4:30 pm : Broad-based selling took the stock market roughly 2% lower for its worst performance in two weeks. Only on a few occasions did sellers let up, leaving stocks to settle at or near session lows.
Ripe for profit taking after a 6% weekly climb, stocks endured a steady descent today. The push lower began ahead of the open as early participants watched Europe's major bourses falter. Despite all the recent talk about comprehensive eurozone stability plans and deadlines, nothing of substance has been unveiled. Concern that fiscal and financial problems there could continue caused the region's major bourses to log losses well in excess of 1%. Meanwhile, the euro dropped 1.1% to $1.373.
Europe continues to take precedence over corporate headlines. Even a better-than-expected quarterly report from Citigroup (C 27.93, -0.47) couldn't keep the financial services giant from succumbing to broad market weakness. The stock settled near its session low after it had been up markedly in morning trade. Wells Fargo (WFC 24.42, -2.25) suffered its worst single-session percentage loss in two months, or its second worst in two years, after the lender's earnings came short of the consensus estimate. Concerted selling took financials down 3.3%, which is worse than what any other sector suffered, but marquee investment bank and brokerage outfit Goldman Sachs (GS 96.90, +0.17) managed to remain near the neutral line ahead of its report tomorrow morning.
Shares of Halliburton (HAL 34.48, -2.95) surged this past Friday, but the stock gave it all up as analysts shrugged off an upside earnings surprise to scrutinize the line items on the company's latest quarterly report. Several other oil and gas services stocks traded lower in sympathy.
Broad market weakness couldn't completely detract from the enthusiastic response made for a $38 billion merger between Kinder Morgan (KMI 28.19, +1.30) and El Paso (EP 24.45, +4.86). Shares of EP were able to set a new multi-year high.
Tech stocks failed to offer the same leadership that they have in recent sessions. Imbued by broad market weakness, the sector slid to a 1.8% loss. Heavyweight IBM (IBM 186.59, -3.94) was hit hard ahead of its quarterly report. The stock just set a new record high this past Friday.
Utilities were today's strongest performers. The defensive-oriented sector limited its loss to only 0.3%. Many electric utilities, most of which operate regulated businesses, were even able to produce positive returns today.
Although participants were decidedly pessimistic in their approach today, sending the Volatility Index more than 18% higher as of the close, there wasn't a great deal of share volume behind the effort. In fact, share volume on the NYSE failed to break 1 billion.
Advancing Sectors: (None)
Declining Sectors : Financials -3.3%, Materials -3.1%, Industrials -2.7%, Consumer Discretionary -1.9%, Tech -1.8%, Energy -1.7%, Health Care -1.7%, Consumer Staples -0.9%, Telecom -0.7%, Utilities -0.3% DJ30 -247.49 NASDAQ -52.93 NQ100 -1.6% R2K -3.4% SP400 -2.9% SP500 -23.72 NASDAQ Adv/Vol/Dec 463/1.68 bln/2076 NYSE Adv/Vol/Dec 571/905 mln/2456
3:30 pm : It was a relatively quiet start to the week for commodity futures. Gold, which ended lower by 0.4% at $1676.60 per ounce, and silver, which finished lower by 1.1% at $31.83 per ounce, sold off in late morning trade, dropping from the flat line down to respective lows at $1665.40 and $31.48. Both metals were able to bounce off those lows to end with modest declines on the day. In afterhours trade, metals have traded back toward lows. Note that the pullback in the precious metals did not correlate with any specific move in the dollar. Declining Sectors : Financials -3.3%, Materials -3.1%, Industrials -2.7%, Consumer Discretionary -1.9%, Tech -1.8%, Energy -1.7%, Health Care -1.7%, Consumer Staples -0.9%, Telecom -0.7%, Utilities -0.3% DJ30 -247.49 NASDAQ -52.93 NQ100 -1.6% R2K -3.4% SP400 -2.9% SP500 -23.72 NASDAQ Adv/Vol/Dec 463/1.68 bln/2076 NYSE Adv/Vol/Dec 571/905 mln/2456
Crude oil finished lower by 0.4% at $86.38 per barrel, after it spent the session chopping around the flat line. Natural gas shed 0.7% to close at $3.68 per MMBtu. DJ30 -221.23 NASDAQ -50.58 SP500 -20.93 NASDAQ Adv/Vol/Dec 486/1.3 bln/2053 NYSE Adv/Vol/Dec 599/566.6 mln/2459
3:00 pm : Stocks have started to work their way up from session lows. Losses remain steep and broad, though. In fact, the S&P 500 is still on pace for its worst one-day drop since a near 3% loss suffered in the first few days of the month. Share volume hasn't exactly been robust today. In fact, not even a half billion shares have been traded on the Big Board thus far, and only an hour remains before the close. DJ30 -212.64 NASDAQ -49.74 SP500 -20.46 NASDAQ Adv/Vol/Dec 440/1.14 bln/2090 NYSE Adv/Vol/Dec 540/485 mln/2450
2:30 pm : All three major equity averages are approaching 2% losses. That's got them all at their lowest levels of the day. Materials stocks remain today's worst performers. The sector has slumped to a 3.2% loss as metals and mining plays come under sharp pressure. Financials and industrials aren't much better off; they're down 2.8% and 2.5%, respectively.
