4:57PM CBOE Holdings announces September average daily volume decreased 2% year over year to 4.77 mln (CBOE) 46.76 +1.53 : Co reported today that September trading volume for options contracts on Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2SM) and futures contracts on CBOE Futures ExchangeSM (CFE) totaled 95.48 million contracts. Average daily volume (ADV) was 4.77 million contracts, a three-percent increase from August 2013 and a two-percent decrease from September 2012.
4:55PM Star Bulk Carriers announces public offering of common stock, size not disclosed (SBLK) 10.22 +0.09 : Co announced an underwritten public offering of common shares. The Company intends to use the net proceeds of this offering to partially fund the acquisition of nine identified newbuilding vessels, future vessel acquisitions and general corporate purposes, including working capital. Morgan Stanley is acting as the sole book-running manager for the offering.
4:45PM Cirrus Logic acquires Acoustic Technologies, terms not disclosed (CRUS) 22.97 +0.31 : Co announced today that it has acquired Acoustic Technologies, Inc. The Mesa, Ariz.,-based firm is a leader in embedded firmware voice processing technology, including noise reduction, echo cancelation and voice enhancement. Acoustic Technologies has approximately 30 employees who have now joined Cirrus Logic.
4:39PM IntercontinentalExchange prices $1.4 bln in senior notes (ICE) 183.93 +2.51 : Co announced that its subsidiary IntercontinentalExchange, Group priced an underwritten public offering of $1.4 billion in new senior notes. The senior notes comprise $600 million in aggregate principal amount of 2.50% Senior Notes due 2018 and $800 million in aggregate principal amount of 4.00% Senior Notes due 2023.The offering is being made under a shelf registration statement and is expected to close on October 8, 2013, subject to customary closing conditions.
4:38PM Avnet acquires majority interest in MSC Investoren GmbH (AVT) 42.57 +0.86 : Co announced today that it has acquired a majority interest in MSC Investoren GmbH as the first step of a two part transaction in which Avnet will ultimately acquire the remainder of the company. MSC is a recognized value-add distributor focused on electronic component distribution, embedded computing technology and display solutions, as well as design and manufacturing. MSC leverages its unique combination of distribution, production and system integration capability to address the emerging customer demand for more complex electronic products. In calendar year 2012, MSC generated revenue in excess of US$450 million, with embedded computer technology (including display solutions) accounting for almost 50 percent of its sales.
4:36PM StemCells announces proposed public offering of common stock; size not disclosed (STEM) 1.68 0.00 : Co announced that it intends to offer and sell common stock and warrants, subject to market and other conditions, in an underwritten public offering. StemCells intends to use the net proceeds of the offering for general corporate purposes, including working capital and operational purposes, including product development. Chardan Capital Markets is acting as sole bookrunner for the offering and Maxim Group LLC is acting as co-manager on the deal.
4:36PM SunCoke Energy Partners completes Kanawha River Terminals acquisition; expected to be immediately accretive (SXCP) 23.72 -0.08 : Co completed the acquisition of 100 percent of the ownership interest in Kanawha River Terminals LLC for $86 million. SXCP financed this acquisition with a combination of available cash and its existing revolving credit facility.
KRTs operations are expected to be immediately accretive to SXCP's cash flows and earnings, generating a projected $12 million in EBITDA on an annualized basis and contributing an estimated $6 million, or $0.18 per unit, to distributable cash flow annually.
4:35PM Adept Tech appoints Seth Halio as CFO (ADEP) 7.05 -0.15 : Co announced that Mr. Seth Halio has been named as Chief Financial Officer effective October 3, 2013. Prior to joining Adept, Seth held senior level finance positions including CFO at LED Engin, Inc., Novariant, Inc., Diamond Foods, Inc., and Spectra-Physics, Inc.
4:34PM Rollins announces it purchased 168,110 shares under its share repurchase program in Q3; 340,699 shares repurchased year to date (ROL) 26.80 +0.29 : In total, 4,957,484 additional shares may be purchased under previously approved programs by the Board of Directors. The program does not have an expiration date.
4:33PM Berry Plastics announces transactions in support of strategic initiatives: Acquires Graphic Packaging's Flexible Plastics and Film business (BERY) 20.11 +0.14 : Co announced that it has finalized two transactions in support of the Company's strategic initiatives. On September 29, 2013, the Company completed the acquisition of Graphic Packaging's Flexible Plastics and Film business and, on September 27, the Company completed the sale of its Kits and Catering business. The terms of the transactions were not disclosed. Graphic Packaging's Flexible Plastics and Film business generated approximately $100 million in revenue for the twelve months ended June 2013. The Company expects the acquisition to be deleveraging after achieving synergies.
Berry Plastics completed the sale of its Kits and Catering businesses to WNA a division of the Waddington Group Inc. June LTM sales associated with the Kits and Catering businesses were approximately $26 million. WNA is a leading manufacturer of disposable dinnerware, serving ware, cutlery and custom packaging products.
Berry Plastics also announced the related closure of its Coon Rapids, Minnesota, facility.
4:30PM Fluidigm and NanoString (NSTG) agree to litigation settlement; NSTG to remove all references to a single-cell comparison study comparing Fluidigm and NanoString (FLDM) 22.02 +0.08 : Fluidigm Corporation (FLDM) and NanoString Technologies, Inc. (NSTG) have agreed to settle lawsuits filed by Fluidigm against NanoString. The terms of the settlement require NanoString to, among other things, remove all references -- from its marketing materials, website, and promotional activities -- to a single-cell comparison study comparing Fluidigm and NanoString single-cell products, as well as recall and destroy all materials related to and/or based on the study.
4:26PM MAXIMUS signs contract with U.S. Department of Education, Office of Federal Student Aid valued at ~$143 mln (MMS) 46.85 +1.81 : Co announced today that its MAXIMUS Federal Services subsidiary has signed a new contract with the U.S. Department of Education, Office of Federal Student Aid (FSA), to provide Operation and Maintenance support for the Debt Management and Collections System (DMCS). The contract has an approximate two-year and three month base period valued at approximately $143.3 million and eight one-year option periods. Based on estimated volumes, the total contract value is expected to be approximately $848.4 million if all options are exercised. The base contract will begin on September 30, 2013 and will run through December 31, 2015.
4:23PM Delcath: FDA grants orphan drug designation to Delcath Systems for use of melphalan hydrochloride in HCC (DCTH) 0.31 -0.02 : Co announced that the FDA has granted the Company orphan drug designation for melphalan in the treatment of patients with hepatocellular carcinoma (HCC, or primary liver cancer). Melphalan for use with the Delcath Hepatic Delivery System is not currently approved in the United States for the treatment of patients with HCC.
4:20PM Memorial Production Partners announces public offering of 14.5 mln common units (MEMP) 21.04 +0.20 : Co announced today that it has commenced an underwritten public offering of 14,500,000 common units representing limited partner interests in MEMP. MEMP intends to use the net proceeds from the offering, including the proceeds from any exercise of the over-allotment option of common units, to repay a portion of the outstanding borrowings under its revolving credit facility. BofA Merrill Lynch, Barclays, Citigroup, Goldman, Sachs & Co., J.P. Morgan, Raymond James, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities are acting as joint book-running managers for the offering.
4:16PM Ensign Group announces final settlement with US Department of Justics (ENSG) 41.69 +0.58 : Co announced that it has completed and executed a settlement agreement with Department of Justice and has received the final approval of the Office of Inspector General-HHS and the United States District Court for the Central District of California. The settlement agreement fully and finally resolves the previously disclosed DOJ investigation and ancillary claims which have been pending since 2006. In connection with the settlement and effective as of October 1, 2013, Ensign entered into a five-year corporate integrity agreement with the Office of Inspector General-HHS. In addition, pursuant to the settlement agreement, Ensign will make a single lump-sum remittance to the government in the amount of $48 million in October 2013. Ensign has denied engaging in any illegal conduct, and has agreed to the settlement amount without any admission of wrongdoing in order to resolve the allegations and to avoid the uncertainty and expense of protracted litigation.
The Company does not expect the settlement and remittance to have a material adverse effect on the Company's long-term financial position, business plan or prospects. The Company will incur ongoing costs associated with enhanced compliance activities, including monitoring expenses and other costs under the corporate integrity agreement as well as interest expense on a portion of the settlement amount, totaling approximately $2.5 million annually. In anticipation of the settlement, the Company recorded a $15 million charge in the fourth quarter of 2012, and increased its reserve by an additional $33 million in the first quarter of 2013.
4:16PM Williams Cos and Boardwalk Pipeline Partners (BWP) sign joint venture agreements for proposed LPG export terminal (WMB) 36.75 +0.39 : The terminal is being designed to store 900,000 barrels of fully refrigerated propane and butane with a load-rate of 25,000 barrels per hour. Williams and Boardwalk are currently working with a number of parties to reserve off-take capacity at the terminal. If completed, the terminal would facilitate the export of a portion of the propane and butane components of the natural gas liquids transported on the proposed Bluegrass Pipeline and separated at the Moss Lake Fractionation plant, both of which are also being developed by a joint venture between Williams and Boardwalk.
4:15PM KBR awarded a contract by International Paper (IP) to provide total maintenance services for a paper mill located in Svetogorsk, Russia (KBR) 33.37 +0.73 : The undisclosed contract value will be booked into backlog in KBR's third quarter of 2013.
4:12PM Team misses by $0.13, misses on revs; lowers FY14 EPS below consensus, lowers FY14 revs below consensus; authorized the repurchase of up to an initial $25 mln of TISI common stock (TISI) 40.00 +0.25 : Reports Q1 (Aug) earnings of $0.23 per share, excluding non-recurring items, $0.13 worse than the Capital IQ Consensus Estimate of $0.36; revenues rose 7.9% year/year to $174.3 mln vs the $178.09 mln consensus.
Co issues lowered guidance for FY14, sees EPS of $1.55-1.85 from prior guidance of $1.90-2.05 vs. $2.01 Capital IQ Consensus Estimate; lowers FY14 revs to $765-790 mln from prior guidance of $775-800 mln vs. $792.82 mln Capital IQ Consensus Estimate.
The adjusted net income available to shareholders for the current year quarter excludes $0.7 million in pre-tax, non-routine severance costs associated with the business unit realignment previously announced. Including these costs, net income available to shareholders in accordance with generally accepted accounting principles was $4.5 million, or $0.21 per diluted share.
Team's Board of Directors has authorized the repurchase, in open market transactions, of up to an initial $25 million of Team common stock effective immediately. Based upon the current market share price, the stock repurchase plan represents approximately 3% of Team's issued and outstanding shares.
4:10PM Omega Health announces $75 mln public offering of common stock (OHI) 30.66 +0.79 : Co announced an underwritten public offering of shares of its common stock with an aggregate offering price of $75,000,000. Omega expects to use the proceeds for general corporate purposes, which may include funding the previously announced pending sale/leaseback transaction for 56 facilities currently operated by Ark Holding Company, Inc. Completion of the offering is subject to customary closing conditions. Jefferies LLC will serve as the underwriter of the offering.
4:10PM Memorial Production Partners announces closing of acquisition of oil and gas properties, distribution increase, borrowing base increase, updated commodity hedge positions and updated 2013 and 2014 guidance (MEMP) 21.04 +0.20 : In conjunction with the closing of the acquisition, co increases the distribution rate to $0.55 per unit for the third quarter of 2013. This distribution represents an 11.1% increase over the quarterly distribution of $0.4950 per unit related to the third quarter of 2012 and a year to date increase of approx 8.4% over the quarterly distribution of $0.5075 per unit.
4:09PM Chambers Street Properties obtains $1.37 bln of unsecured financing capacity (CSG) 8.89 +0.11 : CSG announced that it has completed an amended, restated and consolidated credit agreement, providing co with approximately $1.25 bln of new and refinanced unsecured borrowings and available capacity. This financing activity is in addition to a recently-completed $120 mln unsecured term loan, bringing the aggregate capacity of recent unsecured financings to $1.37 bln.
4:09PM Myriad Genetics and BioMarin (BMRN) advance PARP collaboration into Phase 3 (MYGN) 25.31 +1.81 : Co announced that BioMarin Pharmaceutical (BMRN) will use Myriad's BRACAnalysis test in connection with its pivotal Phase 3 clinical studies for BMN 673. BMN 673 is a novel, orally-active PARP inhibitor designed to induce synthetic lethality in BRCA-deficient cells. Myriad will collaborate with BioMarin to deliver BRAC testing for its pivotal clinical studies. As required by the FDA, Myriad also submitted an Investigational Device Exemption (IDE) to the FDA that will allow for BRACAnalysis testing to be used as a companion diagnostic to stratify patients in the BMN 673 clinical program. Additional terms of the deal were not disclosed.
4:09PM Pacific Ethanol to use sugar to further diversify its feedstock (PEIX) 3.56 +0.05 : PEIX announced that co entered into an agreement to purchase surplus raw beet sugar for use as ethanol feedstock. The Pacific Ethanol Plants purchased 167 mln pounds of surplus raw beet sugar to be blended with corn at the Pacific Ethanol Plants over the next year, representing feedstock for approximately 12 million gallons of ethanol.
4:08PM Southern subsidiary, Georgia Power, announces planned redemption of Series 2008C 8.20% senior notes due Nov 1, 2048 (SO) 41.19 +0.01 : Co announced the planned redemption on November 1, 2013 of all $100 million aggregate principal amount of its Series 2008C 8.20% Senior Notes due November 1, 2048. The redemption price for the full redemption of the Series 2008C 8.20% Senior Notes due November 1, 2048 (GAT) will be 100% of the principal amount thereof ($25 per senior note), plus accrued and unpaid interest to the date of redemption.
