9:56 am Dow -108 set new low near short term support at 15180/15170 -- S&P -17 and Nasdaq Comp -34 hovering just above their lows/support (:TECHX) :
9:47 am Aggressive follow through pressure -- S&P -16, Nasdaq Comp -32 (SPY) : The strong follow through selling brought supports noted in The Technical Take at 1635/1634 S&P (session low 1635) and 3424/3415 Nasdaq Comp (session low 3422) into play in recent trade with a limited pause developing thus far.
9:42 am Early relative sector strength (:TECHX) : Gold Miners GDX +1.5%, Gold GLD +1.6% -- KGC, EGO, AUY, NEM, GG, GFI, HMY, ABX, AU, AEM-- Silver SLV +0.6% and Treasuries.
9:35 am Opko Health surpasses 50% enrollment in first Phase 3 trial of Rayaldy (CTAP101 capsules) (OPK) : Co has surpassed 50% enrollment in the first phase 3 trial of Rayaldy to treat patients with secondary hyperparathyroidism (:SHPT), stage 3 or 4 chronic kidney disease (:CKD) and vitamin D insufficiency. This trial is the first of two identical randomized, double-blind, placebo controlled, multi-site studies intended to establish the safety and efficacy of RayaldyTM as a new treatment for SHPT in the targeted population. The endpoints of both studies, which will be conducted in parallel, include vitamin D status and changes in serum calcium, serum phosphorus and plasma intact parathyroid hormone (PTH).
9:26 am On The Wires (:WIRES) :
- The U.S. Army Space and Missile Defense Command has awarded BAE Systems (BAESY) an $85 mln, two-year contract extension to continue its support of the agency's Future Warfare Center.
- Lpath (LPTN) has initiated dosing in a Phase 2a single-arm trial where ASONEP is being investigated as a treatment for renal cell carcinoma in subjects that have failed the standard of care treatment with FDA-approved agents that block VEGF signaling and the mTOR pathway.
- CA Technologies (CA) announced that CA Clarity Project and Portfolio Management has again received a "strong positive" rating in Gartner's "MarketScope for IT Project and Portfolio Management Software Applications" report.
- Liberty Property Trust (LRY) has purchased 2100 M Street NW, a 290,762 square foot, eight-story office building in Washington, D.C., for $133.5 mln.
- Burger King Worldwide (BKW) expands its delivery service to Las Vegas and Sacramento.
- 3D Systems (DDD) plans to hold an analyst and investor meeting on Monday, June 17, 2013, at 10:00 a.m. EDT at the W Hotel Union Square in New York, NY.
- Dana Holding (DAN) announced that its subsidiary has signed an agreement with Victor Reinz India, the co's JV with India-based Jayant Group, to manufacture Dana's heat exchanger technologies for the local market.
9:16 am Apricus Biosciences prices $17.1 mln public offering of common stock and warrants at $2.85 (APRI) : Co warrants to purchase up to an aggregate of 3,000,000 shares of common stock for gross offering proceeds of $17,100,000. The shares of common stock and warrants are immediately separable and will be issued separately. The warrants are exercisable immediately upon issuance, have a five-year term and an exercise price of $3.40 per share.
The warrants will be certificated, and will be delivered to the investors by physical delivery following the closing. There is no established public trading market for the warrants an we do not expect a market to develop. Certain officers and directors of the Company have also participated in the offering and will be purchasing the offered securities from the underwriters.
9:04 am Visa names Ryan McInerney President (V) : Co announced the appointment of Ryan McInerney as President of Visa. Mr. McInerney joins Visa from JP Morgan Chase (JPM) where he was the CEO of Consumer Banking.
9:03 am China Shen Zhou Mining receives delisting notice from NYSE MKT (SHZ) : Co announced it received a delisting notice (the "Notice") from the staff (the "Staff") of NYSE Regulation on behalf of NYSE MKT LLC indicating that the Co had failed to demonstrate its ability to regain compliance with Sections 1003(a) (iv) of the Exchange's Co Guide. Section 1003(a)(iv) of the Co Guide applies if a listed co has sustained losses that are substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the company will be able to continue operations and/or meet its obligations as they mature. The Notice further stated that the Co is not in compliance with Sections 134 and 1101 of the Co Guide for not filing its annual report on Form 10-K for the fiscal year ended December 31, 2012
9:02 am Sempra Energy narrows FY13 EPS guidance to $4.30-4.60 from $4.30-4.80 (SRE) : Co issues in-line guidance for FY13 (Dec), sees EPS of $4.30-4.60, excluding non-recurring items, vs. $4.48 Capital IQ Consensus Estimate. Co narrowed its earnings-per-share guidance for 2013 from prior per-share guidance of $4.30 to $4.80. The 2013 earnings guidance includes $0.30 per share of earnings for the recognition of additional authorized revenues for 2012 operations under the recent General Rate Case decision for San Diego Gas & Electric and Southern California Gas Co.
Co set earnings-per-share guidance at $4.25-4.55 for 2014 and $5.10-5.60 for 2017. This earnings guidance does not reflect any significant contribution from the Cameron LNG liquefaction-export project, which is not expected to be in full operation until the end of 2018. Additionally, the co reaffirmed its long-term compound annual earnings growth target of 6-8%.
9:02 am BioTime announces shareholders approved the proposals related to the planned acquisition of stem cell related assets from Geron (GERN) by BioTime's subsidiary Asterias Biotherapeutics (BTX) : Co announced that at a Special Meeting held on May 21, 2013, its shareholders approved the proposals related to the planned acquisition of stem cell related assets from Geron Corporation by BioTime's subsidiary Asterias Biotherapeutics. Each of the proposals received at least 32,459,164 votes in favor from the 34,450,307 shares that were represented and voted, in person or by proxy, at the meeting. Additional information concerning the proposals approved at the Special Meeting and the vote totals can be found in a Form 8-K that BioTime has filed with the Securities and Exchange Commission.
9:00 am Martin Midstream Partners L.P. to acquire assets of NL Grease; price not disclosed (MMLP) : Co announced that its subsidiary, Martin Operating Partnership has entered into an asset purchase agreement to acquire substantially all of the assets and inventory of Kansas City, Missouri based NL Grease, a grease manufacturer that specializes in private-label packaging of commercial and industrial greases. The acquisition is expected to close before the end of July 2013. The Partnership expects incremental cash flow of ~$2.5 mln annually from the newly acquired assets.
8:55 am Lincoln National declared a quarterly cash dividend of $0.12 per share on the corporation's common shares (no change in dividend); The board of directors has also called for the redemption of all of its outstanding $3.00 cumulative convertible preferred stock (LNC) : Co declared a quarterly cash dividend of $0.12 per share on the corporation's common shares. The dividend on the common stock will be payable August 1, 2013, to shareholders of record at the close of business on July 10, 2013.
The board of directors has also called for the redemption of all of its outstanding $3.00 Cumulative Convertible Preferred Stock, Series A. The redemption date is July 2, 2013. The Series A Preferred Stock will be redeemed at a price of $80 per security, plus any accrued and unpaid dividends for the period up to but excluding the Redemption Date.
8:50 am Approach Resources reports temporary curtailment of production due to third-party facility power failure; expects second quarter 2013 production to range from 8.7 MBoe/d to 9.1 MBoe/d, compared to prior guidance of 9.3 MBoe/d to 9.6 MBoe/d (AREX) : Co reported that its production has been curtailed due to a power outage at the Phillips 66 Sweeny, Texas refinery. The co's NGLs currently flow to the Sweeny refinery and fractionation complex through DCP Midstream's processing plants in the Ozona, Texas area and through Chevron Pipe Line Company's EZ Pipeline. Power has been restored to affected fractionation units at the Sweeny complex. Co estimates that production of ~ 5.2 MBoe/d has been curtailed since May 11, 2013, due to downtime caused by the power outage, and expects a full return to service by the end of this week. Before the curtailment, the co's production for second quarter 2013 was averaging ~ 9.7 MBoe/d. As a result of the curtailment, the co expects second quarter 2013 production to range from 8.7 MBoe/d to 9.1 MBoe/d, compared to prior guidance of 9.3 MBoe/d to 9.6 MBoe/d.
8:50 am Chembio awarded $750,000 cooperative research agreement (CEMI) : Co announced that it has been awarded a cooperative research agreement with a U.S. government agency for up to $750,000 for an eight month development project. The project is to develop rapid POC diagnostic tests for five infectious diseases associated with febrile illness and to multiplex them into one assay. The project also contemplates that the test would be optimized for use with a mobile reader that incorporates cell phone technology to enable the results to be recorded, transmitted and monitored remotely via a cloud system, in real-time.
8:47 am On The Wires (:WIRES) :
- Wave Systems (WAVX) secured a Gold Server Platform competency in the Microsoft (MSFT) Partner Network.
- New Residential Investment (NRZ) has co-invested with Nationstar Mortgage (NSM) in its recent acquisition of mortgage servicing rights. The portfolio has an unpaid principal balance of ~ $23 bln and is composed of residential mortgage loans in government sponsored enterprise pools.
- Greenway Medical Technologies (GWAY) has been granted two new U.S. patents related to electronic quality-of-care data liquidity.
- HealthSouth (HLS) plans to build a 50-bed comprehensive inpatient rehabilitation hospital in Newnan, Ga.
- Take-Two Interactive Software's (TTWO) Rockstar Games confirmed Special Edition and Collector's Edition of Grand Theft Auto V for the PlayStation3 (SNE) computer entertainment system and Xbox 360 (MSFT) video game and entertainment system are now available for worldwide pre-order from participating retailers.
