. Mary Land (SM): Q4 EPS of $0.43 misses by $0.11. Revenue of $258M (-6.2%) vs. $264M. Shares -2.1% AH. (PR)
  • Whiting Petroleum (WLL): Q4 EPS of -$0.07 misses by $0.01. Revenue of $224M (-3.7%) vs. $220M. Shares +2.5% AH. (PR)

Today's Markets

  • Asia markets declined Tuesday, largely a reaction to the lack of buying in Monday's U.S. session. Nikkei -1.46% to 7,269. Hang Seng -2.86% to 12,798. Shanghai -4.56% to 2,201. BSE Sensex -0.24% to 8,882.
  • In Europe markets opened down and moved lower, but are off from their lows at midday. London -1.1%. Paris -1.35%. Frankfurt -2.1%.
  • U.S. futures are up in the overnight session. Dow +0.6% to 7,160. S&P +0.6% to 749. Nasdaq +0.4%. Crude +0.3% to $38.56. Gold -0.5% to $989.40.

Tuesday's Economic Calendar

Seeking Alpha editor Eli Hoffmann contributed to this post.


Complete Story »]]> AIG AXP BAC DIA DNA DTE FE FST FWLT GGP GLD GTI HD HL HMA HNZ HR HTZ JPM JWN M MGA MHK MHS NWS ODP OKE PCG PKD PWR QQQQ RHHBY.PK RSH SM SPY SRE TGT THC USO VPHM VRX WLL YHOO SA Editor Rachael Granby Little Rays of Sunshine in the Markets http://seekingalpha.com/article/118958-little-rays-of-sunshine-in-the-markets?source=feed 118958 It’s 10 degrees where we are today, and it’s been cold here for a long. We’re hoping each day for more sun and warmth. Similarly, it’s been very cold for a long time in the stock markets. We are also hoping each day for stocks to move out of the deep freeze.

By no means are we stock bulls yet, but there are some other things moving. Clearly Treasuries have blossomed and gone by. Investment grade corporate bonds and municipals bonds have recovered nicely from the Q4 lows. Gold is strong. The Yen is very strong, and the Dollar is doing pretty well. Below investment grade corporate bonds and preferred stocks show some signs of life, but with high risk abounding.

]]> Fri, 06 Feb 2009 03:34:10 -0500 Richard Shaw Richard Shaw (QVM Group) submits:

It’s 10 degrees where we are today, and it’s been cold here for a long. We’re hoping each day for more sun and warmth. Similarly, it’s been very cold for a long time in the stock markets. We are also hoping each day for stocks to move out of the deep freeze.

By no means are we stock bulls yet, but there are some other things moving. Clearly Treasuries have blossomed and gone by. Investment grade corporate bonds and municipals bonds have recovered nicely from the Q4 lows. Gold is strong. The Yen is very strong, and the Dollar is doing pretty well. Below investment grade corporate bonds and preferred stocks show some signs of life, but with high risk abounding.


Complete Story »]]> CEPH CHG COCO ESI IDCC MNRO MYGN NJR OSIR SHM SINT SJI SPY SXCI VRX Richard Shaw