8:54 am On the Wires (:WIRES):
Avalon Rare Metals (
AVL) provided an update on its $750k pilot plant
program on its Separation Rapids Lithium Project located near
Kenora, Ontario. The 30 tonne bulk sample of crushed ore that was
shipped this summer has arrived at its destination in Germany and
process work is now underway
MedAssets (
MDAS) announced that Scripps Health, a non-profit
regional health system, has expanded its relationship with
MedAssets to include Invoice Management Services
Orbital ATK (
OA) announced that the company was awarded a $16
million contract with options for the first phase of development
for the 120mm Advanced Multi-Purpose, XM1147 High Explosive
Multi-Purpose with Tracer cartridge
CoLucid Pharmaceuticals (
CLCD) announced that the first patient has been
randomized in the Company's Gladiator study, a Phase 3 long-term,
open-label trial of lasmiditan. The objective is to evaluate the
safety and efficacy of lasmiditan, as well as resource utilization,
functional outcomes and disability
Hansen Medical (
HNSN) announced the shipment of the first Magellan
Mobility Package for the Magellan Robotic System, to the Miami
Cardiac & Vascular Institute in Miami, FL
In collaboration with physicians at 43 US hospitals,
AstraZeneca (
AZN) presented results from an ongoing
observational study, Sentinel 1, at the IDWeek 2015 annual
scientific meeting. The study results confirmed that among preterm
infants 29-35 weeks gestation who did not receive
immunoprophylaxis, RSV disease can be severe, often resulting in
intensive care unit (:ICU) admission and the need for mechanical
ventilation
8:51 am S&P futures vs fair value: -8.10. Nasdaq futures vs
fair value: -17.50. (:WRAPX):
The S&P 500 futures trade eight points below fair value.
Markets in the Asia-Pacific region mostly gave way to a day of
profit taking following some strong gains of late. A disappointing
machinery orders report out of Japan contributed to the negative
disposition. The notable exception Thursday was China's Shanghai
Composite. It rallied 3.0% in a catch-up trade following its
weeklong closure.
In economic data:
Japan's August Core Machinery Orders -5.7% month-over-month
(expected +3.2%; prior -3.6%); -3.5% year-over-year (expected
+4.2%; prior +2.8%). Separately, September Economy Watchers Current
Index 47.5 (expected 48.6; prior 49.3)
------
Japan'sNikkei declined 1.0% and ended at its lows
for the session following a much weaker-than-expected report for
core machinery orders. The biggest losers were the health care
(-2.8%) and consumer staples (-2.7%), and consumer discretionary
(-1.6%) sectors. Aeon (-7.2%), Shionogi & Co (-6.7%), and MEIJI
Holdings (-5.5%) paced declining issues. Sumco Corp (+4.1%),
Chiyoda Corp (+3.9%), and Minebea (+3.6%) topped the list of
winners. Out of the 225 index members, 89 ended higher, 129
finished lower, and 7 were unchanged.
Hong Kong'sHang Seng declined 0.7%, spending
nearly the entirety of its session in negative territory. Prior to
Thursday's trade, the Hang Seng had risen 9.5% over a span of just
five trading sessions beginning on September 30. CNOOC (-6.0%),
China Resources Enterprise (-5.5%), and Belle International
Holdings (-3.7%) were the worst-performing issues. Sino Land Co
(+2.3%), Sands China (+1.6%), and Galaxy Entertainment (+1.4%) were
the best-performing issues. Out of the 50 index members, 14 ended
higher and 36 finished lower.
China'sShanghai Composite increased 3.0% in its
reopening after a weeklong holiday. It was a catch-up trade that
many saw coming with other markets having rallied hard since the
Shanghai Composite closed on September 30. At its best level of the
day, the Composite was up 3.9%.
Major European indices trade near their flat lines while UK's
FTSE (+0.4%) outperforms. The Bank of England made no changes to
its policy stance, leaving its key interest rate and the purchasing
program unchanged at 0.50% and GBP375 billion, respectively. On a
separate note, the latest policy meeting minutes from the European
Central Bank indicated there is still "substantial degree of
stimulus" in the pipeline.
