4:41 pm Theravance calls for redemption of $172.5 mln of 3% Convertible Subordinated Notes due 2015 (THRX) : Co announced that it has called for redemption all of its outstanding 3% Convertible Subordinated Notes due 2015, pursuant to the provisional "soft call" redemption right in the indenture governing the 2015 Notes. Any 2015 Notes outstanding on July 5, 2013 will be redeemed in cash for 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. The 2015 Notes are convertible at any time prior to 5:00 p.m. Eastern time on July 3, 2013 into shares of Theravance's common stock at a conversion rate of 38.6548 shares per $1,000 principal amount (equivalent to a conversion price of approximately $25.87). On June 3, 2013, the closing price for Theravance's common stock was $35.49.
4:40 pm Air Lease announces the placement of two new ATR 72-600s with Golden Myanmar Airlines (AL) :
4:32 pm Territorial Bancorp adopts fourth repurchase program of 532k shares (TBNK) : Co announces that its Board of Directors has adopted a fourth stock repurchase program. Under this repurchase program, the Company may repurchase up to 532,000 shares of its common stock, or approximately 5% of the current outstanding shares.
4:31 pm AVEO Pharma announces strategic restructuring; does not expect tivozanib to receive FDA approval; to hold conference call at 8:30 a.m. ET on Wednesday, June 5 (AVEO) : Co announced a strategic restructuring that will refocus the company's efforts and resources on the ongoing clinical development of tivozanib in colorectal and breast cancer, as well as advancing key pipeline and preclinical assets. This restructuring is expected to extend the company's cash runway for at least two years, which is beyond anticipated data read-outs from ongoing trials of tivozanib and AV-203. The AVEO management team will host a conference call at 8:30 a.m. ET on Wednesday, June 5 to discuss the restructuring and strategic direction of the company in more detail.
"As a result of the recent ODAC meeting, we believe that it is likely that tivozanib will not receive FDA approval for renal cell carcinoma or RCC," said William J. Slichenmyer, M.D., chief medical officer of AVEO. "With the decision of our partner, Astellas, not to proceed with a European filing for tivozanib or financially support future clinical trials in RCC, AVEO has no plans at this time to pursue tivozanib development in RCC. We deeply regret the impact that this decision may have on the RCC community and wish to express our sincere gratitude to the patients and their families, investigators and nurses who have participated in our trials and supported the development of tivozanib in RCC. Tivozanib will continue to be available to those patients who remain on therapy."
"The company intends to focus its R&D efforts on areas in oncology where the unique insights derived from AVEO's proprietary Human Response Platform will allow the development of targeted agents with the potential to provide substantial clinical benefit for specific biomarker-defined patient populations that could enable a clear regulatory pathway to approval," said Tuan Ha-Ngoc, president and chief executive officer of AVEO.
Development update: AVEO and Astellas are continuing the BATON Phase 2 clinical trials of tivozanib in breast and colorectal cancer. AVEO intends to continue the development of AV-203, our clinical-stage ERBB3 (HER3) inhibitory antibody candidate, currently in Phase 1 with expansion cohorts in specific biomarker-defined patient populations. As previously announced, the company intends to focus its efforts on further ficlatuzumab development through external collaborations at this time. Ficlatuzumab is a potent hepatocyte growth factor (:HGF) inhibitory antibody that blocks the HGF/c-Met pathway by binding to the HGF ligand with high affinity and specificity.
Restructuring and Reogranization: AVEO's strategic restructuring will eliminate approximately 140 positions, or 62% of AVEO's workforce, across the company. Separately, Elan Ezickson, executive vice president and chief operating officer of AVEO, has informed the company that after a transition period, he will resign effective July 31, 2013 to pursue new opportunities.
Updated Financial Guidance: AVEO ended the first quarter of 2013 with $192 million in cash, cash equivalents and marketable securities and estimates year-end cash of approximately $115 million. Based on its revised operating plans, AVEO expects to realize cost reductions of approximately $190 million over the next two years compared with prior projections, inclusive of personnel-related restructuring charges of approximately $7.5 to $8.5 million. With this restructuring, AVEO expects that its current cash and marketable securities are sufficient to fund operations for at least two years.
4:31 pm Marketaxess announces monthly volume statistics for May 2013 (MKTX) : Co announced total monthly trading volume for May 2013 of $62.5 billion, consisting of $39.0 billion in U.S. high-grade volume, $15.8 billion in other credit volume, and $7.7 billion in liquid products volume. This data can be accessed on MarketAxess' website at www.marketaxess.com.
4:18 pm Mitcham Ind misses by $0.01, misses on revs (MIND) : Reports Q1 (Apr) earnings of $0.48 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.49; revenues fell 21.1% year/year to $27.3 mln vs the $29.91 mln consensus.
4:16 pm Exa beats by $0.02, beats on revs; guides Q2 revs in-line; reaffirms FY14 revs guidance (EXA) : Reports Q1 (Apr) adj. loss of $0.02 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.04); revenues rose 10.6% year/year to $12.5 mln vs the $12.17 mln consensus. License revenue was $10.7 million for the first quarter of fiscal 2014, compared to $10.0 million in the comparable period in fiscal 2013. Project revenue was $1.8 million for the first quarter of fiscal 2014, compared to $1.3 million in the comparable period in fiscal 2013.
Co issues in-line guidance for Q2, sees Q2 revs of $12.5-13.5 mln vs. $13.21 mln Capital IQ Consensus Estimate. Non-GAAP net loss is expected to be in the range of ($0.7) million to ($0.4) million.
Co reaffirms guidance for FY14, sees FY14 revs of $55-58 mln vs. $55.68 mln Capital IQ Consensus Estimate. Non-GAAP net income is expected to be in the range of $0.7 million to $1.5 million.
"Revenue in the first quarter was at the high end of our guidance, increasing 11%, or 14% on a constant currency basis, from a year ago. With the return of customer spending materializing, we are beginning to see the results of investments that we made over the last several quarters in our field organization. We are particularly encouraged by the strong growth of 40% we saw in project revenue, which we regard as a leading indicator to future licensing activity. While certain vertical markets and geographies continue to face economic challenges, overall we have seen an improvement in product development activity among our customer base. With simulation solutions that can replace the need for costly prototypes, we remain confident in our ability to see sequential improvements in year-over-year top line growth as we progress through the remainder of fiscal 2014."
4:15 pm OCZ Tech announces settlement of shareholder derivative litigation (OCZ) : Co announces that it has reached a settlement in principle of federal shareholder derivative litigation filed in connection with the Company's previously announced financial restatement. The settlement is subject to negotiation of final documentation. It is also subject to court approval. The settlement will be funded by the Company's D&O liability insurance and will not require any payments by the Company. This settlement does not resolve separate consolidated shareholder class actions pending in connection with the restatement.
4:13 pm Saba Software: NASDAQ announced it will delist the common stock of Saba Software and Wireless Ronin Technologies (RNIN) (SABA) : NASDAQ announced that it will delist the common stock of Saba Software. Saba Software's stock was suspended on April 09, 2013 and has not traded on NASDAQ since that time. Also, NASDAQ announced that it will delist the common stock of Wireless Ronin Technologies (RNIN). Wireless Ronin Technologies' stock was suspended on May 31, 2013 and has not traded on NASDAQ since that time.
4:08 pm Bazaarvoice beats by $0.01, beats on revs (BV) : Reports Q4 (Apr) loss of $0.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.13); revenues rose 37.9% year/year to $43.3 mln vs the $42.44 mln consensus.
4:07 pm Fidelity Southern announces $60 mln secondary offering of common stock (LION) : The co intends to use the net proceeds from this offering, together with its cash on hand as necessary, to: (i) redeem the $48.2 mln in shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, originally issued to the U.S. Department of the Treasury under the Troubled Asset Relief Program Capital Purchase Program; and (ii) redeem the two series of its fixed rate trust preferred securities with an aggregate outstanding principal amount of $20.5 mln, plus an estimated $410 thousand of after-tax redemption premiums. The co intends to use any remaining net proceeds for general corporate purposes. Keefe, Bruyette & Woods, a Stifel company, and Robert W. Baird & Co. are the joint book-running managers in the offering. FIG Partners is acting as co-manager for the offering.
4:07 pm Ambarella beats by $0.08, beats on revs (AMBA) : Reports Q1 (Apr) earnings of $0.21 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.13; revenues rose 30.9% year/year to $33.9 mln vs the $31.89 mln consensus.
Gross margin on a non-GAAP basis for the first quarter of fiscal 2014 was 64.0%, compared with 71.1% for the same period in fiscal 2013.
Co states, "During the quarter, we made excellent progress in the IP security camera market with new design wins at both professional and consumer IP-camera customers. We also saw especially strong revenue growth in the wearable sports camera category, led by market leader GoPro. In the automotive camera after-market, we continued to grow revenue while successfully expanding our customer base."
4:06 pm Atwood Oceanics announces contract for the Atwood Condor (ATW) : Co announced today that one of its subsidiaries has been awarded a drilling services contract by Shell Offshore Inc. for the dynamically positioned, ultra-deepwater semisubmersible rig, the Atwood Condor. The contract has a term of 39 months from the date the rig is assigned from Hess Corporation, which is expected to occur in late August 2013. The drilling program will be performed in the U.S. Gulf of Mexico at a dayrate of approximately $555,000. This contract will supersede the remainder of the existing contract with Hess Corporation. With the award of this contract, the firm contractual commitment for the Atwood Condor is expected to extend to November 2016. This contract adds approximately $502 million in revenue backlog.
4:06 pm Sovran Self Storage Announces Financing of $500 Million in Unsecured Term Notes and Credit Facility; Raises Guidance (SSS) : Co announces details of financing arrangements totaling $500 mln of senior, unsecured debt. As part of the new arrangement, the bank lending syndicate has committed $100 mln for a delayed draw note to provide funding for the co's repayment of term notes maturing in Sep 2013. The new financing is for seven years and is to be unsecured.
Co is increasing its projection of FFO for FY13 to $3.59-3.63 per share vs consensus of $3.56. Most of the benefit of the refinancing will impact Q4.
4:05 pm Mattress Firm beats by $0.02, reports revs in-line; guides FY14 EPS in-line, revs above consensus (MFRM) : Reports Q1 (Apr) earnings of $0.38 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.36; revenues rose 31.6% year/year to $276 mln vs the $274.39 mln consensus.
Co issues in-line EPS guidance for FY14, sees EPS of $1.90-1.98, excluding non-recurring items, vs. $1.95 Capital IQ Consensus Estimate; sees FY14 revs slightly above consensus, sees revs of $1.24-1.25 bln vs. $1.23 bln Capital IQ Consensus Estimate.
4:04 pm NCI Building Systems misses by $0.08, reports revs in-line (NCS) : Reports Q2 (Apr) loss of $0.28 per share, $0.08 worse than the Capital IQ Consensus Estimate of ($0.20); revenues rose 17.3% year/year to $293.4 mln vs the $293.13 mln consensus.
"Our performance improved throughout the fiscal second quarter, concluding with a profitable April. At the end of the period, the Buildings group had improved its backlog year-over-year by 10% in volume and 6% in value. The more recent additions to backlog in the period reflected an increased level of design/build projects with improved pricing. The Components group delivered significant growth in Commercial/Industrial sector sales for insulated metal panels. In addition, sales of core roofing and sidewall products to NCI's largest OEM customers showed meaningful quarterly growth for the first time since 2009. In the Coatings group, the Middletown, Ohio light gauge paint line continued to increase production and is on pace to contribute positively to profitability in the fiscal fourth quarter of 2013."
4:02 pm Triangle Capital names Ashton Poole as President and Chief Operating Officer (TCAP) : Co announced that E. Ashton Poole will join the Company as President and COO and as a member of the Company's Board of Directors, effective July 22, 2013. Mr. Poole, a Raleigh native, brings more than two decades of strategy consulting, investment banking, and management experience to Triangle. For the past nineteen years Mr. Poole has worked at Morgan Stanley, where he was based in New York and served as a Managing Director in both the Power & Utility and Diversified Industrial Groups.
4:02 pm KCAP Financial announces pricing of a $465 mln CLO fund to be managed by Trimaran Advisors, LLC (KCAP) : Co announced that its wholly owned portfolio company, Trimaran Advisors, L.L.C., has priced Catamaran CLO 2013-1 Ltd., a $465 million Collateralized Loan Obligation ("CLO") fund. Trimaran will serve as the investment manager for the CLO and KCAP Financial will invest approximately $9.5 million in the subordinated notes issued by the fund. This is the second CLO fund Trimaran has brought to the market since its acquisition by KCAP Financial in February of 2012.
4:02 pm Shuffle Master beats by $0.01, beats on revs (SHFL) : Reports Q2 (Apr) earnings of $0.21 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.20; revenues rose 17.1% year/year to $77.4 mln vs the $71.77 mln consensus. The Utility, Electronic Gaming Machine, and Proprietary Table Games businesses all saw double-digit growth over the same period last year. Recurring revenue grew 8% year-over-year to $31.2 million. A $1.2 million increase in PTG recurring revenue accounted for over half of recurring revenue growth.
"We are confident that keeping our IP-rich businesses well-capitalized has been, and will continue to be, our most important use of cash. However, given our balance sheet's current strong position, we will continue to look at the best way to manage a balance between investing in our business and capital allocation for potential M&A, stock repurchases, and dividends."
4:01 pm Wilshire Bancorp reinstates quarterly cash dividend at $0.03 per share (WIBC) : All stockholders of record as of June 30, 2013 will be paid a cash dividend of $0.03 per common share, payable on July 15, 2013.
3:57 pm Abbott Labs: Two real-world European studies of Abbott's minimally invasive MitraClip device demonstrate positive outcomes for patients with mitral regurgitation (ABT) : Co announced publication of positive outcomes from two European post-approval studies of the first-in-class catheter-based MitraClip therapy for the treatment of mitral regurgitation (MR). Results from ACCESS-EU, a European prospective study that enrolled 567 patients at 14 sites, have been published in the Journal of the American College of Cardiology. In addition, findings of the investigator-sponsored German TRAnscatheter Mitral Valve Interventions (:TRAMI) registry, which enrolled 1,064 patients at 20 German sites, were recently published in EuroIntervention. Data from ACCESS-EU demonstrated that in real-world, post-approval experience in Europe, patients undergoing the MitraClip therapy are predominantly high surgical risk, elderly patients who are mainly affected by functional MR, a type of MR in which a damaged heart impairs the performance of a normal mitral valve. ACCESS-EU showed that in this patient population, the MitraClip procedure demonstrated low rates of hospital mortality and adverse events and provided significant improvements in day-to-day quality of life at one year following treatment.
