|February 28, 2013|
|12:30 EDT||BKS, BSFT, JCP, MNST, GRPN, PANL, SHLD||On The Fly: Midday Wrap|
Stocks on Wall Street were slightly higher at midday despite a weaker than expected estimate on gross domestic product growth. The futures had little reaction to the pre-market economic reports, which included the GDP revision along with personal consumption data and weekly jobless claims figures. The opening losses were minimal and barely lasted, as the market quickly reversed and moved into positive territory. The better than expected Chicago Purchasing Managerís Index also had little effect, as the averages have remained in a narrow trading range though mostly higher since the open... ECONOMIC EVENTS: In the U.S., the estimate of fourth quarter economic growth was revised up from an annualized fall of 0.1% to a rise of 0.1%, though the increase was much smaller than the bump up to 0.5% growth that analysts had forecast. Personal consumption rose in the quarter by 2.1%, versus the expected increase of 2.3%. Initial jobless claims fell 22K to 344K in the final week of February, better than the expected decline to 360K. The Chicago PMI Business Barometer Index for February rose to 56.8, versus consensus calls for a 55.0 reading. In Asia stocks were broadly higher, particularly in Japan, after the Japanese government formally nominated Haruhiko Kuroda, an advocate of aggressive policy action, as the Governor of its central bank... COMPANY NEWS: A number of well known retailers saw their stocks decline following their earnings reports, headlined by J.C. Penney (JCP). The company reported a much wider than expected quarterly loss and said its same-store sales plunged 31.7% during the holiday quarter. Shares declined over 15% following the report. Another embattled department store, Sears (SHLD), saw its shares fall more than 5% after its own report... MAJOR MOVERS: Among the notable gainers following their earnings reports were Universal Display (PANL), which jumped 13%, Barnes & Noble (BKS), which rose over 7%, and Monster Beverage (MNST), which advanced nearly 6%. Among the noteworthy losers was Groupon (GRPN), which plummeted more than 19% after it unexpectedly reported a quarterly loss, guided to much worse than expected sales in the coming quarter and the stock was downgraded by at least three firms. Also sharply lower were shares of BroadSoft (BSFT), which dropped 28% after its stock was similarly downgraded by at least three firms following disappointing results and guidance... INDICES: Near noon, the Dow was up 6.32, or 0.04%, to 14,081.69; the Nasdaq was up 6.68, or 0.21%, to 3,168.94; and the S&P 500 was up 1.97, or 0.13%, to 1,517.96.
News For JCP;SHLD;GRPN;BSFT;PANL;MNST;BKS From The Last 14 Days
|September 4, 2015|
|18:02 EDT||SHLD||Sears enters plan protection arrangement with PBGC |
Sears announced that it has been in discussions with the Pension Benefit Guaranty Corporation with respect to the company's rights offering and sale-leaseback transaction with Seritage Growth Properties, a recently formed, independent publicly traded real estate investment trust, which closed on July 7, and the company has entered into a binding term sheet for a five-year agreement with PBGC, subject to entry into definitive documentation in the next 60 days. Pursuant to the Agreement, the company will continue to protect, or "ring-fence," pursuant to customary covenants, the assets of certain special purpose subsidiaries holding real estate and/or intellectual property assets. Under the definitive documentation, the Relevant Subsidiaries will grant PBGC a springing lien on the ring-fenced assets, which lien would be triggered only by (a) failure to make required contributions to the company's pension plan, (b) prohibited transfers of ownership interests in the Relevant Subsidiaries, (c) termination events with respect to the Plan, and (d) bankruptcy events with respect to the company or certain of its material subsidiaries. The company will continue to make required contributions to the Plan, the scheduled amounts of which are not affected by the Agreement. The company has consistently managed its business such that it is able to meet its obligations to the Plan despite the historically unprecedented low interest rate environment. Although the company believes that no basis exists under ERISA for an involuntary or distress termination of the Plan, PBGC has further agreed to forbear from initiating an involuntary termination of the Plan, except upon the occurrence of specified conditions.