Utilities continue to limit losses. The defensive-oriented sector has spent virtually the entire session dancing along the neutral line -- it is down only 0.1% at the moment. DJ30 -224.03 NASDAQ -52.14 SP500 -21.96 NASDAQ Adv/Vol/Dec 450/1.05 bln/2060 NYSE Adv/Vol/Dec 575/445 mln/2405
2:00 pm : Stocks have been unable to put together any kind of climb that would take them off of session lows. Weakness has been even more pronounced among small-cap and mid-cap stocks, which are down 2.7% and 2.5%, respectively. Amid such persistent weakness the Volatility Index has spiked 14% so that it is back above 32 after it had been at a two-month low this past Friday.DJ30 -200.79 NASDAQ -47.59 SP500 -19.26 NASDAQ Adv/Vol/Dec 445/970 mln/2050 NYSE Adv/Vol/Dec 575/405 mln/2400 1:30 pm : Treasuries have successfully ticked higher in response to the stock market's slump this session. Interest in the safety of the 10-year Note has its yield back below 2.20%.
The dollar also continues to benefit from buying interest. It has held steady to a gain of about 0.6% against a basket of major foreign currencies. DJ30 -188.99 NASDAQ -45.37 SP500 -18.09 NASDAQ Adv/Vol/Dec 440/895 mln/2045 NYSE Adv/Vol/Dec 575/370 mln/2390
1:00 pm : The major equity averages are trading at session lows as participants turn against stocks on the heels of the market's best performance in more than two years. Last week the S&P 500 ascended to a 6% gain, but the swiftness of such a substantial move has tired some. That has opened the door for sellers, many of whom are skeptical of the market's ability to sustain its gains as officials in Europe seem to merely pay lipservice to the tenuous fiscal and financial conditions of the continent.
Concern about the exposure of banks to the flagging eurozone was hardly quelled by a better-than-expected quarterly report from Citigroup (C 28.00, -0.40). The feat by the diversified financial services giant has been largely regarded as company specific. That said, Wells Fargo (WFC 24.81, -1.86) has been cut down aggressively; its 7% slump comes in response to an earnings miss. Collectively, financial stocks are down 2.6%.
Also on the earnings front, Halliburton (HAL 34.63, -2.80) shares have fallen precipitously as analysts question some of the numbers behind the company's latest quarterly report, which was actually headlined by an upside earnings surprise. Elsewhere in the energy sector, Kinder Morgan (KMI 28.54, +1.65) and El Paso (EP 24.24, +4.65) have both benefited from news that the two have struck a $38 billion merger agreement. Overall, energy stocks are down 1.3%.