3:57 pm Clearwire: DISH refutes Sprint (S) claims regarding DISH's tender offer for Clearwire Shares (CLWR) : DISH Network (DISH) refuted Sprint (S) claims that DISH's tender offer for Clearwire Corporation shares runs afoul of Delaware law and the Clearwire Equityholders' Agreement. In a letter addressed to Clearwire Chairman John Stanton, DISH Chairman Charlie Ergen said: "In light of recent public statements made by Sprint about the DISH proposal that we believe are incorrect and misleading to Clearwire stockholders in several material respects, it is important that we correct the record regarding the DISH proposal." Ergen concluded the note stating: "We remain confident that the DISH proposal is both actionable and clearly superior to the proposed Sprint merger. More importantly, it also provides a meaningful alternative to the significant group of your minority stockholders that remain opposed to the Sprint merger while providing a clear path for Clearwire to become a self-sustaining company."
3:46 pm Chesapeake Utilities completes acquisition of opearting assets of Eastern Shore Gas; expected to be earnings accretive in the first full year of operations (CPK) : Co announced that it has completed the acquisition of the operating assets of Eastern Shore Gas Company ("ESG") and its affiliate, Eastern Shore Propane Company ("ESP"), which are located in Worcester County, Maryland. Chesapeake's wholly-owned subsidiaries, Sandpiper Energy, Inc. and Sharpgas, Inc., acquired and will operate the ESG and ESP assets, respectively. The transaction was consummated on May 31, 2013. Management expects the transaction to be earnings accretive in the first full year of operations.
3:43 pm Omega Protein reaches agreement to resolve previously disclosed Coast Guard and EPA investigation; to pay $5.5 mln fine (OME) : Co announced that its subsidiary, Omega Protein, Inc., has reached an agreement with the United States Attorney's Office for the Eastern District of Virginia that resolves a pending U.S. Coast Guard and Environmental Protection Agency ("EPA") investigation related to its Reedville, Virginia fishing vessels and operations. As previously disclosed, in April 2010, the Company received a request for information from the EPA concerning its subsidiary's bail wastewater practices used in fishing operations at its Reedville facility. Also as previously disclosed, in February 2011, the U.S. Coast Guard conducted inspections at the Reedville facility regarding the Reedville vessels' bilge water discharge practices. Omega Protein's subsidiary's agreement with the U.S. Attorney's Office resolves both issues. Pursuant to terms of the agreement, Omega Protein's subsidiary has pleaded guilty to two Clean Water Act violations. The plea agreement requires Omega Protein's subsidiary to pay a $5.5 million fine, be placed on a three year term of probation, and implement an environmental compliance program. In addition to the $5.5 million fine, the subsidiary will be required to make a $2 million payment to the National Fish and Wildlife Foundation to fund projects in Virginia related to the protection of the environmental health of the Chesapeake Bay. The plea agreement has been approved by the U.S. District Court for the Eastern District of Virginia.
3:33 pm Major averages extend recovery in late trade -- Dow -57, S&P -6.5, Nasdaq Comp -16 (SPY) :
3:30 pm Earnings Calendar (:SUMRX) : Today after the close look for the following companies to report:
- AMBA, ALOG, BV, BOBE, EXA, MFRM, MIND, NCS, SHFL
- BF.B, CVGW, CYBX, HOV, JOSB, LAYN, THR
2:57 pm NYMEX Energy Closing Prices (:COMDX) :
- July crude oil fell $0.08 to $93.33/barrel
- Crude oil began pit trade in the red and popped into positive territory and to a session high of $94.41 in late morning action. However, the energy component was unable to hold on to the gain and fell back into negative territory, settling with a 0.1% loss.
- July natural gas rose $0.02 to $4.00/MMBtu
- Natural gas chopped around in a fairly tight range between $3.99 and $4.03 during today's floor trade. It eventually settled with a 0.5% gain.
- July heating oil rose 4 cents to $2.87/gallon
- July RBOB gasoline rose 4 cents to $2.82/gallon
2:46 pm Index Change Reminder (:INDXCH) : Liberty Media (LMCA) will become a component of the NASDAQ-100 Index, the NASDAQ-100 Equal Weighted Index, and the NASDAQ-100 Ex-Technology Sector Index prior to market open on Wednesday, June 5, 2013. Co will replace Virgin Media (VMED).
2:43 pm Elan announces outcome of Irish High Court injunction: Royalty Pharma to refrain from publishing its proxy statements to shareholders (ELN) : Co confirms that Royalty Pharma has this afternoon (Irish time) agreed not to further disseminate its proxy statement, which the Irish High Court on June 3, 2013 restrained Royalty Pharma from distributing to Elan shareholders, until the Irish Takeover Panel has reviewed the contents of the proxy statement for compliance with Irish Takeover Rules disclosure requirements. Until such time as the Irish Takeover Panel has resolved these matters, Royalty Pharma may not mail or distribute the proxy statement to Elan shareholders.
2:33 pm Floor Talk (:TALKX) : Following an early attempt to extend yesterday's gains, the equity market has been beaten back in steady fashion. Selling interest has been broad-based and has cut across all sectors, with the exception of the telecom services sector (+0.6%). The small-cap and mid-cap stocks have suffered the largest losses. The Russell 2000 and S&P 400 Midcap Index are down 1.4% and 0.9%, respectively, while the S&P 500, Dow Jones Industrial Average and Nasdaq 100 are all down 0.7%.
The consistency in losses among the large-cap averages suggests this selling is more mechanical in nature than anything else. In turn, it appears to have its roots in a technical base. The early advance extended the S&P 500 to the 1647 level where it quickly ran into resistance. From that point, the market went on the defensive without any substantive news forcing the action and continued to trend lower before selling accelerated around 1:30 p.m. ET when support at 1635 was taken out.
Strikingly, there hasn't been a rush to safety in the Treasury market in the face of mounting losses in the equity market. Treasuries have pared larger losses, yet the 10-year note still remains underwater, down three ticks with its yield at 2.13%. Treasuries could show more buoyancy if stocks continue to fall out of bed, but as of now, they are marking time with traders in that market cognizant that Friday's employment report for the month of May could change things in a hurry in either direction.
The S&P 500 has attempted to hold the selling line around the 1624 mark and is a few points off its worst levels of the day. The Dow Jones Industrial Average has also moved off its session lows by a modest amount but will have to work harder if it is to achieve a gain for the 21st straight Tuesday.
2:31 pm Shuffle Master establishes agreement with video-streamed live dealer gaming provider Evolution Gaming, which is based in Riga, Latvia (SHFL) : Under this agreement, Evolution will receive the rights to offer many of SHFL's specialty table game titles in its online live casinos. Evolution's video-streamed live dealer environment allows players to play against live dealers over an online connection.
2:31 pm Dollar Ticks Higher: 10-yr: -04/32..2.135%..USD/JPY: 100.15..EUR/USD: 1.3068 (:SUMRX) : The Dollar Index continues to hold modest gains as action take place near 82.80. The greenback has spent the entire session in positive territory, reversing some of yesterday's losses. Click here to see a daily Dollar Index chart.
- EURUSD is flat at 1.3070 with action holding in a tight 10 pip range throughout the afternoon. Today's action has been bookended by the 100- and 200-day moving averages, but neither the bulls nor bears have been able to gain the upper hand as evidence by the flat trade. Eurozone data includes retail sales, and Italian and Spanish Services PMI. The European Central Bank will opine on Thursday.
- GBPUSD is -20 pips at 1.5295 as action mimics that of the euro. Today's better than expected data has been unable to boost sterling as traders look ahead to Thursday's Bank of England rate decision, the final for Governor Mervyn King. Britain's Services PMI is due out tomorrow.
- USDCHF is +5 pips at .9475 as trade holds the 50-day moving average. Current levels are being viewed as key support with both the 100- and 200-day moving averages lurking just below.
- USDJPY is +60 pips at 100.05, but has come considerably off the highs. The pair will be one to watch overnight as Prime Minister Abe gives Part III of his speech outlining the framework of Abenomics.
- AUDUSD is -145 pips at .9620 as trade gives up all of yesterday's gains. Today's selling comes after the Reserve Bank of Australia kept its key rate unchanged at 2.75%, but warned of potential rate cuts in the meetings ahead as the strong Australian dollar weighs on the economy. Australian data is limited to GDP.
- USDCAD is +70 pips at 1.0350 with action reversing most of yesterday's losses. Today's bid has the pair back near its one-year after buyers were able to defend the 1.0300 support area. Canada's building permits will be released tomorrow morning.
2:27 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :
- July corn rose 5 cents to $6.61/bushel
- July wheat settled unchanged at $7.09/bushel
- July soybeans fell 2 cents to $15.30/bushel
- July ethanol fell 1 cent to $2.55/gallon
- July sugar (#16 (U.S.)) rose 0.11 of a penny to 19.25 cents/lbs
2:23 pm S&P -13.5 edges off low after pulling back near yesterday's trough (SPY) : Intraday resistances on the bounce attempt are at 1628 and the 1630 area (recently hit 1627.75).
2:16 pm Crude oil pulling back and falling below $93/barrel heading into the close of floor trading; July crude oil is now -0.6% at $92.87/barrel (:COMDX) :
1:59 pm Morgans Hotel Group: OTK Associates responds to MHGC's 'promise' to explore strategic alternatives (MHGC) : OTK Associates, the largest stockholder of Morgans Hotel Group with 13.9% of the outstanding common stock of the company, issued the following in response to Morgans' press release announcing its intention to initiate a process to explore strategic alternatives, if its directors are elected at its upcoming annual meeting: 'OTK believes this announcement, just ten days before the annual meeting, is simply another shameless and desperate attempt by the board to undermine an ongoing proxy contest and entrench itself. It seems that the current board and management, who have no meaningful stock ownership, will do anything to keep their jobs.... We believe Morgans' intention to initiate a credible sales process is highly unlikely... Do not be fooled by the last minute desperate attempts and empty promises of a board who knows its days of making poor decisions are coming to an end. We urge stockholders to stay focused on the facts, and vote and return the GOLD card today.'
1:56 pm COMEX Metals Closing Prices (:COMDX) :
- Aug gold fell $14.70 to $1397.40/ounce
- Gold fell back below $1400 per ounce on concerns over demand as the Reserve Bank of India extended import restrictions on the yellow metal to include state-run trading companies and others authorized to directly import gold. A stronger dollar index also put pressure on the metal. Prices fell as low as $1388.10 in late morning action. Unable to erase much of the loss, gold settled 1.0% lower.
- July silver fell $0.31 to $22.42/ounce
- Silver also struggled in negative territory during today's floor trade. It brushed a session low of $22.23 and settled slightly above that level, booking a loss of 1.4%.
- July copper rose 4 cents to $3.37/lb
1:39 pm Selling accelerates -- Dow -113, S&P -11.8, Nasdaq Comp -21 (SPY) :
1:27 pm Stock indices drop to fresh lows -- Dow -60, S&P -6.6, Nasdaq Comp -11 (SPY) : Relative sector weakness in recent action (underperforming the S&P) has been noted in: Retail XRT, Biotech IBB, Housing XHB, Internet FDN.
12:55 pm New session low Nasdaq Comp -5.7 and Dow -36 (:TECHX) : The S&P -4.5 and A/D Line have thus far not confirmed the new lows.
12:33 pm Dell and Oracle (ORCL) expand strategic alliance (DELL) : Today at Dell Enterprise Forum, Dell announced an expanded worldwide alliance with Oracle designed to help customers of all sizes realize the strength of the combined solutions of both companies. The two companies will introduce a new x86 infrastructure offering that combines Dell's hardware with Oracle's software, enabling organizations to deploy and manage applications faster with increased performance, flexibility and value at every scale. As part of the agreement, Oracle has named Dell a preferred x86 partner, and Dell has named Oracle a preferred enterprise infrastructure partner, including Oracle Linux.
12:32 pm S&P -5.2 sets new low, probes support zone (SPY) : The index stalled at first level resistance noted in The Technical Take at 1645/1647 this morning with the reversal bringing first level support into play in recent action at 1635/1633 (session low 1634.42).
12:29 pm B&G Foods announces initial results of tender offer and consent solicitation for its 7.625% notes due 2018 (BGS) : Co announced that it has received and accepted for purchase approximately $218,063,000 aggregate principal amount of its outstanding 7.625% senior notes due 2018 validly tendered by 5:00 p.m., New York City time, on June 3, 2013, which was the deadline for holders to submit tenders in order to receive the consent payment in connection with the tender offer. B&G Foods has received consents from holders of approximately 87.75% of the Notes as of the consent payment deadline.
12:20 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
- MFG (3.98 +7.57%): Strength in Japanese banking related names (SMFG, NMR, MTU).
- DAL (18.34 +2.98%): Reported May PRASM +0.5% YoY.
- LULU (81.92 +3.32%): Heard positive comments at William Blair ahead of earnings.
- DG (49.51 -7.54%): Reported EPS in-line, revs in-line; lowered high end of FY14 guidance; downgraded to Mkt Perform from Strong Buy at Raymond James.
- ABX (20.71 -3.22%): Provided update on Pascua-Lama issues,
- CRM (39.92 -2.74%): Co will acquire ExactTarget (ET) for $33.75/share in cash;
- MNST (57.54 +6.63%): Stifel discussed takeaways from annual shareholder meeting; noted co said gross sales in April and May increased 9% y/y, implying May y/y sales growth of 12%-13%, an acceleration from 6% y/y growth in April.
- SEAS (37.13 +4.17%): Initiated with an Outperform at Wells Fargo.
- STM (9.73 +3.79%): Strength attributed to executive comments on order growth.
- CG (27.81 -5.38%): California Public Employees' Retirement System is offering for sale 11,062,133 common units representing limited partner interests of The Carlyle Group.
- HE (25.23 -3.37%): Lowered 2013 earnings guidance based on MECO 2012 test year final decision and order; puc approved annual decoupling filings.
- ULTA (87.89 -2.06%): Downgraded to Neutral from Buy at Goldman.
12:17 pm Dow -33 joins S&P -4.3 and Nasdaq Comp -3.3 at minor new session low (:TECHX) :
12:12 pm New session low for S&P -2.3 and Nasdaq Comp -1.1, Dow -18 held just above its low (SPY) :
12:05 pm Stock indices retrace half of morning pullback and falter -- Dow -11.6, S&P -1.3, Nasdaq Comp +1.4 (SPY) : Stock indices slip back after limited, choppy rebound stalls near 50% retracements.
12:02 pm European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE: + 0.5%
- Germany's DAX: + 0.1%
- France's CAC: + 0.1%
- Spain's IBEX: + 1.0%
- Portugal's PSI: + 1.3%
- Italy's MIB Index: + 0.5%
- Irish Ovrl Index: + 0.4%
- Greece ASE General Index: -2.8%
11:53 am Penn Virginia enters consent agreement with Pennsylvania DEP (PVR) : Co entered into an agreement with the Pennsylvania Department of Environmental Protection ("DEP") for a Consent Assessment for Civil Penalty ("CACP") issued in connection with alleged storm water violations associated with pipeline construction activity in Lycoming County during 2011. The settlement with the DEP concerns violations that are alleged to have occurred during late summer and fall 2011, and stem from soil sediment contained in storm water runoff alleged to have originated from pipeline construction sites operated by a PVR contractor. PVR agreed to pay a $150,000 civil penalty to settle the alleged violations.
