6:43 pm Winnebago Inds announces it has entered into a licensing agreement with Australian-owned Winnebago RV Pty Ltd (WGO) : Co announced it has entered into a licensing agreement with Australian-owned Winnebago RV Pty Ltd, a wholly owned subsidiary of Apollo, allowing Apollo to use certain of Winnebago's trademarks on motorhomes, campervans and caravans across Australia and New Zealand. Winnebago RV Pty Ltd also entered into a distribution agreement with Winnebago of Indiana, LLC, an Iowa, USA limited liability company and a wholly owned subsidiary of Winnebago Industries, Inc., for the distribution of caravans manufactured by Winnebago of Indiana, LLC.
6:34 pm DCP Midstream increases quarterly distribution 1.7% to $0.7575 from $0.745 per unit (DPM) :
6:19 pm PGT Inc. to acquire CGI Windows & Doors Holdings in transaction valued at ~$111 mln; expected to be accretive in 2015 (PGTI) : Co announced that it has entered into a definitive agreement with CGI Windows & Doors Holdings pursuant to which CGI will become a wholly owned subsidiary of PGT. The transaction, valued at approximately $111 million, is consistent with PGT's plan to grow strategically while contributing to earnings growth through targeted acquisitions of complementary specialty products. The acquisition is expected to be accretive in 2015. Subject to customary closing conditions, the transaction is expected to close in September.
6:14 pm Kilroy Realty beats by $0.03, beats on revs (KRC) : Reports Q2 (Jun) funds from operations of $0.72 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.69; revenues rose 3.8% year/year to $129.19 mln vs the $123.94 mln consensus.
- At June 30, 2014, KRC's stabilized portfolio encompassed approximately 13.2 million square feet of office space located in Los Angeles, Orange County, San Diego, the San Francisco Bay Area and greater Seattle.
- The portfolio was 93.6% occupied at June 30, 2014, compared to 92.4% at March 31, 2014 and 90.7% at June 30, 2013.
- During the second quarter, the company signed new or renewing leases on 429,331 square feet of space in the stabilized portfolio. At June 30, 2014, the company's stabilized portfolio was 95.7% leased.
6:11 pm Silicon Motion beats by $0.05, beats on revs; guides Q3 revs above consensus; guides FY14 revs above consensus (SIMO) : Reports Q2 (Jun) earnings of $0.41 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.36; revenues rose 19.0% year/year to $69.41 mln vs the $65.28 mln consensus.
- Gross margin increased to 52.2% from 48.6% in prior quarter
Co issues upside guidance for FY14, sees FY14 revs of +22-27% (~$274.9-286.1 mln, raised from prior guidance of +5-15%) vs. $262.85 mln Capital IQ Consensus Estimate. Sees non-GAAP gross margin of 49.5-51.5%
6:06 pm Seaspan misses by $0.02, reports revs in-line (SSW) : Reports Q2 (Jun) earnings of $0.19 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.21; revenues rose 3.6% year/year to $173.87 mln vs the $174.8 mln consensus.
- Achieved vessel utilization of 99.3% and 99.1% for the three and six months ended June 30, 2014, respectively, or 99.3% and 99.5% if the impact of off-charter days is excluded.
- Accepted delivery of two vessels during the quarter, bringing Seaspan's operating fleet to a total of 74 vessels at June 30, 2014.
5:51 pm Gentiva Health Svcs: Kindred Healthcare (KND) announces expiration of $16 per share tender offer for Gentiva (GTIV) : Kindred Healthcare (KND) announced the expiration of its amended tender offer to purchase 14.9% of the outstanding shares of Gentiva Health Services (GTIV) for $16.00 per share in cash. At the expiration of the offer, certain conditions of the offer had not been satisfied and Kindred had not waived those conditions. Accordingly, no shares of common stock of Gentiva were purchased by Kindred pursuant to the offer, and all tendered shares will be returned promptly.
Kindred is prepared to enter into appropriate confidentiality and standstill agreements with Gentiva in order to facilitate discussions regarding the proposed combination of Kindred and Gentiva.
5:41 pm Dreamworks Animation: Ann Daly elevated to President; Mark Zoradi joins as Chief Operating Officer (DWA) : Co announced it is expanding its executive leadership team to best execute the business' growth strategy. Former Disney exec Mark Zoradi will join the DreamWorks Animation as COO, elevating Ann Daly to President of the company; Lew Coleman will assume the role of Vice-Chairman, in addition to his current roles of Chief Financial Officer and Acting Chief Accounting Officer.
5:29 pm Eastman beats by $0.08, slightly misses on revs; reaffirms FY14 EPS guidance (EMN) : Reports Q2 (Jun) earnings of $1.92 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $1.84; revenues rose 0.8% year/year to $2.46 bln vs the $2.5 bln consensus.
Co reaffirms guidance for FY14, sees EPS of $6.70-7.00, excluding non-recurring items, vs. $6.94 Capital IQ Consensus Estimate.
5:13 pm Owens & Minor reports President & COO James Bierman named President & CEO (OMI) :
- Co announced that its Board of Directors has named President & Chief Operating Officer James L. Bierman to serve as President & Chief Executive Officer and appointed him as a director of the company, effective September 1, 2014
- Craig R. Smith currently Chairman & Chief Executive Officer, will continue to serve the company in the role of Executive Chairman. Bierman has served as President and Chief Operating Officer since 2013.
- Prior to that, he was Executive Vice President and Chief Operating Officer and Executive Vice President and Chief Financial Officer.
- He joined Owens & Minor in 2007 as Senior Vice President & Chief Financial Officer. He previously held senior positions at Quintiles Transnational and was a 22 year veteran of Arthur Andersen, where he was a partner for 10 years.
5:11 pm Owens & Minor misses by $0.06, beats on revs; lowers FY14 EPS guidance below consensus, reaffirms FY14 revs guidance (OMI) : Reports Q2 (Jun) earnings of $0.40 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.46; revenues rose 3.1% year/year to $2.31 bln vs the $2.27 bln consensus.
Co issues mixed guidance for FY14, sees EPS of $1.80-1.90, excluding non-recurring items, (lowered from $1.95-2.05) vs. $1.98 Capital IQ Consensus Estimate; sees FY14 rev growth to exceed +2% (calcs to ~$9.25 bln) vs. $9.23 bln Capital IQ Consensus Estimate.
- "While second quarter results were impacted by many of the same trends that we saw earlier in the year, we are confident that the deliberate actions we are taking to on-board new customers and realign our platforms and teams in the U.S. and Europe will drive performance in the second half of 2014."
5:09 pm American Fincl beats by $0.12, beats on revs; reaffirms FY14 EPS guidance (AFG) : Reports Q2 (Jun) earnings of $1.07 per share, $0.12 better than the Capital IQ Consensus Estimate of $0.95; P&C net earned premiums rose 31.3% year/year to $931 mln.
- Co reaffirms guidance for FY14, sees EPS of $4.50-4.90 vs. $4.74 Capital IQ Consensus Estimate.
- Book value per share, excluding appropriated retained earnings and unrealized gains on fixed maturities, increased by $1.16 to $47.95 per share during the second quarter of 2014.
- Annualized return on equity was 10.3% and 11.5% for the second quarters of 2014 and 2013, respectively.
5:07 pm Vascular Solutions comments on Justice Department press release concerning qui tam lawsuit settlement agreement: 'An agreement to settle this lawsuit was previously reached on January 22, 2014 and previously disclosed in the Company's public filings' (VASC) : In response to a press release issued today by the Department of Justice concerning the settlement of a qui tam lawsuit, Vascular Solutions (VASC) issued the following comment:
- "An agreement to settle this lawsuit was previously reached on January 22, 2014 and previously disclosed in the Company's public filings, with the only event occurring today being the long-delayed signing of the formal settlement agreement. The terms of the settlement are that the Company will make a payment of $520,000, the Company will make no admission of fault or liability, and the U.S. Attorneys' Office will dismiss the civil lawsuit with prejudice and release all civil claims brought against the company in the civil lawsuit. The press release issued today by the Department of Justice contains numerous allegations which the Company continues to deny."
5:05 pm TE Connectivity prices $1 bln of senior notes (TEL) : Co announced that its wholly-owned subsidiary, Tyco Electronics Group S.A., has priced an offering of:
- $500 million aggregate principal amount of its floating rate senior notes due 2016;
- $250 million aggregate principal amount of its 2.350% senior notes due 2019; and
- $250 million aggregate principal amount of its 3.450% senior notes due 2024.
5:04 pm Range Resources misses by $0.05, reports revs in-line (RRC) : Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of $0.41; revenues rose 9.1% year/year to $477.52 mln vs the $480.92 mln consensus.
- Production volumes reached a record high, averaging 1,105 Mmcfe per day, a 21% increase over the prior-year quarter.
- Unit costs declined $0.41 per mcfe or 11% compared to the prior-year quarter.
- Production growth for 2014 is now targeted at 25% year-over-year. Average daily production for the third quarter is expected to be approximately 1.20 Bcfe per day, with 30% liquids and fourth quarter production is expected to be approximately 1.35 Bcfe per day, with 30% liquids.
5:03 pm Masco beats by $0.04, beats on revs (MAS) : Reports Q2 (Jun) earnings of $0.32 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 9.5% year/year to $2.3 bln vs the $2.26 bln consensus.
- North American sales increased 4 percent and international sales increased 9 percent in U.S. dollars and 2 percent in local currency
- Gross margins improved to 29.2 percent compared to 28.9 percent
4:56 pm Kadant authroizes additional $20 mln share repurchase (KAI) : Co announced today that its board of directors has authorized the repurchase of up to an additional $20 million of its equity securities effective July 28, 2014 through July 28, 2015.
- Through July 28, 2014, under the existing $20 million authorization that will expire on November 8, 2014, the Company has repurchased 355,135 shares of its common stock for an aggregate purchase price of approximately $13.1 million, or $36.99 per share, leaving $6.9 million remaining on this authorization.
4:45 pm Silicon Image appoints Raymond Cook as Chief Financial Officer, effective July 28, 2014 (SIMG) : Co announced the appointment of Raymond Cook as Chief Financial Officer effective July 28, 2014. Mr. Cook joins Silicon Image from STEC (recently acquired by HGST, a wholly owned subsidiary of Western Digital) where he served as Executive Vice President and Chief Financial Officer for the last five years.
4:40 pm Herbalife misses by $0.02, misses on revs; guides Q3 EPS in-line; guides FY14 EPS in-line (HLF) : Reports Q2 (Jun) earnings of $1.55 per share, $0.02 worse than the Capital IQ Consensus Estimate of $1.57; revenues rose 7.1% year/year to $1.31 bln vs the $1.36 bln consensus.
- North America- Volume Points 335.8 -1% y/y; Average Active Sales Leaders 75K, +5%
- Asia Pacific- Volume Points 320.2, +1% y/y; Average Active Sales Leaders 75K, +6%
- EMEA- Volume Points 218.8, +18% y/y; Average Active Sales Leaders 57K, 18%
- Mexico- Volume Points 231.1, +5% y/y; Average Active Sales Leaders 65K, +3%
- South & Central America- Volume Points 206.3, -7% y/y; Average Active Sales Leaders 62K, +14%
- China- Volume Points 118.5, +38% y/y; Average Active Sales Leaders 19K, +3%
- HLF sees FY14 Volume Point Growth of 6.0 to 8.0%, Prior 8-10%; Lowers Net Sales Growth in the range of 8.5-10.5% (approx $5.24-5.33 bln, Capital IQ consensus $5.378 bln), Prior 10-12%.
4:36 pm NBT Bancorp Q2 EPS of $0.43 vs $0.41 Capital IQ Consensus; NII was $62.6 mln, up 1.5% y/y (NBTB) :
4:35 pm Targacept to discontinue TC-5214 overactive bladder program; TC-5214 demonstrated mixed results on the co-primary endpoints by providing a statistically significant reduction i(shares halted) (TRGT) :
- Co announced top-line results from a Phase 2b clinical trial of TC-5214 as a treatment for overactive bladder. In the trial, the high dose of TC-5214 demonstrated mixed results on the co-primary endpoints by providing a statistically significant reduction in micturition frequency and an improvement that did not reach statistical significance on episodes of urinary incontinence per 24 hours, after 12 weeks of treatment.
- As a consequence of these results, Targacept is discontinuing further development of TC-5214 in OAB. In this trial, TC-5214 was considered generally safe and well tolerated. However, there was a placebo corrected 15.1% rate of constipation and a 5.9% rate of urinary tract infection in the high dose group. Analyses of the full dataset from the trial are ongoing and Targacept plans to publish more detailed results.
- "As part of our scenario planning over the past twelve months, we have considered a broad range of options for the optimal use of our resources, including the pursuit of non-nicotinic opportunities. In the coming months, Targacept will be continuing to carefully evaluate those portfolio options that we believe have the potential both to make a significant difference in patients' lives and provide meaningful upside for our stakeholders. We will be holding a conference call in conjunction with our quarterly earnings release on August 6, 2014."
4:34 pm Darden Restaurants Board to nominate nine of 12 Director Candidates for election at 2014 Annual Meeting of Shareholders; Darden remains willing to discuss mutually acceptable resolution to pending proxy contest (DRI) : Co announced that its Board of Directors expects to nominate nine of its independent directors as the Board's slate of nominees for election at the Annual Meeting of Shareholders to be held on September 30, 2014.
- The Darden Board will continue to be comprised of 12 members until a new Chief Executive Officer is appointed in accordance with the leadership succession plan separately announced today.
- By nominating a slate of nine directors for the 12 available seats at the Annual Meeting, Darden has ensured that at least three of the nominees proposed by Starboard Value L.P. and its affiliates would be elected at the Annual Meeting.
- The Company also announced that it has engaged in settlement discussions with Starboard with respect to Starboard's pending proxy contest but has been unable to reach an agreement with Starboard. The Company remains interested in a mutually acceptable resolution.
- The Company will present details regarding its recommended slate of director nominees in Darden's definitive proxy statement and other materials to be filed with the SEC with respect to the 2014 Annual Meeting.
4:33 pm National Fuel Gas raises FY14 production guidance; CapEx forecast for FY14 increased; FY15 CapEx forecast unchanged (NFG) :
- Seneca's total production of 40.6 Bcfe, or 446 mln cubic feet equivalent per day, represents a 10% increase from the fiscal 2014 second quarter and a 19% increase over the prior year's third quarter. The increase was driven by the ongoing success of Seneca's Marcellus Shale development program in the EDA. Natural gas production increased 20%, to a total of 35.9 Bcf, with minimal price-related curtailments. Crude oil production totaled 783,000 barrels, which increased 10% from the prior year's third quarter largely as a result of continued success in the East Coalinga field.
- The Company is updating its previous fiscal 2014 production guidance range of 155 to 165 Bcfe to a new range of 160 to 168 Bcfe. This represents a 33 to 39% increase over fiscal 2013 production. Seneca's fiscal 2015 production guidance range of 180 to 220 Bcfe remains unchanged.
- Seneca is updating its capital expenditure forecast range for fiscal 2014 from the previous range of $550 to $625 mln to a new range of $575 to $625 mln. This change reflects the acceleration of activities on five Marcellus Shale wells where completion operations were originally scheduled in early fiscal 2015.
- Seneca's capital expenditure forecast for fiscal 2015 remains unchanged at $650 to $750 mln.
4:33 pm Crown Crafts enters into agreement to acquire Kidsline and CoCaLo brand names for a cash purchase price of $1.35 mln (CRWS) : Co announced that it has entered into an agreement to acquire, through its wholly owned subsidiary, Crown Crafts Infant Products, Inc., the Kidsline and CoCaLo brand names from subsidiaries of Kid Brands, Inc. for a cash purchase price of $1.35 mln.
- Consummation of the transaction is subject to the approval of the United States Bankruptcy Court for the District of New Jersey as part of Chapter 11 bankruptcy proceedings initiated by Kid Brands, Inc.
- If approval is received, Crown Crafts will acquire only the rights to use the brand names and associated trademarks and rights, and no physical assets will be included in the acquisition.
4:32 pm Delek Logistics Partners announces appointment of Reuven Spiegel to the Board of Directors of Delek Logistics GP, its general partner, effective July 28, 2014 (DKL) : This appointment expands the size of the board to eight members and Mr. Spiegel becomes the fourth independent director.
4:32 pm Darden Restaurants announces leadership succession plan; Clarence Otis to step down as Chairman and CEO; Board separates Chairman and CEO roles and appoints Charles Ledsinger, Jr. Independent Non-Executive Chairman of the Board (DRI) :
- To ensure a smooth transition, Mr. Otis has agreed to continue serving as Chief Executive Officer of co until the earlier of the appointment of his successor or December 31, 2014.
- Mr. Otis will remain a director of the co, but will not stand for re-election at the 2014 Annual Meeting of Shareholders.
- Co's Board will initiate a search to identify Mr. Otis's successor as CEO.
- Internal and external candidates will be considered.
4:32 pm Healthsouth beats by $0.07, beats on revs; raises FY14 EPS, easily above consensus (HLS) : Reports Q2 (Jun) earnings of $0.54 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.47; revenues rose 7.1% year/year to $604.4 mln vs the $589.77 mln consensus.
- Co raises guidance for FY14, sees EPS of $2.25-2.31 vs. $1.92 Capital IQ Consensus Estimate., up from $1.86-1.91.
4:31 pm Preferred Apt. Communities announces agreement to acquire 1,397 multifamily units (APTS) :
4:31 pm Delek Logistics Partners increases quarterly cash distribution by 11.8% to $0.475 per limited partner unit from $0.425 per limited unit unit (DKL) :
4:31 pm Vapor and International Vapor Group enter into first amendment to asset purchase agreement (VPCO) :
- Co announced that on July 25, 2014 the co and International Vapor Group and certain of its subsidiaries amended their previously announced asset purchase agreement entered into on May 14, 2014, pursuant to which the co will purchase IVG's e-cigarettes and vaporizers e-commerce, wholesale and retail operations by acquiring substantially all of IVG's assets and assuming certain of its liabilities.
- The parties amended the asset purchase agreement by entering into a first amendment to asset purchase agreement. The first amendment extends the termination date of the asset purchase agreement to September 30, 2014, requires IVG's business prior to completing the acquisition to cease using the VAPOR ZONE brands and to rebrand the IVG business, as necessary, with one or more new brands mutually agreed upon by the parties and expands and modifies IVG's and the International Vapor Group owners' indemnity obligations, among other modifications to the asset purchase agreement.
4:30 pm Core-Mark announces strategic geographical expansion into Ohio (CORE) :
- From this new division, the co expects to service approximately 1,000 new stores and to transfer an additional 1,000 existing stores from other co divisions by the end of the first quarter in 2015.
- This transfer is expected to result in transportation cost savings as the company reduces mileage to service customers in the region.
- Start-up costs are expected to be approximately $1.5 mln, and capital expenditures are expected to be approximately $16 mln.
- As a result of this new distribution center, Core-Mark's management now expects total capital expenditures to be approximately $50 mln for 2014.
4:29 pm Seacoast Banking beats by $0.02 (SBCF) : Reports Q2 (Jun) earnings of $0.12 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.10.
- Total loans were $1.335 billion at June 30, 2014, up $22.7 million from March 31, 2014 due to strong closings in commercial banking and residential lending.
- "Our prior year investments in revenue producing personnel in our Accelerate business channel have produced solid results seen in our current period loan originations and forward pipeline"
- NIM increaed to 3.10% from 3.07% last year.
4:24 pm Advent Software beats by $0.04, beats on revs; guides Q3 revs in-line; guides FY14 revs in-line (ADVS) : Reports Q2 (Jun) earnings of $0.38 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.34; revenues rose 4.4% year/year to $100.4 mln vs the $97.8 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $99-102 mln vs. $101.8 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees FY14 revs of $395-403 mln vs. $398.8 mln Capital IQ Consensus Estimate.
4:24 pm MiMedx Group reports EPS in-line, beats on revs; guides Q3 revs above consensus; guides FY14 revs above consensus (MDXG) : Reports Q2 (Jun) net of breakeven, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of ($0.00); revenues rose 89.3% year/year to $25.57 mln vs the $24.62 mln consensus.
- Gross margins for the quarter ended June 30, 2014 were 89% as compared to 84% in 2Q13.
- Adjusted EBITDA for the quarter ended June 30, 2014 was $2.9 mln, a $1.7 mln or 148% improvement, as compared to the Adjusted EBITDA of $1.2 mln for 2Q13.
Co issues upside guidance for FY14, sees FY14 revs of $110-115 mln from prior guidance range of $105-110 mln, excluding non-recurring items, vs. $105.78 mln Capital IQ Consensus Estimate.
4:20 pm pSivida announces ILUVIEN receives marketing authorization in Norway and approval for reimbursement in Portugal; 'should ILUVIEN be approved by the FDA, co is entitled to a $25 mln milestone payment from Alimera (ALIM) in addition to net profit payments on Alimera's sales of ILUVIEN' (PSDV) :
4:18 pm PartnerRe reports EPS in-line, misses on revs (PRE) : Reports Q2 (Jun) earnings of $2.60 per share, in-line with the Capital IQ Consensus Estimate of $2.60; revenues rose 8.4% year/year to $1.42 bln vs the $1.44 bln consensus.
- Half Year Annualized Operating ROE of 10.9%;
- Annualized Net Income ROE of 19.5%
- Book Value of $118.96 per share, up 4.2% for the quarter and up 8.9% year-to-date
- Tangible Book Value of $107.80 per share, up 4.6% for the quarter and up 9.5% year-to-date
4:17 pm Alexandria RE beats by $0.01, reports revs in-line; raises bottom end of FY14 FFO in-line (ARE) : Reports Q2 (Jun) funds from operations of $1.19 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.18; revenues rose 14.6% year/year to $176.4 mln vs the $176.61 mln consensus.
- Co issues in-line guidance for FY14, raises bottom end of adj FFO to $4.74-4.80 from $4.70-4.80 vs. $4.76 Capital IQ Consensus Estimate.
- Same Property NOI growth: Up 5.3% and 5.7% (cash basis) for 2Q14, compared to 2Q13. Up 4.5% and 5.0% (cash basis) for YTD 2Q14, compared to YTD 2Q13.