Tech has found favor among in recent sessions, but today the sector has descended to a 1.8% loss. In contrast, utilities have offered market participants a corner to hide from broad market weakness. The sector is currently flat. DJ30 -206.70 NASDAQ -49.64 SP500 -19.55 NASDAQ Adv/Vol/Dec 430/820 mln/2030 NYSE Adv/Vol/Dec 590/335 mln/2360
12:30 pm : Shares of Halliburton (HAL 34.99, -2.44) are down sharply today. The stock's slump comes as analysts and investors question the underlying fundamentals of the company's latest quarterly report. As a result, the company's upside earnings surprise has been widely disregarded. The stock's weakness has imbued shares of other oil and gas services plays. Not all news is bad in the energy sector, however. News of a $38 billion merger between Kinder Morgan (KMI 28.52, +1.63) and El Paso (EP 24.20, +4.61) has been met with a positive response by investors on both sides of the deal. DJ30 -168.10 NASDAQ -41.48 SP500 -16.43 NASDAQ Adv/Vol/Dec 440/725 mln/2000 NYSE Adv/Vol/Dec 595/300 mln/2335
12:00 pm : Sellers have redoubled their efforts, quashing the stock market's recent recovery effort. As a result, the Dow is back at its lowest level of the day, while the Nasdaq notches a new session low. The S&P 500 has yet to confirm the move, but it is also under pressure. DJ30 -160.94 NASDAQ -36.86 SP500 -15.39 NASDAQ Adv/Vol/Dec 515/625 mln/1900 NYSE Adv/Vol/Dec 675/265 mln/2245 Financials have been in focus for several weeks, frequently determining the overall direction of the stock market. The sector has managed to stem losses, but it is still down 2.0% for the day. Meanwhile, tech stocks, which collectively make up the largest sector by market weight, are down 0.8% and adding to the drag on trade. DJ30 -133.66 NASDAQ -25.50 SP500 -12.24 NASDAQ Adv/Vol/Dec 480/540 mln/1900 NYSE Adv/Vol/Dec 595/225 mln/2290
11:00 am : The major equity averages continue to descend deeper into negative territory. As such, the Dow, Nasdaq, and S&P 500 are now at session lows. The dollar has attracted buying interest today. It is currently up 0.6% against a basket of major foreign currencies. The euro has been especially weak amid concerns that eurozone officials may be struggling to come up with a comprehensive plan capable of stabilizing the fiscal and financial conditions in the region. The euro was last quoted with a 0.8% loss at $1.376. DJ30 -134.34 NASDAQ -29.75 SP500 -13.44 NASDAQ Adv/Vol/Dec 490/425 mln/1825 NYSE Adv/Vol/Dec 635/180 mln/2200
10:35 am : Commodities are starting off the week in the red, while the dollar index continues to trade near its session high. the CRB Commodity Index, which is mixed overall this morning, fell as far as 314.64 and is currently down 0.7% at 314.86.Energy markets are showing modest weakness, while the agriculture space is showing the most weakness, especially in soft commodities (coffee -4.5%, cocoa -1.8%).
Crude oil was just above the $87 level and barely showing a gain just ahead of pit trading. However, shortly after pit trading began, crude fell into the red and hit a new session low of $85.89/barrel about 40 minutes ago. In current activity, crude is down 0.6% at $86.25/barrel. Natural gas is trading 0.7% lower at $3.68/MMBtu.
Gold has been chopping around the unchanged line this morning and is currently just under the flat line; now at $1680.90, down $2.10. Silver futures has been in the red over the past hour and is now down 0.7% at $31.97/oz.DJ30 -139.26 NASDAQ -27.81 SP500 -14.38 NASDAQ Adv/Vol/Dec 475/388 mln/1825 NYSE Adv/Vol/Dec 620/166 mln/2207
Financials are back to a 1.5% loss, but it's the materials sector that is in the worst shape of all. As a group, materials stocks are down 2.0%. Diversified metals and miners and steel stocks are among the poorest performers in the basic materials space. DJ30 -90.98 NASDAQ -19.84 SP500 -10.02 NASDAQ Adv/Vol/Dec 490/125 mln/1615 NYSE Adv/Vol/Dec 670/65 mln/2035
09:45 am : Financials quickly fell to a loss of about 1.5%, but the sector has almost halved that. Citigroup (C 29.33, +0.93) is showing leadership after posting a better-than-expected quarterly report. Wells Fargo (WFC 25.27, -1.40) has fallen more than 5% following an earnings miss, however.