|05:50 EDT||JCP||J.C. Penney implied volatility of 46 at lower end of index mean range|
|September 3, 2015|
|08:33 EDT||BKS||Barnes & Noble, Samsung unveil Samsung Galaxy Tab S2 NOOK|
Barnes & Noble (BKS) in conjunction with Samsung (SSNLF) Electronics America, announced the new Samsung Galaxy Tab S2 NOOK, an 8-inch tablet blending Samsung's elegant design and multi-tasking power with NOOK's unparalleled reading and entertainment experience. The new flagship in Samsung's line of tablets, the co-branded Galaxy Tab S2 NOOK is the thinnest, lightest, ultra-fast device from the two companies. It is now available in Barnes & Noble stores for $399.99.
|07:39 EDT||BKS||Barnes & Noble September volatility elevated into Q1 and outlook |
Barnes & Noble September call option implied volatility is at 56, October is at 47; compared to its 52-week range of 28 to 64, suggesting large near term price movement into the expected release of Q1 results on September 10.
|September 1, 2015|
|17:41 EDT||SHLD||Kmart pays $1.4M to settle claims of illegal Medicare inducements|
The Department of Justice announced that Kmart, a subsidiary of Sears Holdings, has paid the United States $1.4M to resolve allegations that it violated the false claims act by using drug manufacturer coupons and gasoline discounts as improper Medicare beneficiary inducements. "The United States will continue to pursue retail pharmacies that improperly attempt to influence a beneficiary's choice of pharmacy," said the Justice Department's Civil Division chief Benjamin Mizer. The government alleged that from June 2011 to June 2014, Kmart knowingly and improperly influenced the decisions of Medicare beneficiaries to bring their prescriptions to Kmart pharmacies by permitting them to use drug manufacturer coupons to reduce prescription co-pays that they otherwise would be obligated to pay. The government also alleged that Kmart's conduct caused the Medicare beneficiaries to seek expensive, brand name drugs in lieu of cheaper generic drugs. The government additionally claimed that Kmart improperly encouraged Medicare beneficiaries to bring their prescriptions to Kmart pharmacies by offering them varying levels of discounts on the purchase of gasoline based on the number of prescriptions filled at Kmart pharmacies. "The claims settled by today's agreement are allegations only and there has been no determination of liability," cautioned the Department. Reference Link
|10:59 EDT||JCP||Stocks with call strike movement; JCP HAL|
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|10:56 EDT||GRPN||RBC Capital to hold a bus tour|
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|August 31, 2015|
|10:48 EDT||JCP||J.C. Penney rises after analyst upgrades stock, calls company 'self-help story'|
Shares of retailer J.C. Penney (JCP) saw a boost in morning trading after an analyst from Deutsche Bank upgraded his rating on the company's shares, remarking on the company as a "self-help story." WHAT'S NEW: Deutsche Bank analyst Paul Trussell this morning upgraded J.C. Penney to Buy from Hold. Trussell also upgraded his price target to $12 from $10, noting that the company has already improved its merchandise mix and is now moving toward better pricing and fewer markdowns. Trussell said that the company's target of mid-single digit same-store sales growth looks "achievable" and its brands and assortment "look right." The analyst added that Marvin Ellison, the company's chief executive officer, is "driving the next step" to "bring JCP up the curve in pricing and markdown optimization, supply chain, leveraging IT and reducing corporate redundancies." Trussell, who also said he views the company as a "self-help story with multiple levers to pull," maintained "slightly" conservative estimates given the challenging competitive environment, but sees meaningful upside to the stock. WHAT'S NOTABLE: Other analysts have been relatively bullish on J.C. Penney shares in recent weeks after the company reported better than expected results for the second quarter on August 14. At that time, J.C. Penney reported a loss per share of 45c on revenue of $2.88B and said it expects to be free cash flow breakeven in fiscal year 2015. Additionally, the retailer backed its FY15 SSS view of up 4%-5% and said on its earnings conference call that it expects third quarter SSS to grow sequentially from Q2. J.C. Penney also expressed "confidence" in its ability to meet its $1.2B EBITDA target by 2017. On August 17, Piper Jaffray analyst Neely Tamminga raised her price on the company's shares to $17 from $15. Tamminga said that the company showed the ability for the second straight quarter to reach EBITDA targets regardless of top-line performance. The Piper analyst said she continues to rate the company a top pick for 2015. The same day, B. Riley analyst Jeff Van Sinderen initiated coverage of J.C. Penney with a Buy rating and a $12.50 price target, saying he views Penney as a "speculative turnaround" story and believes the company's "substantial" real estate assets partially offset its heavy debt load. The Fly notes that CEO Marvin Ellison will be speaking at Goldman Sachs 22nd Annual Global Retailing Conference on September 9. PRICE ACTION: J.C. Penney shares are up 3.24% to $9.23 in morning trading.