4:08PM Global Payment beats by $0.05, beats on rev; raises FY14 EPS above consensus, reaffirms FY14 revs guidance; names Jeffery Sloan CEO, announces $100 mln accelerated share repurchase (GPN) 50.70 -0.38 : Reports Q1 (Aug) earnings of $1.00 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.95; revenues rose 6.7% year/year to $629.7 mln vs the $624.13 mln consensus.
Co issues guidance for FY14, raises EPS $0.05 to $3.98-4.05 (from $3.93-4.00), excluding non-recurring items, vs. $3.97 Capital IQ Consensus; reaffirms FY14 revs of $2.51-2.56 bln vs. $2.53 bln Capital IQ Consensus Estimate.
Global Payments intends to enter into an accelerated share repurchase (ASR) plan this month to repurchase up to $100 million of the co's common stock. The ASR is part of the Board authorized program to repurchase up to $250 million of the co's common stock.
Jeffrey Sloan, currently Global Payments' President, has been named by the Board of Directors to also serve as the co's Chief Executive Officer, effective immediately.
4:07PM Facebook confirms earnings will be released after market close on Wednesday, October 30 (FB) 50.42 +0.19 :
4:07PM Intercept Pharma announces additional results of Global Primary Biliary Cirrhosis; study group analysis to be presented at AASLD Annual Meeting; Data support strong statistical association of PBC Biochemical endpoint with clinical outcomes (ICPT) 76.82 +7.79 : Data from over 3,895 PBC patients collected and pooled by an independent group of 15 academic medical centers across eight countries have been analyzed by the Global PBC Study Group. These analyses are expected to further confirm that the surrogate biochemical endpoint used by Intercept in its ongoing Phase 3 POISE trial (i.e., alkaline phosphatase (ALP) < 1.67x upper limit of normal and normal bilirubin) is strongly predictive of adverse clinical outcomes in PBC patients.
'We plan to initiate a Phase 2 proof-of-concept study of OCA in primary sclerosing cholangitis, or PSC, in 2014. PSC is a disease that causes inflammation and subsequent obstruction of the bile ducts both inside and outside the liver. OCA has been granted orphan drug designation for the treatment of PSC in the United States'.
4:05PM GlobalScape announces James Bindseil appointed Interim President (GSB) 1.52 -0.08 : Mr. Bindseil has served in a variety of roles since joining co in 2010, most recently as Senior Vice President of Customer Operations as well as being head of the Company's Sales, Managed Solutions, and Support Organizations.
4:03PM SBA Comm: Conversion right triggered on co's 4.0% convertible senior notes (SBAC) 79.42 -1.04 : SBAC announced that co's 4.0% convertible senior notes due 2014 are convertible by holders of such notes. The conversion right for the 4.0% notes has been triggered because SBA's Class A common stock closing price per share exceeded $39.49 for at least 20 trading days during the 30 consecutive trading day period ending on 9/30/13. The 4.0% notes will continue to be convertible until 12/31/13, and may be convertible thereafter, if one or more of the conversion conditions is met.
4:03PM Resources Connect misses by $0.02, misses on revs (RECN) 13.68 +0.11 : Reports Q1 (Aug) earnings of $0.09 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.11; revenues fell 3.8% year/year to $131.7 mln vs the $133.43 mln consensus.
"Our first quarter was challenging due to cautious spending by our clients," said Tony Cherbak, president and chief executive officer of RGP. "However, we are encouraged to see Q-2 start positively with post Labor Day average weekly revenue over $11 million as some of our clients start larger scale initiatives."
Gross margin was 37.7% in Q1 of FY14, decreasing 130 basis points quarter-over-quarter and 120 basis points sequentially. The decline in gross margin quarter-over-quarter was primarily attributable to increased healthcare costs and a decline in the bill rate/pay rate ratio. The first quarter gross margin sequential decline was attributable to similar trends in healthcare costs and the bill rate/pay rate ratio and to paid holidays in the US in the first quarter of fiscal 2014 (there were no paid holidays in Q4 of FY13.
4:02PM Span-America Medical announces expectations for FY14; the sales decline is expected to reduce fiscal 2014 diluted earnings per share by ~$0.10 - $0.15/share (SPAN) 21.33 -0.18 : Co announced that it expects consumer sales to be lower in fiscal 2014 because a major retail customer has selected another supplier in a competitive selection process. Span-America's sales to this customer are expected to decrease by ~$13.3 million in fiscal 2014 compared with fiscal 2013, which includes the previously announced loss of the November seasonal promotion. The sales decline is expected to reduce fiscal 2014 diluted earnings per share by ~$0.10 - $0.15 compared with fiscal 2013, after factoring in the expected benefits from planned sales growth in other parts of Span-America's business in fiscal 2014.
"We expect to continue supplying consumer bedding products to this customer at normal levels through January 2014. Starting in February, we expect our customer to begin purchasing these products from the new supplier. However, we also believe we will have opportunities to make new proposals to this same customer for other retail programs that will take place in 2014."
4:02PM Team Health Holdings names Daniel Virnich Chief Medical Officer (TMH) 38.86 +0.92 : Co announces the appointment of Daniel Virnich, MD, MBA, as chief medical officer for TeamHealth Hospital Medicine (THHM). In his new role, effective Oct. 1, Dr. Virnich will be responsible for the clinical effectiveness of THHM programs and will play a role in the organization's clinical integration efforts. Dr. Virnich previously served as a regional medical director for THHM's west division.
4:02PM Bridge Bancorp announces proposed common stock Offering of $25 mln (BDGE) 22.06 +0.56 : Co intends to commence an underwritten public offering of $25 million of its common stock. The purpose of the offering is in part to provide additional capital to Bridge Bancorp to support its acquisition of FNBNY Bancorp, Inc. and for general corporate purposes. RBC Capital Markets, LLC will act as the sole book-running manager for the offering and Sandler O'Neill + Partners, L.P. will serve as co-manager.
4:01PM Tile Shop appoints Chris Homeister as Chief Operating Officer (TTS) 28.94 -0.55 : Co announced the appointment of Mr. Chris Homeister as Chief Operating Officer, a new position within the Company. In this role, Mr. Homeister will oversee supply chain, retail operations and merchandising. This appointment is effective immediately.
4:01PM Pacira Pharma announces partnership to support uptake of EXPAREL among the orthopedic marketplace; Five-year arrangement with CrossLink Bioscience follows initial pilot program (PCRX) 50.85 +2.77 : Under the agreement, CrossLink will act as a local agent as well as a lead partner in current collaboration with additional distributors in select markets across the United States to promote and sell EXPAREL (bupivacaine liposome injectable suspension) for postsurgical pain management following orthopedic procedures. CrossLink is compensated on a variable cost basis, based on performance in designated hospitals and geography, reported monthly to co. The parties may elect, by mutual agreement, to add additional orthopedic distributors and/or geographies to the five-year agreement. In addition, co and Crosslink have mutual termination rights under the agreement, with co having unilateral termination rights under certain circumstances. The agreement also permits co to terminate without cause effective September 30, 2016, subject to certain terms and conditions.
4:01PM Synergetics announces plan to close King of Prussia, PA facility and to consolidate manufacturing operations in O'Fallon, MO (SURG) 4.99 +0.44 : The King of Prussia facility manufactures the co's bipolar electrosurgical generators, including the neurosurgical, pain-control and related irrigation units, and employs approximately 24 workers. Manufacturing that is currently performed in this facility will be transitioned to the O'Fallon facility. These activities are expected to cost the co approximately $900,000 over the next 14 months. The co expects the announced activities to result in a reduction in operating expense of more than $1 mln on an annualized basis beginning in fiscal year 2016.
3:33PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
3:31PM Woodward announces refinancing of $100 mln of its 5.63% Series B Senior Notes due Oct 1, 2013 (WWD) 40.92 +0.09 : Co announced it has entered into a note purchase agreement with institutional investors and completed a senior notes issuance of $100 mln in aggregate principal amount consisting of three series of senior notes with seven-, ten-, and twelve-year maturities. The notes have an effective weighted average interest rate of 3.76%. The co intends to use the proceeds of the notes to repay all of its outstanding 5.63% Series B Senior Notes due October 1, 2013.
Under the terms of the note purchase agreement, Woodward also intends to issue an additional $150 mln in aggregate principal amount of senior notes, including one series of floating rate notes, with similar maturities and an overall effective weighted average interest rate on the fixed rate notes of 4.11%, on Nov 15, 2013.
3:24PM S&P +7.9 and Dow +17 slip to minor new afternoon lows -- Nasdaq Comp +30 (SPY) :
3:17PM SED International Holdings: Paragon responds to 'colossal' losses at SED; says 'SED needs a new face at the Board level' (SED) 1.96 -0.09 : Letter states: 'On September 30, 2013, SED International Holdings announced one of its worst financial performances in its 33 year history. In 12 months, SED lost nearly $16 million. Of even greater concern is the 67% permanent loss -- equivalent to $16.8 million or $3.14 per share - of shareholder equity, your only claim to this business. After almost five years under the same Board leadership, this Board has continued to confirm their inability and ineptness at turning around SED. We should note to shareholders that SED's current Executive Chairman, Samuel Kidston, has had a similar uninspiring track record in turning around the two other companies in which he exercises control...
In less than five years, this Board has spent over $9 million in restructuring, severance, and consulting costs, and over $2.5 million in Board compensation. They have given themselves hundreds of thousands of stock options. And SED shareholders today have a company that is worth significantly less than it was before... SED needs a new face at the Board level. SED cannot afford another year, or even quarter, under the current regime. They have exhausted all their credibly to be the good stewards over shareholders' rapidly disappearing assets... SED cannot afford another year like 2013 if it is to have any possible chance of getting back what has been so quickly taken from shareholders."
2:58PM Index Change Reminder (INDXCH) : Santarus (SNTS) will replace Volterra Semiconductor (VLTR) in the S&P SmallCap 600; S&P SmallCap 600 constituent Mid-America Apartment Communities (MAA) will replace Monster Worldwide (MWW) in the S&P MidCap 400, Monster Worldwide will replace Mid-America Apartment Communities in the S&P SmallCap 600, and Green Dot (GDOT) will replace Colonial Property Trust (CLP) in the S&P SmallCap 600 after the close of trading today.
2:48PM NYMEX Energy Closing Prices (COMDX) :
2:30PM Salix Pharma and Progenics (PGNX) announce FDA Advisory Committee scheduled to review RELISTOR sNDA for opioid-induced constipation in patients with chronic pain (SLXP) 69.78 +2.90 : Co and Progenics Pharmaceuticals (PGNX) announced that the FDA will convene an Advisory Committee on March 10-11, 2014 at which time Salix's Supplemental New Drug Application (sNDA) for RELISTOR (methylnaltrexone bromide) Subcutaneous Injection, for opioid-induced constipation, or OIC, in patients with chronic pain will be considered. The date and agenda for the Advisory Committee will not be definitive until publication in the Federal Register.
2:28PM Dollar Holds Little Changed: 10-yr: -10/32..2.648%..USD/JPY: 97.96..EUR/USD: 1.3528 (SUMRX) : The Dollar Index holds little changed as a quiet session nears the close. Early selling provided a test of the 80.00 level, but that area was able to hold as trade rallied back to the flat line near 80.20. Click here to see a daily Dollar Index chart.
2:22PM CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (COMDX) :
2:12PM Amazon.com edges higher to challenge its late-Sept range highs along the 319/320 area (AMZN) 318.53 +5.89 :
2:10PM Piedmont announces agreement to acquire natural gas system serving Fort Bragg in North Carolina (PNY) 32.86 -0.02 : Co announced that it has reached agreement with the United States Department of Defense (DOD) to purchase, expand and operate the natural gas pipeline distribution system serving Fort Bragg near Fayetteville, North Carolina. The agreement follows a trend of public/private partnerships that serve to privatize utility infrastructure located on U.S. military bases across the country. The agreement and its associated tariffs have been filed with the North Carolina Utilities Commission for approval.
1:57PM COMEX Metals Closing Prices (COMDX) :
1:46PM Daimler AG: Mercedes-Benz USA unit reports September sales increased 5.8% y/y to 27,474 units (DDAIF) 78.65 +0.53 :
1:46PM 21st Century Fox climbs higher midday in its attempt to breakout above its 2-month range highs along the $33-area... (FOXA) 34.05 +0.54 : Strength also seen among peer Media/Broadcasting stocks like TWX, CBS, VIAB, and DIS.
1:45PM Hyundai Motor America unit reports September sales decreased 8% y/y to 55,102 units (HYMTF) 51.00 -1.80 :
1:42PM Interactive Brokers reports brokerage metrics for Sep 2013; DARTs up 16% y/y (IBKR) 18.83 +0.06 : Co reported its Electronic Brokerage monthly performance metrics for September. Highlights for the month included:
1:38PM Stock indices slip slightly under midday range lows -- S&P +11.6, Nasdaq Comp +34.9, Dow +55 (TECHX) :
1:37PM Kia Motors America reports September sales of 38,003 units vs 48,105 units in September 2012 (down 21% y/y) :
1:33PM American Honda Motor reported September U.S. sales decreased 9.9% y/y to 105,563 units (a decrease of 2.1% based on the Daily Selling Rate) (HMC) 38.28 +0.14 :
1:18PM Oncolytics Biotech collaborators to present positive clinical trial data at the 15th Annual World Conference on Lung Cancer (ONCY) 2.38 -0.06 : Co announced that abstracts detailing results from two Phase II studies examining the use of REOLYSIN in combination with carboplatin and paclitaxel in patients with non-small cell lung cancer (NSCLC) with Kras or EGFR-activated tumors (REO 016) and in patients with squamous cell carcinoma of the lung (REO 021), are now available on the International Association for the Study of Lung Cancer (IASLC) World Conference on Lung Cancer website at http://wclc.iaslc.org. The conference is being held from October 27th to 30th, 2013 in Sydney, Australia.
