|January 23, 2014|
|08:47 EDT||NFLX, LLY, FIATY, VLKAY, GOOG, GE, TSLA, EBAY, ARIA, NAV, SAN, AMZN||On the Fly: Periodicals Wrap|
WSJ: Some sellers say Amazon (AMZN) not doing enough to stop counterfeit goods...Online payments startup Stripe a threat to PayPal (EBAY)...Volkswagen (VLKAY) labor head dismisses U.S. strategy, growth targets...REUTERS: Santander (SAN) to increase U.S. business equity by about $2B...China's Wanxiang seeks Tesla (TSLA) relationship...BLOOMBERG: Fiat (FIATY) CEO to propose NYSE listing...Navistar (NAV) to explore potential sale of MWM engine business...GE (GE) unit to explore $1B sale of buyout fund stakes...OTHER NEWS: Eli Lilly (LLY) approached Ariad (ARIA) on deal, Daily Mail reports...Data shows successful Google (GOOG) 'PLAs' could hurt Amazon (AMZN), Business Insider reports...Netflix (NFLX) says not worried about net neutrality rules, Re/code reports.
News For AMZN;EBAY;VLKAY;SAN;TSLA;FIATY;NAV;GE;LLY;ARIA;GOOG;NFLX From The Last 14 Days
|September 25, 2015|
|11:58 EDT||NFLX||Stocks with call strike movement; TWTR NFLX|
Twitter (TWTR) January 32 call option implied volatility increased 2% to 53, Netflix (NFLX) January 115.7 call option implied volatility decreased 2% to 55 according to IVolatility.
|10:48 EDT||GOOG, NFLX||Morgan Stanley cautious on media, but sees several stocks punished too hard|
Morgan Stanley cut its price targets on a number of media companies, citing the impact of cord cutting and skinny bundles. The firm also reduced its outlook for the pay-TV sector due to its belief that the adoption of skinny bundles will accelerate, while the outlook for cable TV ads has deteriorated slightly, given macro pressures. The firm kept a Cautious view on the media sector, but also identified several stocks in the space that it thinks have been punished too harshly by investors recently. WHAT'S NEW: TV networks in general, and cable networks in particular, have the highest margins in media and are encountering increased top and bottom line competitive pressures, Morgan Stanley analyst Benjamin Swinburne believes. On the top line, they are being hit by ratings and ad pressures as well as cord cutting and distribution consolidation, the analyst stated. Meanwhile, their profit is being hurt by the increased need to obtain new content and intensified competition for content from new sources like Netflix (NFLX) and Google's (GOOG) YouTube, Swinburne said. However, the analyst thinks that media stocks are "starting to get" cheap, given the leverage that many of the companies carry. Swinburne cuts his price target on 21st Century Fox (FOXA) to $31 from $37, on AMC Networks (AMCX) to $86 from $88, on CBS (CBS) to $46 from $56, on Time Warner (TWX) to $72 from $87 and on Viacom (VIAB) to $48 from $60. He kept Overweight ratings on Fox, AMC and CBS, an Equal Weight rating on Time Warner and an Underweight rating on Viacom. OVERDONE DECLINES: Swinburne believes that the declines in three media stocks - CBS, 21st Century Fox, and AMC Networks - have been overdone, while the decline in Comcast's (CMCSA) stock has also been excessive. CBS and 21st Century Fox are "best positioned for the skinny bundle" and have the cheapest valuations relative to their growth rates, Swinburne believes. Meanwhile, AMC Networks has "content momentum" and its EPS can exceed expectations, the analyst believes. Comcast is gaining share in the broadband Internet market, could take share in video soon, and has sufficient scale and offerings to benefit from the increased popularity of skinny bundles, according to the analyst, who kept an Overweight rating on the stock. The media sector could benefit from consolidation going forward, added Swinburne, who recommended that investors interested in buying potential takeover targets in the space focus on AMC Networks, MSG Networks (MSG) and Dreamworks Animation (DWA). He kept Overweight ratings on all three of those stocks. OTHERS TO WATCH: Besides Comcast, other pay TV companies include DISH Network (DISH) and Charter Communications (CHTR). PRICE ACTION: In early trading, Fox A shares lost 0.5% to $25.83, AMC fell 0.3% to $73.29, CBS added 0.2% to $41, Time Warner was little changed at $67.66 and Comcast A shares added 0.6% to $57.17.