11:49 am Crude oil is soaring here, moved back into positive territory and a new HoD; July crude is now +0.3% at $93.73/barrel (:COMDX) :
11:37 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (198) outpacing new lows (16) (:SCANX) : Stocks that traded to 52 week highs: ABM, ACAD, ACXM, ADES, AEL, AIT, ALGT, AMAT, AMPE, AMRB, AMWD, ATMI, ATML, ATX, AXE, AXL, AYR, BANC, BCPC, BEAT, BERY, BHE, BLMN, BOFI, CADX, CALD, CAR, CCF, CCIX, CEC, CERN, CFX, CHDX, CIT, CKP, CLFD, CLS, CNBKA, CNO, CNTY, COHU, CRTX, CRVL, CSII, CTGX, CTS, CVCY, DGI, DPZ, DRIV, DXCM, EBF, EFII, EFSC, EMES, ET, F, FBP, FFG, FFNW, FHCO, FIX, FLEX, FLML, FMER, FRBK, FRGI, FTK, FUL, GA, GGG, GIII, GLT, GM, GPX, HARL, HCAP, HCOM, HEES, HEI, HELE, HGG, HMA, HOGS, HURN, HVT, HWAY, HY, HYGS, IBCA, IBKC, IBOC, IDTI, IMMU, INTT, ISSI, JAZZ, JOBS, JOUT, KAI, KDN, KIRK, KND, LAD, LG, LNBB, LPNT, LUB, LULU, LVB, LYB, MCHP, MCRI, MENT, MHGC, MITK, MNKD, MOG.A, MRK, MSFT, MTRN, MTSN, MX, NASB, NBCB, NBTF, NCI, NPSP, NPTN, NSSC, NTSC, NUTR, NWY, OFG, OMG, ONNN, OPLK, OVBC, PFPT, PHMD, PXLW, RGLS, RMBS, ROVI, RRGB, RYAAY, SAIA, SBSI, SCOR, SFNC, SGMS, SKX, SMRT, SMTC, SNPS, SNX, SODA, SPAR, SPB, SPSC, SPTN, SRCE, STBA, STFC, STKL, STX, SWM, SXT, SYA, TBBK, TCBK, TEAR, TEN, TGT, TIS, TK, TLF, TQNT, TR, TSRA, TSRO, TTEC, TTHI, TTI, TYL, UNTD, USPH, VNDA, VPG, WBMD, WDC, WLB, WLDN, WMS, WOOF, WRLD, WST, WWE
Stocks that traded to 52 week lows: ACC, AMTG, FBN, FFN, GLOW, LPR, NEWL, OFS, ONTY, OPHC, PGRX, RAX, RIGL, SWSH, TCL, YZC
ETFs that traded to 52 week highs: GULF, SMH, SOXX
ETFs that traded to 52 week lows: EPU, MUB, SGG
11:32 am Currency Commentary: Dollar Slips to Three Week Lows Overnight (:SUMRX) :
- The Dollar Index tumbled below the 83 level to slide to 82.56, its lowest level in three weeks. The decline came following the release of the ISM Manufacturing survey which surprised markets by falling back into contraction. This has helped ease tapering concerns with many looking toward the September meeting as the most likely place for the Fed to either announce plans to taper or perhaps even taper in that meeting from the current $85 bln level. The main focus though remains on Friday's BLS report. Markets will get the first glimpse at jobs data tomorrow morning with the release of the ADP report.
- The euro is holding its 200 dma (1.3075). The single currency has been the beneficiary of a weak dollar. Also helping the currency this morning was a surprisingly better than expected Spanish jobs report. The ECB is set to meet on Thursday but expectations for the central bank to announce some sort of small business lending program have been pulled back. There is still some hope that the ECB will announce new collateral guidelines.
- The pound is attempting to hold the 1.53 level this morning. Economic data for the weak has been better than expected with the PMI construction number providing the latest beat this morning. There is little expected from Thursday's Bank of England meeting which will be the last for Mervyn King.
- The yen has stabilized to a certain degree. Volatility remains in the carry trade currency and is likely to do so for the foreseeable future. This morning yen is back at the 100 psych level. The move comes ahead of tomorrow's speech by PM Shinzo Abe in which he is expected to provide details of the third leg of Abenomics. Part III of the plan is expected to center around structural reform in pension plans. There are rising expectations that the Abe government will look to use some public pension plans to invest in industries and spur growth (FOREX, BONDX).
11:18 am Vivus: First Manhattan mails definitive proxy statement and sends letter to Vivus stockholders; urges Vivus stockholders to vote the white proxy card (VVUS) : First Manhattan, an owner-managed and operated investment advisory firm and the beneficial holder of ~ 9.9% of the outstanding shares of VIVUS, announced that it has filed definitive proxy materials with the SEC regarding the election of its independent director nominees. FMC is seeking to have its nine highly qualified nominees elected to Vivus' Board at the Company's 2013 Annual Meeting of Stockholders. First Manhattan mailed the proxy materials and a letter to Vivus stockholders highlighting that FMC believes Vivus' stock is undervalued, and that the Company will never achieve its full value with Vivus' current Board of Directors. In the letter, FMC details its analysis of the reasons for the destruction of value at Vivus, and explains its nominees' plan to maximize value for Vivus stockholders.
11:02 am C.R. Bard announces first patient enrolled in Lutonix Below the Knee clinical trial (BCR) : Co the enrollment of the first patient into the Lutonix Below the Knee (:BTK) Clinical Trial at The Cardiac and Vascular Institute in Gainesville, Florida. The purpose of this pivotal global, multi-center randomized Investigational Device Exemption trial is to compare the safety and effectiveness of the Lutonix 014 Drug Coated PTA Dilatation Catheter to a standard angioplasty balloon for the treatment of critical limb ischemia.
11:01 am Exelis wins $788 million contract to operate and protect critical U.S. military networks in Southwest and Central Asia (XLS) : Co has been awarded a U.S. Army contract to continue to provide information technology operations and maintenance support to the U.S. Army in Southwest and Central Asia. The contract has a potential value of $788 million when all options are exercised. The Operations, Maintenance and Defense of Army Communications in Southwest Asia and Central Asia (OMDAC-SWACA) contract, awarded by the U.S. Army Contracting Command, Fort Huachuca, Ariz., includes a phase-in period, a base period, two one-year options, and two one-year award terms. Exelis has been the incumbent on this contract, formerly called the Total Army Communications - Southwest Asia, Central Asia and Africa (TAC-SWACAA) contract, since 2005.
11:01 am Ryland Group promotes Pete Skelly to the position of Chief Operating Officer (RYL) : Co announced that Pete Skelly, President of Ryland's Homebuilding Operations Group, has been promoted to the position of Chief Operating Officer of the parent company effective June 3, 2013. Mr. Skelly has 25 years of experience with Ryland in a variety of financial and operational leadership positions. During his career, Mr. Skelly has held positions as Regional Vice President of Financial Operations, Division President and Region President.
10:57 am L Brands exhibiting strong behavior as price climbs up over its 3-week high along the 52.25 area (LTD) :
10:53 am Stock indices slide off highs, small-/mid-caps in the red -- Dow +9.1, S&P +1.7, Nasdaq Comp +8 (SPY) : Noted at 10:37 that breadth on the new market highs was lacking as the A/D line did not confirm the move.
10:43 am Panera Bread extends to fresh session high of 194.65, its multi-year high from last week is at 194.77 (PNRA) :
10:37 am Minor new session highs for stock indices -- Dow +40, S&P +4.9, Nasdaq Comp +15 (SPY) : Breadth on this extension is limited at the A/D line did not confirm the new highs.
10:34 am Cisco Systems notches new session high of 24.60, its multi-year high set last week is at 24.68 (CSCO) :
10:19 am Oil selling off here, falls to new session low (:COMDX) : July crude oil is now -0.8% at $92.70/barrel.
10:18 am S&P +1.4 slightly extends slip off early high/resistance -- Dow +20, Nasdaq Comp +7.1 (SPY) :
10:12 am Relative sector weakness in recent trade (:TECHX) : Sectors underperforming in recent action as the indices paused near first level resistances (09:42) include: Oil Service OIH, Energy XLE, Housing XHB, Utility UTIL, REITs IYR, Defense PPA, Medical Supplies, Software IGV, Ag/Chem MOO.
10:03 am Qualcomm continues recovery mode, attempting to reclaim its 200 sma (QCOM) : Stock established a new four week low yesterday breaking below a range floor and it 200 sma in the process. The rebound into the afternoon has been extended this morning back to the range low and its 200 sma at 63.48/63.57.
10:02 am Medtronic nets FDA clearance and 'CE' Mark for new peripheral angioplasty balloon (MDT) : Co announced today that the Pacific Plus percutaneous transluminal angioplasty (:PTA) catheter has received both U.S. Food and Drug Administration (:FDA) clearance and the CE (Conformite Europeenne) Mark. The launch of the new peripheral balloon catheter is underway in the United States and internationally. Indicated for the treatment of narrowed arteries in a variety of locations within the vasculature, including the renal, iliac, iliofemoral, femoral, popliteal and infrapopliteal arteries, the Pacific Plus PTA catheter epitomizes versatility. It features a hydrophilic coating for improved crossability, and enables fast deflation, which may shorten procedure time.
10:01 am Westell Tech division Kentrox announces issuance of patent (WSTL) : Kentrox announces the issuance of U.S. Patent No. 8,442,515 B2 to Kentrox by the United States Patent and Trademark Office (:USPTO). The patent is titled "Management system for monitoring and controlling remote sites and equipment." This invention leverages intelligence in a remote site device to monitor the conditions of the site and collect a comprehensive range of measurements and alarms. This data is then communicated to a management system that collects and stores the information to be used by upstream systems. Kentrox is based in Dublin, Ohio and operates as a division of Westell Technologies (WSTL).
10:01 am CME Group expands agricultural options offering with three new KCBT wheat options contracts (CME) : Co announced it has expanded its agricultural options offering through the introduction of three new options on the recently-acquired KCBT hard red winter (:HRW) Wheat futures contracts. KCBT Weekly Wheat Options, KCBT-CBOT Wheat Spread Options and MGEX-KCBT Wheat Spread Options will be available for trading on July 1, pending CFTC review.
9:56 am Sector laggards (:TECHX) : Sector underperforming thus far this morning include: Gold Miners GDX -2.9%, Silver SLV -1.4%, Gold GLD -1.1%m Mining XME -0.5%, Crude Oil USO -0.2%, REITs IYR -0.2%, Defense PPA -0.2%.
9:42 am Opening push to first level resistance -- Dow +19, S&P +3.5, Nasdaq Comp +9.7 (SPY) : The stock indices firmed off the open and have tested first level resistances noted in The Technical Take at 3471/3479 Nasdaq Comp (session high 3476), 1645/1647 S&P (session high 1645.59) and 15285/15300 Dow (session high 16292).
9:38 am Semiconductor Hldrs displays early relative strength, pushes slightly above its May high (SMH) : ALTR +2.3%, TXN +1.9%, AMD +1.9%, ADI +1.6%, XLNX +1.4%, LLTC +1.3%, INTC +1.2%, NVDA +1.2%, MU +1.1%, AMKR +1%, BRCM +1%, KLAC +0.8%, MRVL +0.8%.
9:31 am Century Aluminum announces early settlement results for tender offer and consent solicitation for its 8.0% senior secured notes due 2014 (CENX) : Co announced that it had received, as of 5:00 p.m., New York City time, on June 3, 2013, tenders and consents from holders of 92.18% of its 249,603,550 outstanding principal amount of 8% Senior Secured Notes due 2014 in connection with its previously announced tender offer and consent solicitation for the Notes, which commenced on May 20, 2013, and are described in the Offer to Purchase and Consent Solicitation Statement dated May 20, 2013. The "Total Consideration" for each $1,000 principal amount of Notes validly tendered and not validly withdrawn prior to the Consent Expiration is $1,003.75, which includes a consent payment of $30 per $1,000 principal amount of Notes. Holders tendering after the Consent Expiration will be eligible to receive only the "Tender Offer Consideration," which is $973.75 for each $1,000 principal amount of Notes. Holders will also receive accrued and unpaid interest from the last interest payment on the Notes up to, but not including, the applicable settlement date for all of such Notes that we accept for purchase in the tender offer.
9:31 am W.P. Carey announces $52 mln acquisition of Cargotec campus in Finland (WPC) : Co announced that it has acquired the research and development and class-A office facilities of Cargotec Corporation in Tampere, Finland, which are subject to a 20-year triple-net lease with the company. The total acquisition cost of the 183,569 square foot facility was approximately $52 million ( 40 million).
9:30 am Aceto subsidiary, Rising Pharmaceuticals, launches generic version of Nasalide (ACET) : Co announced that Rising Pharmaceuticals Inc., its finished dosage form generics subsidiary, launched the 0.025% strength of Flunisolide Nasal Solution USP, an FDA approved generic version of Nasalide. According to IMS Health data, U.S. market sales for Flunisolide, an anti-inflammatory steroid used to treat seasonal and perennial allergies, were approximately $37.3 million for the twelve months ended December 31, 2012. This is the eighth generic product launched by Rising Pharmaceuticals in fiscal 2013.
9:28 am Starwood Hotels says the co will open 20 new hotels in China in 2013 (HOT) : The co will open one new hotel every 20 days in China and 70 percent of its pipeline of new hotels under construction and in development are in second and third tier cities.
9:27 am On The Wires (:WIRES) :
- The Defense Information Systems Agency has awarded ITT Exelis (XLS) a contract to develop a global netted communications capability for the agency's Distributed Tactical Communications System.
- Deltek is using Tellabs (TLAB) Optical LAN Solution to deliver gigabit-to-the-desk service over a passive fiber infrastructure at the company's new headquarters in suburban Washington, D.C.
- Streamline Health Solutions (STRM) has entered into a joint marketing agreement with Patientco with the intention to increase net rev for healthcare providers by accelerating patient payments.
- Echelon (ELON) announced that it has added new products to its Grid Modernization portfolio designed specifically for delta-wired distribution networks.
- GreenShift (GERS) announced that its wholly-owned subsidiary, GS CleanTech, has filed suit against Pacific Ethanol (PEIX) in the Eastern District of California for infringement of GreenShift's patented corn oil extraction processes.
9:24 am On The Wires (:WIRES) :
- Safe Bulkers (SB) announced the election of two Class II directors at the Company's annual meeting of stockholders held yesterday.
- Mentor Graphics (MENT) announced that Freescale Semiconductor (FSL) has selected Mentor as an ideal partner in the silicon test, yield analysis, physical verification and DFM technology areas.
- SinglePlatform, a division of Constant Contact (CTCT), announced a partnership with GrubHub to become a menu provider for GrubHub's AllMenus.com and integrate GrubHub's online ordering platform into SinglePlatform menus.
