1:54PM Market View: Indices recoup some of the pre-FOMC decline in recent trade, Dow and S&P 500 edge back into positive territory (TECHX) 1554.85 +2.27 : Short term watching 1556/1557 on the upside in post-FOMC trade for the S&P 500 and the 1552 level on the downside which was recently tested.
1:47PM Analogic receives $7.6 mln order from the TSA for its COBRA checkpoint auto-EDS system (ALOG) 64.99 +0.24 :
1:46PM Alanco Technologies announces its financial statements for fiscal year ended June 30, 2007 contained a going concern qualification from its auditors (ALAN) 1.74 -0.01 : Co announces that its financial statements for fiscal year ended June 30, 2007, as disclosed in its latest Form 10-KSB filed with the Securities and Exchange Commission on Oct 1, 2007, contained a going concern qualification from its auditors, Semple, Marchal & Cooper LLP. This announcement is made in compliance with Nasdaq Rule 4350(b), which requires separate disclosure of receipt of an audit opinion that contains a going concern qualification, and does not reflect any change or amendment to the financial statements issued on October 1, 2007.
1:32PM Journal Commun announces additional share repurchase authorization of up to 5 mln shares of Class A Common Stock; sets quarterly dividend of $0.075/share (JRN) 9.92 +0.00 :
1:30PM Fed Tracker (BONDX) : The generally hawkish Poole is about to talk on the global economy. He is not likely to discuss current policy but he may venture into market volatility & maybe even the buck. There is a Q&A so his hawkish side may show, particularly with FOMC minutes due. After the close has Yellen (15:40) & Pianalto (18:00), both of which feature Q&As. (Bloomberg)
1:29PM Market View: New session lows for major averages (TECHX) : The market drifting sideways following the opening push but has recently slipped under the intraday range floor amid continued pressure in Semi -1.5% and Retail -1.2 with commodity leadership also seeing some profit taking
1:19PM Thermogenesis announces 510(k) clearance for AutoXpress cord blood processing system (KOOL) 2.52 +0.09 :
12:50PM Hi-Shear Technology reports Q1 EPS of $0.17 vs $0.09 YoY, revs rose 34% YoY to $5.69 mln (HSR) 13.85 +1.98 :
12:48PM Market View: Market chops after early pop (TECHX) : A firmer start to the session with the Nasdaq Comp/100 able to set new multi-year intraday highs amid strength in stocks such as MSFT (2008 through 2010 estimates raised by Goldman) and GOOG. Despite the new highs in Nasdaq, however, it has not been a day of technology leadership (Semi -SMH- under pressure -1.2%) but instead most has come from Commodity sectors (Coal +3%, Gold/Silver +1.9%, Oil +1.3%, Natural Gas +1.3%, XLE +1.3%, OIH +0.8%). Declines in Retail (RTH -1.1%) along with Semi and a more cautious approach ahead of the FOMC minutes at 14 ET have kept the market action generally range bound following the early pop. The S&P 500 has followed the technical level closely today with the 1556/1557 resistance holding on a couple of tests with support at 1553/1552 thus far limiting pullbacks although we are seeing some downticks in commodity sectors in recent trade. A slide through the latter raises potential for additional short term corrective action.
12:21PM Linear Tech continued to slump after slicing through its 200 sma but holds on initial test of its Sep/6 month close/intraday lows at 33.95/33.74– session low 33.94 (LLTC) 34.02 -1.07 :
12:16PM Retail -RTH -0.9%- slides to new session low, pressuring Consumer Discretionary -XLY -0.4% (TECHX) : SVU -3.7%, LTD -3%, COST -1.2%, HD -1.2%, KSS -0.9%, TGT -1.4%, WMT -0.8%.
12:02PM Southern Copper tests/pauses near last wk/52-wk high of 129.37– session high 129.25 (PCU) 128.85 +4.35 :
12:01PM China Sunergy signs 106MT supply agreement with Luoyang Zhonggui (CSUN) 11.14 +1.01 : Co announces it has entered into a supply agreement with Luoyang Zhonggui High-tech, a Chinese polysilicon manufacturing company, for the supply of approx 106 metric tons of high-quality virgin solar-grade multicrystalline polysilicon for 2007 and 2008. Under the Agreement, a total of 60M.T and 46M.T of solar-grade multicrystalline polysilicon will be shipped to China Sunergy in 2007 and 2008, respectively. The contracted volumes will support approx 13M.W of production for China Sunergy during the contractual term which primarily covers the period of September 2007 to March 2008. Pricing is on a fixed basis for the duration of the Agreement.
11:57AM Semi HOLDRs -SMH- rebounding off support at 50 ema 38.00 amid jump in volume– session low 37.98 (TECHX) 38.10 -0.40 : Noted support for the SMH in early updates at congest/50 ema and have seen the SMH bounce on volume spikes in recent trade. Intraday resistance of interest is in the 38.20/38.26 area.
11:57AM Bond Watch: Stalling Out (BONDX) : The bonds have been unable to add to early morning gains as uncertainty over the FOMC minutes weigh & trade meanders through the session in search of something to latch onto. A retracement of early session gains is now underway. The 2-10-yr yield spread is hanging in at 53.8 as steepeners were unwound through much of the morning. FOMC minutes are paving the way to a slightly more active afternoon session as the two camps line up with those favoring a one-&-done bias propped up by recent positive data & Fed-speak against those looking for another cut at the end of the month. The buck is getting squeezed lower as weak longs were knocked out on strong euro buying around the London fix. Those looking for a quick recovery post-fix have been disappointed though as the buck looks down for the count today unless FOMC saves its hide. Spot gold is flipping up at 738.14 (+4.83) while crude oil burns higher to 80.54 (+1.52). FOMC minutes at 14. The euro is at 1.4090 & the yen is at 117.0000 while the 10-yr is +02/32nds yielding 4.628%. For more bond & economic commentary click here.
11:53AM Nike breaks above morning high, approaching its Sep/52-wk peak at 60.99 (NKE) 60.93 +0.92 :
11:27AM Semi HOLDRs -SMH- continues to slide, probes support at 38.05/38.00– session low 38.02 (TECHX) 38.02 -0.48 : Noted weakness in the sector this morning in the 10:18 update with support highlighted at 38.05/38.00 (congest/50 day ema) tested in recent action. Support below here is at 37.80/37.75 which marks last week’s low as well as its 50 sma.
11:16AM Steel Index -DJUSST- sets new session high of 417.10, back near two wk range top/last wk’s three month high at 417.91 (TECHX) 416.94 +4.86 : Strong run off its 50 ema support today in NUE +1% (testing yesterday’s range top near 57.85), ZEUS +2.5% (third day testing 200 sma, Fri/Mon high at 28.72/28.73), X +0.7%, AKS -0.6% (paused after setting new 52-wk high today), CRS +2.2%, STLD +2.8%.
10:56AM Market View: Nasdaq Comp holds on test of support at yesterday’s high of 2787 — session low 2787 (TECHX) 2791.41 +4.09 : A sustained slide through here and 2781/2779 would raise potential for additional short term corrective trade.
10:47AM Sector relative strength in Energy -XLE, OIH in recent trade (TECHX) : XLE back near session high of 75.16.