4:17 pm XL Group plc beats by $0.18, beats on revs (XL) : Reports Q2 (Jun) earnings of $1.02 per share, $0.18 better than the Capital IQ Consensus Estimate of $0.84; net premiums written fell 2.8% year/year to $1.49 bln.
- Fully diluted tangible book value per ordinary share of $35.09 at June 30, 2014, an increase of $1.23, or 3.6%, from December 31, 2013.
4:16 pm Alcentra Capital Corp provides $11.5 mln in senior subordinated debt and junior subordinated debt to ACT Lighting (ABDC) : Co announced that Alcentra has provided $11.5 mln in senior subordinated debt and junior subordinated debt to ACT Lighting. ACT is a distributor of lighting control consoles, lighting fixtures, and cable for live entertainment events. The Company's services include marketing, selling, supporting and servicing critical equipment used by rental companies and tour operators to put on live events. Additionally, ACT trains users on the equipment it distributes-providing a valuable service to both customers and suppliers.
4:15 pm Intevac beats by $0.03, beats on revs (IVAC) : Reports Q2 (Jun) loss of $0.20 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.23); revenues fell 13.4% year/year to $14.7 mln vs the $13.12 mln consensus.
- Order backlog totaled $46.4 mln on June 28, 2014, compared to $51.9 mln on March 29, 2014 and $77.6 mln on June 29, 2013.
4:14 pm Innophos Holdings beats by $0.03, misses on revs (IPHS) : Reports Q2 (Jun) earnings of $0.93 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 3.2% year/year to $220 mln vs the $232.75 mln consensus.
- Specialty Phosphates volume growth is now at the low end of the full year 2014 target range of 3-5%.
- Co remains confident in full year 2014 target of 14-15% operating income margins for Specialty Phosphates.
- Fertilizer market prices remained stable during the second quarter 2014, but have increased 5-10% during July.
- Market phosphate rock prices were flat sequentially in the second quarter 2014 and are expected to remain stable for the third quarter.
- Sulfur market prices increased approximately 20% in the second quarter 2014 and are expected to increase slightly in the third quarter.
- Innophos has implemented selling price increases to offset the effects of the rise in raw material costs.
4:14 pm Franklin Electric misses by $0.01, beats on revs (FELE) : Reports Q2 (Jun) adjusted earnings of $0.60 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.61; revenues rose 8.0% year/year to $284.5 mln vs the $274.85 mln consensus.
- Outlook: "As we look forward to the third quarter, the continued weakness in the U.S. agriculture market coupled with the previously announced changes we made to our U.S. distribution footprint in certain regions of the country are causing some customer inventory liquidations and slowing inventory build-up for other customers. In spite of these factors, we are projecting U.S. Water Systems sales up slightly in the third quarter.
Outside the U.S. we expect Europe to continue to post solid results and for our developing regions Water Systems business to strengthen, with the exception of South Africa, where our operation was shut down for most of July due to a nationwide strike.
We are projecting that our third quarter 2014 global Water Systems sales will increase by 8-10% before acquisitions, and, due to mix, adjusted operating income will grow 3-5%. In the third quarter, we estimate that our Fueling Systems sales and adjusted operating earnings will grow by 8-10%; therefore sequentially, we expect our Fueling Systems business to have similar revenue and operating income that was achieved in the second quarter. Finally, our consolidated adjusted earnings per share growth is expected to be in the 3-5% range."
4:13 pm Alliance Fiber Optic beats by $0.01, misses on revs (AFOP) : Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 27.1% year/year to $24.19 mln vs the $25.18 mln consensus.
4:13 pm Bank of Hawaii beats by $0.05; Board of Directors increases repurchase authorization by $100.0 mln (BOH) : Reports Q2 (Jun) earnings of $0.94 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.89.
- Loan balances grew and we continue to increase customer deposits. Our margin was relatively stable at 2.86%, asset quality continued its strong trend, and expenses remain well controlled."
- The return on average assets for the second quarter of 2014 was 1.17%, up from 1.12% in the previous quarter and during the same quarter last year.
- The return on average equity for the second quarter of 2014 was 15.87%, an increase from 15.15% for the first quarter of 2014 and 14.64% in the second quarter of 2013.
4:12 pm Tile Shop misses by $0.02, misses on revs; lowers FY14 EPS and rev guidance below consensus; Q2 comps +0.3% below ests (TTS) : Reports Q2 (Jun) earnings of $0.08 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.10; revenues rose 14.8% year/year to $66.7 mln vs the $68.83 mln consensus.
- Co issues lowered guidance for FY14, sees EPS of $0.30-0.35 from $0.41-0.45, excluding non-recurring items, vs. $0.38 Capital IQ Consensus Estimate; sees FY14 revs of $263-273 mln from $280-290 mln vs. $276.14 mln Capital IQ Consensus Estimate. Co sees FY14 comps of flat to low single digit increase versus prior guidance of +4-6%.
- Comparable store sales increased 0.3% or $0.2 mln in the quarter (versus Street expectations of close to +3.6%). Sales results at both new and existing stores were adversely impacted by significant changes in the economic environment as compared to the prior year.
- The Company opened five new stores in the second quarter. For the quarter, Adjusted EBITDA was $13.4 mln compared to $15.8 mln in the same period of the prior year.
- "Our stores delivered a slight increase in comparable store sales in the second quarter over the very strong levels achieved last year, despite a challenging environment. Our two year comparable store sales growth for the quarter was 15%, which we believe continues to demonstrate that we are taking share in our industry and further validates the overall strength of The Tile Shop model"
4:12 pm Closing Market Summary: Stocks Begin Trading Week on Unassuming Note (:WRAPX) : The stock market began the last week of July on a quiet note with the S&P 500 ending less than a point above its flat line. Like the benchmark index, the Dow Jones Industrial Average (+0.1%) also posted a slim gain, while the Russell 2000 (-0.5%) and Nasdaq Composite (-0.1%) lagged throughout the session.
The major averages were awakened from their weekend slumber with an opening retreat that pressured the S&P 500 below its 20-day moving average (1975). Even though the index dipped early, only two sectors-consumer staples (-0.5%) and industrials (-0.5%)-displayed noteworthy weakness that persisted into the close.
Meanwhile, most of the remaining sectors kept pace with the broader market and climbed to highs as the afternoon wore on. The consumer discretionary sector (+0.2%) was an early laggard, but ended among the leaders with help from the likes of Netflix (NFLX 424.66, +2.80) and Priceline.com (PCLN 1239.29, +11.51). Furthermore, the sector drew strength from the retail industry, where Family Dollar (FDO 75.74, +15.08) agreed to be acquired by Dollar Tree (DLTR 54.87, +0.65) for $74.50/share, representing a 22.8% premium to Friday's closing price.
M&A activity was also the focus in another influential sector-technology (+0.2%)-with Zillow (Z 160.32, +1.46) acquiring Trulia (TRLA 65.04, +8.69) for $3.50 billion in stock, which represents roughly a 25.3% premium to Friday's closing price.
Elsewhere among tech shares, the largest sector component-Apple (AAPL 99.02, +1.35)-rallied 1.4%, but high-beta chipmakers were not nearly as fortunate. The PHLX Semiconductor Index shed 0.1% after being down as much as 1.3% during the opening hour of action.
Similar to chipmakers, biotech stocks struggled throughout the session, and while their underperformance weighed on the Nasdaq Composite, it had little impact on the health care sector. The iShares Nasdaq Biotechnology ETF (IBB 251.91, -2.15) lost 0.9%, while the health care sector tacked on 0.1%.
Like health care, countercyclical telecom services (+0.5%) and utilities (+1.5%) also finished in the green. Notably, the utilities sector climbed throughout the session to extend its year-to-date advance to 13.3%.
On the fixed income side, the 10-yr note made a brief appearance in the green when equities were on their lows, before sliding to a fresh low ahead of the close. The benchmark note shed four ticks with its yield climbing two basis points to 2.48%.
Participation was below average with less than 580 million shares changing hands at the NYSE.
Economic data was limited to the Pending Home Sales report for June:
- Pending home sales fell 1.1% in June, which was worse than the 0.8% decrease forecast by the Briefing.com consensus
- The May reading was revised down to 6.0% from 6.1%
- S&P 500 +7.1% YTD
- Nasdaq Composite +6.4% YTD
- Dow Jones Industrial Average +2.5% YTD
- Russell 2000 -2.1% YTD
4:12 pm Danaos misses by $0.01, beats on revs (DAC) : Reports Q2 (Jun) adj. earnings of $0.11 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.12; revenues fell 7.0% year/year to $136.4 mln vs the $134.97 mln consensus.
- During the three months ended June 30, 2014, Danaos had an average of 55.8 containerships compared to 60.9 containerships for the three months ended June 30, 2013. Our fleet utilization increased to 97.3% in the three months ended June 30, 2014 compared to 94.1% in the three months ended June 30, 2013. During the three months ended June 30, 2014, our fleet utilization for the fleet under employment was 98.2% (which excludes the vessels on lay up). During the three months ended June 30, 2014, we sold four vessels, the Commodore, the Duka, the Mytilini and the Messologi, for an aggregate amount of $44.1 million, which represents the gross sale proceeds less commissions.
4:12 pm Rollins announces the co, through its subsidiary Orkin, established a franchise in Quito, Ecuador (ROL) : Co announced that it, through its wholly-owned subsidiary Orkin, established a franchise in Quito, Ecuador. Orkin Quito will offer commercial and residential pest control and termite services.
4:11 pm Brandywine Realty commences public offering of 18 mln common shares (BDN) : Co announced that it has commenced a public offering of 18 mln common shares. In addition, the Company expects to grant to the underwriters for the public offering an option for 30 days to purchase up to 2.7 mln additional common shares. BofA Merrill Lynch and Citigroup will serve as the joint book-running managers for the offering and propose to offer the shares at prevailing market prices or otherwise from time to time through the NYSE, the over-the-counter market, negotiated transactions or otherwise.
- The Company intends to contribute the net proceeds of this offering to the Operating Partnership in exchange for partnership units of the Operating Partnership.
- The Operating Partnership intends to use the net proceeds for working capital, capital expenditures and other general corporate purposes, which may include acquisitions, developments and repayment, repurchase and refinancing of debt.
4:10 pm Cognex beats by $0.10, beats on revs; guides Q3 revs well above consensus (CGNX) : Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.22; revenues rose 25.8% year/year to $108.8 mln vs the $103.5 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $165-170 mln, which includes expected revenue in excess of $60 mln from a major customer, vs. $142.3 mln Capital IQ Consensus Estimate.
4:10 pm Luminex beats by $0.10, reports revs in-line; reaffirms FY14 revenue guidance (LMNX) : Reports Q2 (Jun) earnings of $0.20 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.10; revenues rose 2.4% year/year to $55.6 mln vs the $55.64 mln consensus.
Co issues Reaffirms guidance for FY14, sees FY14 revs of $225-240 mln vs. $231.08 mln Capital IQ Consensus Estimate.
4:10 pm Intevac announces order for one 200 Lean magnetic disk sputtering system (IVAC) :
4:10 pm Greenhill beats by $0.05, beats on revs (GHL) : Reports Q2 (Jun) earnings of $0.27 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.22; revenues fell 27.3% year/year to $63 mln vs the $53.94 mln consensus.
- "Transaction activity in the market as a whole has continued to develop in a manner consistent with our comments a quarter ago. M&A completions, which are the main driver of revenue for advisory work, are still lower than they were in the first half of last year, whether measured by the number of transactions or by aggregate deal volume. At the first half run rate, the full year 2014 would have completed transaction data essentially unchanged from that of the past few years and well below the level prior to the financial crisis. On the other hand, data for transaction announcements, which are indicative of future potential revenue, is more positive. While the number of year to date transaction announcements has not increased materially from its weak level last year, aggregate deal volume has risen sharply as a result of a relatively small number of very large transactions. Based on our current interactions with clients, our expectation is that this increase in announced transaction volume will be sustained, and that as clients respond to changing industry dynamics resulting from large strategic transactions, the upturn in M&A will ultimately be more broadly reflected in the number of transactions being announced as well as in strong aggregate deal volume. Given our 100 percent focus on advisory work and our history of expense discipline, all metrics in our business -- revenue growth, productivity, profitability and return of cash to shareholders -- are poised to benefit strongly as and when a broad based recovery in transaction announcements, and ultimately completions, develops further," Robert F. Greenhill, Chairman, said.
4:10 pm Exactech reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs in-line; guides FY14 EPS in-line, revs in-line (EXAC) : Reports Q2 (Jun) earnings of $0.30 per share, in-line with the Capital IQ Consensus Estimate of $0.30; revenues rose 5.4% year/year to $63.9 mln vs the $63.3 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.24-0.26 vs. $0.25 Capital IQ Consensus Estimate; sees Q3 revs of $57.5-59.5 mln vs. $58.64 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees EPS of $1.19-1.23 vs. $1.21 Capital IQ Consensus Estimate; sees FY14 revs of $249-253 mln vs. $250.95 mln Capital IQ Consensus Estimate.
4:09 pm Mavenir Systems beats by $0.07, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY14 revs above consensus (MVNR) : Reports Q2 (Jun) loss of $0.04 per share, $0.07 better than the Capital IQ Consensus Estimate of ($0.11); revenues rose 29.1% year/year to $33.3 mln vs the $30.06 mln consensus.
- Guidance: Co issues mixed guidance for Q3, sees EPS of ($0.16)-($0.12) vs. ($0.05) Capital IQ Consensus Estimate; sees Q3 revs of $31-$33 mln vs. $32.58 mln Capital IQ Consensus Estimate. Sees Non-GAAP gross margin of 51-53%.
Co issues upside guidance for FY14, sees FY14 revs of $127-$130 mln vs. $126.16 mln Capital IQ Consensus Estimate. Sees Non-GAAP gross margin of 57-59%. Non-GAAP operating income is expected to be at approximately a break-even level.
4:09 pm Brightcove announces that Yelp (YELP) has launched a new video feature powered by Brightcove (BCOV) : Co announced that Yelp (YELP) has launched a new video feature powered by Brightcove. Yelp users can upload short video clips up to 12 seconds long with the help of the Brightcove Video Cloud online video platform and the Brightcove Zencoder cloud-based encoding service.
4:08 pm Peregrine Semi beats by $0.01, beats on revs; guides Q3 revs inline (PSMI) : Reports Q2 (Jun) loss of $0.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.13); revenues fell 10.1% year/year to $47.1 mln vs the $44.15 mln consensus.
- Gross margin on a non-GAAP basis for the second quarter of 2014 was 39.0% of revenue, compared to 40.0% of revenue for the same period in 2013.
- "We reported better than expected revenue this quarter driven by strong growth of LTE smartphones in many global markets," said James Cable, Chairman and Chief Executive Officer. "In our High Performance Analog business, we are also enjoying strong design win growth and momentum in our sales channel."
4:07 pm Integrated Device beats by $0.01, beats on revs (IDTI) : Reports Q1 (Jun) earnings of $0.17 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 6.5% year/year to $126.3 mln vs the $124.98 mln consensus. "Looking ahead we are confident in our ability to continue executing on our growth strategy with all key areas of our business contributing to that growth."
4:07 pm American Capital Agency beats by $0.19, beats on revs (AGNC) : Reports Q2 (Jun) adj. earnings of $0.87 per share, $0.19 better than the Capital IQ Consensus Estimate of $0.68; net interest income fell 30.0% year/year to $290 mln vs the $281.85 mln consensus.
- $2.43 comprehensive income per common share, comprised of:
- $0.08 net income per common share; $2.35 other comprehensive income ("OCI") per common share -- Includes net unrealized gains on investments marked-to-market through OCI
- Net bok value $26.26 +7.2% QoQ
4:07 pm Plum Creek beats by $0.01, reports revs in-line; guides Q3 EPS below consensus; lowers FY14 EPS below consensus (PCL) : Reports Q2 (Jun) earnings of $0.31 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 17.5% year/year to $356 mln vs the $353.41 mln consensus.
- Co issues downside guidance for Q3, sees EPS of $0.27-0.32 vs. $0.46 Capital IQ Consensus Estimate.
- Co lowers guidance for FY14, sees EPS of $1.05-1.25 vs. $1.39 Capital IQ Consensus Estimate, from $1.30-1.50.
- "Our second quarter results were much as we anticipated despite lower-than-planned harvest volumes in the South," said Rick Holley, Plum Creek's chief executive officer. "So far this year, the operating income and cash flow from our timber resources segments are up nearly 30 percent due to improving log prices and the additional harvest from the lands we acquired in December."
- "Our Real Estate segment continues to perform as expected and our Manufacturing segment is on track to deliver a strong performance in 2014. Our Energy and Natural Resources segment results have grown too, as the assets we acquired over the past year are providing attractive cash-on-cash returns for our shareholders."
4:07 pm TCP Capital announces public offering of 5.4 mln common shares (TCPC) :
- The co intends to use the net proceeds from this offering to repay amounts outstanding under its revolving credit facilities (which will increase the funds under the revolving credit facilities available to the co to make additional investments in portfolio companies) and to make investments in portfolio companies in accordance with its investment objective and for other general corporate purposes, including payment of operating expenses.
- Deutsche Bank Securities Inc., BofA Merrill Lynch, Raymond James & Associates, Inc., Keefe, Bruyette & Woods, Inc. and RBC Capital Markets, LLC are acting as joint book-running managers for the offering. Oppenheimer & Co. Inc. is acting as lead manager for the offering.
4:06 pm Flexion Therapeutics and Southwest Research Institute sign worldwide exclusive license for proprietary microsphere manufacturing technologies (FLXN) : Co announced that it has executed an exclusive worldwide licensing agreement with SwRI to utilize proprietary microsphere manufacturing technologies for production of Flexion's sustained-release drug candidates, including leading candidate FX006.
- The SwRI technologies employ a uniquely controlled and continuous atomizing technology that Flexion believes may facilitate efficient scale-up of Phase 3 clinical trial material and commercial supply.
- Flexion has successfully used this technology to produce clinical trial microsphere product for its lead drug candidate FX006, which has been tested in more than 200 patients.
4:06 pm Knowles reports Q2 (Jun) results, revs in-line; guides Q3 EPS in-line, revs in-line (KN) : Reports Q2 (Jun) earnings of $0.26 per share, which includes a $0.05 per share benefit from certain discrete tax effects, may not be comparable to the Capital IQ Consensus Estimate of $0.22; revenues fell 5.3% year/year to $281 mln vs the $279.26 mln consensus.
- Co issues in-line guidance for Q3, sees EPS of $0.45-0.52 vs. $0.52 Capital IQ Consensus Estimate; sees Q3 revs of $310-330 mln vs. $318.65 mln Capital IQ Consensus Estimate.
- "Based on our current expectations of customer product launches and projected builds in the second half of the year, we continue to anticipate that 2014 will be a year of modest revenue growth for Knowles. In addition, restructuring initiatives across our business units are all on track and we remain committed to delivering year-over-year operating margin expansion in the fourth quarter of 2014."
4:06 pm Denny's beats by $0.01, reports revs in-line (DENN) : Reports Q2 (Jun) earnings of $0.09 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 1.7% year/year to $114.61 mln vs the $115.38 mln consensus.
- Domestic system-wide same-store sales increased 1.9%, comprised of a 3.7% increase at company restaurants and 1.7% increase at domestic franchised restaurants.
- Repurchased 2.3 million shares for $14.9 million with 5.6 million authorized shares remaining at the end of the second quarter.
- Co reaffirms guidance for domestic franchise same-store sales growth of 1-2%
- Raises company same-store sales guidance to 2.5-3.5% from 2.0-3.0%
- Sees new restaurant openings (all franchised) of 40-45, lowered from 45-50
- Sees adjusted EBITDA of $78-80 mln, raised from $77-79 mln; sees free cash flow of $45-48 mln, raised from $44-47 mln
4:06 pm Ducommun beats by $0.15, reports revs in-line (DCO) : Reports Q2 (Jun) earnings of $0.59 per share, $0.15 better than the Capital IQ Consensus Estimate of $0.44; revenues fell 2.6% year/year to $186.5 mln vs the $185.49 mln consensus.
- EBITDA for the quarter was $24.3 million
- Ducommun made a voluntary principal prepayment of $7.5 million on its term loan during the quarter
- The Company's firm backlog as of June 28, 2014 was $623 million
4:05 pm Integrated Device announces that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone (IDTI) : Co announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone. The two companies worked together closely to integrate the IDTP9025A chip, which delivers a compact size and simplified application circuit.
- The LG G3 smartphone is winning rave reviews globally for its state-of-the-art feature set in a compact form.
4:05 pm Norwegian Cruise Line beats by $0.01, misses on revs; guides Q3 EPS in-line; guides FY14 EPS in-line (NCLH) : Reports Q2 (Jun) earnings of $0.58 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 18.9% year/year to $765.92 mln vs the $780.57 mln consensus.
- Co issues in-line guidance for Q3, sees EPS of $1.05-1.10 vs. $1.15 Capital IQ Consensus Estimate. Sees Net Yield, as reported, in the range of 2.25-2.75%.
- Co issues in-line guidance for FY14, sees EPS of $2.20-2.35 vs. $2.29 Capital IQ Consensus Estimate. Sees Net Yield, as reported, ion the range of 3.0-3.5%.
4:04 pm Montpelier Re misses by $0.21 (MRH) : Reports Q2 (Jun) operating earnings of $0.76 per share, $0.21 worse than the Capital IQ Consensus Estimate of $0.97. Net premiums written in the second quarter were flat year-over-year, when adjusting for reinstatements, with increased writings within the company's Montpelier at Lloyd's and Collateralized Reinsurance segments, offsetting a decrease in writings at Montpelier Bermuda.
- Fully converted book value per common share was $31.74, an increase of 2.8% from March 31, 2014 and an increase of 8.7% from December 31, 2013, each after taking into account common share dividends declared during the period.
- The loss ratio for the quarter was 41%, which includes $24 million of net losses from known catastrophe events in the quarter, offset by $38 million of favorable prior year loss reserve movements. The combined ratio was 77% for the quarter.
4:04 pm CareDx presents cell-free DNA biomarker results in heart and kidney transplant recipients at the World Transplant Congress; graft-derived cfDNA in bloodstream correlates to acute cellular rejection in kidney as well as in heart transplant recipients (CDNA) : Co announced the results of its cohort studies of blood samples from the multicenter CARGO and CARGO II heart transplant observational studies, and from the KARGO kidney transplant study during a presentation today at The World Transplant Congress in San Francisco, CA.