- ADP (ADP) has acquired Payroll S.A., a provider of human resource outsourcing, payroll and employee benefits services across Chile, Argentina and Peru. The terms of the transaction were not disclosed.
- Lincoln Financial Distributors, the wholesale distribution subsidiary of Lincoln Financial Group (LNC), announced that LPL Financial adopted its interactive Annuity Visualizer as part of its existing annuity tools and resources platform.
- New Samsung (SSNLF) GALAXY Tab 3 10.1-inch is equipped with Intel's (INTC) 3G and 4G LTE solutions, and powered by the Intel Atom SoC platform for Android tablets.
9:15 am MGT Capital Investments announces sale of Medicsight patents (MGT) : Co announced that it has signed a definitive agreement with a major Asian conglomerate to sell its portfolio of medical imaging patents. The monetization of these patents completes MGT's transition to a company focused on internet and mobile gaming. "We expect the proceeds of roughly $1.5 million to be deployed in the skill-based gaming space, where we see tremendous opportunity. Our board of directors is also considering other avenues to enhance shareholder value."
9:15 am S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: +2.70. (:WRAPX) : Equity futures hover near their pre-market highs as today's cash session sets up for a slightly higher open. Pre-market action has been generally quiet with just a handful of names seeing notable moves.
In earnings news, Dollar General (DG 50.00, -3.55) trades down 6.6% after the company's cautious full-year guidance overshadowed its in-line results.
Elsewhere, Salesforce.com (CRM 39.22, -1.64) is lower by 4.0% after the company announced its acquisition of ExactTarget (ET 33.74, +11.64) in a transaction valued at $2.5 billion. Per the agreement, Salesforce.com will pay $33.75 per share of ExactTarget, which represents a 53.0% premium to yesterday's closing price.
Today's economic data was limited to the April trade deficit, which widened to $40.3 billion from $37.1 billion. The Briefing.com consensus expected the deficit to come in at $41.0 billion.
9:13 am NovaCopper announces escrow release (NCQ) : Co announced that in connection with the approval of the shareholders of NovaGold Resources (NG) at the shareholders meeting of NovaGold held on May 29, 2013, and the execution by NovaGold of an agreement dated May 30, 2013 amending an original escrow agreement dated May 22, 1987, NovaGold common shares registered to certain founders of NovaGold may be released from escrow upon compliance by NovaGold with the provisions of National Policy 46-201 - Escrow For Initial Public Offerings, which provides that NovaGold must issue a news release at least 60 days before the first release of escrow securities under the amending agreement.
9:11 am Navidea Biopharma presents will present data at 2013 Annual Meeting of the Society of Nuclear Medicine and Molecular Imaging June 8-12; fourteen presentations highlight results from Lymphoseek and NAV4694 clinical trial (NAVB) :
9:11 am Amazon.com and Viacom (VIA) announce multi-year video licensing agreement; adds a selection of TV shows available exclusively on prime instant video (AMZN) : Amazon.com (AMZN) and Viacom Inc. (VIAB, VIA) announce an expanded multi-year, multi-national digital video licensing agreement to bring hundreds of TV shows and thousands of TV episodes from Viacom to Prime Instant Video. The service will be available on Kindle Fire, iPad, iPhone, Roku and more.
9:06 am QLogic announces restructuring plan; expects to achieve annualized cash savings of ~ $20 mln; reaffirms 1Q2014 guidance (QLGC) : Co announced it is implementing a restructuring plan designed to streamline business operations with the goal of driving long-term profitable growth. The restructuring plan includes a workforce reduction, the consolidation of several engineering activities, and enhanced product development focus. These restructuring activities are part of an overall plan to deliver greater value to customers and shareholders, while accelerating innovation.
QLogic anticipates the restructuring actions will be substantially completed within the next twelve months. Once fully implemented, the company expects the restructuring actions will achieve annualized cash savings of approximately $20 million, primarily in operating expenses. QLogic has plans to reinvest part of these savings in the development of new products and programs.
The company estimates that it will incur pre-tax GAAP charges between $20 million and $23 million in connection with these restructuring actions, the majority of which will be recorded during the first half of fiscal year 2014. The company reaffirms its previously announced non-GAAP financial guidance for the first quarter of fiscal year 2014.
9:04 am Tesaro details Niraparib Phase 1 clinical data at ASCO; progression free survival exceeded one year among platinum-sensitive ovarian cancer responders (TSRO) : Co presents final results from a Phase 1 trial of niraparib, an inhibitor of poly ADP-ribose polymerase. At a dose of 300 milligrams once daily, which represents the dose and schedule that will be utilized in the Phase 3 studies, 75% (3/4 patients) with platinum sensitive high grade serous ovarian cancer achieved a RECIST response.
- Across all dose levels (30 milligrams to 400 milligrams daily), a RECIST response rate of 46% (6/13 patients) was observed in this population.
- A RECIST response rate of 50% (5/10 patients) was achieved in patients with platinum sensitive ovarian cancer and germline BRCA mutations.
- The median duration of response was 431 days for platinum sensitive germline BRCA patients and 444 days for platinum sensitive patients who were not germline BRCA mutation carriers.
- In addition, 50% (two of the four patients) with BRCA-positive breast cancer achieved a response.
- Of the 10 patients with prostate cancer who had evaluable circulating tumor cell count levels, seven (70%) had a reduction of >30% in CTC count.
- Niraparib was generally well tolerated at 300 milligrams daily, with a low rate of grade 3/4 toxicities.
- Thrombocytopenia was identified as the dose-limiting toxicity at a daily dose level of 400 milligrams.
- The most frequently observed adverse events at the 300 milligram dose included grade 1/2 anemia, fatigue and nausea.
9:04 am AstraZeneca: U.S. FDA grants priority review to Bristol-Myers Squibb (BMY) and AstraZeneca's metreleptin, an investigational agent for treatment of metabolic disorders associated with rare forms of lipodystrophy (AZN) : Co announced that the U.S. Food and Drug Administration (:FDA) has accepted and granted a Priority Review designation for the Biologics License Application (:BLA) for metreleptin, an investigational agent for the treatment of metabolic disorders associated with inherited or acquired lipodystrophy (LD), a rare disease estimated to affect a few thousand people around the world, often with an early age of onset.
The FDA grants Priority Review to medicines that may provide a treatment option where little or no adequate therapy exists. Under the Prescription Drug User Fee Act (:PDUFA), the FDA aims to complete its review within an eight-month review cycle, rather than the standard 12-month review cycle. The primary data supporting the BLA filing are from the National Institutes of Health (:NIH) ongoing, open-label trial in adult and pediatric patients with inherited or acquired LD.
9:04 am Delta Air Lines May PRASM +0.5% YoY (DAL) : Consolidated passenger unit revenue (:PRASM) for the month of May increased 0.5% year over year driven by unit revenue gains in Delta's New York hubs and the international entities, which offset 1 point of negative impact to system PRASM from the yen devaluation. Delta completed 99.9% of its flights in May and ran an on-time arrival rate of 86.2%. Over the Memorial Day travel weekend, Delta carried more than 1.3 million passengers, with a 99.98% completion factor and a 91% on-time arrival rate.
9:04 am Incyte announces data presented at 2013 ASCO offers first evidence that long-term treatment with Jakafi (ruxolitinib) may stabilize or reverse bone marrow fibrosis, a key marker of worsening disease in patients with myelofibrosis (INCY) : Co announced that results from an exploratory analysis of bone marrow fibrosis data from an ongoing Phase I/II single-arm, open-label clinical trial for Jakafi (ruxolitinib) were presented today at the 2013 American Society of Clinical Oncology (TATD) Annual Meeting in Chicago. Fibrosis of the bone marrow, a cardinal feature of myelofibrosis (MFGLQ), was shown to stabilize or reverse after 24 and 48 months of Jakafi treatment in the majority of patients with MF, a magnitude of an effect not seen with long-term treatment with hydroxyurea. Jakafi, an oral JAK1 and JAK2 inhibitor, is FDA-approved for the treatment of patients with intermediate or high-risk myelofibrosis.
"These results provide the first evidence of a drug therapy that may stabilize or improve bone marrow fibrosis and are encouraging because the only other proven option is bone marrow transplantation, which is a procedure with high risks. Future studies should improve our understanding of the significance of these findings," stated presenting author Hans Michael Kvasnicka, M.D., of the University of Frankfurt in Germany. According to Kvasnicka, additional research, including a European LeukemiaNet international initiative, is ongoing to better define the role of fibrosis in MF.
9:03 am StemCells secures $30 mln financing commitment from Lincoln Park Capital (STEM) : Co has entered into an agreement with Lincoln Park Capital Fund, LLC, an institutional investor based in Chicago, Illinois, under which the Company has the right to sell up to $30.0 million of common stock to Lincoln Park. Proceeds from any sales of stock will be used for general corporate purposes.
Under the terms of the agreement, Lincoln Park will immediately purchase $3.0 million in shares of StemCells common stock at a purchase price of $1.823 per share, which was the average of the prior ten trading days' volume weighted average price. Furthermore, for a period of three years, the Company has the right, at its sole discretion, to sell additional amounts up to $27.0 million of common stock to Lincoln Park subject to certain limitations.
9:02 am Pluristem to receive clinical-hold notice from the U.S. FDA (PSTI) : Co announced that it has received notification from the U.S. Food and Drug Administration (:FDA) that its United States phase II Intermittent Claudication (:IC) study (IND 15038) has been placed on clinical hold due to a serious allergic reaction in a case which required hospitalization.
Out of 74 patients enrolled in Pluristem's trials to date, this is the first case of a serious allergic event. This event occurred in a patient with multiple diseases which may have influenced the severity of the event. The patient was discharged from the hospital the following day, following the resolution of all her symptoms. The FDA will issue a letter within the next 30 days detailing a list of questions and requests for information from Pluristem.
9:01 am Merrimack Pharma's Phase 1 research supports MM-121 potential for investigation as combination with chemotherapy in patients with advanced solid tumors (MACK) : Co announced results from a Phase 1 clinical study that indicate the novel antibody MM-121 can be combined with standard doses of certain cytotoxic agents for investigation as treatment for patients with advanced solid tumors. The research was presented at the 2013 American Society of Clinical Oncology Annual Meeting in Chicago, IL, May 31 -- June 4, 2013.
The Phase 1 study of 43 patients with advanced solid tumors established that MM-121 can be combined at its recommended single agent dose with gemcitabine, pemetrexed, cabazitaxel or carboplatin. MM-121 is a fully human monoclonal antibody that targets ErbB3, a cell surface receptor implicated in tumor growth and survival across multiple malignancies.
Preclinical research in several model systems has shown that by inhibiting ErbB3 signaling, MM-121 may restore sensitivity, delay resistance and enhance the effect of certain cytotoxic agents as a combination therapy.
9:00 am Sinclair Broadcast enters into a definitive agreement to purchase the stock and broadcast assets of four television stations owned by TTBG for an aggregate purchase price of $115.35 mln (SBGI) : .......
9:00 am S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: +2.50. (:WRAPX) : U.S. equity futures continue to register slim gains with the S&P 500 futures up 0.1%.
The major Asian bourses ended mixed with Japan's Nikkei (+2.1%) winning back a portion of yesterday's losses. Overnight, the Reserve Bank of Australia opined, opting to keep its key rate unchanged at 2.75%, as expected. However, traders took note of the Statement, which suggested a tame inflation outlook leaves room for further rate cuts down the road as the strong Aussie dollar weighs on the economy. Data out overnight was light with Australia's trade deficit narrowing to AUD8.51 billion (AUD14.7 billion previous) and Japan's average cash earnings posting a weaker than expected 0.3% year-over-year (0.6% expected).
- In Japan, the Nikkei closed higher by 2.1% as traders gobbled up shares ahead of tomorrow's speech by Prime Minister Abe, in which he discusses Part III of Abenomics. Financial and real estate names were strong as Nomura Securities surged 7.6% and Sumitomo Realty & Development jumped 6.4%. Meanwhile, exporters lagged as Honda Motor added 0.8% and Komatsu tacked on 0.1%.
- Hong Kong's Hang Seng finished flat as trade swung between gains and losses. A mixed trade among financials saw Bank of China add 0.3% and Agricultural Bank of China slip 0.3%.
- In China, the Shanghai Composite settled lower by 1.2% as property stocks paced the decline. Gemdale lagged, sliding 2.2%, while China Vanke lost an in-line 1.2%.
Reports indicate the European Commission will propose a single bank oversight mechanism, which would be funded through contributions from banks.
- France's CAC trades higher by 0.5% with technology in the lead. Gemalto and StMicroelectronics are higher by 4.0% and 5.1%, respectively. On the downside, suppliers of building materials Bouygues and Cie de St-Gobain both trade with losses near 1.5%.
- In Germany, the DAX adds 0.5% as financials show strength. Allianz and Deutsche Bank are both up near 1.2%. Exporters are among the laggards as Daimler and Volkswagen shed 1.8% and 2.4%, respectively.
- The United Kingdom's FTSE trades up 0.8% as cyclical names pace the advance. Auto parts supplier GKN leads the way with a gain of 5.3%. On the downside, distributor Wolseley is lower by 4.4%.
8:58 am EPL Oil & Gas extends expiration date for exchange offer of 8.25% senior notes (EPL) : Co announced tthat it has extended the expiration date of its registered exchange offer to 5:00 p.m., New York City time, on Tuesday, June 4, 2013. The exchange offer is an offer to exchange up to $300 mln of registered 8.25% Senior Notes due 2018 that will be issued under an indenture dated February 14, 2011 for an equal principal amount of outstanding 8.25% Senior Notes due 2018 that were issued under an indenture dated October 25, 2012. The exchange offer was previously scheduled to expire at 5:00 p.m., New York City time, on Monday, June 3, 2013.
8:47 am On The Wires (:WIRES) :
- Qualstar (QBAK) has joined the Technology Alliance Program of Hitachi Data Systems.
- Pitney Bowes (PBI) announced that Roger Pilc is joining the co as Executive Vice President and Chief Innovation Officer.
- Encore Capital Group (ECPG) has been named to the Barron's 400 for the fourth time since the index's inception in 1997.
- FICO (FICO) and I-Score announced that several of the country's top banks will soon be using their cloud-based credit origination service.
- Rosetta Genomics (ROSG) announced plans to expand its U.S. commercial footprint from five sales territories currently to 12 territories beginning in July 2013.
- Mad Catz Interactive (MCZ) announced its intention to utilize ViviTouch 4D Sound technology from Bayer.
- BorgWarner (BWA) announced it supplies a number of advanced technologies for winners of the 2013 World Car of the Year Awards. For 11 out of the 13 finalists in all categories, co also produces one or more advanced technologies.
- Washington Real Estate Investment Trust (WRE) announced a major renovation plan for 7900 Westpark Drive. Co also announced recent LEED EB certifications of two office properties.