10:45AM Gold -GLD- sets new session high while Semi -SMH- and Retail -RTH- set new session lows; Home Construction -XHB- slides back near support at 22.70 (TECHX) :
10:41AM Market View: New session low for S&P 500 (TECHX) 1554.03 +1.45 : Highlighted resistance at 1556/1557 in The Technical Take yesterday and in pre-market notes as a level to watch to get a quick read on the underlying strength of the market. Index stalled at 1557 and reversed back to a new low of 1553 to test important short term support at 1553/1552 mentioned in the 09:42 update. Failure at this support zone argues that the rebound off yesterday’s late low to today’s early high was merely a temporary corrective bounce (click forhourly chart).
10:37AM Glu Mobile to provide first-ever redeemable mobile Monopoly game prize for Monopoly 2007 game at McDonald’s (GLUU) 9.20 -0.09 :
10:30AM Coal Index -DJUSCL- hovering near session high and last wk/three month peak at 309.77 (TECHX) 308.54 +5.47 : Firm start for the sector index leaves it slightly under the three month high from last wk. Helping to underpin are: ANR +4.7%, ACI +1%, FDG +1.8%, BTU +1.3%, FCL +1%, YZC +1%, JRCC +1.7%, BHP +1%.
10:24AM Verizon notches new session high of 45.45 (VZ) 45.44 +0.48 : Solid open extended in recent trade with the highs from last Thur/Fri being tested (45.50/45.45). Note that its 52-wk high from last week is at 45.64.
10:23AM Fifth Third awarded $100 mln in new market tax credits from U.S. Department of the Treasury (FITB) 35.10 +0.15 :
10:18AM Market View: Semi HOLDRs -SMH- under pressure, attempting to stabilize at support (TECHX) 38.26 -0.24 : The Sector ETF has been a laggard in moves off both the Aug and Sep lows and today it has weighed on the market after a minor push higher off the open. Currently it is attempting to stabilize near support from The Technical Take at 38.25/38.20 (session low 38.21). Initial intraday resistance to work through to help neutralize the weaker short term pattern is in the 38.35/38.40 zone. The next area of interest on the downside on a failure is at 38.05/38.00 (congest and 50 ema)– KLAC -1.5%, BRCM -1.7%, NVLS -1.2%, LSI -1.8%, LLTC -1.4% (low 34.52, 200 sma at 34.41), ALTR -1%, NSM -1%.
10:06AM Market View: Russell 2000 slips into the red, S&P 500 pulling back from initial resisitance noted earlier at 1556/1557 (TECHX) : Initial support for the S&P 500 is at 1555 being tested, an important short term floor thereafter is at 1553/1552.
10:02AM Home Construction -XHB- back in black (TECHX) 22.93 +0.16 : Weak start for the XHB but it quickly rotated into the black. Key from a short term technical view is the ability to hold above roughly 22.83/22.70 which mark retracements of this morning’s recovery rally. Posture above (recently edged back to 22.90) could position it for another leg higher short term– TOL +0.4%, LEN -0.2%, BZH +0.9%, MDC +0.3%, DHI +0.7%, RYL +1.2%.
9:49AM Symantec hovering near yesterday/July peaks at 21.07/21.03 after setting minor new 9 month high of 21.09 (SYMC) 21.05 +0.05 :
9:47AM Market View: Nasdaq Comp sets another new 52-wk high, probing resistance in the 2795/2800 area — session high 2796 (TECHX) 2796 +8.86 :
9:42AM Market View: S&P 500 probing initial resistance (TECHX) 1556.97 +4.39 : Early strength in Energy (XLE +0.9%), Technology (XLK +0.7%) and Materials (XLB +0.6%) have lifted the index to initial resistance in the 1556/1557 area. There is a minor level near 1559 in front of Friday’s peak at 1561. Intraday support is at 1555 followed by the more important 1553/1552 area.
9:38AM Marathon Oil issues Q3 update; Q3 exploration expense is now estimated to be between $90-110 mln, slightly lower than the co’s previous guidance. (MRO) 59.13 +0.55 : Co announces providing information on market factors and operating conditions which occurred during the third quarter of 2007 that could impact the co’s quarterly financial results. Co says Exploration and Production Production sold during the third quarter is estimated to be approx 367,000 barrels of oil equivalent per day (boepd). Revenues are reported based on production sold during the period which can vary from production available for sale primarily as a result of the timing of international crude oil liftings and natural gas sales. Oil and natural gas production available for sale during the third quarter is expected to be approx 371,000 boepd, within the previously provided third quarter guidance of 355,000 to 375,000 boepd. The co’s average liquid hydrocarbon realization for the first two months of the third quarter, as compared to the second quarter of 2007, increased $7.55 per barrel domestically and $9.23 per barrel internationally, reflecting the general market price movements during the first two months of the quarter as well as the timing of liftings. The co’s average international natural gas realization during the first two months of the third quarter was essentially flat when compared to the average second quarter 2007 natural gas realization. The co’s actual crude oil and natural gas price realizations vary from market indicators primarily due to product quality and location differentials. Q3 exploration expense is now estimated to be between $90 and $110 mln, slightly lower than the co’s previous guidance. U.S. exploration expense is estimated to be between $50 and $55 mln, while international exploration expense is estimated to be $40 to $55 million. Refining, Marketing and Transportation The Company currently projects refined products sales volume will average approx 1,435,000 barrels per day (bpd) in the third quarter of 2007.
9:38AM Microsoft gaps higher, testing resistance in the 30.20/30.30 area (MSFT) 30.17 +0.33 : Goldman raising of profit estimates has triggered a gap higher start with the stock probing a retracement/congest resistance in the 30.20/30.30 area in early trade (session high 30.17).
9:33AM Magellan Petroleum announces drilling report - Burundi 1 Spuds PL 33 - Cooper Basin QLD (MPET) 1.13 +0.02 : Co announces its 100% owned subsidiary, Magellan Petroleum Australia Limited advises the following drilling report. The Burundi 1 near field exploration well spudded in PL 33 in the Cooper Basin of southwest Queensland on Oct 4. Burundi 1 is the first of a two well drilling program planned for the Nockatunga area in October. The Maxwell 5 appraisal well in PL 50 will follow.
9:32AM Law Enforcement Associates receives multiple domestic orders for under vehicle inspection systems, including three Smith & Wesson - Branded UVIS Swifts (AID) 1.18 0.09 : Co announces it has received orders for four of its Under Vehicle Inspection Systems during the past week. Three of the orders are for the co’s portable Smith & Wesson - branded UVIS Swift, and one is for the co’s larger legacy UVIS.
9:31AM Dentsply testing last wk/52-wk high at 42.34 (XRAY) 42.34 +0.09 : Noted the test/bounce near its 20 exp and have seen the rally extended to last wk/52-wk high.
9:31AM Wireless Ronin announces Chrysler Canada chooses digital signage technology (RNIN) 4.74 +0.22 : Co announces that Chrysler Canada is testing its interactive digital signage program using RoninCast software. The RoninCast digital signage system is integrated into the existing Chrysler Canada Vehicle Information Center interactive kiosk program in showrooms and service departments. The initial test involves ten dealers across Canada. Contingent upon a successful test, Chrysler Canada plans to roll-out the program nationally in 2008.
9:30AM Progress Energy CEO Robert McGehee dies following stroke (PGN) 47.19 +0.17 : Co announces Robert McGehee, chairman and chief executive officer of the co, died today after suffering a stroke Sunday, Oct. 7, while on co business in London. Last month, Progress Energy’s board of directors reviewed and approved an executive succession plan in anticipation of McGehee’s retirement, which was expected to occur as early as next spring. The board will meet Friday, Oct. 12, to take steps to implement that plan. The co will provide an update at the conclusion of that meeting.