The first abstract, titled "Final Results of a Phase 2 Trial of the Oncolytic Virus REOLYSIN in Metastatic NSCLC Patients with a Ras-activated Pathway," indicated that patients received reovirus (3 x 1010 TCID50) intravenously daily on days one to five, in combination with paclitaxel at initial doses of paclitaxel 175 mg/m2 and carboplatin AUC 5, on day one of each 21-day cycle. Of the 36 evaluable patients with sufficient follow up to date, profession free survival (PFS) at six months is 36% and one-year survival, 53%.
The second abstract, titled "A Phase 2 Study of Intravenous Administration of REOLYSIN (Reovirus Type 3 Dearing) in Combination with Paclitaxel (P) and Carboplatin (C) in Patients with Squamous Cell Carcinoma of the Lung," reflects information submitted to the IASLC conference in June 2013, prior to the Company's subsequent announcement of updated data from the REO 021 study in the press release dated September 9, 2013.
1:07PM Swift Energy hires advisor for the potential sale of its central Louisiana assets (SFY) 11.88 +0.46 : Co reported that it has retained Scotia Waterous (USA) Inc. as its exclusive advisor in the potential sale of its Central Louisiana assets. The Company's Central Louisiana asset position includes approximately 86,000 mineral acres and three producing oil and natural gas fields: Burr Ferry, Masters Creek, and South Bearhead Creek located in the Austin Chalk and Wilcox fairways. The audited proved reserves estimates at year end 2012 totaled 20.4 million barrels of oil equivalent of which 65.2% were classified as oil or natural gas liquids. The Company estimates that the resource potential of these fields is approximately 180 million barrels of oil equivalent.
During the third quarter, estimated daily production of these assets has averaged 2,651 barrels of oil equivalent per day. Increased production levels in the third quarter are primarily due to two new well completions. In the Burr Ferry field, the non-operated Indigo 17-1 has been completed and tested. Initial production rates of this well, as reported by the operator, were 617 barrels of oil per day and 4.8 million cubic feet of gas per day on a 24/64" choke with flowing tubing pressure of 5,400 psi. This well is producing to permanent facilities and is online.
1:02PM Merck: Interim data for MK-3475 to be presented at 15th World Conference on Lung Cancer (MRK) 48.82 +1.21 : Co confirmed that interim data from the company's Phase IB expansion study (PN 001) evaluating the efficacy and safety of MK-3475 in patients with refractory non-small cell lung cancer (NSCLC) is scheduled for presentation at the 15th World Conference on Lung Cancer on Oct. 29 at 4:15 p.m., (1:15 a.m. EDT), in Sydney, Australia. An abstract (# 2416) published today summarized preliminary findings from 38 patients with NSCLC treated with MK-3475. Data from additional patients and an analysis of tumor PD-L1 expression is scheduled to be presented by Dr. Edward Garon, Director of Thoracic Oncology, Jonsson Comprehensive Cancer Center, University of California, Los Angeles, during the conference.
The published abstract describes early data for 38 patients with NSCLC treated with MK-3475 as a single agent dosed at 10mg/kg every three weeks. The preliminary objective response rate (confirmed and unconfirmed) was 24 percent as measured using investigator-assessed immune related response criteria (irRC) and 21 percent, (confirmed and unconfirmed), by RECIST v1.1. The most common treatment-related adverse events observed were fatigue, rash, and pruritus (16 percent each); diarrhea grade 1 or 2 occurred in 13 percent of patients. One case of a drug-related grade 3 pulmonary edema was reported.
12:55PM Major averages hovering near tight midday range lows -- Dow +61, S&P +12.8, Nasdaq Comp +38 (TECHX) :
12:36PM Mazda Motor North American reports September sales decreased 6.9% y/y to 22,464 vehicles (MZDAY) 44.10 -0.77 :
12:32PM Mitsubishi Motors North America reports September sales decreased 16.7% y/y to 4,001 units :
12:31PM Major averages set fresh session highs in midday trade -- Dow +73, S&P +14, Nasdaq Comp +42 (SPY) :
12:18PM Subaru of America reports September sales increased 15% y/y to 31,755 vehicles :
12:15PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
12:11PM Porsche Cars North America unit reports September sales increased 13% y/y to 3,093 vehicles (POAHY.PK) 8.78 +0.06 :
12:04PM Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (332) outpacing new lows (24) (SCANX) : Stocks that traded to 52 week highs:
AAMC, AAON, ABCO, ABG, ABM, ACIW, ACMP, ACTV, AER, AFG, AGX, AIQ, ALU, AMBA, AMIC, ANLY, ANW, APFC, APOG, ARAY, ARG, ARW, ASML, ASPS, ASYS, ATHL, ATR, ATRC, ATRI, ATTU, ATU, AVGO, AVT, AWH, AYI, BBVA, BCRX, BFR, BID, BIDU, BMA, BMO, BPI, BR, BREW, BRID, BRS, BT, BWLD, CAMP, CASY, CAVM, CBI, CCC, CE, CEB, CEC, CECE, CELG, CEMP, CERS, CLB, CLR, CLS, CMG, CMN, CNK, COLE, CRS, CRVL, CRZO, CSIQ, CSL, CTRP, CTS, CUB, CUBE, CVD, CVLT, CVO, CXDC, CXO, CYT, DAN, DECK, DEPO, DLPH, DOC, DPZ, DRQ, DW, DXPE, DYAX, ECL, EDG, EDMC, EDN, EDU, EEFT, EGAN, EGBN, EGN, EIG, ELLO, ENDP, ENH, ENS, EVK, EWBC, EXR, FC, FCAP, FELE, FI, FICO, FN, FOE, FOXA, FSS, FTK, FUL, GCI, GDOT, GENT, GEVA, GGG, GIVN, GK, GLPW, GNC, GPN, GPOR, GRO, GSAT, GTLS, HCA, HCI, HELE, HF, HOG, HSOL, IBCA, ICLR, ICPT, IDXX, IEX, IGLD, IILG, IKNX, IM, INCY, INTL, IOSP, IQNT, ISIL, ISRL, ITT, JBT, JKHY, JKS, JOBS, JW.A, KAR, KED, KGJI, KOG, KWR, LAD, LCC, LCI, LDL, LII, LIN, LKQ, LNG, LOPE, LTD, LXFT, LXRX, MASI, MBT, MCY, MDCA, MEI, MELI, MENT, MGLN, MGM, MHR, MILL, MMP, MMS, MOD, MOVE, MPAA, MPEL, MTD, MTRX, MTSN, MTX, MWE, NCR, NEOG, NFG, NFLX, NNBR, NPO, NSP, NTRI, NWPX, NXST, OAS, OMG, OMN, ORI, OSK, OTEX, PAM, PATK, PB, PCLN, PCRX, PCYC, PETM, PFSW, PII, PLL, PLXS, PMTC, PNFP, PNK, POWL, PRFT, PRIM, PSDV, PSE, PTNR, PVA, PWX, PXD, QIWI, QTWW, QUMU, RATE, RE, RHI, RLI, RNWK, ROSE, ROST, RPM, RPTP, RRGB, SATS, SCS, SGC, SGMS, SHBI, SHEN, SI, SKM, SM, SNPS, SOHU, SPW, SSP, SSS, SSW, STAA, STAN, STML, STRZA, SWFT, SWK, SXT, SYBT, SYNT, TARO, TASR, TDS, TEF, TESS, THO, TK, TMUS, TNC, TPC, TPGI, TPLM, TRAK, TREE, TRIB, TSCO, TSL, TTPH, TW, TWX, TXTR, TYL, TYPE, UA, UFPT, UHS, ULTA, UNF, URI, UTHR, VLTR, VOD, VPRT, VRX, VTSS, WAB, WAL, WCG, WCN, WEN, WFT, WGO, WLK, WLL, WMS, WPO, WPP, WRLD, WVVI, WWWW, WYNN, XEC, YGE, YHOO, ZLCS
Stocks that traded to 52 week lows:
ACHN, ALJ, AMBC, ARNA, AUQ, CTRL, GFI, GORO, GRT, GSS, HMY, HTWR, IMRS, JVA, NLP, NOR, OMED, PAAS, PTX, TGD, THM, VGZ, VVUS, WD
ETFs that traded to 52 week highs:
EWO, EWP, FAN, FDN, IBB, IWC, IWM, MDY, PBD, PBW, TAN, UWM, XOP
ETFs that traded to 52 week lows:
JO
12:01PM Exelis subsidiary, Exelis Visual Information Solutions, will now deliver its image and data visualization analysis software packages to NASA with a blanket purchase agreement (XLS) 15.98 +0.27 :
12:00PM Nissan Motor North America unit reports September U.S. sales decreased 5.5% y/y to 86,868 vehicles (NSANY) 20.29 +0.08 :
11:58AM European Markets Closing Prices (SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
11:50AM Ashford Hospitality Trust announces it expects to complete spin-off of Ashford Hospitality Prime, Inc. during the fourth quarter of this year (AHT) 12.85 +0.51 :
11:50AM EPR Properties announces dismissal of $1.5 bln lawsuit brought by Concord Associates (EPR) 49.91 +1.17 : Co announced that the United States District Court for the Southern District of New York has dismissed a $1.5 billion antitrust suit against EPR Properties, EPT Concord, and EPT Concord II, Empire Resorts, Inc. and Monticello Raceway Management, and Kien Huat Realty III Limited and Genting New York. EPR and all other defendants moved to dismiss the amended complaint on a number of grounds, including Plaintiffs' failure to plead antitrust injury, failure to plead appropriately tailored product and geographic markets, and failure to plead monopoly power or to allege facts showing that defendants engaged in a conspiracy to monopolize.
11:48AM SPDR Retail extends to 83.15, its Sep peak is at 83.20 with the multi-year high from Aug at 83.24 (XRT) 83.15 +1.13 :
11:46AM Nasdaq 100 +30 joins Nasdaq Comp +37 and Russell 2000 +11.4 at new multi-year high (TECHX) : The Dow +74 is 500 points below its Sep peak (S&P 34 points below).
11:45AM AAMRQ, LCC popping; American Airlines issued Media Advisory-- the co, US Airways And Texas Attorney General to announce merger development update today (AAMRQ) 23.99 +0.40 : The parties will announce an important development related to the the merger of the two airlines. A news conference will be held to discuss the details today (starts at 3pm ET).
11:43AM US Airways jumps to new session high of 19.65 to set a new four month high (LCC) 19.47 +0.51 : Its multi-year high from May is at 19.70.
11:39AM Minor new high for S&P +12.8 and Nasdaq Comp +36, Dow +64 hovering just under its morning high (TECHX) :
11:19AM Currency Commentary: DXY Slips to 7-month Low as Government Shuts Down (SUMRX) :
11:06AM AK Steel announces price increase for carbon steel products (AKS) 3.83 +0.08 : Co said today that it has increased current spot market base prices for all carbon flat-rolled steel products. Effective immediately, the company will be quoting the following minimum base prices for new orders:
Minimum Base Prices for New Orders Hot Rolled: $680 per ton; Cold Rolled: $790 per ton; Hot Dipped Galvanized: $810 per ton
10:54AM Hill International receives a contract from Qatar Industrial Manufacturing to provide project management services in connection with QIMC's new headquarters building located in Doha, Qatar (HIL) 3.31 +0.01 :
10:42AM Russell 2000 and Nasdaq Comp edge above Sep peaks to establish new multi-year highs (TECHX) :
10:33AM Upside follow through for stock indices -- Dow +58, S&P +10.6, Nasdaq Comp +28 (TECHX) :
10:31AM General Dynamics awarded U.S. Navy SSC Atlantic Integrated Cyber Operations Pillar contract (GD) 88.18 +0.66 : Co is one of 13 companies awarded the Integrated Cyber Operations (ICO) Services Multiple Award Pillar contract by the Space and Naval Warfare Systems Center (SSC) Atlantic. The indefinite delivery, indefinite quantity contract has a potential value of $900 million over five years to all 13 awardees if all options are exercised.
10:24AM American Science & Engineering receives $4.5 mln order for Z Portal and Gemini X-ray systems to secure checkpoints at Middle Eastern university (ASEI) 60.36 +0.05 :
10:23AM Minor new session highs for stock indices -- Dow +38, S&P +8.2, Nasdaq Comp +22 (SPY) :
10:21AM Yahoo! tests last week's multi-year high at 33.85 -- session high 33.85 (YHOO) 33.81 +0.65 :
10:15AM Relative sector weakness (TECHX) : The stock indices stalled near opening highs in recent trade with relative sector weakness noted in: Finance XLF, Bank KBE, Crude Oil USO, Materials XLB, Coal KOL.
10:12AM Acuity Brands (+4%) pares gains after trading at new all time highs following upside Q4 results (AYI) 95.43 +3.41 :
10:11AM Acorn Energy's US Seismic Systems advances in tests with supermajor oil company (ACFN) 5.95 +0.05 : US Seismic Systems, an Acorn Energy company, announced that it continues to advance in the evaluation of its products by a supermajor oil company and that it has received orders for the next phase of the evaluation. These orders are related to the customer's continuing assessment of USSI's products as a result of USSI's participation in a five-company, competitive down-hole seismic sensor technology field trial hosted by the supermajor earlier this summer. The terms of the new orders for cabling, deployment systems and field service expenses are confidential.
10:03AM Stock indices see limited reaction to above consensus data -- Dow -14, S&P +3.2, Nasdaq Comp +11.5 (TECHX) : The S&P ran to first level resistance off the open (The Technical Take, 09:37) and slipped back (session high 1688) with little reaction to the data thus far.