8:47 am Crude oil prices spikes into positive territory for the first time today and hits a new HoD; July crude oil is now +0.03% at $93.48/barrel (:COMDX) :
8:46 am IBM announces definitive agreement to acquire SoftLayer Technologies; financial terms not disclosed (IBM) : The acquisition will strengthen IBM's leadership position in cloud computing and will help speed business adoption of public and private cloud solutions.
8:42 am European Markets Update: CAC +0.6%, DAX +0.6%, FTSE +0.8% (:SUMRX) : European markets register modest gains following the release of several economic data points. The Eurozone PPI declined 0.6% month-over-month (-0.3% forecast, -0.2% prior). The United Kingdom's BRC Retail Sales Monitor increased 1.8% year-over-year (1.2% expected, -2.2% prior). In addition, construction PMI rose to 50.8 from 49.4 (49.6 forecast). Elsewhere, Spain reported a better-than-feared decline in unemployment of 98,300 (50,200 expected, 46,100 prior).
Reports indicate the European Commission will propose a single bank oversight mechanism, which would be funded through contributions from banks.
- France's CAC trades higher by 0.6% with technology in the lead. Gemalto and StMicroelectronics are higher by 4.0% and 5.1%, respectively. On the downside, suppliers of building materials Bouygues and Cie de St-Gobain both trade with losses near 1.5%.
- In Germany, the DAX adds 0.6% as financials show strength. Allianz and Deutsche Bank are both up near 1.2%. Exporters are among the laggards as Daimler and Volkswagen shed 1.8% and 2.4%, respectively.
- The United Kingdom's FTSE trades up 0.8% as cyclical names pace the advance. Auto parts supplier GKN leads the way with a gain of 5.3%. On the downside, distributor Wolseley is lower by 4.4%.
8:35 am Northern Dynasty calls EPA's Bristol Bay Watershed assessment process 'biased and manipulative' (NAK) : Co has filed a 205-page submission with the US Environmental Protection Agency (:EPA) in response to its call for public comments on the revised draft Bristol Bay Watershed Assessment (:BBWA), calling the draft report and process to complete it 'biased, manipulative and contrary to EPA's own guidelines.'
Northern Dynasty President & CEO Ronald Thiessen said the 2013 draft BBWA released in April suffers from the same major shortcomings as the original report published in May 2012 - in particular, that EPA continues to assess the environmental effects of a hypothetical mine of its own invention, one that does not employ modern engineering standards, environmental safeguards or project-specific mitigation measures and could not be permitted under US or Alaska law.
Although EPA's 'hypothetical mine' is sited at the location of the Pebble deposit, BBWA authors continue to refuse to consider the most extensive scientific data set available on the region - environmental baseline data collected by the Pebble Limited Partnership (the "Pebble Partnership" or "PLP") at a cost of some $150 million. The failure to fully consider PLP's environmental data is contrary to EPA's own guidelines for data quality, and is compounded by the fact that BBWA study authors have never set foot on the Pebble Project site.
8:34 am International Game Technology announces a 50% dividend increase to $0.09/share (IGT) :
8:33 am Spectra Energy Partners announces plans to establish a common unit continuous offering program (SEP) : Co announced that it plans to establish a continuous offering program under which the Partnership may issue and sell from time to time through a sales agent up to $200 million of common units representing limited partner interests in the Partnership. The Partnership expects to initiate this program in the second quarter of 2013 and intends to use the net proceeds from the offering to fund capital expenditures and acquisitions.
8:33 am IntercontinentalExchange reports futures volume for May 2013; ADV for futures and options was 3,317,512 contracts, a decrease of 5% from the prior May (ICE) : Co reports futures volume for May 2013. ICE's average daily volume (:ADV) for futures and options was 3,317,512 contracts, a decrease of 5% from the prior May. Total volume in May 2013 was 73 mln contracts.
May 2013 Review
- A daily volume record was established in coal options.
- Monthly volume records were established in heating oil and RBOB gasoline futures.
- Open interest records were established in cocoa futures, gasoil options, Brent Crude futures, WTI options and several coal contracts.
8:32 am S&P futures vs fair value: flat. Nasdaq futures vs fair value: +2.70. (:WRAPX) : The S&P 500 futures trade higher by 0.2%.
The trade deficit widened to $40.3 billion during April after a downwardly revised prior month deficit of $37.1 billion. Economists polled by Briefing.com had expected that the deficit would come in at $41.0 billion.
8:32 am Ryman Hospitality lowers FY13 RevPAR, EBITDA, FFO guidance (RHP) : Co lowers FY13 adj. FFO to $194.5-213 mln from $212-225 mln; lowers EBITDA to 258-279 mln from $281-297 mln and RevPAR to -2% to +1% from +2-5%.
"We were recently informed by our manager, Marriott International that the pace of in-the-year, for-the-year group bookings has slowed for our hotels segment. Coupled with the fact that cost synergies are materializing more slowly than originally anticipated, Marriott has decided to reduce their 2013 operating forecast for our hotel business. As a result, we believe that it is prudent to modify both our revenue and profitability guidance for the year."
During May 2013, the co completed the remainder of its previously authorized $100 million share repurchase program, by repurchasing and cancelling ~1.0 million shares of its common stock for an aggregate purchase price of $44.3 million, which the co funded using cash on hand and borrowings under the revolving credit line of its credit facility.
8:31 am Gleacher & Co announced that Christopher J. Kearns of Capstone Advisory Group has been appointed as Chief Restructuring Officer and Chief Executive Officer; co will exit its Investment Banking business effective immediately (GLCH) :
- Co announced that Christopher J. Kearns of Capstone Advisory Group has been appointed as the Company's Chief Restructuring Officer and Chief Executive Officer. In this capacity, Mr. Kearns will serve as the Company's principal executive officer. Mr. Kearns, age 56, has been an Executive Director and Manager of Capstone, a leading restructuring and transaction advisory firm, since 2004.
- Gleacher also announced that it has retained Capstone to assist the Company with its restructuring process, including evaluating strategic alternatives and providing restructuring advice and assistance.
- In addition, Gleacher announced that it will exit its Investment Banking business effective immediately. Exiting this business will affect approximately 20 investment banking personnel.
- The Company is currently investigating several strategic alternatives in order to preserve and maximize stockholder value, including: continuing the wind-down of the Company's remaining operations and making a distribution of the proceeds to stockholders; continuing to pursue a strategic alternative with a third party, such as a merger or sale of the Company; and reinvesting the Company's liquid assets in favorable opportunities.
8:31 am Market View: Front-month Jun. E-mini index futures trade mixed vs. fair value readings following the 8:30 a.m. ET release of the Apr. Trade Balance figure- ESm3 currently trades 1639.50 +3.25 (:TECHX) :
8:30 am SoundBite Communications: Genesys commences tender offer for all outstanding shares of SoundBite Communications (SDBT) : Genesys announced its intention to acquire SoundBite on Monday, May 20, 2013. Upon the successful closing of the tender offer, stockholders of SoundBite will receive $5.00 in cash for each share of SoundBite common stock validly tendered and not validly withdrawn in the offer, without interest and less any applicable withholding taxes. The tender offer will expire at midnight (New York City Time), at the end of the day on Monday, July 1, 2013 unless extended in accordance with the merger agreement and the applicable rules and regulations of the SEC.
8:27 am On The Wires (:WIRES) :
- Sigma-Aldrich (SIAL) announced that SAFC Commercial, its custom manufacturing services business unit, has won commercial sales and licensing contracts with two Asian biopharmaceutical cos for the purchase of CHOZN, their off-the-shelf cell line production platform.
- La Jolla Pharmaceutical (LJPC) has submitted its investigational new drug application to the FDA Division of Cardiovascular and Renal Products for LJPC-501.
- Valspar (VAL) announced a definitive agreement to acquire Inver Holding S.r.l., an industrial coatings manufacturer in Europe. Financial terms were not disclosed.
- Blackhawk Network (HAWK) and Monitise plc announced an agreement to make mobile gift card purchasing available to consumers through certain banks and financial institutions in the U.S. In addition, the companies intend to expand their relationship into additional markets.
- HomeAway (AWAY) announced the migration of more than 11,000 rural vacation rentals on HomeAway-owned Toprural.com to 23 additional websites in the HomeAway Network of sites including its US sites, HomeAway.com and VRBO.com.
8:23 am On The Wires (:WIRES) :
- Jacobs Engineering Group (JEC) has acquired Compass Technology Services headquartered in Atlanta, Ga. The acquisition of Compass enhances Jacobs' capabilities in wireless telecommunications infrastructure design and construction.
- Provision Interactive Technologies, a subsidiary of Provision Holding (PVHO), announced that they've entered into a multi-year partnership with Rite Aid (RAD) to install their proprietary 3D Reward Centers kiosks inside select Rite Aid stores.
- The nomination committee in Statoil (STO) recommended that the co's corporate assembly elects Catherine Hughes and James J. Mulva as new members of Statoil's board of directors.
- Quintiles (Q) announced that it has received a research award from the Patient-Centered Outcomes Research Institute to compare the effectiveness of treatments for uterine fibroids. The awards are part of PCORI's second cycle of primary research funding totaling $88.6 mln.
- St. Jude Medical (STJ) announced FDA approval to begin the EnligHTN IV Renal Denervation Study, the first U.S. trial using the EnligHTN Multi-Electrode Renal Denervation System to treat patients with drug-resistant high blood pressure.
- UTC Aerospace Systems, a unit of United Technologies (UTX), has been selected by Boeing (BA) to provide landing gear system maintenance services in support of the United States Air Force fleet of the Boeing C-17 Globemaster III aircraft.
- The Callaway Electric Cooperative selected Motorola Solutions' (MSI) MOTOTRBO digital two-way radios to update its fleet of analog radios before the Jan 2013 FCC narrowbanding deadline.
- ManTech International (MANT) was awarded a contract by the Space and Naval Warfare Systems Center Atlantic to provide full lifecycle support for SSC Atlantic customers worldwide. The IDIQ multiple-award contract was awarded to 15 cos and is valued at $899.8 mln with a 1-year base period and four 1-year options.
- Wells Fargo Capital Finance, part of Wells Fargo (WFC), acted as left lead arranger, book manager, and administrative agent on a $1 bln, multi-currency, senior secured revolving credit facility for Novelis.
- Broadcom (BRCM) announced that ZTE selected Broadcom's small cell baseband processor family to integrate into its 3G small cell residential access points.
8:16 am Brigus Gold reports high grade gold results from Grey Fox South Zone (BRD) : Co reports additional high grade drilling results from the Grey Fox South Zone on the Grey Fox property. These drill results will increase the current gold resource and further confirm the potential for both an open pit and underground mine. Three drill rigs actively working on the property will continue to systematically drill the Grey Fox South, 147 and Contact zones throughout the year.
8:10 am Asian Markets Close: Nikkei +2.1%, Hang Seng UNCH, Shanghai -1.2% (:SUMRX) : The major Asian bourses ended mixed with Japan's Nikkei (+2.1%) winning back a portion of yesterday's losses. Overnight, the Reserve Bank of Australia opined, opting to keep its key rate unchanged at 2.75%, as expected. However, traders took note of the Statement, which suggested a tame inflation outlook leaves room for further rate cuts down the road as the strong Aussie dollar weighs on the economy. Data out overnight was light with Australia's trade deficit narrowing to AUD8.51 bln (AUD14.7 bln previous) and Japan's average cash earnings posting a weaker than expected 0.3% YoY (0.6% YoY expected). Looking at the currencies...USDCNY slipped to 6.1284; USDINR fell to 56.44; USDJPY is stronger at 100.20; AUDUSD is weaker near .9670. In Japan, the Nikkei closed +2.1% as traders gobbled up shares ahead of tomorrow's speech by Prime Minister Abe, in which he discusses Part III of Abenomics. Financial and real estate names were strong as Nomura Securities surged 7.6% and Sumitomo Realty & Development jumped 6.4%. Meanwhile, exporters lagged as Honda Motor added 0.8% and Komatsu tacked on 0.1%. Click here to see a daily Nikkei chart.
In Hong Kong, the Hang Seng finished flat as trade swung between gains and losses. A mixed trade among financials saw Bank of China add 0.3% and Agricultural Bank of China slip 0.3%...In China, the Shanghai Composite settled -1.2% as property stocks paced the decline. Gemdale lagged, sliding 2.2%, while China Vanke lost an in-line 1.2%.
In India, the Sensex closed -0.3% as trade slipped to a one-month low. Financials remained under pressure on interest rate cut concerns as State Bank of India shed 2.0%. Elsewhere, automaker Maruti Suzuki shed 1.4% to decline for a third straight day following the announcement of its disappointing May sales.
In Australia, the ASX finished +0.3% after today's Reserve Bank of Australia inaction. Miners led the way as heavyweights BHP Billiton and Rio Tinto added 2.5% and 0.5% respectively, but it was Fortescue pacing the advance with a 6.1% surge. Meanwhile, a mixed trade in financials saw NAB tack on 1.1%.
In Taiwan, the Taiex settled -0.1% Cathay Financial fell 0.8%...In South Korea, the Kospi settled unchanged Hyundai Motor added 0.2%
In other regional markets...Philippines -1.3%...Vietnam -1.2%...Singapore UNCH...Malaysia +0.6%...Indonesia +1.0%...Thailand +1.1%
8:10 am Commtouch Software names Lior Kohavi as CTO (CTCH) : Co announces the appointment of Lior Kohavi as the company's new chief technology officer. For the last eight years, he served as a business strategy architect at Microsoft headquarters where he was part of the company's malware detection team and played a significant role in the development of Microsoft's mobile operating system.
8:09 am Gapping down (:SCANX) : In reaction to disappointing earnings/guidance: DG -5.7%, VRNT -3.6%, SAI -3%.
Select metals/mining stocks trading lower: AG -2.9%, BBL -1.7%, AUY -1.5%, SLV -1.5%, BHP -0.9%, ABX -0.9% (provided update on Pascua-Lama issues).
Other news: RIGL -17.2% (Rigel Pharma and AstraZeneca report topline results from OSKIRA-2 and OSKIRA-3; AZN will not proceed with filings, and return rights to Rigel), AFFY -4.2% (still checking), SLCA -3.7% (announced secondary offering of 10 mln shares of common stock by selling stockholder), HIMX -3.2% (filed for 50.87 mln ADSs, including 25.47 mln by holders), AIXG -2.8% and ARMH -1.9% (still checking), ARRY -2.4% (announces proposed public offering of $100 mln of convertible senior notes due 2020 ), CP -2.2% (Pershing Square disclosed trading plan to sell up to 7 mln shares of CP), CG -2.2% (California Public Employees' Retirement System is offering for sale 11,062,133 common units representing limited partner interests of The Carlyle Group L.P.)