Utilities, telecom, and consumer staples stocks -- all defensive in orientation -- are holding up the best this morning. Each sector has limited its loss to only 0.1%. DJ30 -57.86 NASDAQ -11.15 SP500 -6.22 NASDAQ Adv/Vol/Dec NA/NA/NA NYSE Adv/Vol/Dec NA/NA/NA
09:15 am : S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -15.30. Stock futures suggest that the broad market will be challenged to build on last week's climb, which made for the best weekly performance by the S&P 500 in more than two years. Pressure this morning comes as many market participants continue to take their cues from Europe's major bourses, which have faltered in recent action. Europe's bourses, and domestic stock futures for that matter, had been helped higher earlier amid reports that European officials have been pressed to quickly develop a comprehensive solution that will help stabilize the region's precarious fiscal and financial conditions. However, suspicion that such a solution will continue to elude leaders has undermined sentiment.
Given the magnitude and implications of problems in Europe, earnings have been relegated to something of secondary concern. As such, an upside earnings surprise from Citigroup (C) has only lifted its shares ahead of the open. Meanwhile, an earnings miss by Wells Fargo (WFC) has weighed on the stock in premarket trade.
Data hasn't done anything to excite early participants. More specifically, the latest Empire State Manufacturing Index, which barely improved from the prior month, remains negative. September industrial production numbers, which were released only moments ago, showed a 0.2% increase, just as analysts had generally expected.
09:05 am : S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -14.80. Stock futures have slipped some more in recent trade. Meanwhile, action among commodities has been rather subdued. Oil prices are up 0.3% to $87.05 per barrel in the first few minutes of pit trade. Natural gas prices are up 0.5% to $3.72 per MMbtu. Precious metals have been quiet in recent trade. That has left gold prices just 0.1% higher at $1685.50 per ounce, while silver prices are up only fractionally to $32.20 per ounce.
08:35 am : S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: -6.80. Still trailing fair value by a narrow margin, stock futures haven't really moved in response to the Empire State Manufacturing Index for October. It improved marginally to -8.5 from -8.8 in the prior month, but still came short of the -4.0 that had been expected, on average, among economists polled by Briefing.com.
08:05 am : S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -6.80. Stock futures have drifted lower so that a modestly lower start is now expected to follow last week's 6% climb, which made for the broad market's best weekly performance in more than two years. The relatively tepid tone comes as Europe's major bourses trade in lackluster fashion and the euro retreats against the greenback. The underwhelming action there follows a weekend G20 summit, in which leaders of Europe were pressed to resolve the region's debt woes within a week. Financial outfits Citigroup (C) and Wells Fargo (WFC) recently reported their latest quarterly results. Citigroup posted a better-than-expected bottom line, thereby boosting its shares by about 1% in premarket trade. In contrast, Wells Fargo came short of the consensus earnings estimate, causing shares to fall 3% ahead of the open. Still on the calendar, the latest Empire State Manufacturing Index will be available at the bottom of the hour. Monthly industrial prodution data follows at 9:15 AM ET.
06:45 am : [BRIEFING.COM] S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: +8.80.
06:45 am : Nikkei...8879.60...+131.60...+1.50%. Hang Seng...18873.99...+372.20...+2.00%.
06:45 am : FTSE...5518.07...+51.70...+1.00%. DAX...6023.81...+56.60...+1.00%.
In Play
5:55PM Air Lease announces continuing lease placements and acquisitions of 12 additional aircraft (AL) 19.36 -0.05 :
5:55PM Sunpower: SolarBridge collaborates with SunPower to deliver AC Panels (SPWRA) 8.81 -0.09 : SolarBridge Technologies announced a strategic relationship with SunPower (SPWRA, SPWRB), to supply the company with SolarBridge PantheonTM microinverters for the SunPower(R) E18 & E19 AC Solar Panel series. The AC Solar Panel provides an ultra high-efficiency, easy-to-install rooftop PV solution.
