|March 1, 2013|
|13:06 EDT||GRPN||Groupon March volatility at nine-month lows after CEO Mason departs |
Groupon April call option implied volatility is at 61, July is at 64; below its 26-week average of 74 according to Track Data, suggesting decreasing price movement into the company replacing CEO Andrew Mason.
News For GRPN From The Last 14 Days
|September 30, 2015|
|09:21 EDT||GRPN||OrderUp updates iPhone app to include Apple Pay|
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|September 25, 2015|
|16:35 EDT||GRPN||Stocks end week lower as biotechs sink, Volkswagen crashes|
Stocks ended the week lower after concerns about drug prices were reignited, sinking biotech stocks, an emissions scandal engulfed Volkswagen (VLKAY), dragging down shares of automakers and their suppliers, and Caterpillar (CAT) announced that it may eliminate as many as 10,000 jobs in the next three years as commodity prices continue to slump. MACRO NEWS: Following the Federal Reserve's decision last week to wait before raising rates, the central bank made a concerted effort to give the market more clarity this week. Over last weekend, three Federal Reserve officials - San Francisco Fed President John Williams, St. Louis Fed President James Bullard and Richmond Fed President Jeffrey Lacker - all argued that an interest-rate increase is still warranted this year. Then, on Thursday night, Fed Chair Janet Yellen said during a speech at UMass Amherst that the central bank remains inclined to hike rates this year. Yellen's remarks were incrementally hawkish, but welcomed by the market, since they helped clarify the message the Fed delivered a week ago... In the U.S., Markit's flash manufacturing purchasing manager's index was flat at 53.0 in September, which was slightly better than the expectation for it to dip to 52.8. Durable goods orders for August declined 2.0%, versus expectations for a drop of 2.3%. When transportation items were removed, the core reading was breakeven, versus expectations for a rise of 0.1%. The third estimate of second quarter GDP showed the economy grew 3.9% quarter-over-quarter, versus expectations for the GDP growth estimate to stay at 3.7%. Personal consumption in Q2 is now believed to have grown 3.6%, up from the prior estimate of 3.1%. The final University of Michigan consumer sentiment reading for September came in at 87.2, which was down from August's 91.9 but above the expected 86.2 reading... The Asian Development Bank cut its growth forecast for the region, citing a weaker outlook for China and India and a delayed recovery in the world's advanced economies. The bank now sees the Chinese economy growing 6.8% this year and 6.7% next year, down from its previous forecasts of 7.2% and 7%, respectively. Markit's flash manufacturing PMI for China fell to 47.0 in September from 47.3 last month. Meanwhile, Japanese Prime Minister Shinzo Abe unveiled new economic targets, including a goal for a 20% increase in the target size of the Japanese economy to 600T yen, though he gave no timeframe for achieving this aspiration... In Europe, Markit's composite PMI for the eurozone came in at 53.9 in the first look for September, down from 54.3 in August and below expectations for a reading of 54.1. COMPANY NEWS: Biotech stocks declined after privately-held Turing Pharmaceuticals made headlines by enacting a 5,000% price increase on its treatment for toxoplasmosis, reigniting a debate around drug prices that previously embroiled costly Hepatitis C drugs including AbbVie's (ABBV) Viekira Pak and Gilead's (GILD) Sovaldi and Harvoni. Presidential candidate Hillary Clinton sent the debate to center stage by criticizing the "outrageous" prices of specialty drugs and laying out a plan to tackle "price gouging" in the specialty drug market. The NASDAQ Biotechnology index fell roughly xxx% for the week amid the attention paid to Turing's drug and Clinton's response... Volkswagen (VLKAY) shares trading in New York fell sharply to begin the week and ended the week far from where they'd been last Friday before the EPA said it found manipulations that violate U.S. environmental standards while testing certain of the automaker's diesel cars. The EPA said Volkswagen may face civil penalties of $37,500 for each vehicle not in compliance with federal clean air rules, which