Listen to it yourself
July 17, 2014
07:57 EDT KORS Michael Kors promo concerns creates buying opportunity, says Canaccord
Canaccord said promotional activity concerns at Michael Kors have created a buying opportunity. The firm said markdowns were no bigger than last year, suggesting a standard seasonal markdown in anticipation of fall deliveries. Canaccord believes long term growth opportunities remain robust at Kors and keeps a Buy rating and $123 price target on the shares.
7:03 am Blackstone beats by $0.44, beats on revs (BX) : Reports Q2 (Jun) economic net income of $1.15 per share, $0.44 better than the Capital IQ Consensus of $0.71; revenues rose 56.2% year/year to $2.24 bln vs the $1.6 bln consensus.
Blackstone's portfolio company operating approach drove results to record levels and segment appreciation outperformed the broader equity markets with 8.4% appreciation during the quarter and 28.3% LTM.
Opportunistic Real Estate funds' carrying value appreciated 6.0% for the quarter and 28.3% LTM.
Distributable Earnings more than doubled in the quarter year-over-year on a record level of realizations, bringing the year-to-date total to $1.3 billion ($1.06/unit).
MGIC Investment expects would meet requirements of draft PMIERs
As of June 30, MGIC Investment had approximately $515M of cash and investments, a portion of which we believe may be available for future contribution to MGIC. Furthermore, there are regulated insurance affiliates of MGIC that have approximately $100M of assets as of June 30. "We expect that, subject to regulatory approval, we would be able to use a material portion of these assets to increase the Available Assets of MGIC. Additionally, if the Draft PMIERs become effective in their current form, we would consider seeking additional reinsurance and/or non-dilutive debt capital to mitigate the shortfall. For these reasons, we believe we will be able to use a combination of the alternatives outlined above, so that MGIC expects it would meet the requirements of the Draft PMIERs even if they become effective in their current form," the company said.
Shares of Ruckus Wireless (RKUS) and Aruba Networks (ARUN) are rising after the FCC announced that it would allocate new funds to subsidize the launch of WiFi networks in schools and libraries. Ruckus and Aruba provide products used for WiFi networks. WHAT'S NEW: The FCC said it would allocate $2B over the next two years to subsidize the launch of WiFi connections at schools and libraries. For the following three years, the agency said it would look to spend $1B annually on the project. The FCC said the funds would be "distributed fairly to all schools and libraries while recognizing the needs of the nation’s rural and poorest school districts."
Not set in stone
Although the rules are just preliminary, the concerns of these companies are valid. With the difficulties of the past still weighing upon them, any new burden will not be welcome. While both Radian and Genworth saw their stock prices drop by around 5% within the first two hours of trading on Friday morning, hard-hit MGIC toppled by nearly 13%, likely not helped by an early morning downgrade by Goldman Sachs.
After the initial shock abates, however, things should begin to look up for these insurers – particularly Genworth, which exhibited the least amount of panic regarding the proposed rules. Probably, the input from the industry will soften the edges of the FHFA's requirements, as well. For the moment, however, the bloodletting continues.