Economic data was limited:
Germany's August Trade surplus narrowed to EUR19.60 billion
from EUR22.40 billion (expected surplus of EUR22.50 billion) as
imports fell 3.1% (consensus -1.2%; prior 2.3%) and exports
declined 5.2% (expected -1.2%; last 2.2%)
Swiss September Unemployment Rate ticked up to 3.4% from 3.3%,
as expected
------
UK'sFTSE trades higher by 0.4% with select miners
showing strength for the second day in a row. BHP Billiton and
Fresnillo hold respective gains of 2.3% and 3.0%. Consumer names
also display strength with Tesco, easyJet, and Burberry up between
2.1% and 2.6%.
Germany'sDAX has climbed 0.1% with exporters among
the leaders. BMW, Daimler, and Volkswagen have gained between 0.8%
and 2.0%. Financials also outperform with Commerzbank and Deutsche
Bank both up near 0.4%. On the downside, Bayer has given up
1.5%.
In France, the CAC is lower by 0.2%. Veolia
Environnement is the weakest performer, trading lower by 1.6%,
while financials BNP Paribas and Societe Generale hold losses close
to 0.8% apiece. On the flip side, ArcelorMittal trades up
1.6%.
8:47 am Net Element to hold a special meeting of stockholders
seeking approval to effect a reverse stock split at a ratio of
between 1 for 20 and 1 for 30 to retain Nasdaq listing (
NETE):
8:46 am European Markets Update: FTSE +0.4%, DAX +0.1%, CAC
-0.2% (:SUMRX):
Major European indices trade near their flat lines while UK's
FTSE (+0.4%) outperforms. The Bank of England made no changes to
its policy stance, leaving its key interest rate and the purchasing
program unchanged at 0.50% and GBP375 billion, respectively. On a
separate note, the latest policy meeting minutes from the European
Central Bank indicated there is still "substantial degree of
stimulus" in the pipeline.
Economic data was limited:
Germany's August Trade surplus narrowed to EUR19.60 billion
from EUR22.40 billion (expected surplus of EUR22.50 billion) as
imports fell 3.1% (consensus -1.2%; prior 2.3%) and exports
declined 5.2% (expected -1.2%; last 2.2%)
Swiss September Unemployment Rate ticked up to 3.4% from 3.3%,
as expected
------
UK'sFTSE trades higher by 0.4% with select miners
showing strength for the second day in a row. BHP Billiton and
Fresnillo hold respective gains of 2.3% and 3.0%. Consumer names
also display strength with Tesco, easyJet, and Burberry up between
2.1% and 2.6%.
Germany'sDAX has climbed 0.1% with exporters among
the leaders. BMW, Daimler, and Volkswagen have gained between 0.8%
and 2.0%. Financials also outperform with Commerzbank and Deutsche
Bank both up near 0.4%. On the downside, Bayer has given up
1.5%.
In France, the CAC is lower by 0.2%. Veolia
Environnement is the weakest performer, trading lower by 1.6%,
while financials BNP Paribas and Societe Generale hold losses close
to 0.8% apiece. On the flip side, ArcelorMittal trades up
1.6%.
8:45 am Vivus: Icahn Enterprises (
IEP) announces the expiration of its tender
offer of VIVUS' 4.50% Convertible Senior Notes due 2020; minimum
condition was satisfied (
VVUS): As of the Expiration Date, the
Offeror received tenders for $170,165,000 aggregate principal
amount (or 68%) of the issued and outstanding Notes, which
satisfied the minimum condition of the Offer. The remaining
conditions upon which the consummation of the Offer was subject
have also been satisfied.
8:39 am Royale Energy reaches an agreement, with a major
independent exploration and production company, to develop 1.3K
acres in the Sacramento Basin Grimes Field (
ROYL): This agreement allows Royale to
drill up to three wells targeting a 3D seismically defined
amplitude.
