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Stock Market & Financial Investment News

News Breaks
June 16, 2014
16:27 EDTBLUE, SNDK, COV, KPTI, FIO, DWA, MDTOn The Fly: Closing Wrap
Stocks on Wall Street were slightly higher as M&A news competed with Iraq for headlines. There was little reaction to the day’s economic data, including industrial production in May and the Empire State manufacturing report for June. The averages moved in a narrow range near the flat-line throughout the session, with each of the major averages managing to notch small gains. ECONOMIC EVENTS: In the U.S., industrial production increased 0.6% in May, versus an expected increase of 0.5%, while capacity utilization rose slightly to 79.1%. The NY Fed Empire state survey for June ticked up to a four-year high of 19.3, which was higher than expected. The NAHB homebuilder survey index climbed to 49 in June, beating expectations for it to rise from its previous reading of 45 to 47. COMPANY NEWS: A number of merger and acquisition deals were announced, headlined by a another pharmaceutical industry mega-merger. Medtronic (MDT) agreed to acquire Ireland's Covidien (COV) in a cash-and-stock transaction valued at $93.22 per Covidien share, or a total of approximately $42.9B based on Medtronic's closing stock price on June 13. Following the deal announcement, Covidien shares trading in New York rose $14.73, or 20.45%, to $86.75. Medtronic, which also raised its dividend by 9% this morning, was upgraded at both William Blair and JPMorgan, though its shares declined 67c, or 1.1%, to $60.03. MAJOR MOVERS: Among the notable gainers was Bluebird bio (BLUE), which surged $8.37, or 32.08%, to $34.46 after reporting data that Piper Jaffray believes solidifies LentiGlobin prospects in one indication and positions it attractively for another indication that is also being pursued for the drug. Also higher was Fusion-io (FIO), which jumped $2.08, or 22.41%, to $11.36, which was above the $11.25 per share in cash that SanDisk (SNDK) agreed to pay to acquire the company. Among the noteworthy losers was Karyopharm Therapeutics (KPTI), which fell $5.90, or 12.52%, to $41.22 after announcing that the FDA Center for Veterinary Medicine has found the effectiveness and safety technical sections complete to support conditional approval under a New Animal Drug Application for Karyopharm's compound Verdinexor for the treatment of canine lymphoma. As part of conditional marketing approval, the sponsor is required to conduct a full, often randomized, study, to confirm the activity of the conditionally approved agent within five years, Karyopharm noted. Also lower were shares of DreamWorks Animation (DWA), which dropped $3.00, or 10.97%, to $24.35 after its latest film, "How to Train Your Dragon 2," didn't do as well as analysts had expected in its box-office debut. INDEXES: The Dow was up 5.27, or 0.03%, to 16,781.01, the Nasdaq was up 10.45, or 0.24%, to 4,321.11, and the S&P 500 was up 1.62, or 0.08%, to 1,937.78.
News For COV;MDT;FIO;SNDK;DWA;KPTI;BLUE From The Last 14 Days
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January 21, 2015
17:27 EDTSNDKSanDisk sees Q1 revenue $1.4B-$1.45B, consensus $1.6B
Sees Q1 adjusted gross margin similar to Q4 at 45%.
17:21 EDTSNDKSanDisk saw faster 'demand reduction' for certain 'end of life' products in Q4
Comment made on Q4 earnings call.
17:18 EDTCOVEndo to replace Covidien in S&P 500 as of 1/26 close
16:31 EDTSNDKSanDisk up 1% after reporting Q4 results, share buyback expansion
16:09 EDTSNDKSanDisk expands stock repurchase program by $2.5B
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16:07 EDTSNDKSanDisk says Q4 results impacted primarily by supply constraints
“We delivered record revenue in 2014 with continued progress in shifting our portfolio towards high value solutions,” said Sanjay Mehrotra, president and chief executive officer of SanDisk. “Our SSD solutions reached 29 percent of revenue in 2014, with strong growth from both client and enterprise SSDs. We are disappointed with our fourth quarter results, which were impacted primarily by supply constraints. We believe that NAND flash industry fundamentals are healthy, and we expect our financial results to improve as we move through 2015.”
16:07 EDTSNDKSanDisk reports Q4 adjusted gross margin 45%
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16:06 EDTSNDKSanDisk reports Q4 EPS $1.30, consensus $1.27
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15:27 EDTCOVNotable companies reporting before tomorrow's open
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15:27 EDTSNDKNotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include American Express (AXP), consensus $1.38; Kinder Morgan (KMI), consensus 34c; eBay (EBAY), consensus 89c; Discover Financial Services (DFS), consensus $1.30; Crown Castle (CCI), consensus $1.05; Crown Castle (SNDK), consensus $1.27; Xilinx (XLNX), consensus 61c; F5 Networks (FFIV), consensus $1.49; United Rentals (URI), consensus $2.07; Plexus (PLXS), consensus 72c; Boston Private Financial Holdings (BPFH), consensus 22c; Dolby Laboratories (DLB), consensus 38c; SLM (SLM), consensus 5c; East West Bancorp (EWBC), consensus 65c; Raymond James Financial (RJF), consensus 86c; BancorpSouth (BXS), consensus 32c.