could total as much as $18B, according to Reuters. In the wake of the scandal, Chief Executive Officer Martin Winterkorn resigned, with the company's supervisory board subsequently praising the decision and selecting Matthias Mueller, the former head of Porsche (POAHY), as Winterkorn's successor as the company's new CEO... Caterpillar (CAT) shares dropped after the heavy machinery maker announced plans for job cuts and lowered its revenue guidance for this year and next. Caterpillar said that it would lay off 4,000-5,000 of its employees between now and the end of 2016 and could lay off up to 10,000 employees by 2018. Caterpillar cut its fiscal year 2015 revenue forecast by $1B and said its sees its fiscal year 2016 revenue to be 5% below this year, adding that it expects revenue declines in all three large segments next year... Online and mobile deal provider Groupon (GRPN) said it plans to cut 1,100 jobs relating primarily to the company's international operations... Nike jumped after the athletic gear giant reported better than expected earnings and futures orders, prompting numerous price target hikes and at least one upgrade at Street research firms. Among other companies reporting earnings this week, BlackBerry (BBRY), ConAgra (CAG), Carnival (CCL), and CarMax (KMX) fell immediately following their quarterly reports... Apple (AAPL), which has previously been reported to be working on an electric car via its "Project Titan," is speeding up those efforts and setting 2019 as a target to ship its first vehicle, according to The Wall Street Journal... Against the backdrop of China's President Xi Jinping visiting the U.S., Boeing (BA) announced deals to sell 300 planes to three Chinese companies and set up an aircraft factory in in the Asian nation, while Cisco (CSCO) announced a partnership with Chinese server maker Inspur Group... Lloyd Blankfein, Goldman Sachs (GS) Chairman and CEO, disclosed that he was diagnosed with lymphoma. "Fortunately, my form of lymphoma is highly curable and my doctors' and my own expectation is that I will be cured," Blankfein stated in an open letter that was shared by the bank... GoPro (GPRO) finished the week about xxx% lower after Barron's contended in a feature article last weekend that the company's stock could plunge another 30% to $25 as Apple, Sony (SNE) and others pressure the company's "one-hit wonder" products... On the M&A front, Atmel (ATML) agreed to be acquired by German chipmaker Dialog Semiconductor in a deal valued at roughly $4.6B and Starwood Waypoint (SWAY) announced a stock-for-stock merger agreement with Colony American Homes. INDEXES: The Dow lost about 0.43% to close at 16,314.67, the S&P 500 fell about 1.35% to close at 1,931.34, and the Nasdaq declined about 2.89% to close at 4,686.50.
|September 23, 2015|
|07:54 EDT||GRPN||Groupon restructuring a sign of maturation, says Brean Capital|
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|September 22, 2015|
|16:36 EDT||GRPN||On The Fly: Top stock stories for Tuesday|
Stocks on Wall Street began the session sharply lower and remained that way throughout the session. There was little in the way of buying as each of the major equity indexes slid over 1% and the market internals were decidedly negative. The auto industry and biotech sector were both notably weak, after the French government called for an investigation into the entire auto industry in the wake of the Volkswagen (VLKAY) emissions scandal and Democratic Presidential hopeful Hillary Clinton presented a plan to limit the cost of drugs for consumers. ECONOMIC EVENTS: In the U.S., the FHFA home price index rose 0.6% to 224.5 in July, which was better than the 0.4% rise that was expected. The Richmond Fed factory index fell to -5 in September, versus the reading of 2 that was expected. In Asia, the Asian Development Bank cut its growth forecast for the region, citing a weaker outlook for China and India and a delayed recovery in the world's advanced economies. The bank now sees the Chinese economy growing 6.8% this year and 6.7% next year, down from its previous forecasts of 7.2% and 7%, respectively. COMPANY NEWS: Lloyd Blankfein, Goldman Sachs (GS) Chairman and CEO, disclosed that he was diagnosed with lymphoma. "Fortunately, my form of lymphoma is highly curable and my doctors' and my