- In his oral abstract, Dr. Robert Woodward, Ph.D. and co-authors from CareDx demonstrated that graft-derived cfDNA proportion in heart transplant and kidney transplant recipient's blood is significantly higher in patients who had a biopsy-confirmed rejection compared to that found in transplant recipients who did not have any evidence of rejection at the time of blood sampling.
- There was a 10-fold median cfDNA proportion increase in the CARGO and 5-fold in the CARGO II heart recipients with biopsy-proven rejection in comparison to the cfDNA levels from patients without rejection.
- In kidney transplant recipients, the median graft-derived cfDNA was 3-fold higher in the KARGO patients with biopsy-proven rejection in comparison to the cfDNA levels in blood from kidney recipients without rejection.
4:04 pm W.R. Berkley beats by $0.06, beats on revs (WRB) : Reports Q2 (Jun) earnings of $0.82 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 14.4% year/year to $1.8 bln vs the $1.68 bln consensus.
4:04 pm Rex Energy updates drills operations at Appalachian Basin and Bulter Operated Area; 3Q14 average daily production expected to increase by ~ 26% at midpoint of guidance over 2014; increases FY14 production guidance by ~2 MMcfe/d at the midpoint (REXX) : Appalachian Basin:
- Co has placed the three-well Shipley pad into sales. The three wells on the pad were drilled with an average lateral length of ~ 7,000 feet and completed in an average of 44 completion stages. The three wells produced at an average 5-day sales rate per well of ~8.2 MMcfe/d with 46% liquids (assuming full ethane recovery), representing the highest average 5-day sales rate of any wells to date in the Butler Operated Area.
- In the second quarter of 2014, production from a portion of the co's legacy low pressure wells was constrained due to the high pressure of the recent wells placed into sales in the Butler Operated Area. This production curtailment was resolved within the past week concurrent with the co's midstream provider completing the installation of additional field compression. The co's current gross wellhead production rate from its Butler Operated Area is ~ 135 MMcf/d, an increase of ~ 25 MMcf/d over the gross wellhead production rate at the end of the second quarter. In addition, the co has commenced incremental ethane recovery in the Butler Operated Area and is currently selling ~ 5,000 bbls/d of ethane from the Appalachian Basin. This compares to ~ 1,000 bbls/d of ethane sales at June 30, 2014 and ~ 3,000 bbls/d in early July. The co expects its ethane sales to continue to meet its ethane volume commitment of 5,000 bbls/d for the remainder of 2014.
- Co expects its third quarter production to range from 159.0 MMcfe/d -- 165.0 MMcfe/d, which represents a 26% sequential increase at the midpoint of guidance over the second quarter of 2014 and a 64% year-over-year increase at the midpoint of guidance.
- The co is also increasing its full-year 2014 production guidance by ~2.0 MMcfe/d at the midpoint to 146.0 MMcfe/d -- 150.0 MMcfe/d from its previously announced guidance of 143.0 MMcfe/d -- 149.0 MMcfe/d. This increase is due to strong production results from the company's existing producing properties as well as greater certainty regarding the expected timing of wells to be placed into sales during the second half of 2014.
4:03 pm Gevo announces side-by-side operation of Luverne Plant on track; co producing both isobutanol and ethanol (GEVO) :
- Successfully produced isobutanol at initial run rates of tens of thousands of gallons per month in a commercial-scale one million liter fermenter (in line with previous guidance); Isobutanol yields have reached >90% of target based on starch content, up from approximately 70% prior to running SBS; Reduced isobutanol batch cash costs by >25% since beginning SBS, with a clear path towards targeted economic rates; Produced and sold IDGs (animal feed from isobutanol production); Achieved 100% recycle streams (up from 90%), while consistently producing sterile mash, controlling infections and growing isobutanol producing yeast; GIFT continues to work as designed (controlling the concentration of isobutanol to desired levels in the fermentation broth, by removing and collecting the isobutanol for further downstream processing); and No yeast cross-contamination from the ethanol system.
- Produced ethanol at a run rate of approximately 1.5 mln gallons per month (above previous guidance of 1.25 million gallons per month); Generating revenue of more than $3 mln per month at Luverne; and No yeast cross-contamination from the isobutanol system.
4:03 pm J&J Snack Foods beats by $0.06, beats on revs (JJSF) : Reports Q3 (Jun) earnings of $1.26 per share, $0.06 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 8.5% year/year to $257.1 mln vs the $243.3 mln consensus.
- "All of our business groups contributed to our record quarter. We had particular strong sales growth in our food service soft pretzel category led by our newer products such as pretzel rolls and sticks. Our ICEE group also had record sales and earnings and our retail grocery group had higher earnings as well."
4:02 pm KaloBios Pharma (halted) provides update on KB001-A partnership and clinical status; regains global rights to KB001-A from Sanofi Pasteur (SNY); announces completion of enrollment in KB001-A Phase 2 cystic fibrosis study (KBIO) :
- Co announced that it has reached an agreement with Sanofi Pasteur to regain all rights to co's KB001-A program. Under this agreement, the collaboration and licensing agreement entered into in 2010 has been terminated. Under that collaboration agreement, Sanofi Pasteur had been developing KB001-A, a patented monoclonal antibody targeting Pseudomonas aeruginosa (Pa), for Pa pneumonia prevention in the intensive care setting while co had been developing KB001-A for chronic treatment of Pa lung infections in cystic fibrosis (CF) patients.
- Sanofi Pasteur agreed to terminate the collaboration and licensing agreement with co in consideration of low single digit royalties on net sales of KB001-A, subject to a $40 mln cap on the aggregate royalties to be paid. In addition, Sanofi Pasteur will be entitled to receive up to 10% of certain sub-license payments or other milestone payments received in the event co successfully re-partners KB001-A, subject to a separate $40 mln cap on the aggregate amount of sub-license payments to be shared with Sanofi Pasteur.
- Co also announced that it has achieved full enrollment in the 180 patient Phase 2 study evaluating KB001-A in CF subjects with chronic Pa lung infection. Co now expects to release top-line data on this study in early first quarter 2015.
- Co had previously completed a Phase 1/2 study with KB001 in thirty-five patients colonized with Pa which demonstrated approximately a 50% reduction in VAP in patients treated with KB001. The study also showed a dose-dependent increase in bacterial event-free survival relative to placebo.
4:02 pm Meru Networks misses by $0.01, misses on revs (MERU) : Reports Q2 (Jun) loss of $0.13 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of ($0.12); revenues fell 10.9% year/year to $23.6 mln vs the $23.9 mln consensus.
4:02 pm Heartland Finl beats by $0.04 (HTLF) :
- Reports Q2 (Jun) earnings of $0.56 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.52.
- Net interest margin, expressed as a percentage of average earning assets, was 4.04% during the second quarter of 2014 compared to 3.92% during the first quarter of 2014 and 3.71% during the second quarter of 2013.
- Interest income increased $11.5 million or 24% to $59.3 million in the second quarter of 2014 from the $47.8 million recorded in the second quarter of 2013. After adjustment to add $2.7 million for the second quarter of 2014 and $2.4 million for the second quarter of 2013 for income taxes saved on the interest earned on nontaxable securities and loans, on a tax-equivalent basis, interest income in the second quarter of 2014 was $62.0 million compared to $50.2 million in the second quarter of 2013.
4:02 pm Codexis names Gordon Sangster Senior VP and CFO (CDXS) :
- Prior to signing with co, Mr. Sangster has served as Chief Financial Officer at multiple public and private life science companies for the last fourteen years.
- From October 2011 until July 2014, Mr. Sangster served as Chief Financial Officer of Nitinol Devices & Components, a private medical device manufacturer.
4:01 pm Alimera Sciences' ILUVIEN receives marketing authorization in Norway for the treatment of chronic diabetic Macular Edema (ALIM) : Co announced that the Norwegian Medicines Evaluation Board has granted marketing authorization to ILUVIEN for the treatment of vision impairment associated with chronic diabetic macular edema considered insufficiently responsive to available therapies. Norway is the first country to grant national marketing authorization following the positive outcome in June of the Repeat-Use Procedure application.
- In addition to Norway, ILUVIEN is now approved for marketing in Austria, France, Germany, Italy, Portugal, Spain and the United Kingdom, and is commercially available in the United Kingdom and Germany.
- ILUVIEN is pending approval in an additional nine countries included in the Repeat-Use Procedure.
- These countries are Belgium, the Czech Republic, Denmark, Finland, Ireland, Luxembourg, the Netherlands, Poland and Sweden. ILUVIEN is currently under review by the U.S. Food and Drug Administration.
3:33 pm Earnings Calendar (:SUMRX) : Today after the close look for the following companies to report:
- NQ, BOH, EXAC, HLIT, WRB, GHL, AFOP, EMN, MAS, SBCF, ADVS, AGNC, AMKR, CR, CTS, DCO, DENN, GGP, HLF, HLS, HTLF, IPHS, IVAC, JJSF, KN, LMNX, MERU, MSTR, OMI, PCL, PRE, RRC, SIMO, SSW, FELE, JEC, KAI, NCLH, TTS, CGNX, KRC, MRH, XL, ARE, IDTI, PSMI, AFG, MVNR
- ACI, AKS, ITW, MDSO, CBZ, ENTG, RAI, AET, AMAG, CRS, ETR, GTI, NLSN, NYT, SIRI, UPS, WM, YNDX, CVLT, HMC, MDXG, AVX, ECL, GLW, NOV, AGCO, AIXG, AMG, AXE, BP, CARB, CAS, CBR, CNX, CPLA, EME, ETN, FDP, FSRV, GLT, HCA, HMST, HRS, HSII, HW, IPGP, KLIC, MHFI, MLM, MRK, NCI, NMM, OSK, PCAR, POR, RYN, SAVE, ST, STBA, STCK, TRW, UBSI, UDR, UTHR, WDR, XYL, AUDC, ICON, IP, LVLT, NEE, SNCR, ALLY, DIN, EXLS, FIS, FSS, MDC, WYNN, MMC, PFE, UAM, ARW, CYNO, GNC, MSO, UBS, VSH, TLM, DSX, GLPI
3:11 pm Apple: AAPL, now +1.4%, pushes to a new 52-wk high print now @ 99.10 as shares edge closer to the widely followed $100.00 handle (AAPL) :
2:47 pm NYMEX Energy Closing Prices (:COMDX) :
- Sep crude oil fell $0.42 to $101.68/barrel
- Crude oil trended higher after coming off its session low of $100.82 in morning action. It brushed a session high of $102.12 but lost momentum heading into the close and settled with a 0.4% loss.
- Aug natural gas fell 3 cents to $3.75/MMBtu
- Natural gas rose to a session high of $3.85 but fell into negative territory in late morning floor trade. It brushed a session low of $3.73 and eventually settled with a 0.8% loss.
- Aug heating oil fell 3 cents to $2.89/gallon
- Aug RBOB fell 1 cent to $2.85/gallon
2:39 pm Tianli Agritech announces change of corporate name to Aoxin Tianli Group, Inc. and ticker symbol to 'ABAC' effective July 29, 2014 (OINK) : Co announced that it has changed its name to "Aoxin Tianli Group, Inc." In connection with the name change, the co's common shares will commence trading on the NASDAQ Capital Market under the new ticker symbol "ABAC", effective July 29, 2014.
- The changes reflect the co's on-going efforts to transform itself from a single revenue stream-hog farming-to a well-diversified company through targeted investments and acquisitions in selected higher growth industries such as equipment manufacturing, optoelectronics, new material & new energy products, electromechanics and healthcare devices.
2:26 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :
- Sep corn rose 5 cents to $3.68/bushel
- Sep wheat fell 3 cents to $5.35/bushel
- Aug soybeans rose 24 cents to $12.36/bushel
- Sep ethanol rose 5 cents to $2.09/gallon
- Sep sugar (#16 (U.S.)) rose 0.04 of a penny to 24.58 cents/lbs
2:18 pm Family Dollar: Carl Icahn on Family Dollar acquisition: 'Activism Is Alive And Well' (FDO) : Carl Icahn released the following statement regarding Family Dollar Stores:
- "While we continue to believe there are a handful of potential buyers who could realize greater synergies through a combination with Family Dollar and are hopeful that one or more of them will surface as a result of today's announcement, we are extremely pleased with Dollar Tree's intention to acquire Family Dollar in a transaction that values the company at $74.50 per share. This is a big win for all shareholders of Family Dollar and yet another validation of the activist investment philosophy in general.
- An investor that had bought Family Dollar shares on June 6, 2014, the date our investment in the company was first made public, and held those shares through today (assuming the $74.50 deal price), would have paid $60.53 per share and realized a total return of 23.7% (as compared to a total return of only 1.5% for the S&P 500 Index over that same period). Over the period since we began purchasing the stock, the common shareholders of Family Dollar have enjoyed an aggregate gain in market value of almost $1.9 billion, an increase of over 28.5%."
2:16 pm Dollar Drifts Little Changed: 10-yr: -07/32..2.495%..USD/JPY: 101.85..EUR/USD: 1.3438 (:SUMRX) :
- The Dollar Index drifts little changed near 81.00. Click here to see a daily Dollar Index chart.
- An extremely quiet session has seen action trapped in a less than 5 cent range for U.S. trade.
- EURUSD is +5 pips @ 1.3440 as trade stabilizes near eight-month lows. A lackluster session has seen action limited to just 15 pips.
- GBPUSD is +15 pips @ 1.6990 as buyers take charge for the first time in nine sessions. Sterling has found support in the 1.6950/1.7000 area as buyers emerge in defense of the 50 dma. Britain's net lending to individuals will cross the wires tomorrow.
- USDCHF is -10 pips @ .9035 as trade slips off its best levels since the beginning of February. Today's sleepy trade is a result of the lackluster session for the euro.
- USDJPY is +5 pips @ 101.85 as buyers fight to put in a seventh day of gains. Today's advance has the pair probing resistance in the 101.80 area that is guarded by the 50 dma. Additional resistance near 102.00 is also home to the 100 and 200 dma. Japan's household spending and retail sales figures are due out tonight.
- AUDUSD is +15 pips @ .9410 after holding minor support near .9400. The .9350 level is home to more important support that is helped by the 50 dma.
- USDCAD is -10 pips @ 1.0805 as action stalls at five-week highs. Many participants are watching 1.0800/1.0820 resistance as the 200 dma also lurks in the vicinity.
2:06 pm Bob Evans: Sandell releases new presentation to shareholders of BOBE; makes case for comprehensive change; discusses actionable ideas to re-position co for long-term success (BOBE) :
- Sandell Asset Management, one of the largest shareholders of Bob Evans Farms, has recently increased its beneficial ownership of the co to 7.6%,1 and has released a new presentation entitled: "Refresh Bob Evans - The Case and Nominees For Change," which can be found at www.refreshbobevans.com.
- In this presentation, Sandell makes the case for urgently needed, comprehensive change at Bob Evans and discusses the long-term value-creating, actionable ideas advocated by the slate of eight truly independent, highly-qualified nominees that Sandell has submitted as candidates for election to the Board of Directors of Bob Evans at the upcoming 2014 Annual Meeting of Stockholders.
1:44 pm COMEX Metals Closing Prices (:COMDX) :
- Aug gold rose $0.20 to $1303.20/oz
- Gold chopped around near the unchanged line today in a tight range between $1301.80 and $1305.80. Unable to gain momentum, it settled just 20 cents higher.
- Sep silver fell $0.07 to $20.57/oz
- Silver slipped into negative territory in afternoon action after trading as high as $20.73 earlier in the session. It brushed a session low of $20.55 and settled with a 0.3% loss.
- Sep copper settled unchanged at $3.24/lbs
1:34 pm S&P +1 joins Dow +17 at new session high -- Nasdaq Comp -1.4 (:TECHX) :
1:26 pm S&P -0.9 and Nasdaq Comp -6 extend to new rebound highs, Dow +7.2 set a new session high (:TECHX) :
1:19 pm Pharmacyclics: FDA grants regular full approval for IMBRUVICA for two indications (PCYC) : Co announced that the FDA has granted IMBRUVICA (ibrutinib) regular (full) approval for the treatment of patients with chronic lymphocytic leukemia who have received at least one prior therapy, and for the treatment of CLL patients with deletion of the short arm of chromosome 17 (del 17p CLL), including treatment naive and previously treated del 17p CLL patients.
- This is the first full FDA approval for IMBRUVICA, and was granted within six months after the accelerated approval for patients with previously treated CLL in February 2014. IMBRUVICA is being jointly developed and commercialized by Pharmacyclics and Janssen Biotech, which is owned by Johnson & Johnson (JNJ).
- This full approval is based on data from the Phase III RESONATE study, a randomized, multi-center, international head-to-head comparison of single-agent, orally-administered IMBRUVICA versus the intravenous, monoclonal antibody ofatumumab targeting the CD 20 antigen. Patients receiving IMBRUVICA demonstrated a statistically significant improvement in progression-free survival, overall survival and overall response rate as compared to patients treated with ofatumumab.
- This approval for IMBRUVICA triggers $60 mln in milestone payments to Pharmacyclics under its collaboration agreement with Janssen Biotech, Inc.
12:59 pm Midday Market Summary: Small Caps Lag at Midday (:WRAPX) : The major averages hold midday losses with the Russell 2000 (-0.8%) leading the retreat. Similar to the Russell 2000, the Nasdaq Composite (-0.3%) trails the S&P 500 (-0.2%).
Outside of the Russell 2000, equity indices have been relatively quiet through the first half of the action with many participants showing caution ahead of a busy week of economic data. Wednesday will feature the advance GDP reading for Q2 (Briefing.com consensus 3.2%) and the FOMC policy decision, while the July jobs report will be released on Friday (Briefing.com consensus 220K).
Today, however, the early focus was on M&A activity with Family Dollar (FDO 75.23, +14.57) agreeing to be acquired by Dollar Tree (DLTR 55.67, +1.45) for $74.50/share, which represents a 22.8% premium to Friday's closing price. Despite the news, the consumer discretionary sector (-0.1%) hovers in the red, but is trading just ahead of the broader market.
Elsewhere, the top-weighted S&P 500 group-technology (-0.1%)-trades in line with the discretionary space. Influential sector components like Apple (AAPL 98.39, +0.72) and IBM (IBM 195.13, +0.73) have shown some relative strength, but high-beta chipmakers weigh. The PHLX Semiconductor Index holds a loss of 0.4% with 18 of its 30 components in the red.
Also of note, Trulia (TRLA 64.75, +8.40) has jumped 15.0% after accepting Zillow's (Z 158.95, +0.09) $3.50 billion takeover offer.
While most of the declining sectors display losses comparable to the broader market, consumer staples (-0.5%) and industrials (-0.8%) lag. The industrial sector has suffered from weakness among transport stocks as the Dow Jones Transportation Average trades lower by 1.3%. Kansas City Southern (KSU 111.33, -2.92) is the weakest performer, down 2.6%, while Alaska Air (ALK 45.97, +0.20) and Delta Air Lines (DAL 38.25, +0.19) are the only two pockets of relative strength.
Treasuries hover near their early lows with the 10-yr yield up two basis points at 2.49%.
Economic data was limited to the Pending Home Sales report for June:
- Pending home sales fell 1.1% in June, which was worse than the 0.8% decrease forecast by the Briefing.com consensus
- The May reading was revised down to 6.0% from 6.1%
12:46 pm Medtronic receives FDA approval for PRESTIGE LP cervical disc system (MDT) : Co announced that it has received approval from the FDA to market the PRESTIGE LP Cervical Disc System for the treatment of single-level cervical disc disease (radiculopathy and/or myelopathy).
- The PRESTIGE LP Cervical Disc has been available outside the United States since 2004 and has been studied in a prospective, multicenter, historical- controlled U.S. IDE trial for a single-level indication.
12:09 pm 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
- TSN (41.38 +4.67%): Missed quarterly EPS by $0.03 ($0.75 vs $0.78 estimate), revs rose 10.9% yoy to $9.68 bln vs $9.48 bln estimate; sees FY15 EPS growth of at least 10% on revs of ~$38 bln
- UHS (108.45 +4.05%): Target raised to $131 from $95 at RBC Capital Markets; contineud strength following reporting of strong earnings and upside guidance after the close on July 24
- DLTR (56.15 +3.56%): To acquire Family Dollar (FDO) in a cash and stock transaction; expected to be accretive to cash EPS within the first year post-closing, excluding one-time costs to achieve synergies
- CMI (145.04 -3.40%): Beat quarterly EPS by $0.04 ($2.43 vs $2.39 estimate), revs rose 6.9% yoy to $4.84 bln vs $4.82 bln estimate; sees FY14 revs +8-11% (raised from +6-10%) or ~$18.7-19.2 bln vs $18.89 bln estimate
- RBS (11.96 -3.39%): Seeing reports that Morgan Stanley has advised the company to sell a majority stake in its Irish unit, Ulster Bank
- MNST (64.79 -3.31%): Downgraded to Neutral from Buy at UBS, target lowered to $73 from $80
- FDO (74.46 +22.75%): To be acquired by Dollar Tree (DLTR) in a cash and stock transaction; FDO shareholders to receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares
- TRLA (63 +11.80%): To be acquired by Zillow (Z) for ~$3.5 bln in stock; Trulia shareholders to receive 0.444 shares of class A common stock of Zillow for each share of Trulia
- FSLR (66.11 +3.22%): Announced the signing of an agreement with XSOL Co, a distributor and integrator of solar systems in Japan, to supply cadmium telluride thin film modules in Japan
- AWI (50.96 -7.96%): Missed quarterly EPS by $0.06 ($0.60 ex items vs $0.66 estimate), revs rose 0.5% yoy to $710 mln vs $727.12 mln estimate; sees Q3 revs of $740-780 mln vs $760.10 mln estimate; sees FY14 EPS of $2.15-2.40 (lwered from $2.55-2.80) vs $2.60 estimate, revs of $2.7-2.8 bln (lowered from $2.8-2.9 bln) vs $2.81 bln estimate
- CMP (87.28 -7.76%): Missed quarterly EPS by $0.14 ($0.13 ex items vs $0.27 estimate), revs rose 7.4% yoy to $186.6 mln vs $196.94 mln estimate; operating earnings $13.4 mln vs $14.7 mln in prior year
- RSPP (31.13 -4.16%): Sees Q2 net income of $7.8-8.3 mln and adjusted EBITDAX of $51.0-53.7 mln
12:07 pm GOL Linhas Areas Inteligentes S.A. released earlier June traffic figures - in 2Q14 load factor reached 76% and PRASK grew 27% y/y (GOL) : Co announced its preliminary traffic figures for June 2014.