15:16 EDTSNDKSanDisk January weekly 79 straddle priced for 6% movement into Q4
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15:07 EDTSNDKEarnings Preview: Sandisk reports after cutting revenue forecast
SanDisk (SNDK) is expected to report fourth quarter earnings after the close on Wednesday, January 21, with a conference call scheduled for 5:00 pm ET. SanDisk manufactures data storage solutions, including removable and embedded Flash memory and solid-state drives. EXPECTATIONS: Analysts are looking for earnings per share of $1.27 on revenue of $1.73B. The consensus range is $1.15-$1.62 for EPS on revenue of $1.72B-$1.73B, according to First Call. On January 12, SanDisk cut its revenue outlook for Q4 to $1.73B from $1.8B-$1.85B. It added that non-GAAP gross margin for the quarter is expected to be approximately 45%, compared to the previously guided range of 47%-49%. "The lower revenue was primarily due to weaker than expected sales of retail and iNAND products," SanDisk explained. LAST QUARTER: On October 16, SanDisk reported third quarter adjusted earnings per share of $1.45 and revenue of $1.75B, compared to expectations of $1.33 and $1.77B, respectively. At that time, SanDisk president and CEO Sanjay Mehrotra said demand for NAND flash continued to be strong across mobile, client and enterprise. On its Q3 earnings call, SanDisk said it was on track for Fusion-io to add to earnings in the second half of fiscal 2015. STREET RESEARCH: On the day of SanDisk's revenue warning, Needham downgraded SanDisk to Hold from Buy, citing the gross margin decline in the company's negative Q4 pre-announcement. Summit Research also downgraded SanDisk to Hold that day, while SanDisk was downgraded to Hold from Buy at Drexel Hamilton the next day. Piper Jaffray, however, viewed SanDisk's lowered Q4 revenue outlook as a "near-term reset" and said it continues to expect "solid ongoing demand" for NAND into 2016. Piper says its long-term thesis on shares of SanDisk remains unchanged. It lowered its price target for shares to $105 and $106 and reiterated an Overweight rating on the stock. Yesterday, Nomura downgraded SanDisk to Reduce from Neutral to reflect worsening product mix as removables continue to decline. The firm, which lowered its price target on the stock to $65 from $70, also noted the company's tough embedded comps and low dividend yield. PRICE ACTION: Over the last three months, shares of SanDisk have declined about 9.5%. Since January 1, SanDisk shares are down about 18%. Ahead of tonight's report, SanDisk is up almost 2% to $80.23 in afternoon trading.
14:23 EDTSNDKSanDisk technical notes before earnings
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12:27 EDTBLUEbluebird bio price target raised to $146 from $94 at Wedbush
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January 20, 2015
13:21 EDTBLUECAR T-Cell therapy drug stocks down sharply following NY Times story
Shares of biotechnology companies that are developing chimeric antigen receptor T cells or CAR T therapy drugs are falling sharply after a New York Times story titled "Riding High, Biotech Firms Remain Wary." WHAT'S NEW: Over the weekend, the New York Times published the story that struck a cautionary tone on the CAR-T therapy drugs. In this form of cancer treatment the patients own immune system cells are genetically manipulated to battle tumors. The New York Times story noted that there were some notable outcomes in the treatment of leukemia and lymphoma with the CAR T treatments but highlighted that the "technique is still early in development and can cause severe side effects." WHAT'S NOTABLE. Early last week, Intrexon (XON) and its oncology partner, ZIOPHARM Oncology (ZIOP), announced an exclusive licensing agreement with The University of Texas MD Anderson Cancer Center, including an exclusive sub-licensing agreement through MD Anderson for intellectual property developed at the University of Minnesota for the development of non-viral adoptive cellular cancer immunotherapies. Both companies' shares were up sharply following the announcement ZIOPHARM was up around 55% and Intrexon up over 30% the day following the announcement. PRICE ACTION: Shares of drug companies in the space are sharply lower in midday trading, with ZIOPHARM Oncology and Kite Pharma (KITE) each down over 9%, Intrexon down almost 12%, and Bellicum Pharmaceutical (BLCM) and bluebird bio (BLUE) each down almost 5%. Reference Link
08:11 EDTKPTIKaryopharm weakness unjustified, says JMP Securities
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07:17 EDTSNDKSanDisk downgraded to Reduce from Neutral at Nomura
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06:06 EDTDWADreamWorks planning to lay off 'substantial' number of staff, LA Times reports
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January 16, 2015
16:36 EDTSNDKMarket finishes week lower on continued oil, global growth worries
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14:29 EDTSNDKSanDisk January weekly volatility elevated into Q4 and outlook
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