5:38PM Fluidigm and Research instruments enter distribution deal for dingapore and Thailand (FLDM) 13.91 -0.34 : Co appointed Research Instruments Pte Ltd/RI Technologies Ltd. as its distributor in Singapore and Thailand. Research Instruments will offer Fluidigm's complete portfolio of BioMar HD, EP1, and Access Array Systems, the complete line up of Dynamic Array, Digital Array and Access Array IFCs for real-time PCR, digital PCR, single-cell gene expression, sample preparation for next-generation sequencing, genotyping, and Fluidigm new DELTAgene and SNPtype assay
5:31PM PolyOne expands globalization with new Middle East joint venture (POL) 11.03 -0.35 : Co announced an agreement with E.A. Juffali & Brothers Company Limited to form a joint venture that will enable PolyOne to expand its Global Color, Additives and Inks business into the Middle East. The new joint venture will be 51% owned by PolyOne and will be based in Jeddah, Saudi Arabia.
5:30PM Take-Two Interactive Software amends senior secured revolving credit facility (TTWO) 13.92 -0.12 : Co announced that it has amended its senior secured revolving credit facility. As amended, the credit facility provides for borrowings of up to $100 million, plus an additional $40 million accordion feature, for a period of five-years. The credit facility may be used to fund working capital, letters of credit and for other general corporate purposes. Prior to the amendment, the Company's credit facility was undrawn and scheduled to expire on July 3, 2012. Lenders participating in the amended credit facility include Wells Fargo Capital Finance, Inc., which will serve as the administrative agent, and JPMorgan Chase Bank, N.A.
5:18PM Brown & Brown beats by $0.01, beats on revs (BRO) 17.93 -0.51 : Reports Q3 (Sep) earnings of $0.31 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 5.2% year/year to $260.4 mln vs the $257 mln consensus.
5:17PM Western Alliance Bancorp beats by $0.02 (WAL) 5.47 -0.48 : Reports Q3 (Sept.) earnings of $0.08 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.06.
5:03PM Packaging color- co reports in-line Q3 EPS ex-items (PKG) 24.66 -1.05 : Excluding items, the co reported Q3 (Sep) earnings of $0.43 per share, in-line with the Capital IQ Consensus Estimate of $0.43 (see 17:01 comment)
5:00PM CVD Equipment expands (CVV) 15.77 +0.74 : Co announced that it has entered into an agreement reinstating and amending the Contract to purchase a 120,000 square foot facility in Central Islip, NY. The purchase price and the target closing date in the amended agreement are the same as in the original agreement, as are substantially all of the other material terms.
5:00PM State Auto Financial estimates impact of catastrophe losses on Q3 results at ~$60-63 mln (STFC) 12.61 -0.40 : Co announced its preliminary estimate of the impact of catastrophe losses on its third quarter results. The company estimates Q3 2011 results will include between $60 million and $63 million in pre-tax catastrophe losses, which includes ~$25 million of prior period development from second quarter 2011 catastrophes. Catastrophic events during the third quarter included Hurricane Irene (~$16 million) and other catastrophe events. Prior to 2011, STFC's historic five-year average catastrophe losses for the third quarter are ~$25 million.
4:38PM Kingsway Fin announces Broad settlement ending Pennsylvania litigation (KFS) 0.72 +0.00 : Co announced a settlement and release ending all legal disputes between the Company and the Pennsylvania Insurance Department. As previously disclosed, the Department sued the Company and twenty different charities on November 20, 2009, after Kingsway disposed of its interest in Walshire Assurance and Lincoln General Insurance in October 2009 by donating its Walshire shares to the charities. On April 1, 2010, the Department's claims that the disposition was improper were dismissed, but the Department appealed to the Pennsylvania Supreme Court.
4:34PM Lincare reports EPS in-line, beats on revs (LNCR) 21.68 -0.57 : Reports Q3 (Sep) earnings of $0.48 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.48; revenues rose 13.4% year/year to $474.8 mln vs the $455.1 mln consensus. "We continue to focus on those activities that we believe will drive the long-term success of our Company - an emphasis on organic revenue growth driven by our market leading positions in our core respiratory service lines and expansion of our product offerings across our national network of local distribution and sales centers.."