8:44 am European Markets Update: FTSE -1.7%, CAC -2.4%, DAX -2.7% (:SUMRX) : European indices trade lower following the significant decline in Japan. Regional economic data was plentiful as Eurozone Manufacturing and Services PMI surprised to the upside, but remained in contraction. The Manufacturing PMI rose to 47.8 from 46.7 (47.0 forecast) while the Services component increased to 47.5 from 47.0 (47.2 consensus). French Manufacturing PMI rose to 45.5 from 44.4 (44.8 consensus) while the Services component remained unchanged at 44.3 (44.5 forecast). In Germany, Manufacturing PMI climbed to 49.0 from 48.1 (48.5 consensus) while Services PMI held steady at 44.3 (44.5 expected). In the United Kingdom, first quarter growth of 0.3% was confirmed by the second estimate of GDP. In addition, business investment declined 0.4% quarter-over-quarter (+1.7% expected, -0.8% prior) while the Index of Services rose 0.6% (+0.7% expected, +0.1% previous). Elsewhere, Italian retail sales declined 0.3% (+0.3% forecast, -0.2% prior).
Also of note, Spain sold 3- and 5-yr debt in an auction which resulted in higher yields than the previous sale. The 3-yr note cleared the market at a yield of 2.442% (2.268% previous) while the 5-yr note sold with a yield of 3.001% (2.807% prior).
- In the United Kingdom, the FTSE is off by 1.7% amid weakness in miners and financials. Anglo American and Barclays are both down near 4.0%. On the upside, United Utilities Group trades higher by 1.0%.
- France's CAC trades down 2.4% as bank shares lead to the downside. Credit Agricole and Societe Generale trade with respective losses of 3.8% and 4.4%. Gemalto is the lone advancer in the CAC as the tech company trades higher by 1.2%.
- In Germany, the DAX is down 2.7% as financials weigh. Allianz, Commerzbank, and Deutsche Bank are all down between 2.4% and 3.4%.
8:38 am Ply Gem Holdings prices 15.8 mln share IPO at $21 per share, above the $18-20 expected range (PGEM) :
8:35 am Marathon Oil provides asset divestiture update; As previously announcement engaged in discussions with respect to a potential sale of a portion of the co's 20% outside-operated interest in the Athabasca Oil Sands Project (MRO) : Co engaged in discussions with respect to a potential sale of a portion of the Company's 20 percent outside-operated interest in the Athabasca Oil Sands Project in Alberta, Canada. An agreement was not reached with the prospective purchaser and negotiations have been terminated. Marathon Oil is not engaged in further discussions with respect to a potential sale of these assets; however, the Company will continue to evaluate ways to optimize its portfolio for profitable growth and to deliver value to shareholders. As such, the Company's stated goal of divesting between $1.5 bln and $3 bln in assets over the period of 2011 through 2013 remains intact. As of May 22, 2013, Marathon Oil has agreed upon or closed on ~$1.3 bln in divestitures.
8:35 am Gamestop beats by $0.06, beats on revs; guides Q2 EPS in-line; raises low end of FY14 guidance (GME) : Reports Q1 (Apr) earnings of $0.46 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.40; revenues fell 6.8% year/year to $1.87 bln vs the $1.82 bln consensus. Consolidated comparable store sales decreased 6.7% compared to the prior year quarter.
Topline sales continue to be impacted by the late stage effects of the current console cycle. During the quarter, mobile sales grew 290% to $46.8 million and digital receipts grew 47.3%. Sales in new software decreased 3.8% compared to a U.S. industry decline of 14.2%, leading to a 470 basis point market share increase in the first quarter. New hardware sales declined 30.6%, while pre-owned sales decreased 7.5%. Year-to-date, GameStop's U.S. market share of new PS3 and Xbox 360 software is 47.7%.
Co issues in-line guidance for Q2, sees EPS of $0.01-0.07 vs. $0.07 Capital IQ Consensus; comps (16)-(12.5%).
Co issues in-line guidance for FY14, raises EPS to $2.90-3.15 from $2.75-3.15 vs. $3.08 Capital IQ Consensus; raises comp guidance to (5)-1.5% from (6)-1.5% vs. ests (1%)
8:34 am Advance Auto beats by $0.03, reports revs in-line (AAP) : Reports Q1 (Mar) earnings of $1.65 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.62; revenues rose 3.0% year/year to $2.02 bln vs the $2.01 bln consensus.
"During Q1, as anticipated, our business continued to be constrained by the unseasonably warm weather last year which had deferred the maintenance on vehicles. Additionally, due to the impact of payroll tax increases on our core consumer, delayed income tax refunds and a very slow start to the spring selling season, our business was softer than anticipated with our comp store sales declining 3.2%," said Darren R. Jackson, Chief Executive Officer.
"However, we had our best performance the last two weeks of our first quarter. During that period we saw our first week of positive transaction growth and strength across our major categories. We are encouraged by the fact that we have continued to generate positive comp store sales growth so far through our Q2. This is a clear sign that our market remains strong and consumers still have a willingness to invest in reliable transportation."
8:34 am Plains Exploration and Freeport-McMoRan Copper & Gold (FCX) announce final allocation of merger consideration; allocation has been determined based on an FCX stock price of $32.17 per share (PXP) : Freeport-McMoRan Copper & Gold (FCX) and Plains Exploration & Production (PXP) announced the final allocation of the merger consideration to be paid in connection with FCX's pending acquisition of PXP, which was approved by PXP stockholders on May 20, 2013 and is currently expected to be completed on May 31, 2013.
Under the terms of the merger agreement between FCX and PXP, PXP stockholders were entitled to elect to receive, for each share of PXP common stock held, either cash or shares of FCX common stock with a value equal to the sum of 0.6531 shares of FCX common stock and $25.00. As previously announced, as of the election deadline, approximately 29.1 percent of the outstanding shares of PXP common stock and equity awards entitled to receive the merger consideration elected to receive cash, approximately 45.5 percent elected to receive FCX common stock, and the remaining approximately 25.4 percent did not make a valid election or did not deliver a valid election form prior to the election deadline.
PXP stockholders electing to receive FCX common stock will receive shares of FCX common stock at an exchange ratio of approximately 1.4302 shares of FCX common stock for each share of PXP common stock. PXP stockholders electing to receive cash will receive $46.01 in cash for each share of PXP common stock. PXP stockholders who did not make a valid election or did not deliver a valid election form prior to the election deadline will receive approximately 99.5 percent of their merger consideration in cash equal to $46.01 for each share of PXP common stock. No fractional shares of FCX common stock will be issued, and PXP stockholders will receive cash in lieu of fractional shares.
8:32 am PDC Energy extends maturity of its revolving credit facility to 2018 with post-divestiture borrowing base of $450 mln (PDCE) : Co announced that on May 21, 2013, the Company entered into its third amended and restated credit agreement with its current group of lenders led by JPMorgan Chase Bank, N.A., as Administrative Agent.
The new facility maintained the Company's borrowing base at $450 million post the planned divestiture of non-core Colorado natural gas assets, subject to normal semi-annual redetermination, and extended the maturity date by approximately two and one-half years to May 21, 2018. The new facility also amends certain other provisions, including a reduction of the applicable interest rate on its borrowing options and increased flexibility for hedging positions related to the Company's expected production.
8:31 am Unum Group announces Kevin P. McCarthy, chief operating officer of the co and chief executive officer of its Unum US operating unit, intends to retire in the first quarter of 2014 (UNM) : Co announced that Kevin P. McCarthy, chief operating officer of the company and chief executive officer of its Unum US operating unit, intends to retire in the first quarter of 2014. He is stepping down from his role as CEO of Unum US effective July 1, 2013, while maintaining his position of chief operating officer of Unum Group. Michael Q. Simonds, currently chief operating officer of Unum US, will succeed McCarthy as CEO of that unit.
8:30 am Market View: Front-month Jun. E-mini index futures remain well below fair values following the 8:30 a.m. ET release of Jobless Claims data- ESm3 currently trades @ 1640.25 -15.25 (:TECHX) :
8:30 am rue21 enters into definitive agreement to be acquired by funds advised by apax Partners for $42.00/share in cash (23% premium) (shares halted-- will resume trading at 9:00) (RUE) :
- Co announced a definitive agreement under which funds advised by Apax Partners will acquire all outstanding shares of rue21 for $42.00 per share in cash. The transaction is valued at ~$1.1 bln.
- The transaction price represents a premium of ~23% to yesterday's closing share price and ~42% to the 90-day volume weighted average price.
- The rue21 Board of Directors approved the agreement based on the unanimous recommendation of a Special Committee comprised of three independent directors.
- As part of the agreement, the Special Committee, with the assistance of its advisors, will conduct an initial 40-day "go-shop" process starting today during which it will actively solicit, evaluate and potentially enter into negotiations with any parties willing to offer a superior acquisition proposal. The go-shop process provides for a low termination fee of 1% (~$10 mln) to be paid to Apax. rue21 management, including Bob Fisch, has not entered into any arrangements with Apax and is willing to work with any party that emerges through the go-shop process.
- The SKM II funds, which collectively own ~30% of the outstanding shares of rue21, have entered into a support agreement to vote their shares in favor of the transaction with Apax. Pursuant to the terms of the support agreement, if the agreement with Apax is terminated and rue21 enters into a superior transaction, the SKM II funds have agreed to vote their shares in favor of such superior transaction on the same pro rata basis as unaffiliated stockholders.
- Co issues downside guidance for Q1 (Apr), sees EPS of $0.44 vs. $0.48 Capital IQ Consensus Estimate; sees Q1 (Apr) sales growth of +9.1% calc to ~$224.3 mln vs. $233.41 mln Capital IQ Consensus Estimate. Co says Q1 comparable store sales decreased 4.6% from the year-ago quarter
- "This quarter rue21 was impacted by the same challenges that affected the entire industry -- unseasonably cool weather, higher payroll taxes and delayed tax refunds. All of these factors affected shopping patterns and resulted in a tougher quarter than we had forecasted in terms of sales growth. Looking ahead we expect both the weather and consumer spending to improve and believe our 2013 strategic initiatives, including opening 125 stores in 2013"
8:30 am Freddie Mac securitizes $1 Billion of performing modified loans (FMCC) : Co announced that it has begun securitizing certain performing modified mortgage loans held in the company's mortgage-related investments portfolio.