10:02AM AbbVie to present investigational data from Phase II hepatitis C program at The Liver Meeting; Phase III top-line results expected beginning later in 2013 (ABBV) 45.27 +0.54 : Co announced that new data from its phase II hepatitis C clinical development program will be presented at The Liver Meeting, the Annual Meeting of the American Association for the Study of Liver Diseases (AASLD) in Washington, D.C., Nov 1-5, 2013. In total, eight abstracts will be presented, four of which include additional analyses from the phase IIb AVIATOR study. The data examine sustained virologic response concordance, patient adherence to the regimen, patient reported outcomes and the impact of ribavirin dose reduction. The Liver Meeting will precede AbbVie's reporting of initial results from the pivotal phase III clinical trials of the safety and efficacy of AbbVie's investigational triple direct-acting antiviral (DAA) regimen for the treatment of hepatitis C. Reporting of those results is expected to begin later this year.
10:01AM IHS and Maney Publishing announce new partnership; IHS has the ability to resell hundreds of Maney titles in the Materials Science and Engineering subject areas (IHS) 114.20 +0.02 :
9:57AM Cree (+9%) rips to highs not seen since before mid-Aug earnings induced gap down following upgrade to Buy at Canaccord Genuity (CREE) 65.38 +5.19 :
9:51AM J. C. Penney edges up toward the high of yesterday's multi-year low bar (JCP) 9.05 +0.25 : Last week noted here that JCP was sliding back near its multi-year low from Dec 2000 at 8.62. Yesterday it slipped as low as 8.59 to fractionally breach but then stabilized (closed at 8.80). This morning it has push as high as 9.07, modestly under the high of the low bar at 9.19.
9:39AM Arrhythmia Research halted, news pending (HRT) 2.70 0.00 :
9:39AM Early relative sector strength (TECHX) : Solar TAN +2.6%, Auto CARZ +1.9%, Natural Gas UNG +1%, Networking IGN +0.9%, Internet FDN +0.9%, Biotech IBB +0.9%, Trucking +0.9%.
9:39AM Oragenics and Intrexon (XON) to develop genetically modified probiotics; Intrexon invests $3.9 mln in Oragenics' common stock (OGEN) 3.10 +0.10 : Co and Intrexon (XON) announced the establishment of an Exclusive Channel Collaboration to develop and commercialize genetically modified probiotics for the treatment of diseases of the oral cavity, throat, sinus and esophagus. The team is expected to initially focus on therapies for Behcet's disease and aphthous stomatitis. Oragenics paid Intrexon a technology access fee of $6.0 mln at closing, payable in 1,348,000 shares of Oragenics' common stock at a value per share of $3.00 and a promissory note in the principal amount of $1,956,000. In addition, Oragenics will pay to Intrexon program costs, developmental milestone fees and commercial royalties. Intrexon will provide access to its platform technologies and capabilities including the UltraVector platform, DNA and RNA MOD engineering, cell system engineering, genome engineering, and protein engineering.
Concurrently with the ECC agreement, Intrexon also purchased 1.3 mln shares of Oragenics' common stock in a private placement at a price per share of $3.00 for an aggregate purchase price of $3.9 mln. The net proceeds will be used for development of key initiatives relating to Organics' probiotics program that is part of its new exclusive channel collaboration with Intrexon, and general corporate purposes.
9:37AM Quick run to first level resistance for S&P +5.6 at 1686/1688 -- Dow +14, Nasdaq Comp +15 (SPY) :
9:32AM LTC Properties increases monthly cash dividend to $0.17 per share for 4Q2013, ~ a 9.7% increase from the previous $0.155 per share (LTC) 38.15 +0.17 :
9:31AM Ring Energy provides third quarter 2013 operations update (REI) 14.50 -0.05 : During the third quarter, Ring drilled eighteen wells on its Permian Basin properties in Andrews County, Texas, making a total of twenty-three new wells drilled since securing a rig in early June, and re-stimulated five existing wells. Twenty of the twenty-three wells were completed and placed in production and the remaining three wells are in various stages of completion. The Company plans to continue drilling six new wells per month for the remainder of 2013.
Production for the quarter ended September 30, 2013 was approximately 39,000 BOE (Barrels of Oil Equivalent), as compared to production of approximately 7,400 BOE for the same quarter of 2012, a 427% increase, and a 105% increase over the 19,000 BOE produced in the second quarter of 2013. The average net daily production for the last five days of September was approximately 750 BOE per day. The stated production amount reflects only the oil and gas that was produced and shipped prior to the end of the quarter. Any oil and gas produced in the third quarter but still held on site after September 30, 2013, will be credited in the fourth quarter. The Company has maintained its capital budget for 2013 at approximately $32 million. The Company will drill a minimum of thirty-five new wells in 2013 and re-stimulate an additional nine existing wells. The Company will continue to concentrate most of its attention on its Texas properties through the end of 2013.
9:31AM Ford Motor US sales rise 5.8% YoY to 185,146 units (F) 17.17 +0.30 :
9:26AM On The Wires (WIRES) :
9:25AM Dell completes regulatory clearance for merger transaction (DELL) 13.75 : Co announced that it has received all necessary pre-merger regulatory clearances for the consummation of the merger transaction in which Michael Dell, Dell's Founder, Chairman and CEO, will acquire Dell in partnership with global technology investment firm Silver Lake Partners. The transaction is expected to close before the end of the third quarter of Dell's FY2014.
9:23AM Edgen Group to be acquired by Sumitomo for $12.00/share in cash (see 7:12) (EDG) 7.60 : Co announced the signing of a definitive merger agreement whereby Sumitomo will acquire all outstanding shares of EDG or $12.00/share. The acquisition, which is expected to close before the end of 2013, is subject to customary closing conditions and regulatory approvals.
"With the acquisition of Edgen Group, we gain a global distribution platform, including experienced staff, facilities, and an expanded specialized steel product offering that will allow us to continue our growth and support the development of global energy infrastructure. As a leader in the supply of steel products, we continue to build a robust value chain from manufacturing through distribution and related services, to support our customer's requirements."
9:22AM On The Wires (WIRES) :
9:22AM Visa, Mastercard (MA) and American Express (AXP) introduced a proposed framework for a new global standard to enhance the security of digital payments (V) 191.10 : Co introduced a proposed framework for a new global standard to enhance the security of digital payments and simplify the purchasing experience when shopping on a mobile phone, tablet, personal computer or other smart device. Aligned with these initiatives, the proposed standard would meet this consumer demand and allow the traditional account number to be replaced with a digital payment "token" for online and mobile transactions
9:21AM RCS Capital Corporation announces agreement to purchase the Hatteras Funds Group (RCAP) 16.72 : Co announced today that on October 1, 2013, a newly formed wholly-owned subsidiary of RCS Advisory Services, which is an operating subsidiary of RCAP, has entered into an agreement to acquire substantially all the assets related to the business and operations of, and acquire certain liabilities of, a group of related companies that manage and distribute the Hatteras Funds. Following the closing of the acquisition, the Hatteras Funds Group and the Hatteras Funds will continue to operate under current management and the "Hatteras" brand. Co said accretive acquisition adds fifth line of business.
9:20AM Smith & Wesson completes $100 mln stock repurchase, authorizes additional $15 mln (SWHC) 10.99 : Co announces that it has completed the repurchase of $100 mln of the outstanding common stock through a program authorized by its Board of Directors in June of 2013. The co purchased 9.0 mln shares of its common stock at an average price of $11.09, resulting in 55.8 mln shares outstanding. Based on the results of the repurchase program, the company anticipates fully diluted shares of ~60.4 mln for the quarter ending October 31, 2013.
The Co also announced that its Board has authorized the repurchase of an additional $15 mln of the company's common stock in open market or privately negotiated transactions.
9:15AM S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: +5.70. (WRAPX) : The major averages are poised to register modest gains at the start of today's session as the S&P 500 futures trade higher by 0.2%. As expected, the U.S. government suspended its nonessential functions at midnight. The shutdown will have an effect on this week's economic data, and today's August construction spending report will be delayed. However, the September ISM Index remains scheduled for a 10:00 ET release.
Although markets have not displayed much concern over the shutdown, they are likely to show some angst when the U.S. approaches its debt ceiling during the second half of October. Currently, Treasuries hold modest losses with the benchmark 10-yr yield up two basis points at 2.63%.
9:14AM FX Energy provides update on current operations in Poland; the Lisewo-2 well is drilling ahead at a depth of ~ 2,916 meters toward a target depth of 3,880 meters (FXEN) 3.43 : The Lisewo-2 well is drilling ahead at a depth of approximately 2,916 meters toward a target depth of 3,880 meters. The objective is a Rotliegend structure identified on 3D seismic and previously drilled by the Lisewo-1 discovery well. The well is expected to reach total depth before year end. The Lisewo-2 well is located in the Fences concession where the Polish Oil and Gas Company, PGNiG, is the operator and owns 51% of the working interest; FX Energy owns 49%.
9:12AM Navios Maritime announces delivery of 2 Panamax vessels (NM) 7.12 : Co announces that two Panamax vessels were delivered to Navios Holdings' owned fleet.
The Navios Taurus a 2005-built Panamax vessel of 76,596 dwt was delivered to Navios Holdings' owned fleet on September 17, 2013. The vessel is chartered-out for approximately six months at a rate of $9,263 net per day.
The Navios Northern Star a 2005-built Panamax vessel of 75,395 dwt was delivered to Navios Holdings' owned fleet on September 19, 2013. The vessel is chartered-out for approximately seven months at a rate of $11,400 net per day.
Fleet Update
Following the delivery of the Navios Taurus and the Navios Northern Star, Navios Holdings has 52 vessels in the water.
9:11AM Gastar Exploration ticking higher; announced closing of sale of East Texas Property (GST) 3.95 : Gastar expects to receive $39.2 million in proceeds in addition to the $4.7 million deposit previously paid by Cubic Energy by October 2, 2013.
9:05AM CIGNA announced its 2014 Medicare offerings; Cigna-HealthSpring Medicare Advantage expands into 41 new counties (CI) 76.86 : Cigna Prescription Drug Plans launch new plan option and Preferred Pharmacy Network that includes CVS, H-E-B, Kroger (KR), Safeway (SWY) and Walmart (WMT) pharmacies. Cigna Medicare Supplement Solutions (Medigap) will be available in 44 states.
9:05AM Teva Pharma launches of generic Zemplar in the US (TEVA) 37.78 : Co announces the launch of the generic equivalent to Zemplar tablets in the US as of September 30, 2013. Teva was first to file, making the product eligible for 180 days of marketing exclusivity.
Marketed by AbbVie (ABBY), Zemplar had annual sales of ~$115 mln in the US, according to IMS data as of June 30, 2013.
9:04AM Carpenter Tech signs multi-level agreement with UTX unit; will build new facility for superalloy powders (CRS) 58.11 : Co has reached a multi-level agreement with United Technologies Corporation (UTC), through its Pratt & Whitney Division, which includes licensing technology associated with the production of superalloy powders and a long-term supply agreement. Carpenter also plans to build a superalloy powder facility which is expected to take approximately 18 months to construct at an estimated cost of $20 million. Once the facility is qualified by Pratt & Whitney, Carpenter will supply Pratt & Whitney with superalloy powder for up to 20 years. Additionally, UTC's aerospace business units have agreed to purchase alloy steel bar/billet, nickel superalloy billet, stainless bar/billet, and strip laminate products from Carpenter for a period of ten years. Carpenter currently supplies UTC's aerospace businesses with a portion of their overall demand for nickel, stainless, and strip laminate products.
9:04AM ProLogis raises 450 million euro ($610 mln) for Prologis European Properties Fund II (PLD) 37.62 : Co announced that Prologis European Properties Fund II (PEPF II) has received new capital commitments of 450 million ($610 million) after opening to new investors for the first time. Investor demand exceeded the offering amount and fundraising closed ahead of its mandated period.
9:04AM Zhone Technologies enters into an amendment to extend maturity date of existing credit facility with Wells Fargo capital finance (ZHNE) 3.15 : Co announced that on September 30, 2013 the company entered into an amendment of its existing senior secured revolving credit facility with Wells Fargo Capital Finance, part of Wells Fargo to extend the maturity date of the facility from March 13, 2014 to March 31, 2016. In addition, the amendment amends the letters of credit sublimits in the facility and reduces the interest rate margin from 3.5 percent to 3.0 percent (with a provision for further decreases in the event that Zhone attains specified performance metrics). Under the facility, Zhone may borrow up to $25.0 mln, with the amount Zhone is able to borrow based on eligible accounts receivable.
9:03AM Apollo Global Management: Hudson Realty Capital acquires $200 mln loan and REO portfolio in Joint Venture (APO) 28.26 : A joint venture comprised of Hudson Realty Capital and an investment fund managed by Apollo Global Management (APO) announce the acquisition of an ~$200 mln portfolio of non-performing, commercial real estate loans and REO properties from Blairsville, Georgia-based United Community Banks. The portfolio purchase is the third under the Hudson Realty/Apollo partnership.
9:01AM Xinyuan Real Estate splits Chairman and CEO position; Yong Zhang to continue as Chairman of the Board and Xinqi Wang appointed as Chief Executive Officer (XIN) 6.01 :
8:57AM S&P futures vs fair value: +2.90. Nasdaq futures vs fair value: +7.70. (WRAPX) : The S&P 500 futures trade higher by 0.2%.
It was a sea of green across Asia as all of the major averages aside from Australia's ASX (-0.2%) advanced. Japan's Nikkei (+0.2%) eked out a gain after Prime Minister Abe moved towards hiking the sales tax to 8% from 5%, beginning in April, and also announcing the consideration of monetary stimulus that may include cash handouts. Meanwhile, Australia's ASX was the laggard after the Reserve Bank of Australia held its key rate steady at a record low 2.50% while also leaving open the possibility of further rate cuts. Markets in China and Hong Kong were closed for Golden Week, but that did not stop the release of the disappointing Chinese Manufacturing PMI (51.1 actual v. 51.6 expected, 51.0 previous). Data from the rest of the region showed Japan's Tankan Manufacturing (12 actual versus 7 expected, 4 previous) and Non-Manufacturing Indices in-line to better than expected while average cash earnings missed (-0.6% year-over-year actual versus -0.2% expected). Elsewhere, Australia's retail sales beat (0.4% month-over-month actual versus 0.3% expected) and Indonesia's trade deficit swung to a surplus ($0.13 billion actual versus -$0.89 billion expected, -$2.31 billion previous).
