Briefing.com: Hourly In Play (R) – 12:00 ET
Dec 15, 2009 (Briefing.com via COMTEX) -- Hourly In Play (R)
Updated: 15-Dec-09 12:00 ET
11:58
AMED AMEDISYS continues its recent climb higher intraday as it extends further above its late Jul-Oct range high of 46.65 (47.90 +3.39) -Technical-
11:55
PAP Pacific Asia Petroleum announces that production has commenced at the Oyo Oilfield (4.45 +0.11)
Co announces that production has commenced at the Oyo Oilfield, as reported today by Allied Energy, a subsidiary of CAMAC, and Nigerian Agip Exploration, an affiliate of Italy's ENI S.p.A. (E). The field has the ability to initially produce at a rate of approximately 25,000 barrels of oil per day from two subsea wells (in a water depth of 400 meters) which are connected to the Armada Perdana FPSO (Floating Production Storage and Offloading facility). The FPSO has a treatment capacity of 40K barrels of liquids per day, and is capable of storing up to 1 million barrels of crude oil.
11:52
MMM 3M announces it has entered into a definitive agreement to acquire Incavas Industria de Cabos e Vassouras (82.46 +0.55) -Update-
Co announces it has entered into a definitive agreement to acquire Incavas Industria de Cabos e Vassouras Ltda., a manufacturer of floor care products based in Rio Grande do Sul, Brazil. Terms of the transaction were not disclosed.
11:42
DWA Dreamworks Animation breaks to fresh highs on a pick up in relative volume as it elevates up into fresh multi-yr high territory to probe the 40.00 level (40.26 +1.10) -Technical-
11:34
HPQ Hewlett-Packard pops to new session high of 51.17, its eight month high from last week is at 51.43 (51.17 +0.49) -Technical-
11:26
GLD streetTRACKS Gold Shares reverse to fresh daily lows as it eyes a test of yesterday's low near 109.50 below (109.67 -0.59) -Technical-
GDX, AEM, ABX, GG, GFI, RGLD, GOLD, NEM, KGC, AUY
11:21
SPY S&P 500 pauses near yesterday's high -Update- -Technical-
Highlighted first level support for the S&P in The Technical Take in the 1108 area and we did see a solid rebound off this floor this morning. It has thus far paused near yesterday's peak and edged back. The pattern off the morning low is constructive and a hold during the current slide near short term retracements of the bounce (Click for chart) would leave it positioned for follow through. The initial levels of interest above the morning high are at the multi-week range top (1119) and the 1120/1121 area (Fib extension targets, 50% retracement of the 2007-2009 slump).
11:06
HSP Hospira to acquire Orchid's generic injectable pharmaceuticals business (49.77 +0.80)
The co and Orchid Chemicals & Pharmaceuticals announce an agreement for Hospira to acquire Orchid's generic injectable finished-dosage form pharmaceuticals business for ~$400 million. The acquisition includes Orchid's beta-lactam antibiotics manufacturing complex (comprising cephalosporin, penicillin and carbapenem facilities) and pharmaceutical research and development (R&D) facility at Irungattukottai, Chennai, as well as its generic injectable product portfolio and pipeline. Beta-lactam antibiotics represent a class of drugs with a wide spectrum of antibacterial activity. The transaction is expected to be EPS neutral for Hospira in 2010, excluding the impact of transaction-related expenses, such as purchase accounting charges and integration costs, and the amortization of intangible assets.
11:05
Rumor Round Up
Today is the busiest rumor day we have seen in several weeks. With the market gapping down at the open and currently reversing course, we've seen a pickup in rumor activity. It was rumored this morning that Roche could be interested in Vivus (VVUS 9.21 +0.36). We note Roche is frequently the acquirer in these small biotech rumors. The WSJ Deal Journal highlighted a JP Morgan analyst that said yesterday Rockwell Automation (ROK 47.47 -0.65) could be a prime target for General Electric (GE 15.83 -0..11). Intrepid Potash (IPI 30.00 +0.76) saw renewed takeover chatter, this time we were hearing Bunge (BG 63.29 +1.71) could be interested. In the past it has been rumored that Agrium (AGU 62.93 +0.72) could be interested in the company. As mentioned before, while many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term.
11:01
CNI Canadian Natl Rail: Metrolinx purchased from CNI the lower portion of the Newmarket Subdivision (54.10 -0.65)
Metrolinx purchased from CNI the lower portion of the Newmarket Subdivision in central-north Toronto for C$68 million. The transaction gives Metrolinx end-to-end ownership of the 60-mile-long Barrie-Bradford GO Train corridor between downtown Toronto and Barrie, Ont. - a first for the government transit agency.
11:00
CHG CH Energy to invest $50 million in 20-MW wind power project (41.87 -0.22)
Co's unit announced that it plans to invest ~$50 million in a 20-megawatt wind farm facility in Glenmore, Wis. CH Shirley Wind will acquire a 90-percent controlling interest in the project, which carries a 20-year power purchase agreement contract with Wisconsin Public Service Corporation for the electric output of its eight wind turbines.
10:59
GS Goldman Sachs slips to fresh lows as it dips down into its 3-day low of 163.86-164.00 (163.84 -2.28) -Update- -Technical-
10:54
DVN Devon Energy assumed with a Market Outperform at Howard Weil; tgt $80 (66.65 -0.15)
Howard Weil assumes coverage of DVN with a Market Outperform and sets target price at $80. The firm notes that DVN made waves several weeks ago by announcing its intent to strategically re-structure the Co through divesting its International and Gulf of Mexico properties for a broad range of $4.5 to $7.5 bln of after-tax proceeds. The firm believes that the anticipation of these divestitures coming to fruition throughout 2010 will be the primary driver of the stock over the next 12 months. The move to shed some of DVN's more oily properties came as somewhat of a surprise to the firm, but they understand and support the impetus behind the strategic shift, which remains a core competency and efficiency driven measure more than a commodity preference event.
10:52
WCAA WCA Waste signs agreement to acquire landfill, transfer station and rail haul operation (4.44 -0.06)
Co announces it has signed a definitive agreement to purchase the subsidiaries and certain assets of Live Earth, including the Sunny Farms Landfill, Champion City Recovery Transfer Station and the related rail haul operation. The transfer station is permitted to accept 1,000 tons per day and is currently accepting and transporting ~600 tons per day by rail to the Sunny Farms Landfill. The purchase price for the Live Earth subsidiaries and assets consists of $18.75 million of cash, 3,555,556 shares of WCA Waste Corporation common stock to be issued at closing and up to an additional 2,000,000 shares of common stock that will be issuable in the event that the acquired Live Earth businesses obtain certain EBITDA thresholds. If the Live Earth businesses achieve annual EBITDA totaling at least $6,250,000 for four consecutive quarters on or before December 31, 2012, approximately 1.56 million shares, will be issued. The balance of the 2,000,000 shares will be issued upon achieving annual EBITDA totaling at least $7 million for four consecutive quarters on or before December 31, 2012.
10:51
QQQQ Fresh 52-wk high for the Nasdaq Comp at 2215.51 -Update- -Technical-
Initial resistance above is in the 2220/2229 zone.
10:45
QQQQ Nasdaq Comp continues to work higher, edges slightly above Monday's high, its 52-wk peak from early Dec is at 2214 -- session high 2212 -Technical-
10:43
SCHW Charles Schwab lagging thus far today but attempting to stabilize after approaching its 200 day sma at 17.44 -- session low 17.50 (17.60 -0.14) -Technical-
10:40
TAN Sector ETF strength & weakness through the first hour of trading -Technical-
Actively Traded Leading Sector ETFs:
Solar power- TAN +2.5%, Nat gas- UNG +2%, Oil HLDRS- OIH +1.75%, Heating oil futures- UHN -1.25%, RBOB gas futures- UGA +1.25%, Crude/WTI oil- USO +1.25%, OIL +1.25%, Commods- GSG +1.25%, Ag/chem- MOO +1%, iShares healthcare providers- IHF +.75%, SPDRS metals/mining- XME +1%, Clean energy- PBW +.75%, US Dollar index- UUP +.5%
Actively Traded Lagging Sector ETFs:
India- INP -2%, Biotech HLDRS- BBH -1.5%, Commercial banks- KBE -1.25%, iShares REITS- ICF -1%, iShares real estate- IYR -1%, Financials- XLF -1%, IYF -.75%, Regional banks- KRE -.75%
10:39
XLF Relative sector weakness noted in Finance as its hovers near its session low of 14.33 (14.33 -0.14) -Update- -Technical-
BAC -2%, JPM -1.4%, TRV -1%, AXP -0.5%, GS -1%, MS -0.5%, USB -1.1%, SCHW -0.8%, PNC -3.7%.
10:38
OIH Sector Relative Strength -Update- -Technical-
Indices are still in the red but they have pushed firmly off early lows. Relative strength on this move (outperforming the S&P) has been noted in Energy OIH / XLE (continuing early outperformance), Internet HHH, Materials XLB, Airline, Software SWH, Casino, Steel SLX, Medical Supplies, Ag/Chem, Networking, Solar TAN.
10:34
SPY NYSE & NASDAQ volume mostly on pace with yesterday's first hour totals -Technical-
Both primary exchanges are show volume trading totals for the first sixty minutes mostly on pace with yesterday's totals. Yesterday's totals were both below the 50 day moving average, however, versus Friday's tally, both markets registered a 'bullish accumulation' day.
With the SPX now -.25%, & the COMPQ -.10%, a clear picture of institutional activity is not seen thus far.
NYSE 1st sixty min. @ 234M
COMPQ 1st sixty min. @ 446M
10:29
FWLT NASDAQ 100 (NDX) leaders & laggards moving through the first hour of trading -Technical-
NDX Best % Performers:
FWLT +3.25%, NWSA +2.25%, DELL +2%, FSLR +2%, NIHD +1.75%, WCRX +1.75%, JOYG +1.75%, RYAAY +1.25%, ERTS +1.25%, FLEX +1%, CHRW +1%
NDX Worst % Performers:
GILD -3.25%, FLIR -2%, WYNN -1.5%, APOL -1.5%, BBBY -1.25%, LBTYA -1.25%, PCAR -1.25%, URBN -1.25%, MICC -1.25%, ADSK -1.25%
NASDAQ A/D line @ -360
NASDAQ TRIN @ +.70
10:26
DD Dow (INDU) leaders & laggards moving through the first hour of trading -Technical-
INDU Best % Performers:
DD +1%, HD +1%, CVX +.5%, MMM +.5%, HPQ +.5%
INDU Worst % Performers:
BAC -1.5%, JPM -1.25%, VZ -1%, PFE -.75%, PG -.75%
NYSE A/D line @ -535
NYSE TRIN @ +1.05
10:26
GILD Gilead Sciences tests/hovering near support at last week/five week low of 45.38 -- session low 45.39 (45.44 -1.52) -Update- -Technical-
10:19
SPY Stock indices jump higher off lows -Update- -Technical-
The S&P held at support noted this morning at 1108 with a solid intraday jump noted in all the indices in recent action -- Dow -18, S&P -2.3, Nasdaq -4
10:16
SLV New session highs in Silver SLV and Gold GLD in recent trade -Technical-
The GLD is approaching its recent day range high in the 110.70/110.82 area.
10:05
COWN Cowen Group trading resumes (5.00 -0.22) -Update-
10:03
F Ford Motor shares test notable daily resistance surrounding the fresh 52 weeks highs @ 9.15 (9.14 +.07) -Technical-
Follow-through accompanied with volume could lead to a short-term breakout for this automaker.