4:31PM Compass Group announces sale of Staffmark Holdings for $295 mln (CODI) 13.28 -0.40 : Co announced today that it has simultaneously entered into a definitive agreement to sell and consummated the sale of its majority owned subsidiary, Staffmark Holdings to a subsidiary of Japan-based Recruit for a total enterprise value of $295 million.
4:30PM Newpark Res also issues preliminary Q3 results, sees EPS of $0.22-0.23 vs. $0.17 Capital IQ Consensus (NR) 7.73 +0.30 : Co issues upside guidance for Q3 (Sep), sees EPS of $0.22-0.23 vs. $0.17 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $260 mln vs. $233.49 mln Capital IQ Consensus Estimate.
4:17PM Watson Pharm confirms Atelvia patent challenge (WPI) 67.92 -0.32 : Co confirmed that its subsidiary, Watson Laboratories - Florida, filed an ANDA with the U.S. FDA seeking approval to market Risedronate Sodium Delayed-release Tablets, 35 mg. Watson's Risedronate Sodium Delayed-release Tablets are a generic version of Warner Chilcott (WCRX)'s Atelvia delayed-release tablets. Warner Chilcott (US), LLC and Warner Chilcott Company, LLC filed suit against Watson on October 12, 2011 in the United States District Court for the District of New Jersey seeking to prevent Watson from commercializing its product prior to the expiration of U.S. Patent Nos. 7,645,459 and 7,645,460. The lawsuit was filed under the provisions of the Hatch-Waxman Act, resulting in a stay of final FDA approval of Watson's ANDA for up to 30 months from the date that Warner Chilcott received notice of Watson's ANDA filing or until final resolution of the matter before the court, whichever occurs sooner, subject to any other exclusivities.
4:17PM IBM beats by $0.06, reports revs in-line; raises FY11 EPS above consensus (IBM) 186.59 -3.94 : Reports Q3 (Sep) earnings of $3.28 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $3.22; revenues rose 7.8% year/year to $26.16 bln vs the $26.25 bln consensus. Co issues upside guidance for FY11, raises EPS to at least $13.35, excluding non-recurring items, from at least $13.25, vs. $13.30 Capital IQ Consensus Estimate. Gross margin +140 bps YoY to 46.8%. Total Global Services revenues increased 8% (2%, adjusting for currency). Global Technology Services segment revenues increased 9% (3%, adjusting for currency) to $10.3 billion. Global Business Services segment revenues were up 6% (flat, adjusting for currency) at $4.8 billion. Revenues from the Software segment were $5.8 billion, an increase of 13% (8%, adjusting for currency). Software pre-tax income of $2.2 billion was up 12% year over year. Revenues from the Systems and Technology segment totaled $4.5 billion for the quarter, up 4% (1%, adjusting for currency) from the third quarter of 2010. Systems and Technology pre-tax income was $318 million, an increase of 8% year over year. The Americas' third-quarter revenues were $10.9 billion, an increase of 7% (6%, adjusting for currency) from the 2010 period. Revenues from Europe/Middle East/Africa were $8.0 billion, up 9% (flat, adjusting for currency). Asia-Pacific revenues increased 10% (1%, adjusting for currency) to $6.5 billion.
4:16PM Newpark Res announces that James Braun, Senior Vice President and Chief Financial Officer intends to leave the Company on October 31, 2011 (NR) 7.73 +0.30 : Co announces that James Braun, Senior Vice President and Chief Financial Officer, has informed the Board of Directors that he intends to leave the Company on October 31, 2011, after completing his responsibilities associated with the filing of the Company's Quarterly Report on Form 10-Q for the third quarter with the SEC. Mr. Braun will be assuming a CFO position with another company in the industry. The Company has announced that its current Vice President and Chief Accounting Officer, Gregg Piontek, age 41, will be promoted to Vice President and CFO effective November 1, 2011, as Mr. Braun's successor.
4:15PM IBM -- Earnings Mover (IBM) 186.59 : Stock drops roughly 3-4 pts in initial reaction to earnings, currently down along the $182.00-183.00 zone. Initial support up here is along the $179.00-181.00 level.