- Comparisons refer to June 2013, 2Q13 and 6M13. During the 2014 FIFA World Cup, held in Brazil, GOL operated 28,000 commercial flights, transported 3.4 mln passengers and achieved its highest ever load factor, which averaged 81.2% between June 12 and July 14. Customer satisfaction, measured by an SMS survey, also reached the record level of 8.16 on a scale of 1 to 10, thanks to the total dedication of our Team of Eagles.
- The Domestic Load Factor in 2Q14 and 6M14 came to 76.0% and 76.4%, respectively, both period records.
- The new Load Factor level, together with the continuing upturn in yield, which increased by close to 15% in 2Q14, fueled PRASK, which climbed by approximately 27% in year-over-year, underlining the Company's new level of execution.
- Domestic Supply had 6.0% cut in 2Q14 and 2.2% cut in 6M14, reflecting the Company's flexibility in adapting its domestic capacity and in line with its guidance of a reduction between 3% and 1%.
- Domestic Demand increased by 3.5% in the quarter and 9.0% in the first six months.
- It is worth noting that June's numbers reflect only part of the traffic related to the World Cup, which began on the 12th.
12:01 pm Polaris Inds announces new business unit and leadership changes in EMEA business; new business unit is operational effective immediately (PII) : Co announced that it is integrating several emerging business lines to create a new Global Adjacent Markets business and that it has named Matt Homan to lead the fully integrated business as President, Global Adjacent Markets. This new business unit is operational effective immediately.
- This change does not affect Polaris' core consumer business units including Off-Road Vehicles, Snow, Motorcycles, Parts Garments & Accessories (PG&A) or Eicher Polaris Private Limited.
- Commensurate with Homan's promotion, Suresh Krishna has accepted the position of Vice President, EMEA. Krishna joined Polaris in March 2010 and previously served as Vice President, Global Operations and Integration. In his new role, Krishna will lead the company's EMEA business, concentrating on the continued development of both organic and new growth opportunities in the region. He will also expand the EMEA role to include responsibility for manufacturing, sourcing, new product development and expanded distribution.
11:59 am Mountain Province Diamonds appoints banks to arrange and underwrite $370 mln term loan facility (MDM) : Co announced the appointment of three leading international banks to arrange and underwrite a senior secured term loan facility of up to $370 mln to fund the co's share of the construction cost of the Gahcho Ku diamond mine located in Canada's Northwest Territories.
- Gahcho Ku is a joint venture between De Beers Canada Inc. (51%) and Mountain Province (49%).
- Mountain Province has mandated Deutsche Bank A.G., acting through its London Branch, Natixis S.A. and Nedbank Limited as the lead arrangers to underwrite, arrange and manage the primary syndication of the Facility, subject to the satisfaction of certain conditions including, but not limited to, the successful completion of due diligence and internal bank approvals of the Lead Arrangers and agreement of Facility documentation, which is expected prior to the end of 2014.
11:57 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE:-0.1%
- Germany's DAX:-0.5%
- France's CAC:+0.3%
- Spain's IBEX:-0.1%
- Portugal's PSI:+0.3%
- Italy's MIB Index:-0.6%
- Irish Ovrl Index:+0.2%
- Greece ASE General Index: -0.1%
11:47 am Intelsat subsidiary, Intelsat General, among companies selected to enable U.S. Air Force deployment of hosted payload missions (I) :
- Intelsat General, an indirect, wholly owned subsidiary of Intelsat S.A., has been selected by the U.S. Air Force to participate in a half-billion-dollar, 15-year program to place government payloads aboard commercial satellites.
- Under the Air Force's Hosted Payload Solutions program, known as HoPS, Intelsat General and 13 other U.S. space companies will have an opportunity to bid on task orders designed to streamline the process of getting government capabilities into orbit. The overall IDIQ contract has a value of $495 million and runs through 2029.
11:40 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (99) outpacing new highs (58) (:SCANX) : Stocks that traded to 52 week highs: AAPL, ABAX, ACH, AEM, AFCB, AHGP, ARLP, BABY, BCR, BDN, BIDU, CALM, CARO, CIB, CM, CMG, CUZ, DCM, DPS, ECF, EQIX, ESTE, GPRE, HPQ, HSP, IDSA, IPDN, KALU, LEJU, LYB, MAA, MAMS, NDAQ, NGG, NSH, NTRS, PEB, PKX, PPC, PTSI, RCL, RNO, SGC, SHG, SHI, SUI, SUMR, SVU, TCX, THC, TKC, TMH, TOUR, TRLA, TTWO, UNTY, WLK, XRX
Stocks that traded to 52 week lows: ACI, ACXM, AGM, AKAO, ALDX, AQXP, ATRS, AWRE, BPI, CAS, CBLI, CBPX, CERS, CERU, CGA, CGG, CKH, CNHI, COT, COVS, CPWR, CRCM, CRNT, DGII, DVR, DXYN, EBIO, ENTR, ESI, ESIO, EXAR, FCBC, FMER, FRAN, GENE, GFIG, GIMO, GLF, GNC, GSK, GTXI, HHS, HOV, HVB, IBP, IKAN, IMGN, IMN, IOSP, KBR, LTM, MDCO, NCFT, NEWL, NILE, NPTN, NWBI, OTEL, OXM, PERI, PGEM, PGTI, QLGC, QNST, QRM, RCPI, REXX, RGDX, RNDY, RSH, SAGE, SCL, SCVL, SGRP, SILC, SKYW, SMLR, SRDX, TCS, TELK, TILE, TLYS, TNAV, TNDM, TOPS, TORM, TR, TRC, TRMR, TROV, TTS, TWI, UNIS, USMD, VSAR, VVI, WWW, ZGNX, ZQK
ETFs that traded to 52 week highs: AFK, EWH, EWY, EZA, FXI, GXC, SLX, TLT, XLB
ETFs that traded to 52 week lows: TBT
11:31 am Continued recovery off morning lows -- Dow -16 has bounced 66 points off low, S&P -2.4, Nasdaq Comp -9.7 (:TECHX) :
11:31 am WPCS Intl provides shareholders with update on BTX Trader and launch of new digital currency product; BTX Trader appoints Clarity PR for public relations and social media marketing (WPCS) : Co provided shareholders with an update on its web and desktop multi-exchange Bitcoin trading platform, BTX Trader. Additionally, the co announced the launch of Celery, its new web-based cryptocurrency product committed to putting digital currency in the hands of ordinary consumers.
- BTX Trader was acquired in Dec 2013 and had initially offered as a trading platform to enable Bitcoin traders and investors to access cryptocurrency market data as well as have the ability to execute orders from the top exchanges on a single application. Originally launched as beta on a downloadable desktop application in December 2013, today BTX Trader is accessible online with 5,000 users and over 1,500 unique visitors per month.
- BTX Trader was created as a leverageable software product for the development, testing and launch of other valuable products within the digital currency industry. Today, BTX Trader is pleased to announce the launch of Celery, the simplest and fastest way for consumers to buy their first digital currency, initially focused on Bitcoin and Dogecoin. Celery is the only hosted online wallet with direct bank transfers on the market that offers access to multiple types of digital currency.
- "In addition, we have recently engaged the services of Clarity PR for Public Relations and Social Media Marketing. The entire team at Clarity PR brings an extensive network and expertise within the digital currency industry needed to move our brand and technology forward. We look forward to reaching out to the digital currency community and sharing the value of our products and technology."
11:24 am Currency Commentary: DXY Battles 81 Resistance (:SUMRX) :
- The Dollar Index is battling resistance at the 81 level as markets prepare for a busy week. Friday will be one of the busiest days on record for economic data with Jobs, ISM, PCE Prices, Personal Income & Spending and Vehicle sales all due. The FOMC will hold a two day meeting with a statement coming on Wednesday but this is expected to be a relative non-event with another $10 bln taper. The release of the minutes in late August will garner greater interest for participants. This morning New Home Sales fell short of expectations while a preliminary look at Services PMI was in line.
- The euro has held the 1.3420 level and is working its way back higher as the dollar battles 81. Inflation data will be a key theme for the markets this week starting on Wednesday with Spain and Germany. Friday morning we will see revisions to PMI data that so far has outpaced expectations.
- The pound is hovering below the 1.70 level. Sterling has given up some of its recent gains after economic data saw a slow down from its recent recovery. This has led to some questions on how quickly the Bank of England will react. But sterling has not wandered to far away from the key level as it trades in the 1.6990 area.
- The yen has been unable to take advantage of the week equity markets as it remains in the low end of the 101 area. Yen remains in a tight range as a slew of key moving averages (20 sma 102.11, 50 sma 1020.05, 100 sma 102.04, 200 sma 101.79) all lie in this tight range (BONDX, FOREX).
11:13 am Another minor extension of recovery attempt -- Dow -37, S&P -5.6, Nasdaq Comp -19 (:TECHX) :
11:05 am Sify shareholders approve payment of maiden dividend of 10% (SIFY) : Co announced that further to the recommendation of the Board of Directors for payment of a maiden dividend of 10% on the Equity Shares and American Depository Shares for the year 2013-14, which is subject to the approval of the shareholders, the shareholders at the Annual General Meeting held on Monday, July 28, 2014 have approved the same.
- Dividend will be paid shortly to those shareholders whose names appear in the Register of Members of the company and Citibank Depository Register on the Record Date, June 20, 2014.
11:02 am Canadian Natl Rail says Canada's rail transportation system is ready for the new harvest (CNI) :
- Co said Canada's rail transportation system is ready to accommodate the new harvest with a solid throughput rate in line with the grain supply chain. The supply chain will also be able to address the excess carry-over from last year's extraordinary crop by as early as next spring.
- CN's run rate of spotting approximately 5,500 grain hopper cars per week since April 2014 has exceeded unconstrained orders placed by its customers, and its wait-list has declined significantly in the last few months due to a high level of order cancellations. As such, CN's wait-list now represents a normal level of only one week of shipments.
11:00 am Manhattan Bridge Capital resumed trading, shares trading lower by ~10% (LOAN) :
10:50 am Major averages edge up off morning lows -- Dow -48, S&P -7.4, Nasdaq Comp -24 (:TECHX) : Noted at 10:38 that new Nasdaq Comp and small-/mid-cap lows were not confirmed by the Dow/S&P with some upticks developing in recent trade. Relative sector strength on the bounce has been noted in: Retail XRT, Discretionary XLY, Internet FDN, Medical Supplies, Health XLV, Technology XLK.
10:44 am Manhattan Bridge Capital (halted) prices public offering of 1,754,386 common shares at $2.85 per share (LOAN) : The gross proceeds to Manhattan Bridge Capital from the public offering are expected to be $5 mln before underwriting discounts and commissions and other expenses of the offering.
10:38 am New session low Nasdaq Comp -32 and small-/mid-caps but Dow -60 and S&P -9 did not confirm the new low (:TECHX) :
10:35 am Aetna and Geisinger Health System reach new agreement; financial terms not disclosed (AET) : Cos announced that they have signed a five-year contract that provides Aetna members with in-network access to all Geisinger facilities in Pennsylvania.
- The contract is the first direct, systemwide agreement between Aetna and Geisinger.
- Under the agreement, Geisinger also renewed its existing contract with Coventry, which was acquired by Aetna in 2013. Members of all Aetna and Coventry commercial plans will be able to receive care, at in-network benefits, from Geisinger Medical Center and its Geisinger-Shamokin Area Community Hospital campus, Geisinger Wyoming Valley Medical Center, Geisinger-Community Medical Center, Geisinger-Bloomsburg Hospital, and Geisinger- Lewistown Hospital.
- The agreement adds approximately 1,100 physicians to that network, and gives Aetna direct contracts with providers in all 67 Pennsylvania counties.
10:21 am Major averages hovering new fresh morning lows -- Dow -77, S&P -10, Nasdaq Comp -31 (:TECHX) : Relative sector weakness in recent trade (underperforming the S&P) include: Internet FDN, Retail XRT, Biotech IBB, Oil Service OIH, Housing XHB, Semi SMH, Bank KBE, Transports IYT, Rail, Disk Drive.
10:05 am Minor new lows for stock indices -- Dow -64, S&P -7.8, Nasdaq Comp -19 (:TECHX) :
10:01 am Trimas acquires Lion Holdings Pvt. Ltd. for $27 mln, paid in cash at closing and expands packaging footprint in Asia (TRS) : Co announced that it has acquired Lion Holdings Pvt. Ltd. for $27 mln, paid in cash at closing. The transaction closed July 25, 2014, at which time Lion Holdings became part of the Company's Packaging segment.
- Lion Holdings, headquartered in Greater Noida, India, specializes in the manufacture of highly engineered dispensing solutions. From its three locations in India and Vietnam, Lion Holdings generated ~$10 mln in revenue for the 12 months ended June 30, 2014.
9:56 am Major averages probe short term support zones (:TECHX) : The market quickly rotated lower after a slightly firmer start with the S&P reaching support from The Technical Take at 1970/1969 (session low 1970) in recent trade. The Nasdaq Comp held at first level support at 4435/4425 (session low 4429) while the Dow slightly exceeded support at 16916/16905 (session low 16899).
9:52 am Major averages extend pullback below Friday lows -- Dow -56, S&P -6.9, Nasdaq Comp -17.5 (:TECHX) :
9:49 am Semiconductor Hldrs ETF continues to weaken probes 50 day (SMH) : Noted relative weakness earlier with the SMH extending down to its 50 day ema (48.74) in recent trade (session low 48.68). Note that its 50 sma is at 48.59 with the bottom of its Mid-June gap at 48.37.
9:45 am Opening Market Summary: Stocks Register Opening Losses (:WRAPX) : The major averages began the day in the neighborhood of their flat lines. The S&P 500 hovers right below its unchanged level with seven sectors showing losses. Of the seven, the industrial space (-0.7%) is the weakest performer with its top component-General Electric (GE 25.46, -0.33)-trading lower by 1.3%.
On the upside, materials (+0.3%) and countercyclical telecom services (+0.2%) and utilities (+0.2%) hold slim gains.
Treasuries remain slightly lower with the 10-yr yield at 2.48%.
The Pending Home Sales report for June will cross the wires at 10:00 ET.
9:41 am Stock indices slip into the red after minor opening upticks -- Dow -10, S&P -1.1, Nasdaq Comp -3.4 (:TECHX) : Seeing relative weakness in Semi SMH/XSD and Housing XHB/ITB. Some relative strength in Casino (WYNN, MPEL, MGM, BYD, LVS, MGAM, MCRI, BYI), Natural Gas UNG, Coal KOL, Steel SLX.
9:38 am Mechel Steel, GS Global sign agreement for annual supply of 2.8 Million tonnes of coal (MTL) : Co reported signing a cooperation memorandum with South Korea's GS Global corporation, which provides for supplies of up to 2.8 million tonnes of steam coal and washed steam coal. According to the memorandum, Mechel Group will annually supply GS Global's facilities up to 2.8 million tonnes of coal products through its subsidiary Mechel Carbon Singapore. By the memorandum's terms, the Group in particular will supply up to 1.5 million tonnes of steam coal from the Elga deposit to GS Global's power stations, as well as up to 1 million tonnes of steam coal from the Elga deposit to Tongyang Cement & Energy, GS Global's subsidiary and leader of South Korea's construction industry.
9:35 am iSoftStone announces extraordinary general meeting of shareholders to be held on August 25, 2014 at 10:00 a.m. (Hong Kong time); proposal to authorize and approve the previously announced agreement and plan of merger between the Company, New iSoftStone Holdings Limited and New iSoftStone Acquisition Limited (ISS) :
9:29 am Manhattan Bridge Capital trading halted (news pending) (LOAN) :
9:27 am On The Wires (:WIRES) :
- Gladstone Land (LAND) has acquired 322 acres of vegetable farmland in Arvin, California, for $5.8 mln. Upon acquisition, the co assumed the in-place lease on the property, which expires in Oct 2015. Co also entered into a nine-year, follow-on lease agreement with a new tenant, Underwood Ranches, the exclusive grower of red jalapeno peppers for Sriracha hot sauce.
- Lionsgate (LGF) and Hulu have announced a deal for the new Manhattan series to stream exclusively on Hulu Plus the day after its WGN America Sunday night airing. Hulu has acquired exclusive subscription video-on-demand rights to the new series produced by Lionsgate, Skydance Television and Tribune Studios.
- Kips Bay Medical (KIPS), announced that on July 17, 2014, Lenox Hill Hospital in New York City performed its first implant of an eSVS Mesh.
- LabStyle Innovations (DRIO) has received approval from the Israeli AMAR for the marketing and sale of the Dario Smart Meter in Israel.
- Concur (CNQR) announced its Travel Management Company Preferred Partner program has grown by more than three-fold over the last twelve months.
9:26 am Zions Bancorp announces pricing of $525 mln common stock offering at $29.80/share (ZION) :
9:25 am VisionChina Media Partners with Huawei to expedite national mass transit WIFI network expansion (VISN) : Co announced it has formed a strategic partnership with Huawei Technology. Under the terms of the new strategic partnership, VisionChina Media and Huawei will initiate joint research and development regarding domestic mass transit WIFI and potential overseas mass transit WIFI cooperation. The co has also selected Huawei as its official supplier for customized and integrated WIFI technologies, including Huawei's Agile Network Solutions, to support the planned network.
9:22 am On The Wires (:WIRES) :
- Interval International, an operating business of Interval Leisure (IILG), announced the renewal of its affiliation with Windjammer Landing Villa Beach Resort & Spa, a mixed-use resort in St. Lucia, West Indies.
- InnerWorkings (INWK) has been selected as a global marketing partner of Sanofi (SNY). Co will oversee the creation, production, and management of Sanofi's worldwide promotional items, with a special focus on implementing high standards for corporate and social responsibility across global operations.
- UTC Aerospace Systems, a unit of United Technologies (UTX), announced that the ORS-1 satellite has entered its fourth year on orbit.
- MetLife (MET) and Norges Bank Investment Management announced that they have bought the One Beacon Street office building in Boston for ~ $561 mln.
- Ramius, the global investment arm of Cowen (COWN), filed a proxy statement with the SEC seeking shareholder approval to hire State Street Global Advisors, the asset management unit of State Street (STT), to serve as sub-advisor to the Ramius Trading Strategies Managed Futures Fund.
- Terreno Realty (TRNO) acquired an industrial property located in Kent, Washington on July 25, 2014 for a purchase price of ~ $2.8 mln.
- Streamline Health Solutions (STRM) announced the Sidney & Lois Eskenazi Hospital, Eskenazi Health located in Indianapolis, IN, has signed an agreement with Streamline Health to deploy its Looking Glass suite of business analytics solutions designed to capture, aggregate, and translate much of the disparate data residing across its enterprise.
- SSI recently partnered with JetBlue Airways (JBLU) to allow members of the airline's TrueBlueT loyalty program to join a new business research panel from SSI called the Points for Surveys panel.
- Starwood Hotels & Resorts Worldwide (HOT) announced that its Aloft brand will soon add a second hotel in Silicon Valley.
- BendixKing, a division of Honeywell (HON), announced the launch of AeroVue, a complete cockpit retrofit solution for King Air turboprop aircraft.
- Fortinet (FTNT) announced a comprehensive new technical certification program, the Network Security Expert.
9:15 am Raytheon: William Swanson to retire as Chairman of the Board of Directors; Thomas Kennedy elected Chairman of effective October 1, 2014 (RTN) :
- Co has elected Thomas A. Kennedy as Chairman of the Board of Raytheon Company effective October 1, 2014. This action follows notice to the Board by William H. Swanson, Raytheon's current Chairman of the Board, of his retirement from the Company effective September 30, 2014.
- Swanson has served as Chairman of the Board since January 2004. He joined Raytheon Company in 1972 and has served in a wide range of leadership positions, including as the Company's Chief Executive Officer from July 2003 to March 2014.
- Kennedy previously served as executive vice president and chief operating officer of Raytheon from April 2013 to March 2014
9:10 am S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +4.70. (:WRAPX) : The stock market is on course for a quiet start to the trading week with the S&P 500 futures hovering less than two points above fair value. Index futures have maintained a narrow range overnight amid no market-moving developments taking place overseas.
Domestically, participants have received a handful of earnings, but none have come from market-moving companies. M&A activity, however, has been in focus with recent news indicating Zillow (Z 154.10, -4.76) will buy Trulia (TRLA 64.62, +8.27) for $3.50 billion in stock, which represents roughly a 25.3% premium to Friday's closing price.
Separately, Dollar Tree (DLTR 60.25, +6.08) has agreed to acquire Family Dollar (FDO 75.02, +14.36) for $74.50/share, representing a 22.8% premium to Friday's closing price.
There was no economic data reported ahead of the open, but the Pending Home Sales report for June (Briefing.com consensus -0.8%) will be released at 10:00 ET.
Treasuries hold slim losses with the 10-yr yield up one basis point at 2.48%.
9:10 am Old Ntnl Bancorp strengthens its position in West Michigan with Grand Rapids-based Founders Bank & Trust pending acquisition; includes four banking centers, nearly $466 mln in total assets (ONB) : Cos jointly announced the execution of a definitive agreement under which Old National will acquire Founders through a stock and cash merger.
- Continues strategy of MSA expansion by introducing ONB to Grand Rapids, 2nd largest city in Michigan
- Includes four banking centers, nearly $466 mln in total assets, $355 mln in loans, $378 mln in deposits and nearly $353 mln of trust assets under management
- Founded in 1991, Founders has produced 78 consecutive profitable quarters; significant noninterest income generated from strong Wealth Management and Residential Mortgage business units
- Announcement to be marked by a $15K donation to the Grand Rapids Community Foundation
9:08 am Duke Energy: Duke Energy Progress to purchase NCEMPA generation assets (DUK) : The co announced its board has approved an agreement to purchase the North Carolina Eastern Municipal Power Agency's ownership in certain generating assets.