HoD @ 9.15
10:02
XLE New session highs for Energy XLE / OIH in recent trade -Technical-
10:01
COP ConocoPhillips and Peabody Energy announced that the Commonwealth of Kentucky has issued a draft air permit for Kentucky NewGas (51.00 -0.09)
ConocoPhillips (COP) and Peabody Energy (BTU) announced that the Commonwealth of Kentucky has issued a draft air permit for Kentucky NewGas, a planned state-of-the-art coal-to-natural-gas facility that would be sited near Central City in Muhlenberg County. The mine-mouth project would have very low emissions and would be capable of producing 60 to 70 billion cubic feet of pipeline quality natural gas each year, enough energy for nearly three-quarters of a million Midwest homes. The project also would create economic benefits by creating an estimated 1,200 skilled jobs during a four-year construction process, 500 long-term jobs and providing nearly $100 million in direct economic benefits each year.
10:01
RAX Rackspace names Mark Roenigk as Chief Operating Officer. (19.99 +0.10)
09:59
COMDX Crude oil moves to its best levels of the day at $70.80; now higher by $1.25 to $70.76
09:59
XOM Exxon Mobil attempting to reclaim 200 day (69.86 +0.17) -Update- -Technical-
Sharp slide yesterday on the XTO buyout news with the stock stabilizing near its early Oct gap bottom at 69.27 (yesterday's low 29.28). It is mildly firmer this morning with testing/holding near its 200 day sma at 70.09 (session high 70.11).
09:56
UNG US Natural Gas ETF remains strong in recent sessions as price makes a technical retest of the underside of the descending 50 day SMA in position @ 10.10 (10.08 +.25) -Technical-HoD now @ 10.09 with the ETF outperforming the broad market, up +2.45%
09:55
BBY 50-Day Alert -- Best Buy extends its gap down open lower intraday as it nears a test of its 50-day ema at 41.58 (41.89 -3.49) -Update- -Technical-
Would note that the Sep-Oct range highs come into play in this vicinity near 41.00-41.50 as well.
09:47
FSLR First Solar testing yesterday's highs around $140 (140.20 +1.68) -Update- -Technical-
$140 is also the highs since the Oct. 29 gap down. The close on Oct. 28 was $151.58
09:47
SPY S&P 500 slides back to support -Update- -Technical-
The index is probing the first support zone noted in The Technical Take at 1108 but a rebound back through 1111 is needed to improve the pattern off yesterday's high. The next short term support area at 1103/1102.
09:46
DYNT Dynatronics signed preferred vendor agreement to provide therapy equipment and rehab supplies to Preferred Therapy Providers (0.91 +0.15)
Co announced it has signed a preferred vendor agreement to provide therapy equipment and rehab supplies to Preferred Therapy Providers. "Their vast network of 1,100 clinics is the largest rehabilitation network of its kind, representing private practice therapists across the country." Co continues to actively seek contracts with large chains of clinics, hospitals and group purchasing organizations (GPOs).
09:42
TECHX Early sector strength in Healthcare, Health Provider -Technical-
WLP +2.3%, WCG +0.3%, HUM +0.4%, AET +2.5%, CI +0.7%, AGP +0.6%, UNH +0.9%, LPNT +0.9%, LNCR +1.1%, THC +1.8%, HMA +0.5%
09:41
AZN AstraZeneca and the University of Virginia sign strategic research collaboration to develop novel treatments for cardiovascular disease (45.72 -0.06)
The co and the University of Virginia announce that they have entered into a strategic research collaboration to enhance development of new treatments primarily for coronary artery disease (CAD) with a secondary focus on peripheral vascular disease (PAD). The collaborative preclinical research projects will focus on identifying disease mechanisms and biological targets that have the potential to be starting points for successful and commercially viable treatments of these diseases, both major causes of cardiovascular morbidity and mortality worldwide. The financial terms of the deal were not disclosed.
09:39
COWN Cowen Group priced underwritten offering of 15,284,655 shares of its Class A common stock at a price of $5.00 per share (5.22 0.00) -Update-
(stock is halted)
09:36
INFY Infosys reiterates its commitment in LATAM with Philips deal in Brazil (53.54 +0.14)
Infosys BPO, the Business Process Outsourcing subsidiary of Infosys Technologies, announced its alliance with Philips in Latin America. As a part of the agreement, Infosys BPO will support a range of processes across Brazil, Argentina and Chile in the Procure-to-Pay, Order-to-Cash and Record-to-Report areas such as Accounts Receivable, Intercompany, Foreign Exchange, Local Payments, and Travel and Entertainment Expenses. Infosys BPO will provide language support in English, Portuguese and Spanish.
09:36
COMDX Gold and silver trade out of negative territory, to erase overnight gains, as the dollar index pulls back from its best levels of the morning
Gold is currently up 60 cents to $1124.60 and silver is hihger by 6 cents to $17.40.
09:36
HD Home Depot rebounds back near unchanged after holding at yesterday's low of 28.60 -- session low 28.61 (28.89 +0.02) -Technical-
Yesterday's 52-wk high is at 29.00.
09:34
WFC Wells Fargo gaps higher but fails to reach its 200 day ema at 26.14 and edges back -- session high 26.03 (25.83 +0.33) -Update- -Technical-
09:32
EPIQ EPIQ Systems's Electronic Discovery segment anticipates strong fourth quarter and increased activity in 2010 (13.22 +0.17)
Co reported that fourth quarter results for its electronic discovery segment are on track to be the strongest quarter of 2009. Epiq has continued to broaden its e-discovery service offerings and in 2009 added data collections, forensics, and document review services and expanded its geographic presence to include Hong Kong and Brussels. "We anticipate increases in activity as we look into 2010 for the electronic discovery segment, including an overall pickup in legal matters as well as an active regulatory environment. Increased demand for specialized technology services such as Epiq's IQ Review, which focuses on reducing time spent on document review and providing value in complex litigation, is anticipated as clients continue to seek ways to optimize their e-discovery requirements. Our continued investment in technology, services, and global reach allow us to provide value-added, streamlined e-discovery solutions for law firms and corporations. The company reiterates that it remains on target to achieve the 2009 financial objectives as previously communicated."
09:32
MHS Medco Health Solutions initiated with a Buy at BB&T Capital Mkts; tgt $77 (64.92 -0.02)
09:31
AON Aon Risk Services signs definitive agreement to acquire FCC Global Insurance Services (37.63 -0.08)
Aon Risk Services, the risk management and insurance brokerage business of Aon Corporation, announced that it will acquire FCC Global Insurance Services, the in-house captive brokerage subsidiary of FCC. FCC Global Insurance Services is a subsidiary of Fomento De Construcciones Y Contratas. Financial terms of the acquisition were not disclosed. The transaction is expected to close by the end of the year. As a result, ARS will become the exclusive global insurance broker for FCC for a term of 10 years.
09:30
CNTY Century Casinos enters into agreement to acquire casino in Calgary, Alberta, Canada (2.30 +0.09)
Co announces that the Company's Austrian subsidiary, Century Casinos Europe GmbH, has entered into a definitive agreement to acquire 100% of the outstanding common stock of Frank Sisson's Silver Dollar Ltd. and 100% of the outstanding common stock of EGC Properties Ltd, the owner and operator of Silver Dollar casino in Calgary, Alberta, Canada and the related land. The total consideration for the transaction is $10,650,000, plus/minus a working capital adjustment. approvals. The transaction is expected to close in the first quarter 2010. The total purchase price will be paid out of the Company's cash on hand.
09:29
COWN Cowen Group (COWN) trading halted - news pending (5.22 )
09:23</p>
WFC Wells Fargo announces it will offer 426 mln shares of common stock at confirmed price of $25/share (25.49 ) -Update-
Co announces that it priced a $10.650 billion offering of 426 million shares of its common stock at $25.00 per share. The underwriters will have a 30-day option to purchase up to an additional 63.90 million shares of common stock from the company to cover over-allotments. The closing is expected to occur on or about December 18, 2009.
09:23
TU Telus announced 2010 financial targets (29.30 )
Co announced 2010 financial targets that reflect the continued execution of the company's national growth strategy focused on wireless and data. For 2010, TELUS is targeting consolidated revenue of $9.8-10.1 billion (no ests). EBITDA is expected to be in a range of $3.5 to $3.7 billion and EPS are targeted to be $2.90 to $3.30 in 2010. TELUS expects 2010 EPS will be impacted by slightly increased depreciation and amortization expense and higher net financing costs due to less interest income in 2010. Excluding YTD positive tax impacts and financing charges associated with the early partial debt redemption of June 2011 notes. TELUS expects underlying EPS growth of 2-16% in 2010... Co made minor adjustments to its 2009 annual guidance with both consolidated revenue and EBITDA guidance now trending towards the low end of the previously announced guidance ranges. TELUS reiterated 2009 EPS guidance as it expects a negative 21 cent after-tax financing charge associated with the early partial redemption of U.S. dollar denominated 8% notes due June 1, 2011 to be offset by a similar amount of positive tax adjustments in the fourth quarter of 2009.
09:21
FREE Freeseas announces higher daily rates on new charters on five of its vessels (1.34 )
Co announces new charters for five of its vessels. Mr. Ion Varouxakis, CEO of FreeSeas, stated, "We are very pleased to report that we have taken advantage of the continued daily charter rate increases for our vessels and improvement in the Baltic Handysize Index, reflecting more favorable fundamentals for this segment. Our Company is benefiting from our strategic decision made earlier this year to operate our vessels on the spot market. The combined daily charter rate for these five charters represents an increase of more than $15,000 per day as compared to their prior combined daily charter rates. We believe that the Handysize dry bulk market will show continued strength going forward."
09:19
TTHI Transition Therapeutics downgraded to Hold at Roth Capital; tgt lowered to $6 (7.91 )
Roth Capital downgrades TTHI to Hold from Buy and lowers their tgt to $6 from $13. The firm notes TTHI's ELN005 is currently in a Phase 2 clinical study to treat Alzheimer's. However, after meeting with the Independent Safety Monitoring Committee the firm announced thsi morning that it was discontinuing dosing at the 2 highest dose levels of this study, 1 and 2 g. This decision was made based on an excess of serious adverse events in these treatment group, including 9 deaths. There was also a death in either the low dose or placebo group. The first Phase 1 studies did not demonstrate any toxicity, though the doses in this study were not disclosed. While ELND005 may still be a viable drug, and the firm hopes that it succeeds, the imbalance in deaths and potential that the current Phase 2 study may not be able to afford a statistically significant result is a great concern. Based on today's data, the firm now thinks that odds of ELND005 reaching the market in 2014 are 15% down from 25%.
09:14
BGG Briggs & Stratton initiated with a Neutral at Longbow (19.40 )
09:10
CLD Cloud Peak Energy initiated with a Hold at Dahlman Rose (13.23 )
Dahlman Rose initiates CLD with a Hold. The firm notes that CLD is the owner of three largescale Powder River Basin surface mines formerly controlled by Rio Tinto PLC and is now the 3rd largest U.S. coal miner by 2008 sales. It is the only pure-play PRB operator, and one of only two publicly traded domestic producers without exposure to metallurgical coal. It is also among few names with no exposure to Appalachian regulatory issues plaguing eastern miners of late. Like its peers in the PRB, the Company's sales are highly hedged over the next two years amid currently dismal thermal coal markets.