own expectation is that I will be cured," Blankfein stated in an open letter that was shared by the bank... Bank of America (BAC) shareholders approved a proposal to ratify the 2014 amendments to the company's bylaws that permitted the board of directors to determine its leadership structure, meaning Brian Moynihan can retain his dual role as both Chairman and CEO... Shares of several fertilizer companies slid after Mosaic (MOS) announced it will reduce its potash production in response to current crop nutrient market conditions, primarily related to delayed fertilizer purchases in Brazil and North America. Shares of Mosaic finished the day down 7% at $33.87 following last night's announcement, while Potash (POT) fell 6.5% and Agrium (AGU) dropped 3.5%. MAJOR MOVERS: Among the notable gainers was Ashland (ASH), which advanced $2.78, or 2.6%, to $108.50 after announcing it will proceed with a plan to separate into two independent, publicly traded companies. Also higher was Weatherford (WFT), which gained 90c, or 10.7%, to $9.31 after cancelling plans for a public share offering, after which research firms Jefferies and Iberia both reiterated Buy-equivalent ratings on the stock. Among the noteworthy losers were Office Depot (ODP) and Staples (SPLS), which declined a respective 4% and 5.8% after the New York Post quoted a source as saying the FTC may move to block their merger plan. Also lower was Groupon (GRPN), which slipped 2.2% to $4.08 after announcing plans to cut 1,100 jobs related primarily to its international operations. ConAgra (CAG), Carnival (CCL), and CarMax (KMX) fell 7%, 5.5%, and 4.65%, respectively, following their quarterly earnings reports. INDEXES: The Dow fell 179.72, or 1.09%, to 16,330.47, the Nasdaq lost 72.23, or 1.5%, to 4,756.72, and the S&P 500 dropped 24.23, or 1.23%, to 1,942.74.
|12:14 EDT||GRPN||On The Fly: Top stock stories at midday|
Stocks began the session deep in negative territory and have remained there throughout the morning. There has been little in the way of buying as the downward pressure in the market has not shown any sign of letting up. There is also little in the way of explanation as to why the market is so weak other than continued disappointment in the Fed's interest rate decision and the ongoing concern over China's economic growth. ECONOMIC EVENTS: In the U.S., the FHFA home price index rose 0.6% to 224.5 in July, which was better than the 0.4% rise that was expected. The Richmond Fed factory index fell to -5 in September, versus the reading of 2 that was expected. COMPANY NEWS: Shares of Groupon (GRPN) slumped 2.5% after the online and mobile deal provider said it plans to cut more than 1,000 jobs relating primarily to the company's international operations. The news is the latest in a recent run of job cut announcements, after HP Enterprise said last week that it expects 25,000-30,000 people to leave the company and Johnson Controls (JCI) recently announced plans to reduce its global salaried workforce by as many as 3,000 people... Lloyd Blankfein, Goldman Sachs (GS) chairman and CEO, disclosed that he was told by doctors that he has lymphoma. "Fortunately, my form of lymphoma is highly curable and my doctors' and my own expectation is that I will be cured," Blankfein stated in an open letter that was shared by the bank. MAJOR MOVERS: Among the notable gainers was Weatherford (WFT), which rose 9.6% after stating that it has decided not to pursue its previously announced concurrent public offerings of ordinary shares of the company and mandatorily exchangeable subordinated notes. Also higher was Vascular Biogenics (VBLT), which gained 15% to around $9.30 per share after the stock was initiated with a Buy rating and $25 price target at Chardan. Among the noteworthy losers following their earnings reports were ConAgra (CAG) and Carnival (CCL), which each fell more than 5%, and Red Hat (RHT), which slid 2%. Also lower were shares of Staples (SPLS) and Office Depot (ODP), which fell 7% and 8%, respectively, after the New York Post said a top FTC regulator may be leaning toward recommending against approving their merger agreement. INDEXES: Near midday, the Dow was down 263.77, or 1.6%, to 16,246.42, the Nasdaq was down 99.52, or 2.06%, to 4,729.44, and the S&P 500 was down 32.51, or 1.65%, to 1,934.46.