- The purchase price for NCEMPA's ownership interest in the plants, fuel inventories, and spare parts inventory is $1.2 billion.
- Under the agreement, the co and NCEMPA will enter into a 30-year wholesale power supply agreement to continue meeting the needs of NCEMPA customers currently served by the power agency's interest in Duke Energy Progress' plants.
9:03 am Syneron Medical announces CE Mark for PicoWay dual wavelength Picosecond Laser for tattoo removal and treatment of pigmented lesions (ELOS) : Co announced that its new PicoWay device has received CE Mark indication to treat tattoos of all types and colors and pigmented lesions on any skin type.
- Syneron will begin a staged launch of the PicoWay device in the international market during the third quarter of 2014 and anticipates that it will receive FDA clearance for PicoWay by the end of 2014.
9:02 am Federated National revised timing of release Q2 results to July 29, 2014 at 8am ET (previously was scheduled July 29 after close) (FNHC) :
9:01 am Access Midstream Partners increases quarterly cash distribution by 3.5% to $0.595 per common unit from $0.575 per unit (ACMP) :
9:01 am Digital Power Corporation awarded $2 mln defense export order (DPW) : Co announced that its wholly-owned subsidiary, Digital Power Limited, has secured a $2 mln order from the Republic of Korea to provide uninterruptible power supply systems to be fitted to Military Afloat Reach and Sustainability tankers being built by Daewoo Shipbuilding and Marine Engineering.
9:00 am Quidel receives FDA clearance for its hand-held molecular diagnostic test for Group A Strep (QDEL) : Co announced that it has received clearance from the FDA to market its AmpliVue GAS Assay for the qualitative detection of Group A -hemolytic Streptococcus nucleic acids isolated from throat swab specimens obtained from patients with signs and symptoms of pharyngitis.
9:00 am Standard Register secures multimillion dollar contract with CareSource (SR) : Co announced it has signed a three-year, multimillion dollar contract with CareSource for the management of communication workflows and production of external information.
8:59 am S&P futures vs fair value: +1.90. Nasdaq futures vs fair value: +6.70. (:WRAPX) : The S&P 500 futures trade two points above fair value.
Markets in Asia ended on a mixed note, but indices in China and Japan rallied. Tradable news and data were absent from the calendar.
- Japan's Nikkei rallied 0.5% to its best close in more than six months. Casino-related names outperformed as Japan Cash Machine and Universal Entertainment Corp. gained 5.3% and 2.5%, respectively.
- Hong Kong's Hang Seng added 0.9%, climbing for a fifth straight session and finishing at its best level since November 2010. Financials saw solid gains with Bank of Communications adding 6.2% on reports Beijing will allow more private capital to flow into the economy.
- China's Shanghai Composite jumped 2.4% to its best level in more than seven months. Financials led the way as Bank of Communications finished limit up, 10%, and Industrial & Commercial Bank of China rose 2.3%.
- Economic data was limited to just one item:
- Italy's Business Confidence ticked down to 99.7 from 99.9 (expected 99.9)
- In France, the CAC is higher by 0.2% with drug maker Sanofi in the lead. The stock trades higher by 0.9%. Consumer names also display strength with Danone, L'Oreal, and Pernod Ricard up between 0.2% and 0.5%.
- Great Britain's FTSE hovers just above its flat line. Reckitt Benckiser leads with a gain of 2.7% after announcing plans to spin off its pharmaceutical business. On the downside, Aberdeen Asset Management is lower by 3.2%.
- Germany's DAX is lower by 0.1% with exporters on the defensive. Daimler and Volkswagen hold respective losses of 2.8% and 1.9%. Drug makers outperform with Bayer and Merck up 1.3% and 2.3%, respectively.
- Italy's MIB trades down 0.2%. Financials lag with Banco Popolare, BMPS, Mediobanca, and UBI Banca down between 1.3% and 2.0%.
8:56 am PMFG Inc confirmed on Friday it entered into an agreement with Cannell Capital (PMFG) : PMFG appoints Charles M. Gillman and Kenneth H. Shubin Stein to Board of Directors In connection with today's announcement, PMFG entered into an agreement with Cannell Capital LLC and a group of PMFG stockholders that had previously nominated Mr. Gillman and Dr. Shubin Stein to be elected to the Board at PMFG's 2014 annual meeting of stockholders. Under the agreement, the Group has agreed to withdraw its nominations and vote all shares held by the Group in favor of all of the Board's director nominees at the 2014 annual meeting.
8:56 am Diana Containerships beats by $0.01, beats on revs; announces $92 mln private placement of common shares to a group of investors including Diana Shipping (DSX), at-the-market offering update (DCIX) : Reports Q2 (Jun) earnings of $0.02 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.01; revenues rose 2.5% year/year to $12.5 mln vs the $12.06 mln consensus.
- Vessel operating expenses = $6.2 mln.
- On July 28, 2014, the Co entered into an agreement to sell 36,653,386 shares of its common stock in a private placement to a group of investors including Diana Shipping (DSX), unaffiliated institutional investors, and the Company's Chairman and Chief Executive Officer, Mr. Symeon Palios, and a member of his family, along with other members of the Co's senior management, at a purchase price of $2.51 per share, for expected proceeds of ~$92 mln.
- Time charter revenues, net of prepaid charter revenue amortization, were $12.5 mln for Q2 of 2014, compared to $12.2 mln for the same period of 2013, mainly due to increased average time charter rates achieved, despite the decrease in ownership days in 2014 compared to 2013, resulting from the disposal of five vessels from May 2013 to February 2014, which was partly offset by the addition to the Co's fleet of two vessels in August and September 2013, respectively.
- The Co does not expect to sell additional shares under its existing at-the-market offering with Deutsche Bank Securities Inc., as sales agent, until there is a significant improvement in the containership market
8:52 am On The Wires (:WIRES) :
- CIT Group (CIT) provided a senior secured credit facility to support Rosser Capital Partners' significant investment in PetPeople. Terms of the transaction were not disclosed.
- UBIC (UBIC) has obtained an additional patent related to its predictive coding technology. The patent number 5567049 was assigned by the Japan Patent Office and this patent was issued on June 27, 2014.
- Whitestone REIT (WSR) announced the opening of five new tenants at The Shops at Starwood, located in Frisco, Texas.
- FuelCell Energy (FCEL) identified New Haven, Connecticut as the second installation site for the previously announced 5.6 MW in projects purchased by United Illuminating, a subsidiary of UIL Holdings (UIL).
- Pacific Ethanol (PEIX) was awarded a $3 mln matching grant from the California Energy Commission to develop a sorghum feedstock program collaboratively with Chromatin, CSU Fresno's Center for Irrigation Technology and the Kearney Agricultural Research and Extension Center.
- VimpelCom (VIP) announced that VimpelCom shareholders approved all agenda items at its Annual General Meeting of Shareholders held today in Amsterdam. In particular, the co's shareholders elected the 9 members of the Supervisory Board, out of 11 nominees.
- UBIC (UBIC) obtained two Japanese patents on July 4, 2014, concerning the "Review Heat Map", a screen display of the quality of a user's document reviews that is built upon the "Lit i View" data analysis platform.
- FEI (FEIC) announced two new products for cryo-electron microscopy applications: a new phase plate solution and the Titan Halo transmission electron microscope.
8:52 am Medbox secures financing to fund growth; investors agreed to purchase, in a private placement transaction, convertible debentures in the aggregate principal amount of $3 mln, in three tranches, each in the amount of $1 mln (MDBX) : Co announced that it has entered into a securities purchase agreement with accredited investors pursuant to which the Company agreed to sell, and the investors agreed to purchase, in a private placement transaction, convertible debentures in the aggregate principal amount of $3 mln, in three tranches, each in the amount of $1 mln.
- The initial closing under the Purchase Agreement, for Debentures in the aggregate principal amount of $1 mln, occurred on July 21, 2014.
- Medbox intends to use the net proceeds to accelerate the development and growth of its current business pipeline in key target markets within the U.S. In addition, the Company intends to apply a portion of the net proceeds for general corporate purposes, which may include working capital, continued investment in geographic expansion, as well as research and development.
8:50 am Market View: Sep. index futures move to the best levels of the morning in recent pre-market trading (:TECHX) :
- ESu4 now @ 1974.00 +2.50
- YMu4 now @ 16905 +14
- NQu4 now @ 3964.25 +8.75
8:41 am European Markets Update: CAC +0.2%, FTSE UNCH, DAX -0.1%, MIB -0.2% (:SUMRX) : Major European indices trade little changed with markets in Italy (-0.2%) and Spain (-0.2%) showing relative weakness. Of note, Moody's raised Portugal's sovereign rating to Ba1 from Ba2 with a 'Stable' outlook.
- Economic data was limited to just one item:
- Italy's Business Confidence ticked down to 99.7 from 99.9 (expected 99.9)
- In France, the CAC is higher by 0.2% with drug maker Sanofi in the lead. The stock trades higher by 0.9%. Consumer names also display strength with Danone, L'Oreal, and Pernod Ricard up between 0.2% and 0.5%.
- Great Britain's FTSE hovers just above its flat line. Reckitt Benckiser leads with a gain of 2.7% after announcing plans to spin off its pharmaceutical business. On the downside, Aberdeen Asset Management is lower by 3.2%.
- Germany's DAX is lower by 0.1% with exporters on the defensive. Daimler and Volkswagen hold respective losses of 2.8% and 1.9%. Drug makers outperform with Bayer and Merck up 1.3% and 2.3%, respectively.
- Italy's MIB trades down 0.2%. Financials lag with Banco Popolare, BMPS, Mediobanca, and UBI Banca down between 1.3% and 2.0%.
8:36 am Nova Lifestyle announces progress on its e-commerce and digital initiatives; developments include announcement that co plans to launch a new mobile device application in Q4 of fiscal 2014 (NVFY) : Co announced key milestones in the progress on its e-commerce and digital initiatives.
- Securing letters of intent from over 100 quality furniture brands, signaling their intention to make their brands and products available on the cos dedicated e-commerce website, which will exclusively offer furniture and home furnishings.
- The co plans to launch a new Mobile Device Application in the fourth quarter of fiscal 2014
8:34 am Scorpio Tankers misses by $0.02, misses on revs; co announces new $150 mln stock buyback program (STNG) : Reports Q2 (Jun) loss of $0.06 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of ($0.04); revenues rose 11.5% year/year to $57.4 mln vs the $63.48 mln consensus.
- On July 28, 2014, the Board of Directors approved a new stock buyback program with authorization to purchase up to $150 million of shares of the Company's common stock. This program replaces the Company's stock buyback program that was previously announced in June 2014, which is being terminated effective immediately.
- In July 2014, the Co extended the time charter on an LR2 tanker that is currently time chartered-in. The term of the agreement is one year at $17,550 per day beginning in September 2014.
- In June 2014, the Company extended the time charter on an LR2 tanker that is currently time chartered-in. The term of the agreement is for six months at $15,500 per day beginning in July 2014.
- In May 2014, the Company extended the time charters on two Handymax tankers that are currently time chartered-in. The term of the each agreement is for one year at $13,550 per day beginning in July 2014.
- In April 2014, the Company extended the time charter on an MR tanker that is currently time chartered-in. The term of the agreement is for one year at $14,850 per day beginning in May 2014. The Company has options to extend the charter for up to two consecutive one year periods at $15,200 per day and $16,200 per day, respectively.
8:33 am Mercury General beats by $0.13, beats on revs (MCY) : Reports Q2 (Jun) operating earnings of $0.83 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 5.0% year/year to $698.8 mln vs the $688.77 mln consensus.
8:32 am Egalet appoints Jeffrey Dayno, as Chief Medical Officer (EGLT) : Co announced the appointment of Jeffrey Dayno, M.D. as CMO. Dr. Dayno will be responsible for leading Egalet's clinical development programs as well as overseeing the activities in regulatory affairs, pharmacovigilance and medical affairs. Dr. Dayno will begin July 31.
- He most recently served as vice president, global medical affairs, at ViroPharma (VPHM), a pharmaceutical company which was bought by Shire in 2014, where he was a member of several senior R&D leadership teams. Prior to joining ViroPharma, Dr. Dayno held the position of chief medical officer for Labopharm, (DDSS) a Canadian biotechnology company, where he oversaw all of the R&D activities and gained valuable experience working in the area of abuse-deterrent opioid product development.
8:31 am Becton Dickinson: new chlamydia and gonorrhea assays on the BD Viper LT System receive FDA 510k clearance (BDX) : Co announced it has received 510(k) clearance from the FDA for the BD ProbeTec Chlamydia trachomatis Qx Amplified DNA Assay and the BD ProbeTec Neisseria gonorrhoeae Qx Amplified DNA Assay on the BD Viper LT System.
8:31 am Trulia: Zillow Announces Acquisition of Trulia for $3.5 Billion in Stock; roughly $68.37 per share based on this morning's Z price (Z halted) (TRLA) : Zillow (Z) announced that it has entered into a definitive agreement to acquire TRLA for $3.5 billion in a stock-for-stock transaction.
- Trulia shareholders will receive 0.444 shares of Class A Common Stock of Zillow for each share of Trulia, and will own approximately 33% of the combined company at closing.
- The Boards of Directors of both companies have approved the transaction, which is expected to close in 2015. The combined company will maintain both the Zillow and Trulia consumer brands
- Current Zillow holders of Class A Common Stock and Class B Common Stock will receive one comparable share of the combined company at closing, and will represent approximately 67% of the combined company. The transaction assumes Trulia's convertible notes will be assumed by the combined company at closing.
- The value of the deal represents a premium of 25% to Trulia's closing price on July 25, 2014.
8:31 am Barnwell Industries, Inc. announces receipt of funds from sale of investment (BRN) : Co announced today that it received $2,640,000, net of minority interest, for the sale of its interest in Hualalai Resort.
- Kaupulehu Investors, LLC, a subsidiary of the company, recently entered into agreements pursuant to which the company will receive $2,720,000 for the sale of their interest in Hualalai Resort to an independent third party.
- The co has received all of the consideration except $80,000, which is subject to a holdback for PUC approval of the sale of a utility.
- The company will recognize a gain on this transaction in the company's quarter ending September 30, 2014.
- The company still has continuing long-term interests in lands adjacent to Hualalai Resort
8:30 am JGWPT Holdings names Stewart Stockdale as its new Chief Executive Officer and Director; appoints Alexander Castaldi as Chairman of the Board (JGW) : Co announced Stewart Stockdale has been named Chief Executive Officer and Director effective immediately. He succeeds David Miller who has resigned. The Company also announced today that the Board of Directors elected Alexander Castaldi as Chairman of the Board. He has been a director of the company since 2005 and has been a Managing Director at JLL Partners for the last eleven years.
- Stockdale was President, Global Consumer Financial Services for The Western Union Company (WU), a segment that represented ~90% of the company's revenues. GCFS consists of Western Union's Money Transfer and Consumer Payments businesses across five global regions.
8:27 am S&P futures vs fair value: -0.80. Nasdaq futures vs fair value: flat. (:WRAPX) : U.S. equity futures continue to drift near their flat lines, which has been the case for the duration of pre-market action. The S&P 500 futures have spent the past two hours in a two-point range and have not made a move larger than five points at any point during the night.
The lack of overnight movement reflects the lack of market-moving developments overseas. Domestically, the early action has been equally quiet with the exception of news regarding an acquisition in the specialty retail space. To that point, Dollar Tree (DLTR 59.25, +5.03) has agreed to acquire Family Dollar (FDO 75.65, +14.99) for $74.50/share, which represents a 22.8% premium to Friday's closing price.
8:24 am Sept crude oil futures just inched lower to a new LoD of $101.27/barrel, now -0.7% at $101.33/barrel despite geopolitical tensions (:COMDX) :
8:22 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance: CRNT -6.2% (also announces public offering of its ordinary share), SOHU -5.6%, HIHO -4.2%, SKYW -3.6%, TSN -1.4%, CYOU -0.6%, CMI -0.5%, TGE -0.4%.
M&A news: DG -2.9% (potentially related to FDO/DLTR news, less likely to be acquired), BRKR -2.6% (announces acquisition of Vutara)
Select solar names showing weakness after news that US has decided on new anti-dumping duties on imports of solar products from China: JKS -4.1%, YGE -4%, CSIQ -3.4%, JASO -2.5%, TSL -2.3%.
Other news: HZNP -36% (disclosed that it has been notified that in August 2014 CVS Caremark (CVS) and Express Scripts (ESRX) expect to announce DUEXIS and VIMOVO will no longer be on their formularies), ACRX -26.8% (receives Complete Response Letter from FDA for New Drug Application for Zalviso), JMEI -8.3% (no known catalyst, pulling back following recent strength), TRLA -5.1% (cautious Citron report out over the weekend), RBS -3.1% (plans to sell Ulster Bank stake, according to reports), BIOD -2.9% (enters into $15 mln equity commitment with Lincoln Park Capital), YNDX -1.8% (Russian Micex down 1%), BLDR -1.7% (negative mention Mad Money), CCL -1.1% (still checking), SDRL -0.9% (announces result of voluntary incentive offer to convert the $650 mln of 3.375% 2017 convertible bond), DNKN -0.7% (negative mention Mad Money), Z -0.6% (cautious Citron report out over the weekend), BSX -0.5% (JNJ and BSX dispute over deal to go to trail, according to reports), .
Analyst comments: TRP -1.5% (downgraded to Neutral from Outperform at Credit Suisse), MNST -1.4% (downgraded to Neutral from Buy at UBS), PCG -1.2% (upgraded to Buy from Neutral at Goldman), CSCO -0.9% (downgraded to Sector Perform from Outperform at Pacific Crest), EE -0.9% (downgraded to Hold from Buy at Jefferies), PFE -0.5% (downgraded to Mkt Perform from Outperform at BMO Capital Mkts), COG -0.4% (downgraded to Perform at Oppenheimer).
8:21 am On The Wires (:WIRES) :
- ACI Worldwide (ACIW) announced that Ohio-based Franklin University has selected ACI to power its online payments.
- Cypress Semiconductor (CY) announced that Raytrix GmbH has selected Cypress's EZ-USB CX3 USB 3.0 camera controller for its new 3-D camera.
- Tetraphase Pharma (TTPH) has completed patient enrollment in IGNITE 1, its Phase 3 clinical trial evaluating the safety and efficacy of eravacycline in the treatment of complicated intra-abdominal infections. The co expects to report top-line results from IGNITE 1 in early first quarter 2015.
- NCR (NCR) is piloting a dynamic branch transformation solution with San Antonio Federal Credit Union to modernize and automate non-cash branch transactions.
- ClickSoftware Technologies (CKSW) announced that one of the world's largest retail chains has selected ClickSoftware's cloud-based solutions for capacity planning and scheduling for its in-store workforce.
8:20 am Rock-Tenn announces a two-for-one stock split (RKT) : Co announced that its Board of Directors has authorized a two-for-one stock split of its Class A common stock to be effected through a 100% stock dividend. Shareholders of record as of August 12, 2014, will receive one additional share of Common Stock for each share they hold on that date. The distribution date for the stock split will be August 27, 2014.
8:15 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance: ACW +8.7%, RYAAY +4.9%, RPM +2.1%.
M&A news: FDO +24.3% (Dollar Tree (DLTR) will acquire Family Dollar in a cash and stock transaction),DLTR +8.8%.
Other news: XGTI +25.1% (awarded subcontract by CACI (CACI) on Multiple-Award Contract to provide communications and networking services to U.S. Army),LOCO +7.4% (continued momentum from last weeks IPO),KNDI +3.3% (strong Shanghai market overnight),FSLR +2.8% (co and and XSOL establish supply agreement in Japan),ADXS +2.4% (receives notice of allowance for cancer immunotherapies patent in Japan),OMER +2.3% (positive mention Mad Money),GLPI +1.7% (positive mention Mad Money),PT +1.3% (Moody's upgrades Portugal's government bond rating),ACH +1.3% (still checking),PLUG +1.3% (continued momentum),CYRN +0.9% (confirms terms of registered direct offering of ordinary shares and warrants),FTR +0.7% (FCC approves Frontier's acquisition of AT&T's (T) Connecticut wireline operations),GSK +0.7% (indicated its possible to spin off consumer division, according to reports ).
Analyst comments: NERV +3.4% (initiated with a Buy at Jefferies, with a Outperform at Robert W. Baird),WCG +3.1% (upgraded to Buy from Neutral at Goldman),JNPR +2.1% (upgraded to Outperform from Mkt Perform at Bernstein),XRX +1.1% (upgraded to Neutral from Underweight at JP Morgan)
8:09 am ViaSat acquired high-rate modem product line and spacecraft technologies for earth observation from Gray Labs; no financial terms disclosed (VSAT) :
8:08 am Yingli Green Energy confirms U.S. Department of Commerce's preliminary decision on anti-dumping tariffs for certain imported solar products; says 'this determination will increase the price of solar energy in America' (YGE) : Co commented on the preliminary anti-dumping duty tariff decision by the U.S. Department of Commerce regarding the import of certain solar PV products assembled in China using components from a third country. According to the decision, co and its affiliates will be considered part of the Separate Rates Group and will be subject to a preliminary anti-dumping tariff of 42.33% on certain PV solar module imports.
- "Unfortunately, this determination will increase the price of solar energy in America, severely jeopardizing the U.S. solar industry's tremendous progress in cost competiveness and affordability when compared with traditional energy sources. While we have fully cooperated throughout this investigation and were prepared for this preliminary decision, we ask that our industry comes together to resolve this dispute and focus on the growth of the promising American market. We remain committed to the U.S. solar market and will continue to support our partners and projects."
- When combined with the previously announced preliminary countervailing duty tariff, Yingli's combined tariff rate on imported PV modules assembled in China, but containing cells manufactured in a third country from certain Chinese components, is 47.27%. Both the AD and CVD tariff determinations for all solar products covered by these petitions are preliminary, and may be revised once the ITC completes its investigation. The final AD and CVD determination is expected before the end of 2014, and the final ITC determination is expected in early 2015.