09:08
PBI Pitney Bowes guides FY10 in-line; reaffirms FY09 EPS guidance; announces transformation initiatives (23.47 )
Co reaffirms guidance for FY09 (Dec), sees EPS of $2.19-2.31 ex-items, vs. $2.26 First Call consensus. Co issues in-line guidance for FY10 (Dec), sees EPS of $2.30-2.50 ex-items, vs. $2.41 consensus, with revs flat to up 3% for the year (including a 2% benefit from currency); note consensus calls for FY10 1% rev growth but this is off of the FY09 consensus which has yet to report its Q4. The co expects to generate free cash flow for 2010 in the range of $650-750 million. During 2010 the co expects an increased investment in finance receivables through higher levels of equipment sales, which would result in lower free cash flow than the prior year. The company has embarked upon a series of initiatives that are designed to transform and enhance the way it operates as a global company. On a pre-tax basis the co is targeting net benefits from its transformation program in the range of $150-200 mln, after reinvesting a portion of the benefits, and expects to achieve the full benefit run rate by 2012. The co expects the total related pre-tax costs associated with this program will be in the range of $250 million to $350 million and that most of these charges will be cash related charges. The program is expected to result in the elimination of up to 10 percent of the positions in the co.
09:07
On The Wires
Covance (CVD) announces the opening of new clinical development offices in Seoul, South Korea and Mumbai, India and office expansions in Tokyo, Japan and Hong Kong, China to accommodate growing demand for clinical development services in Asia-Pacific... Image Entertainment (DISK) announces that it has defaulted on payment under its 8.875% senior convertible note due August 30, 2011 in the principal amount of $15,700,972.60... Chelsea Therapeutics International (CHTP) announces that the FDA has agreed to allow the company to modify the primary endpoint and enroll an additional 24 patients in Study 301, a pivotal Phase III study of Droxidopa for the treatment of symptomatic neurogenic orthostatic hypotension. The primary endpoint of the trial will now be the relative mean change in the Orthostatic Hypotension Questionnaire composite score between Droxidopa and placebo... Repligen (RGEN) announces that they have received $731,000 in research funding to support the ongoing development of new treatments for Friedreich's ataxia from the Muscular Dystrophy Association. This grant will support the completion of preclinical GLP toxicology testing and GMP manufacture of a drug candidate for human clinical trials... StemCells (STEM) announces that it has received a Notice of Allowance and a Notice of Issuance from the US P.T.O for two patents claiming technologies for the establishment and maintenance of cell pluripotency, including the reprogramming of cells to create pluripotent stem cells... Foster Wheeler (FWLT) announces that Refineria de Cartagena has accepted the offer by a joint venture of Foster Wheeler USA and Process Consultants to serve as REFICAR's consultant for the expansion of the Cartagena refinery in Colombia... NovaDel Pharma (NVD) announces that it received an Issue Notification from the US P.T.O for a new U.S. Patent, No. 7632517, entitled "Buccal, Polar and Non-polar Spray Containing Zolpidem," which covers a method of treating insomnia by administering zolpidem to humans utilizing NovaDel's oral spray technology.
09:06
ECONX Reminder: Industrial Production and Capacity Utilization data due out in about 9 min at 9:15ET
09:03
WCRX Warner Chilcott affirms global marketing and collaboration agreement with Sanofi-Aventis (27.40 )
The co announces that Sanofi-Aventis (SNY) has elected not to exercise its right to put its interest in the global marketing and collaboration agreement. As previously disclosed, Warner Chilcott's acquisition of the global branded prescription pharmaceuticals business of The Procter & Gamble Company on October 30, 2009, constituted a change of control under the Marketing Agreement between a P&G subsidiary acquired by Warner Chilcott and Sanofi relating to the development and sale of risedronate products (including Actonel). Pursuant to the Marketing Agreement, the change of control gave Sanofi the right to exercise an option to put its interest in the Marketing Agreement to Warner Chilcott at a fair market value to be determined by independent third party firms. The terms of the Marketing Agreement remain unchanged.
09:02
DE Deere makes offer to purchase Israeli company in cotton business (53.26 )
Co announces that it has made a conditional offer to purchase certain assets and customer relationships of BHC Manufacturing, which is located near Beit Hashita, Israel. Deere said the conditional offer is contingent upon the satisfactory completion of due diligence. Terms of the transaction were not made public. Deere said it anticipates completing due diligence in the 2nd quarter of its 2010 fiscal year.
09:02
RTK Rentech announced today that it has signed a Memorandum of Understanding with thirteen domestic and international passenger and cargo carriers (1.47 ) -Update-
Co announces that it has signed a Memorandum of Understanding with thirteen domestic and international passenger and cargo carriers that is intended to serve as a framework for a future definitive supply agreement for certified jet fuel from Rentech's proposed synthetic fuels and power facility in Adams County, Mississippi. The non-binding M.O.U. signed by RTK and Air Canada, AirTran Airways, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines and US Airways includes terms that are anticipated to serve as the basis of a possible definitive purchase agreement by these carriers for the Natchez Project's entire synthetic jet fuel production of approximately 250 mln gallons per year.
09:01
JAVA Sun Microsystems has won judgments against a U.S. counterfeiter of Sun's products and a U.K. violator of Sun's trademarks (9.28 )
Co announced that it has won judgments against a U.S. counterfeiter of Sun's products and a U.K. violator of Sun's trademarks. In the U.S. case, Sun obtained a federal court judgment against Joe Faris, the primary owner of Sun Valley Technical Repair which was a major counterfeiter of Sun products. The judgment resolves Sun's long-standing litigation against Faris and Sun Valley Technical Repair, and requires Faris to cooperate with Sun as well as make a substantial monetary payment. Faris continues to be subject to potential criminal sanctions for his activities. Sun has invited customers who believe that they may have purchased counterfeit product to contact Sun for a free evaluation of their products' provenance. In the U.K. case, Sun obtained summary judgment in the U.K. High Court of Justice against British firm M-Tech Data. The High Court of Justice ruled that M-Tech infringed Sun's registered trademarks by importing Sun product into the European Economic Area without authorization. In addition to entering an injunction against M-Tech, the High Court has ordered the company to provide Sun with disclosure of M-Tech's activities.
09:01
PACR Pacer Intl CEO, Michael Uremovich stepping down; Daniel Avramovich, current COO, appointed as new CEO (3.21 )
Co announces that its chairman and chief executive officer, Michael Uremovich, will retire effective as of the close of business today, December 15, 2009. Daniel Avramovich will succeed Mr. Uremovich as chief executive officer and will be appointed as a director and chairman of the board of directors.
09:01
CAB Cabela's completed the second amendment to its Second Amended and Restated Credit Agreement (13.41 )
Co announced it has successfully completed the second amendment to its Second Amended and Restated Credit Agreement. The amendment allows the Company to contribute up to $225 million of capital to World's Foremost Bank, the Company's wholly-owned bank subsidiary, in calendar year 2010 plus up to $25 million of capital in any fiscal year. The Company's ability to make the $225 million capital contribution in 2010 is contingent on changes in accounting rules and regulatory guidelines. The Company paid a fee of 50 basis points of the revolving commitment amount to the lending banks to facilitate the amendment. For accounting purposes this fee will be amortized over the remaining term of the credit facility, which expires June 30, 2012. The applicable margin associated with borrowings outstanding under the agreement was unchanged.
08:59
HST Host Hotels announces it is proposing to offer in a private placement $300 mln aggregate principal amount of exchangeable senior debentures due 2029 (10.97 )
08:58
CHTP Chelsea Therapeutics granted approval to change the primary endpoint and increase enrollment in droxidopa pivotal study 301 (2.29 )
Co announces that the FDA has agreed to allow the company to modify the primary endpoint and enroll an additional 24 patients in Study 301, a pivotal Phase III study of Droxidopa for the treatment of symptomatic neurogenic orthostatic hypotension. The primary endpoint of the trial will now be the relative mean change in the Orthostatic Hypotension Questionnaire (OHQ) composite score between Droxidopa and placebo.
08:57
ECTE Echo Therapeutics initiated with a Outperform at Boenning & Scattergood; tgt $3 (1.25 )
Boenning & Scattergood initiates ECTE with a Outperform and price target of $3. The firm believes that in the next three years, ECTE has the potential of changing the way critical care physicians and nurses, endocrinologists and diabetics view glucose monitoring. In 2003, Echo Therapeutics completed its first glucose monitoring pilot study using its first generation skin permeation system and glucose flux sensor. Since that time, Echo Therapeutics has developed a smaller, more advanced skin permeation system, the Preludeâ?¢ SkinPrep system. If its clinical trials are as positive as its pilot studies, the firm believes that ECTE has an opportunity to become the market leader in the continuous glucose monitoring market.
08:56
BONDX Slammed -14/32 3,603%...euro 1,4549...yen 89.5345
The market was already ready to take off ahead of the data and, according to one of the coolest men in Manhattan the market was well prepared for the reports. The bonds were falling well before the data hit and the market was looking for a big bump in the inflation measures. The buck was bounced even further as the inflation numbers give credence to the potential for the FOMC to start looking at rate hikes. The 10-yr has been slammed to yield 3.6%, the highest since August. The market is preparing for mixed numbers, but has little to guide things until all those numbers are revealed. . Global bonds are sliding as the world is seen as less troublesome, but the day's data will be key and yet to come is net TIC flows (9) and industrial production and capacity utilization (9:15).
08:52
DPZ Domino's Pizza upgraded to Buy at Feltl & Co.; tgt $10 (7.66 )
Feltl & Co. upgrades DPZ to Buy from Hold and sets target price at $10. The firm believes that the sell-off in DPZ shares is overdone and the shares look attractive trading at 8.7x their 2010 estimate. Although DPZ's balance sheet is highly leveraged, the firm believes there is little immediate risk to the debt. The firm notes that highly franchised restaurant concepts typically drive higher multiples than restaurant operators and the firm thinks DPZ should not be an exception.
08:49
PZZA Papa John's upgraded to Buy at Feltl & Co.; tgt raised to $27 (21.65 )
Feltl & Co. upgrades PZZA to Buy from Hold and raises their tgt to $27 from $26 following the co's 2010 guidance that was above the firm's expectations. The firm notes that mgmt guided 2010 EPS of $1.70-$1.90, excluding the impact of BIBP, above the firm's $1.70 estimate (consensus $1.74). The firm had previously anticipated a guidance range of $1.60-$1.70. The firm notes that they are encouraged by the better-than-expected 2010 guidance. They believe the incentive program that PZZA launched in early 2008 has helped PZZA's franchisees remain healthy and is helping to seed growth in 2010.
08:46
ECONX Reminder: Net Long-term TIC Flows data due out in about 14 min at 9:00ET
08:43
CCO Clear Channel Outdoor downgraded to Average at Caris & Company; tgt $10 (10.04 )
Caris & Company downgrades CCO to Average from Above Average and maintains their target price at $10 because the stock is now sitting on top of their price target of $10. While written language seen in a series of recent filing lend confidence to the notion that fundamentals indeed are improving, the firm is frankly concerned that CCO will not be able to extract itself out of an onerous cash management agreement it has with its parent, which was a tenet of their original ratings change 3.5 months ago.