8:32 am Delcath reports receiving national reimbursement
coverage for Chemosat procedures in Germany (
DCTH):
Co announces the establishment of a national reimbursement code
for procedures performed with the Delcath Hepatic CHEMOSAT Delivery
System in Germany.
The German Institute for the Hospital Remuneration System
issued a ZE diagnostic-related group code, which permits hospitals
in Germany to obtain reimbursement for CHEMOSAT procedures
beginning in 2016.
8:31 am Futures tick lower following better than expected
Initial Claims...S&P futures vs fair value: -7.40. Nasdaq
futures vs fair value: -14.70. (:WRAPX):
The S&P 500 futures trade seven points below fair value.
The latest weekly initial jobless claims count totaled 263,000
while the Briefing.com consensus expected a reading of 275,000.
Today's tally was below the revised prior week count of 276,000. As
for continuing claims, they rose to 2.204 million from 2.195
million.
8:31 am Polycom: Elliott Management discloses active stakes in
PLCM and Mitel Networks (
MITL); sees a potential Polycom and Mitel
combination driving over 80% upside to Polycom stock price by 2017
(
PLCM):
Group's letter highlights were:
"Polycom, Mitel and other UCC vendors have been challenged to
maintain market share and will continue to face a very difficult
market. Such conditions have led Polycom's stock to meaningfully
underperform all relevant metrics over all relevant timeframes.
Maintaining the status quo strategy will perpetuate Polycom's track
record of underperformance and risk further shareholder value
erosion. Polycom must initiate a comprehensive review of all
strategic options, and the time for that review is now.
Elliott strongly believes a combination of mid-tier UCC vendors
will create greater scale, significant synergies and a meaningful
valuation uplift for stockholders. We believe that Polycom is an
excellent platform vehicle to roll up the UCC space. We have
conveyed all of these thoughts to Mitel (
MITL).
Mitel has a very capable management team led by CEO Rich McBee
and CFO Steve Spooner, has engaged in successful M&A and offers
valuable tax benefits to a new combined company. We believe that
the ideal Consolidation Strategy begins with a Polycom/Mitel
combination, whether those companies stay public or go
private."
Co additionally noted that it owns stock in Shortel (
SHOR), and stated that "A combination between
Mitel and ShoreTel made sense a year ago, and ShoreTel would still
be a compelling acquisition target for a combined Polycom/Mitel as
it executes on its Consolidation Strategy."
8:31 am SunOpta's subsidiary enters into a $330 mln senior
secured second lien loan, in connection with its Sunrise Holdings
acquisition (
STKL): Co announces intends to access its
committed financing entered into in connection with the
announcement of its pending acquisition of Sunrise Holdings, Inc.
in the form of a senior secured second lien loan , in the amount of
$330 mln. Co intends to use the net proceeds of the Loan, together
with the proceeds from the offering of common shares issued by
SunOpta on September 30, 2015, borrowings under its North American
credit facilities and cash on hand, to pay the purchase price for
the previously announced acquisition of Sunrise and to pay related
fees and expenses. The closing of the Loan is expected to occur
contemporaneously with the closing of the acquisition of
Sunrise.
8:31 am Marrone Bio Innovations announces it receives EPA
approval for Majestene bionematicide (
MBII):
Co announces that the EPA has approved its latest product,
Majestene, a broad spectrum, high performance natural bionematicide
for controlling nematodes on a wide range of agricultural
crops.
8:30 am Market View: Dec. eMini stock-index futures continue to
trade below fair values here following the 8:30 am ET economic data
points (:TECHX):
ESz5 now -8.00
YMz5 now -61
NQz5 now -17.00
8:29 am On the Wires (:WIRES):
McDermott International (
MDR) announced it has been awarded a sizeable
brownfield project by Qatar Petroleum for the engineering,
procurement, construction and installation of four wellhead
jackets. Installation of two jackets in the Bul-Hanine field
offshore east of Doha has been scheduled to be completed by
December 2016 with the remaining two scheduled for completion in
July 2017
Yulong Eco-Materials Limited (
YECO) has received authorization to process and
recycle construction waste in two additional administrative
villages in the Zheng Dong New District of Zhengzhou City. For this
work Yulong will receive 15RMB (about $2.35) per cubic meter of
construction waste processed, or more than $1.4 million.