8:05 am Superior Ind urges shareholders to vote the white proxy card in connection with August 15 annual meeting of shareholders (SUP) : "The Board of Directors of Superior Industries International, Inc. urges all shareholders to sign and return the enclosed white proxy card today and vote for all four of your board's highly qualified and very experienced nominees -- Paul J. Humphries, James S. McElya, Donald J. Stebbins and Francisco S. Uranga -- standing for election at the Annual Meeting of Shareholders to be held on Friday, August 15, 2014...We remain very disappointed that GAMCO is forcing upon Superior a costly and distracting proxy contest that seeks to replace three highly qualified and valued members of your Board with its own candidates, who have no executive-level manufacturing or relevant automotive industry experience whatsoever."
8:05 am Jazz Pharma: CANbridge Life Sciences And EUSA Pharma form agreement to commericalize caphosol in China (JAZZ) :
- CANbridge Life Sciences, a biopharmaceutical company focused on developing Western drug candidates in China and North Asia, has entered into an exclusive partnership with EUSA Pharma, a Jazz Pharmaceuticals company (JAZZ), to commercialize Caphosol in China.
- Under the terms of the agreement, CANbridge obtains exclusive rights to commercialize Caphosol in China, where over 3.5 million new cancer cases are diagnosed each year, and there is little in the way of a standard adjunct therapy to treat oral mucositis.
8:04 am Accuride beats by $0.11, reports revs in-line; raises FY14 revs in-line (ACW) : Reports Q2 (Jun) earnings of $0.11 per share, $0.11 better than the Capital IQ Consensus Estimate of ($0.00); revenues rose 0.9% year/year to $181.6 mln vs the $180.93 mln consensus.
- Co issues raised guidance for FY14, sees FY14 revs of $675-700 mln from $650-685 mln vs. $684.47 mln Capital IQ Consensus Estimate.
- Adjusted EBITDA improved year-over-year to $23.2 mln, or 12.8 percent of net sales, compared to $17.8 mln, or 9.9 percent of net sales, in the same quarter of 2013. As of June 30, 2014, Accuride had $31.9 mln of cash plus $40.1 mln in availability under its ABL Credit Facility, for total liquidity of $72.0 mln. Guidance Details:
- "Based on the expectation of continued strengthening in our commercial vehicle end markets and additional incremental new business, we are increasing our guidance range for 2014 net sales to $675 mln to $700 mln. We also are increasing our full-year Adjusted EBITDA guidance range by $10 mln to $70 mln to $80 mln, due primarily to the impact of expected increase in net sales and business unit operating improvements." This revised 2014 guidance is based on projected North American Class 8 production levels in the range of 280,000 to 290,000 units, North American Class 5-7 production levels in the range of 210,000 to 215,000 units and North American Trailer production in the range of 250,000 to 260,000 units. Accuride expects net sales for its Brln business unit to be approximately five percent higher than 2013, while its end markets are still not expected to recover until 2015-16."
8:04 am SunPower closes agreement for up to $44.5 million in non-recourse debt to finance residential solar lease program (SPWR) : Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) and SunPower Corp. (SPWR) announced an agreement under which HASI is expected to provide up to $44.5 million in non-recourse debt to help finance SunPower's residential solar lease program. The transaction allows SunPower to leverage existing lease assets and expand its program while increasing its cash position and strengthening its balance sheet. This is the second transaction announced by the two companies this year. In early April, Hannon Armstrong and SunPower announced a $42 million non-recourse debt financing.
8:03 am Celsion announces updated overall survival data from HEAT study of ThermoDox in primary liver cancer; latest data sweep from a 285 patient subgroup shows a 57% improvement in overall survival (CLSN) : Co announced updated results from its retrospective analysis of the company's 701-patient HEAT Study of ThermoDox, Celsion's proprietary heat-activated liposomal encapsulation of doxorubicin, in combination with radiofrequency ablation in primary liver cancer, also known as hepatocellular carcinoma.
- As of June 30, 2014, the latest quarterly Overall Survival analysis demonstrated that in a large, well bounded, subgroup of patients (n=285, 41% of the study patients), the combination of ThermoDox and optimized RFA provided a 57% improvement in OS compared to optimized RFA alone.
- The Hazard Ratio at this analysis is 0.639 (95% CI 0.419 -- 0.974) with a p-value of 0.037.
- As of June 30, 2014, data from the latest HEAT Study post-hoc analysis continued to strongly suggest that ThermoDox may significantly improve OS compared to a
RFA control in patients whose lesions undergo RFA treatment for 45 minutes or more.
- The company notes that, while the data and supporting analysis from the HEAT Study warrant additional clinical development, the information should be viewed with caution since it is based upon a retrospective analysis and this subgroup of the HEAT Study has not reached its median point for OS analysis.
8:03 am Tenneco beats by $0.17, beats on revs (TEN) : Reports Q2 (Jun) earnings of $1.45 per share, $0.17 better than the Capital IQ Consensus Estimate of $1.28; revenues rose 8.4% year/year to $2.24 bln vs the $2.2 bln consensus.
- For the third quarter, global light vehicle production is forecasted to increase 5% year-over-year in the regions where Tenneco operates. The increase includes a 9% increase in North America, 11% in China and 9% in India. Europe is forecasted to be flat, and South America is expected to decline 12%.
- Tenneco expects its light vehicle revenue in the third quarter to grow in line with the forecast for global industry light vehicle production. Significant growth will continue in Tenneco's commercial truck and off-highway business as revenue is expected to increase 20% to 25% in the third quarter against a strong year-over-year comparison.
- The company is launching new business and incremental content on existing platforms to meet off-highway regulations in North America and Europe and expects higher commercial truck revenue in China.
- The global aftermarket is expected to be steady with the third quarter of last year.
- "I am pleased with our performance in the first half of the year and expect volume strength and our manufacturing performance to continue driving profitable growth in the third quarter. We are capitalizing on a strong global light vehicle production environment, our commercial truck and off-highway business continues to expand with excellent growth, and we expect a solid contribution from the global aftermarket."
8:03 am Exceed intends to further adjourn extraordinary general meeting of shareholders (EDS) : Co announced that it intends to further adjourn its extraordinary general meeting of shareholders that was called to authorize and approve the proposed Agreement and Plan of Merger, dated December 2, 2013.
- The extraordinary general meeting was originally scheduled to take place in Hong Kong on April 16, 2014. It was subsequently adjourned to July 29, 2014 following Mr. Lin's advice to the Company that he required additional time to obtain the contemplated financing for the proposed transaction.
- At the extraordinary general meeting, shareholders will consider and vote on the proposal to authorize and approve the Merger Agreement.
- On July 28, 2014, the independent committee and the board of directors of the Company determined that a further adjournment of the meeting would be in the best interests of its shareholders because Mr. Lin had advised the Company that he required additional time to obtain the contemplated financing for the proposed transaction.
- The Company intends to hold the extraordinary general meeting of shareholders on July 29, 2014 but to immediately adjourn the meeting without conducting any business.
8:02 am ResMed receives permanent injunction against APEX in Germany, continues enforcement of patents in Europe (RMD) : Co has won a permanent injunction in Germany against Taiwanese medical device manufacturer APEX Medical Corp, prohibiting sales of infringing headgear used on APEX WiZARD 210 and 220 masks.
- The judgment was entered by the Regional District Court in Munich, is appealable, and applies throughout Germany.
- The co has also filed separate patent infringement lawsuits in the same court seeking damages and permanent injunctions to stop infringement of other ResMed
- The trials of those cases will occur in the fall of 2014.
8:02 am Concord Medical Services declares special dividend of $0.30/share payable on September 30, 2014, to shareholders of record at the close on August 8, 2014 (CCM) :
8:02 am Select Income REIT reports FFO in-line, beats on revs (SIR) : Reports Q2 (Jun) adj. funds from operations of $0.72 per share, in-line with the Capital IQ Consensus of $0.72; revenues rose 23.3% year/year to $56.6 mln vs the $55.47 mln consensus.
"Select Income REIT generated solid results across the board in the second quarter, reporting increased occupancy, while also maintaining its track record of strong double digit leasing/rent reset increases in Hawaii. Additionally, we acquired two mainland properties and better positioned the company for continued growth by substantially lowering leverage through our May 2014 equity offering."
7:57 am S&P futures vs fair value: -2.40. Nasdaq futures vs fair value: -4.30. (:WRAPX) : U.S. equity futures trade little changed amid subdued action overseas. The S&P 500 futures hover two points below fair value.
Reviewing overnight developments:
- Asian markets ended higher. Japan's Nikkei +0.5%, Hong Kong's Hang Seng +0.9%, and China's Shanghai Composite +2.4%
- There was no economic data reported on Monday
- In news:
- Chinese equities benefitted from speculation about potential stimulus measures being deployed by Beijing.
- In Japan, the approval rating of Prime Minister Shinzo Abe's cabinet fell below 50% for the first time since taking office, according to Nikkei.
- Major European indices trade little changed. Germany's DAX -0.2%, Great Britain's FTSE +0.1%, and France's CAC +0.2%. Elsewhere, Italy's MIB -0.3% and Spain's IBEX -0.4%
- Economic data was limited:
- Italy's Business Confidence ticked down to 99.7 from 99.9 (expected 99.9)
- Among news of note:
- Moody's raised Portugal's sovereign rating to Ba1 from Ba2 with a 'Stable' outlook.
- Economic data was limited:
- Cisco Systems (CSCO 25.75, -0.22): -0.9% after being downgraded to Sector Perform from Outperform at Pacific Crest.
- Family Dollar (FDO 75.25, +14.71): +24.1% after agreeing to be acquired by Dollar Tree (DLTR 57.86, +3.64) for $74.50/share, representing a 22.8% premium to Friday's closing price. Peer Dollar General (DG 54.00, -1.61) holds a pre-market loss of 2.9%.
- Sohu.com (SOHU 56.30, -1.10): -1.9% after beating earnings estimates on below-consensus revenue.
- Tyson Foods (TSN 39.85, +0.31): +0.8% after reporting a top-line beat on below-consensus earnings.
7:51 am Ceragon announces public offering of its ordinary shares (CRNT) : Co announced that it is offering to sell its ordinary shares in an underwritten public offering. Needham & Company is acting as lead book-running manager with Oppenheimer & Co. Inc. as co-book runner on the offering. Ceragon intends to use the net proceeds of the offering for general corporate purposes.
7:47 am On The Wires (:WIRES) :
- Superior Uniform (SGC) has retained Halliburton Investor Relations, a Dallas-based, full-service investor relations firm, to assist the co with its investor relations program.
- Carmike Cinemas (CKEC) announced the opening of the new Chantilly 13 entertainment complex featuring the 'BigD' premium experience in Montgomery, Alabama.
- China BAK Battery (CBAK) has reached a strategic cooperation agreement with Dalian Institute of Chemical Physics of Chinese Academy of Sciences. The two parties will jointly research and develop the next-generation key technologies and materials in power battery with an aim to produce the most powerful battery worldwide. In addition, CBAK and DICP will join hands in training technical talents in China's power battery industry so as to further promote the industrial development.
- HP Enterprise Services announced the city of Anaheim, Calif., has signed a $55.8 mln agreement for HP (HPQ) to continue managing the city's information technology environment.
7:46 am RPM International announces agreement in principle to resolve asbestos personal injury claims; contributions to the trust total $797.5 mln and are expected to be tax deductible (RPM) :
- Co announced an agreement in principle with the official representatives of current and future claimants that would resolve all present and future asbestos personal injury claims related to Bondex International and other related entities.
- The agreement in principle contemplates the filing of a plan of reorganization with the United States Bankruptcy Court in Delaware. The plan will be subject to approval of the claimants, as well as the U.S. Bankruptcy Court and U.S. District Court.
- Under the terms of the agreement in principle, a trust will be established under Section 524(g) of the United States Bankruptcy Code for the benefit of current and future asbestos personal injury claimants.
- Contributions to the trust total $797.5 mln and are expected to be tax deductible. RPM estimates the after-tax net present value of the contributions to be ~$485 mln.
- The co anticipates that the cash necessary to initially fund the trust will be provided from amounts available under its revolving credit facilities and available cash resources. However, depending upon market conditions, RPM may determine to finance all or a portion of the contributions through the debt capital markets
7:44 am Asian Markets Close: Nikkei +0.5%, Hang Seng +0.9%, Shanghai +2.4% (:SUMRX) :
- Markets ended mixed across Asia.
- Tradable news and data were absent from the calendar.
- Japan's Nikkei (+0.5%) rallied to its best close in more than six months. Casino-related names outperformed as Japan Cash Machine and Universal Entertainment Corp. gained 5.3% and 2.5%, respectively.
- Hong Kong's Hang Seng (+0.9%) climbed for a fifth straight session and finished at its best level since November 2010. Financials saw solid gains with Bank of Communications adding 6.2% on reports Beijing will allow more private capital to flow into the economy.
- China's Shanghai Composite (+2.4%) jumped to its best level in more than seven months. Financials led the way as Bank of Communications finished limit up, 10%, and Industrial & Commercial Bank of China rose 2.3%.
- India's Sensex (-0.5%) eased of record highs. Commodity plays lagged as Coal India fell 3.4% and Hindalco Industries shed 2.1%.
- Australia's ASX (-0.1%) slipped off its best close in more than six years. Miners ended mixed as Rio Tinto eased 0.4% and BHP Billiton lifted 0.3%.
- Regional Decliners: Vietnam -1.8%...Philippines -0.6%...Thailand -0.4%...Taiwan -0.2%
- Regional Advancers: South Korea +0.7%
- Closed: Indonesia (Idul Fitri Festival), Malaysia (Hari Raya Puasa), Singapore (Hari Raya Puasa)
- Fx: USDCNY slipped to 6.1875, the lowest since mid-March...USDINR inched up to 60.07...USDJPY unch @ 101.80...AUDUSD +10 pips @ .9405
7:43 am Tyson Foods commenced concurrent public offerings of 24 mln shares of Class A common stock and 30 mln tangible equity units (TSN) :
- Each tangible equity unit having a stated amount of $50 and comprised of a prepaid stock purchase contract and a senior amortizing note due July 15, 2017, each issued by the company.
- These offerings are separate public offerings made by means of separate prospectus supplements under Tyson Foods' effective shelf registration statement and are not contingent on each other or upon the consummation of the Hillshire Brands Acquisition.
- The co intends to grant the underwriters in the Class A common stock offering a 30-day option to purchase up to an additional 3,600,000 shares of its Class A common, solely to cover over-allotments, if any.
- The co does not intend to grant the underwriters in the tangible equity units offering an option to purchase any additional tangible equity units to cover over-allotments.
- Morgan Stanley and J.P. Morgan are acting as lead joint book-running managers and RBC Capital Markets is acting as joint book-running manager for the Class A common stock offering and the tangible equity units offering.
7:40 am RPM Inc beats by $0.02, beats on revs; guides FY15 EPS in-line, revs above consensus; SEC investigation as to FY13 timing of GSA accrual (RPM) : Reports Q4 (May) earnings of $0.80 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.78; revenues rose 9.1% year/year to $1.28 bln vs the $1.24 bln consensus.
Co issues guidance for FY15, sees EPS of $2.38-2.42 vs. $2.40 Capital IQ Consensus Estimate; sees FY15 revs +6-8% to ~$4.64-4.73 bln vs. $4.58 bln Capital IQ Consensus Estimate.
"For our 2015 fiscal year, we anticipate 6% to 8% growth in consolidated net sales, with 5% to 7% growth in our consumer segment and 6% to 8% growth in our industrial segment. Net income is expected to increase 9% to 11%, resulting in diluted earnings per share in the range of $2.38 to $2.42. This expectation is predicated on continued growth within our consumer segment, as a result of continuation of trends from fiscal 2014: ongoing recovery in the North American housing market, market share gains and market acceptance of new products at higher price points than our traditional consumer product lines. In the industrial segment, we expect momentum in our European businesses to continue at a more moderate pace, with a return to growth at the Tremco roofing division, along with slow growth in businesses serving the North American commercial construction markets. We will continue to leverage a great management team at Viapol in Brazil to fuel growth for RPM in South America by building their own business and adding manufacturing for other RPM companies in fiscal 2015."
SEC Investigation as to Fiscal 2013 Timing of GSA Accrual
RPM was notified by the Securities and Exchange Commission on June 24, 2014, that it is the subject of a formal investigation pertaining to the timing of its disclosure and accrual of loss reserves with respect to the previously disclosed fiscal 2013 GSA and Department of Justice investigation into compliance issues relating to Tremco roofing division's GSA contracts. RPM accrued $68.8 million for a settlement with the GSA during the third quarter of fiscal 2013, which was revised to $65.1 million during the fourth quarter of fiscal 2013, and the investigation was ultimately resolved with a payment to the GSA of $61.9 million in the first quarter of fiscal 2014. RPM's audit committee has retained independent counsel to investigate issues surrounding the timing of the disclosure and accruals in question. RPM believes that the potential financial statement impact of this issue is confined to whether some or all of the reserve accrued in connection with RPM's submission of a settlement proposal during the third quarter of fiscal 2013 should have been recorded during prior quarterly periods of that same fiscal year. As a result, the resolution of this matter is not expected to impact RPM's reported results for the full fiscal year 2013 or fiscal year 2014.
Pending resolution of this matter, RPM intends to file a Notification of Late Filing on Form 12b-25 with respect to its Annual Report on Form 10-K by July 31, 2014, which will include a substantial portion of the disclosures required in RPM's Form 10-K other than the financial statements. RPM anticipates that the audit committee's investigation will be completed in mid-August, and RPM expects that it will file its complete Form 10-K shortly after completion of the investigation.
7:36 am Cummins beats by $0.04, reports revs in-line; raises FY14 revs in-line (CMI) : Reports Q2 (Jun) earnings of $2.43 per share, $0.04 better than the Capital IQ Consensus Estimate of $2.39; revenues rose 6.9% year/year to $4.84 bln vs the $4.82 bln consensus.
- Cummins raises FY14 revs growth to +8-11%, which equates to ~$18.7-19.2 bln vs $18.89 bln Capital IQ Consensus Estimate, up from +6-10%, which equates to ~$18.3-19.0 bln due largely to improving demand in North America
- EBIT is expected to be in the range of 12.75-13.25% of sales.
- Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets. Our Components business delivered very strong results in the second quarter generating record sales and profits," said Chairman and CEO Tom Linebarger
7:34 am Dixie Group misses by $0.05, reports revs in-line (DXYN) : Reports Q2 (Jun) adj earnings of $0.05 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of $0.10; revenues rose 29.4% year/year to $108.2 mln vs the $108.5 mln consensus.
- "The second quarter was a transitional quarter operationally, with operations improving throughout the quarter but still not fully up to expectations. We completed the shutdown of the Atlas dye house in May. It is under contract for sale in the third quarter of this year. We are still installing additional equipment in our Susan Street facility to accommodate the dyeing needs of Atlas. That should be completed in the third quarter. The first step in our east coast warehouse re-alignment process began with the installation of equipment into our new Adairsville facility in May and the formal opening in mid-June. We also announced in June additional restructuring charges related to the closing of our carpet and yarn dyeing operations in our Atmore, Alabama, facility under an accelerated schedule due to faster acceptance of our continuous dyed production than originally forecasted, and increasingly stringent environmental regulations at the Atmore facility. This added restructuring plan has an attractive payback. The carpet dye operations in Atmore are now shutdown and the production moved to our other facilities or outside processors. The yarn dye operations in Atmore should be completely moved in the third quarter to other Dixie facilities. For further information on the announced restructurings, please see the attached table showing the timing of the charges anticipated to be incurred in 2014 and 2015."
7:34 am Transalta to build highly efficient power station in Western Australia (TAC) : Co has agreed to build, own and operate a 150 MW combined cycle gas power station in South Hedland, Western Australia to supply power to Horizon Power, a state owned utility, and to The Pilbara Infrastructure, a wholly owned subsidiary of Fortescue Metals. The project is estimated to cost ~ AUD $570 million which includes the cost of acquiring existing equipment from Horizon Power. The project will be built on an existing site at Boodarie Industrial Estate and will be one of the most efficient power stations in the region.
7:32 am Regency Energy Partners LP Comm increases quarterly cash distribution to $0.49 per share from $0.48 per share (RGP) :
7:32 am Vista Gold grants six month extension for final payment for the Los Cardones Project and will receive $0.5 mln cash payment (VGZ) : Co announced that it has agreed to extend the due date for the second $6.0 mln payment for the Los Cardones gold project in Baja California Sur, Mexico by six months to January 30, 2015, and will receive a $0.5 mln cash payment. On October 18, 2013, we announced the closing of sale of the Los Cardones gold project in Baja California Sur, Mexico, to the Invecture Group and RPG Structured Finance S. r.l. for $13.0 mln. Terms of the sale included $7.0 mln paid at closing and an optional second payment of $6.0 mln due by January 30, 2014. The Purchasers have the option to elect, in their discretion, not to make the Subsequent Payment, in which case Vista would retain all amounts already paid and the project.
7:31 am ChinaNet Online regains compliance with NASDAQ listing rules (CNET) : Co announced that it received a letter on July 24, 2014 notifying the company that it has regained compliance with NASDAQ's filing requirements.
- The company filed its form 10-Q for the period ended March 31, 2014 on July 17, 2014.
7:31 am T-Mobile US changes the start time for 2Q2014 earnings conference call on July 31st to 8:30 a.m. EDT; call was previously scheduled to start at 8:00 a.m. EDT (TMUS) :
7:31 am PMFG Inc awarded SCR systems order for petrochemical application in excess of $4.5 million (PMFG) : Co announced that it has been awarded a contract for multiple SCR systems to be installed on new fired heaters that are part of an olefins plant in Texas.
- The value of the award exceeds $4.5 million.
- The project is scheduled for completion by late summer 2015.
7:30 am Primoris Services announces new industrial award valued at $16 mln (PRIM) : Co announced a new industrial award valued at ~$16 mln. The new contract was secured by the Primoris ARB Industrial division, part of the West Construction Services segment. Construction will commence on the project in the fourth quarter of 2014 and is scheduled to be completed in 2015.
- The award is for the engineering, procurement and construction of an 80 MMSCFD injection compression station for one of the largest oil and gas production companies in California.
7:30 am Advaxis receives notice of allowance for cancer immunotherapies patent in Japan (ADXS) : Co announced that it has received a notice of allowance from the Japan Patent Office for a patent application related to the Advaxis proprietary Lm-LLO cancer immunotherapy platform technology.
- Once issued, this patent will provide protection in Japan until 2029.