8:56AM On The Wires (WIRES) :
8:54AM On The Wires (WIRES) :
8:50AM Fate Therapeutics (FATE) prices upsized ~ 6.7 mln share IPO at $6.00, at the low end of the revised $6-8 expected range (IPOXX) : Co originally planned to offer 4 mln shares at $14-16.
8:50AM European Markets Update: FTSE -0.3%, DAX +0.6%, CAC +0.7% (SUMRX) : Major European indices trade in mixed fashion with Great Britain's FTSE underperforming (-0.3%) while other indices rebound from yesterday's weakness. In Italy, Prime Minister Enrico Letta is scheduled to address the parliament on Wednesday at 16:00 ET local time. It is currently unclear whether Mr. Letta will seek a confidence vote. Separate reports indicate up to 20 PDL Senators have looked into forming a breakaway party after Silvio Berlusconi called for his party's resignation from government. Investors received a fair share of data. Eurozone Manufacturing PMI slipped to 56.7 from 57.1 (57.3 expected) and the unemployment rate held steady at 12.0% (12.1% forecast). Germany reported a 25,000 increase in the number of unemployed (-5,000 expected, 9,000 prior) and the unemployment rate ticked up to 6.9% from 6.8% (6.8% consensus). Separately, Manufacturing PMI slipped to 51.1 from 51.3 (51.3 forecast). Great Britain's Manufacturing PMI fell to 56.7 from 57.1 (57.3 forecast). French Manufacturing PMI improved to 49.8 from 49.5 (49.5 expected). Italy's Manufacturing PMI slipped to 50.8 from 51.3 (51.0 consensus) and the monthly unemployment rate rose to 12.2% from 12.1% (12.0% expected).
8:45AM Laboratory Corp: conversion right triggered for zero coupon convertible subordinated notes due 2021 (LH) 99.14 : Co announced that its Zero Coupon Convertible Subordinated Notes due 2021may be converted as set forth below. The Zero Coupon Notes are convertible into cash and Common Stock of LabCorp, if any, subject to the terms of the Zero Coupon Notes and the Indenture, dated as of October 24, 2006 between LabCorp and The Bank of New York Mellon, as trustee (Trustee) and the conversion agent.
8:38AM Cleveland Biolabs secures $10 mln loan agreement with Hercules Technology Growth Capital (HTGC) (CBLI) 1.57 : Co announces it has closed on a loan and security agreement with Hercules Technology Growth Capital (HTGC), providing for a senior secured term loan of up to $10 mln.
The loan is funded in two tranches with the first $6 mln tranche funded at closing, and a second $4 mln tranche to be made available upon the award, if any, of a development contract by BARDA or other funding that would fund studies reasonably expected to lead to a BLA filing for Entolimod as a radiation countermeasure.
The loan matures 39 months after closing, and provides for an initial interest-only period of 12 months. As partial compensation, CBLI granted Hercules a warrant to purchase 156,250 shares of common stock at an exercise price of $1.60 per share.
8:38AM Star Bulk Carriers announces agreements to construct three newcastlemax and two ultramax fuel efficient newbuildings and new employment for one of its vessels (SBLK) 10.13 : Co announced that on September 23, 2013, the Company entered into agreements with Shanghai Waigaoqiao Shipbuilding for the construction of two 208,000 dwt Newcastlemax drybulk vessels each with fuel efficient specifications and expected deliveries during the first half 2016.
On September 27, 2013, the Company entered into agreements with Nantong COSCO KHI Ship Engineering. for the construction of two 61,000 dwt Ultramax drybulk vessels and one 209,000 dwt Newcastlemax drybulk vessel, each with fuel efficient specifications and expected deliveries for the Ultramaxes during the fourth quarter of 2015 and for the Newcastlemax during the first quarter of 2016. The aggregate purchase price of the five newbuilding vessels is ~ $214.9 mln.
The Company also announced that it has chartered one of its Capesize vessels, the Star Borealis, for approximately five to seven months at a gross daily time charter rate of USD $27,000.
8:37AM Canadian Natl Rail says its rail infrastructure construction work for GO Transit was rigorously reviewed, rejects unfounded allegations of irregularities (CNI) 101.37 : Co said today the commuter rail infrastructure projects it undertook for GO Transit in the Greater Toronto Area (GTA) were rigorously reviewed and that it rejects unfounded allegations that it defrauded the agency.
8:35AM Crude oil and copper futures sold off as well in recent action; Copper just hit a new session lows, while crude oil fell below $102/barrel (COMDX) : Nov crude oil is now -0.3% at $101.99/barrel, Dec copper -1.8% at $3.26/lb.
8:35AM LightPath adding molding capacity to accommodate increasing market demand; investing in China facilities to increase capacity over 45%; sees a greater than 15% increase in annualized revenues. (LPTH) 1.21 : Co announced that in response to accelerating market demand for its molded aspheric lenses it is building 12 new molding stations for its China operations. This investment will result in an increase in capacity and production capability of over 45%.
Demand for LightPath's aspheric lenses has increased in both its North American and Asian sales regions. The Company manufactures products to meet this demand in both its US and China operations. End product markets driving the increased demand for aspheric lenses include laser tools, telecommunications, digital projectors, industrial equipment, medical instruments and increasing use of green laser diodes. LightPath anticipates this increase in demand will phase in over the next three quarters. Given the phase in of this new business and the fact that it will be high-volume low-cost products driving this increase, the Company expects to see a greater than 15% increase in annualized revenues.
8:34AM Cerus submits the first of three modules in the premarket approval application process for INTERCEPT platelets (CERS) 6.72 : Co announced that it has submitted the first of three modules for its Premarket Approval (PMA) application to the U.S. Food and Drug Administration (FDA), for review of the INTERCEPT Blood System for platelets. The PMA application shell for the platelet system, accepted by the FDA in April, provides for three modular submissions. This enables FDA to review each module separately, and allows the applicant to receive timely feedback to resolve possible deficiencies earlier in the review process when compared to a traditional PMA application.
8:34AM Gold and silver drop sharply, hitting new session lows; Gold drops below $1300/oz after dropping about $20/oz (COMDX) : Dec gold is now -1.9% at $1302.20/oz, Dec silver is -3.1% at $21.03/oz.
8:33AM TransAtlantic Petroleum provides operational update; ended Q3 with production of more than 4,500 Boe/d and expects 2013 year-end exit rate to be at least 5,000 Boe/d (TAT) 0.84 : TransAtlantic ended the third quarter of 2013 with production of more than 4,500 Boe/d and expects its 2013 year-end exit rate to be at least 5,000 Boe/d. The Company currently has three active rigs in southeastern Turkey and two active rigs in the Thrace Basin in northwestern Turkey. In the fourth quarter of 2013, TransAtlantic expects to add one drilling rig in Bulgaria and release one drilling rig in the Thrace Basin in Turkey to maintain a five rig operation going forward. The Company spudded 18 wells in the third quarter of 2013 and 27 wells year-to-date. TransAtlantic plans to drill a total of 38 wells in 2013.
8:33AM Rockwood Holdings increases prices for Butyllithium and other Organometallic products (ROC) 66.90 : Co announced today that Rockwood Lithium, a division of Rockwood Holdings, will implement price increases for butyllithium and other organometallics by approximately 4 percent globally on October 15th, 2013, as contracts permit.
8:32AM Campbell Soup and CVC Capital Partners sign definitive agreement for sale of Campbell's European Simple Meals Business (CPB) 40.70 : Co announces it has signed a definitive agreement for the sale of its European simple meals business to CVC Capital Partners, a global private equity firm.
8:32AM NewLead Announces 1-for-15 Reverse Split of Common Shares (NEWL) 0.13 : Co announces that a 1-for-15 reverse stock split of its common shares has been approved by the co's Board of Directors effective on Oct 17.
8:31AM Revolution Lighting provides guidance at Craig Hallum Conf. (RVLT) 2.55 : Key highlights of CFO Schafer's presentation at Craig Hallum's Conf. and Revolution Lighting's financial performance included:
8:31AM Ryman Hospitality's 3.75% senior notes remain convertible (RHP) 34.51 : Co announced that its 3.75% Convertible Senior Notes due October 1, 2014 remain convertible at the option of the holders through December 31, 2013, the last business day of the current fiscal quarter. The company issued the notes in September 2009. The notes remain convertible because the last reported sale price of the company's common stock for at least 20 trading days during the 30 consecutive trading-day period ending on September 30, 2013, was greater than 120 percent of the conversion price in effect on such day.
8:30AM Worthington Announces Steel Processing Joint Venture in China (WOR) 34.44 : Co announces it has reached an agreement in principle to participate in a joint venture near Shanghai, China to produce cold rolled strip steel primarily for the automotive industry. Worthington will join Nisshin Steel and Marubeni-Itochu Stee in the venture which will be called Zhejiang Nisshin Worthington Precision Specialty Steel. Worthington will own a 10% stake in the joint venture with the option to increase ownership and Japanese partners Nisshin and MISI will own 55% and 35%, respectively. The formal agreement is expected to be signed by the end of the month. The venture plans to build a facility with an annual capacity of approximately 130,000 tons. Construction is expected to begin immediately following government approval with production expected to begin in 4Q15.
8:30AM S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +8.50. (WRAPX) : The S&P 500 futures trade higher by 0.3% as global equity markets rebound from yesterday's weakness. In Washington, nonessential functions of the federal government were suspended at midnight, but the markets have not displayed much concern over these developments. Due to the shutdown, today's construction spending report will be delayed while the September ISM Index will be reported at 10:00 ET as originally scheduled.
Overseas, European indices trade mostly higher amid indications the collapse of the Italian government may be prevented after 20 PDL members began looking into forming a breakaway party. In reaction, Italy's benchmark 10-yr yield has retreated four basis points to 4.53%.
8:27AM Liberty Prop achieves record industrial leasing in Q3 (LRY) 35.60 : Co announces that the co leased 7.5 mln square feet in its industrial portfolio in the third quarter of 2013, the highest quarterly leasing total in its 41 year history. Contributing to leasing volume were the following:
Existing development pipeline
8:27AM On The Wires (WIRES) :
8:26AM Gapping down (SCANX) : In reaction to disappointing earnings/guidance: DMND -6.6%, WD -5.7%.
Select metals/mining stocks trading lower: AUY -1.9%,
GOLD -1.7%,
SLV -1.4%,
AU -1.1%,
IAG -1.1%,
GLD -1%,
GDX -0.1%.
Other news: HDY -9.5% ( notified of DOJ investigation),
PFMT -3.5% (discloses that it was unable to review and audit certain claims; may have a material adverse effect on 2014 healthcare revenues and operating results),
RH -2.1% (10% holder CP Home Holdings filed form 144 related to proposed sale of 3,978,731 shares ),
SYMC -2% (announces CFO departure; Andrew Del Matto, SVP and Chief Accounting Officer, to Serve as Acting CFO),
ICEL -1.7% (added to the U.S. small-cap Russell 2000),
BUD -1.7% (still checking),
UL -1% (following yesterday's guidance/commentary),
QIWI -0.8% (prices 8,197,866 shares of its ADSs at $30.50 by selling shareholders),
ANH -0.6% (Anworth Mortgage declares a $0.12/share third quarter 2013 common dividend, prior $0.15/share).
Analyst comments: AIXG -3.3% (downgraded to Sell from Hold at Canaccord Genuity),
OLED -9.5% (downgraded to Sell from Hold at Canaccord Genuity),
FINL -2.7% (downgraded to Sell from Neutral at Goldman),
BWLD -1.5% (downgraded to Outperform from Strong Buy at Raymond James),
RRGB -1% (downgraded to Outperform from Strong Buy at Raymond James),
A -0.4% (Agilent downgraded to Hold from Buy at Stifel)
8:21AM BlackBerry announced that the National Police of Colombia is upgrading their BlackBerry smartphones (BBRY) 7.95 : Co announced that the National Police of Colombia is upgrading their BlackBerry smartphones and migrating to BlackBerry's newest Enterprise Mobility Managementsolution, BlackBerry Enterprise Service 10. The National Police of Colombia selected the BlackBerry solution for its embedded controls that support regulatory compliance in government environments with the highest security requirements. To date, more than 25,000 BlackBerry Enterprise Service 10 commercial and test servers have been installed globally, including within the world's top organizations.
8:18AM Gapping up (SCANX) : In reaction to strong earnings/guidance: MRK +1.7% (announces global initiative to sharpen commercial and R&D Focus; Co reaffirms 2013 full-year non-GAAP EPS target of $3.45-3.55),
WAG +0.6%.
M&A news: EDG +56.6% (discloses Agreement and Plan of Merger, each issued and outstanding share of Class A common stock will be converted into the right to receive $12.00 in cash).
Select financial related names showing strength: CS +2.5%,
ING +2.2%,
BCS +2.1%,
IBN +2%,
PUK +1.8%,
HBC +1.1%.
Select solar stocks trading higher: SFUN +3.2%, SOL +2.6%, STP +2.4%,
SPWR +2.4%,
FSLR +2.2%.