|10:26 EDT||GOOG||BlackBerry posts quarterly loss, says turnaround continuing|
BlackBerry (BBRY) shares are lower in morning trading after the company posted a second quarter loss that was steeper than analysts' expectations. BlackBerry is in the middle of a turnaround for its smartphone business and confirmed today that it plans to launch a new device that uses Google's (GOOG) Android operating system. EARNINGS: Excluding items, BlackBerry reported a loss per share for Q2 of (13c), below analysts' consensus estimates of (9c). Revenue for the quarter was $490M, reflecting a purchase accounting write down of deferred revenue associated with the acquisition of WatchDox. The revenue result may not compare with analysts' estimate of $611M. Looking ahead, BlackBerry said it is targeting "sustainable" non-GAAP profitability in the fourth quarter and sees "modest" sequential growth in total revenue for the rest of fiscal year 2016. The company sees a "slight" uptick in third quarter revenue compared to this quarter, and announced it will change its non-GAAP income statement presentation to be "consistent with the primary practice in the software industry." BlackBerry said it believes this is necessary due to its increased emphasis on software, as well as acquisitions of software companies with material recurring revenue streams. On the company's earnings conference call, John Chen, BlackBerry's chief executive officer, announced that the board approved an increase to the current buyback program by an additional 15M shares, bringing the total available for repurchase to 21M shares. The approval was based on expectations for continued free cash flow. Chen said that he believes the company has made "good progress" moving its software business from perpetual to subscription. Chen said he is "not satisfied" as far as overall revenue and profitability, particularly in its handset business, but said the company is focused on growing device volume profitably, generating recurring revenue from IP licensing and making its software business larger. WHAT'S NOTABLE: To help strengthen its device business, Chen confirmed BlackBerry will launch a new slider device powered by Google's Android operating system later this calendar year, to be called Priv. Chen also confirmed that the company will continue to develop and enhance the BlackBerry 10 operating system and confirmed plans to release platform updates focused on security and privacy enhancements. Chen said the company is working with Google to secure Android and is not using Samsung's (SSNLF) Knox. Chen said the company is not planning another BlackBerry 10 device this year and noted that if the plan of doing the Android type of implementation "works well," it could consider replacing BB10 or merging it into Android. PRICE ACTION: BlackBerry is down 2% to $6.89 in morning trading.
|10:00 EDT||NAV||On The Fly: Analyst Initiation Summary|
Today's noteworthy initiations include: AGCO (AGCO) initiated with an Equal Weight at Barclays... ARM Holdings (ARMH) initiated with a Buy at Stifel... Actuant (ATU) initiated with an Equal Weight at Barclays... Allison Transmission (ALSN) initiated with an Overweight at Barclays... Atara Biotherapeutics (ATRA) initiated with an Outperform at JMP Securities... Big Lots (BIG) initiated with a Buy at Citi... CNH Industrial (CNHI) initiated with an Underweight at Barclays... CareDx (CDNA) initiated with a Buy at Craig-Hallum... Caterpillar (CAT) initiated with an Equal Weight at Barclays... Cummins (CMI) initiated with an Underweight at Barclays... Deere (DE) initiated with an Underweight at Barclays... Genesis Energy (GEL) initiated with a Buy at Wunderlich... Joy Global (JOY) initiated with an Equal Weight at Barclays... Lincoln Electric (LECO) initiated with a Neutral at Baird... Manitowoc (MTW) initiated with an Equal Weight at Barclays... Navistar (NAV) initiated with an Underweight at Barclays... Nevro (NVRO) initiated with an Outperform at BMO Capital... PACCAR (PCAR) initiated with an Underweight at Barclays... PBF Energy (PBF) initiated with a Neutral at Goldman... PayPal (PYPL) initiated with a Buy at Canaccord... Quanex (NX) initiated with a Buy at Sidoti... Team Health (TMH) initiated with a Buy at Jefferies... Terex (TEX) initiated with an Equal Weight at Barclays... United Rentals (URI) initiated with an Overweight at Barclays... WABCO (WBC) initiated with an Equal Weight at Barclays.
|09:34 EDT||NFLX, TSLA||Active equity options trading on open|
Active equity options trading on open: AAPL BAC FB NKE NFLX PFE AU TSLA
|09:17 EDT||VLKAY||Auto suppliers decline on Volkswagen fears overdone, says Wells Fargo|
Wells Fargo says that a 10% decline in diesel's market share in Europe would only reduce the annual EPS of Tenneco (TEN0, BorgWarner (BWA) and Delphi (DLPH) by 1%-5%, while the stocks have fallen by a median of 10.2% since September 17. The firm does not expect Volkswagen (VLKAY) sales to drop tremendously. It views fears about BorgWarner and Tenneco as "way overdone," and says that Delphi's weakness is also unjustified.
|09:12 EDT||VLKAY||Bank of France removes Volkswagen securities from buy list, Bloomberg says|
The Bank of France has cut two notes secured by Volkswagen (VLKAY) auto loans from a list of asset-backed debt it's looking to buy, Bloomberg reports, citing two people familiar with the matter. The Volkswagen-related securities were not listed Friday after being included in the original list sent to investors earlier this week, the report says. One of the two bonds backed by Credit Agricole (CRARY) consumer loans was also cut, the report says. Reference Link
|08:50 EDT||GOOG||BlackBerry says working with Google on securing Android|
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|08:30 EDT||AMZN||Internap downgraded on earnings miss, negative outlook at Oppenheimer|
As noted earlier, Oppenheimer downgraded Internap (INAP) to Perform from Outperform. The firm downgraded the stock after the company significantly lowered its guidance. Oppenheimer says that Internap is not benefiting from strong demand for its prices, while Amazoin (AMZN) is poised to reduce its cloud prices significantly next month, hurting Internap in the process. The firm thinks that if Internap sells the company it will probably obtain less than $10 per share, making the stock's risk/reward unattractive at current levels.