- To be eligible for securitization, loans need to be current for at least six consecutive months.
- The modified mortgage loans are pooled into new Freddie Mac Fixed-Rate Modified Participation Certificates.
- They are not TBA deliverable and do not include loans modified through the Home Affordable Mortgage Program (HAMP).
- The PCs are eligible collateral for new Freddie Mac Giant PC securities.
- Freddie Mac bought the vast majority of these loans out of its related PCs when the loans were at least 120-days delinquent. When loans become 120 days or more delinquent, it is generally Freddie Mac's policy to purchase the delinquent loans out of the PCs and hold them in its mortgage-related investments portfolio while the company pursues resolutions to the delinquencies.
- In November 2011, Freddie Mac began securitizing previously delinquent, non-modified loans that it had repurchased from its related PCs, and that had been reinstated to current, performing loan status.
8:25 am Constellium prices ~ 22.2 mln share IPO at $15 per share, below the $17-19 expected range (CSTMF) :
8:24 am Gapping down (:SCANX) : In reaction to disappointing earnings/guidance: DRYS -6.7%, RL -4.3%.
Financial related names showing weakness: NBG -5.3%, ING -2.4%, DB -2.2%, HBC -1.9%, BCS -1.8%, BAC -1.6%, SAN -1.4%
Japan related names lower after Nikkei plunged 7.3%: KYO -9.9%, NMR -7.1%, MTU -6.7%, SMFG -5.9%, NTT -4.2%, SNE -3.8%, MFG -3.3%, DCM -3.3%, HMC -3.2%, TM -3%, TSM -2.1%
Solar names pulling back in early trade: STP -11.8%, YGE -4.6%, SPWR -4.2%, FSLR -3.8%, RSOL -2.1%, TSL -1.8%, LDK -1.2%
Other news: CLNT -11.3% (modestly pulling back), APRI -9.1% (announces proposed public offering of common stock and warrants), SAAS -7% (disclosed Piper proposes to purchase Enterprise Network Holdings stake in SAAS), DDD -6.2% (continued weakness), NCS -5.5% (CYNO to replace NCS in the S&P SmallCap 600), BXMT -4% (announces upsizing and pricing of public offering Of Class A Common Stock), AMD -4% (still checking for anything specific), MCP -3.8% (Japan is planning on developing offshore rare earth resources, according to reports), TSLA -3.7% (confirms that it has repaid its $451 mln government loan as expected ), GRPN -3.6% (still checking), WAIR -2.5% (announces pricing of sale of 15 mln shares of common stock by the Carlyle Group (CG) at $16 per share), SDRL -2.5% (still checking), INFN -2% (proposed $100 mln offering of convertible senior notes due 2018), OAK -1.9% (prices 7 mln shares at $53.50 per share), LNKD -1.7% (LinkedIn has acquired social polling startup Maybe for $750 mln, according to reports), LG -1.5% (prices 8.7 mln shares of common stock at $44.50 per share), F -1.5% (plans shut down two manufacturing plans in Australia following higher costs, according to reports), BIDU -1.4% (Sohu.com's Sogou unit has attracted interest from Baidu (BIDU), Tencent and Qihoo 360 (QIHU), according to reports), JCP -1.2% (Announces Consummation of $2.25 Billion Term Loan and Initial Settlement of its Tender Offer and Consent Solicitation ), AVB -0.5% (announces secondary offering of 7.87 mln shares of common stock by affiliate of Lehman Brothers Holding), EQR -0.4% (prices offering of 15.068 mln of its common shares by Jupiter Enterprise, an indirect subsidiary of Lehman Brothers Holdings; price not disclosed).
Analyst comments: SANM -3.6% (downgraded to Sell from Hold at Deutsche Bank), ARMH -2.7% (downgraded to Neutral from Outperform at Exane BNP Paribas), DVN -1.8% (downgraded to Neutral from Overweight at JP Morgan), JNJ -1.7% (resumed with a Underperform at Credit Suisse), O -1.3% ( downgraded to Sell from Neutral at Goldman), FLEX -0.7% (downgraded to Hold from Buy at Deutsche Bank)
8:23 am On The Wires (:WIRES) :
- Proofpoint (PFPT) announced the addition of five channel partners to its Proofpoint Referral Partner Program.
- Masimo (MASI) announced that El Paso Children's Hospital has upgraded to Masimo SET pulse oximetry and sensor technologies.
- Alexander & Baldwin (ALEX) announced that its real estate subsidiary, A&B Properties, has completed the acquisition of Napili Plaza, a 46,000-square foot retail center in West Maui, for $19 mln, reinvesting $15 mln of proceeds from the Jan 2013 sale of the Northpoint Industrial facility in Fullerton, California, and non-income producing land in Hawaii.
- Broadcom (BRCM) announced that Chinese smartphone manufacturer TCL Communication has chosen the BCM28145, a Broadcom 3G HSPA+ platform for use in its new J310 Android-based smartphone.
- EdR (EDR) announced that the Capital Projects and Bond Oversight Committee of the Kentucky Legislature has provided the final required approval to proceed with Phase II-B - the next phase of the University of Kentucky's master plan to systematically replace outdated residence halls with modern living and learning facilities.
- OfficeMax Workplace, the U.S. business-to-business division of OfficeMax (OMX), has expanded its IT Lifecycle Management Services with the addition of HP Networking.
8:22 am On The Wires (:WIRES) :
- Green Innovations (GNIN) announced that its subsidiary, Green Hygienics, has entered into a Letter of Intent with Tauriga Sciences for the commercial launch of hospital grade products including 100% tree-free bamboo-based disinfectant wipes.
- Cisco (CSCO) announced that Zhejiang Wasu Cable TV Network has successfully deployed a new 100 gigabit Internet Protocol and Dense Wave Division Multiplexing backbone network to better support cloud-based video and data services.
- API Technologies (ATNY) has been awarded a two-year contract, valued over $2.0 mln, to supply custom magnetics solutions to a prime contractor, for use on multiple versions of a major defense communications platform.
- FMC Technologies (FTI) received an order from Shell (RDS.A) for the supply of subsea equipment to support the Stones field development.
- LiveDeal (LIVE) announced that its subsidiary Velocity Local was recently selected by the San Diego Paralegal Association to provide all of its web, social media, and mobile marketing services.
- Merrimack Pharmaceuticals (MACK) announced that the last patient has been enrolled in a Phase 2 randomized, double blind clinical trial of MM-121 in combination with exemestane in postmenopausal women with locally advanced or metastatic estrogen receptor positive and/or progesterone receptor positive, HER2-negative breast cancer. MM-121, a fully human monoclonal antibody that targets ErbB3, is being developed in collaboration with Sanofi (SNY).
8:16 am Unum Group Board authorizes increase of 11.5% in the quarterly dividend to $0.145 per share (UNM) :
8:15 am Perrigo to transfter common stock listing to NYSE from the NASDAQ Global Select Market (PRGO) : The Company expects to begin trading on the NYSE on June 6, 2013 under its current stock symbol "PRGO", and will continue to trade on NASDAQ until the transfer takes place.
8:12 am Asian Markets Close: Nikkei -7.3%, Hang Seng -2.5%, Shanghai -1.2% (:SUMRX) : The major Asian bourses saw significant weakness with a 7.3% plunge in Japan's Nikkei leading to the downside. Markets across the region were all down in excess of 1.0%, aside from Bursa Malaysia which lost 0.6%. The selling in Japan came after JGBs were halted following a one point drop in the 10-yr that ran its yield up 10 bps and above 1.00%. Strengthening of the yen exacerbated the selling, and the Nikkei saw a drop of more than 1500 points from session highs to session lows. The Bank of Japan moved to calm markets by injecting JPY2 trln. Overshadowed by all of this was the disappointing Chinese HSBC Flash Manufacturing PMI, which fell into contraction for the first time since October with a 49.6 reading ((50.5 expected, 50.4 previous). Data from the rest of the region saw Singapore's GDP slow to +0.2% QoQ, Australia's MI Inflation Expectations tick up to 2.3%, Taiwan's industrial production fall 0.9% YoY, and Thailand's trade deficit widen to $2.85 bln ($0.87 bln previous). Looking at the currencies...USDCNY climbed to 6.1348; USDINR fell to 55.58; USDJPY is lower at 101.65; AUDUSD is flat at .9690. In Japan, the Nikkei closed -7.3% after gaining more than 1.5% early in the session. Real estate names saw heavy selling as Mitsui Fudosan and Sumitomo Realty & Development plunged 9.0% and 10.7% respectively. Financials were also under significant pressure as Nomura Holdings tumbled 8.4% Mitsubishi UFJ Finance gave up 9.6%. Click here to see a 5 minute Nikkei chart.
In Hong Kong, the Hang Seng finished -2.5% to post their worst loss in seven weeks. Commodity related names were weak with aluminum maker Chalco losing 2.8% and Cnooc shedding 2.5. Meanwhile, Lenovo outperformed with a gain of 2.8% after posting better than expected quarterly results...In China, the Shanghai Composite settled -1.2%, posting their biggest decline in a month. The weak PMI data weighed on Jiangxi Copper and Tongling Nonferrous Metals, which both gave up more than 2.5%. Elsewhere, automakers were pressured with Great Wall Auto losing 4.0%.