08:38
On The Wires
Terra Industries (TRA) announces that Terra Environmental Technologies, a wholly-owned subsidiary, has signed an agreement to supply diesel exhaust fluid to Ford Motor Company (F)...Peet's Coffee & Tea (PEET) announced the expiration of the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, pertaining to its exchange offer to acquire Diedrich Coffee (DDRX). The waiting period expired on December 14, 2009. Peet's also announced today that it has extended the expiration date of its exchange offer to acquire Diedrich for a combination of cash and stock valued at $26.00 per share... Beacon Roofing Supply (BECN) announces that it has acquired Lookout Supply Co, a distributor of roofing systems and related accessories with one branch in Chattanooga, Tennessee... American Oil & Gas (AEZ) has entered into a participation agreement at its Williams County, North Dakota Goliath project with an industry company that has extensive experience in Bakken and Three Forks drilling and completion activities. Pursuant to the agreement, the industry company will have the opportunity to earn 25% of American's working interest in approximately half of the 60,000 net acres at Goliath by funding 100% of American's interest in a one well drill-to-earn arrangement... First Solar (FSLR) announces it has manufactured and shipped more than 1 gigawatt of its photovoltaic solar modules in 2009, becoming the first PV company to attain this production volume in a single year... Ashland (ASH) announces that its subsidiary, Hercules Inc., has signed a definitive agreement to sell its refined wood rosin and natural wood terpenes business, formerly known as Pinova, to a new company formed by TorQuest Partners, a Canadian private equity fund manager, in a transaction valued at approximately $75 mln before tax.
08:38
XTO XTO Energy downgraded to Neutral and removed from Top Picks at Boenning & Scattergood following agreement to be acquired by XOM (47.86 )
Boenning & Scattergood downgrades XTO to Neutral from Outperform based on the news that XOM has agreed to acquire XTO Energy in an all-stock transaction valued at $41 bln, including the assumption of $10 bln of existing XTO debt. The firm does not believe that higher bids for XTO are likely.
08:32
SPY All E~mini index futures contracts slide to GLOBEX lows on initial reaction to econ. data -Technical-
ES -4.50
NQ -8.50
YM -39
08:31
ABC AmerisourceBergen expects FY10 diluted EPS to be at high end of prior range of $1.82-$1.92 vs. $1.91 consensus (25.00 )
Co says it will announce at its Investor Meeting that in the Dec 2009 qtr, it expects diluted earnings per share to be several cents above the current consensus of $0.43, due primarily to expected revenue growth of more than 10% in the December qtr and the contribution from the sale of generic pharmaceutics. Co also says, due to the strong Q1, the company now expects the diluted earnings per share FY10 to be at the higher end of its previously announced range of $1.82 to $1.92 vs consensus of $1.91, an increase of 8-14% over the $1.69 from continuing operations in the prior fiscal year. The key assumptions supporting the diluted earnings per share range in fiscal year 2010 continue to be: revenue growth of between 5-7%, with the first half of the year higher as we annualize the addition of major new business in March 2010; operating margin growth of flat to expansion in the low single-digit basis points range; and free cash flow in the range of $500-$575 mln, which includes capital expenditures in the $140 mln range. The company also expects to repurchase approximately $350 million of its common shares in fiscal year 2010.
08:22
IPXL Impax Labs initiated with a Buy at Collins Stewart; tgt $16 (12.60 )
Collins Stewart initiates IPXL with a Buy and price target of $16. The firm notes that IPXL is a generics pharmaceutical company that specializes in controlled release drugs and also has a branded drug division with two lead product candidates in Phase III trials. The firm expects the next five years to be a period of transformational growth for IPXL which is not yet fully reflected in the co's stock price. The firm notes that IPXL has one of the highest organic earnings growth rates in the generics industry. IPXL also has a strong balance sheet with $100 mln of cash and no debt. The firm believes that IPXL is likely to be acquired by a generic or branded pharmaceutical company interested in the US generics market and the company's controlled release technology. The firm estimates that a fair price for IPXL would be an enterprise value of $1.1 bln.
08:17
MMM 3M upgraded to Buy at Argus; tgt $91 (81.91 )
Argus upgrades MMM to Buy from Hold and sets target price at $91. The firm notes that they expect to see accelerated growth in international markets, which provide nearly two-thirds of the co's revenue, as management improves productivity and customer service, and strengthens its global brand. Moreover, the firm believes that MMM will be able to exceed management's long-term revenue growth target of 7% in emerging markets, while also achieving solid growth in more developed international markets.
08:17
ECONX Reminder: PPI and Empire Manufacturing data due out in about 13 min at 8:30ET
08:12
PALM Palm upgraded to Buy at MKM Partners; tgt raised to $20 (11.92 )
MKM Partners upgrades PALM to Buy from Neutral and raises their tgt to $20 from $11 because they believe that many of the risks they saw to the stock have subsided. First, the firm is much more confident about Palm's chances to sell through Verizon and believe a Verizon relationship would mitigate the uncertainty of an AT&T relationship. Second, Europe is shaping up better than the firm had anticipated, as Android is failing to get sufficient traction, and the Palm Pre is outselling key HTC and Motorola models in major markets like the U.K. Third, Amazon and Wal-Mart are strongly supporting the Pre and Pixi, vindicating Palm's strategy of targeting the mass market, rather than tech enthusiasts. Finally, the firm expects Palm to beat November expectations and believe that a likely February quarter miss poses limited downside risk to the stock because investors are focused on CY2010 and new carrier deals instead.
08:11
On The Wires
The Los Angeles World Airports has awarded Unisys (UIS) a security systems consultant contract to design and manage implementation of an integrated security environment for the organization's three airports. Under the contract, which has a term of one base year and two one-year options exercisable at the City's discretion, Unisys will help LAWA design and develop systems to predict and effectively respond to potential security threats... Comtech (CMTL) announces that its Melville, New York-based subsidiary, Comtech PST Corp., received a $2.5 mln contract from a major domestic OEM to supply high-power amplifiers... SuccessFactors (SFSF) announces a joint partnership between SuccessFactors Japan and PricewaterhouseCoopers Japan... Navios Maritime Holdings (NM) announces that the Navios Lumen, a new building Capesize vessel of 180,660 dwt was delivered from a South Korean shipyard on December 10, 2009. The purchase was partly financed by the proceeds of the recent 8 7/8% First Priority Ship Mortgage Notes with the amount of $52.5 mln... Deltek (PROJ) announces that it has acquired mySBX, an online community that enables government contractors to rapidly identify opportunities, manage resources, win more business, and increase profits... The Babcock & Wilcox, a subsidiary of McDermott International (MDR), announces that it has been awarded a contract to support a condenser replacement project at Energy Northwest's Columbia Generating Station in Richland, Washington. B&W will begin preparations for the project that will take place during a 2011 outage at the plant.
08:10
BBY Best Buy beats by $0.10, reports revs in-line; raises FY10 EPS and revs above consensus (45.37 )
Reports Q3 (Nov) earnings of $0.53 per share, $0.10 better than the First Call consensus of $0.43; revenues rose 4.6% year/year to $12.02 bln vs the $11.98 bln consensus. Co raises guidance for FY10, sees EPS of $3.00-3.15 vs. $2.96 consensus, up from $2.70-3.00 previously; sees FY10 revs of $49-49.5 bln vs. $48.59 bln consensus, up from $48-49 bln previously. The domestic 9% revenue increase was driven by a comparable store sales gain of 4.6% and the net addition of 87 stores in the past 12 months. The co noted that domestic comparable store sales improved sequentially each month of the fiscal quarter, finishing with an 8.4 percent increase in the fiscal month of November. The company believes its domestic segment experienced strong market share gains, growing an estimated 230 basis points for the three months ended Oct. 31, 2009 as compared to the prior year period. "We are pleased with the continued stabilization of store traffic and our significant share growth in the third fiscal quarter. We now forecast greater revenue and earnings for the year, and as a result, we are raising the bottom and top ends of our full year guidance. While a large portion of the key holiday selling season remains ahead and consumers are clearly being very conscious of what they buy and from whom they make purchases, the trends we experienced in the third quarter continue to provide encouragement about what lies ahead in the balance of the fiscal year." The co believes its improved revenue outlook for the fiscal fourth quarter will primarily be driven by categories in the domestic segment with lower gross profit rates such as notebook computers and entry price-point televisions across all screen sizes. As a result, the co anticipates a lower fiscal fourth quarter gross profit rate than previously expected.
08:08
AEZ American Oil & Gas announces Bakken and Three Forks participation agreement at the Goliath Project (3.80 )
Co has entered into a participation agreement at its Williams County, North Dakota Goliath project with an industry company that has extensive experience in Bakken and Three Forks drilling and completion activities. Pursuant to the agreement, the industry company will have the opportunity to earn 25% of American's working interest in approximately half of the 60,000 net acres at Goliath by funding 100% of American's interest in a one well drill-to-earn arrangement. American will be carried for and will retain 30% of its original interest in the well and the drill site spacing unit. The industry company will also pay up to an additional $1.1 million to American as part of the agreement. The drilling location has been prepared for the Tong Trust 1-20H earning well, located in Sections 17 and 20 of T157N-R96W, Williams County, North Dakota and drilling is expected to commence before year-end.
08:08
KYO Kyocera Corp to provide 13 megawatts of solar modules for "one of Japan's largest solar installations" (88.40 )
Co announces that it will provide approximately 13 megawatts of solar modules for the Ohgishima Solar Power Plant "Mega Solar System," planned by Tokyo Electric Power Company with construction by Hitachi, Ltd. Scheduled for completion in 2011, the installation will be one of the largest in Japan, providing electricity for approximately 3,800 homes and off-setting about 5,800 tons of CO2 emissions each year.
08:08
SPW SPX receives U.S. Department of Energy grant for smart grid demonstration (55.53 )
Co announces that its Waukesha Electric Systems business unit was awarded a $10.7 mln grant by the U.S. Department of Energy to develop and manufacture a smaller, more efficient superconducting transformer for electric utilities which will help enhance the flexibility and reliability of the nation's power grid. SPX's Waukesha Electric Systems and several grant participant companies intend to make $10.8 mln in contributions to the project, bringing the total value to $21.5 mln.
08:07
ENT Enterra Energy delivered a notice of termination for non-performance under the terms of its Farmout Agreement (1.48 )
Co delivered a notice of termination for non-performance under the terms of its Farmout Agreement with North American Petroleum Corporation USA, a wholly owned subsidiary of Petroflow Energy Ltd. (PED). Under the Agreement which began in March 2006, Petroflow was required to maintain a certain pace of drilling to continue its right to drill on lands owned by Enterra in a seven county area in the Oklahoma Hunton play. Since the initiation of this partnership 64 wells were drilled into the Hunton formation in Oklahoma with very positive overall economic performance. Enterra will continue to develop the Hunton play on its lands.
08:06
ISIS ISIS Pharm and Alnylam Pharmaceuticals announce notice of allowance for patent application covering RNAi Therapeutics (9.98 )
The co and Alnylam Pharmaceuticals (ALNY) announce that the United States Patent and Trademark Office (USPTO) has issued a Notice of Allowance for U.S. patent application (No. 10/078,949) in the "Crooke" patent family, which broadly covers chemically modified RNA-containing therapeutics. Specifically, the allowed Crooke application includes 75 claims covering methods of using chemically modified double-stranded RNA-containing compounds to activate an RNA nuclease (RNase). The activation of the endogenous cellular RNase "argonaute 2" by double-stranded small interfering RNAs (siRNAs) is a central step in RNAi, resulting in the sequence-specific cleavage of target mRNA.
08:04
PSTI Pluristem Therapeutics says Data Safety Monitoring Board approves advancement to intermediate dose level of PLX-PAD (1.08 )
Co announced that the independent DSMB approved the advancement to the intermediate dose level of the co's placenta derived cell therapy, PLX-PAD, in the Phase I clinical trial in Europe for the treatment of critical limb ischemia, the end stage of peripheral artery disease.