Other news: LXRX +24.5% (achieves 'positive' Results in Type 2 Diabetes Patients with Renal Impairment; LX4211 provided clinically meaningful and statistically significant reductions), ALVR +13.6% (thinly traded, continued strength),
MYGN +8.5% (following late sell-off that was being attributed to analyst comments on pricing for BRCA test; disclosed and confirmed that the Centers for Medicare & Medicaid Services released finalized pricing for the new molecular pathology codes for 2014, upgraded to Buy at Ladenburg Thalmann),
HCI +3.8% (to replace MFB in the S&P SmallCap 600),
PSTI +3.6% (PLX Cells demonstrate efficacy in preclinical study for graft versus host disease),
ALU +3.4% (Alcatel-Lucent outlines the Shift Plan strategy to accelerate telecommunications to the cloud),
RAD +2.3% (following WAG results),
SI +2.1% and TEF +1.4% (still checking),
JCP +1% ( discloses its proceeds before expenses from offering of 84 mln shares of common stock was $786.24 mln ),
AMZN +0.6% (Amazon Creating 70,000 Full-Time Seasonal Jobs in the U.S. to Fulfill Holiday Orders with Thousands Expected to Become Permanent Employees),
FB +0.1% (plans to expand Graph Search, according to reports),
.
Analyst comments: TI +5.8% (reinstated with a Buy at Goldman),
NOK +2.3% (added to Most Preferred Tech List at BofA/Merrill),
NFLX +1.9% (early strength attributed to positive analyst comments and big tgt raise),
HRB +1.3% (upgraded to Overweight from Equal Weight at Morgan Stanley),
UA +1.2% ( upgraded to Neutral from Underweight at JP Morgan; tgt raised to $77),
AFL +1% (upgraded to Outperform from Mkt Perform at FBR Capital)
8:09AM Pyramid Oil announces retirement of President and CEO John Alexander; Chairman Mike Herman named interim president & CEO (PDO) 4.14 : Co announced that John Alexander has retired as president and CEO, a position he has held since 2004. Mike Herman, chairman and the Co's largest shareholder, has assumed the role as interim president and CEO. Alexander, who joined Pyramid as vice president and a director in 1986, will also step down from the board. However, he will continue to serve the Co as a consultant during the coming year.
8:08AM Walker & Dunlop to enter into a senior secured term loan (WD) 15.91 : Co announced today plans to enter into an institutional senior secured term loan with an aggregate principal amount between $150 and $200 mln to fund repayment of its existing senior credit facility and for general corporate purposes, including strategic growth opportunities. The facility is expected to have terms that are customary for this type of financing, and is expected to close in October 2013, subject to market and other customary conditions. The Company expects to receive ratings from Standard & Poor's and Moody's Investors Service related to this transaction.
8:07AM SWS Group appoints J. Michael Edge as interim Chief Financial Officer (SWS) 5.58 : Co announced that Senior Vice President of Finance and Investor Relations, J. Michael Edge, has been appointed as the Company's interim Chief Financial Officer and Treasurer. Mr. Edge joined SWS Group in 2000 and brings substantial finance and accounting experience to his new role. He succeeds Stacy M. Hodges, whose previously announced resignation became effective on September 30, 2013. SWS Group has initiated a search process to fill the Chief Financial Officer position on a permanent basis.
8:07AM Lorillard acquires British-based SKYCIG, expanding its electronic cigarette Business (LO) 44.78 : Co announced that it has acquired all of the assets and operations of SKYCIG, a electronic cigarette (e-cigarette) business for ~ EUR 30 mln in cash paid at closing and additional contingent consideration of up to an additional 30 million to be paid in 2016 based on the achievement of certain financial performance benchmarks.
8:06AM Agree Realty announces $35 mln unsecured term loan (ADC) 30.18 : Co announced the closing of a new $35 mln unsecured term loan. The new seven year unsecured financing matures September 29, 2020. The interest rate will be LIBOR plus 165 to 225 basis points. The Company also entered into an interest rate swap to fix LIBOR at 2.20% until maturity. Based on the Company's current leverage ratio, it anticipates the margin will be 165 basis points over LIBOR, for an initial all-in interest rate of 3.85% at closing including the impact of the interest rate swap. The term loan also includes a $35 mln accordion feature to increase capacity to $70 mln, subject to customary terms and conditions. The loan is prepayable without penalty after three years. The proceeds from this financing will be applied to amounts outstanding under the Company's unsecured revolving credit facility.
8:06AM Heat Biologics files IND for bladder cancer product candidate (HTBX) 12.44 : Co has filed an investigational new drug (IND) application with the U.S. Food and Drug Administration (FDA) for its second product candidate, HS-410, which will be evaluated in bladder cancer.
The co also named Melissa Price, Ph.D., as Vice President, Clinical and Regulatory Affairs. Dr. Price will be responsible for the implementation of Heat's HS-410 bladder cancer program, as well as all of the Company's clinical studies. Dr. Price will also direct the co's regulatory strategy.
8:05AM Colfax announces acquisition of CKD Kompresory; transaction values CKD Kompresory at ~$57 mln (CFX) 56.48 : Co announced that it has entered into a binding agreement to acquire CKD Kompresory a.s., based in Prague, Czech Republic, from CKD Group. The transaction values CKD Kompresory at ~$57 million, including the assumption of debt, and is expected to close in the fourth quarter following the fulfillment of certain conditions. Upon closing, the business will join the Howden operations and be renamed Howden CKD Compressors s.r.o.
8:04AM TearLab announces appointment of Seph Jensen as the co's President and Chief Operating Officer (TEAR) 11.06 : Co announced the appointment of Seph Jensen as the Company's President and Chief Operating Officer. He joins TearLab from his current position as Head of Surgical Marketing at Alcon Laboratories.
8:04AM Kindred Healthcare executes favorable agreements with Ventas (VTR); agreements expected to be slightly accretive to 2014 earnings and beyond (KND) 13.43 : Kindred Healthcare announces it has entered into agreements to renew early its leases with Ventas (VTR) for 22 transitional care hospitals and 26 nursing and rehabilitation centers. The current lease term for the Renewal Facilities was scheduled to expire in April 2015.
Kindred will renew the existing leases for three TC hospitals and 15 nursing and rehabilitation centers for an additional five year term effective May 1, 2015. The annual rents for these facilities will increase by $4.0 mln on October 1, 2014, and are subject to various rent escalators contained within the existing master leases. In addition, Kindred will renew the leases for 19 TC hospitals and 11 nursing and rehabilitation centers for a term of 10 years and seven months effective October 1, 2014. The annual rents for these facilities will increase by $11.0 mln on October 1, 2014, and are subject to annual increases based upon the change in the consumer price index (subject to an annual 4% cap).
The agreements between Kindred and Ventas also provide Ventas with more flexibility to accelerate the transfer of the 60 nursing centers to new operators. Kindred expects to exit these facilities on or before September 30, 2014. In connection with the transaction, Kindred will pay Ventas $20 mln.
Management believes that entering into the new lease agreements, along with the non-renewal of the 60 nursing centers, will be slightly accretive to the Company's consolidated earnings per diluted share in 2014. The Company will record the $20 mln payment as an expense in the third quarter of 2013 and likely will record an additional impairment charge related to leasehold improvements in connection with the early termination of the 60 nursing centers.
8:03AM Ampio Pharma subsidiary Luoxis Diagnostics announces positive summary data from study of traumatic brain injury patients and issuance of co's third US patent for its oxidation-reduction potential diagnostic platform (AMPE) 7.49 : Co announced results from a recently completed clinical study of patients with isolated traumatic brain injury (iTBI). This study demonstrated statistically significant correlations between oxidation-reduction potential (ORP) and the severity of injury among iTBI patients. ORP is measured using the co's proprietary RedoxSYS diagnostic system, a point-of-care diagnostic system enabling rapid analysis of multiple markers of oxidative stress.
Increases in plasma static oxidation-reduction potential (spot measurement, sORP) levels were consistently shown to closely correlate with increases in iTBI severity as measured by the Abbreviated Injury Score (p=0.02). This prospective observational cohort study of 645 iTBI patients was conducted at two level-one trauma centers in the US over five years, and the analysis was completed in September of 2013.
8:03AM U.S. Physical Therapy sells remaining piece of discontinued Physician Services Business; will result in an estimated after-tax loss of ~ $4.4 mln (USPH) 31.08 : Co announces it has sold the remaining piece of its former Physician Services business. The sale and resulting write-down will result in an estimated after-tax loss of ~$4.4 mln.
Revenue from Physician Services has previously been reported in Other Revenues on the Company's Consolidated Statement of Operations. Total revenue from Physician Services was $2,510,000 in 2012 or 1.0% of total U.S. Physical Therapy revenue and was $698,114 in the first six months of 2013 or 0.5% of total revenue. The operation was unprofitable in both periods. The Physician Services business will be treated as a discontinued operation for financial reporting purposes.
8:03AM Teva Pharma and Active Biotech (ACTI) report newly published Phase III exploratory analysis suggests investigational oral laquinimod for Multiple Sclerosis may reduce brain damage caused by neurodegeneration (TEVA) 37.78 : The cos announced today the publication of a pre-planned analysis of the Phase III ALLEGRO study demonstrating that once-daily oral laquinimod provides a beneficial impact on brain tissue damage, one of the most destructive aspects of multiple sclerosis. The results showed that when compared with placebo, patients treated with laquinimod experienced decreased rates in brain tissue damage shown by various MRI markers. Specifically, patients receiving laquinimod showed decreased rates of white matter (WM), grey matter (GM) and thalamic atrophy; developed fewer permanent black holes (PBH); and accumulated less damage in normal appearing brain tissue (NABT), WM and GM, when compared to patients receiving placebo.
8:02AM CommonWealth REIT provides update on business plan; all 94 properties listed for sale in early 2013 are now sold or under contract for sale (CWH) 21.92 : Co announced an update regarding its business plan to reposition its portfolio towards high quality office buildings located in central business districts, or CBDs, and away from suburban office and industrial properties.
The CWH Board of Trustees recently approved a plan to sell an additional 110 non-core properties with ~ 8.4 million square feet. As of and for the three months ended June 30, 2013, these 110 properties had a net book value of ~$771 million, were ~70.7% leased and produced annualized property level net operating income of ~$45.8 million before general & administrative and depreciation & amortization expenses.
CWH is currently in the process of engaging listing brokers for the sale of these 110 properties and expects that applicable accounting rules will require CWH to record a non-cash impairment charge as of September 30, 2013 relating to the possible sale of these properties. The amount of the impairment charge has not yet been determined. CWH currently expects the sale of the 110 non-core properties to be substantially completed by June 30, 2014, but some of these properties might be sold after that date.
8:02AM Northern Oil & Gas announces increased borrowing base under its revolving credit facility to $450 mln from $400 mln (NOG) 14.43 : As part of the amendment, the termination date of the credit agreement was extended to September 30, 2018 and the interest rates under the credit agreement were reduced by one quarter of one percent, or 25 basis points. The next redetermination of the borrowing base is scheduled for April 1, 2014.
8:01AM Magal Security recently received two orders from the Asia and Africa region, amounting to $4.5 million (MAGS) 3.47 : The first order is for securing the perimeter of a sensitive government related site. The second order is for providing added security and intelligence for a border.
8:01AM American Electric Technologies expands primary manufacturing facility to meet increased demand for turnkey power delivery solutions (AETI) 7.09 : Co announces the expansion of its primary power delivery manufacturing plant in Beaumont, Texas. The expansion of the M&I Beaumont facility is designed to meet growing customer demand for the company's offerings and provide additional capacity to support the next phase of growth.
The expansion will increase manufacturing capacity of the M&I Beaumont plant by ~75% and add an additional 11,000 square feet of office space. The facility manufactures power delivery products for the oil and gas, power generation, and marine and industrial markets.
7:59AM S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +8.70. (WRAPX) : U.S. equity futures hold modest pre-market gains with the S&P 500 futures up 0.3%.
Reviewing overnight developments:
7:57AM Asian Markets Close: Nikkei +0.2%, Hang Seng CLOSED, Shanghai CLOSED (SUMRX) : It was a sea of green across Asia as all of the major averages aside from Australia's ASX (-0.2%) advanced. Japan's Nikkei (+0.2%) eked out a gain after Prime Minister Abe moved towards hiking the sales tax to 8% (currently 5%), beginning in April, and also announcing the consideration of monetary stimulus that may include cash handouts. Meanwhile, Australia's ASX was the laggard after the Reserve Bank of Australia held its key rate steady at a record low 2.50% while also leaving open the possibility of further rate cuts. Markets in China and Hong Kong were closed for Golden Week, but that did not stop the release of the disappointing Chinese Manufacturing PMI (51.1 actual v. 51.6 expected, 51.0 previous). Data from the rest of the region showed Japan's Tankan Manufacturing (12 actual v. 7 expected, 4 previous) and Non-Manufacturing Indices in-line to better than expected while average cash earnings missed (-0.6% YoY actual v. -0.2% YoY expected). Elsewhere, Australia's retail sales beat (0.4% MoM actual v. 0.3% MoM expected) and Indonesia's trade deficit swung to a surplus ($0.13 bln actual v. -$0.89 bln expected, -$2.31 bln previous). Looking at the currencies...USDCNY was little changed at 6.1217; USDINR slipped to 62.55; USDJPY is weaker at 97.78; AUDUSD is stronger near .9425. In Japan, the Nikkei closed +0.2% as trade ticked higher for the first time in three days. Heavyweight Softbank posted a 2.5% advance while Honda Motor added 0.9%.
In Hong Kong, the Hang Seng was closed...In China, the Shanghai Composite was closed.
In India, the Sensex finished +0.7% as trade bounced off the 50-, 100-, and 200-day moving averages. Financials were strong as ICICI Bank and State Bank of India jumped 2.9% and 1.8%, respectively.
In Australia, the ASX settled -0.2% as trade slid for a second session. Miners lagged as BHP Billiton lost 0.7% and Rio Tinto eased 1.1%. Click here to see a daily ASX chart.