In India, the Sensex closed -1.9% as trade fell for a fourth session. Larsen & Toubro continued to see weakness, posting a 6.3% drop after giving up 5.7% in the previous session. Meanwhile, blue chips such as ICICI Bank and Reliance Industries lost 3.1% and 4.2% respectively. State Bank of India was the laggard, tumbling 7.9%, following its earnings release.
In Australia, the ASX finished -2.0% as trade fell to a one-month low. All of the 'big four' banks were lower with Westpac plunging 4.1% to lead the sector's decline. Heavyweight miners fared better with BHP Billiton down 1.1% and Rio Tinto off 2.1%.
In Taiwan, the Taiex settled -1.9% as Fubon Financial lost 3.2%...In South Korea, the Kospi closed -1.2% as Hyundai Heavy slid 2.9%.
In other regional markets...Singapore -1.8%...Indonesia -1.7%...Thailand -1.5%...Philippines -1.0%...Vietnam -0.8%...Malaysia -0.6%
8:11 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: PSUN +16.4%, HPQ +11.6%, OESX +7.9%, (thinly traded), VVTV +5.7%, HEI +3.5%, (light volume), WDAY +3.4%, ORIG +3.2%, PETM +2.5%, SNPS +2.3%, PLCE +1.6%, AINV +0.7%, LTD +0.3%.
M&A news: LPS +13.4% and FNF +0.5% (Fidelity National Financial and buyout firm Thomas H. Lee Partners are in discussions to purchase LPS for $33/share, according to reports).
Other news: CYNO +4.3% (CYNO to replace NCS in the S&P SmallCap 600), LPSN +3.5% (authorized the additional funding of a previously-announced stock repurchase program), DPZ +3.3% (DPZ to replace PXP in the S&P MidCap 400), LYB +1.4% (announces share repurchase program; increase to interim dividend).
Analyst comments: STX +0.8% (light volume, upgraded to Buy from Hold at Deutsche Bank)
8:11 am Asia Entertainment misses by $0.04, beats on revs; Co reaffirmed rolling chip turnover and non-GAAP net income guidance (AERL) : Reports Q1 (Mar) earnings of $0.36 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.40; revenues fell 4.3% year/year to $64.4 mln vs the $58.36 mln consensus.
Outlook for 2013- reaffirms net income and rolling chip guidance
For the first three months of 2013, AERL's Rolling Chip Turnover was $4.08 bln (an average of $1.36 bln per month), down 24% year-over-year, compared to US$5.38 bln (an average of $1.79 bln per month) for the first three months of 2012. Win rate for the first three months of 2013 was 3.29%.
In view of the tightening of credit to junket agents, the co maintains its Rolling Chip Turnover guidance for its four existing VIP rooms in Macau of $1.5 bln per month in the aggregate (subject to monthly fluctuations), which equates to a total of $18 bln in the aggregate for full year 2013, which is comparable to 2012 results.
The co believes that for the remainder of 2013, all of its business will remain on a revenue sharing basis. The co maintains its Non-GAAP income guidance for the year ended Dec 31, 2013 of $60-75 million based on the current and expected performance of its existing four VIP gaming rooms in Macau, and does not take into consideration any possible future expansion or additional VIP gaming rooms.
8:11 am Polo Ralph Lauren beats by $0.11, misses on revs; guides Q1, FY14 net rev below consensus (RL) : Reports Q4 (Mar) earnings of $1.41 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $1.30; net rev rose 1.2% year/year to $1.64 bln vs the $1.7 bln consensus, reflecting strong retail segment expansion that was partially offset by lower wholesale segment sales. Ex-the impact of strategic decisions to discontinue American Living and store closures associated with the Company's Greater China network repositioning efforts, in addition to the net negative impact from foreign currency translation, net revenues increased ~4% in the fourth quarter. gross profit margin improved 220 basis points to 59.3%. The higher gross profit margin was primarily driven by lower input costs, beneficial channel and product mix and operational discipline.
The co currently expects consolidated net revenues for Fiscal 2014 to increase by 4-7% vs. consensus +10% (+4-7% to ~$7.22-7.43 bln vs. $7.63 bln consensus) including a 150 bps net negative impact from FX. Operating margin for FY14 is currently expected to be 25-75 bps below the prior year's record level due to the integration of certain formerly licensed merchandise categories and geographic regions to directly controlled operations, accelerated investment in the Company's long-term growth initiatives and unfavorable foreign currency effects. The full year Fiscal 2014 tax rate is estimated at 31%. Capital expenditures are planned at ~$350-$450 million in Fiscal 2014.
In Q1, the co expects consolidated net revenues to increase by a low-single-digit percentage (consensus +8.7%), including a 150 bps net negative impact from FX. Wholesale sales are expected to grow slightly faster than retail sales due to the transition of certain formerly licensed merchandise categories to directly controlled operations. Operating margin for Q1 is expected to be ~200-250 bps lower YoY due to the integration of newly assumed operations, the timing of investments to support the Company's strategic growth objectives and unfavorable foreign currency effects. The first quarter tax rate is estimated at 32%.
8:07 am Gordmans Stores beats by $0.05, beats on revs; guides Q2 EPS below consensus, revs below consensus (GMAN) : Reports Q1 (Apr) earnings of $0.17 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.12; revenues fell 1.9% year/year to $131.4 mln vs the $129.99 mln consensus. Co's EPS exceeded its prior guidance of $0.11-0.13.
Co issues downside guidance for Q2, sees EPS of $0.01-0.03 vs. $0.15 Capital IQ Consensus Estimate; sees Q2 revs of $135-137 mln vs. $138.78 mln Capital IQ Consensus Estimate and reflects a low single digit comparable store sales decrease.
With regard to EPS guidance, the co also expects continued pressure on gross profit margins related to inventory recalibration efforts as well as additional selling, general and administrative expenses related to advertising related to our loyalty program, consulting related to store productivity improvements, depreciation and pre-opening compared to the prior year, and therefore projects diluted earnings per share in the range of $0.01-0.03.
Commentary: "...The combination of the 10.5% comparable store sales decline we experienced in the first quarter and a lower gross profit margin resulting from additional markdowns to reduce inventory levels negatively impacted our first quarter operating results. However, our second quarter is off to a solid start and we believe that the growth initiatives that we have put in place will produce improved comparable store sales as the year progresses..."
8:06 am DISH Network Statement on SoftBank (SFTBF) and CFIUS; says 'we remain concerned, however, that these reported steps do not adequately protect our national security interests' (DISH) : Co responds to news reports regarding the Committee on Foreign Investment in the United States review of the proposed SoftBank-Sprint transaction.
Commentary: "If the news reports are accurate, SoftBank's agreement to an extraordinary board structure and the concerns of CFIUS with respect to the use of Chinese-manufactured equipment on a foreign-controlled Clearwire network, which reportedly could add as much as $1 billion to the cost of the proposed SoftBank-Sprint transaction, confirm the serious national security risks of SoftBank acquiring Sprint and its wireless and wireline assets of national strategic importance. We remain concerned, however, that these reported steps do not adequately protect our national security interests, especially with respect to Sprint's critical fiber backbone network and Sprint's extensive contracts to provide important telecommunications services for government, law enforcement and defense customers."
8:05 am PowerSecure increases ownership of growing solar and LED businesses to 100%; anticipates impact of acquisition will be modestly accretive to 2013 earnings (POWR) : Co announced that it has gained 100% ownership of its solar business with the purchase of the final 10% ownership stake from Southern Energy Management and also has gained 100% ownership of its IES LED lighting business with the purchase of the final 33% ownership interest from IES. In addition, PowerSecure has acquired Powerline EHV & Safety Training. The co completed these three transactions for ~ $1.3 million in cash and ~ $3.0 million in common stock, for a total aggregate value of ~ $4.3 million. "Given the momentum we are seeing, we anticipate the cumulative impact of these acquisitions will be modestly accretive to 2013 earnings."
8:04 am Polo Ralph Lauren sees Fy14 net rev growth of +4-7% vs. +10% consensus (RL) :
8:04 am Forest Labs provides update on succession planning; Howard Solomon to retire as CEO and President at end of 2013; will serve as chairman to 2014 AGM and then become Chairman Emeritus (FRX) : Co announced that Howard Solomon will retire as Chief Executive Officer and President, effective December 31, 2013. Subject to the same nominating and election processes annually as all directors, Mr. Solomon is expected to remain as Chairman through the 2014 Annual General Meeting, at which time another Chairman will be elected. Mr. Solomon will retain the title of Chairman Emeritus after the 2014 AGM and has agreed to serve as Senior Advisor to the Company following his retirement as CEO and President. Mr. Solomon has served as CEO since 1977, Chairman since 1998 and President since 2010.
As previously disclosed, an independent committee of Forest's Board has been engaged in a succession planning process, including evaluating internal and external candidates. With Mr. Solomon's retirement announcement, the Board has determined to bring the process to a close and expects to name a successor before the end of the year. The committee is being assisted by Spencer Stuart, a leading executive search firm.
8:04 am Halozyme Therapeutics names David A. Ramsay Chief Financial Officer (HALO) : Co announced the appointment of David A. Ramsay as Chief Financial Officer. Mr. Ramsay was most recently Vice President, Corporate Development at Halozyme. Mr. Ramsay replaces Kurt Gustafson who is leaving the company to pursue other opportunities.
8:03 am NII Holdings announces corporate governance changes; Chairman and CEO roles separated; Kevin Beebe appointed as Chairman (NIHD) : Co announced that its Board of Directors has approved changes pertaining to its corporate governance at meetings held in conjunction with its annual meeting of stockholders in Mexico City on May 22, 2013. After careful consideration, the Board determined that it was in the best interests of the Company to separate the positions of chairman of the Board and chief executive officer and has elected director Kevin Beebe to serve as its independent, non-executive chairman effective May 22, 2013. In addition, Ricardo Knoepfelmacher has been elected to NII's Board of Directors. Prior to his service as managing partner at Angra Partners, Knoepfelmacher served as chief executive officer of Brasil Telecom from 2005 to 2009.