08:04
ASH Ashland to sell wood rosin and terpenes business to TorQuest Partners (39.93 )
The co announces that its subsidiary, Hercules Incorporated, has signed a definitive agreement to sell its refined wood rosin and natural wood terpenes business (Hercules Specialty Resins), formerly known as Pinova, to a new company formed by TorQuest Partners, a leading Canadian private equity fund manager, in a transaction valued at approximately $75 million before tax. The proposed asset purchase transaction, for $60 million in cash and a $15 million note from the buyer, includes transfer of the business and the approximately 200 employees supporting it, along with an associated manufacturing facility in Brunswick, Ga.
08:04
SPWRA Sunpower provides update of audit committee investigation; says it has made "significant progress in internal investigation" (23.19 )
Co announces that it has made significant progress in its internal investigation of unsubstantiated accounting entries previously announced on Nov 16, 2009. The investigation is being conducted under the direction of the SunPower board of director's audit committee, with the assistance of outside legal and accounting experts. The investigation to date is consistent with the preliminary findings announced on Nov 16, 2009. The audit committee is working with its experts and appropriate SunPower personnel to promptly complete a thorough investigation.
08:03
OIS Oil States secures Kearl accommodations contract (36.40 )
Co announces that a subsidiary of Oil States' Canadian accommodations company, PTI Group, was awarded a three-year contract by Imperial Oil Ltd. to provide accommodations in support of Phase I of the Kearl oil sands development. In connection with the contract, PTI will expand its existing Wapasu Creek Lodge to provide accommodations for up to 4,500 of IOL's employees and contractors involved in the initial construction efforts for the Kearl project. The initial three year contract term commences April 1, 2010 and extends through March 31, 2013. IOL has the option to extend the contract for further phases of the Kearl development. Oil States will begin its Wapasu Creek Lodge expansion in the fourth quarter of 2009. Additional capital expenditures will be necessary to expand the Wapasu Creek Lodge in 2010 to satisfy IOL's ultimate accommodations needs. In total, Oil States estimates that the IOL contract will generate approximately US$460 million of revenues over the first three years of the contract.
08:03
GHDX Genomic Health announces new data reinforcing clinical utility of Oncotype DX in multiple breast cancer populations (20.54 )
Co announces results from five new studies on its Oncotype DX breast cancer test, a multi-gene expression test that physicians currently use to predict the likelihood of chemotherapy benefit and recurrence risk for patients with early-stage breast cancer: Oncotype DX Predicts Anthracycline-Based Chemotherapy Benefit in Women with ER+, N+ Breast Cancer; Oncotype DX Leads to Fewer Recommendations of Chemotherapy for Women with Node-Positive Breast Cancer; Oncotype DX Can Be Successfully Performed on Breast Cancer Core Biopsy Samples, Suggesting Potential Role in Neoadjuvant Treatment Planning; Exploratory Analysis of Gene Expression Identifies New Potential Therapeutic Targets, Biomarkers Associated with Recurrence.
08:02
AMLN Amylin Pharms: Exenatide Once Weekly provided superior glucose control compared to BYETTA in DURATION-5 study (14.02 )
The co, LLY, and ALKS announce positive results from a head-to-head study comparing exenatide once weekly, an investigational diabetes therapy, to BYETTA (exenatide) injection taken twice daily, in patients with type 2 diabetes. After 24 weeks of treatment, patients taking exenatide once weekly experienced a statistically superior reduction in A1C, a measure of average blood sugar over three months, of 1.6 percentage points from baseline, compared to a reduction of 0.9 percentage points for BYETTA. Patients treated with exenatide once weekly achieved a mean A1C of 7.1 percent compared with a mean A1C of 7.7 percent in those treated with BYETTA. Both treatment groups achieved statistically significant weight loss by the end of the study, with an average loss of 5.1 pounds for patients taking exenatide once weekly and 3.0 pounds for patients taking BYETTA. These findings are consistent with the results of other studies of exenatide once weekly and BYETTA. The companies conducted DURATION-5 to support regulatory submissions outside of the U.S. and provide additional controlled clinical data on the commercially manufactured product. DURATION is a series of clinical trials designed to test the superiority of exenatide once weekly as compared to currently available type 2 diabetes medications.
08:01
SEED Origin Agritech increases majority interest in Jilin Changrong Seed Company (11.26 )
Co announces that it now has a 53.95% ownership stake in Jilin Changrong directly and a 62.82% ownership stake directly and indirectly for which it has paid total consideration of approximately US $10.11 mln. Due to Origin's strong balance sheet and cash position, it has acquired an additional 10% interest in its Jilin Changrong Seed Company subsidiary from certain shareholders for RMB 24.00 mln (US $3.51 mln).
08:01
NEPT Neptune Technologies sees Q3 revs up 39-55% YoY to $3.4-3.8 mln, no ests (2.06 )
Co expects total revs for Q3 to be in the range of $3,400,000 to $3,800,000 compared to $2,451,000 for the third quarter ended November 30, 2008, representing an increase of 39 to 55%. Total revenue for the nine-month period ended Nov 30, 2009 is expected to be in the range of $7,650,000 to $8,050,000 compared to $7,951,000 for the nine-month period ended November 30, 2008, representing a decrease of 3.8% to an increase of 1.2%. Neptune has managed to catch up with last year's sales level despite a second quarter revenue of $1,371,000 following the production plant shut down for the completion of the expansion to increase plant capacity. The production plant is running at a steady rate targeting over 90,000 kg annually. In order to respond to increased demand and deliver on its volume commitments, Neptune is currently working to further expand its production capacity from 90,000 kg to an estimated 110,000 to 120,000 kg annually.
08:01
IDN Intelli-Check Inc awarded a contract with Port of New York/New Jersey to supply mobile Transportation Worker Identity Credential readers and access control systems (1.22 )
07:56
EPB El Paso Pipline Partners downgraded to Neutral at Ladenburg Thalmann based on valuation (25.16 )
Ladenburg Thalmann downgrades EPB to Neutral from Buy as the firm believes that the remaining total return potential is 13.2% and falls below the firm's minimum threshold of >15% total return potential for a Buy rating.
07:45
WIN Windstream announces proposed private offering of $600 mln of senior notes due 2017 (10.91 )
07:40
On The Wires
Haemonetics Corporation (HAE) announced that it has filed a new legal action to stop Fenwal Inc.'s continued patent infringement resulting from Fenwal's just released red cell collection kits, using a modified separation chamber. Fenwal allegedly modified its separation chamber to circumvent Haemonetics' patent and the injunction entered by the Court prohibiting Fenwal's continued sale of infringing products after December 1, 2010. According to statements made by Fenwal's counsel today in the United States District Court, Fenwal is determined to proceed with commercialization without 510(k) clearance from the U.S. Food & Drug Administration... Sensient Technologies Corporation (SXT) has opened new facilities in China located in Guangzhou and Shanghai. Co also opened a new state-of-the-art facility in Alajuela, Costa Rica. The new flavors center in Costa Rica will serve as the base of Central American and Caribbean operations... ATS Medical (ATSI) announced that the United States Patent and Trademark Office has issued patent number 7,594,974 regarding a novel method of cutting tissue materials for use in implantable devices.
07:31
CELG Celgene says positive Phase IIb topline clinical data for Celgene oral compound Apremilast reported for patients with moderate-to-severe psoriasis (53.88 )
Co announces clinical data from an investigational Phase IIb, double-blind, placebo-controlled study of apremilast in patients with moderate-to-severe plaque-type psoriasis. This was a 352-patient, multi-center study in which patients received either 10mg, 20mg or 30mg of apremilast twice per day, or placebo. Forty-one percent of patients treated with 30mg of oral apremilast BID achieved a PASI-75 after 16 weeks, compared to a 6% of patients receiving placebo. In addition, a dose-dependent effect was observed between the active therapy arms of the study. Specifically, 29% of patients receiving 20mg BID of apremilast achieved a PASI-75, while 11% of patients receiving 10mg BID of apremilast achieved a PASI-75.
07:30
COMV Comverge entered into an agreement with OG&E to be partner in Smart Grid demand response program (11.59 )
Co announced that it has entered into an agreement with OG&E to be a key partner in the Oklahoma City-based utility's Positive Energy(R) Smart Grid demand response program. OG&E was recently notified by the U.S. Department of Energy (DOE) that its application for $130 million in stimulus funding to accelerate the smart grid deployment across its entire service territory was accepted for award, pending final negotiations. The company plans a home area network demand response study to determine if residential and commercial utility customers will chose to shift electricity use during times of peak energy demand to manage costs and lessen the strain on the grid. The study will be conducted with participating customers in Norman, Okla. during the summers of 2010 and 2011.
07:30
AMSC Am Superconductor names Daniel McGahn President and Chief Operating Officer (39.09 )
07:08
CYCC Cyclacel Pharma held a Type A meeting with FDA to discuss a randomized Phase 3 study design for Cyclacel's oral sapacitabine capsules (1.36 )
Co announced that it recently held a Type A meeting with the U.S. Food and Drug Administration (FDA) to discuss a randomized Phase 3 study design for Cyclacel's oral sapacitabine capsules in acute myeloid leukemia (AML) and separately in myelodysplastic syndromes (MDS). Based on the FDA's confirmation that the proposed study design would be acceptable for a Special Protocol Assessment (SPA), Cyclacel plans to submit a SPA request during the first quarter of 2010. Co reported data from a randomized Phase 2 study including promising 1-year survival in a difficult to treat population of elderly patients with AML aged 70 years and activity in older patients with MDS refractory to hypomethylating agents. The primary endpoint of 1-year survival was 35% on Arm A, 30% on Arm C and 10% on Arm B. The median overall survival was 212 days on Arm C (range of 13 to over 654 days), 197 days on Arm A (range of 26 to over 610 days) and 100 days on Arm B (range of 6 to over 646 days). Overall response rate (ORR), a secondary endpoint, was 45% on Arm A, 35% on Arm C and 25% on Arm B with CR rate of 25% on Arm C and 10% on Arms A and B. Thirty-day mortality was 10.0% on Arm C and Arm A and 20.0% on Arm B. Approximately 30% of all patients received sapacitabine for at least 6 cycles. Fifteen patients who survived one year or more received an average of 12 treatment cycles and 7 patients are still on study receiving sapacitabine.
07:07
WY Weyerhaeuser announces intent to elect REIT status; timing under consideration (42.51 ) -Update-
Co announces that its board of directors has determined that conversion to a real estate investment trust (REIT) would best support the company's strategic direction. Factors the board will consider in determining the timing of converting to a REIT include the state of the economic recovery, changes in tax policy including shareholder tax rates and the distribution of earnings and profits required under tax laws for REIT election. By the end of the year of conversion, Weyerhaeuser must issue a special, taxable dividend to stockholders of its undistributed earnings and profits. As of the beginning of 2010, Weyerhaeuser expects earnings and profits to total just under $6 bln. Weyerhaeuser said it intends to pay a significant portion of the dividend in stock. This will require shareholder approval to increase the authorized number of shares at the annual shareholder meeting in April. Shareholders will receive information on this proposal, and the proposed governance changes announced earlier this morning, in the 2010 proxy statement to be mailed in February.
07:06
RENT Rentrak announces it has acquired Nielsen EDI, from The Nielsen Company (17.98 )
The co and The Nielsen Company announced they have signed a definitive agreement under which Rentrak will acquire Nielsen EDI, from The Nielsen Company. The transaction, which is expected to close in the first calendar quarter of 2010, is subject, in some jurisdictions, to consultation with employee representative bodies and other regulatory requirements. As part of the transaction, Nielsen will also enter into a long term data license agreement with Rentrak for continued access to certain box office sales information for certain of its existing products and services that currently use or feature such data.