4:15PM Crocs to resume trading at 16:30 ET (CROX) 26.64 -0.33 :
4:14PM Enzon announced that Ana Stancic, current Senior Vice President, Finance and CFO has been promoted to COO; effective immediately (ENZN) 7.40 -0.25 : She will also continue serving in her role as Chief Financial Officer. Ralph Del Campo, former Chief Operating Officer and Principal Executive Officer, has stepped down from his position to pursue other interests.
4:11PM SuccessFactors raises Q3 EPS, rev guidance (SFSF) 26.09 -0.13 : Co issues upside guidance for Q3 (Sep), sees non-GAAP EPS above break even, up from break even vs. $0.01 Capital IQ Consensus Estimate; raises Q3 (Sep) non-GAAP revs to $93-95 mln from $83-84 mln vs. $83.62 mln Capital IQ Consensus Estimate; billings +40-42% YoY.
4:11PM VMware beats by $0.03, beats on revs; guides for Q4 revs of $1.03-1.06 bln (VMW) 86.52 -3.56 : Reports Q3 (Sep) earnings of $0.53 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 31.9% year/year to $941.9 mln vs the $929 mln consensus. License revenues for Q3 were $444 mln, an increase of 29% from the third quarter of 2010. U.S. revs for Q3 grew 22% YoY to $443 mln. International revenues grew 42% YoY to $498 mln. Co issues guidance for Q4, sees Q4 revs of $1.03-1.06 bln vs. $1.03 bln Capital IQ Consensus Estimate.
4:08PM Argan announces special cash dividend of $0.50 per share of common stock (AGX) 9.87 -0.36 :
4:08PM Regeneron Pharms announces that it intends to offer, $400 million aggregate principal amount of convertible senior notes due 2016 in a private placement (REGN) 64.63 +0.68 : Co announces it intends to offer, subject to market and other conditions, $400 mlnaggregate principal amount of convertible senior notes due 2016 in a private placement. The co also intends to grant to the initial purchaser a 13-day option to purchase up to an additional $60 mln aggregate principal amount of notes on the same terms and conditions. The co intends to use a portion of the proceeds of the offering, together with the proceeds from the warrant transactions, to fund the cost of the convertible note hedge transactions in connection with the offering. The co intends to use the remaining net proceeds for general corporate purposes.
4:07PM A. Schulman announces distribution agreement for ELIX Polymers' ABS grades In Europe (SHLM) 18.77 -0.39 : Under the agreement, Schulman has assumed responsibility for distribution of ELIX's acrylonitrile butadiene styrene grades, which are currently marketed under the trade names of Lustran and Novodur, in Germany, Switzerland, Austria, the Benelux countries, France, Great Britain and Scandinavia. In addition to taking over distribution, A. Schulman will provide key account support for these products.
4:07PM Safe Bulkers beats by $0.03, beats on revs (SB) 6.30 -0.28 : Reports Q3 (Sep) earnings of $0.37 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.34; revenues rose 4.2% year/year to $42.5 mln vs the $40.4 mln consensus.
4:06PM KBR announces first license for the Advanced Catalytic Olefins Process (KBR) 27.26 -1.37 : Co announces it was awarded a License and Process Design Package contract for a new olefins production unit using the Advanced Catalytic Olefins technology. This award represents the first license using this innovative technology which catalytically cracks naphtha and other straight run feeds to produce olefins yields which surpass those available from traditional steam cracking technology.
4:06PM STR Holdings expects Q3 revenue to in line and EPS $0.01-0.02 lower than previously published guidance; withdrawing 2011 guidance (STRI) 8.68 -0.35 : Co announced that it expects revenue for the third quarter of 2011 to be in line with previously published guidance of $51 to $57 million ($52.62 mln consensus). Revenue from the Company's recently divested Quality Assurance business will be presented in discontinued operations when results are reported. The Company cautioned that third quarter non-GAAP earnings could be $.01 to $.02 per share lower than the previously published guidance range of $0.12 to $0.16 per share ($0.10 current estimate). The final determination of earnings per share is subject to a number of factors currently being estimated in accordance with normal accounting practices, including the effective tax rate and the appropriate level of bad debt reserves. Due to the lack of clarity regarding global demand for solar products during the fourth quarter 2011, the Company is also withdrawing its previously published annual 2011 guidance. "As we advised during our second quarter earnings conference call, our guidance was based on expectations for increased demand due to a number of factors including increased demand generated from the clearing of solar panel inventory, a restoration of project financing in Europe, decreased module ASPs and a pull-in effect in advance of feed-in tariff reductions in Germany... We were not alone in this view. However, as has been widely reported, demand for solar modules has not yet recovered."