8:03 am Stein Mart beats by $0.05, beats on revs (SMRT) : Reports Q1 (Apr) earnings of $0.33 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 3.8% year/year to $321.4 mln, in-line with its preannouncement on May 8.
"We ended the quarter strongly with an 8.0 percent comp sales increase in April and a positive comp for the quarter, despite a slow start caused by colder than normal weather and the Easter calendar shift," said Jay Stein, Chief Executive Officer. "Our increased sales and a higher gross profit rate leveraged against relatively flat expenses drove our substantially higher earnings."
8:02 am Polo Ralph Lauren sees Q1 net rev grwoth in low single digits vs. +8.7% consensus (RL) :
8:02 am SciQuest Board of Directors names Stephen Wiehe as Chairman (SQI) : Co announced that Stephen Wiehe has been elected chairman of the board of directors. Tim Buckley, the former COO of Red Hat (RHT), was also appointed as lead independent director.
8:02 am Biogen Idec appoints Spyros Artavanis-Tsakonas Chief Scientific Officer (BIIB) : Co announced that Spyros Artavanis-Tsakonas, Ph.D., has been named the company's Chief Scientific Officer (:CSO). Dr. Artavanis-Tsakonas had served as interim CSO while on sabbatical from Harvard Medical School. He will now continue in this role in a permanent capacity, and will also lead the company's research strategy, capabilities and discovery platforms.
Dr. Artavanis-Tsakonas will report to Doug Williams, Executive Vice President of Research and Development. He will continue to serve as a Professor of Cell Biology at Harvard Medical School, where he was the founding Director of the Developmental and Regenerative Biology graduate program.
7:53 am KeyCorp names Donald R. Kimble Chief Financial Officer effective June 3, 2013 (KEY) : During his nine year career at Huntington Bancshares (HBAN), Mr. Kimble served as Chief Financial Officer responsible for treasury, accounting, tax, financial planning and analysis, business segment financial support, investor relations and mergers and acquisitions.
7:48 am Kirklands Correction: Q2 EPS guidance calls for smaller than expcted net loss -- co beat Q2 ests, narrowed FY14 EPS and lowered FY14 rev guidance (KIRK) : Earlier we referred to Q2 EPS guidance that called for a smaller than expected net loss as downside when it should have been called upside. The numbers we posted were correct. The previous comemt has been rmvoed and should have read as follows:
Reports Q1 (Apr) earnings of $0.10 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.05; revenues rose 3.5% year/year to $101.2 mln vs the $100.93 mln consensus.
Co issues guidance for Q2, sees EPS of ($0.11) - ($0.08) vs. ($0.14) Capital IQ Consensus Estimate; sees Q2 revs of $97-98 mln vs. $98.52 mln Capital IQ Consensus Estimate.
Co issues guidance for FY14, narrows EPS to $0.75-0.80 from $0.70-0.85 vs. $0.79 Capital IQ Consensus Estimate; lowers FY14 revs growth to +3-5% to $461.4-470.4 from +5-7% to $470.4-479.4 mln vs. $476.50 mln Capital IQ Consensus Estimate; comps flat to a slight increase.
Comparable store sales, including e-commerce sales, for the first quarter of fiscal 2013 decreased 2.3% compared with a decrease of 1.2% in the prior-year quarter.
Kirkland's opened 1 store and closed 7 during the first quarter of fiscal 2013, bringing the total number of stores to 317 at quarter end.
"Although we had a slow start to February consistent with our cautious outlook for the first half of the year, we experienced an improvement in trends later in the quarter. The better sales and margin performance in the latter weeks of the quarter exceeded our expectations and has modestly improved our outlook. However, there is still much work to do in firmly establishing a positive merchandising trend as well as leveraging our ongoing investments in technology, growing e-commerce, improving traffic, focusing on tight expense controls and executing our new branding initiatives."
FY14 Guidance Metrics: This level of total sales performance implies comparable store sales results of flat to a slight increase for fiscal 2013. Based on the current outlook, inbound freight costs should be higher for the second quarter, but improve in the second half of the year offsetting the negative first half margin impact.
7:46 am On The Wires (:WIRES) :
- Level 3 Communications (LVLT) announced it is providing video broadcast services to enable FOX Network to deliver the live feed of the Union of European Football Associations' annual championship soccer final to viewers across the U.S.
- Flamel Technologies (FLML) has exercised its right to regain control of two drugs that use its Trigger Lock delivery technology that were formerly being developed in partnership with an undisclosed partner.
- SolarWinds (SWI) introduced new network route and multicast monitoring capabilities within its flagship network management product, SolarWinds Network Performance Monitor. Co also announced new improvements to its web-based IT help desk and asset management solution, SolarWinds Web Help Desk.
7:36 am Johnson & Johnson pharmaceuticals segment poised to continue driving growth with more than 10 potential new product filings by 2017 (JNJ) : At a meeting today with industry analysts, senior leaders from the Janssen Pharmaceutical of Johnson & Johnson (Janssen) announced they anticipate submitting more than 10 new product filings and more than 25 significant brand line extensions by 2017. The total global pharmaceuticals market is expected to grow about 4.5% annually and reach an approximate market size of $1.2 trillion by 2017, according to IMS Health, the independent analysis and market research service that tracks the industry. Among the top 10 global pharmaceutical companies, IMS Health also reports that the Pharmaceuticals business of Johnson & Johnson was the fastest growing in the U.S., Europe and Japan in 2012, with sales of $25.4 billion, an operational* increase of nearly 7% versus 2011. Strong sales growth in the segment continued in the first quarter of 2013, with worldwide sales of $6.8 billion, an operational* increase of over 11% versus the prior year. Emerging markets, including China, Brazil, Russia and India, comprised nearly 20% of worldwide pharmaceutical sales in the first quarter of 2013.
Late stage products Janssen plans to file by 2017 for regulatory approval, are aimed at addressing serious unmet needs. Some of these products include: simeprevir for Hepatitis C, which is filed in Japan, Europe and in the U.S., where it was recently granted Priority Review status by the Food and Drug Administration (:FDA); ibrutinib and daratumumab for the treatment of hematologic malignancies, which together have both received a record number of Breakthrough Therapy Designations by the FDA; sirukumab and guselkumab for important immune mediated diseases; a three-month formulation of INVEGA? SUSTENNA?/XEPLION?, with a potential to change the treatment paradigm for schizophrenia, and novel vaccines for treating influenza, rabies and polio.
7:36 am Equity Res prices offering of 15.068 mln of its common shares by Jupiter Enterprise, an indirect subsidiary of Lehman Brothers Holdings; price not disclosed (EQR) : The 15,068,000 common shares being offered are part of the 34,468,085 common shares issued to the selling shareholder in connection with Equity Residential's acquisition of a portion of the Archstone apartment community portfolio in February 2013.
7:35 am Bon-Ton Stores beats by $0.32, reports revs in-line; reaffirms FY14 EPS guidance; Q1 comps +1.2% YoY (BONT) : Reports Q1 (Apr) loss of $1.41 per share, $0.32 better than the Capital IQ Consensus Estimate of ($1.73); revenues rose 1.2% year/year to $661.9 mln vs the $667.21 mln consensus.
- Comparable store sales increased 1.2%.
- Gross margin rate increased 57 basis points to 34.8%, compared with 34.3% in the first quarter of fiscal 2012.
- Co reaffirms guidance for FY14, sees EPS of $0.40-1.00 vs. $0.73 Capital IQ Consensus Estimate.
- Co also reaffirms its Adjusted EBITDA in a range of $180-200 mln
- Sees CF in range of $20-40 mln
7:35 am Dollar Tree beats by $0.02, reports revs in-line; guides Q2 EPS, rev towards low end of expectations; raises FY14 EPS (below consensus), raises low end of revs (DLTR) : Reports Q1 (Apr) earnings of $0.59 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 8.2% year/year to $1.87 bln vs the $1.87 bln consensus; comps +2.1%.
Co issues guidance for Q2, sees EPS of $0.52-0.57 vs. $0.57 Capital IQ Consensus Estimate; sees Q2 revs of $1.81-1.86 bln vs. $1.86 bln Capital IQ Consensus; low single digit positive comps.
Co issues guidance for FY14, raises EPS to $2.61-2.77 from $2.54-2.74 vs. $2.79 Capital IQ Consensus; raises FY14 revs to $7.81-7.97 bln from $7.79-7.97 bln vs. $7.94 bln Capital IQ Consensus Estimate; low single digit positive comps.
7:35 am Perry Ellis beats by $0.03, misses on revs; reaffirms FY14 EPS in-line, revs in-line (PERY) : Reports Q1 (Apr) earnings of $0.62 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.59; revenues fell 1.2% year/year to $262.3 mln vs the $266.13 mln consensus.
Co reaffirms in-line guidance for FY14, sees EPS of $1.50-1.60, excluding non-recurring items, vs. $1.55 Capital IQ Consensus Estimate; reaffirms FY14 revs growth of 3-5%, which equates to ~$998.6 mln - $1.02 bln vs. $1.01 bln Capital IQ Consensus Estimate.
7:33 am AvalonBay prices secondary offering of 7.87 mln shares of its common stock by Jupiter Enterprise, an indirect subsidiary of Lehman Brothers Holdings, at $137.00 per share (AVB) :
7:31 am AES announces expiration and final results of its tender offer for its outstanding 7.75% senior notes due 2014 (AES) : Co commenced tender offers to purchase for cash, subject to certain terms and conditions set forth in the Offers to Purchase for Cash, as amended on May 14, 2013, and related Letter of Transmittal, certain series of its outstanding senior notes, including its 7.75% Senior Notes due 2014.