9:30AM Affymetrix scientists awarded $10.2 mln grant from NHGRI for four-year follow-up ENCODE study (AFFX) 27.95 +0.29 : Co announces that a team from Affymetrix Laboratories has been awarded a $10.2 mln scale-up grant over the next four years from the National Human Genome Research Institute, as part of the expanded ENCyclopedia Of DNA Elements project. The grant is part of a project involving 16 multinational research centers that totals more than $80 mln. The goals of the ENCODE project are to identify the various functional regions found across the human genome and to develop new high-throughput technologies associated with this task.
9:15AM S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +2.0. : Google remains a hot topic (and stock) as it is trading up 6 points at 616.00 pre-market.
9:12AM Market View: Support and Resistance (TECHX) : Minor consolidation for the S&P 500 and Dow yesterday with Nasdaq running to fresh multi-year highs. For a look at the resistance/support levels of interest for today as well as some Fibonacci Time Sequence targets for the S&P 500 go to The Technical Take.
9:12AM Bear Stearns hires Lee Stettner as Global Head of Equity Capital Markets (BSC) 126.64 : Co announced that Lee Stettner will join the firm as a senior managing director and global head of Equity Capital Markets. “In this newly created position, Mr. Stettner will play a key leadership role in the firm’s Strategic Finance Group where he will focus on further developing the firm’s capital markets product offerings.”
9:10AM On The Wires (WIRES) : Implant Sciences (IMX) announces the shipment of six units of the co’s Quantum Sniffer B.T.S. Benchtop Explosives Detection System to Beijing Ritchie’s Time, the co’s distributor in China, for delivery to the Beijing police… DRS Technologies (DRS) announces that it received a follow-on $9.5 mln contract, including options, from the Washington Headquarters Services on behalf of the Pentagon Force Protection Agency, to continue providing full-time alarm monitoring and customer call center coverage within the PFPA’s command center at the Pentagon… Raytheon (RTN) has entered a Cooperative Research and Development Agreement with the U.S. Army Space and Missile Defense Command-U.S. Army Forces Strategic Command to investigate improvements to integrated air and missile defense mission effectiveness… Reading International (RDI) announces that it has entered into agreements to acquire leasehold interests in 15 of the 29 cinemas operated by Pacific Theatres Exhibition and its affiliates. The cinemas contain 181 screens with annual rev of approx $81 mln. The aggregate purchase price of the cinemas and related assets is $72 mln.
9:03AM Uranium Energy expands exploration database in Wyoming and New Mexico (UEC) 4.10 : Co announces that is has acquired a strategic database of US uranium exploration and development results covering territory in Wyoming and New Mexico, including Uranium Energy Corp’s existing properties. The database belonged to a pioneering uranium developer and represents work from the 1950s through the present.
9:03AM EFJ’s EFJohnson subsidiary receives $16.7 mln contract from state of California (EFJI) 3.40 : Co announced that its EFJohnson subsidiary has received a contract from the State of California Department of General Services. The contract, valued at $16.7 mln over three years, calls for EFJohnson to provide its Project 25 compliant portable radios to public safety agencies in the state.
9:03AM NPS Pharm sells assets related to mGluR collaboration to AstraZeneca for $30 mln to support late-stage product development (NPSP) 4.76 : Co announces that by mutual agreement it has ended its collaboration with AstraZeneca (AZN) to discover and develop drugs targeting metabotropic glutamate receptors. AZN has agreed to pay NPSP $30 mln to acquire NPSP’s assets related to the cos’ research collaboration to discover and develop the compounds. NPSP intends to use the proceeds to support further development of its late-stage product pipeline. Under the terms of the agreement, NPSP will no longer provide research support for or maintain interests in any drugs discovered, developed and commercialized under this program.
9:01AM Tegal announces that it has received additional orders for 981ACS units from a “leading hard disk drive manufacturer” (TGAL) 5.42 : Co announces that it has received additional orders for 981ACS units from a leading hard disk drive manufacturer to support capacity expansion for magnetic data storage device fabrication. The order also includes additional ACS productivity upgrades for the customer’s legacy 900 Series tools.
9:00AM S&P futures vs fair value: +3.4. Nasdaq futures vs fair value: +1.0. : Futures steady ahead of open with FOMC minutes at 2:00 ET the focus.
9:00AM California Pizza reports September same store sales, slightly raises Q3 EPS guidance (CPKI) 18.74 : Co reports September same store sales of +3.5% vs +3.3% street expectation. Co raises Q3 EPS guidance to $0.23-0.24, excluding $0.19 charge associated with store closure costs, compared to previous guidance of $0.22-0.23, vs $0.22 consensus; co sees Q3 revs of $162.0 mln vs $163.5 mln consensus.
8:56AM Mosaic earnings color (MOS) 51.38 : Reuters Estimates is telling us that an actual of $0.67, excluding an unrealized mark-to-market derivative losses of $30.1 mln, a tax benefit of $20.4 mln and a loss on extinguishment of debt of $0.5 mln, is comparable to their consensus of $0.62. See 8:12 comment for the full earnings report.
8:54AM Altair Nanotechnologies, AeroVironmen, Go Green and Micro-Vett announce a ’successful’, multiple fast-charge demonstration of an all electric delivery in Oslo, Norway (ALTI) 3.45 : AeroVironment (AVAV), ALTI, Micro-Vett, SPA and Go Green Holding, jointly announce the “successful” public demonstrations of the All-Electric Fiat Doblo to government officials and potential commercial customers in Oslo, Norway.
8:50AM LDK Solar raises Q3 revenue guidance above consensus; says no merit to allegations (LDK) 37.50 : As mentioned at 08:46, LDK raised guidance for Q3 (Sep), sees Q3 (Sep) revs of $140-150 mln vs. $121.07 mln Reuters Estimates consensus, prior guidance $115-125 mln. Co said that it exceeded its original plan and shipped approximately 75 MW of wafers in the third fiscal quarter ended September 30, 2007. LDK management stands by its internal review of the inventory and does not believe there are any material inconsistencies with what LDK has disclosed in its financial statements. “As we previously indicated, we believe that there is no merit in the allegations made about our inventory accounting practices, our business operations are normal and we continue making shipments to fulfill our customers’ orders,” stated Xiaofeng Peng, Chairman and CEO. “We remain confident that we have the appropriate financial controls and procedures in place for inventory reporting, and look forward to putting this unfortunate matter behind us.”
8:45AM ADA-ES awarded a contract for a Mercury Control System at a new power plant (ADES) 12.50 : Co announces that it has been awarded a contract to supply an activated carbon injection system to provide mercury emission control for a new coal-fired generating unit being constructed in the midwestern United States. The generating unit will produce 275 gross megawatts of electricity and utilize low sulfur Powder River Basin coal from Wyoming for its fuel. ADES expects to deliver the system to the new generating unit during the fall of 2008.
8:41AM Taseko Mines highlights Q4 sales; Gibraltar Mine sold 13.2 mln pounds of copper (TGB) 5.72 : Co announces an update on quarterly sales and production results for the fiscal year ending Sep 30, 2007. In particular, the co highlights its Q4 production and sales during which the Gibraltar Mine produced 16.8 mln pounds and sold 13.2 mln pounds of copper at an average sales price of $3.63/pound. In addition to the $3.63 realized for Q4 shipments, an additional $0.10/pound was realized over the estimated rev for Q3 shipments. Russell Hallbauer, President and CEO, stated: “Management’s decision to leave Gibraltar production unhedged has resulted in increased returns from sales as the price of copper has risen. With the combination of expected ongoing strength in metal prices and planned production growth, we believe Taseko is poised to continue to generate significantly increasing cash flow from operations.”