In Taiwan, the Taiex closed +0.2%...In South Korea, the Kospi finished +0.1%.
In other regional markets...Vietnam -0.1%...Malaysia UNCH...Philippines +0.1%...Singapore +0.4%...Indonesia +0.7%...Thailand +1.8%
7:51AM On The Wires (WIRES) :
7:35AM Walgreens reports EPS in-line, revs in-line with preannouncement (WAG) 53.80 : Reports Q4 (Aug) earnings of $0.73 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.73; revenues rose 5.1% year/year to $17.94 bln (in-line with Sept 5 preannouncement) vs the $18 bln consensus.
Front-end comparable store sales (those open at least a year) increased 1.6% in the fourth quarter, customer traffic in comparable stores decreased 1.9% and basket size increased 3.6%, while total sales in comparable stores increased 4.6%. Prescription sales, which accounted for 63.9% of sales in the quarter, increased 6.1%, while prescription sales in comparable stores increased 6.4%. The company filled 203 million prescriptions in the quarter, an increase of 8.2% over last year's fourth quarter. Prescriptions filled in comparable stores increased 7.1% in the quarter. In fiscal 2013 Walgreens filled a record 821 million prescriptions, representing a retail prescription market share of 19.1%, an increase of 0.4%age point over the previous year.
Joint synergy program with Alliance Boots delivers combined first-year net synergies of $154 million, exceeding the previously stated range of $125-$150 million.
7:33AM Mercer Intl amends Stendal credit facilities to provide Stendal Mill with greater flexibility (MERC) 7.09 : Co announced that Stendal has successfully amended its senior project finance credit facility (~ EUR413 mln outstanding) and its EUR17.0 mln amortizing term facility in respect of Project Blue Mill (~ EUR15 mln outstanding). In connection with the amendment agreement, the co made a capital investment of $20.0 mln in Stendal.
7:32AM Republic Airways to sell Frontier Airlines to Indigo Partners for ~ $145 mln (RJET) 11.90 : Under the terms of the stock purchase agreement, which has been approved by Republic's Board of Directors, the buyer, an affiliate of Indigo Partners, will acquire all the outstanding shares of Frontier Airlines Holdings, Inc. in a transaction valued at ~$145 mln, of which $36 mlnis to be paid in cash for the equity of Frontier Holdings and the balance is indebtedness that will be retained by Frontier.
In addition, Indigo plans to invest additional funds directly in Frontier after the closing. As part of the transaction, under a separate agreement, Republic will assign to Frontier all of Republic's rights under agreements relating to the Republic's Airbus A320neo order in exchange for reimbursement of pre-delivery deposits, which total $32 mln. Assuming satisfaction of the conditions of the agreement, Republic expects the transaction to close in December 2013.
7:31AM Merck announces global initiative to sharpen commercial and R&D Focus; Co reaffirms 2013 full-year non-GAAP EPS target of $3.45-3.55 (MRK) 47.61 : Co announces a global initiative to sharpen its commercial and R&D focus. The multi-year initiative will enable Merck to better target its resources behind those opportunities that have the potential to deliver the greatest return on investment, including bolstering its pipeline and implementing a more agile operating model, with a significantly reduced, more flexible cost structure.
Restructuring highlights:
7:27AM Dollar Tests 80.00: 10-yr: -11/32..2.648%..USD/JPY: 97.75..EUR/USD: 1.3540 (SUMRX) : The Dollar Index is under pressure this morning as the government shutdown weighs. Overnight selling dropped the Index below the 80.00 level for the first time since February, but an early morning bid has been able to retake the level with current action checking up near 80.05.
7:23AM On The Wires (WIRES) :
7:23AM S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +11.00. :
7:22AM European Markets : FTSE...6447.63...+14.90...-0.20%. DAX...8644.27...+49.90...+0.60%.
7:22AM Asian Markets : Nikkei...14484.72...+28.90...+0.20%. Hang Seng...Holiday.........
7:13AM J. C. Penney: Perry Corp. disclosed 3.28% active stake in 13D filing out last night; down from 8.62% previously reported on 8/30 (JCP) 8.81 :
7:13AM Plains All Amer increases quarterly distribution by 2.1% to $0.6000 per unit from $0.5875 per unit (PAA) 52.66 :
7:03AM Assurant acquires Field Asset Services for $55 mln; expects the transaction to be modestly accretive to earnings in 2014 (AIZ) 54.10 : Co announces it has acquired Field Asset Services, significantly increasing its presence in the property preservation, restoration and inspection services business. Field Asset Services works with more than 25 mortgage servicing, asset management and investor clients and provides comprehensive property services through a nationwide network of contractor resources.
Assurant Specialty Property has acquired Field Asset Services from FirstService Corporation in a cash transaction for $55 mln. The transaction was closed Monday. Assurant expects the transaction to be modestly accretive to earnings in 2014.
7:02AM IBM acquires The Now Factory - terms not disclosed (IBM) 185.18 : Co announced a definitive agreement to acquire The Now Factory, a privately held provider of analytics software that helps communications service providers deliver better customer experiences and drive new revenue opportunities. The company is headquartered in Dublin, Ireland. Financial terms were not disclosed.
7:02AM Flotek Industries announces operational update related to Colorado severe flooding; believes it will experience a transient delay in rev of ~ $2.5 mln in Q3 (FTK) 23.00 : Co reproted September's record rainfall in Colorado had a significant impact on oilfield activity in the Denver-Julesburg Basin as severe flooding along the Front Range, especially in the Big Thompson Canyon and South Platte River, resulted in substantial production shut-ins and a significant decline in regional oilfield activity for the second-half of September. As noted by leading operators and service companies in the D-J Basin, drilling and completion activity was halted in the region around September 15 and was slow to resume through the end of September. While activity has begun to resume, infrastructure damage and personnel displacement will continue to have an impact on the return to normal operations in the region in the coming weeks.
After examining activity curtailment and delivery delays resulting from flooding, Flotek believes it will experience a transient delay in revenue of ~$2.5 million in the third quarter. It is too early to determine any lingering revenue impact from infrastructure and personnel issues, although Flotek is beginning to experience more normal procurement patterns from our clients.
7:02AM Digital Generation and Marin Software (MRIN) announce search marketing integration (DGIT) 12.93 : DG (DGIT) and Marin Software (MRIN) announced an important integration partnership that benefits clients who use both Marin Software's platform and DG MediaMind's Channel Connect: SEM solution. Channel Connect is designed to pass data back and forth between specific channel providers for campaign analysis purposes. Channel Connect: SEM provides a seamless, discrepancy-free integration between the Marin and MediaMind platforms.
Maintaining separate conversion tags for display and search platforms creates the potential for data discrepancies.
The integrated solution eliminates the need to deploy and maintain duplicate conversion tags, which simplifies the campaign set-up and maintenance processes.
7:02AM Lucas Energy announces departure of Chief Financial Officer Dale to pursue other interests (LEI) 1.24 : Dale resigned as Chief Financial Officer, Treasurer and Secretary of the Company effective immediately, providing that Mr. Dale will continue to offer support, if needed, to Lucas for several months in connection with the transition of his duties and responsibilities. Anthony C. Schnur, Lucas's Chief Executive Officer and former Chief Financial Officer, will immediately assume Mr. Dale's duties.
7:01AM NanoViricides files annual report - reports having sufficient funds to advance a drug candidate into clinical trials (NNVC) 5.19 :
7:00AM Furiex Pharmaceuticals enters into a loan agreement for $15 mln and restructures its existing secured loan (FURX) 43.99 : Co announces it has executed a $15 million debt financing transaction with Fred Eshelman, chairman and a 27.5% shareholder of co. In parallel,
Furiex has also entered into a Second Amended and Restated Loan and Security Agreement with MidCap Financial and Silicon Valley Bank to restructure its existing $40 mln credit facility. The restructured agreement defers payment of principal until May 15, 2014 with a flexible amortization schedule linked to Furiex's receipt of alogliptin royalties.
6:59AM Astronics announces acquisition of AeroSat for $12 mln in cash, plus the potential for an earn out (ATRO) 49.71 : Co announces that it has acquired certain assets and liabilities from AeroSat Corporation, a supplier of aircraft antenna systems, for $12 mln in cash, plus the potential for an earn out. Astronics expects the earnout will be between $5 and $20 mln.
AeroSat has ~40 employees, is expected to have sales of ~$12 mln to $14 mln in calendar year 2013. AeroSat's President, Dennis Ferguson, will continue to run the AeroSat operations.
Earnout payments will be due if AeroSat's 2014 revenue exceeds $30 mln and if 2015 revenue exceeds $40 mln. Earnout payments increase with revenue and are capped at $53 mln. Astronics expects 2014 revenue from AeroSat will total $20 to $40 mln; this would suggest a range from no earnout up to $3 mln in earnout awarded.
6:33AM CTG upgraded to Buy from Neutral at B. Riley & Co. (CTG) 16.16 :
6:32AM Cree upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $80 from $65 (CREE) 60.19 :
6:28AM Alcatel-Lucent outlines the Shift Plan strategy to accelerate telecommunications to the cloud (ALU) 3.53 : Co announces it will outline how The Shift Plan -- the company's industrial transformation from telecoms generalist to specialist in IP Networking and Ultra-Broadband Access -- will leverage new technologies to accelerate the move to the cloud by service providers. In particular, co will talk about how Alcatel-Lucent is leveraging Network Functions Virtualization (NFV) technology, and how it will help service providers meet the always-connected demands of their customers. NFV enables network services to be deployed on a shared cloud infrastructure instead of dedicated, purpose-built hardware.
In addition, Alcatel-Lucent is moving major parts of its portfolio to the cloud. By doing this heavy lifting, Alcatel-Lucent is both creating a path to NFV technology and giving service providers choices on which key network services to deploy to the cloud.
6:25AM On The Wires (WIRES) :
6:19AM On The Wires (WIRES) :
6:13AM Apache, partners finalize agreements to sell LNG from Wheatstone to Tohoku Electric (APA) 85.14 : Co announced that an Australian subsidiary and its partners have signed long-term sales and purchase agreements with Tohoku Electric Power for liquefied natural gas from the Chevron (CVX) -operated Wheatstone Project in Western Australia. The Wheatstone partners have agreed to supply Tohoku Electric with 0.9 mln metric tons per annum (mtpa) of LNG for up to 20 years. Through its 13% share in the Wheatstone Project, Apache Julimar Pty, an Apache subsidiary, will supply 0.11 mtpa from natural gas (~ 17 million cubic feet of gas per day) produced at the Julimar and Brunello fields in offshore production license WA-49-L. Apache and its partners previously announced heads of agreement with Tohoku. This accord finalizes the terms of the HoAs.
6:03AM Main Street Capital closes $445 mln five-year credit facility (MAIN) 29.93 : Co announced the closing of a $445 mln, five-year amended and restated credit facility that provides Main Street with expanded and longer term financing capacity to support its future investment and operational activities. The recently closed Credit Facility provides several benefits to Main Street, including (i) an expansion of the total committed facility size to $445 mln, including commitment increases by three existing lenders in the facility and the addition of two new lender relationships, which further diversifies the Main Street lending group under the Credit Facility to a total of thirteen participants, (ii) an extension of the final maturity to five years, with the facility fully revolving for the entire five-year term, and (iii) reduced LIBOR interest rate pricing and reduced unused commitment fees. The amended Credit Facility also contains an upsized accordion feature that allows for an increase in total commitments under the facility to up to $500 mln from new and existing lenders on the same terms and conditions as the existing commitments, and has a maturity date of Sep 27, 2018.
6:03AM Synergy Resources reports initial production results for five wells on its Renfroe pad in the Wattenberg Field; co ests final total well cost will be under $4 mln per well (SYRG) 9.75 : Co provides initial production results for five wells on its Renfroe pad in the Wattenberg Field. The first four wells were placed into production while flowing up 7 inch casing. Final completion was achieved with the installation of production tubing on all five wells. The fifth well on this pad, the Renfroe C-1-36HNZ, had a continuous 24 hour initial production rate of 784 BOEs while flowing up 2 3/8 inch production tubing. The production mix on all five wells consisted of 77% crude oil, 8% NGLs and 15% natural gas. The company estimates the final total well cost will be under $4 million per well. The following table presents "before and after tubing installation"
There are six wells planned on the Leffler pad consisting of 5 wells targeting the Niobrara B bench and 1 well targeting the Codell formation. The fourth well on the pad is currently in progress and the fifth well is expected to spud by the end of week. The company believes all of these wells will be completed and reach productive status by the end of December, 2013.
6:03AM Barnes Group agreed to purchase the capital stock of all the M nner operating companies for EUR 275 mln (B) 34.92 : Co has agreed to purchase the capital stock of all the M nner operating companies for EUR 275 mln, subject to certain closing and post-closing adjustments, and is expected to finance the transaction with cash on hand and borrowings under the Company's revolving credit facility. In addition, subject to the terms of the agreement, 27.5 million of the consideration payable would be delivered in the form of Barnes Group common stock. The acquisition is anticipated to close in late October or early November 2013, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. Following the closing, M nner will operate as a business unit within Barnes Group's Industrial Segment.
6:02AM Powell Inds receives $39 mln contract for Phase Two of the Washington DC Dulles Airport Metrorail extension (POWL) 61.29 : Co announced that it has received a $39 million contract to supply the packaged electrical power systems to distribute and control the power needs for Phase Two of the Washington DC Dulles Corridor Metrorail Silver Line Extension. This contract includes nine Traction Power Substations and six Tie Breaker Substations to distribute and control the electrical power for eleven miles of track.
6:01AM Alexander & Baldwin announced a fourth quarter 2013 dividend of $0.04/share (ALEX) 36.02 : Co announced a fourth quarter 2013 dividend of $0.04/share. The dividend is payable on December 5, 2013 to shareholders of record as of the close of business on November 7, 2013.
