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Stock Market & Financial Investment News

News Breaks
August 15, 2014
12:16 EDTMNST, KO, SODA, DPS, PEP, GMCRMonster surges as Coca-Cola takes 16.7% stake in company
Shares of beverage company Monster Beverage (MNST) are surging after Coca-Cola (KO) took a 16.7% stake in Monster and the companies announced a long-term strategic partnership and asset swap. WHAT'S NEW: Coca-Cola will pay $2.15B for a 16.7% stake in Monster Beverage Corp, the companies said. Under the terms of their agreement, Coca-Cola will add two directors to Monster's board. Coca-Cola will transfer ownership of its worldwide energy business including brands like NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless to Monster. Monster will transfer its non-energy business, which includes Hansenís Natural Sodas, Peace Tea, Hubertís Lemonade and Hansenís Juice Products to Coca-Cola. Coca-Cola will become Monster's preferred distribution partner globally, while Monster brands will be the only energy drinks distributed by Coca-Cola. At closing, Coke will make a net cash payment of $2.15B and transfer its worldwide energy business to Monster, and Monster will issue to Coke the shares of Monster common stock, transfer its non-energy business to Coke, and enter into expanded distribution arrangements. The transaction is expected to close late in 2014 or early in 2015. WHAT'S NOTABLE: On slides discussing the partnership, Monster said that it anticipates fiscal year 2013 pro forma operating income to be over $700M following the deal with Coke vs. $600M for "current Monster." Monster sees a pro forma second quarter cash balance of $2.6B vs. $0.8B for current Monster. ANALYST REACTION: Following the companies' announcement, Wells Fargo analyst Bonnie Herzog said she feels that the Coke/Monster deal is a good move for both firms. She expects the agreement to significantly quicken Monster's international division and believes that the company's market share could gross 4 to 5 times its current international sales within the next three years due to the deal. She feels that Coke gains increased access to the energy category. The firm maintains an Outperform rating on both the stocks. Stifel analyst Mark Astrachan perceives Monster's agreement with Coke as hugely positive since it builds international and U.S. revenue synergies while boosting EBITDA BY $95M next year. He keeps Monster's shares with a Buy rating and raises its price target to $94 from $75. CLSA upgraded Monster to Outperform from Underperform. PRICE ACTION: During afternoon, Monster is up $21.62 or 30.17% to $93.27 and Coca-Cola is up 58c or 1.46% to $40.76. OTHERS TO WATCH: Shares of SodaStream (SODA) are up relatively flat following the news. Dr. Pepper Snapple (DPS) is down 0.2% and PepsiCo (PEP) is down 0.25%. Shares of Keurig Green Mountain (GMCR) are down 1% since Coke took a 10% stake in the company on February 5.
News For MNST;KO;SODA;DPS;PEP;GMCR From The Last 14 Days
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October 8, 2014
13:24 EDTPEPPepsiCo October weekly 93 straddle priced for 2% move into Q3
09:05 EDTPEPLionsgate partners with Doritos, Mazda and Whole Foods Market for new film
Lionsgate (LGF) announced that PepsiCo's (PEP) Doritos, Mazda and Whole Foods Market's (WFM) Whole Planet Foundation will partner with the studio for the film The Hunger Games: Mockingjay Ė Part 1 which opens in theaters worldwide on November 21.
October 7, 2014
16:19 EDTSODAOn The Fly: Closing Wrap
Stocks on Wall Street opened in negative territory and remained there for the entire session. A weak industrial production report out of Germany and the IMF's lowering of its global growth forecast filled the news void left by another relatively light day on the domestic economic calendar. The volume was heavy and the selling was broad based, with each of the major equity indexes losing more than 1.5%. ECONOMIC EVENTS: In the U.S., the Job Openings and Labor Turnover Survey, or JOLTs report, showed job openings surged 230K to 4.835M in August, marking their highest level since January 2001. Consumer credit rose only $13.5B in August, missing expectations for an increase in credit of $20B. In Europe, German industrial production dropped 4% sequentially in August on an adjusted basis, which was a steeper slide than economists forecast and its biggest decline since January 2009. Also of note, the International Monetary Fund cut its global economic growth forecasts for the third time this year. The growth forecast for 2014 was trimmed to 3.3% from a July forecast of 3.4%, while the 2015 projection was lowered to 3.8% from 4.0% previously. COMPANY NEWS: AGCO (AGCO) fell $4.97, or 10.55%, to $42.13 after the company lowered its third quarter view and cut its fiscal year 2014 earnings per share outlook for a second time after previously lowering it in July. The stock, along with several others in the U.S. machinery industry, were downgraded today at Bank of America Merrill Lynch. Merrill also downgraded Deere (DE) to Underperform from Neutral this morning, citing the collapse in corn and soybean pricing and the strengthening U.S. dollar, and its shares also declined $2.83, or 3.42%, to $80.01. MAJOR MOVERS: Among the notable gainers was GT Advanced (GTAT), which rebounded 41c, or 51.25%, to $1.21 following its sharp, 93% decline yesterday after its unexpected bankruptcy filing. Today's recovery, however, still leaves the stock far below the $11 per share level where it began yesterday's trading session. Also higher was CalAmp (CAMP) which rose $3.47, or 21.03%, to $19.97 and was upgraded to Outperform at Macquarie after the wireless technology solutions maker's Q2 report. Among the noteworthy losers was SodaStream (SODA), which sunk $6.05, or 21.94%, to $21.52 after the home beverage carbonation system maker warned that revenue for its third quarter will come in well below Wall Street estimates. Also lower were shares of The Container Store Group (TCS), which dropped $5.45, or 24.9%, to $16.44 after the company lowered its fiscal 2014 outlook. The decline sent the stock below the $18.00 level, where its initial public offering priced last November. INDEXES: The Dow dropped 272.52, or 1.6%, to 16,719.39, the Nasdaq fell 69.60, or 1.56%, to 4,385.20, and the S&P 500 declined 29.73, or 1.51%, to 1,935.09.