8:38AM On The Wires (WIRES) : Brightpoint (CELL) announces that its subsidiary, Brightpoint Middle East F.Z.E., has entered into a distribution agreement with e2GO. Pursuant to this agreement, CELL will provide e2GO with distribution services for e2GO products to be distributed in the Middle East, Africa and C.I.S… Sciele Pharma (SCRX) announces that it has completed enrollment of patients in a pivotal phase III clinical trial using pravastatin and fenofibrate to treat mixed dyslipidemia.
8:33AM Cantel Medical misses by $0.02, beats on revs (CMN) 16.97 : Reports Q4 (Jul) earnings of $0.14 per share, excluding non-recurring items and including stock based compensation expense, $0.02 worse than the Reuters Estimates consensus of $0.16; revenues rose 24.7% year/year to $62.5 mln vs the $59 mln consensus. (Briefing.com note: Consensus includes stock based compensation expense.)
8:32AM TiVo confirms RNWK’s Rhapsody digital music service now available on the TiVo service (TIVO) 7.32 : Co confirms a deal with RNWK for consumers to experience digital music in the home by delivering instant access to the Rhapsody music service through any broadband-connected TiVo box. TiVo subscribers have access to a free 30-day trial of Rhapsody. Consumers can choose to continue their Rhapsody service beyond the trial period for $12.99 per month.
8:32AM UQM Technologies announces $1.13 mln in additional military orders for hybrid electric propulsion and export power vehicle applications (UQM) 3.77 : Co announced that during the last six months it has received orders for military customers totaling $1.13 mln for propulsion systems, generators and funded engineering activities on hybrid electric vehicle programs and export power applications. These orders are in addition to previously announced orders during the same six months from the U.S. Air Force, the U.S. Navy, the Tank - Automotive and Armaments Command (TACOM) and Quantum Fuel Systems Technologies Worldwide, Inc., which collectively totaled $1.24 mln.
8:31AM Digital Angel Tags selected by Superior Livestock Auction for Process Verified Program (DOC) 1.40 : Co announces that Superior Livestock Auction has selected Digital Angel’s animal applications unit, Destron Fearing, to manufacture an exclusive tag for its new PVP (Process Verified Program) program - Superior Verified.
8:30AM Miramar Mining to be acquired by Newmont for C$6.25 (MNG) 5.15 : Newmont Mining Corporation (NEM) and Miramar Mining Corporation (MNG) announce that they have entered into a definitive support agreement that provides for the acquisition by Newmont, with the unanimous support of the Miramar board of directors, of all the outstanding common shares of MNG for C$6.25 cash per common share. The transaction values MNG at approx C$1.5 bln on a fully-diluted basis. All of the directors and senior officers of Miramar have entered into written agreements to accept NEM’s offer and to tender their shares to the take- over bid. NEM also announced that it has enhanced its existing financing capacity with a $1.3 bln underwritten financing commitment from JPMorgan and Citi that is in addition to approx $1.5 bln in available capacity under its current revolving credit facility.
8:30AM Boston Scientific announces European approval of next-generation implantable defibrillator (BSX) 14.19 : Co announces CE Mark approval of its Confient implantable cardioverter defibrillator. This approval represents the first Boston Scientific-branded cardiac rhythm management device to treat sudden cardiac death
8:29AM S&P futures vs fair value: +3.9. Nasdaq futures vs fair value: +2.0. : Futures have been firming modestly in early trading. Alcoa reports earnings this afternoon to kick off third quarter reports. Oil is down $0.23 to $78.79 a barrel.
8:29AM AES Corp announces a $500 mln sr notes private placement offering (AES) 20.67 :
8:27AM Taiwan Semi announces Sept consolidated sales were NT$29,453 mln +8.2% yr/yr (TSM) 10.61 :
8:27AM On The Wires (WIRES) : American Electric Power (AEP) has reached a settlement agreement with the U.S. Environmental Protection Agency, eight states and 14 environmental organizations. AEP admits no violations of law, and all claims against AEP were released. AEP will install additional emissions control equipment, pay $60 mln for environmental projects and $15 mln penalty… 3D Systems (TDSC) announces that Acu-Cast Technologies has purchased a Viper Pro S.L.A. System.
8:22AM Bond Watch: Sneaking Higher (BONDX) : The market is modestly bid with the long end leading the way as investors find value with yields back up near Sep highs. Last week’s better-than expected jobs report knocked prices off their summer-long ascension & now the market is left to battle for longer term direction. Which means data dependency with swings to either ends of recent ranges in the meantime as sentiment is likely to shift in spurts. The 2-10-yr yield spread is in at 54.6 (-1.3) as curve trade finds its footing after unwinding its steepening bend. Bond prices in the EuroZone have fought their way back to positive after hawkish rate talk by ECB’s Trichet sent them lower overnight while in Japan, bonds were soft as fears of a recession in the US are diminished. Treasuries will have Fed-speak, both past & present to deal with today. Minutes to the pivotal Sep 18th FOMC meeting will be released later & trade is eager to get a look at the discourse. Meanwhile St. Louis’ Poole will talk on the global economy & SF’s Yellen & Cleveland’s Pianalto hit later in the day. Technicals will factor into trade as the summer price rally is in danger of suffering another wave of retracement. The market has managed to avoid much more painful losses post-payrolls with the 10-yr yield seeing buyers ahead of approaches to 4.70%. Should that level go 4.90% looks ripe for the taking while the absence of catalysts suggest further consolidation. The buck is consolidating gains after working higher since its wild flip-flop on Fri but 1.4010 is propping up the euro currently while the yen’s trying to regain the 116 handle with the dollar’s failure up at 117.6000. Spot gold is off at 729.80 (-3.50) while crude oil is down at 78.67 (-0.35). FOMC minutes are at 14 but otherwise the calendar is empty. The euro is at 1.4039 & the yen is at 117.2050 while the 10-yr is +03/32nds yielding 4.624%. For more bond & economic commentary click here.
8:15AM Occulogix Board authorizes exploration of strategic alternatives to enhance shareholder value (OCCX) 0.43 : Co announces that its Board of Directors has authorized the co’s mgmt and advisors to explore the full range of strategic alternatives available to enhance shareholder value. These alternatives may include, but are not limited to, the raising of capital through the sale of securities, one or more strategic alliances and the combination, sale or merger of all or part of the co. (stock is halted)
8:13AM On The Wires (WIRES) : Environmental Power (EPG) announces that its wholly owned subsidiary Microgy, will begin deliveries of Renewable Natural Gas from its Huckabay Ridge Facility beginning Oct 1, 2008 to Pacific Gas & Electric Company… Raser Technologies (RZ) announces that the co has completed drilling on a geothermal production well in central Nevada for use in a binary-cycle geothermal power plant for generating clean, renewable electric power. Preliminary readings of well 68-04 indicate the existence of geothermal resources with promising water temperature and flow characteristics, subject to further testing and evaluation… The Western Union Co (WU) and Yodlee announce that the companies have joined forces to offer a range of online payment capabilities, including expedited payments, for online bill-pay users… AECOM Technology (ACM) announces that it has been awarded a high-profile, 30-month contract by the Hong Kong Environmental Protection Department to study volatile organic compounds and photochemical ozone pollution in the Pearl River Delta.