6:01AM Lexicon Pharma achieves 'positive' Results in Type 2 Diabetes patients with renal impairment; LX4211 provided clinically meaningful and statistically significant reductions (LXRX) 2.38 : Co announces that LX4211, a first-in-class, dual inhibitor of sodium glucose transporters 1 and 2 (SGLT1 and SGLT2), successfully met the primary endpoint of reducing post-prandial glucose, in a study of patients with type 2 diabetes and moderate to severe renal impairment. Reducing elevated post-prandial glucose, high blood sugar levels after meals, is a key objective of diabetes therapy.
In a placebo-controlled, proof-of-concept study, LX4211 provided clinically meaningful and statistically significant reductions (p<0.05) in post-prandial glucose in diabetes patients with moderate to severe renal impairment. Importantly, these effects were maintained in a sub-group with the most advanced renal impairment, pre-defined as those with glomerular filtration rate less than 45 ml/min/1.73 m2. LX4211 also produced significant elevations in GLP-1, a hormone involved in control of glucose and appetite.
In this multicenter study, 30 patients with poorly controlled type 2 diabetes and moderate to severe renal impairment were randomized to either placebo or a 400 mg dose of investigational drug LX4211 taken orally once per day before breakfast. Patients' post-prandial glucose was measured after a standardized meal both at baseline before treatment and after one week of therapy. In addition to achieving the primary efficacy objective of post-prandial glucose reduction, there were no serious adverse events observed in the study and no discontinuations of LX4211 due to adverse events. Lexicon plans to present full results of the study at scientific congresses in 2014.
5:59AM Ballantyne Strong (thinly traded) announced acquisition of Convergent Media Systems for ~ $16 mln; expects the transaction to be $0.06-$0.10 accretive to earnings per share in 2014 and $0.15-$0.20 accretive to earnings per share in 2015 (BTN) 4.26 : Co announced the acquisition of Convergent and its wholly owned subsidiary, Convergent Media Systems, a player in digital signage and content creation and distribution systems. The combination of Ballantyne Strong and Convergent Media Systems will create one of the largest and best capitalized companies providing digital technologies for out-of-home messaging, advertising and communication and Enterprise Video Solutions, which provides enterprises with the infrastructure necessary for communication, collaboration, training and education of employees. In aggregate, the domestic DOOH and EVS markets are estimated to be more than $4.0 billion annually. The acquisition is an all-cash transaction valued at ~ $16 million. Co expects the transaction to be $0.06 - $0.10 accretive to earnings per share in 2014 and $0.15 - $0.20 accretive to earnings per share in 2015. In addition, Ballantyne believes there are opportunities to improve working capital management that should result in higher cash flow generated from Convergent's operations.
5:37AM Huntsman repositions its Surfactants business in Europe (HUN) 20.61 : Co announces plans to re-focus its surfactants business in Europe. The company plans to transition away from a number of surfactant assets and product lines that have commoditized and to focus on developing and growing the remaining differentiated surfactants business in Huntsman's strategic markets. Relevant authorities and social partners will be fully consulted.
EBITDA impact
It is estimated that about 250 Huntsman Performance Products European positions could potentially be affected by these changes during the next 18 months. Upon completion we expect the annual EBITDA benefit will be ~$20 mln.
5:26AM Genomic Health presents Oncotype DX studies reinforcing value of tests in guiding treatment for multiple cancers (GHDX) 30.58 : Co announces results from four studies highlighting the value of its Oncotype DX? tests for optimizing treatment for patients with breast and colon cancer.
The results of two colon cancer studies from Israel and the Unites States highlight the value of individualized recurrence risk assessment to enable physicians to identify high-risk patients who can experience a greater potential benefit from chemotherapy, as well as patients with a low risk of recurrence who can be spared unnecessary treatment.
A prospective study of 269 colon cancer patients with stage IIa, mismatch-repair proficient disease in Israel showed that the Oncotype DX colon cancer test changed treatment decisions in 38 percent of patients. For patients whose treatment recommendations changed, treatment intensity decreased for 28% of patients and increased for 10 percent of patients
This study, conducted in collaboration with the Mayo Clinic Cancer Research Consortium, analyzed treatment decisions for 141 colon cancer patients with stage IIa, MMR-P disease across 17 sites demonstrating that the use of the Oncotype DX colon cancer test changed treatment decisions 45 percent of the time and led to an overall reduction in chemotherapy use. For patients whose treatment recommendations changed, treatment intensity decreased for 33 percent of patients and increased for 11 percent of patients. The decrease in physician recommendations for adjuvant chemotherapy resulted in direct medical care costs savings of $1,683 per patient.
3:52AM RTI Intl Metals acquires titanium and stainless steel extrusion business of U.K. Manufacturer Osborn Metals (RTI) 32.04 : Co announces it has acquired the Osborn Steel Extrusions business unit of Osborn Metals for ~$15 mln in cash. Osborn Steel Extrusions specializes in the manufacture of less than 6 inch diameter extruded titanium and stainless steel hollows and near-net shape profile parts. It provides its products principally to commercial aerospace, energy, power generation and defense market customers.
The unit, which currently generates ~$20 mln in annual revenues, will operate under the name RTI Extrusions Europe Limited as part of RTI's Engineered Products and Services segment.
3:51AM Pluristem Therapeutics' PLX Cells demonstrate efficacy in preclinical study for graft versus host disease (PSTI) 3.38 : Co announces that the company's PLacental eXpanded cells demonstrated efficacy in a preliminary animal experiment for the treatment of Graft versus Host Disease following bone marrow transplantation. The results showed that PLX cells, regardless of their administration route, intravenous or intramuscular, demonstrated a statistically significant improvement in the GvHD score. Following interest from leading medical institutions, Pluristem is investigating a potential cooperation to bring this indication to a clinical trial.
In the study, mice underwent total body irradiation and after twenty-four hours received a semi-allogeneic BMT. PLX cells, or the same volumes of the control vehicle, were then injected IV or IM into the mice concurrently with the BMT (day 0, ~20h after irradiation) and 5 days post-irradiation. PLX markedly reduced the GvHD score, comprised of weight loss, diarrhea, skin and fur integrity and survival. This significant reduction in the GvHD score occurred in both the IV and IM treatment groups 42 days after transplantation. Moreover, histological examination of the liver revealed reduced hepatic lymphocyte infiltration, a marker for the severity of GvHD occurring in the PLX-treated groups without preference to the route of administration.
psti'
2:37AM Biogen Idec reports new data showing significant clinical and MRI improvements with PLEGRIDY (BIIB) 240.76 : Co announces new data analyses from year one of the two-year, pivotal, Phase 3 ADVANCE study of PLEGRIDYTM. PLEGRIDY is an investigational subcutaneous injectable for relapsing forms of multiple sclerosis (RMS), in which interferon beta-1a is pegylated to prolong the molecule's exposure in the body and enable the study of a less frequent dosing schedule. Clinical and MRI data from the study demonstrated a reduction in relapses, disability progression and the number of MS lesions when compared to placebo, and further support the clinical efficacy profile of PLEGRIDY.
Improvements Seen in Clinical and MRI Endpoints
Over one year, absence of measured disease activity among patients, was significantly higher with PLEGRIDY: 34% in the two-week dosing arm and 22% in the four-week dosing arm, compared to 15% in the placebo arm.
In the intent-to-treat population of the ADVANCE study, PLEGRIDY, when dosed every two weeks, significantly reduced the number of new or newly enlarging T2-hyperintense lesions, new T1-hypointense lesions, new Gd+ lesions and new active lesions compared to placebo at 48 weeks.
2:36AM Takeda Pharma and Lundbeck announces FDA approval of Brintellix for Treatment of adults with major depressive disorder (TKPYY) 23.72 : Takeda Pharmaceutical and H. Lundbeck jointly announce that the FDA has approved Brintellix for the treatment of adults with major depressive disorder, a debilitating mental health illness affecting ~ 14 mln adult Americans in a given year.
The mechanism of the antidepressant effect of Brintellix is not fully understood. It is an inhibitor of serotonin reuptake and that is thought to be a mechanism of its action. It is also an agonist at 5-HT1A receptors, a partial agonist at 5-HT1B receptors and an antagonist at 5-HT3, 5-HT1D and 5-HT7 receptors. The contribution of each of these activities to Brintellix's antidepressant effect has not been established. It is considered to be the first and only compound with this combination of pharmacodynamic activity. The clinical relevance of this is unknown.
2:20AM QIWI prices 8,197,866 shares of its ADSs at $30.50 by selling shareholders (QIWI) 31.26 :
2:16AM Northwest Pipe to review strategic options for OCTG Operations (NWPX) 32.88 : Co announces it is in the process of exploring strategic alternatives for its Oil Country Tubular Goods business, which could include potential acquisitions, divestitures and joint-ventures. The Co has retained Raymond James & Associates, Inc. as financial advisor to assist in this initiative. Northwest Pipe said no formal decisions have been made and no agreements have been reached concerning the company's OCTG operations.
2:16AM Nabors Industries signs agreement to sell Peak Oilfield Service Co (NBR) 16.06 : Nabors Industries announces that Bristol Bay Native Corporation has signed a definitive agreement with Nabors Alaska Services Corp. to acquire a 100% ownership interest in Peak Oilfield Service Co. The acquisition is subject to customary closing conditions and is expected to close during the fourth quarter of 2013.
Co states: "This divestiture is consistent with our objectives to streamline our businesses and extract value from core operations while enhancing our financial flexibility. Proceeds from this transaction and other third quarter asset sales will more than cover the approximate $207 million premium paid to refinance $785 million of higher-cost debt through our recent tender offer which reduced annual interest expense by over $40 million."
2:05AM Apt Inv & Mgt closes new $600 mln credit facility, replacing its existing $500 mln facility (AIV) 27.94 :
2:04AM National Bank announces streamlined focus on core markets (NBHC) 20.54 : Co announces it will streamline its focus on serving its clients through full-service banking centers across its core geography of Colorado, Kansas, Missouri and Texas, as well as through online and mobile banking channels. The decision will result in the integration of its limited-service retirement center locations into its full-service banking center network, as well as the exit of its limited presence in California. Following this change, the company will continue to operate 97 banking centers.
The company will exit a total of four banking centers in Northern California, which it acquired with the 2011 purchase of Community Banks of Colorado. The company will also integrate its 32 limited-service retirement center locations into its full-service banking center network. These locations were acquired as part of its 2010 purchase of Hillcrest Bank.
2:02AM Alimera Sciences: UK's NICE issues final appraisal determination recommending ILUVIEN for chronic diabetic macular edema (ALIM) 3.76 : Co announcesthat in its Final Appraisal Determination, the United Kingdom's National Institute for Health and Care Excellence (NICE) has recommended ILUVIEN funding for the treatment of pseudophakic eyes in chronic diabetic macular edema patients that are insufficiently responsive to available therapies.
The final draft guidance reverses the published guidance issued by NICE on January 23, 2013, and takes into consideration a simple patient access scheme submitted by Alimera. In addition, NICE reviewed Alimera's updated data analysis showing ILUVIEN's cost effectiveness among a subgroup of chronic DME patients who have an eye that is considered pseudophakic, meaning that the eye has already undergone cataract surgery.
NICE's final guidance regarding reimbursement of ILUVIEN within the NHS in England and Wales is expected to be published in November 2013.
pSivida Corp (PSDV) is also associated with this decision.
1:59AM TrueBlue acquires The Work Connection (TBI) 24.01 : Co announces it has acquired substantially all of the assets of The Work Connection, a light industrial staffing provider founded in 1986 with 37 branches located predominantly in the Midwest.
The acquisition of TWC is expected to contribute an additional $90 mln in revenue in 2014. The base purchase price for TWC was ~$20 mln, paid in cash. An additional amount was paid to reimburse the Seller for certain working capital adjustments.
1:54AM National Realty, L.P. announces termination for financing commitment letter related to Going Private merger transaction (NLP) 4.71 : Co announces that the special committee of the board of directors of NTS Realty Capital, the company's managing general partner, received a letter from NTS Merger Parent and NTS Merger Sub regarding the debt commitment letter related to the Company's proposed merger with NTS Merger Sub, dated as of December 27, 2012, among Parent, Merger Sub and the Company. The Commitment Letter provides that it will terminate if the facility contemplated by the Commitment Letter does not for any reason close by September 30, 2013. The Letter provides that there has been no extension of the Financing Termination Date and that the facility contemplated by the Commitment Letter has not closed.
1:50AM Walker & Dunlop lowers its Q3 Origination guidance to $1.7-1.9 bln from $2.0-2.5 bln prior (WD) 15.91 : Co announces that it expects third quarter 2013 loan originations to be in the range of $1.7 - 1.9 bln, below the Company's third quarter guidance of $2.0 - 2.5 bln due to rising interest rates and a slowdown in lending activity by Fannie Mae and Freddie Mac to stay under their FHFA-imposed 2013 lending caps.
1:48AM Territorial Bancorp completes its forth repurchase program; co repurcased 532K shares at avg price of $22.29 (TBNK) 21.97 :
1:36AM Wells Fargo reaches agreement resolving Freddie Mac repurchase demands on loans prior to 2009 (WFC) 41.32 : Co announces it reached an agreement with the Federal Home Loan Mortgage Corp (Freddie Mac) that resolves substantially all repurchase liabilities related to loans sold to Freddie Mac prior to Jan. 1, 2009.
The $869 mln agreement was adjusted for credits related to certain prior repurchases, resulting in a one-time cash payment to Freddie Mac of ~$780 mln. At June 30, 2013, Wells Fargo had fully accrued for the cost of the agreement.
1:35AM Group 1 Auto acquires Honda dealership in Tulsa, expected to generate $60 mln in revs (GPI) 77.68 :