8:06 am Umpqua Holdings announces acquisition of Financial Pacific Holding for $158 mln in cash; expects operating EPS accretion of 14% in the first full year (UMPQ) : Umpqua Holdings Corp announced that Umpqua Holdings and Umpqua Bank have signed a definitive agreement to acquire Financial Pacific Holding Corp. (FinPac) for $158 mln in cash. FinPac is currently majority-owned by an affiliate of Flexpoint Ford, LLC, a Chicago-based private equity firm. FinPac is parent company of Financial Pacific Leasing, LLC, which provides business-essential commercial equipment leases and loans to various industries throughout the United States, and is based in Federal Way, Washington.
FinPac had total assets of $279 mln as of April 30, 2013, with tangible equity of $57 mln expected at close. Upon completion of the acquisition, Financial Pacific Leasing will become a subsidiary of Umpqua Bank, reporting directly to Cort O'Haver, EVP Commercial Banking of Umpqua Bank.
8:05 am FMC Technologies Receives Subsea Equipment Orders for Anadarko's (APC) Heidelberg Field (FTI) : Co announces that it has received orders from Anadarko Petroleum (APC) for subsea equipment for its Heidelberg field. The Heidelberg field is located in the Green Canyon section of the Gulf of Mexico in 5,310 feet of water. FTI's scope of supply includes five enhanced horizontal subsea trees, tree mounted controls, two manifolds and other associated tooling and equipment.
8:05 am AutoNation reports total retail new vehicle unit sales of 26,372 in May 2013 (AN) : Co reports that its total retail new vehicle unit sales in May 2013, as reported to the applicable automotive manufacturers, were 26,372, an increase of 11% as compared to May 2012.
- Same-store retail new vehicle unit sales in May 2013 were 25,566, an increase of 8% as compared to May 2012.
- Total retail new vehicle unit sales for AutoNation's operating segments were as follows:
- 8,287 for Domestic, up 14% versus May 2012
- 13,181 for Import, up 7% versus May 2012
- 4,904 for Premium Luxury, up 17% versus May 2012.
- Additionally, there were 26 selling days in May 2013 and May 2012.
8:03 am Ambit Biosciences presented positive data from the Phase 2 clinical trial of quizartinib (AC220); planning to initiate a Phase 3 clinical trial in early 2014. (AMBI) : Co announced that multiple presentations from the Phase 2 ACE study of quizartinib (AC220), a FLT3 inhibitor, were presented at the Annual Meeting of the American Society of Clinical Oncology.
- Data presented included analyses of the 333 patients with relapsed or refractory acute myeloid leukemia (:AML) from a Phase 2 clinical trial of quizartinib as monotherapy. In the study, quizartinib was administered orally, once-a-day, in 28-day treatment cycles until disease progression, elective hematopoietic stem cell transplantation (:HSCT) or unacceptable toxicity.
- Based on the positive data from the Phase 2 clinical trial, as well as ongoing discussions with the Food and Drug Administration (:FDA), Ambit is planning to initiate a Phase 3 clinical trial in FLT3-ITD positive patients with relapsed or refractory AML in early 2014.
8:02 am Asia Entertainment announces unaudited Rolling Chip Turnover for the month of May 2013 at the co's VIP rooms in Macau was $1.66 bln, up 6% YoY (AERL) : Co, which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, announced unaudited Rolling Chip Turnover for the month of May 2013 at the company's VIP rooms in Macau was US$1.66 bln, up 6% YoY, compared to US$1.56 bln for the month of May 2012. This compares with a YoY increase in overall gross gaming revenue for Macau of 13% for May 2013. Win rate for the month of May 2013 was 3.52%.
For the first five months of 2013, AERL's Rolling Chip Turnover was US$7.21 bln (an average of $1.44 bln per month), down 17% year-over-year, compared to US$8.70 bln (an average of $1.74 bln per month) for the first five months of 2012. Macau gross gaming revenue increased 14% for the first five months of 2013.
Rolling Chip Turnover for May 2013 of US$1.66 bln improved 19% compared to the $1.39 bln per month average for the first four months of 2013, and improved 24% compared to the US$1.34 mln per month average for the fourth quarter of 2012.
The increase in Rolling Chip Turnover was attributable to an improving VIP gaming market.
8:02 am AMD Announces Extension of Exchange Offer for Its 7.50% Senior Notes Due 2022 for Registered Notes (AMD) : Co announced that its pending offer to exchange any and all of its outstanding 7.50% Senior Notes due 2022, which were issued in a private placement for an equal principal amount of new 7.50% Senior Notes due 2022. Tenders with respect to approximately $499,615,000 aggregate principal amount of the Private Notes, out of a total of $500,000,000 aggregate principal amount eligible to participate in the exchange offer, have been received to date.
8:01 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: GIII +6.7%, MCHP +4.5%, ABM +3.3%.
M&A news: ET +52.7% (ExactTarget acquired by CRM for $33.75/share in cash), HSII +2% (Heidrick & Struggles confirms that it has been approached on a preliminary basis regarding a possible sale of the Company).
Select Japan related names trading higher: MFG +7.8%, NMR +6.4%, SNE +3.9%, TM +1.7%.
Other news: CYTK +10.2% (announces publications in peer-reviews relating to fast skeletal troponin activation in Nemaline Myopathy), RSOL +7.1% (extending afternoon gains, confirmed yesterday before the open it completed $9.25 million private placement of equity securities), STM +4.6% (being attributed to executive comments on order growth), SODA +4.1% (still checking), GM +3.1% (GM to replace HNZ in the S&P 100 and 500), BMRN +2% (continues to recover yesterday's lows in recent trade following upgrade intraday at Deutsche Bank), NCT +2% ( announces sale of CDO IV assets; to record a GAAP gain on sale of ~$5 mln in Q2), DB +1.9% (still checking), HII +1% (awarded $3.33 bln U.S. Navy contract to build five DDG 51 Destroyers), AIG +0% (AIG to replace BHI in the S&P 100).
8:01 am Office Depot announces sale of joint venture stake in Office Depot De Mexico to Grupo Gigante for ~$690 mln (ODP) : Co announced that it has reached a definitive agreement to sell its 50% stake in Latin American Joint Venture Office Depot de Mexico S.A. de C.V. to Grupo Gigante, S.A.B. de C.V. (GIGANTE.MX) for MXN8,777.36 mln in cash. The deal is conditional on receiving Mexican regulatory approval and Grupo Gigante S.A.B. de C.V. shareholder approval which Office Depot believes will be secured within 30 days. After the transaction closes, Grupo Gigante, S.A.B. de C.V. and its affiliates will have 100% ownership of Office Depot de Mexico. In accordance with the terms of its planned merger agreement with OfficeMax, announced on February 20, 2013, Office Depot obtained the required consent from OfficeMax to proceed with the sale.
8:00 am S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: -1.80. (:WRAPX) : U.S. equity futures are little changed amid generally positive overseas action.
Looking at overnight developments:
- Asian markets ended mixed. China's Shanghai Composite lost 1.2% while Japan's Nikkei gained 2.1%, and Hong Kong's Hang Seng ended flat.
- Investors received a handful of economic reports:
- Japan's monetary base expanded 31.6% year-over-year (24.3% consensus, 23.1% prior) while average cash earnings rose 0.3% year-over-year (0.6% expected, -0.9% prior).
- The Reserve Bank of Australia left its key interest rate unchanged at 2.75%, as expected. In addition, the country reported a current account deficit of AUD8.5 billion (AUD9.0 billion expected, AUD14.8 billion prior).
- In news:
- Although the Australian central bank did not make any changes to its key interest rate, the accompanying policy statement left the door open for additional easing, especially in light of declining export prices.
- Japan's Finance Minister Taro Aso said achieving the 2.0% inflation target is not an easy task. Mr. Aso declined to comment on volatility in equity markets or foreign exchange rates.
- Investors received a handful of economic reports:
- European markets are generally higher, but most indices have declined from their best levels of the day. The United Kingdom's FTSE trades with a gain of 0.7%, while France's CAC and Germany's DAX add 0.3% each.
- Regional economic data was limited:
- Eurozone PPI declined 0.6% month-over-month (-0.3% forecast, -0.2% prior).
- The United Kingdom's BRC Retail Sales Monitor increased 1.8% year-over-year (1.2% expected, -2.2% prior). In addition, construction PMI rose to 50.8 from 49.4 (49.6 forecast).
- Spain reported a better-than-feared decline in unemployment of 98,300 (50,200 expected, 46,100 prior).
- In news:
- Reports indicate the European Commission will propose a single bank oversight mechanism, which would be funded through contributions from banks.
- Regional economic data was limited:
- Dollar General (DG 50.61, -2.94) is off by 5.5% after the retailer's in-line earnings were overshadowed by below-consensus full-year earnings guidance.
- ExactTarget (ET 33.75, +11.65) trades higher by 52.7% after Salesforce.com (CRM 39.93, -1.11) acquired the company for $33.75 per share. The total transaction is valued at roughtly $2.5 billion and the purchase price represents a 53.0% premium to ExactTarget's Monday closing price.
7:57 am HJ Heinz extends expiration date of change of control offers to purchase certain series of H.J. Heinz's outstanding notes (HNZ) : Co announced that it is extending the expiration date of its change of control offers to purchase any and all of its outstanding 2.000% Notes due 2016, 1.500% Notes due 2017, 3.125% Notes due 2021 and 2.850% Notes due 2022 for cash equal to 101% of the principal amount until 5:00 p.m., New York City time, on June 5, 2013. As of June 3, 2013, ~ the following aggregate principal amounts of Notes had been tendered in the respective Change of Control Offers: $241,682,000 aggregate principal amount of 2.000% Notes due 2016, $282,258,000 aggregate principal amount of 1.500% Notes due 2017, $365,567,000 aggregate principal amount of 3.125% Notes due 2021 and $294,201,000 aggregate principal amount of 2.850% Notes due 2022. Heinz also announced the termination of its change of control offer to purchase any and all of its outstanding 6.049% Dealer Remarketable Securities (the "Drs.") for cash equal to 115.509% of the principal amount of the Drs, as it has separately agreed to repurchase all such outstanding securities from the holder thereof.
7:45 am On The Wires (:WIRES) :
- Gilat Satellite Networks (GILT) was selected by a Southeast Asian telecommunication operator to provide satellite-based broadband Internet connectivity to around 2,500 schools nationwide.
- ANSYS (ANSS) and subsidiary Apache Design announced that their RedHawk and Totem products have achieved version 0.1 of design reference manual and SPICE model tool certification for TSMC 16-nanometer FinFET technology.
- Ambow Education Holding (AMBO) announced that Dr. Ping Wu and Mr. Winston Sim have been appointed as independent directors of the co, and Mr. Winston Sim has also been appointed as a member of the audit committee of the co.
- Zalicus (ZLCS) announced that it is advancing Z944, its novel oral T-type calcium channel blocker, into further clinical development in the third quarter of 2013. Results from the LEP study can further inform co's development plans for Z944 in a variety of potential indications.
- Foster Wheeler AG (FWLT) has acquired NorthAm Engineering S.A. DE CV, a privately held engineering company located in Monterrey, Mexico.
- PROLOR Biotech (PBTH) announced the initiation of a pivotal Phase III clinical trial of hGH-CTP, the co's proprietary version of human growth hormone in growth hormone deficient adults.
- Alliance Data Systems (ADS) announced its Retail Services business has signed a multi-year agreement to provide private label credit card services for multichannel furniture retailer El Dorado Furniture.
- Gentherm (THRM) announced that Caspar Baumhauer, CEO of its subsidiary, W.E.T. Automotive Systems AG, has resigned to pursue other opportunities.
7:33 am CAS Medical receives FDA clearance for next-generation vital signs monitor and blood pressure solution (CASM) : Co announces receipt of FDA 510(k) clearance for its next-generation 740 SELECTTM vital signs monitor and its MAX IQ non-invasive blood pressure technology. The Co expects to begin fulfilling orders for these products during the third quarter of 2013.
7:31 am Mellanox Tech announces definitive agreement to acquire IPtronics A/S for ~ $47.5 mln; expects the transaction to be accretive to its full fiscal year 2014 earnings by ~ $0.01 to $0.03 per share on a non-GAAP basis (MLNX) : Co announced its intent to acquire privately held IPtronics A/S, a leader in optical interconnect component design for digital communications. Mellanox and IPtronics have signed a definitive agreement under which Mellanox will acquire IPtronics at a total cash purchase price of approximately $47.5 million. The terms of the transaction have been unanimously approved by both the Mellanox and IPtronics Boards of Directors.
The transaction is currently projected to close in the second half of 2013. Mellanox currently expects the transaction to be accretive to its full fiscal year 2014 earnings by approximately $0.01 to $0.03 per share on a non-GAAP basis. IPtronics products are embedded in Mellanox's current solutions.
7:31 am Dominion announces pricing of 10 mln 2013 Series A equity units and 10 mln 2013 Series B equity units (D) : Co announced that it has priced its offerings of 10 million 2013 Series A equity units and 10 million 2013 Series B equity units. Each 2013 Series A equity unit will be issued in a stated amount of $50 ($500 million aggregate stated amount) and will consist of a contract to purchase common stock in the future and a 1/20 undivided beneficial ownership interest in Dominion's 2013 Series A 1.07% remarketable subordinated notes due 2021 having a principal amount of $1,000.
Each 2013 Series B equity unit will be issued in a stated amount of $50 ($500 million aggregate stated amount) and will consist of a contract to purchase common stock in the future and a 1/20 undivided beneficial ownership interest in Dominion's 2013 Series B 1.18% remarketable subordinated notes due 2019 having a principal amount of $1,000.
The offerings are expected to close on June 7, 2013. Total annual distribution on the 2013 Series A equity units will be at the rate of 6.125 percent, consisting of interest on the 2013 Series A remarketable subordinated notes at a rate of 1.07 percent and payments under the related stock purchase contracts at a rate of 5.055 percent. The reference price for the 2013 Series A equity units is $55.55 per share. The threshold appreciation price for the 2013 Series A equity units is $65.2742 per share, which represents a premium of approximately 17.5 percent over the reference price. Under the purchase contract, holders are required to purchase a variable number of shares of Dominion common stock no later than April 1, 2016.
7:31 am Cytokinetics announces publications in peer-reviews relating to fast skeletal troponin activation in Nemaline Myopathy (CYTK) : Co announced the publication of three peer-reviewed manuscripts co-authored by company scientists with a group led by Dr. Henk Granzier, Professor of Physiology, and Norville Endowed Chair, Molecular Cardiovascular Research Program, University of Arizona. These publications relate to translational research conducted by Dr. Granzier's laboratory in collaboration with Cytokinetics in which the mechanistic effects of fast skeletal troponin activation were explored in nemaline myopathy, a rare sarcomere-based disease.
The preclinical studies described in these publications provide support for the hypothesis that CK- 2066260, a fast skeletal troponin activator, may compensate in part for the defect in sarcomere calcium sensitivity found in muscle derived both from mouse models of nemaline myopathy as well as human muscle from patients with nemaline myopathy. These findings suggest that fast skeletal troponin activators may offer a promising therapeutic approach to improving muscle function in nemaline myopathy and other inherited conditions in which the calcium sensitivity of the sarcomere is abnormal.