8:07AM BSD Medical announces that a new publication concludes that cisplatin plus hyperthermia therapy “results in a high response rate and acceptable toxicity in patients with recurrent cervical cancer” (BSM) 6.29 : Co announces that the newest issue of the International Journal of Hyperthermia has published an article entitled “Weekly systemic cisplatin plus locoregional hyperthermia: An effective treatment for patients with recurrent cervical carcinoma in a previously irradiated area”… This newly published study involved 47 patients with recurrent cervical carcinoma who had been previously irradiated. The patients were treated with simultaneous cisplatin and hyperthermia. The study concluded that cisplatin plus hyperthermia therapy “results in a high response rate and acceptable toxicity in patients with recurrent cervical cancer.”
8:05AM Oxford Industries misses by $0.19, misses on revs; guides for Q2; changes Fiscal yr end (OXM) 36.25 : Reports Q1 (Aug) earnings of $0.27 per share, $0.19 worse than the Reuters Estimates consensus of $0.46; revenues fell 16.3% year/year to $237.8 mln vs the $248 mln consensus. Co sees Q2 EPS of flat to slightly higher than last yrs $0.68, $0.69 consensus; sees Q2 rev flat to slightly higher than last yrs $291.0 mln vs. $287.69 mln consensus. The Company also announced that it has elected to shift its fiscal calendar to end each year at the end of the Saturday closest to January 31st. The Company believes that this change will better align its reporting schedule with its industry peers and major customers and will eliminate the perceived reporting lag associated with the Company’s current fiscal calendar. The new calendar coincides with the National Retail Federation’s reporting calendar. As a result of implementing this change, the Company will report an eight month transition period that commenced on June 2, 2007 and will conclude on February 2, 2008.
8:05AM Sirtris Pharma oral drug candidate SRT501 shown to be neuroprotective: implications for SIRT1 activation in neurodegenerative eye disorders (SIRT) 17.02 : Co announces that activation of SIRT1, a member of the sirtuin family of enzymes, was shown to be neuroprotective in an animal model of optic neuritis (inflammation of the optic nerve that can cause a complete or partial loss of vision). These findings appear in a poster presented at the 132nd Annual Meeting of the American Neurological Association, titled “Neuroprotection in CNS Demyelinating Disease by SIRT1 Activators: A Potential Oral Therapy.” According to the findings in this poster, oral dosing of SRT501, Sirtris’ proprietary formulation of resveratrol, reduced the loss of retinal ganglion cells and preserved axonal function in a pre-clinical model of optic neuritis.
8:05AM Yucheng Technologies announces risk management consulting and implementation contract wins (YTEC) 13.31 : Co announced its contract wins with Agricultural Bank of China, Bank of Beijing, Huishang Bank, and Guangdong Development Bank, to provide risk management/performance measurement consulting and implementation services. These contracts amount to approximately US$1 mln, covering the areas of fund transfer pricing, asset & liability management and cost allocation analysis. Yucheng was awarded these contracts in collaboration with leading global software vendors in the financial services industry.
8:03AM Osiris Therapeutics secures $30 mln financing commitment from Chairman and largest shareholder (OSIR) 12.76 : Co announces that it has entered into a financing agreement for up to $30 mln from Friedli Corporate Finance. Friedli Corporate Finance is owned by Peter Friedli who is the Chairman of the Board of Directors of OSIR and its largest shareholder. OSIR intends to use the net proceeds from any such sales of common stock for general corporate purposes, including supporting the co’s clinical trial activities.
8:02AM Computer Sciences announces $1.1 bln in previously unannounced Federal contracts (CSC) 56.65 : Co announces that since July 1, its North American Public Sector business unit has signed 123 previously unannounced contracts and subcontracts during its fiscal 2008 second quarter, which ended Sept. 28. These contracts have a total estimated value of approximately $1.1 bln if all contract options are exercised.
8:01AM Air Products Selected for Technology R&D project by National Institute of Standards and Technology (APD) 97.37 : The co and Konarka, have been selected by the National Institute of Standards and Technology, Advanced Technology Program to conduct research and development on transparent, flexible solar modules for windows and other building integrated applications. The $4.7 mln award is part of NIST’s Advanced Technology Program which looks to foster new technology developments by U.S. companies.
8:01AM Mesa Air says YoY available seat miles decreased 3.38% in Sept 2007 (MESA) 4.87 : Co announces that YoY available seat miles decreased 3.38% in September 2007 to 701,960 compared to 726,528 in Sept 2006. Rev passenger miles decreased 2.87% from 522,186 in 2006 to 507,196 in 2007. Passenger enplanements decreased 1.45% from 1,208,696 in Sept 2006 to 1,191,218 in Sept 2007. Year-over-year load factor for the month of Sept increased from 71.87% in 2006 to 72.25% in 2007.
8:01AM Thornburg Mortg revises estimates on asset sales and related losses announced in August; now estimates that it has sold approximately $22.0 bln vs prior est of $20.4 bln (TMA) 13.46 : Co announces the following adjustments and revisions to estimates that it had previously announced regarding certain financial developments that had taken place during the third quarter. First, the co now estimates that it has sold approximately $22.0 bln of high quality ARM assets since August 10, 2007, as opposed to the previously announced estimate of $20.4 bln in asset sales as of August 17, 2007, or an additional $1.6 bln in asset sales, during the quarter. The co also has revised its estimated aggregate loss for the third quarter resulting from asset sales to $1.099 bln, as opposed to the previously-announced loss estimate of $863 mln, or an increase of $236 mln in the estimated loss. The revision of the loss estimate is due primarily to the receipt of actual sale price documentation for asset liquidations conducted by third-party financing counter-parties as opposed to those sales conducted by the co, and to a lesser extent, to additional asset sales that occurred after August 17, 2007, as well as a $6 mln impairment charge on one mortgage-backed security backed by pay option ARMs. The realized losses on asset sales are capital losses for tax purposes and the impairment charge is an unrealized loss and thus not subject to tax. Accordingly, none of the entire $1.099 bln loss cited above will reduce the amount of taxable income available for dividend distribution in 2007. The co believes that the current credit reserves on the co’s balance sheet will be adequate to cover expected and potential future credit losses on its loan portfolio, as it has not experienced any material deterioration in the credit performance of its loan portfolio since July 31, 2007. The co estimates that seriously delinquent loans will represent 0.27% of the loan portfolio as of September 30, 2007, versus the estimate at August 17, 2007, of 0.23% of the loan portfolio as of July 31, 2007. Second, the co has now received revised market value prices for its securities portfolio as of September 30, 2007, and expects that its accumulated other comprehensive loss (a non-income statement item) will include a $286 mln unrealized market value loss on its mortgage securities portfolio as compared to a $262 mln market value loss estimated as of August 17, 2007. However, based on the co’s analysis of its mortgage securities portfolio, this unrealized market value loss is not expected to result in material actual credit losses. Rather, the co believes that the decreased market value is a reflection of the widening of risk premiums and lack of liquidity in all but the AAA-rated segment of the mortgage securities market. The co’s mortgage securities portfolio consists of 94% agency, AAA- and AA-rated mortgage-backed securities and only 6% below AA-rated mortgage-backed securities. These investments are performing consistently with the long-term historical experience of similarly rated securities and none of the ratings have been downgraded by any rating agency as a result of recent rating agency activity. Third, the co expects to report an estimated $16.0 mln loss on mortgage loans funded during the third quarter, which resulted primarily from fundings made during September 2007 for which the mortgage interest rate had been locked for borrowers prior to August 2007 and which the co was committed to fund at the locked rate. It is expected that the lower market value herein reflected will result in higher yields on these loans, which are scheduled to be securitized in the fourth quarter. This loss on the pipeline was partially offset by an estimated $4.1 mln gain on terminated hedging instruments. The resulting net loss totaled $11.9 mln in the third quarter.