07:04
GILD Gilead Sciences announced, overnight, that second pivotal Phase III study of its Darusentan for resistant hypertension missed primary endpoints (46.96 )
Co announced that DAR-312, a Phase III clinical trial evaluating darusentan, the company's endothelin receptor antagonist for the treatment of resistant hypertension, did not achieve its co-primary efficacy endpoints of change from baseline to week 14 in trough sitting systolic blood pressure and diastolic blood pressure compared to placebo. DAR-312 is an international Phase III double-blind, placebo- and active-controlled, parallel group trial, in which 849 patients were randomized to receive darusentan (titrated to the optimal dose of 50, 100 or 300 mg once daily), an active comparator or placebo. The study was 95 percent powered to detect an 8 mm Hg improvement in SBP and DBP between the darusentan and placebo groups. Reductions in mean trough sitting SBP and DBP from baseline were not statistically significantly different between darusentan and placebo. Darusentan did demonstrate superiority in sitting SBP and DBP when compared to guanfacine at 14 weeks; additionally the study met other secondary endpoints. Officer. "As a result, we think it would be challenging to define an expedient path forward. We would likely be required to initiate another Phase III study and would rather allocate our resources to other promising research and development opportunities in our pipeline."
07:04
TECUA Tecumseh Prods announced that James Wainright has been named president and chief executive officer effective immediately (12.55 )
07:03
ME Mariner Energy to purchase the subsidiaries and operations of Edge Petroleum Corporation (13.35 )
Co announced that it has agreed to purchase the subsidiaries and operations of Edge Petroleum Corporation in a transaction valued at approximately $215 million after anticipated purchase price adjustments. Mariner expects the transaction to close by December 31, 2009, with an effective date of June 30, 2009. The transaction has been approved by the bankruptcy court in which Edge's Chapter 11 case is pending, subject to any appeals. Mariner will utilize its revolving credit facility to fund the acquisition.
07:03
FDS FactSet reports EPS in-line, revs in-line; guides Q2 EPS and revs in-line (76.06 )
Reports Q1 (Nov) earnings of $0.74 per share, in-line with the First Call consensus of $0.74; revenues fell 0.3% year/year to $155.2 mln vs the $155.9 mln consensus. Co issues in-line guidance for Q2, sees EPS of $0.73-0.75 vs. $0.75 consensus; sees Q2 revs of $154-158 mln vs. $158.31 mln consensus. The Company repurchased 777,400 shares for $52.1 million during the first quarter. Including the expansion, $150 million remains authorized for future repurchases. The 2010 guidance for capital expenditures, net of landlord contributions, is between $20 million and $26 million.
07:03
ORCC Online Resources announced that Matthew P. Lawlor, chairman and chief executive officer, has retired (5.19 )
Co announced that Matthew P. Lawlor, chairman and chief executive officer, has retired as CEO effective immediately. He will remain as chairman until February 15, 2010 to assist with the transition. Thereafter, Mr. Lawlor will serve on the Board as a director. Raymond T. Crosier, current president and chief operating officer, will serve as interim chief executive officer until a successor is named.
07:02
KBX Kimber Resources announces it has a prospectus for a common share offering for an undetermined amount (1.34 )
07:02
HT Hersha Hospitality Trust completed an amendment to its $175 million existing revolving credit facility (2.82 )
Co announced that it completed an amendment to its $175 million existing revolving credit facility. All of the lenders in the Company's existing bank group remain committed to the amended facility. Significant amendments to the credit agreement include a decrease in the minimum permitted debt service coverage requirement to 1.20x and a decrease in the minimum ratio of EBITDA to debt service to 1.25x. Additionally, the interest rate payable is the prime rate plus 150 basis points. The interest rate payable on the LIBOR rate loan will now be to the greater of LIBOR plus 350 basis points with a 4.25% floor.
07:02
KONG KongZhong announces acquisition of Shanghai Dacheng Network (11.01 )
Co announces it has entered into a definitive agreement to acquire Shanghai Dacheng Network Technology a developer of three-dimensional multi-player online role-playing games based in Beijing and Shanghai. Based on Dacheng's 2010 net profit after tax, as calculated under US GAAP, the Company would pay up to US$80.0 mln, in a mix of cash and the Company's ordinary shares, to Dacheng's shareholders. The transaction has been approved by the Company's Board of Directors. The Company expects that the transaction will close in the first quarter of 2010. Upon the closing of the transaction, $9.58 mln in cash and 42.76 mln of the Company's ordinary shares (equivalent to 1.07 mln ADS), for a combined value of $24.12 mln, will be paid to the shareholders of Dacheng. If the NPAT of Dacheng for the first six months of 2010 exceeds $5.0 mln, then a payment of $5.45 mln in cash and $10.42 mln worth of the Company's ordinary shares will be paid to the shareholders of Dacheng. The number of ordinary shares issued will be determined based upon the average closing price of the Company's ADSs over a 30-day period prior to this second contingent payment. The total consideration for the acquisition of Dacheng will be based on Dacheng's NPAT for the entire 2010. If Dacheng's NPAT for 2010 equals to or exceeds US$6.5 mln, a multiple of 8 will be applied to Dacheng's NPAT for 2010 to arrive at the total consideration. If Dacheng's NPAT for 2010 is less than US$6.5 mln, then a multiple of 5 will be applied to Dacheng's NPAT for 2010 to arrive at the total consideration.
07:01
JAZZ Jazz Pharma announces it has submitted a New Drug Application to the FDA for JZP-6 for the treatment of fibromyalgia (8.49 )
Co announced it has submitted a New Drug Application to the FDA for JZP-6 for the treatment of fibromyalgia. The submission is based on a comprehensive clinical development program for JZP-6, including results from two Phase III clinical trials. In both trials, sodium oxybate significantly decreased pain and fatigue as well as improved daily function, patient global impression of change, and sleep quality. Sodium oxybate has not been evaluated by regulators for the treatment of fibromyalgia and is not approved for this use.
07:01
WY Weyerhaeuser to eliminate the company's classified board structure (42.51 )
Co announced that its board of directors has approved amendments to the company's articles of incorporation to eliminate the company's classified board structure and remove existing super majority voting provisions. The board will ask shareholders to approve these amendments at Weyerhaeuser's annual shareholder meeting in April 2010. It will take a 66 2/3 percent favorable vote of the outstanding shares to approve the amendments. Shareholders will receive information on these proposals in the 2010 proxy statement to be mailed in February.
07:01
CUB Cubic receives $7 million in new orders for Japanese Air Self-Defense Force Training Systems (38.24 )
07:00
HGSI Human Genome announces submission of marketing suthorization spplication to EMEA for JOULFERON (28.55 )
Co announces that Novartis has submitted a Marketing Authorization Application to the European Medicines Agency for approval to market JOULFERON for the treatment of chronic hepatitis C. In November 2009, HGS submitted a Biologics License Application for ZALBIN to the FDA in the United States. The MAA submission includes the results of two pivotal Phase 3 clinical trials showing that 900-mcg albinterferon alfa-2b dosed every two weeks met its primary endpoint of non-inferiority to peginterferon alfa-2a (Pegasys) dosed once each week. The Phase 3 studies, known as ACHIEVE 1 and ACHIEVE 2/3, evaluated albinterferon alfa-2b vs. peginterferon alfa-2a, in combination with ribavirin, for use in the treatment of interferon-naive patients with chronic hepatitis C. In both studies, albinterferon alfa-2b, with half the injections, achieved sustained virologic response comparable to that achieved by peginterferon alfa-2a. The rates of serious and/or severe adverse events were also comparable in these studies. ACHIEVE 1 was conducted in patients infected with genotype 1 virus, and ACHIEVE 2/3 was conducted in patients with genotypes 2 or 3 virus. The two studies treated a total of 2255 patients.
07:00
IGC India Globalization Capital awarded two new Chinese iron ore supply contracts valued at $3.0 million (1.39 )
06:46
TRS Trimas announces tender offer and consent solicitation for 9 7/8% Senior subordinated notes due 2012 (5.20 )
Co has launched a cash tender offer and consent solicitation for any and all of its outstanding 9 7/8% Senior Subordinated Notes due 2012. There are $256.5 mln outstanding. The total consideration for the Notes tendered and accepted for purchase pursuant to the tender offer will be $1,020.25 for each $1,000 principal amount of Notes tendered, as specified in the Tender Offer Documents and composed of a Consent Payment and a Purchase Price
06:43
On The Wires
Carrizo Oil & Gas (CRZO) today announced the sale of an interest in a portion of its core Barnett Shale acreage to a subsidiary of Sumitomo Corporation for $15.7 million... NexMed (NEXM) announced the closing of its acquisition of Bio-Quant, Inc., a privately-held leading research organization for in vitro and in vivo contract drug discovery and pre-clinical development services. ".. We remain hopeful that the closing of this transaction will give the NASDAQ Panel sufficient confidence in NexMed's ability to regain and maintain compliance with all applicable listing requirements going forward."
06:43
JASO JA Solar announces a $75 mln share repurchase program (5.30 )
06:42
MGLN Magellan Health raises guidance for FY09 (Dec), sees EPS of $2.77-2.95 vs. $2.61 First Call consensus (36.82 )
Co raises guidance for FY09 (Dec), sees EPS of $2.77-2.95 vs. $2.61 First Call consensus. Co issues guidance for FY10 (Dec), sees EPS of $2.73-3.29 vs. $2.91 consensus; sees FY10 (Dec) revs of $3.0-3.2 bln vs. $2.96 bln consensus. The Company raised its guidance for 2009 to net income in the range of $98.1 mln to $104.4 mln, earnings, and segment profit in the range of $220 mln to $230 mln. Cash flow from operations is expected to be in the range of $175 mln to $211 mln in 2010, with a net increase in unrestricted cash and investments of $127 mln to $173 mln by the end of 2010, excluding the impact of any further share repurchases. See the attached tables detailing the Company's 2010 financial guidance.
06:41
S&P futures vs fair value: -3.40. Nasdaq futures vs fair value: flat.
06:41
Asian Markets
Nikkei...10083.48...-22.20...-0.20%. Hang Seng...21813.92...-271.80...-1.20%.
06:41
European Markets
FTSE...5281.61...-33.60...-0.60%. DAX...5791.30...-10.90...-0.20%.
06:31
HXM Homex Development sees FY10 rev growth of 12-14%; consensus calls for 16% revenue growth (over the FY09 consensus; 4Q09 has yet to be reported) (37.07 )
For the coming year, the co expects to achieve sound revenue growth in the range of 12-14% YoY (consensus calls for 16% revenue growth) and EBITDA margin in the range of 21 to 22 percent.
06:24
GOK Geokinetics prices 4 mln share common stock offering at $9.25 per share (9.92 )
Geokinetics intends to use the net proceeds from this offering to fund a portion of the cash purchase price of the acquisition of the on-shore seismic and multi-client seismic library business of Petroleum Geo-Services ASA, and any remaining net proceeds for general corporate purposes, which could include the costs to mobilize Geokinetics' seismic crews. The completion of the common stock offering is not contingent upon the completion of the acquisition.