7:18 am Dollar Trades Flat: 10-yr: -05/32..2.483%..USD/JPY: 101.82..EUR/USD: 1.3438 (:SUMRX) :
- The Dollar Index trades flat near 81.00.
- A quiet overnight session has seen in the Index locked in a less than 10 cent range as global news and data was absent.
- EURUSD trades +5 pips @ 1.3440 as action ticks off levels last seen in November. The single currency has been unable to generate a bid for much of the last two weeks as its last real bid came in the middle of July.
- GBPUSD is +10 pips @ 1.6985 as action checks up on the 50 dma. The early bid has sterling higher for the first time in nine sessions as support near 1.6950/1.7000 holds.
- USDCHF is -10 pips @ .9040 as trade slips off almost six-month highs. The light selling comes in response to the small uptick in the euro.
- USDJPY is flat @ 101.85 as trade looks for a seventh day of gains. Action over the past couple of sessions has been unable to punch through the 101.80 pivot that dates back to the beginning of February and is guarded by the 50 dma. Both the 100 and 20 dma provide additional resistance near 102.00. Click here to see a daily USDJPY chart.
- AUDUSD is +10 pips @ .9405 as buyers look to regain control after two days of selling. A quiet trade has seen action locked in a tight 20 pip range.
- USDCAD is -10 pips @ 1.0805 as action takes a breather near five-week highs. Resistance at 1.0800 is guarded by the 200 dma.
7:17 am On The Wires (:WIRES) :
- BNY Mellon (BK) has been appointed by NASDAQ OMX Clearing to provide European Market Infrastructure Regulation compliant clearing and custody services for US Treasuries within the NASDAQ OMX Group's new European clearing business. The new mandate extends BNY Mellon's existing relationship with NASDAQ OMX.
- Teleflex (TFX) announced the European launch of the CE marked LMA SureSeal PreCurved.
- Polaris (PII) introduced the Polaris Slingshot, a 3-wheel roadster.
- PowerSecure International (POWR) announced that a large energy services company customer has placed an order for a distributed generation solution that will deliver cost and energy savings, and reliable backup power, to a large federal prison in the Midwest. This award represents the first PowerSecure Energy Efficiency Services project that has included a DG solution.
- Merge Healthcare (MRGE) announced Comanche County Memorial Hospital has selected Merge's vendor-neutral archive and image viewing and sharing solutions for improved disaster recovery and operational workflow.
- Lorus Therapeutics (LRUSF) announced that the FDA completed its review and cleared the co's IND application of LOR-253 for the treatment of hematologic malignancies including acute myeloid leukemia, high-risk myelodysplastic syndromes, lymphomas and multiple myeloma. Clearance of the IND allows co to initiate a Phase 1b, multi-center, open-label, clinical study of LOR-253 in patients with relapsed or refractory hematologic malignancies.
- Iridium Communications (IRDM) announced broad availability of Iridium GO!, a global mobile satellite hotspot.
- Universal Technical Institute (UTI) announced the expansion of Daimler (DDAIF) Trucks North America's Finish First training program to its new campus in Lisle, Ill.
7:15 am Ceres to expand product development in sorghum and sugarcane under Brazil's agricultural innovation program (CERE) :
- Co announced that it will enhance its product development programs in Brazil and expand its development activities in biotech traits for sorghum and sugarcane over the next four years. The programs will now be funded in part under the Brazilian government's PAISS Agricola initiative, which promotes agricultural innovations in sugarcane as well as other energy crops.
- Under the PAISS program, Ceres is eligible for a multi-year credit facility of up to 75.4 million reais, or ~ $34 million, at a government-subsidized, preferential interest rate. Receipt of the loan will be subject to customary diligence, documentation and closing conditions, and will require guarantees to be provided by or obtained by Ceres. The co was also awarded 10 million reais, or ~ $4.5 million, in the form of non-repayable grants to be drawn over four years.
- Co expects to complete the application and grant award process by the end of calendar year 2014.
7:15 am Monotype Imaging reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs above consensus; lowers FY14 EPS, raises FY14 rev (TYPE) : Reports Q2 (Jun) adj. earnings of $0.27 per share, in-line with the Capital IQ Consensus Estimate of $0.27; revenues rose 9.5% year/year to $45 mln vs the $45.03 mln consensus. Creative Professional revenue was $18.3 million, increasing 25 percent from the same period in 2013. OEM revenue was $26.7 million, increasing one percent from the second quarter of 2013.
Co issues guidance for Q3, sees adj. EPS of $0.26-0.28 vs. $0.28 Capital IQ Consensus Estimate; sees Q3 revs of $46-48 mln vs. $44.92 mln Capital IQ Consensus Estimate.
Co issues guidance for FY14, lowers adj. EPS to $1.10-1.16 from $1.12-1.18 vs. $1.14 Capital IQ Consensus; raises FY14 revs to $184-189 mln from $180-185 mln vs. $183.76 mln Capital IQ Consensus Estimate.
- During Q2, Monotype repurchased ~640,000 shares of common stock under the company's repurchase program for an aggregate amount of ~$17 million.
7:11 am Armstrong World Industries misses by $0.06, misses on revs; guides Q3 revs in-line; lowers FY 2014 EPS and revs guidance below consensus (AWI) : Reports Q2 (Jun) earnings of $0.60 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.66; revenues rose 0.5% year/year to $710 mln vs the $727.12 mln consensus.
- Co issues in-line guidance for Q3, sees Q3 revs of $740-780 mln vs. $760.10 mln Capital IQ Consensus Estimate.
- Co lowers guidance for FY14, sees EPS of $2.15-2.40 vs. $2.60 Capital IQ Consensus Estimate, from $2.55-2.80; sees FY14 revs of $2.7-2.8 bln vs. $2.81 bln Capital IQ Consensus Estimate, from $2.8-2.89 bln.
- Management announces closure of resilient flooring plant in Thomastown, Australia and engineered wood flooring plant in Kunshan, China.
- "Despite soft sales, we delivered second quarter adjusted EBITDA in the middle of our guidance range," said Matt Espe, CEO. "The softer demand environment we experienced in the quarter and first half of 2014 has tempered our outlook for the back half of the year."
7:08 am NRG Yield indirect subsidiary, NRG Yield Operating, intends to commence an offering of $400.0 mln in aggregate principal amount of senior notes due 2024 (NYLD) : NRG Yield Operating, an indirect subsidiary of NRG Yield, intends to commence an offering of $400.0 mln in aggregate principal amount of senior notes due 2024.
- The Notes will be senior unsecured obligations of Yield Operating and will be guaranteed by NRG Yield LLC, Yield Operating's parent company, and by each of Yield Operating's wholly owned current and future subsidiaries that guarantees indebtedness under its credit agreement. Yield Operating intends to use the proceeds of the offering to fund, in whole or in part, renewable energy projects.
- Specifically, Yield Operating intends to use the proceeds from the offering, together with cash on hand, including the net proceeds from the issuance of Class A common stock by NRG Yield, which proceeds will be contributed to Yield Operating, to fund the aggregate $870 mln cash purchase price of the previously announced acquisition of the Alta Wind Facility.
- However, this offering is not conditioned upon the completion of the Alta Acquisition and, to the extent the Alta Acquisition is not completed, Yield Operating expects that the net proceeds from this offering will be allocated by it to the financing of future acquisitions of Eligible Green Projects.
7:07 am Group 1 Auto announces disposition of Honda dealership in New Jersey (GPI) : Co announced that is has disposed of its Honda dealership in Freehold, New Jersey. This dealership generated ~ $65.0 million in trailing-twelve-month revenues.
7:05 am Alliance Holdings beats by $0.24, beats on revs; increases quarterly distribution by 2.7% to $0.87 per unit (AHGP) :
- Reports Q2 (Jun) earnings of $1.29 per share, $0.24 better than the Capital IQ Consensus Estimate of $1.05; revenues rose 8.1% year/year to $598.46 mln vs the $573.88 mln consensus.
- AHGP's principal sources of cash flow are its ownership of general partner interests, limited partner interests and incentive distribution rights in ARLP. The declared distribution is based on the distribution AHGP will receive from its ownership interests in ARLP, which today announced a quarterly distribution for the 2014 Quarter of $0.625 per unit, or $2.50 per unit on an annualized basis, payable on August 14, 2014 to all unitholders of record as of the close of trading on August 7, 2014. (See ARLP Press Release dated July 28, 2014.)
7:05 am Roper Inds beats by $0.06, beats on revs; guides Q3 EPS below consensus; raises FY14 EPS in-line (ROP) : Reports Q2 (Jun) earnings of $1.56 per share, $0.06 better than the Capital IQ Consensus Estimate of $1.50; revenues rose 12.9% year/year to $885.2 mln vs the $873.19 mln consensus. (rev growth rate based on GAAP revenues last year)
- Co issues downside guidance for Q3, sees EPS of $1.49-1.53 vs. $1.57 Capital IQ Consensus Estimate.
- Co issues raised guidance for FY14, sees EPS of $6.27-6.37 from $6.22-6.36 vs. $6.29 Capital IQ Consensus Estimate.
- "We generated 8% organic growth in the quarter and all segments grew organically, led by double-digit growth in both our Medical and RF segments. Our continued growth in high margin businesses resulted in exceptional margin performance, as gross margin reached 59.1% and EBITDA margin was 33.3%."
7:04 am Alliance Resource beats by $0.41, beats on revs; raises distribution 2.25% QoQ; sees 2H results similar to 1H14 (ARLP) : Reports Q2 (Jun) earnings of $1.37 per share, $0.41 better than the Capital IQ Consensus Estimate of $0.96; revenues rose 8.1% year/year to $598.6 mln vs the $575.65 mln consensus.
Co reported financial and operating results, setting new records for coal sales volumes, revenues, net income and EBITDA for the quarter ended June 30, 2014. Led by record coal sales volumes, revenues increased to a record $598.6 million, an increase of 8.1% compared to the quarter ended June 30, 2013. ARLP also posted records in the 2014 Quarter for net income, which climbed 32.3% to $137.7 million, or $1.37 of net income per basic and diluted limited partner unit, and EBITDA, which increased 19.4% to $213.0 million.
ARLP also announced that the Board of Directors of its managing general partner increased the cash distribution to unitholders for the 2014 Quarter to $0.625 per unit (an annualized rate of $2.50 per unit), payable on August 14, 2014 to all unitholders of record as of the close of trading on August 7, 2014. The announced distribution represents an 8.5% increase over the cash distribution of $0.57625 per unit for the 2013 Quarter and a 2.25% increase over the cash distribution of $0.61125 per unit for the quarter ended March 31, 2014.
"ARLP executed extremely well during the first half of 2014 and we currently anticipate performance at our operations will remain strong over the balance of the year -- particularly at Tunnel Ridge, Gibson South and MC Mining. In addition, ARLP has now essentially fully priced and committed its estimated 2014 coal sales volumes as we secured during the 2014 Quarter new coal sales commitments for the delivery of ~8.1 million tons through 2017. As a result, we currently anticipate ARLP's results over the next two quarters will be comparable to those delivered during the first half of the year. Our performance to date and expectations for the remainder of 2014 give us confidence that ARLP will deliver its fourteenth consecutive year of record results."
7:04 am Henry Schein: athenahealth (ATHN) and Henry Schein expand strategic agreement (HSIC) : HSIC and ATHN announced an expansion of their strategic agreement announced on May 21, 2014. Under the expanded agreement, athenahealth's athenaNet platform and Henry Schein's Dentrix Enterprise, the leading Electronic Dental Record (EDR) solution installed in Community Health Centers (CHCs) across the United States, will integrate to facilitate Uniform Data System (:UDS) reporting, which is a requirement for CHCs, including Federally Qualified Health Centers (FQHCs).
- The collaboration is expected to strengthen athenahealth's and Henry Schein's efforts to serve CHCs and FQHCs by bringing the two companies' best-of-breed products and services together with increased integration, creating new value and efficiencies. The advanced integration of the athenaNet and Dentrix Enterprise platforms will automate the UDS reporting process, ensuring accurate, complete UDS reports, without the need for manual and time-consuming reconciliation between separate systems.
7:04 am Compass Minerals Intl misses by $0.14, misses on revs; provides outlook (CMP) : Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.14 worse than the Capital IQ Consensus Estimate of $0.27; revenues rose 7.4% year/year to $186.6 mln vs the $196.94 mln consensus. Operating earnings were $13.4 million compared to $14.7 million in the prior-year quarter, as increased earnings from the plant nutrition segment were offset by lower salt segment earnings.
- The North American highway deicing bidding for the 2014-2015 winter season is approximately three-fourths complete. To date, average awarded prices have increased more than 20% from last year's bid awards. Thus far in the bid season, the volumes requested by customers have rebounded above historic levels indicating that excess customer inventories have been depleted.
- The company expects, with average winter weather, that total salt sales volumes for the second half of 2014 will be in the range of 6.0 to 6.5 million tons and that the average selling price will increase approximately 12% from 2013 results. Improved pricing combined with better asset utilization is expected to boost the salt segment's operating margin percent. Some of this benefit will be muted by the purchase of imported salt. These purchases will increase per-unit salt costs, but also ensure the company can meet additional customer demand. The company currently anticipates a salt segment operating margin between 24 percent and 26 percent for the second half of 2014 compared to 21.5 percent in 2013. This outlook excludes a gain that the company expects to report in the third quarter from an insurance claim related to the 2011 tornado that struck the company's facilities in Goderich, Ontario. The company estimates that the recorded gain will exceed $80 million.
- The company expects plant nutrition product sales will reach 175,000 tons to 185,000 tons in the second half of 2014, and the blended average selling price for these products is expected to be between $725 and $750 per ton. For the second half of the year, the company expects to generate an operating margin between 28 percent and 30 percent for the segment, similar to prior-year's result of 29 percent, which included the one-time benefit of $9.0 million from an insurance settlement.
7:03 am Crown Crafts announces licensing agreement with Carter's, Inc. (CRI) for infant bedding (CRWS) : Crown Crafts Infant Products, a wholly owned subsidiary of Crown Crafts, announced that it has expanded its licensing agreement with Carter's, Inc. (CRI) to offer infant bed sets and decor. The agreement is in addition to an existing Carter's brand licensing agreement for toddler bedding products.
7:02 am Bruker Corp. announces acquisition of high-speed, 3D super-resolution fluorescence microscopy co Vutara; financial terms not disclosed (BRKR) : Co announced that it has acquired Vutara, a technology leader in high-speed, three-dimensional (3D), super-resolution fluorescence microscopy for life science applications. Transaction details were not disclosed. Vutara's estimated revenue for the full year 2014 is expected to be ~ $2 million.
7:01 am Incyte: Jakafi product label expanded to include overall survival data and additional safety and dosing information (INCY) : Co announced today that the FDA has approved supplemental labeling for Jakafi (ruxolitinib) to include new Kaplan-Meier overall survival curves as well as additional safety and dosing information.
7:01 am JPMorgan Chase: Sankaty Advisors acquires J.P. Morgan's Global Special Opportunities Group Investment Portfolio; transaction is not expected to have a material impact on JPMorgan Chase's earnings (JPM) : Co announced the signing of a definitive agreement to acquire a portfolio of loans and other securities from J.P. Morgan's Global Special Opportunities Group.
- The portfolio contains mezzanine loans in North America and Europe, as well as loans and related special situations investments in Australia and across Asia, with an aggregate value of ~$1.3 bln.
- This acquisition follows Sankaty Advisors' other recent purchases of loan portfolios from Irish Bank Resolution Capital, Lloyds Banking Group and CapitalSource.
7:01 am xG Technology awarded subcontract by CACI (CACI) on $497 mln multiple-award contract to provide communications and networking services to US Army (XGTI) : Co announced that it has been awarded a subcontract by CACI International Inc (CACI) to provide communications and network services on CACI's prime contract with the U.S. Army's communications-electronics research, development and engineering center space and terrestrial communications directorate.
- The five-year (three base plus two options) multiple-award indefinite delivery/indefinite quantity prime contract has a ceiling value of $497 million.
6:51 am Hill International receives commitment from Societe Generale for $165 mln Debt Refinancing; co also launches a follow-on offering of 8,000,000 shares of its common stock and guides Q2 EPS and rev above consensus (HIL) : Co sees Q2 EPS $0.04 vs $0.02 Capital IQ Consensus Estimate; revs $159.6 mln vs $144.71 mln Capital IQ Consensus Estimate.
- In addition, the co's total backlog at June 30, 2014 was $972 million, compared to $978 million at March 31, 2014. Twelve-month backlog at June 30, 2014 was $404 million, compared to $400 million at March 31, 2014.
- Co announced that it has received a commitment from Soci t G n rale to provide a refinancing of the co's existing senior debt facilities. This transaction, which is being arranged by Soci t G n rale's U.S. broker-dealer affiliate SG Americas Securities, LLC, will provide senior secured debt facilities to Hill in the aggregate principal amount of $165.0 mln. ---The debt facilities consist of a six-year term loan facility of $120.0 mln and five-year revolving credit facilities totaling $45.0 mln consisting of a $30.0 mln U.S. dollar-denominated facility to be made available to Hill and a $15.0 mln Euro-denominated facility to be made available to Hill's subsidiary Hill International N.V. ---The net proceeds of the new debt facilities, together with the net proceeds of the equity offering described below, will be used to pay off and terminate Hill's existing senior credit facility with a bank group led by Bank of America, N.A. and the existing second lien term loan with funds managed by Tennenbaum Capital Partners, LLC.
- Hill also announced the launch of a follow-on offering of 8 mln shares of its common stock led by KeyBanc Capital Markets Inc. as sole book-running manager. William Blair & co, L.L.C., Houlihan Lokey Capital, Inc., Boenning & Scattergood, Inc., Sidoti & co, LLC and SG Americas Securities are serving as co-managers in connection with the offering.
6:37 am European Markets : FTSE...6799.35...+7.80...+0.10%. DAX...9625.26...-18.80...-0.20%.
6:37 am Asian Markets : Nikkei...15529.40...+71.50...+0.50%. Hang Seng...24428.63...+212.60...+0.90%.
6:36 am Cal-Maine Foods beats by $0.10, beats on revs (CALM) : Reports Q4 (May) GAAP earnings of $1.30 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 14.0% year/year to $371.6 mln vs the $351.47 mln consensus.
- "Our operations continued to run well in fiscal 2014. We were able to benefit from lower and less volatile feed costs compared with the previous year. For fiscal 2014, our average feed costs were 49.3 cents per dozen, down 8.7 percent from fiscal 2013. Throughout our operations, our management team continued to execute on all the fundamental aspects of making Cal-Maine Foods an efficient, low-cost producer. We were pleased to report operating income of $146.1 million for fiscal 2014 compared with $59.6 million for fiscal 2013. Our expansion projects for our operations in Florida, Texas and Kentucky are on schedule, and we expect to benefit from the additional capacity and improved efficiencies in fiscal 2015 with less dependence on outside egg purchases."
- Dividend: For the fourth quarter of fiscal 2014, Cal-Maine Foods will pay a cash dividend of approximately $0.434 per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods' variable dividend policy, in each quarter for which the Company reports net income, the Company pays a cash dividend to shareholders in an amount equal to one-third of such quarterly income.
- "Looking ahead, we are cautiously optimistic about the good start to this year's growing season for corn and soybean crops. The current USDA projections for harvested acres and yields for both crops should be favorable for end users and help reduce our feed costs in fiscal 2015."
6:32 am Zions Bancorp: Federal Reserve does not object to Zions Bancorporation 2014 Capital Plan (ZION) : The Federal Reserve's Board of Governors has notified the co that it did not object to the capital actions as outlined in its 2014 capital plan, as resubmitted to the Federal Reserve on April 30, 2014.
- Capital actions contemplated by the plan included the continued payment of preferred and common dividends at the current rates.
- The resubmitted plan included a proposed issuance of $400 mln of common equity in the third quarter of 2014, however, Zions has determined to increase that amount.
6:26 am Ntelos Holdings misses by $0.17, misses on revs; reaffirms FY14 guidance (NTLS) : Reports Q2 (Jun) earnings of $0.02 per share, $0.17 worse than the Capital IQ Consensus Estimate of $0.19; revenues fell 1.8% year/year to $117.8 mln vs the $120.24 mln consensus.
- Adjusted EBITDA was $34.4 million for the second quarter 2014, compared to $41.2 million for the second quarter 2013.
- Extended and amended Strategic Network Alliance ("SNA") with Sprint until December 2022.
- "The successful extension and expansion of our SNA with Sprint during the quarter marked a significant milestone for nTelos. We are pleased with this outcome as it paves the way for nTelos to build the most robust network in our footprint and to deliver an improved user experience to our retail and wholesale customers."
6:26 am Zions Bancorp announces $525 mln common stock offering (ZION) : Co announced that it has commenced a public offering of $525 mln of its common stock pursuant to a prospectus supplement dated July 28, 2014 to its prospectus dated April 21, 2014.
- Zions intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the amount of common stock offered. Zions intends to use the net proceeds of this offering for general corporate purposes.
- Deutsche Bank Securities and Goldman, Sachs & Co. are serving as joint book-running managers for the offering.
6:23 am On The Wires (:WIRES) :
- Safeway (SWY) announced the preliminary results of its stockholder vote at the co's 2014 Annual Meeting of Stockholders. Stockholders approved and adopted the proposal to approve the previously announced agreement and plan of merger dated as of March 6, 2014, as amended on April 7, 2014 and June 13, 2014, under which AB Acquisition, an affiliate of Albertsons, will acquire Safeway as described in the proxy statement dated June 19, 2014 with 70% of the outstanding shares and 96% of the shares voted voting FOR the Merger.
- Logitech (LOGI) introduced the new Logitech USB Headset H570e, designed for comfort, ease of use, and reliability, at an affordable price. It is compatible with most unified communication platforms.
6:20 am Berkshire Hathaway Energy received Industry Canada approval of its proposed acquisition of AltaLink (BRK.B) : Berkshire Hathaway Energy announced that it received notice July 25, 2014 from the Canadian Minister of Industry that its acquisition of AltaLink has been approved under the Investment Canada Act.
- Consistent with its operating philosophy, BHE will invest in AltaLink, Alberta and Canada for the long term. The announced undertakings are the beginning of that long-term investment.