8:00AM S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: -0.2. : Futures suggest a mixed open. Focus is on the Fed policy meeting minutes to be released at 2:00 ET, and whether there are indications to suggest further rate cuts are likely.
8:00AM HOKU Scientific announces TCS engineering contract for Hoku Materials’ polysilicon plant (HOKU) 9.04 : Hoku Materials, a wholly owned subsidiary of Hoku Scientific (HOKU), established to manufacture and sell polysilicon for the solar market, and Dynamic Engineering, a process technology and engineering firm, today announced that they have entered into an Engineering Services & Technology Transfer Agreement for Dynamic Engineering to provide design and engineering services, and a technology license, for Hoku Materials to build a trichlorosilane production and purification unit at its planned polysilicon production plant in Pocatello, Idaho. The agreement announced today provides for Dynamic to provide the basic engineering package and related services for the TCS production component of Hoku’s planned polysilicon plant, which will be integrated by Stone & Webster, a subsidiary of The Shaw Group, and Hoku’s engineering, procurement and construction management firm, into the overall polysilicon production facility, and will be constructed by JH Kelly, Hoku’s general construction contractor.
8:00AM Economic Calendar (BONDX) : FOMC minutes to the Sep 18th meeting are released at 14.
7:36AM On The Wires (WIRES) : deCODE genetics (DCGN) announces that it has begun enrolling patients for its Phase IIa clinical trial for DG051, the co’s leukotriene A4 hydrolase inhibitor being developed for the prevention of heart attack… Telefonica and Nokia (NOK) announce they are working together to accelerate the adoption of new Internet services on mobile devices by providing Telefonica customers with easy access to both Telefonica and Nokia Internet services. The collaboration includes areas such as menu customization, technology and billing co-operation.
7:32AM SAIC reaffirms FY08 guidance (SAI) 18.68 : Co reaffirms guidance for FY08 (Jan), sees EPS of $0.83-0.88 vs. $0.88 Reuters Estimates consensus; sees FY08 (Jan) revs of $8.7-9.0 bln vs. $8.85 bln consensus.
7:31AM AirNet Systems CFO resigns; Ray Druseikis appointed as interim Chief Financial Officer (ANS) 2.47 : Co announced that Gary W. Qualmann has resigned as Chief Financial Officer, Treasurer and Secretary of AirNet Systems, Inc. Ray L. Druseikis, 55, who has served as Vice President of Finance, Controller, and Principal Accounting Officer of AirNet Systems, Inc. since June 30, 2005, has assumed the role of Chief Financial Officer, Treasurer and Secretary on an interim basis effective immediately.
7:31AM Talbots retains consulting firm to support its development of a strategic plan (TLB) 18.31 : Co announces that it has retained a leading global business consulting firm to assist management in a strategic review of the Company with a focus on brand positioning. In addition to the positioning and expansion opportunities of the Talbots and J.Jill brands, the consulting engagement will address among other operating matters, store growth, productivity, non-core concepts, and distribution channels. The consulting engagement is expected to be completed by 1Q08.
7:30AM TASER granted summary judgment dismissing product liability lawsuit (TASR) 18.56 : Co announces that the United States District Court for the Eastern District of Louisiana granted TASER International’s motion for summary judgment in the case of Emile and Gwendolyn Smith v. TASER International, and ruled as a matter of law that: “The TASER stun did not contribute to Smith’s death.”
7:11AM Children’s Place lowers Q3, Y07 guidance; reports same store sales (PLCE) 24.32 : Co reports September same store sales -3% vs +1.0% Briefing.com consensus. Co sees Q3 EPS “at least 60% below the low end of its previous guidance of $0.94-1.02?, including approx $0.07 related to severance payments to the co’s former CEO. Co sees Q4 and Y07 EPS “significantly below the low end” of its previous EPS guidance of $1.79-1.86, and $2.25-2.40, respectively. Co will also reverse amounts which have been accrued in Y06 and 1H of Y07 for its long-term management equity compensation program, which amounts to a non cash gain of approx $0.25. Co believes unseasonably warm weather put substantial pressure on the business. CEO says, “Clearly we are disappointed with current business trends and our outlook for the second half of the year. Inc. Our results primarily reflect inventory levels at both brands that are higher than we would like given current sales trends, particularly at The Children’s Place brand. As a result, we had to take a substantial amount of unplanned markdowns during September, resulting in merchandise margins well below our plans. At this time, we believe these trends are likely to continue through the remainder of the year.”
7:08AM On The Wires (WIRES) : The Shaw Group (SGR) announces that its Environmental & Infrastructure Group has been awarded a Multiple Award Task Order Contract by the U.S. Army Corps of Engineers, and two design and build contracts by the Forest Service agency of the U.S. Dept of Agriculture… Syntax-Brillian (BRLC) announces the approval of a comprehensive 120-day action plan by the co’s new mgmt team and Board of Directors… Calamos Asset Management (CLMS) reports assets under management of $46.7 bln as of Sept 30, 2007, compared with $43.9 bln one month ago and $44.8 bln one yr ago… CEVA (CEVA) announces that N.X.P Semiconductors has chosen the CEVA-Teak D.S.P core for its highly integrated ultra low-cost single-chip solutions targeting low-cost and entry-level handset designs for emerging markets.
7:03AM ISIS Pharm receives $1.25 mln milestone payment from iCo for initiation of Phase 1 study of iCo-007 (ISIS) 16.64 : Co announces that it has received a $1.25 mln milestone payment in the form of equity securities in iCo Therapeutics. The milestone was related to the initiation of Phase 1 clinical trials of iCo-007, a drug licensed to iCo by Isis in 2005 for the treatment of various eye diseases, including diabetic macular edema.
7:01AM Orchid Biosci appoints James Smith Chief Financial Officer (ORCH) 5.55 :
7:01AM Molson Coors Brewing and SABMiller confirm to combine US operations in joint venture (TAP) 50.83 : SABMiller and TAP confirm that they have signed a letter of intent to combine the U.S. and Puerto Rico operations of their respective subsidiaries, Miller and Coors, in a joint venture. The new company, which will be called MillerCoors, will have annual pro forma combined beer sales of 69 mln U.S. barrels (81 mln hectoliters) and net revs of approximately $6.6 bln. Pro forma combined EBITDA will be approximately $842 mln. SABMiller and TAP expect the transaction to generate approximately $500 mln in annual cost synergies to be delivered in full by the third full financial year of combined operations. The transaction is expected to be earnings accretive to both companies in the second full financial year of combined operations.
7:00AM AT&T acquires Wireless Spectrum from Aloha Partners; will pay $2.5 bln in cash for the licenses (T) 41.93 : Co announces its board of directors has approved an agreement to purchase spectrum licenses covering 196 million people in the 700 MHz frequency band from Aloha Partners. AT&T will pay approximately $2.5 billion in cash for the licenses. The company anticipates receiving necessary government approvals and closing the transaction within six to nine months.
6:32AM Volcano announces a 6 mln share common stock offering pursuant to its effective shelf registration statement (VOLC) 17.18 :
6:31AM Marketaxess announces total monthly trading volume for Sept 2007 of $20.9 bln (MKTX) 15.84 : Co announces total monthly trading volume for September 2007 of $20.9 bln, consisting of $11.3 bln in U.S. high- grade volume, $3.9 bln in European high-grade volume, and $5.7 bln in other volume.