Teva Pharmaceutical Industries Ltd. (
TEVA) announced that the Russian Ministry of
Health has approved the Marketing Authorization license for
three-times-a-week Copaxone (glatiramer acetate injection) 40
mg/mL, for the treatment of patients with relapsing-remitting
multiple sclerosis
8:25 am On the Wires (:WIRES):
UBIC (
UBIC) announced that the Japan Patent Office has
recently issued a Notification of Decision of Grant to the Company
for a patent application related to its Predictive Review
technology
Hovnanian Enterprises (
HOV) and DW Partners announced a land banking
arrangement worth $125 million. Domain and Hovnanian anticipate
identifying land parcels totaling $125 million in acquisition and
development costs over the next two months. Domain will acquire the
portfolio of land parcels from Hovnanian and option finished lots
on a monthly takedown basis back to Hovnanian
MagneGas Corporation (
MNGA) announced that its cutting fuel is being
used in the steel portion of the demolition of the St. Petersburg
Pier
AZZ (
AZZ) was awarded a contract estimated to be valued
at greater than $15 mln from the Comision Federal de Electricidad
to refurbish main steam isolation valves and reactor recirculation
cooling system valves at the Laguna Verde 1 and 2 Nuclear Power
Plants near Veracruz, Mexico. Under the terms of the contract, AZZ
will provide valve repair services beginning with Laguna Unit 1
during scheduled outages in the fall of 2015 and continuing in the
spring of 2016
Elephant Talk Communications (
ETAK) announced that it entered into a Cloud
Service and Software License Agreement with the wholesale division
of a Tier 1 US Mobile Operator, pursuant to which the operator may
procure ETAK's MVNO platform services on a non-exclusive basis
Alibaba Group Holding Limited (
BABA) launched Alibaba Defined, a comprehensive
digital experience created to help audiences outside of China
better understand the company's business model, strategy, and
products and services. The content can be seen at
http://ar.alibabagroup.com/2015/index.html
Statoil (
STO) announced that this morning there was a
report that oil had been observed in the sea close to the OLS B
loading buoy at the Statfjord field. The oil spill was discovered
during the loading of oil from the Statfjord A platform to the
tanker "Hilda Knutsen" via the OLS B loading buoy, which is located
between Statfjord A and Statfjord B. Loading to the tanker has
stopped and supply to the pipe and loading system from Statfjord A
has been closed. Production at Statfjord A is operating
normally.
8:24 am Diana Shipping signs a term loan facility for nearly $40
mln with ING Bank N.V (
DSX): The proceeds will be used to
partially finance the acquisition costs of one of its Kamsarmax dry
bulk vessels and of a Capesize dry bulk vessel currently under
construction, that is expected to be delivered to the Company by
the end of October 2015.
8:23 am Gapping down (
SCANX):
Gapping down
In reaction to disappointing earnings/guidance:
CSII-15%,
HLIT-4.9%,
DPZ-4.6%,
EXFO-1%
Select financial related names showing weakness:
NBG-3.5%, CS -2.5% (Financial Times reporting that
bank may look to unveil a new capital raise plan in the next two
weeks).