|07:54 EDT||VLKAY||Volkswagen issues could lead to Magna buying opportunity, says Canaccord|
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|07:23 EDT||VLKAY||VW scandal to hit French car makers Peugeot, Renault, Bloomberg says|
Volkswagen's (VLKAY) diesel emissions scandal may accelerate the technology's decline in Europe, hitting competitors Peugeot (PUGOY) and Renault, Bloomberg reports. The French car maker rely on diesel-powered vehicles for approximately 60% of their sales in Europe, and with the fuel systems already hit due to pollution concerns, Volkswagen's scandal could cause the technology's market share to fall to as low as 35% of cars sold in 2022 from 53% last year, the report says, citing industry consultant LMC Automotive. Reference Link
|07:22 EDT||LLY||European Society for Medical Oncology to hold a conference|
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|07:04 EDT||GOOG||BlackBerry launches slider device Priv|
BlackBerry (BBRY) is announcing two new additions to its handheld device roadmap. First, the company will launch a flagship slider device, Priv, which will run on the Android (GOOG) operating system, bringing together the best of BlackBerry security and productivity with the expansive mobile application ecosystem available on the Android platform. In combination with BlackBerry's efforts to support Android for Work on the BES12 platform, the new device will offer best in class security for enterprise customers. BlackBerry expects the device to be available late in the calendar year in major markets in-store and online, and will release further details in the coming weeks. While the new device will provide a choice in OS to new and existing customers, the company remains committed to the BlackBerry 10 operating system, which enables industry-leading security and productivity benefits. Second, the company will continue to develop and enhance the BlackBerry 10 operating system and is confirming plans to release platform updates focused on security and privacy enhancements, with version 10.3.3 scheduled to be available in March 2016.
|06:59 EDT||GOOG||Google to be investigated by U.S. regulators over Android, Bloomberg reports|
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|06:21 EDT||GOOG||Facebook's free internet effort in developing countries 'inadequate,' WSJ says|
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|06:16 EDT||GOOG||Google October volatility elevated |
Google September weekly call option implied volatility is at 23, October is at 37, November is at 30; compared to its 52-week range of 16 to 41, suggesting large October price movement.
|06:15 EDT||VLKAY||France's Macron: Don't overreact to Volkswagen scandal, The Times reports|
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|06:13 EDT||NFLX||Piper's Munster sees building virtual reality momentum for Facebook|
Piper Jaffray analyst Gene Munster says Facebook's (FB) virtual reality theme is building momentum after its Oculus unit announced a 50% price cut for its mobile VR solution headset to $99. Also announced was that the headset, named Gear VR, will work with five phones versus three in the past. A better virtual reality experience is now available to a larger market and the "critically important" content is growing, Munster tells investors in a research note. Oculus has partnerships with Netflix (NFLX), Hulu, Tivo (TIVO), Sega and Midway to bring their content into Gear VR, Munster points out. He expects Samsung to sell 5M-10M Oculus enabled Gear VR headsets next year, up from around 1M in 2015. Munster maintains an Overweight rating on Facebook with a $146 price target. The stock closed yesterday up 44c to $94.41.
|05:58 EDT||GOOG||Indian Prime Minister to meet with Apple, Google CEOs, WSJ reports|
Indian Prime Minister Narendra Modi will meet this weekend with Google (GOOG) CEO Sundar Pichai, Facebook (FB) founder Mark Zuckerberg and Apple (AAPL) CEO Tim Cook, among others, The Wall Street Journal reports. According to industry insiders, the tech executives will use the visit to push for better market access in India as well as clearer regulation on investment and startups. Reference Link
|05:51 EDT||NAV||Barclays starts U.S. Machinery space with Negative view|
Barclays analyst Robert Wertheimer rolled out coverage of the U.S. Machinery space with a Negative view. Of the fifteen companies he initiated in the sector, only two are Overweight rated. Wertheimer started five names at Underweight, his firm's equivalent of a sell. Consensus estimates are too high across the board with revenue for this cycle already peaking for most of machinery, the analyst told investors last night in a research note. He sees a sharper downturn for North American trucks than the consensus expects, with another peak level eight years away. And the tractor supercycle is only two years in a downturn, while the prior two supercycles saw seven consecutive down years in machinery sales, Wertheimer adds. Allison Transmission (ALSN) and United Rentals (URI) are the analyst's Overweight-rated stocks in the sector. Deere (DE), CNH Industrial (CNHI), Cummins (CMI), PACCAR (PCAR) and Navistar (NAV) are his Underweight rated names. Wertheimer also started with Equal Weight ratings shares of Actuant (ATU), AGCO (AGCO), Caterpillar (CAT), Joy Global (JOY), Lincoln Electric (LECO), Manitowoc (MTW), Terex (TEX) and WABCO (WBC).