6:31AM Vical demonstrates dose-sparing of protein-based H5N1 influenza vaccine with Vaxfectin adjuvant (VICL) 4.88 : Co announces that data from a study in mice demonstrated the potential of its patented Vaxfectin adjuvant to be used as a dose-sparing agent with a protein-based H5N1 pandemic influenza vaccine currently stockpiled by the U.S. government. Dose-sparing ability could be critical in extending limited vaccine supplies to protect the greatest number of people in the event of a pandemic influenza outbreak. The co also announced that a measles DNA vaccine formulated with the company’s Vaxfectin adjuvant elicited sustained protective levels of neutralizing antibodies in infant nonhuman primates confirmed by complete protection following challenge one year after intradermal vaccination, with no clinical signs of disease and no culturable virus after challenge.
6:30AM Amtech Systems acquires solar automation co (ASYS) 12.28 : Co announces that it has acquired R2D Ingenierie, a solar cell and semiconductor automation equipment manufacturing co. Under the terms of the agreement, ASYS has acquired all the outstanding shares of R2D for a total purchase price of approximately $6.1 mln and has made a working capital infusion of $1.0 mln largely for solar business build-up.
6:21AM Solarfun Power appointes new CFO (SOLF) 12.74 : Co announces that Amy Liu will assume the role of Chief Financial Officer on Oct 31, 2007, replacing the outgoing Kevin Wei, whose employment contract expires on the same date. She joins Solarfun from Thermo Fisher Scientific.
6:19AM S&P futures vs fair value: +0.7. Nasdaq futures vs fair value: -4.8. :
6:18AM European Markets : FTSE…6591.30…+50.40…+0.8%. DAX…7973.41…-0.96…-0.0%.
6:18AM Asian Markets : Nikkei…17159.90…+94.86…+0.6%. Hang Seng…28228.04…+457.75…+1.7%.
6:14AM Inovio Biomedical redirects strategic emphasis toward DNA vaccines and DNA delivery (INO) 1.45 : Co announces it is focusing its research and development efforts on its electroporation-mediated DNA delivery technology and DNA vaccines with the objective of further building potential downstream value to existing and prospective partners. Overall, management has concluded that the potential return on capital invested in Inovio’s DNA delivery technology is significantly greater than the potential return on its Selective Electrochemical Tumor Ablation (SECTA) program. Therefore, Inovio will focus its research and development efforts on the DNA vaccine market while pursuing avenues for commercialization of the SECTA therapy.
6:11AM Volcano reports preliminary Q307 revenues above consensus (VOLC) 17.18 : Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of 31.5 mln vs. $29.60 mln Reuters Estimates consensus. Co says that the preliminary Q3 revenues represent a 28% increase in the sales of its Intravascular Ultrasound disposables in the US year-over-year and an overall increase of 24% in sales of IVUS disposables versus Q306.
6:08AM On The Wires (WIRES) : RadNet (RDNT) reports that it acquired Liberty Pacific Imaging Center in Encino, CA for $2.8 mln… Spectranetics (SPNC) announces it has received reimbursement approval from the competent governmental authority in Belgium for its lead removal and peripheral atherectomy product line, effective October 1, 2007.
6:05AM Advanced Medical Optics names new Chief Financial Officer (EYE) 32.05 : Co names Michael J. Lambert will join the co as CFO on October 15, 2007.
6:04AM Main Street Capital prices IPO of 4.0 mln shares at $15.00 per share (MAIN) :
6:01AM SLM files lawsuit relating to merger (SLM) 49.21 : Co announces that it has filed a lawsuit in Delaware Chancery Court against the buyer group, which includes J.C. Flowers & Co., JPMorgan Chase (JPM) and Bank of America (BAC). The lawsuit seeks, among other things, a declaration that the members of the buyer group have repudiated the merger agreement, that no Material Adverse Effect has occurred under the merger agreement, and that Sallie Mae may terminate the merger agreement and collect damages of $900,000,000.
3:06AM MediciNova reports positive Phase IIa clinical study results for MN-221 (MNOV) 8.08 : Co announces positive results from a Phase IIa clinical study of MN-221, its intravenous product candidate for the treatment of status asthmaticus (acute severe asthma attack). The study achieved statistical significance in its primary endpoint of mean change in FEV1 (forced expiratory volume in 1 second) from baseline at 15 minutes (the end of the infusion) at doses of 10, 16, 30 and 60 micrograms/min of MN-221 compared to placebo. There were no clinically significant cardiovascular, electrocardiogram, or vital sign changes, nor were there any other safety concerns observed at any dose tested.
1:33AM On The Wires (WIRES) : Energy Transfer Partners, LP (ETP) announces the planned expansion of two of the Partnership’s major Texas intrastate pipeline systems; cap ex for the two projects will total approx $260 mln… Biosearch Technologies announces it has been granted a worldwide license to the non-coding DNA patents owned by Genetic Technologies Ltd. (GENE)
1:29AM comScore announces preliminary Q307 results; guides revs and EPS higher (SCOR) 31.22 : Co issues upside guidance for Q3 (Sep), sees EPS of $0.15-0.17 vs. $0.12 Reuters Estimates consensus; sees Q3 (Sep) revs of $22.1-22.5 mln vs. $21.89 mln consensus. Adjusted EBITDA is anticipated to be in the range of $4.2 mln to $4.6 mln compared to the previous guidance of $3.4 mln to $3.5 mln.
1:25AM H.B. Fuller makes strategic portfolio move, exits automotive joint venture (FUL) 29.77 : Co announces that it has reached a definitive agreement to sell the entire stake in its automotive joint venture to the principal joint venture partner, EMS CHEMIE Holding AG of Switzerland, for a purchase price of $80 mln. The co anticipates this transaction will generate a one-time positive impact to pre-tax income of $10 to $13 mln. This includes the expected gain on the sale, partially offset by certain transaction-related costs. Aside from this one-time positive impact, the transaction is not expected to have a material effect on the net income in Q4; however, it will be slightly dilutive in FY08, by between $0.03 and $0.05 per diluted share.
1:22AM QLT acquires ocular drug delivery system from ForSight Labs (QLTI) 5.39 : Co announces that it has entered into an agreement under which QLT will acquire privately held ForSight Newco II. The acquisition includes ForSight Newco II’s proprietary ocular punctal plug drug delivery system with the potential for future multi-product opportunities. Under the terms of the agreement, QLT will acquire all of the outstanding shares of ForSight Newco II for $42 mln on closing along with future milestone payments and royalties on net sales of products. The milestone payments consist of a one-time $5 mln payment upon the initiation of a phase III clinical trial for the first product, $20 mln on first commercialization of each of the first two products using ForSight Newco II’s proprietary technology and $15 mln on first commercialization of each subsequent product.
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9th October 2007
Financial Tips for Somethings
Do young people today face different money issues than their parents did at their age?
Yes and no. We still need to save, invest, and plan. But on many objective measures, things are not going well for gen Y. The facts just keep coming: Average tuition is up over 250 percent since 1976, revolving debt is up 24 percent in the last five years, and 2004 male graduates earned less after inflation than they did 30 years ago. Half of recent college grads have failed to pay some of their debt. And there is a staggering array of places to spend our money, including online and on luxury goods that simply didn’t exist 20 years ago.
But I’m less interested in knowing the sociological trends than helping individuals start to manage their own money. Hopefully, by getting the discussion started in a refreshing way, we can all get our friends to pay attention to this stuff and start organically. As an example, the most common way people hear about my blog is through word of mouth. That tells me young people do care about their finances.