7:31 am Celgene announces U.S. FDA grants priority review for ABRAXANE sNDA in advanced pancreatic cancer (CELG) : Co announced that the FDA has assigned a Priority Review designation to the supplemental New Drug Application for the use of ABRAXANE in combination with gemcitabine for the first--line treatment of patients with advanced pancreatic cancer. The FDA grants Priority Review to medicines that, if approved, have the potential to offer significant improvement compared to marketed products or provide a treatment where no adequate therapy exists. The goal for completing a Priority Review is six months. The Prescription Drug User Fee Act date for the sNDA for ABRAXANE is set for September 21, 2013.
7:28 am Investors Seek Yen as Japanese Markets See Volatility: 10-yr: +14/32..1.996%..USD/JPY: 101.72..EUR/USD: 1.2882 (:SUMRX) : The Dollar Index has been offered throughout the entire overnight session, breaking back below the 84.00 level to its current 83.95. The selling comes after yesterday's gains fueled the best close for the Index in nearly three years.
- EURUSD is +30 pips at 1.2880 after a slew of mixed European Flash Manufacturing and Services PMI data. Eurozone, French, and German manufacturing numbers all topped estimates, but indicated contraction as their prints remained below the 50 mark. Meanwhile, services numbers were in-line to below estimates, and also remained below the 50 line. The 1.2800 support level managed to survive a test, as it has for much of the past week. ECB President Mario Draghi will speak this afternoon in London on "The Future of Europe in the Global Economy."
- GBPUSD is +35 pips at 1.5080 despite the mixed data. Britain's Second Estimate GDP printed an in-line 0.3% QoQ, but preliminary business investment (-0.4% QoQ actual v. 1.7% QoQ expected) fell well short of expectations. The 1.4900 area will be watched closely over the coming days.
- USDCHF is -110 pips at .9680 as action reverses all of yesterday's gains and then some. Traders are now monitoring the .9650 area with a breakdown setting up a test of important 1.0500 support. If tested, its ability to hold will dictate whether or not a test of parity is on the horizon.
- USDJPY is -135 pips at 101.80 as traders move out of the pair amid the volatility in Japanese markets. Overnight action saw the Nikkei plunge 7.3% and the 10-yr JGB yield spike to 1.00% (before easing to 0.84%), causing investors to move aggressively into yen. The pair hit a session low of 100.80, but has seen steady buying over the past couple of hours. Markets will be watching closely as Bank of Japan Governor Kuroda is set to speak in Tokyo this evening. Click here to see a 15 minute USDJPY chart.
- AUDUSD is +30 pips at .9720 as trade looks for just its second gain over the past fourteen sessions. Early weakness pushed the hard currency down to the key .9600 level, but that area was able to hold as buyers came in to defend support dating back to the fall of 2010. Data out overnight saw Australia's MI Inflation Expectations tick up to 2.3% (2.2% previous) and China's HSBC Flash Manufacturing PMI slide into contraction for the first time since October with a 49.6 print (50.5 expected, 50.4 previous). USDCNY climbed to 6.1346.
- USDCAD is -40 pips at 1.0330 as trade pulls back from yesterday's one-year high. The ability to hold the 1.0300 level will be important as it marks the breakout above the trendline off the November 2011 highs.
7:28 am S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -15.00. :
7:28 am European Markets : FTSE...6721.83...-118.30...-1.70%. DAX...8332.52...-198.70...-2.30%.
7:28 am Asian Markets : Nikkei...14483.98...-1143.30...-7.30%. Hang Seng...22669.68...-591.40...-2.50%.
7:25 am Blackstone Mortgage Trust priced upsized offering of 22.5 mln shares of its class A common stock at $25.50 per share (BXMT) : The offering was upsized from 16 mln shares to 22.5 mln shares.
7:23 am On The Wires (:WIRES) :
- Evolving Systems (EVOL) announced that the number of confirmed activations carried by the co's Dynamic SIM Allocation solution has now reached 140 mln SIM cards - nearly a 100% increase in a period of just over a year.
- NetSol Technologies (NTWK) has signed an agreement to implement NetSol Financial Suite's Credit Application Processing and Contract Management System modules with a multi-finance co in Southeast Asia. The new agreement is valued at more than $4 mln for the first phase of development and includes product licenses, business processes consulting fees and on-site implementation services.
7:22 am DSP Group issues 'setting the record straight' white paper on Starboard's May 13, 2013 presentation (DSPG) : Co said that it has filed the following White Paper with the SEC that sets the record straight on a number of factually inaccurate statements and misleading data points in Starboard's May 13, 2013 presentation. It states: 'We believe that Starboard's presentation filed on May 13, 2013 contained a large number of factually inaccurate statements and misleading data points in its attempt to gain support for its slate of hand-picked nominees to DSP Group's Board... Starboard's claims that the Company's operating performance has been "abysmal" are entirely false and ignore our recent operating success.... Our growth strategy is working although Starboard will not admit to this fact... Starboard claims that DSP Group's spending on R&D and acquisitions have "destroyed shareholder value." This claim also is false and, as we show below, they use inconsistent and incorrect data to try to make their point.... If Starboard was truly committed to ensuring that "alternative viewpoints are allowed to be introduced and properly considered in the DSP Group's boardroom," they would have accepted the Company's generous offer of two additional Board seats, giving them a total of four of the ten seats, along with significant committee representation, including two of four seats (including chairmanship) on the Compensation Committee and two of five seats (including chairmanship) of a proposed Strategic Committee."
7:20 am DSP Group: Starboard issued earlier open leeter to DSP shareholders; states 'recently announced corporate governance changes are reactionary and do not go far enough' (DSPG) : Starboard Value, one of the largest shareholders of DSP Group beneficially owning approximately 10.1% of its outstanding common stock, issued an open letter yesterday after the close to DSP shareholders following the co's recent announcement of proposed corporate governance changes. Letter states 'Earlier this morning, DSP announced its intent to declassify its Board of Directors (the "Board") beginning in 2014, its intent for Patrick Tanguy to replace Eliyahu Ayalon as non-executive Chairman, and its intent to adopt a stock ownership policy for members of the Board. While these actions appear to be a long overdue improvement in corporate governance, the manner in which they were announced clearly demonstrates a failure in corporate governance at DSP and is a cause for great concern.... So it appears that these changes, which have already been publicly announced, were not reviewed and formally approved by the full Board. To be clear, the selection of a new Chairman of the Board should be a decision of the full Board. A well functioning Board should meet and discuss significant changes in corporate governance policy and changes to the leadership of the Board.... As one of the largest shareholders of DSP, our interests are directly aligned with yours. We urge all shareholders to vote on the WHITE proxy card today to support the election of new, truly independent directors, who will represent all of our collective interests on the Board."
7:09 am Buckle misses by $0.04, misses on revs; Q1 comps +1.2% YoY (BKE) : Reports Q1 (Apr) earnings of $0.78 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.82; revenues rose 2.2% year/year to $269.7 mln vs the $272.81 mln consensus and in-line with co's pre-announcement on May 9.
Comparable store net sales for the 13-week period ended May 4, 2013 increased 1.2% from comparable store net sales for the prior year 13-week period ended May 5, 2012. Online sales (which are not included in comparable store sales) increased 6.0% to $20.9 mln for the 13-week period ended May 4, 2013, compared to net sales of $19.7 mln for the prior year 13-week period ended April 28, 2012.
7:06 am Quicksilver Resrcs launches $600 mln second priority senior secured term loan; commences tender offers and consent solicitation for its 7 1/8% senior subordinated notes due 2016, 11 3/4% senior notes due 2016 and 8 1/4% senior notes due 2015 (KWK) : Co announced that it is launching a loan syndication for a new $600 million senior secured second priority term loan facility maturing in 2019. There can be no assurance Quicksilver will receive commitments for the $600 million of the Second Priority Term Loan Facility or as to the terms of such facility. In addition, the closing of the Second Priority Term Loan Facility will be subject to customary conditions and there can be no assurance that the closing of the Second Priority Term Loan Facility will occur. Co also separately announced the commencement of cash tender offers relating to any and all of its $350 mln current outstanding principal amount of 7 1/8% Senior Subordinated Notes due 2016, its $590,620,000 current outstanding principal amount of 11 3/4% Senior Notes due 2016 and its $438 mln current outstanding principal amount of 8 1/4% Senior Notes due 2015 and its solicitation of consents from the holders of the Notes to adopt certain amendments to the indentures governing the Notes.
Co is currently contemplating an offering of senior unsecured notes in an aggregate principal amount up to $675 million and an offering of senior second priority secured notes in an aggregate principal amount up to $200 million, subject to market conditions, in addition to the Second Priority Term Loan Facility.
7:06 am Children's Place beats by $0.22, beats on revs; guides Q2 EPS above consensus; raises FY14 EPS guidance (PLCE) : Reports Q1 (Apr) earnings of $0.83 per share, $0.22 better than the Capital IQ Consensus Estimate of $0.61 ($0.60-0.65 guidance); revenues fell 3.5% year/year to $423.2 mln vs the $416.15 mln consensus; comps -5.5%.
Co issues upside guidance for Q2, sees EPS of ($0.50)-(0.55) vs. ($0.60) Capital IQ Consensus Estimate.
Co issues upside guidance for FY14, raises EPS to $3.05-3.20 from $2.90-3.10 vs. $2.99 Capital IQ Consensus.
"After a difficult start to the quarter, April sales improved significantly with the return of more seasonable weather. Our expenses throughout the quarter were well-controlled. We exceeded our earnings forecast for the first quarter and we are raising guidance for the year to reflect these improved results."