7:31 am CME Group volume averaged 14.7 million contracts per day in May 2013, up 11% from May 2012, marking highest month since August 2011 (CME) : CME announced that May 2013 volume averaged 14.7 million contracts per day, up 11% compared with May 2012, and up 27 percent sequentially. Total volume for May 2013 was more than 324 million contracts, of which 88 percent was traded electronically.
- All-time daily volume record of 26.9 million contracts traded on May 29
- Record monthly Treasury futures and options volume up 42 percent
- Monthly average daily volume records achieved for futures and options on 30-year Treasury Bonds, 10-year Treasury Notes and 5-year Treasury Notes
- Interest rate volume up 31 percent
7:31 am Morgans Hotel Group Slate Of Director Nominees announces its intention to explore full range of strategic alternatives (:HALTED) (MHGC) : Co announced that its slate of director nominees intends to initiate a process to explore strategic alternatives, including a sale of the co, upon re-election at the co's Annual Meeting of Stockholders on June 14, 2013. The announcement was made in response to feedback from the co's stockholders and the recent receipt of unsolicited expressions of interest to acquire the co from five potential strategic buyers.
7:30 am ExactTarget acquired by salesforce.com (CRM) for $33.75/share in cash (53% premium) (ET) : CRM will acquire ExactTarget in a transaction valued at ~$2.5 billion. Under the terms of the agreement, salesforce.com will commence a tender offer for all outstanding shares of ExactTarget for $33.75 per share, in cash. The transaction has been unanimously approved by the Boards of Directors of both companies. The combination of ExactTarget and salesforce.com will increase the value proposition that customers of both companies will receive. ExactTarget's large and vibrant customer base-including many of the world's largest consumer brands-will have access to new world-class social marketing capabilities, and will be able to leverage salesforce.com's leading sales, service and platform solutions to transform their end-to-end customer experience.
Impact on guidance for CRM: The acquisition is expected to increase FY14 total revenue by $120 to $125 million. This estimate reflects an ~$65 to $70 million reduction relating to fair value adjustments to billed deferred revenue and unbilled backlog, adjustments related to the combined customer base, and inter-company revenue elimination.
FY14 non-GAAP EPS: The acquisition is expected to reduce non-GAAP EPS by ~$0.16. This estimate reflects reduced revenue expectations as described above, and standard integration costs and transaction fees expected to be in the range of $40 to $45 million.
2Q14 non-GAAP EPS: The acquisition is expected to reduce fiscal second quarter non-GAAP EPS by ~$0.05. This estimate reflects reduced revenue expectations as described above, the co's operating results for Q2 and standard integration costs.
To reflect the acquisition, co lowers FY14 EPS to $0.31-0.33 from $0.47-0.49; raises FY14 rev to $3.955-4.00 bln from $3.835-3.875 bln. Co lowers Q2 EPS guidance to $0.06-0.07 from $0.11-0.12.
7:28 am Dollar Holds Slim Gains: 10-yr: -04/32..2.128%..USD/JPY: 100.10..EUR/USD: 1.3084 (:SUMRX) : The Dollar Index holds slim gains after recent selling dropped it down to the 82.70 region. Overnight, the Index climbed as high as 82.90, holding intraday support near 82.75 for most of the session before the level recently gave way. Minor near-term support rests in the 82.40 region.
- EURUSD is +25 pips at 1.3095 as trade holds just off the best levels of the morning. Today's bid was fueled by a better than expected Spanish unemployment change (-98.3K actual v. -50.2K expected), which should have been no surprise as it was suggested by Spanish Prime Minister Mariano Rajoy just yesterday. Today's bid has the single currency threatening its 100-day moving average, with a move through the level resulting in a test of the April/May highs near 1.3200.
- GBPUSD is -15 pips at 1.5300 as trade has slipped despite the strong Construction PMI data (50.8 actual v. 49.7 expected, 49.4 previous). Today's range has been bookended by the 50- and 100-day moving averages.
- USDCHF is -10 pips at .9460 with action holding on session lows. Early buying ran the pair back above the .9500 level, but sellers managed to gain control and have pushed action below the 50-day moving average (.9470). The .9350/.9400 area will be under careful scrutiny as support is helped by both the 100- and 200-day moving averages.
- USDJPY is +40 pips at 99.85 as traders await tomorrow's speech by Prime Minister Shinzo Abe, in which he will lay out Part III of Abenomics. Trade continues to hold support near 99.00 that is helped by the 50-day moving average. Overnight, Japan's average cash earnings were released, posting a weaker than expected 0.3% YoY (0.6% YoY expected).
- AUDUSD is -85 pips at .9680 after today's Reserve Bank of Australia interest rate decision went as expected with the central bank keeping its key rate at 2.75%. Traders seemed to focus on the Statement, which continued to suggest tame inflation should continue to leave room for further interest rate cuts down the road as the strong Aussie dollar weighs on the Australian economy. While trades sold the hard currency on the news, the central bank has made similar comments before so nothing was unexpected. Action continues to test key support in the .9600 region. Australia's current account balance was released overnight, with the deficit narrowing to AUD8.51 bln (AUD14.7 bln previous). USDCNY fell to 6.1284. Click here to see a 5 minute AUDUSD chart.
- USDCAD is +35 pips at 1.0315 after holding the 1.0280 support level. Canada's trade balance will be released later this morning.
7:17 am On The Wires (:WIRES) :
- IBM (IBM) announced that it will help eight municipal governments in Poland improve citizen services with the assistance of cloud-based virtual agents developed by InteliWISE, an IBM business partner.
- Zimmer Holdings (ZMH) has acquired Tuttlingen, Germany-based NORMED Medizin-Technik GmbH, a provider of technologies for the foot and ankle, hand and wrist reconstruction and trauma markets.
- DISH Network (DISH) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in connection with the proposed acquisition by DISH of Sprint Nextel (S). The waiting period expired Monday, June 3, 2013.
- Verizon (VZ) announced an agreement to install Bloom Energy fuel cell systems at three of its California-based locations: two call-switching centers in Los Angeles and San Francisco and a data center in San Jose.
- JinkoSolar Holding (JKS) announced that its modules have received fire resistance certification from Italy's Istituto Giordano.
- NICE Systems (NICE) announced that Agero has selected NICE Real-Time Service Optimization to provide an advanced level of customer response to complicated customer interactions often involving mobile emergencies.
- Savvis, a CenturyLink (CTL) co expanded availability of its Cloud Application Database service to Asia.
- Red Lion Hotels (RLH) announced a new franchise agreement for the Leo Hotel Collection with the owners of The Riverside Hotel in Boise. The hotel will add 300 rooms to the Leo Hotel Collection when it converts in mid-summer.
- FAB Universal (FU) announced record sales of new membership cards for the co's FAB Intelligent Media Kiosk. Co sold 75,000 new membership cards in the last 30 days.
7:10 am Dollar General reports EPS in-line, revs in-line; lowers high end of FY14 guidance (DG) : Reports Q1 (Apr) earnings of $0.71 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.71; revenues rose 8.5% year/year to $4.23 bln vs the $4.24 bln consensus. Same-store sales increased 2.6 percent resulting from increases in both customer traffic and average transaction amount. Total sales increases in consumables significantly outpaced increases in the Company's non-consumable categories, reflecting the impact of continued financial pressures on consumers as well as unfavorable weather conditions in many of the Company's geographic regions. Gross profit, as a percentage of sales, was 30.6 percent in the 2013 first quarter, a decrease of 89 basis points from the 2012 first quarter. The gross profit rate was negatively affected by several factors including higher markdowns, a higher mix of consumables, which generally have lower gross profit rates, increased inventory shrinkage, and lower initial markups. These factors were partially offset by improved transportation efficiencies and other logistics initiatives, in addition to modestly lower fuel rates.
Co issues guidance for FY14, lowers EPS to $3.15-3.22, excluding non-recurring items, from $3.15-3.30 vs. $3.28 Capital IQ Consensus; lowers FY14 rev to +10-11% to ~$17.62-17.78 bln (from +10-12%) vs. $17.6 bln Capital IQ Consensus; lowers comp guidance to +4-5% from +4-6%.
In Q1, the co repurchased $20 million, or 0.4 million shares, under its share repurchase program. Since the inception of the program in December 2011, the Company has repurchased 19.7 million shares totaling $876 million. Authorizations for an additional $624 million of share repurchases remain available under the Company's share repurchase program.
"For the quarter, we achieved same-store sales growth of 2.6 percent reflecting strong growth in our consumables categories offset by softer sales in seasonal and weather-sensitive categories. Solid SG&A leverage helped to offset gross margin declines in the first quarter. We believe the continued strength in consumables is a sign of the underlying health of our business. We have updated our outlook for the year to reflect moderating sales growth and a lower expected gross profit rate than we previously anticipated. We are well positioned for our same-store sales growth to accelerate to four to five percent for the year as our key initiatives, such as the rollout of tobacco and Phase 5 planogram changes, continue to gain traction through the year. Sales of non-consumables are expected to remain challenging, and we anticipate a continued shift to lower margin items within consumables and higher inventory shrink. We believe that our customers' dependence on our everyday low pricing and convenient locations has never been greater."
7:02 am Novavax makes public tender offer to acquire all outstanding shares and warrants of Sweden-based Isconova AB; total transaction valued at ~ $29.6 mln (NVAX) : Co announced that it has made a public tender offer to acquire all outstanding shares and warrants of Sweden-based Isconova AB directly from such holders and intends to make a private offer for all outstanding stock options. The total transaction is valued at ~ $29.6 mln based on the June 3, 2013 closing stock price of Novavax's common stock. The offer has been recommended by Isconova AB's board of directors in a press release that was issued earlier this morning. Novavax will acquire all outstanding Isconova AB shares for ~ 15.5 million shares of Novavax common stock, corresponding to an offer value of SEK 15.46 for each Isconova share. In addition, Novavax has offered to cash out all outstanding 2005-I warrants and 2005-II warrants for SEK 140,277, based on a "Black-Scholes" valuation. Pursuant to the private offer for stock options, Novavax intends to issue 218,120 shares of Novavax common stock, corresponding to a value of SEK 8.30 for each option share.
- Under the terms of the agreement, GSK gained certain rights to Response Genetics' proprietary PCR analysis technology and diagnostic expertise to assess BRAF gene mutations in human tumor samples.
- Response Genetics earned its first milestone payment of $500,000 in July of 2012 for submission of the first Premarket Approval ("PMA") under the contract.
- On May 29, 2013, GSK announced the FDA's approval of the PMA, thereby triggering the second milestone payment of $500,000.
7:00 am Bruker and 3M (MMM) sign exclusive patent license agreement (BRKR) : Bruker announces that it has signed an exclusive patent license agreement with 3M, which allows Bruker to include 3M patented innovations relating to matrix-assisted laser desorption ionization mass spectrometry imaging.
The licensed 3M patents are directed to a technique for performing mass spectrometry analysis on proteins in tissue that has been preserved in paraffin. The technology enables researchers to more easily study formalin-fixed, paraffin-embedded tissue for life-science research and drug development.
6:49 am On The Wires (:WIRES) :
- Trimble (TRMB) has acquired privately-held Trade Service based in San Diego, California from the GF Capital Private Equity Fund and senior mgmt. Financial terms were not disclosed.
- MTR Gaming Group (MNTG) announced the remittance of the second and final payment for its operating license to the Ohio Lottery Commission for its Scioto Downs Racino in the amount of $25 mln.
- CEMEX, S.A.B. de C.V. (CX) announced that it expects to invest ~ $100 mln to significantly improve its operations in Egypt and continue supporting the country's housing, commercial and infrastructure development.
- Descartes Systems Group (DSGX) announced that WAXIE Sanitary Supply has selected Descartes' cloud-based solution for route planning, dispatch, tracking and mobile proof of delivery to enhance its delivery operations.
- China Yuchai International (CYD) announced that its main operating subsidiary, Guangxi Yuchai Machinery, and GYMCL's JV co, Y&C Engine, has entered into a Framework Agreement with Baotou Bei Ben Heavy Duty Truck and Inner Mongolia First Machinery Group to form a new JV company to be located in Baotou, Inner Mongolia. The JV co will have a registered capital of RMB 600 mln.
6:47 am American Realty Capital Announces $900 mln Private Placement of Common Stock and Convertible Preferred Stock (ARCP) : Co announced it has entered into definitive purchase agreements pursuant to which it agreed to sell ~ 29.4 mln shares of common stock at a price of $15.47 per share for gross proceeds of $455 mln, and ~ 28.4 mln shares of 5.81% convertible preferred stock with an aggregate liquidation preference of $445 mln, in separate private placement transactions. Net proceeds from the Placement of ~ $898 mln will be used to fully fund working capital needs and recently announced strategic acquisitions, including a $807 mln property portfolio being acquired from GE Capital (GE) and the $2.2 billion acquisition of CapLease (LSE).
6:44 am DSP Group: ISS, Glass Lewis and Egan Jones all recommend DSP Group stockholders vote the gold proxy card in support of co's slate of directors (DSPG) : Co released the following letter to its stockholders: "We are pleased to inform you that with yesterday's announcement from Egan Jones Proxy Services that it is supporting the Company's slate of nominees, ALL three of the independent proxy advisory services - ISS, Glass Lewis and Egan Jones Proxy Services - have now recommended that stockholders vote the Company's GOLD proxy card... They were not swayed by Starboard's false accusations, misrepresentations and attempts at misdirection, and neither should you be swayed. They based their analyses on the facts. The facts are that Starboard didn't present a plan to grow the Company; their nominees lack the experience and expertise required to successfully compete in our markets and Starboard already has adequate representation on the Board."
6:43 am American Woodmark beats by $0.16, beats on revs (AMWD) : Reports Q4 (Apr) earnings of $0.34 per share, excluding non-recurring items, $0.16 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 25.6% year/year to $171.1 mln vs the $158.63 mln consensus. Q4 results were exclusive of an insurance recovery and restructuring charges that combined to increase net income by less than $0.1 mln and by less than $0.01 per diluted share.
- Gross profit for the fourth quarter of fiscal year 2013 was 18.9% of net sales, compared with 12.7% in the prior year's fourth quarter.
- Gross profit for the entire fiscal year 2013 was 16.3% of net sales, compared with 12.9% in the prior fiscal year.
- Gross profit was favorably impacted by reductions in labor and overhead costs associated with the co's previous restructuring actions, by the beneficial impact of higher sales volume and the absence of the prior year's inventory write-down.
- This favorability was partially offset by the impact of rising materials costs.
6:38 am QIWI beats by $0.35, beats on revs (QIWI) : Reports Q1 (Mar) earnings of RUB7.02 per share, RUB0.35 better than the Capital IQ Consensus Estimate of $6.67; revenues rose 49.8% year/year to RUB1.28 bln vs the RUB1.2 bln consensus.