- BHE also made a series of additional commitments to Canada in connection with the approval:
- Reinvest 100% of AltaLink's earnings back into AltaLink, elsewhere in Alberta or other regions of Canada. This commitment will support AltaLink's CAD2.7 billion investment in Alberta's energy infrastructure planned over the next three years, subject to continued oversight by the Alberta Utilities Commission and the Alberta Electric System Operator.
- Spend at least CAD27 million to pursue joint development opportunities with Canadian partners in Canada and the U.S. Invest at least CAD3 million of new funds to support Alberta-based academic programs focused on energy-related topics, cultural organizations and community-based programs.
6:06 am Family Dollar: Dollar Tree (DLTR) will acquire Family Dollar in a cash and stock transaction -- FDO shareholders will receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares (FDO) : Dollar Tree (DLTR) and Family Dollar Stores announced that they have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. The value of the consideration is $74.50 per share, a 22.8% premium over Family Dollar's closing price as of July 25, 2014.
- The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close by early 2015, at which time the Family Dollar shareholders will receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares. At closing, Family Dollar shareholders will own no less than 12.7% and no more than 15.1% of the outstanding common stock of Dollar Tree. Howard R. Levine and Trian Fund Management, L.P. and funds managed by it, which collectively own ~ 16% of the outstanding stock of Family Dollar, have entered into voting agreements in support of the merger.
- The transaction is estimated to be accretive to cash EPS within the first year post-closing, excluding one-time costs to achieve synergies. Dollar Tree will be better positioned to invest in existing and new markets and channels and to grow its store base across multiple brands. The combined company expects to generate significant free cash flow, enabling it to pay down debt rapidly.
- Under the terms of the transaction, Family Dollar shareholders will receive $74.50 for each share they own, comprised of $59.60 in cash and $14.90 in Dollar Tree stock. The stock portion will be subject to a collar such that Family Dollar shareholders will receive 0.2484 Dollar Tree shares if the average Dollar Tree trading price during a specified period preceding closing is equal to or greater than $59.98 and 0.3036 Dollar Tree shares if this average trading price is less than or equal to $49.08. If the average trading price of Dollar Tree stock during this period is between $49.08 and $59.98, Family Dollar shareholders will receive a number of shares between 0.2484 and 0.3036 equal to $14.90 in value. The transaction values Family Dollar at an enterprise value of ~ $9.2 billion, and it represents an enterprise value to last twelve months May 31, 2014 EBITDA multiple of 11.3x.
6:05 am Pacific Rubiales Energy provides 2Q2014 operational update; total net production for the quarter is expected to be in the range of 148 to 150 Mboe/d, an increase of ~ 16% from the same period a year ago (PEGFF) : Co provided an operational update for its second quarter 2014 operating results.
- Total net production for the quarter is expected to be in the range of 148 to 150 Mboe/d, an increase of ~ 16% from the same period a year ago.
- Sales volumes in the second quarter are expected to be in the range of 153 to 155 Mboe/d. The OFT volumes are expected to be in the range of 7 to 9 Mbbl/d (10.6 Mbbl/d in the first quarter 2014). Diluent volumes are expected to be similar to the prior quarter (3.2 Mbbl/d in the first quarter 2014).
- The co expects oil price realization in the second quarter to be in the range of $97 to $99/bbl, which is in line with the first quarter of 2014 and slightly higher compared to the same quarter a year ago. Most of the co's oil production in Colombia and Peru is exported at prices linked to international oil prices. Combined realized prices are expected to be in the range of $93 and $95/boe.
- Operating netbacks for the quarter are expected to remain in-line with the prior quarter, with operating margins exceeding 60%.
6:04 am Independence Contract Drilling (:ICD) launches 10 mln share IPO (:IPOXX) : Independence Contract Drilling (:ICD) has launched its initial public offering of 10 mln shares of common stock. The shares are expected to trade on the New York Stock Exchange under the ticker symbol "ICD." Morgan Stanley, RBC Capital Markets and Tudor, Pickering, Holt & Co. are acting as book-running managers for the offering. Canaccord Genuity, Capital One Securities, Cowen and Company, FBR, IBERIA Capital Partners L.L.C. and Johnson Rice & Company L.L.C. are acting as co-managers.
6:02 am Ntelos Holdings announces management transition plan; James Hyde Resigns as CEO and President; Rodney Dir appointed President and COO (NTLS) : Co announced that its Board of Directors has accepted the resignation of James A. Hyde as Chief Executive Officer, President and member of the Board, effective today. The Board also announced the immediate appointment of NTELOS Director Rodney D. Dir as President and Chief Operating Officer. Michael A. Huber, Chairman of the Board, will oversee strategic relationships and external communications.
6:01 am Biodel enters into $15 mln equity commitment with Lincoln Park Capital (BIOD) : Co announced that it has entered into a stock purchase agreement with Lincoln Park Capital Fund, a Chicago-based institutional investor. Under the terms of the purchase agreement, Biodel will have the right to sell to LPC, and LPC will be obligated to purchase, up to $15 mln in shares of Biodel's common stock, subject to the limitations and conditions set forth in the agreement. Biodel intends to use any proceeds that it receives from the sale of shares under the purchase agreement for general corporate purposes and working capital requirements.
6:01 am Stemline Therapeutics announces opening of SL-401 corporate IND and start of clinical trials in BPDCN and AML (STML) : Co announced the opening of its SL-401 IND and initiation of a broad clinical development program including trials in blastic plasmacytoid dendritic cell neoplasm and acute myeloid leukemia. SL-401 is a targeted therapy directed to the interleukin-3 receptor (IL-3R) present on cancer stem cells and tumor bulk of many hematologic cancers.
- SL-401 has completed a physician-sponsored Phase 1/2 trial and demonstrated a tolerable safety profile and clinical activity in multiple indications, including durable complete responses, in BPDCN and relapsed/refractory AML.
- Seven of nine evaluable BPDCN patients had objective responses, including 5 CRs. Stemline has now initiated a corporate-sponsored multicenter, open-label trial in patients with BPDCN and relapsed/refractory AML.
- This study is designed to accrue at least 60 patients, including a brief lead-in that transitions into a larger expansion stage in these indications. Additional trials in other IL-3R expressing malignancies will follow this year and into early next year.
6:00 am Amazon.com launches 3D printed products store (AMZN) : Co announced the launch of the 3D Printed Products store (www.amazon.com/3dp), a marketplace that gives customers access to more than 200 unique print on-demand products, many that can be customized by material, size, styles and color variations, and personalized with text and image imprints.
- The new store is one of the largest online destinations to discover 3D printed products featuring convenient search tools, interactive 3D preview functionality and a product personalization widget.
- At launch to start, customers will find a wide range of items to browse including jewelry, toys, home d cor and fashion accessories.
5:24 am Sohu.com beats by $0.42, misses on revs; guides Q3 EPS in-line, revs below consensus (SOHU) : Reports Q2 (Jun) loss of $0.87 per share, excluding non-recurring items, $0.42 better than the Capital IQ Consensus Estimate of ($1.29); revenues rose 18.1% year/year to $400.2 mln vs the $407.4 mln consensus.
- Total online advertising revenues, which include revenues from brand advertising and search and others businesses for the second quarter of 2014, were US$218 million, up 49% year-over-year and 25% quarter-over-quarter.
- Brand advertising revenues for the second quarter of 2014 totaled US$133 million, up 33% year-over-year and 20% quarter-over-quarter. The year-over-year increase was mainly due to revenue increases in the online video and 17173 advertising businesses. The quarter-over-quarter increase was mainly due to increases in the online video and automobile advertising businesses.
- Search and others revenues for the second quarter of 2014 were US$85 million, up 84% year-over-year and 32% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly due to increased traffic and improved monetization.
- Online game revenues for the second quarter of 2014 were US$154 million, down 9% year-over-year and 6% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases were mainly due to decreased revenues from Wartune and DDTank in China, and decreased revenues from TLBB because fewer players spent money in the game in the second quarter of 2014 after Changyou released a new expansion pack that made some of the gameplay easier for players to play.
Both GAAP and Non-GAAP gross margin were 58% for the second quarter of 2014, compared with 62% in the first quarter of 2014 and 66% in the second quarter of 2013
Co issues mixed guidance for Q3, sees EPS of ($0.85) - ($0.75), excluding non-recurring items, vs. ($0.83) Capital IQ Consensus Estimate; sees Q3 revs of $427-442 mln vs. $450.45 mln Capital IQ Consensus Estimate.
5:01 am First Solar and XSOL establish supply agreement in Japan (FSLR) : First Solar and XSOL Co, a distributor and integrator of solar systems in Japan, announce that they have signed an agreement to supply First Solar's cadmium telluride thin film modules in Japan. The agreement targets installation of 100 megawatts DC per year.
Last year, First Solar announced plans to invest $100 mln in development of mega solar power projects in Japan. The agreement with XSOL enables First Solar's advanced technology to be supplied to smaller scale projects as well.
4:44 am On The Wires (:WIRES) :
- Raytheon (RTN) signed a Letter of Intent with Poland's TELDAT to cooperate in mutually beneficial business opportunities related to Poland's air defense architecture, as well as significant exports to global markets.
- Toshiba Corporation (TOSBF) announced the launch of a brushed motor pre-driver IC for automotive applications, TB9052FNG. Sample shipments will start in August, with mass production scheduled to start in March, 2015.
4:31 am Lincoln Electric beats by $0.09, misses on revs (LECO) : Reports Q2 (Jun) earnings of $1.01 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.92; revenues rose 0.5% year/year to $728.5 mln vs the $737.24 mln consensus.
- Sales decreased 2.2% to $1.41 billion in the six months ended June 30, 2014 versus $1.45 billion in the comparable 2013 period.
- This decrease reflects lower volumes and unfavorable foreign exchange translation, partially offset by acquisitions.
4:16 am Changyou.com beats by $0.31, misses on revs; guides Q3 EPS in-line, revs below consensus (CYOU) : Reports Q2 (Jun) earnings of $0.04 per share, $0.31 better than the Capital IQ Consensus Estimate of ($0.27); revenues fell 2.5% year/year to $177.8 mln vs the $185.87 mln consensus.
- Online game revenues were $153.9 million, a decrease of 6% quarter-over-quarter and 9% year-over-year, and were below the Company's guidance by $7.1 million.
- Online advertising revenues were $14.7 million, an increase of 59% quarter-over-quarter and 46% year-over-year, and were in line with the Company's guidance.
On July 27, 2013, Changyou's Board of Directors authorized a share repurchase program of up to $100 million of the outstanding ADSs of Changyou over a two-year period from July 27, 2013 to July 26, 2015.
Co issues mixed guidance for Q3, sees EPS of ($0.11)-$0.00 vs. $0.00 Capital IQ Consensus Estimate; sees Q3 revs of $186-192 mln vs. $199.88 mln Capital IQ Consensus Estimate.
2:47 am Randgold Resources provides update on its Tongon gold mine (GOLD) : Co provides an update. Tongon gold mine in C te d'Ivoire is continuing to make headway in its drive to overcome the technical issues that have impacted its performance
Updating local media on progress at the mine, co stated this year's planned ramp-up in production had not been achieved due to the need to expand the flotation circuit and the mechanical failure of the recently installed Vibrocone crushers, intended to improve the recovery and throughput rate. Expansion of the flotation circuit was now underway and the crusher supplier, Sandvik, had agreed to replace the Vibrocone crushers with conventional cone crushers and combine them with an upgraded flowsheet, including additional equipment and circuits. Co noted that the first two new crushers were already on site, along with most of the other equipment, and the Sandvik team was working hard in support of the mine team to ensure that the project would be completed early in the fourth quarter.
2:45 am Seadrill announces result of voluntary incentive offer to convert the $650 mln of 3.375% 2017 convertible bond (SDRL) : Co announces that holders of $648.6 million of principal amount of Seadrill's convertible bonds due 2017 have accepted the voluntary incentive offer that was made on July 18, 2014 and expired on July 24, 2014.
- The Company intends to exercise the "90% clean-up call" call provision on the remaining US$1.4 million outstanding. In connection with today's settlement of the voluntary incentive offer for early conversion of the convertible bonds, the number of common shares outstanding in Seadrill has increased by 23,827,751 shares.
- The total number of common shares outstanding in Seadrill is now 493,078,684 shares.
2:17 am On The Wires (:WIRES) :
- Rockwell Collins (COL) announced it has completed the sale of its satellite communications business. The business, which designs, manufactures and services ground-based satellite communication systems primarily for military customers, will be renamed DataPath
- The TJX Companies (TJX) announced it is recalling "ecoato" Sweet Paprika Powder products as they have the potential to be contaminated with Salmonella.
- NTT Communications Corporation (NTT) announced a partnership with the Philippines' largest telecommunication company, Philippine Long Distance Telephone Company to provide PLDT's enterprise customers with NTT Com's enterprise-grade, infrastructure as a service solution, Enterprise Cloud. Commercial services are scheduled to begin in or after September.
- Akers Biosciences (AKER) has signed a feasibility study deal with Konica Minolta to develop a rapid test for the early detection of cardiac muscle tissue damage
2:11 am Qiagen and AstraZeneca (AZN) collaborate to develop liquid biopsy-based companion diagnostic to advance EGFR mutation profiling in lung cancer patients (QGEN) : Co announces a collaboration agreement with AstraZeneca PLC (AZN) for the co-development and commercialization of a liquid biopsy-based companion diagnostic to be paired with IRESSA, AstraZeneca's targeted therapy for non-small cell lung cancer.
- The project builds on a master framework agreement signed by both companies in 2013 and aims to develop and market a novel QIAGEN companion diagnostic that analyzes plasma samples to assess EGFR mutation status in NSCLC patients.
- The assay will be designed to guide the treatment of NSCLC patients with Astra Zeneca's oral monotherapy anti-cancer treatment when tumour tissue is not available.
- QIAGEN already offers the therascreen EGFR RGQ PCR Kit as a tissue-based companion diagnostic for lung cancer patients, which was approved in the U.S. by the FDA in July 2013 and in China in May 2014.
- The companies will collaborate to create a new companion diagnostic for IRESSA based on liquid biopsy samples from NSCLC patients, rather than requiring invasive surgical collection of tissue samples.
- Data from several studies, including the IFUM Study presented at the "World Lung 2013" conference, provided evidence of the ability to assess the EGFR status of advanced lung cancer patients using blood / plasma samples.
- This breakthrough provides hope for patients for whom surgical biopsy is not an option by enabling them to have their EGFR mutation status assessed using a less invasive method.
2:00 am Samson Oil & Gas provides Q2 update (SSN) : Co files its Q2 quarterly report.
- 72% increase in oil production in the June 2014 quarter over the March 2014 quarter
- 75% increase in estimated oil revenue in the June 2014 quarter over the March 2014 quarter.
- Estimated oil and gas revenue of $4.9 mln for the quarter (there is generally a two to three month delay between production and the receipt of the associated cash).
- Lease operating, exploration and administration expense for the quarter of $1.7 million.
1:44 am Novartis unit Alcon receives Simbrinza approval in the EU to treat patients living with glaucoma, a chronic sight-threatening eye disease (NVS) : Alcon, the eye care division of Novartis, announces that Simbrinza eye drops suspension has been approved by the European Commission to decrease elevated intraocular pressure in adult patients with open-angle glaucoma or ocular hypertension, for which monotherapy provides insufficient IOP reduction.
- Simbrinza, administered with one drop into the affected eye(s) twice daily, combines two well-established treatments for elevated IOP into one multi-dose bottle, offering a simplified schedule compared to brinzolamide and brimonidine administered separately.
- Simbrinza is also the only fixed-combination glaucoma treatment without a beta-blocker. Beta blockers are commonly prescribed to lower IOP, but are contraindicated for many glaucoma patients suffering from certain respiratory or cardiac conditions.
1:41 am Retrophin proposes acquisition of Clinuvel Pharmaceuticals (RTRX) : Retrophin (RTRX) announces that on July 17, 2014 it submitted a proposal to the Board of Clinuvel Pharmaceuticals to acquire by scheme of arrangement all of the shares of Clinuvel stock that Retrophin does not own for (1) 0.175 Retrophin shares per Clinuvel share, or (2) A$2.17 per share in cash. Retrophin currently owns ~4.88% of Clinuvel shares.
Co's Comments: "Our proposal represents an attractive opportunity for Clinuvel's shareholders, as it allows them to continue to share in the potential upside from Clinuvel's primary product, SCENESSE, by being a shareholder in Retrophin or monetize their investment in Clinuvel at a significant premium to the current market price due to the definitive value of our all-cash offer...We are well positioned to commercialize and unlock the value of SCENESSE, which uniquely serves the unmet need of patients with Erythropoietic Protoporphyria."
1:36 am Gas Natural announces Kevin Degenstein returns to company as Chief Operating Officer (EGAS) : Co announces that Kevin Degenstein will join Gas Natural as its Chief Operating Officer and Chief Compliance Officer effective August 1, 2014. He will have operational and regulatory oversight of the Company's operating subsidiaries including Energy West, Frontier Natural Gas, Bangor Natural Gas and Orwell Natural Gas, among others. Most recently, he was president and chief operating officer of Gas Natural from June 2008 until November 2013, when he departed the Company.
1:35 am AcelRx receives Complete Response Letter from FDA for New Drug Application for Zalviso (ACRX) : Co announces that has issued a Complete Response Letter (CRL) for the Company's new drug application for Zalviso (sufentanil sublingual tablet system). The Company is currently reviewing the FDA's comments and requests contained in the CRL and plans to discuss these requests with the FDA.
- The CRL contains requests for additional information on the Zalviso System to ensure proper use of the device.
- The requests include provision of bench data demonstrating a reduction in the incidence of optical system errors which require premature drug cartridge change, changes to the Instructions for Use for the device, and additional data to support the shelf life of the product.
- Co believes some of the requests have been addressed in amendments to the NDA that have been submitted prior to the receipt of the CRL but, as acknowledged by the FDA, have not been reviewed.
- There is no guarantee that the information previously provided to the FDA will be adequate to address the issues in the CRL.
- Additional bench testing will be required and human factors testing may be required to address certain items in the CRL.
- There were no requests to conduct additional human clinical studies.
"We believe we can satisfy all of FDA's requests in the CRL and resubmit the NDA by the end of 2014, although we will have more clarity on the process and timing after our conversation with FDA.."
1:34 am Aspen Insurance shareholders overwhelmingly reject endurance authorization proposals (AHL) : Aspen Insurance Holdings (AHL) announces that, based on preliminary voting results as of the close of business on July 25, 2014 -- the target date for receiving consents set by Endurance Specialty Holdings (ENH) -- the overwhelming majority of Aspen shareholders participating in the consent solicitation have rejected both of Endurance's proposals.
- Based on these preliminary results, as provided by the Company's proxy solicitor, Aspen believes that shareholders owning at least 76% of Aspen's outstanding shares did not support Endurance's proposal to call a special meeting at which shareholders would vote on a proposal to increase the size of Aspen's Board to 19 directors, and shareholders holding at least 81% of Aspen's outstanding shares did not support Endurance petitioning the Supreme Court of Bermuda as part of a legal maneuver called an involuntary scheme of arrangement.
- Of these amounts, shareholders holding more than 60% of Aspen's outstanding shares took action to affirmatively reject both proposals on Aspen's blue revocation card. Thus, Aspen estimates that the number of shares affirmatively rejecting both Endurance proposals was at least two-and-a-half times as many as the number that consented.
1:33 am Seabridge Gold files preliminary shelf prospectus and registration statement (SA) : Co announces that it has filed a preliminary short form base shelf prospectus with the securities commissions in each of the Provinces of Ontario, Alberta and British Columbia and a corresponding registration statement on Form F-10 with the SEC. The shelf prospectus filings, when final, will allow Seabridge to make offerings of common shares up to an aggregate total of CAD100 million during the 25-month period that the final short form base shelf prospectus remains effective.
1:31 am Enable Midstream Partners increases quarterly distribution; declares prorated 2nd quarter distribution (ENBL) : Co announces that the board of directors of its general partner has declared a quarterly cash distribution of $0.2464 per unit on all of its outstanding common and subordinated units for the quarter ended June 30, 2014. This is Enable Midstream's initial distribution following the closing of its initial public offering on April 16, 2014, and the distribution has been prorated for the partial quarter. The distribution equates to $0.2950 per unit on a full-quarter basis or $1.18 per unit on an annualized basis, which represents a 2.6 percent increase from the partnership's minimum quarterly distribution. The distribution will be paid Aug. 14, 2014, to unitholders of record as of the close of business Aug. 4, 2014.
1:31 am Platinum Group Metals files report on revised and updated mineral resource estimate for the Waterberg joint venture and Waterberg extension projects (PLG) : Co announces an increase in the estimated Inferred Mineral Resource at the Waterberg Joint Venture and adjacent Waterberg Extension in South Africa, it has filed the associated National Instrument 43-101 technical report.
- The previously announced total Inferred resource on the Waterberg Joint Venture and the Waterberg Extension in the "T" and "F" layers are estimated at 29 million ounces 4E, 287 million tonnes grading 3.15 g/t 4E (0.94 g/t Pt, 1.92 g/t Pd, 0.04 g/t Rh, 0.25 g/t Au, 30%, 61%, 1%, 8% respectively).
- Exploration at the Waterberg Joint Venture and the Waterberg Extension continues with 24 drill rigs, focused on in-fill drilling with the objective of converting the majority of Waterberg Platinum deposit on the Waterberg Joint Venture to Indicated as well as expanding the open deposit.
1:30 am Brookfield Asset Mgmt acquires Wilmington Shares (BAM) : Brookfield Asset Management announces that it has acquired 611,220 Class A Shares of Wilmington Capital Management pursuant to a private transaction.
- Brookfield intends to hold the Shares for investment purposes. As a result of this transaction, Brookfield now owns and controls a total of 1,286,220 Class A Shares of Wilmington, representing approximately 17% of the issued and outstanding shares in the class.
- The Shares were acquired for fair market value consideration of $2,298,187 paid in a non-interest bearing promissory note, which value represents $3.76 per Share. Brookfield may acquire additional securities of Wilmington but has no current plans to do so.
1:29 am RadioShack receives continued listing standards notice from the New York Stock Exchange (RSH) : Co announces it received a continued listing standards notice from the New York Stock Exchange on July 24, 2014, because the average closing price of the Company's common stock had fallen below $1.00 per share over a period of 30 consecutive trading days.
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