06:20
ELN Elan and Transition Therapeutics announce modifications to ELND005 Phase II Clinical Trials in Alzheimer's Disease (6.70 )
The two cos (ELN and TTHI) notified clinical investigators of modifications to the Phase II study AD201 and open label extension study AD251 for ELND005, a compound being developed for the potential treatment of Alzheimer's disease. The AD201 study is evaluating three dose levels of ELND005 compared to placebo in 353 patients. Patients will be withdrawn immediately from the study in the two higher dose groups (1000mg and 2000mg dosed twice daily). The study will continue unchanged for patients who are assigned to the lower dose (250mg dosed twice daily) and placebo groups. The AD251 study will be modified to dose patients only at 250mg twice daily. The decision by the cos to take these actions was made in concurrence with the Independent Safety Monitoring Committee (ISMC) following a review of the ongoing ELND005-AD201 study. Greater rates of serious adverse events, including nine deaths, were observed among patients receiving the two highest doses. A direct relationship between ELND005 and these deaths has not been established. The ISMC and both companies concur that the tolerability and safety data are acceptable among patients receiving the 250mg dose and that the blinded study should continue for this dose and the placebo group.
06:18
SGEN Seattle Genetics and Millennium: The Takeda Oncology Company announce strategic collaboration for novel late-stage lymphoma program Brentuximab Vedotin (8.94 )
Seattle Genetics (SGEN) and Millennium: The Takeda Oncology Company with its parent company Takeda Pharmaceutical Company jointly announced that Seattle Genetics and Millennium have entered into an agreement to globally develop and commercialize brentuximab vedotin (SGN-35). Brentuximab vedotin is an antibody-drug conjugate targeting CD30 that is in late-stage clinical trials for the treatment of relapsed and refractory Hodgkin lymphoma and systemic anaplastic large cell lymphoma. Data from a pivotal phase II trial of brentuximab vedotin in relapsed or refractory HL, which is fully enrolled, are expected in the second half of 2010. The trial is being conducted under a special protocol assessment with the FDA and is designed to provide the basis for regulatory submissions in the United States and Europe in 2011. Under the collaboration, Seattle Genetics will receive an upfront payment of $60 mln and retains full commercialization rights for brentuximab vedotin in the United States and Canada. The Takeda Group will have exclusive rights to commercialize the product candidate in all countries other than the United States and Canada. Seattle Genetics is entitled to receive progress- and sales-dependent milestone payments in addition to tiered double-digit royalties based on net sales of brentuximab vedotin within the Takeda Group's licensed territories. Milestone payments to Seattle Genetics could total more than $230 mln. Seattle Genetics and the Takeda Group will jointly fund worldwide development costs on a 50:50 basis. Development funding by the Takeda Group over the first three years of the collaboration is expected to be at least $75 mln. In Japan, the Takeda Group will be solely responsible for development costs.
06:08
OSUR OraSure Tech receives CE Mark for OraQuick rapid HCV antibody test (4.28 )
06:07
GBX Greenbrier modifies long-term new railcar contract with GE Railcar Services (11.50 )
Co announces an agreement with General Electric Railcar Services (GER), a subsidiary of GE Capital, GE's financial services business, to modify GER's new railcar manufacturing contract with Greenbrier. Under the terms of the modified contract, the parties have agreed to reduce the contract quantities to up to 6,000 railcars. Greenbrier will build the first 3,800 tank cars and hopper cars by July 2013. The delivery and purchase price of these units is agreed upon, with the purchase price subject to adjustments for changes in the Company's material costs. The blended purchase price on these 3,800 units represents a price increase from the original contract, and delivery of these units has been extended by 27 months from the original contract. The remaining 2,200 tank and hopper cars are subject to fulfillment of certain contractual conditions by both parties in their sole discretion and would occur over the next five-year period. In addition, Greenbrier has retained the right of first refusal, subject to certain qualifications, to manufacture all new railcar builds for GER through December 2018. The modified deal contains many other additional benefits to both Greenbrier and GER. Greenbrier will become a Preferred Railcar Maintenance Provider for GER's fleet of railcars and will perform railcar maintenance and refurbishment work for GER under a new five-year agreement with a minimum contract value of approx $25 mln. As a result of the modified contract, Greenbrier's total firm new railcar manufacturing backlog as of November 30, 2009 is 4,900 units valued at approx $430 mln. This backlog figure excludes the contingent production of 2,200 units for GER.
06:03
YGE Yingli Green Energy announces it has signed a sales agreement with IBC SOLAR AG (15.40 )
Co announces it has signed a sales agreement with IBC SOLAR AG. Under the terms of the agreement, Yingli Green Energy has agreed to supply 130 MW of PV modules to IBC SOLAR from the first quarter through the fourth quarter of 2010. Co also announces its in-house polysilicon manufacturing facility, Fine Silicon, has commenced trial production and reached certain key technology and operating milestones. Designed to have an annual production capacity of 3,000 MT, the Baoding-based facility is expected to reach full production volume in late 2010.
18:31
BEXP Brigham Exploration announces Williston 25-36 #1H Bakken well produces at initial rate of ~3,394 BOEPD (11.65 0.52)
Co announced that its operated Williston 25-36 #1H produced approximately 3,394 barrels of oil equivalent per day (2,769 Bopd and 3.75 MMcf/d) from the Bakken formation during an early 24 hour flow back period. The Williston was completed with 32 frac stages and represents Brigham's highest reported 24 hour flow back rate in the Williston Basin. Thus far, Brigham's nine long lateral high frac stage Bakken and Three Forks wells have averaged an early peak production rate of ~2,066 barrels of oil equivalent per day. Brigham maintains an approximate 35% working interest in the Williston, which is the fifth well completed under the drilling participation agreement with U.S. Energy Corp. (USEG). BrXP's 's interest in the Williston is anticipated to increase to X% upon payout of the first six wells in the drilling participation agreement.
18:23
XOM Exxon Mobil: Fitch reports that XOM's Ratings unaffected by announced XTO acquisition (69.69 -3.14) -Update-
Fitch Ratings anticipates that ExxonMobil (XOM) acquisition of XTO Energy (XTO) will not impact ExxonMobil's ratings. Under the terms of the deal, ExxonMobil will exchange 0.7098 shares per XTO share. The total transaction value is estimated at $41 billion and includes the expected assumption of approximately $10.4 billion in XTO debt by ExxonMobil. Closing is anticipated in the second quarter of 2010 and is subject to XTO shareholder approval and regulatory review.
18:18
WFC Wells Fargo lifts to $26.20 in extended hours after disclosing plans to repay TARP (25.49 +0.08) -Update- -Technical-
18:17
ARRY Array BioPharma and Amgen partner in Type 2 Diabetes (2.25 +0.26)
Co and Amgen (AMGN) today announced that they entered into an agreement granting Amgen exclusive worldwide rights to ARRY's small-molecule glucokinase activator program, including ARRY-403, currently being tested in a Phase 1 clinical trial in patients with Type 2 diabetes. Under the terms of the agreement, ARRY will receive an upfront payment of $60 mln and additional contingent payments for certain clinical and commercial milestones.
18:13
WFC Wells Fargo to repay entire $25 bln TARP investment; announces $10.4 bln common stock offering (25.49 +0.08) -Update-
Co announced that, pursuant to terms approved by U.S. banking regulators and the U.S. Treasury, it will redeem the $25 bln of series D preferred stock issued to the U.S. Treasury in October 2008 under the government's Troubled Asset Relief Program (TARP), upon successful completion of a $10.4 bln common stock offering. Under terms of the authorization from the U.S. Treasury and banking regulators to repay the $25 bln investment made under TARP, WFC will: Issue common stock with proceeds of $10.4 bln. Raise $1.35 bln through the issuance of common stock to WFC benefit plans and in lieu of a portion of 2009 incentive cash and other compensation to certain Wells Fargo team members. Increase equity by $1.5 bln through asset sales to be approved by the Board of Governors of the Federal Reserve. To the extent those asset sales are not completed by the end of 2010, the co agreed it would raise a commensurate amount of common equity. After the TARP repayment and these initiatives, the co's estimated Tier 1 common equity ratio would be 6.2%, pro forma based on the September 30, 2009 ratio of 5.2%. Repaying TARP will eliminate $1.25 bln in annual preferred stock dividends, and will be slightly accretive to earnings per share in 2010.
17:49
AFL AFLAC prices $400 mln of 30-year senior notes with a coupon of 6.9%; the notes will be issued at a price of 98.951 to yield 6.984% (47.14 +0.59)
17:25
VSEC VSE awarded $38 mln in prime and subcontracts to provide military operational readiness support (41.83 +0.31)
17:19
RA RailAmerica reports November 2009 monthly carloads (13.74 +0.12)
Co reported its freight carloads for the month ended November 30, 2009. Total carloads for November 2009 were 67,834, down 8.3% from 73,953 in November 2008. In the second quarter of 2009, the co restructured a customer contract, which resulted in the co recording the revenue derived from that contract as non-freight revenue instead of freight revenue and carloads. Excluding the effect of this contract, carloads were down ~2% for November 2009 compared to November 2008.
17:17
VLO Valero Renewables to purchase three ethanol plants (16.79 +0.18)
Valero Renewable Fuels Company, LLC, a wholly owned subsidiary of Valero Energy Corp (VLO), announced that it has signed an agreement with ASA Ethanol Holdings, LLC to buy two ethanol plants that had been previously owned by VeraSun Energy Corporation (OTC BB: VSUNQ). ASA Ethanol Holdings, LLC is a company owned by a former syndicate of lenders to the facilities, agented by West LB AG, which acquired the plants through the VeraSun bankruptcy auction. Valero will pay $200 mln to buy the plants. Additionally, Valero has received approval from a bankruptcy court to acquire Renew Energy's 110 mln gallon per year ethanol facility located near Jefferson, Wis. for $72 mln following a bankruptcy auction held Dec. 11. Together, Valero will buy the three plants for roughly 41% of their estimated replacement cost. These acquisitions expand the co's ethanol production capacity to 1.1 bln gallons per year.
16:42
LIMS Abbott to acquire STARLIMS Technologies; this transaction does not impact ABT's previously issued ongoing EPS guidance for 2009 (9.50 -0.30) -Update-
Co announced a definitive agreement to acquire STARLIMS Technologies (LIMS), a leading provider of laboratory information management systems, for ~$123 mln in cash. Under the terms of the agreement, ABT will acquire all outstanding equity of STARLIMS for $14 per share, for a total purchase price of ~$123 mln. STARLIMS currently has ~$18 mln in cash on hand. This transaction does not impact Abbott's previously issued ongoing EPS guidance for 2009 and is subject to customary closing conditions. ABT expects the transaction to close in Q1 of 2010.
16:40
PZZA Papa John's reaffirms 2009 EPS guidance in-line, sees 2010 EPS guidance in-line (21.65 -0.09)
Co reaffirms 2009 EPS of $1.42-1.46, excluding the impact of BIBP, vs. $1.47 First Call consensus, guides 2010 EPS in-line at $1.70-1.90, ex-items vs. $1.74 consensus. Co projected domestic system-wide comparable sales in 2010 from positive 1% to negative 1%. The 2010 guidance excludes the impact from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity, but including an allowance for some level of potential volatility in the average spot cheese price for the year. Co says, due to a change in the accounting requirements for variable interest entities, beginning in 2010 we will no longer consolidate the operating results of certain franchise restaurants. The consolidation of these franchise restaurants has not had any impact on our operating earnings; however, 2009 results will include ~$36 mln of revenues related to these restaurants. Excluding the unfavorable impact on revenues of the deconsolidation of these franchise restaurants, our consolidated revenues are expected to increase ~3-5% in 2010 compared to 2009, due to worldwide unit growth, increases in the royalty rate and anticipated commodity cost increases resulting in higher commissary sales prices."