- The number of active Visa QIWI wallet accounts as of March 31, 2013 was ~13.0 mln (on a rolling 12 months basis), representing an increase of 49% over 8.7 mln as of March 31, 2012.
- Visa QIWI Wallet payment volume increased by 107% to RUB 53.7 bln ($1.73 bln), and average net revenue yield increased by 3bps to 0.94% over the prior year period.
- Adjusted Net Revenue for 2013 is expected to increase from 23-26% over 2012.
- Adjusted Net Profit for 2013 is expected to increase 27-33% over 2012.
6:32 am InVivo Therapeutics raises $16.1 mln from warrant call and exercises paving way for up-listing to a national securities exchange (NVIV) : Co announced that the call notice period for the early exercise of warrants issued to investors on Oct 26, 2010, Nov 10, 2010 and Dec 3, 2010 expired on June 3, 2013. By the expiration of the call period, 100% of the Investor Warrants were exercised. The exercises during the call period, coupled with warrant exercises during April 2013, raised $16.1 mln gross and $15.6 mln after solicitation expenses. ~ 11.5 mln shares of common stock were issued in connection with these warrant exercises. The combination of the exercise of all the Investor Warrants along with the warrant exchange offer completed on May 17, 2013 for placement agent and other eligible warrants resulted in the complete reversal and elimination of the $24.6 mln warrant liability recorded on InVivo's books as of March 31, 2013. As of June 3, 2013, the co had cash on hand of $23.6 mln and total stockholders' equity of $23.7 mln, which exceeds the minimum stockholder's equity requirements for national securities exchanges.
6:31 am Unwired Planet announces a streamlined management structure that includes a president role to be filled by Eric Vetter and creation of an executive committee (UPIP) : Co announced a streamlined management structure that includes: a president role to be filled by Eric Vetter, and the creation of an executive committee, which will be chaired by a new board member to be named later. With this new structure in place, the chief executive officer position will be eliminated.
Eric Vetter, chief financial officer of Unwired Planet, will be promoted to president and will also continue in his capacity as chief administrative officer and chief financial officer. As previously announced, Mike Mulica, former chief executive officer of Unwired Planet, will continue to serve on the Unwired Planet Board and will chair the newly formed Unwired Planet Technology Advisory Committee. The company intends to name a new board member who will serve as chairman of the executive committee in the near future.
6:28 am S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -1.00. :
6:28 am European Markets : FTSE...6568.82...+43.70...+0.70%. DAX...8326.21...+40.00...+0.50%.
6:28 am Asian Markets : Nikkei...13533.76...+271.90...+2.10%. Hang Seng...22285.52...+3.30...0.00.
6:27 am Sonic Foundry announces renewed line of credit and common stock repurchase program (SOFO) : Co announced that the company has renewed its line of credit with Silicon Valley Bank. Further, the company announced a stock repurchase program which enables the company to purchase up to $1 million in common stock. The new agreement with Silicon Valley Bank maintains a maximum availability of $3 million and extends the maturity of the existing line of credit by two years to October 1, 2015. It bears interest at Prime Rate plus .75%, currently 4%. The company also announced that its board of directors has authorized the company to repurchase up to $1 million of its common stock. U
6:22 am On The Wires (:WIRES) :
- Canadian Solar (CSIQ) has opened a sales and business development office in Sao Paulo, Brazil to expand and strengthen the company's South American sales network and broaden regional customer service capabilities.
- Points (PCOM) has partnered with Southwest Airlines (LUV) to bring more services to members of the airline's loyalty program, Rapid Rewards.
- Acacia Research (ACTG) announced that Jaime Siegel has joined Acacia Research Group as Senior Vice President. Mr. Siegel was most recently Vice President, Senior IP Counsel of Sony Corp. of America (SNE) and its Representative to Taiwan
6:18 am Ensign Group acquires California and Utah assisted living facilities; both to be mildly accretive to earnings in 2013 (ENSG) : Co announced that it acquired Santa Maria Terrace, a 110-unit assisted living facility in Santa Maria, California. Bridgestone expects operations in Santa Maria Terrace, which had an occupancy rate of approximately 51% at acquisition, to be mildly accretive to earnings in 2013. In a separate transaction on the same day, an Ensign subsidiary also acquired Lake Ridge Senior Living, a 69-unit assisted living facility in Orem, Utah, which will be operated by a subsidiary of Bridgestone. Bridgestone expects operations in the property, which had an occupancy rate of approximately 72% at acquisition, to be mildly accretive to earnings in 2013.
6:13 am Endo Health: First head-to-head study shows Greenlight XPS laser therapy equally safe and effective with faster recovery as commonly used TURP for treatment of BPH (ENDP) : Data presented at the American Urological Association (:AUA) Annual Meeting demonstrate that treatment for Benign Prostatic Hyperplasia (:BPH) with Endo Health's GreenLight XPS laser therapy with MoXy fiber, instead of transurethral resection of the prostate (:TURP), results in significantly shorter hospitalization, catheterization, and recovery times for patients, while maintaining equivalent safety and efficacy. Key trial findings include:
- Equivalency in safety, as evidenced by the number and rate of adverse events, and efficacy, as determined by IPSS (International Prostate Symptom Score) and Qmax (peak urinary flow rate)
- Superiority of GreenLight XPS in recovery times including shorter catheterization times, shorter hospital stay, and a faster return to a stable health status
- Significantly lower rate of short-term re-intervention with GreenLight XPS
- Numerically fewer bleeding and dysuric events with GreenLight XPS? than TURP
- Comparable prostate tissue volume and PSA (prostate specific antigen) reduction
6:11 am Accelerate Diagnostics files Form S-3 to raise $20 mln to fund business plan and product commercialization efforts (AXDX) :
6:07 am The Medicines Co signs agreement to acquire Profibrix; co will pay Profibrix a $10 mln upfront option payment (MDCO) : Co and ProFibrix announced an agreement for The Medicines Company to purchase all of the outstanding capital stock of ProFibrix B.V. subject to MDCO's satisfactory review of the pending Phase 3 clinical trial results of ProFibrix's lead biologic, Fibrocaps. The co will pay ProFibrix a $10 million upfront option payment. If the Medicines Company is satisfied with the trial results of FINISH-3 and determines to proceed, it will purchase all of the outstanding capital stock of ProFibrix at closing. Otherwise, The Medicines Company may terminate the transaction with no further obligation to the ProFibrix shareholders. ProFibrix shareholders could receive additional payments related to achieving US and European regulatory approvals and sales milestones. The transaction is subject to the satisfaction of customary closing conditions.
6:02 am Synergy Resources announces increase in borrowing base to $75 mln (SYRG) : Co announced that its reserve borrowing base has increased from $47 million to $75 million under the terms of the $150 million credit facility led by Community Banks of Colorado. The credit facility matures November 2016 and has a current interest rate of approximately 3.45%.
"Operationally, we are finishing drilling the first of five horizontal wells on the Renfroe pad and we will begin drilling the second well later this week. As we are completing the Renfroe wells late this July or early August, we will be moving Ensign Rig #17 to a nearby lease and begin drilling 5 or 6 horizontal wells from that pad. We intend to drill horizontal wells throughout fiscal 2014 and we expect that this drilling program will result in significant production growth... We anticipate our production will increase by ~ 7-10% sequentially in our fiscal 2013 third and fourth quarters which is slower than our historical rate of nearly twenty percent sequential growth per quarter. However, as we enter fiscal 2014, we believe that we will have completed and brought into production our five operated horizontal Renfroe wells which will begin a phase of rapid production growth that we believe will soon exceed all of our past results on a BOE basis."
6:01 am Gentium files documentation requesting a Re-examination of the negative opinion given by the EMA's CHMP regarding the MAA for Defibrotide to treat and prevent hepatic veno-occlusive disease in adults and children undergoing hematopoietic stem cell transplantation therapy (GENT) : co announced that it has filed the documentation requesting a Re-examination of the negative opinion given by the European Medicines Agency's Committee for Medicinal Products for Human Use regarding the Marketing Authorisation for Defibrotide to treat and prevent hepatic veno-occlusive disease in adults and children undergoing hematopoietic stem cell transplantation therapy. In accordance with European regulations, the CHMP has 60 days to consider a revision of the initial opinion and consequently a final recommendation may be made by the end of July.
5:35 am Liberty Global announces Dana Strong appointed to Chief Operating Officer of Virgin Media, following closing of the acquisition (LBTYA) : Liberty Global (LBTYA, LBTYB, LBTYK) announces that effective July 1, 2013, Dana Strong will become the Chief Operating Officer of Virgin Media (VMED) following the closing of that acquisition. She will succeed Andrew Barron who has decided to leave the company post closing to pursue new opportunities. Strong is currently Managing Director of UPC Ireland.
5:28 am On The Wires (:WIRES) :
- Aegon announced an exclusive 25-year strategic partnership with Banco Santander (SAN). Under the terms of the agreement, Aegon has acquired a 51% stake in both a life insurance co as well as in a non-life insurance company for a consideration of EUR 220 mln. The joint ventures will distribute life and general insurance products through Banco Santander's extensive branch network. Aegon Spain will provide the back-office services to the joint venture companies.
- LifeVantage (LFVN) announced that it has expanded its direct selling business into Canada.
- CastleLine Holdings announced that it has entered into a strategic relationship with, a subsidiary of Arthur J. Gallagher (AJG), designed to provide a comprehensive suite of innovative products and services to clients involved in the origination, underwriting, and purchase of residential mortgages.
- MSCI Inc (MSCI) announced that it is introducing the MSCI China A High Dividend Yield Index.
- Mindspeed Technologies (MSPD) and Lionic announced that the fully integrated Deep Packet Inspection engine in Mindspeeds Comcerto 2000 communication processor family now supports Lionic's leading edge antivirus software.
- DataSift is announcing a partnership with Tableau Software (DATA). By integrating with Tableau, customers can now integrate social data from outside the enterprise together with business data from internal applications to enable insights for every role and level of the business.
4:14 am On The Wires (:WIRES) :
- American International Group (AIG) announced that it has received notice from the U.S. Treasury that the Financial Stability Oversight Council has made a proposed determination that AIG is a systemically important financial institution pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- Qualcomm (QCOM) today announced that its wholly-owned subsidiary, Qualcomm Technologies, has expanded its Qualcomm Snapdragon 800 processors portfolio to include support for Microsoft (MSFT) Windows RT 8.1.
- Samson Oil & Gas (SSN) advised that the first well to be drilled in the South Prairie Project, the Matson #3-1 well (located in Ward County, ND), is anticipated to spud on schedule.
- Cavium (CAVM) announced that G-cluster's wireless Cloud Game Machine, scheduled to be released on June 20th, is based on Cavium's PureVu CNW6611L media SoC offering superior wireless video and gaming connectivity.
- ARRIS Group (ARRS) has launched an updated portfolio of Hybrid Fiber Coax optics, nodes, and amplifiers designed for European cable service providers to scale their networks to deliver the advanced multiscreen services.
- The NASDAQ OMX Group (NDAQ) announced plans to implement CorvilNet, an independent solution for operational performance monitoring that provides a new level of visibility, safeguards and protection for the exchange group's U.S. trading platforms.
3:16 am Rigel Pharma and AstraZeneca (AZN) report topline results from OSKIRA-2 and OSKIRA-3; AZN will not proceed with filings, and return rights to Rigel (RIGL) : Rigel Pharmaceuticals (RIGL) and AstrAZNeneca (:AZNN) announced the topline results from OSKIRA-2 and OSKIRA-3, the remaining pivotal Phase 3 clinical trials investigating fostamatinib, the first oral spleen tyrosine kinase (SYK) inhibitor in development for rheumatoid arthritis.
- In the OSKIRA-2 study of patients inadequately responding to disease modifying anti-rheumatic drugs, fostamatinib in combination with DMARDs showed statistically significant improvements in ACR20 response rates at 24 weeks in both the 100 mg twice daily group and the group receiving 100 mg bid for four weeks followed by 150 mg once daily compared to placebo.
- In the OSKIRA-3 study of patients inadequately responding to methotrexate and a single TNF-alpha antagonist, fostamatinib in combination with MTX showed statistically significant improvements in ACR20 response rates at 24 weeks in the 100 mg bid group, but not in the group given 100 mg bid for four weeks followed by 150 mg qd compared to placebo.
Rigel states that Fostamatinib remains an important asset for Rigel. It is the most advanced oral SYK inhibitor in development and may have applications in patients with RA as well as other potential indications. Over the next couple of months, Rigel will collect and review the results of AZN's extensive development efforts with fostamatanib and determine the appropriate path forward.
3:15 am Amtrust Financial prices 4.6 mln shares of its 6.75% Non-Cumulative Preferred Stock, with a liquidation preference of $25.00 per share (AFSI) :
3:15 am Retail Properties of America recommends rejection of mini-tender offer by Lapis Investment Business Trust (RPAI) : Co announces it has been notified of an unsolicited mini-tender offer by Lapis Investment Business Trust dated May 10, 2013, to purchase up to 100,000 shares of all classes of common stock of RPAI for $13.00 per share. The offer expires on June 7, 2013. RPAI's Board unanimously recommends that its stockholders reject the mini-tender offer by Lapis.
Co states Lapis' offer price for the shares of Class A common stock represents a discount of ~13.8% to the $15.08 closing price of the Class A common stock on June 3, 2013 and 16.7% to the $15.61 closing price of the Class A common stock on May 9, 2013, the trading day prior to the commencement of the Lapis mini-tender offer.
"Although each stockholder has his or her individual liquidity needs and must evaluate the offer accordingly, the Board of Directors does not recommend or endorse Lapis' mini-tender offer and suggests that stockholders reject the offer and not tender their shares pursuant to the offer..."
3:14 am Heidrick & Struggles confirms that it has been approached on a preliminary basis regarding a possible sale of the Company (HSII) : Co announces while it is the long standing policy of co not to confirm or deny market rumors or speculation, in response to media reports the Co confirmed that it has been approached on a preliminary basis regarding a possible sale of the Co.
Co stated that, as a consequence, its Board of Directors decided to explore strategic alternatives, including a possible sale of the Co and continuing to execute against the Co's strategic plan as an independent company. There can be no assurance that the exploration of strategic alternatives will result in the consummation of any transaction. Co believes its stand-alone strategic plan provides attractive growth opportunities for its consultants and associates, and can build value for its shareholders. The Co does not intend to comment further regarding this matter until its Board has determined the outcome of its review process, or otherwise decides that disclosure is required or appropriate.
3:13 am Concho Resources announces successful results of the tender offer for its outstanding 8.625% Senior Notes due 2017 (CXO) : Co announces that it had received tenders and consents from the holders of ~Co announces that it had received tenders and consents from the holders of ~$225.6 mln in aggregate principal amount, or ~75.2%, of its outstanding 8.625% Senior Notes due 201725.6 mln in aggregate principal amount, or ~75.2%, of its outstanding 8.625% Senior Notes due 2017
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