|10:01 EDT||JCP||On The Fly: Analyst Upgrade Summary|
Today's noteworthy upgrades include: 58.com (WUBA) upgraded to Overweight from Underweight at Morgan Stanley... AU Optronics (AUO) upgraded to Outperform from Underperform at Bernstein... Asbury Automotive (ABG) upgraded to Neutral from Underperform at Buckingham... Astec (ASTE) upgraded on upcoming catalysts at Stifel... Baidu (BIDU) upgraded to Buy from Hold at Jefferies... Bob Evans (BOBE) upgraded to Sector Weight from Underweight at KeyBanc... CNOOC (CEO) upgraded to Buy from Neutral at BofA/Merrill... Dover (DOV) upgraded on valuation, headwinds bottom at Bernstein... Envestnet (ENV) upgraded to Outperform from Market Perform at Avondale... Generac (GNRC) upgraded to Outperform from Market Perform at William Blair... Gold Fields (GFI) upgraded to Sector Perform from Underperform at Scotia Howard Weil... Goldman Sachs (GS) upgraded to Buy from Hold at Evercore ISI... Intel (INTC) upgraded to Outperform from Market Perform at Northland... J.C. Penney (JCP) upgraded to Buy from Hold at Deutsche Bank... Leggett & Platt (LEG) upgraded to Outperform from Market Perform at Raymond James... Morgan Stanley (MS) upgraded to Buy from Hold at Evercore ISI... Newmont Mining (NEM) upgraded to Outperform from Sector Perform at Scotia Howard Weil... Pan American Silver (PAAS) upgraded to Outperform at Scotia Howard Weil... QLogic (QLGC) upgraded to Buy from Hold at Summit Research... Stanley Black & Decker (SWK) upgraded to Outperform from Neutral at Macquarie... Telefonica Brasil (VIV) upgraded to Overweight from Equal Weight at Morgan Stanley... Tenet (THC) upgraded to Outperform from Market Perform at BMO Capital... Twitter (TWTR) upgraded to Buy from Neutral at SunTrust... UIL Holdings (UIL) upgraded to Hold from Sell at Argus... Vocera (VCRA) upgraded to Outperform from Market Perform at Leerink... Wisconsin Energy (WEC) upgraded to Conviction Buy from Buy at Goldman.
|09:48 EDT||JCP||J.C. Penney tests recent range highs|
The shares are bucking the broader market trend and heading higher, last up over 1.8% to $9.10. The next level of major resistance would be at $9.42, a high that has not been met since April. Support is at $9.03. A breakout above $9.42 would break the stock out of a long base, which would be technically bullish for future price.
|09:24 EDT||JCP||On The Fly: Pre-market Movers |
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|09:09 EDT||SHLD||MP Associates to hold a conference|
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|08:59 EDT||PANL||Pangaea Logistics' MV Nordic Odin completes Panamex shipment|
Pangaea Logistics Solutions announced that the MV Nordic Odin, which is operated by its subsidiary Nordic Bulk Carriers A/S, completed the first Panamax shipment of iron ore from Baffin Island, Canada to Europe through the arctic ice. The MV Nordic Odin, one of the Company's joint ventured owned 1A ice-class Panamax vessels sailed from Milne Port on August 12, 2015 and arrived at Gijon, Spain on August 23. Shipments from the new iron ore mine on Baffin Island to Europe will provide significant summer employment for the Company's ice-class fleet over the coming years.
|06:54 EDT||JCP||J.C. Penney upgraded to Buy from Hold at Deutsche Bank|
Deutsche Bank analyst Paul Trussell upgraded J.C. Penney to Buy and raised his price target for shares to $12 from $10. The retailer closed Friday up 47c to $8.94. Penny's target of mid-single-digit same-store-sales growth looks achievable while the company's brands and assortment look right, Trussell tells investors in a research note. Further, new CEO Marvin Ellison is bringing Penny "up the curve" in pricing and markdown optimization while reducing corporate redundancies, the analyst writes. He views the company as a "self-help story with multiple levers to pull."
|August 28, 2015|
|06:03 EDT||JCP||J.C. Penney implied volatility of 48 at lower end of index mean range|
|August 25, 2015|
|06:18 EDT||SHLD||Sears names Lynn Pendergrass as Hardlines president|
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