ING-1.4%,
RBS-0.7%
Other news:
ORIG-16% (co announced an update on its fleet,
stating 'the market continues to remain challenging due to the
massive spending cuts initiated by the oil companies'),
PIP-9.9% (announced oral arguments in SIGA's
appeal and PharmAthene's cross-appeal have concluded),
GLBL-5.3% (SunEdison (
SUNE) terminates deal to acquire six operating
hydro-electric and wind projects located in Peru; the projects
would have been transferred to Global),
SHAK-5% (files ~26.160 mln share Class A common
stock shelf offering by selling stockholders),
NEWT-3.4% (to launch a public offering of 2 mln
shares of common stock),
ETSY-2% (Amazon (
AMZN) launched its news Handmade at Amazon
store),
SMG-1.1% (priced $400 mln of 6.000% senior notes
due 2023)
Analyst comments:
GRPN-2.1% (initiated with an Underperform at
Cowen),
TUP-1.5% (downgraded to Underperform from Neutral
at BofA/Merrill)
8:20 am Gapping up (
SCANX):
Gapping up
In reaction to strong earnings/guidance/SSS:
WGBS+17.8%,
MG+16%,
EDUC+9.2%,
RELL+5.2%,
ZUMZ+3.8%,
NXTD+2.9%,
RECN+1.9%,
DB+0.6%, (announces anticipated Q3 charges -
rebounding from yday's sell-off),
CONN+0.4%
M&A news:
JMG+42.2% (to be acquired by Gannett (
GCI) for $12 per share),
BMR+8.2% (to be acquired by Blackstone (
BX) for $23.75/share in an $8 bln deal),
EMC+4.2% (in talks to merge with Dell, according
to the WSJ),
CC+3.6% (pollo Global Management (
APO) may consider an offer to acquire CC,
according to Bloomberg),
ECA+2.7% (to sell its Denver Julesburg Basin
assets in Colorado for ~$900 mln),
TLN+2.1% (agrees to sell three Pennsylvania power
plants, with 996 MW of capacity, for $1.51 bln in cash)
Select metals/mining stocks trading higher:
AU+3.8%,
BHP+2.5%,
MT+1.9%,
BBL+1.6%,
FCX+1.5%,
CLF+1.4%,
VALE+0.8%
Other news:
GBSN+40.9% (submits its Shiga Toxin Direct Test to
the FDA for 510(k) clearance following the successful completion of
a clinical trial that met all of Great Basin's clinical
objectives),
SD+16% (announces it will repurchase $100 mln of
its senior unsecured notes for $30 mln in cash, and exchange $300
mln of senior unsecured notes for convertible notes ),
NBIX+15.6% (announces that NBI-98854 showed a
statistically significant reduction in tardive dyskinesi, during a
Kinect 3 clinical trial),
CDTI+14.6% (Clean Diesel Technologies and PACCAR
(:PACR) sign multi-year Distribution Agreement for DuraFit),
NVLS+11.8% (announced positive Phase 1b results
for N91115 in patients with Cystic Fibrosis),
OGXI+11.1% (announces the EMA supports plans for
prospectively defining poor prognostic subpopulation in Ph 3
AFFINITY trial),
LL+8% ( reaches a settlement with the DOJ related
to compliance with the Lacey Act, regarding the protection of
plants, fish and wildlife ),
BTX+6.3% (OncoCyte subsidiary filed Registration
Statement with the SEC in connection with co's planned distribution
OncoCyte common stock to holders of BioTime),
MBLX+4% (announces $20 million common stock
purchase agreement with Aspire Capital Fund),
INTL+3.1% (to replace AMSG in the S&P SmallCap
600),
RAX+2.1% (cont strength),
SNDK+2.1% (cont strength, rumored to be takeover
target earlier this week),
SLRC+1.7% (announces a $30 million repurchase
program),
ASML+1.7% (still checking),
ALKS+1.7% (favorable commentary on Wednesday's Mad
Money),
FCAU+1.3% (confirms new tentative agreement with
the UAW ),
AMSG+1.2% (to replace CNW in the S&P MidCap
400),
RBA+1% (reported September gross auction
proceeds)
Analyst comments:
QLYS+6.2% (upgraded to Outperform from Neutral at
Credit Suisse),
TLYS+4.6% (upgraded to Buy from Neutral at B.