The co repurchased 512 thousand shares for ~$24.2 million during the first quarter of 2013. At the end of the quarter, $56.2 million of the $100 million share repurchase program authorized in November 2012 remained available for future share repurchases.
7:06 am Quicksilver Resrcs commences consent solicitation for its 9 1/8% senior notes due 2019 (KWK) : Co announced the commencement of a solicitation of consents upon the terms and subject to the conditions set forth in a Consent Solicitation Statement and the accompanying Form of Consent, each dated as of May 23, 2013, to certain proposed amendments to the indenture, dated as of December 22, 2005, among Quicksilver, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, as trustee, as supplemented by an Eighth Supplemental Indenture dated as of August 14, 2009, a Twelfth Supplemental Indenture dated as of December 23, 2011, a Sixteenth Supplemental Indenture, dated as of February 28, 2012 and a Twentieth Supplemental Indenture dated as of June 13, 2012, governing its 9 1/8% Senior Notes due 2019. The Proposed Amendments would amend the Indenture to permit Quicksilver to refinance its 7 1/8% Senior Subordinated Notes due 2016, its 11 3/4% Senior Notes due 2016 and its 8 1/4% Senior Notes due 2015 by incurring indebtedness that ranks equally in right of payment to, but with longer maturities than, the 2019 Senior Notes, to permit any such refinancing of the 2016 Subordinated Notes prior to their maturity to be excluded from the covenant regarding limitation on restricted payments in the Indenture and to give Quicksilver greater flexibility to incur secured and unsecured indebtedness pursuant to offerings of debt securities in connection with such refinancing or otherwise.
7:04 am Columbus McKinnon beats by $0.01, misses on revs (CMCO) : Reports Q4 (Mar) earnings of $0.37 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.36; revenues fell 9.4% year/year to $144.6 mln vs the $150.63 mln consensus. Co's EPS excluded reversed $49.2 mln tax valuation allowance, favorably affected EPS; GAAP Q4 earnings were $2.64 per diluted share.
- Q4 operating margin expanded 150 basis points to 10%
- Both U.S. and Eurozone capacity utilization are leading market indicators for the Co.
- U.S. industrial capacity utilization was 77.1% in March 2013, up from 76.2% in March 2012, and slightly improved from 77.0% in December 2012.
- Eurozone capacity utilization was 77.2% in the quarter ended March 31, 2013, down from 79.9% during the quarter ended March 31, 2012, but improved from 76.9% in the quarter ended December 31, 2012.
- The European indicator reflects the modest recession being experienced in the Eurozone, while the U.S. indicator demonstrates moderate economic growth.
- The Co's sales tend to lag these indicators by one to two quarters.
7:03 am Ritchie Bros. to sell more than 70 trucks for Walmart (WMT) at unreserved public auction in Chicago, IL on May 30 (RBA) : Co will sell more than 1,400 equipment items and trucks at an unreserved public auction in Chicago, Illinois on May 30, 2013.
7:02 am Omeros announces its IND to evaluate OMS824 in Huntington's disease has been cleared by the FDA (OMER) : Co announced that its Investigational New Drug Application (IND) to evaluate OMS824 in Huntington's disease has been cleared by the FDA. OMS824 selectively inhibits phosphodiesterase 10 (PDE10), an enzyme expressed in areas of the brain linked to a wide range of diseases that affect cognition, including Huntington's disease and schizophrenia. OMS824 has shown promising results in animal models directly relevant to Huntington's disease and, as previously announced, OMS824 was well tolerated and exhibited favorable pharmacokinetic properties in a Phase 1 clinical program. Omeros plans to advance OMS824 into Phase 2 clinical trials for Huntington's disease next quarter and for schizophrenia later this year, the OMS824 IND for use in patients with schizophrenia having already been cleared by the FDA.
6:44 am Hormel Foods misses by $0.03, misses on revs; reaffirms FY13 EPS guidance (HRL) : Reports Q2 (Apr) earnings of $0.46 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.49; revenues rose 6.9% year/year to $2.15 bln vs the $2.19 bln consensus. Co reaffirms guidance for FY13, sees EPS of $1.93-2.03 vs. $2.00 Capital IQ Consensus Estimate.
- Volume up 4%
- Grocery Products operating profit up 10%; volume up 47% (volume up 3% excluding sales of Don Miguel products and SKIPPY peanut butter); dollar sales up 49% (sales up 4% excluding sales of Don Miguel products and SKIPPY peanut butter)
- Refrigerated Foods operating profit up 3%; volume down 4%; dollar sales down 2%
- Jennie-O Turkey Store operating profit down 26%; volume down 4%; dollar sales down 2%
- Specialty Foods operating profit up 24%; volume up 4%; dollar sales up 7%
- International & Other (formerly All Other) operating profit up 21%; volume up 11% (volume down 2% excluding sales of SKIPPY peanut butter); dollar sales up 21% (sales up 4% excluding sales of SKIPPY peanut butter)
6:42 am On The Wires (:WIRES) :
- Medtronic (MDT) has finished randomizing Symplicity HTN-3, the co's pivotal U.S. clinical trial of the Symplicity renal denervation system for treatment-resistant hypertension.
- Amazon (AMZN) announced that Kindle Fire HD and Kindle Fire HD 8.9" are now available to customers in over 170 countries and territories around the world for pre-order through Amazon.com. Co also announced that the Amazon Appstore is now available to millions of customers in nearly 200 countries.
- SEOptimise, a UK search marketing agency, has selected Marin Software (MRIN) as its exclusive paid search technology partner.
- Manpower (MAN) announced it is differentiating and evolving its model to deliver faster, higher quality matches to employers and job seekers.
- OncoGenex Pharmaceuticals (OGXI) announced plans for the initiation of the Cedar clinical trial, an investigator-sponsored, randomized, open-label Phase 2 trial evaluating OGX-427 in previously untreated patients with advanced squamous cell lung cancer.
- RRsat Global Communications Network (RRST) announced a long term agreement to enable Word Network, an African-American religious network in the US, to reach millions of viewers in Australia, New Zealand and the Arab world.
6:41 am Signet Jewelers beats by $0.02, misses on revs; guides Q2 EPS in-line; Q1 comps +6.4% (SIG) : Reports Q1 (Apr) earnings of $1.13 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.11; revenues rose 10.3% year/year to $993.6 mln vs the $1017.25 mln consensus. Q1 Same Store Sales Increase 6.4%.
Co issues in-line guidance for Q2, sees EPS of $0.85-0.90 vs. $0.87 Capital IQ Consensus Estimate. Co sees Q2 Same store sales to increase in the low-to-mid single-digit range.
"We delivered an outstanding first quarter with increases of 6.4% in same store sales and 17.7% in EPS. Our US division led our performance, generating same store sales increases of 10.2% at Kay and 6.0% at Jared. I would like to thank all Signet associates for their contributions to these results."
As referenced in the 8-K filing on January 15, 2013, the Company continues to expect the shift of Mother's Day sales this year partly into the first quarter to impact second quarter sales and earnings performance. In addition, integration costs and the seasonality of the Company's newly acquired Ultra Stores are expected to be dilutive to second quarter EPS. The Company continues to expect the integration of Ultra store systems and conversion to Kay outlets to occur as planned in the second quarter. Signet continues to expect Ultra to contribute positively to performance by the fourth quarter.
6:40 am Toronto-Dominion Bank reports EPS in-line, beats on revs; announces ~CAD$1 bln buyback (TD) : Reports Q2 (Apr) earnings of CAD$1.90 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of CAD$1.90; revenues rose 4.3% year/year to CAD$6 bln vs the CAD$5.93 bln consensus.
TD's Common Equity Tier 1 ratio on a Basel III fully phased-in basis was 8.8%, having absorbed the Target U.S. credit card and Epoch acquisitions in the quarter. In view of our demonstrated ability to generate capital, TD is announcing today a 12 million share buyback program which translates to roughly $1 billion in capital.
"We feel positive about these results in the context of a challenging operating environment. We remain confident that our customer-focused, retail-driven business model will help us manage through a period of slower growth and low interest rates."
6:33 am Elan: Royalty Pharma reduces acceptance condition to 50% plus one share (ELN) : Echo Pharma Acquisition announced that it has committed to waive down the Acceptance Threshold from 90% to 50% of Maximum Elan Shares Affected plus one Elan Share in accordance with the terms of the Revised Offer Document issued today. In a letter sent to Elan Stockholders today, Royalty Pharma outlined and reiterated the key points of its Increased Offer:
- The Increased Offer of $12.50 per Elan Share in cash is fully financed and is not conditional on due diligence;
- The Increased Offer is conditional on Elan Stockholders voting against the Theravance Transaction and all transactions announced by Elan on May 20, 2013 that are put to a shareholder vote; and
- Royalty Pharma has committed to waive the Acceptance Threshold from 90 percent to 50 percent of Maximum Shares Affected plus one Elan Share in accordance with the Revised Offer Document.
6:32 am Bloomin' Brands prices secondary offering of 19 mln shares of common stock by certain stockholders at $21.50 per share (BLMN) :
6:31 am Vivus: First Manhattan adds Alex Denner to Vivus Board slate; Denner's Sarissa Capital Management owns 2 mln Vivus shares (VVUS) : First Manhattan, an owner-managed and operated investment advisory firm and the beneficial holder of ~ 9.9% of the outstanding shares of VIVUS, announced that in response to Vivus' recent expansions of the Board it has increased its slate of director nominees to nine, adding Alex Denner to FMC's two previously announced additional director nominees, Dr. Rolf Bass and Melvin Keating, for election to the Board at Vivus' annual meeting of shareholders on July 15, 2013. Dr. Denner is the CIO and Founding Partner of Sarissa Capital Management. Sarissa Capital beneficially owns ~ 2 mln shares, or ~ 2% of Vivus' outstanding stock. FMC and its director nominees beneficially own a total of ~ 12 mln shares, or 11.9% of Vivus, in the aggregate.