There are so many books out there on young people and money–Suze Orman’s The Money Book for the Young, Fabulous and Broke, for example. What’s different about your advice?
I always say that personal finance has been taught by old white men for old white men for way too long. If I see another newspaper column about saving money on lattes, I might just have to jump off a bridge with 68 iron weights in my hand.
There aren’t any secrets to personal finance. People have been saying similar things for 50 years: Know where your money is going, save more, invest your money, and grow it. But instead of seeming like lectures, personal finance can actually be relevant and engaging to young people. How do you make money as personal as talking to a friend? I try to tell stories about dumb things I’ve done with money, simple steps to save and invest, and how to think about money (like the difference between being cheap and frugal). And I think I have the best readers on the planet, who offer really smart comments on every post.
What kind of stories do you hear from your readers who are frustrated with their financial experiences?
The problem is not that we’re making bad personal-finance decisions. It’s that we’re not making personal-finance decisions at all. A lot of my friends don’t know how much their 401(k) match is or why a Roth IRA is a great choice. These are recent Stanford grads [like Sethi]. Part of it is our educational system, part of it is the complicated paperwork and messages that financial companies give us, and part of it is our own lack of personal responsibility. But no matter how you slice it, we need to step up and take control of our finances.
The second-most-common story I hear is not knowing where to get started. Should I pay off debt? How do I pick stocks? What savings account should I open? There’s so much noise that even the basics, like opening a high-interest savings account, have become complicated. Last year, I spoke to the Credit Union National Association about simplifying their offerings for young people. I wish more financial companies would pay attention to the needs of gen Y.
In your blog, you say that personal-finance experts have long lectured young people “not to buy lattes, fancy electronics, and expensive clothes. To which I always reply: How has that been working, grandpa?” So what kind of advice is more useful?
We don’t want to know about term life insurance or estate planning. Those words make our eyes glaze over, and more of the same personal-finance topics will produce similarly poor results. But we do care about money if it’s presented on our terms.
There’s a funny idea in our culture that more information is always good. But as Barry Schwartz noted in The Paradox of Choice, the more choices we have, the less likely we are to do anything. In a study about 401(k) participation, he wrote, “For every 10 funds added to the array of [401(k)] options, the rate of participation drops 2 percent.”
So if the average 20-something sees 20 fund choices at work for his 401(k), TV commercials about annuities, blog posts about Roth IRAs, and newspaper columns about not spending so much on lattes every day, what do you think he’ll do? Chances are: nothing. Over half of 20-somethings don’t contribute to retirement accounts. Forty percent don’t even deposit money regularly in a savings account.
We want to know two major things: how to figure out where our money is going and how to make it go where we want. Make it simple, make it interesting, and get other young people to join in on the conversation.
Name three things young people can do to improve their financial situation.
1) Getting started is more important than being the smartest person in the room. If I had a choice between being 100 IQ points smarter or starting to invest earlier, I’d choose starting earlier. I encourage young people to read enough to get started but not to worry about knowing every investing instrument under the sun. There are plenty of easy ways to get started, like a simple low-cost index fund. If you haven’t gotten started yet, try to systematically understand your personal barriers. Are you afraid of losing money? Are you not sure about how much money you actually spend each month? Then tackle them one by one.
2) Be strategic about spending. Instead of saying, “I guess that’s how much I spent last month,” be strategic about your spending. One of my most popular posts was about a friend who spends $21,000 per year going out. It seems outrageous, but he consciously spends that much after maxing out his investment options and giving to charity. By knowing what you value and where you’re spending, you can consciously decide if that’s how you want your money to go.
3) There’s a difference between being sexy and being rich. Lots of us get sucked up into the hype of fancy alternative investments and day-trading and the “Hot Stock of the Month!” I hate this so much. Those investment tips are designed to sell magazines, not good advice. The investment literature–and people like Warren Buffett–show that long-term, buy-and-hold investing wins. It’s not as exciting as buying and trading every day, but what would you rather be: sexy or rich?
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9th October 2007
Coors, Miller to Combine Operations
Molson Coors, SABMiller Plan to Combine U.S. Operations to Compete With Maker of Budweiser
The makers of Coors and Miller Lite plan to combine their U.S. brewing operations in an effort to compete better against industry leader Anheuser-Busch.
The joint venture announced Tuesday will be known as MillerCoors and will have responsibility for selling brands including Miller Lite, Miller Genuine Draft, Coors, Coors Light and Molson Canadian in the U.S.
Anheuser-Busch Cos. accounts for about half of the U.S. market with brands such as Budweiser, Michelob and Bud Light.
SABMiller PLC will have a 58 percent economic interest in the venture and MolsonCoors Brewing Co. will own 42 percent of the new company. They will have equal voting interests, however.
“It is clear Miller and Coors will be a stronger, more competitive U.S brewer than either company can be on its own,” said Molson Coors Chief Executive Leo Kiely, who will be the new CEO of the joint venture.
Shares of MolsonCoors climbed $5.03, or 9.9 percent, to $55.86 in late morning trading Tuesday. SABMiller shares rose 1.4 percent to 1,487 pence ($30.32) in trading in London.
The joint venture will also result in cost savings of $500 million, the companies said. That savings will mainly come from reducing shipping distances, finding economies of scale in brewing operations, optimizing production and eliminating duplicate corporate and marketing services.
London-based SABMiller, which brews Miller Lite as well as a slew of European beers, and Colorado-based Molson Coors, the brewer of Coors Light and the craft beer Blue Moon, will each have five representatives on its board of directors.
Pete Coors, vice chairman of Molson Coors, will serve as chairman of the new company and Kiely will be the new CEO. Tom Long, CEO of Miller, will be appointed president and chief commercial officer.
Under the terms of the agreement, the companies said they will conduct all of their U.S. business exclusively through the venture.
The companies project MillerCoors will have combined annual beer sales of 69 million U.S. barrels with revenue of about $6.6 billion.
Coors said the joint venture will allow both companies to compete for U.S. consumers who are “looking for greater choice and differentiation,” as wine and spirits continue to entice beer drinkers and imports and craft beers garner a larger share of the market.
The companies said by combining their U.S. operations, the venture will be able to invest more in marketing its brands to consumers and compete more effectively with larger brewers like Anheuser-Busch and InBev NV S.A., which imports a large number of global beers into the U.S. and is the world’s largest brewer by volume.
“Given the highly complementary nature of our U.S. assets, operations and geographic footprint, this is a logical and compelling combination that we expect will create significant value for shareholders while benefiting distributors, consumers, retailers and the market overall,” said SABMiller Chief Executive Graham Mackay.
Mackay said on a conference call with analysts the two companies will complement each other geographically, because Miller is strong in the central region down through Texas, while Coors has a strong reach in the West and parts of the Northeast. Coors’ two breweries and Miller’s six will remain open, executives said.
A decision on where headquarters will be is expected to be decided as the integration moves forward, said Malcom Wyman, SABMiller Chief Financial Officer. But the combined company will have a presence in Miller’s hometown of Milwaukee and Coors’ headquarters in Golden, Colo., he said. Miller has 6,000 employees and Coors has 4,000. Executives on the call estimated the new company would have 10,000 employees.
The companies said the deal will add to both of their earnings in the second full year of combined operations.
The companies said $50 million of the total cost savings will be recorded in the first full financial year after the two companies combine. Another $350 million will be saved in the second year and the last $100 million will come in year three.
The companies added they will have to make a one-time cash outlay of $450 million to achieve those savings.
A final agreement is expected to be signed by the end of 2007 with the deal closing in mid-2008, the companies said.