Riley & Co),
LOCO+3.4% (initiated with a Buy at Sun Trust Rbsn
Humphrey),
NAVI+3.1% (upgraded to Buy from Neutral at
Goldman),
PAY+2.4% (upgraded to Strong Buy from Outperform
at Raymond James),
NKE+0.6% (upgraded to Buy at DA Davidson)
8:17 am On the Wires (:WIRES):
Masimo (
MASI) announced that an 18-study meta-analysis of
665 subjects reported that Masimo's Pleth Variability Index (
PVI), available with Masimo's SET and rainbow
SETmonitoring platforms, may help clinicians assess fluid
responsiveness in mechanically ventilated patients in normal sinus
rhythm in the operating room and intensive care unit. The
meta-analysis, published in the Journal of Clinical Monitoring and
Computing by Dr. Chu and colleagues from The First Hospital of
China Medical University, Shenyang, China, combined the findings
from 18 independent studies evaluating the ability of PVI to help
clinicians assess fluid responsiveness
Fibrocell Science (
FCSC) and Intrexon Corporation (
XON) announced that additional details of positive
in vivo pre-clinical data for FCX-007, will be presented at the
American Society of Human Genetics Annual Meeting from October
6-10, 2015 in Baltimore, Maryland.
Sabre Corporation (
SABR) announced a new agreement to provide
content, merchandising solutions and Sabre Marketplace Analytics to
Virgin Australia. Using Sabre's data analytics technology, Virgin
Australia will be able to view shopping activity made within the
Sabre travel marketplace for their routes
Seaspan Corporation (
SSW) announced that it accepted delivery of a
14000 TEU containership, the YM Warmth. The new containership, is
Seaspan's sixth 14000 TEU SAVER design containership and eighth
delivery in 2015. The YM Warmth will commence a ten-year,
fixed-rate time charter with Yang Ming Marine Transport Corp. Yang
Ming may extend the charter for up to an additional two years
VBI Vaccines (
VBIV) announced that it has applied its eVLP
Platform in the development of a novel therapeutic vaccine
candidate for Glioblastoma. Co is evaluating the ability of its
vaccine candidate to stimulate CD4+ and CD8+ T cell responses in
peripheral blood mononuclear cells harvested from healthy patients
and patients with GBM. Co will also monitor several biomarkers
predictive of clinical efficacy
8:16 am Pulmatrix announces preclinical data showing that
PUR1900 was active and potent in vitro against Aspergillus
fumigatus while achieving high lung concentrations and low systemic
exposure in rats (
PULM): In rat pharmacokinetic studies,
itraconazole showed a long duration of lung retention, with some
clearance over a one week period. Subsequent studies with PUR1900
dry powder demonstrated that PUR1900 maintains high concentrations
of itraconazole in both lung tissue and in bronchoalevolar lavage
samples. Amphotericin B lung concentrations remained constant over
one week, while voriconazole was rapidly absorbed and cleared from
the lungs. Most notably, the percentage of administered drug
recovered in lung tissue for itraconazole was significantly higher
than for amphotericin or voriconazole, and itraconazole had a long
lung half-life, which may lead to less frequent dosing in the
clinic. All three compounds exhibited potent activity against
A.fumigatus in vitro.
8:04 am ManTech awarded contract by the Defense Intelligence
Agency; vehicle has a 5-year period of performance, with a
potential value of $6 bln (
MANT):
8:04 am MagneGas selected for major steel demolition project in
Florida (
MNGA): Co announces that its cutting fuel
is being used in the steel portion of the demolition of the St.
Petersburg Pier, a multi-story structure that is being demolished
and replaced with new building.
8:03 am CB&I awarded $60 mln plant services contract
extension with Louisiana Pigment (
CBI):
8:03 am DuPont and Caribou cross-license CRISPR-Cas intellectual
property portfolios; cos enter into multi-year research
collaboration; DuPont makes minority equity investment in Caribou (
DD): DuPont and Caribou Biosciences, a
developer of CRISPR-Cas technologies for genome editing, jointly
announced a strategic alliance. As part of the agreement, DuPont
and Caribou have cross-licensed their...
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