14:52 EDTMNSTMonster Beverage sales up 17.6% for four week period, says Goldman
Goldman said Monster's energy drink sales grew 17.6% vs total energy drink sales growth of 12.9% for the same four weeks ending September 27, according to Nielsen data.
12:09 EDTGMCR, SODAOn The Fly: Midday Wrap
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11:55 EDTSODASodaStream downgraded to Neutral from Buy at Roth Capital
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10:56 EDTSODAOptions with increasing implied volatility
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10:16 EDTSODASodaStream plunges after warning of weaker sales, levels to watch
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10:08 EDTSODASodaStream sinks after Q3 profit warning
Shares of SodaStream International (SODA) are sinking this morning after the company warned that revenue for the third quarter of 2014 will come in well below Wall Street estimates. SodaStream develops, manufactures and markets home beverage carbonation systems and related products. WHAT'S NEW: This morning, SodaStream reported preliminary Q3 revenue of $125M, significantly missing analysts' consensus estimate of about $154M. The company said it expects operating income of about $8.5M for the quarter. Chief Executive Officer Daniel Birnbaum cited an underperformance in the U.S. market as the primary driver of the quarterly shortfall, and said the results are an indication that the company must alter its course and improve its execution. Birnbaum said in a statement that the company is "very disappointed" by its recent performance, noting that it has "not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved." Birnbaum said the company has started a strategic shift towards health and wellness, mostly in the U.S., where he believes the message "will resonate more strongly" with customers. In addition, SodaStream is developing a growth plan, and more details are expected when Q3 results are reported later this month. WHAT'S NOTABLE: The carbonated beverage machine company has been the subject of buyout rumors for months. In July, Bloomberg reported that the company was in talks to go private for around $40 per share. In September, Israel's TheMarker said SodaStream was in talks to sell itself to a British investment fund for $840M, or $40 per share. SodaStream has also been rumored as an acquisition target for beverage makers SABMiller (SBMRY) and Diageo (DEO) or private equity group KKR (KKR), The Independent reported last month. In July, SodaStream cut its fiscal year 2014 revenue growth view to 5% from 15% and cut its FY14 net income expectations to a 5% decrease from a 3% increase. At that time, the company said it believed sales trends for sodamakers would remain challenging in the U.S. in the second half of the year. PRICE ACTION: In mid-morning trading, SodaStream shares dropped $5.72, or 21%, to $21.85.
10:02 EDTGMCROn The Fly: Analyst Initiation Summary
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09:14 EDTSODAOn The Fly: Pre-market Movers
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08:08 EDTSODASodaStream down 13% in pre market trade after Q3 revenue warning
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07:56 EDTSODASodaStream trading to resume at 8:00 am ET
07:54 EDTSODASodaStream volatility expected to move on preliminary Q3 revenue miss
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07:32 EDTSODASodaStream CEO: We are disappointed in our recent performance
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07:31 EDTSODASodaStream reports Q3 preliminary revenue $125M, consensus $154.12M
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07:11 EDTSODASodaStream trading halted, pending news
05:25 EDTGMCRKeurig Green Mountain initiated with a Buy at Goldman
Goldman Sachs started shares of Keurig Green Mountain with a Buy rating saying the company is entering a period of accelerating sales and earnings growth. The firm expects growth to be driven by Keurig's Hot system and incremental contribution from the Cold platform. It set a $166 price target for shares.
October 6, 2014
17:58 EDTKOCoca-Cola announces preliminary approval of settlement agreement in Glaceau suit
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08:01 EDTGMCRKeurig Green Mountain announces multi-year agreement with W.B. Mason
Keurig Green Mountain and W.B. Mason Co announced a multi-year agreement to offer W.B. Masonís SHAZAM coffee in K-Cup packs for the Keurig hot brewing system in away from home channels. SHAZAM will be the first brand to come into the Keurig family from a Keurig Authorized Distributor. The companies plan to launch the new SHAZAM coffee K-Cup packs later in the month of October 2014 with Light, Medium, and Dark Roast blends exclusively to W.B. Mason customers.
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