6:27 am Toronto-Dominion Bank: TD Bank Group announces intention to repurchase for cancellation up to 12 mln of its common shares (TD) : TD Bank Group announced that, subject to the approval of the Office of the Superintendent of Financial Institutions Canada and the Toronto Stock Exchange, it intends to launch a normal course issuer bid through the facilities of the TSX as well as through other designated exchanges and published markets in Canada to repurchase up to 12 million of its common shares, representing ~ 1.3% of the common shares currently issued and outstanding. TD may commence purchases after the TSX has accepted the notice of intention. TD anticipates being in a position to repurchase shares under the bid by mid to late June 2013, continuing for up to one year.
6:05 am InspireMD's MGuard Embolic Protection Stent shows lower mortality rate in STEMI patients at six months compared to control group (NSPR) : Co announced new 6-month results from the MASTER (MGuard for Acute ST Elevation Reperfusion) trial demonstrating that the MGuard Embolic Protection Stent (EPS) outperformed bare metal and drug eluting stents in all-cause mortality in ST segment elevation myocardial infarction (:STEMI) patients. Results from the trial were presented at the InspireMD STEMI Symposium at EuroPCR, the official annual meeting of the European Association for Percutaneous Cardiovascular Interventions (:EAPCI) taking place in Paris from May 21-24, 2013. The MASTER trial achieved its primary endpoint (p value = 0.008), in complete ST-segment resolution at 60-90 min post-procedure (a strong predictor of mortality). Secondary endpoint clinical outcomes continue to show a lower mortality rate with MGuard EPS compared to control (0.5% vs. 2.8%, P=0.06) at 6 months. These findings corroborate the previously announced 30-day results showing that all-cause mortality with MGuard EPS was lower than bare metal and drug eluting stents used as a control (0% vs. 1.9%, P=0.06).
4:35 am Volcano provides preliminary results from the ADVISE II study and inclusion in the SYNTAX2 trial during hot line late breaking clinical trial sessions (VOLC) : Co announces preliminary results from the ADVISE II trial during the hot line late breaking clinical trial session at EuroPCR 2013. These prospective results confirm prior retrospective publications, and demonstrate the clinical usefulness of an iFR?/Fractional Flow Reserve Hybrid approach to simplify lesion assessment and to save the use of hyperemic drugs in a significant number of patients. It was also announced that this Hybrid iFR/FFR strategy, along with intravascular ultrasound guidance, will be used in the multi-center SYNTAX2 trial in Europe starting later this year.
4:31 am St. Jude Medical one year data from study demonstrates safe, rapid and sustained blood pressure reduction with EnligHTN Renal Denervation Technology (STJ) : Co announces that its EnligHTN Multi-Electrode Renal Denervation System provides a safe, rapid and sustained reduction in blood pressure measurements after one year. One Year
- An average systolic blood pressure reduction of 27 mmHg points was reported
- 80% of patients responded to the therapy defined as a blood pressure reduction of at least 10 mmHg when measured during an office visit
- The longer-term safety profile for renal denervation was supported by showing no significant changes in kidney function
3:57 am Medtronic CoreValve System gains first approval for transcatheter valve-in-valve procedures (MDT) : Co announces it has received Conformit? Europ?enne Mark for valve-in-valve procedures using the CoreValve and CoreValve? Evolut(TM) transcatheter aortic valve implantation systems in degenerated bioprosthetic surgical aortic valves. This is the first ever regulatory approval for VIV procedures, which provide a minimally invasive treatment option for patients whose surgical aortic valves have degenerated, and who are at extreme or high risk for surgery and would otherwise go untreated. The CoreValve VIV procedures are not approved in the United States.
Results from the largest global VIV registry, published in Circulation in November showed the VIV approach resulted in considerable hemodynamic improvements, including a decrease in valve gradients (blood flow resistance). Positive procedural outcomes were maintained at 1-year follow-up (with 89% survival at one year), which was comparable with other non-VIV TAVI studies.
2:37 am On The Wires (:WIRES) :
- Waterfund LLC and IBM (IBM) announced that they have signed an agreement with the Ministry of Water and Environment of the Republic of Uganda that makes the country the first in Africa to become a member of the pioneering Water Cost Index.
- HP (HPQ) announced the HP ENVY Rove20 mobile All-in-One PC, the company's first mobile All-in-One PC, which frees the desktop PC from the desk with a built-in battery, unique design and advanced touch technology. HP also announced new consumer notebooks, all-in-one PCs and printers
- AMD (AMD) launched three new additions to its 2013 A-Series and E-Series Mobile Accelerated Processing Unit lineup delivering solutions ideally positioned to address today's evolving PC market with dramatically increased performance and power efficiency, as well as a portfolio of unique user experiences, and superior gaming and graphics
- Technip (TKPPY) was awarded by ADMA-OPCO(1) a lump-sum turnkey contract for the engineering, procurement, construction, pre-commissioning, commissioning and start-up assistance for flares modification and revamp project on Das Island. Technip's operating center in Abu Dhabi will execute the project which is scheduled for completion in the first half of 2015.
2:26 am U.S. Equity futures dropping sharply in recent minutes... Now down 1.07% :
2:13 am Medtronic's In.Pact Falcon Drug-Eluting Balloon yields positive outcomes in small coronary arteries (MDT) : Co reports One-year data from an Italian multicenter randomized controlled trial of the IN.PACT Falcon drug-eluting balloon demonstrating positive and durable clinical results with the novel angioplasty device in the treatment of stenotic de novo lesions in small coronary arteries,
The new data come from the BELLO (Balloon Elution and Late Loss Optimization) study, which enrolled 182 patients across 15 hospitals in Italy to evaluate the safety and effectiveness of two medical devices: Medtronic's IN.PACT Falcondrug- eluting balloon and the Taxus drug-eluting stent from Boston Scientific (BSX).
Nearly two-thirds (64.9%) of the vessels treated in the BELLO study with the drug-eluting balloon were smaller than 2.25mm in diameter, for which no drug- eluting stent is currently available. ============The previously presented six-month angiographic outcomes of the BELLO study favored patients treated with the drug-eluting balloon. The study met its primary endpoint, late lumen loss at six months, with statistical significance showing superiority of the drug-eluting balloon over the drug-eluting stent.
Building on these data, the latest results from the BELLO study continue to demonstrate favorable outcomes for the IN.PACT Falcon drug-eluting balloon.
2:09 am Nordion enters into agreement to divest Targeted Therapies business to BTG plc (NDZ) : Co announces it has entered into an agreement to divest its Targeted Therapies business to BTG plc, an international specialist healthcare company based in London, for a cash purchase price of $200 mln. Net of cash taxes and transaction costs, Nordion expects to realize ~$185 mln on closing. The transaction is anticipated to be completed by the end of June 2013.
2:00 am SunPower prices $300 mln of its 0.75% Senior Convertible Debentures due 2018 (SPWR) :
1:55 am Morgans Hotel Group: OTK Associates mails definitive proxy statement and sends letter to Morgans Hotel Group stockholders (MHGC) : OTK Associates, the largest shareholder of Morgans Hotel Group with 13.9% of the outstanding common stock of the company, announces that it filed definitive proxy materials with the Securities and Exchange Commission in connection with OTK's seven nominees for election to the board of directors of Morgans at its upcoming annual meeting of stockholders on June 14, 2013.
Additionally, OTK mailed a letter to Morgans stockholders highlighting the company's poor performance, lack of independence, costly transactions and clear need to improve management and board oversight. In the letter, OTK urges stockholders to vote the GOLD proxy card for its seven board nominees, who possess the significant lodging industry expertise, capital markets experience and hotel operating acumen necessary to reposition the company as a leading public boutique hotel platform.
Highlights of the letter include OTK's take on "Morgans Hotel Group's disregard for stockholder rights, costly related party transactions, poor operating performance and clear need for a reconstituted board."
1:48 am Oaktree Capital prices 7 mln shares at $53.50 per share (OAK) :
1:45 am Kingsway Fin acquires HVAC warranty business; accretive to cash flows (KFS) : Co announces it has finalized the purchase of certain tangible and intangible assets of Trinity WarrantyCo. Trinity, based in
1:42 am Repros Therapeutics: FDA recommends running Phase 2b Trial of Proellex-V in the treatment of severe menstrual bleeding associated with uterine fibroids (RPRX) : Co announces it has met with the FDA regarding the clinical development of Proellex-V, the vaginally administered product, in the treatment of uterine fibroids. The FDA recommended that a Phase 2b study should be conducted as a prelude to the Phase 3 program. During the meeting, Repros and the FDA agreed that:
- The primary indication and label for Proellex-V should be treatment of severe menstrual bleeding associated with uterine fibroids. To this end, the Pictorial Blood Loss Assessment was identified as the key primary endpoint;
- If the Company proposes a label that includes a claim based on patient reported outcome, such as bulk symptoms or quality of life, the PRO must be validated before the start of Phase 3; and
- The FDA will review the protocol prior to study initiation.
1:36 am Japan's Nikkei average in bit of a crash mode... Now down 7.9% off early highs in last few hours :
1:36 am Laclede Group prices 8.7 mln shares of common stock at $44.50 per share (LG) :
1:31 am Commercial Vehicle Group appoints Rich Lavin as Pres and CEO (CVGI) : Co announces that that Richard Lavin has been appointed President and Chief Executive Officer, effective May 28, 2013. Lavin comes to CVG with 28 years of global experience with Caterpillar Inc., most recently as Group President of Construction Industries and Growth Markets.