16:36
PZZA reaffirms 2009 EPS of $1.42-1.46 vs. $1.47 consensus, guides 2010 EPS of $1.70-1.90 vs. $1.74 consensus
16:35
PZZA reaffirms 2009 EPS guidance in-line, sees 2010 EPS guidance in-line
16:32
ARDNA Arden Group, Inc. announces the appointment of Laura Neumann as CFO, effective Dec. 11, 2009 (92.31 +1.14)
16:31
AVT Avnet raises Q2 guidance (28.63 +0.24)
Due to stronger than expected quarter-to-date results, the Company now expects revenue at its Electronics Marketing (EM) Group to be in the range of $2.375 billion to $2.475 billion as compared with the prior range of $2.15 billion to $2.45 billion. As a result of the updated outlook at EM, co raised guidance for Q2 (Dec), sees EPS of $0.56-0.62, up from $0.52-0.60, vs. $0.56 First Call consensus; sees Q2 (Dec) revs of $4.325-4.725 bln, up from $4.1-4.7 bln, vs. $4.46 bln consensus.
16:26
CNIC Copernic agreed to short delay in closing of previously announced private placement of 500K common shares to 2208270 Ontario Limited (3.01 -0.12)
16:22
LIMS Starlims Tech trading halted - news pending (9.50 -0.30)
16:17
IHO Invitel Holdings A/S announces on behalf of its subsidiary approval to proposed waivers (5.30 +0.04)
Co announced, on behalf of its subsidiary Magyar Telecom B.V., that consents from holders of a majority in aggregate principal amount of the Issuer's outstanding EUR125,675,000 Floating Rate Senior Notes due 2013 have been received for certain proposed waivers and amendments to the Indenture. The purpose of the Proposed Amendments and Waivers is to amend the Indenture to permit Invitel and its subsidiaries to refinance certain of its indebtedness. The Proposed Waivers and Amendments are reflected in a Seventh Supplemental Indenture dated December 11, 2009, among, inter alios, the Issuer, the subsidiary guarantors party thereto and the Trustee.
16:16
NCIT NCI: Chief Operating Officer, William Parker, resigns from NCI (26.48 +0.62)
The co announces that William Parker resigned as Chief Operating Officer to pursue other opportunities. His resignation will be effective January 11, 2010.
16:16
ATAC ATC Tech announces the appointment of John Pinkerton as Vice President and CFO (23.90 +0.07)
16:15
WTSLA Wet Seal: Chairman Alan Siegel retires from the Board of Directors of The Wet Seal,; Harold Kahn succeeds Mr. Siegel as Chairman (3.47 +0.07)
16:11
RTI RTI Intl Metals announces indefinite idling of Mississippi Sponge project and signing of new long-term sponge supply contracts (22.21 +0.92)
Co announces that it has determined to indefinitely idle plans to construct a titanium sponge facility. In addition, RTI has also entered into two additional long-term titanium sponge supply agreements with Toho Titanium and OSAKA Titanium technologies. Co's decision to idle construction affects earlier plans to build a $300 million titanium sponge plant in Hamilton, Mississippi. As a result, RTI will incur asset impairment and related charges in the range of $65-75 million.
16:10
WFC Wells Fargo will combine its asset-based lending units (25.49 +0.08) -Update-
Co announced it will combine its asset-based lending units as Wells Fargo Capital Finance. The new organization will include the business units of Wachovia Capital Finance, Wells Fargo Business Credit, Wells Fargo Foothill, Wells Fargo Retail Finance, and Wells Fargo Trade Capital.
16:08
GY GenCorp announces $125 mln private offering of convertible subordinated debentures (8.42 -0.03)
16:06
BONDX Long Day unch 3.550%...euro 1.4651...yen 88.6057
The market had a long, quiet day with little to go off outside of working spreads, unwinding curve trades. The short end was dragging as the safe-haven buyers lightened up while the longer end spent the session with a bid as trade was able to regains some of the ground lost last week. The market is keeping the FOMC in focus with the general expectation being they will do nothing outside of adding a little happier talk to the economic situation, while promising to keep rates low for the foreseeable future. The meeting starts after the PPI hits, and continues following the November CPI, but inflation will likely be of small concern for the policy-posse for the moment. The bond market will be struggling with the next few weeks as many suspect that much of the year-end action has "been filled and no longer a big feature" of trade. This week has no big issuance with a $27B 1-yr offering tomorrow along with $28B 4-wks. The next run of longer issues hits at the end of the month, and with the holidays may see a little less enthusiasm versus previous offerings. The curve was spun flatter after trying for the historic, steeper levels seen mid-year. The 2-10-yr yield spread was back to 269.3 after a run at 275. The dollar was on offer as risk plays trickled in, but remains near recent highs back to the start of November. The euro was able to get some back, stalled in a range, but remains a good 0.9% off Friday levels while on the yen it was able to come back from 129.40, again, range bound, getting stalled near 129.80. The day ahead has the kick-off to the FOMC meeting, while data offers PPI and Empire Manufacturing (8:30), net TIC flows (9) and industrial production and capacity utilization (9:15).
16:06
ALXA Alexza Pharma announces submission of AZ-004 NDA (2.29 +0.04)
Co announces that it has submitted its New Drug Application for Staccato? loxapine to the FDA) AZ-004 is an inhalation product candidate being developed for the rapid treatment of agitation in patients with schizophrenia or bipolar disorder. The IND for Staccato loxapine was filed with the FDA in August 2005.
16:05
RMBS Rambus acquires patented innovations and technology from Global Lighting Technologies for $26 mln (21.53 +0.02)
Co announces that announced it has acquired technology and a portfolio of advanced lighting and optoelectronics patents from Global Lighting Technologies Inc. (GLT). These patented innovations, which include MicroLens light distribution technology, broaden Rambus' solutions for computing and consumer electronics. As part of this agreement, Rambus will pay GLT $26 mln. In addition, it is expected that twelve people will join Rambus from GLT including Jeff Parker, GLT's co-founder, former chief executive officer and principal inventor. Most of those joining from GLT will form a new Lighting Technology Division led by Mr. Parker.
16:05
JASO JA Solar expects Q4 2009 shipments to exceed prior guidance; issues FY10 shipment guidance (5.30 +0.73)
Co announces that based on current customer orders and product deliveries, it expects Q4 shipments to exceed the high-end of its prior guidance given on Nov 10, 2009. Co is raising its guidance for FY09, and issuing shipment guidance for the FY10. Based on strong customer demand for JA Solar's products, co currently expects shipments for Q4 to exceed 210MW, compared with prior guidance in the range 170MW to 200MW. For the full year 2009, the company expects shipments to exceed 488MW, compared with prior guidance in the range of 448MW to 478MW. For the FY10, co currently expects shipments to be in the range of 750MW to 800MW. "We continue to make progress in our global customer development, and are seeing strong demand for our high quality solar products from all major markets, including Germany, China, U.S., Italy, South Korea, Spain and France. We also expect strong growth from our newer markets, such as the Czech Republic and Japan," said Baofang Jin.
16:05
PAY Verifone beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY10 EPS in-line, revs in-line (15.00 +0.68)
Reports Q4 (Oct) earnings of $0.26 per share, $0.01 better than the First Call consensus of $0.25; revenues fell 11.0% year/year to $217.8 mln vs the $213.4 mln consensus. Co issues downside EPS guidance for Q1, sees EPS of $0.22-0.23, excluding non-recurring items, vs. $0.24 consensus; sees Q1 revs of $215-218 mln vs. $217.18 mln consensus. Co issues in-line guidance for FY10, sees EPS of $0.97-1.07, excluding non-recurring items, vs. $1.01 consensus; sees FY10 revs of $900-915 mln vs. $901.02 mln consensus. Co says, "We continue to see a recovery in all of our international markets and some signs of improvement in the domestic marketplace."
16:04
BKR Michael Baker unit has been awarded a five-year contract by the Pennsylvania Department of Transportation (40.48 -0.09)
Michael Baker Jr., an engineering unit of Michael Baker Corporation, has been awarded a five-year contract by the Pennsylvania Department of Transportation (PennDOT), Bureau of Public Transportation, for planning and oversight of public transportation projects in Pennsylvania. The contract will cover bus and rail projects throughout the Commonwealth, including enhanced transit studies, evaluating current transit programs, designing and managing transit facility construction, and other projects that will assist PennDOT in improving bus and rail transportation in Pennsylvania.
16:03
CNO Conseco announces a 45 mln share common stock offering (4.93 +0.17)
16:03
C Citigroup: Fitch upgrades Citigroup's individual & trust preferred ratings (3.70 -0.25) -Update-
Fitch Ratings has upgraded the Individual and Trust Preferred ratings of Citigroup and its subsidiaries and removed them from Rating Watch Positive. These rating actions follow the announcement of Citi's plan to repay trust preferred stock held by the U.S. government. Further, Citi will exit its loss sharing agreement with the U.S. government on a sizeable pool of loans and securities. The upgrade of the Individual rating incorporates Fitch's view that asset quality has a high probability of stabilizing in the near term. However, Citi's individual rating is still constrained by its relatively weak core earnings and comparatively large asset quality problems. The IDR affirmations are derived from Citi's continued systemic importance and U.S. government support and as such continue to carry a Stable Rating Outlook. Fitch has also affirmed Citi's long- and short-term deposits, long- and short-term debt and subordinated debt. The ratings of these debt instruments are linked to Citi's IDRs. A detailed ratings list follows at the end of this release.
16:03
ESC Emeritus Corp entered into an agreement with National Health Investors to lease eight senior living communities (17.82 +0.57)
Co announced that it has entered into an agreement with National Health Investors, Inc. (NHI) to lease eight senior living communities. The communities, located in Arizona, South Carolina, and Tennessee, consist of approximately 258 assisted living units, 66 memory care units, and 12 independent living cottages. The lease agreement, effective January 1, 2010, has an initial term of 15 years with two available extension options of five years each. The lease also contains a purchase option exercisable beginning in year 11 and extending through the initial lease termination date.
16:01
TCX Tucows commences dutch auction tender offer to repurchase up to 5 mln common shares (0.68 +0.03)
16:00
SUPR Superior Services builds equity capital (1.76 -0.05)
The co announces that it had completed an exchange of $69 million of its Preferred Stock held by the U. S. Treasury for an identical amount of Superior's newly issued Trust Preferred Securities. As a result of this exchange transaction, Superior will record an accounting gain of approximately $22.5 million after tax, reflecting the net benefit of the favorable interest rate terms of the newly issued Trust Preferred Securities compared to current market rates. On a pro forma basis, this accounting gain will increase Superior's tangible common equity by approximately $1.93 per common share outstanding to $15.22 per share as of September 30, 2009, and the Corporation's tangible common equity ratio will increase from 5.08% to 5.81%. Attached is a schedule reconciling the foregoing data to GAAP data.
16:00
Conferences and Shareholder/Analyst Meetings of Interest
Events of interest for tomorrow, Dec 15, include: ABC Analyst Meeting; ARG Analyst Meeting; BRCM Analyst Day; HANS Analyst Meeting; DAL Investor Day; GE Annual Outlook Investor Meeting, GNW Investor Day; GOOG Educational Webcast; HRC Investor Conference; ANX, CYTR at Lippert/Heilshorn & Associates Life Sciences On-line Forum; CTXS, LSI, DELL, MU at Raymond James IT Supply Chain Conference; GENZ, DNDN, HGSI, ACOR at Deutsche Bank Biotech CONFAB; MAIN at BB&T Capital Markets Private Finance One-on-One Conference; MFB at Credit Suisse Group New York Retail Roundup. Fed: FOMC Meets. Treasury: $27 bln 1-yr Treasury Bill Auction
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