|11:06 EDT||GRPN||Groupon slumps after announcing plans to cut jobs, exit markets|
Shares of Groupon (GRPN) are slumping in morning trading after the company said it plans to cut more than 1,000 jobs relating primarily to the company's international operations. WHAT'S NEW: Groupon said this morning in a regulatory filing that its board approved a restructuring program under which it will cut 1,100 jobs and take a pre-tax charge of $35M. Of the pre-tax charges, Groupon said it will record $22M-$24M in the third quarter of 2015. The restructuring actions are expected to be complete by September 2016, the company said, adding that "substantially all of the pre-tax charges are expected to be paid in cash and will relate to employee severance and compensation benefits." Cost savings from the cuts will be reinvested in the business, Groupon said. WHAT'S NOTABLE: As part of the restructuring, Groupon will cease operations in several international markets: Morocco, Taiwan, Thailand, Panama, The Philippines, Puerto Rico and Uruguay. The closures come on top of recent exits in Turkey and Greece, as well as a sale of part of its stake in Groupon India to Sequoia. Rich Williams, the company's chief operating officer and president of North America, commented in a blog post that the 1,100 jobs that will be eliminated "over the next several months" will mostly come from the Deal Factory and Customer Service units. "We believe that in order for our geographic footprint to be an even bigger advantage, we need to focus our energy and dollars on fewer countries," Williams explained, adding that "just as our business has evolved from a largely hand-managed daily deal site to a true ecommerce technology platform, our operational model has to evolve." Williams also said that "in order for our geographic footprint to be an even bigger advantage, we need to focus our energy and dollars on fewer countries," and the countries it is exiting are "where the required investment and market potential don't align." PRICE ACTION: Groupon is down 1.7% to $4.10 in morning trading. Shares are down over 50% year-to-date.
|09:20 EDT||GRPN||On The Fly: Pre-market Movers|
HIGHER: Ashland (ASH), up 4% after announcing that its board has approved proceeding with a plan to separate Ashland into two independent, publicly traded companies: the new Ashland, a provider of specialty chemical solutions, and Valvoline, which will focus on building the world's leading engine and automotive maintenance business... Solera Holdings (SLH), up 3% after Bloomberg reported that IHS (IHS) is considering besting Vista Equity Partners' $55.85 per share offer for Solera. Shares of IHS are up xxx% following the report... Weatherford (WFT), up 11% after stating that it has decided not to pursue its previously announced concurrent public offerings of ordinary shares of the company and mandatorily exchangeable subordinated notes. DOWN AFTER EARNINGS: Carnival (CCL), down 3.7%. ALSO LOWER: Groupon (GRPN), down 0.7% after announcing plans to cut 1,100 jobs relating primarily to the company's international operations... New Mountain Finance (NMFC), down 4% after its 5M share spot secondary priced at $14.14 per share... Memorial Resource Development (MRD), down 4% after announcing it acquired additional acreage in North Louisiana and pricing its 12M share spot secondary at $17.60 per share.
|09:02 EDT||GRPN||Groupon volatility flat into announcing restructuring, plans to cut 1,100 jobs|
Groupon September weekly call option implied volatility is at 51, October is at 48; compared to its 52-week range of 33 to 83, suggesting non-directional price movement into announcing a restructuring, plans to cut 1,100 jobs, sees pretax charges up to $35M.
|08:54 EDT||GRPN||Groupon to cut 1,100 jobs, sees pretax charges up to $35M|
In a regulatory filing, Groupon disclosed that its board of directors approved restructuring actions relating primarily to the company's international operations. These actions are expected to involve an overall reduction of approximately 1,100 positions globally and be substantially complete by September 2016. In connection with these actions, the company expects to record total pre-tax charges of up to $35M, including approximately $22M-$24M in the third quarter of 2015. Substantially all of the pre-tax charges are expected to be paid in cash and will relate to employee severance and compensation benefits, with an immaterial amount of the charges relating to asset impairments and other exit costs. The company intends to exclude the restructuring charges from its non-GAAP financial metrics, including Adjusted EBITDA and non-GAAP EPS. In addition, the company expects that any cost savings from the restructuring actions will be immaterial in 2015. Cost savings in subsequent years are expected to be primarily reinvested in the business.