4:06PM Mindspeed announces Stephen Ananias as Senior Vice President and Chief Financial Officer (MSPD) 5.51 -0.23 : Mr. Ananias joins the company from Broadcom (BRCM) where he served for more than 11 years in various finance positions of increasing responsibility, most recently as controller.
4:06PM Paragon Shipping announces the sale of a Handymax Vessel for a gross price of $14 mln (PRGN) 1.16 -0.04 : The vessel is scheduled to be delivered to her new owners by no later than the end of November 2011.
4:03PM WD-40 beats by $0.09, beats on revs; guides FY12 EPS in-line, revs in-line (WDFC) 42.28 -2.27 : Reports Q4 (Aug) earnings of $0.61 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.52; revenues rose 12.4% year/year to $90.7 mln vs the $87.9 mln consensus. Co issues in-line guidance for FY12, sees EPS of $2.28-2.40 vs. $2.32 Capital IQ Consensus Estimate; sees FY12 revs of $353-370 mln vs. $353.74 mln Capital IQ Consensus Estimate.
4:03PM ICU Medical beats by $0.08, reports revs in-line; raises FY11 EPS above consensus, revs in-line (ICUI) 37.78 -1.74 : Reports Q3 (Sep) earnings of $0.65 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 0.9% year/year to $76.3 mln vs the $76 mln consensus. Co raises guidance for FY11, raises EPS to $2.43-2.54 vs. $2.42 Capital IQ Consensus Estimate, up from $2.35-2.50; raises FY11 revs of $300-305 mln vs. $304.65 mln Capital IQ Consensus Estimate, up from $297-305 mln.
4:03PM Crocs shares halted on guidance (CROX) :
4:02PM Applied Industrial names Neil Schrimsher as its New Chief Executive Officer; effective October 25 (AIT) 29.68 -0.92 : Mr. Schrimsher was most recently Executive Vice President of Cooper Industries where he lead multiple businesses in Cooper's (CBE) Electrical Products Group and headed numerous domestic and international growth initiatives. Prior to joining Cooper in 2006 as President of Cooper Lighting, he worked in Atlanta for Siemens Energy & Automation, part of Siemens AG (SI) as Vice President, Residential Infrastructure Division (2001-2003), and Vice President, Power Distribution & Controls (2003-2006).
4:01PM Ingram Micro sees Q3 EPS of $0.32-0.34 vs $0.41 Capital IQ Consensus Estimate; sees revs ~$8.9 bln vs $8.91 bln Capital IQ Consensus Estimate (IM) 18.72 -0.38 : Co said EPS were impacted by the following factors: 1) The market-share recovery in Australia following the implementation of a new enterprise resource planning (ERP) system is progressing at a slower pace than the company anticipated at the start of the third quarter. Efforts to restore revenues are requiring additional marketing costs and competitive pricing actions; 2) In Europe, demand was soft throughout the quarter, particularly in consumer-related segments, which led to a more competitive environment. Co said, "These factors dampened gross margins and operating leverage, which brought earnings per share below the company's expectations for the quarter. Demand in our key customer segment, which serves small and medium businesses, remained relatively solid in most parts of the world. Most areas of our business are performing well, outside of the recovery efforts in Australia and the effects of the European economy. We look forward to providing greater detail on our operations and results during our conference call with investors on October 27."
4:00PM PF Chang's announced it has signed an exclusive development and licensing agreement with Alsea (PFCB) 27.74 -0.70 : Co announced it has signed an exclusive development and licensing agreement with Alsea, S.A.B. de C.V. to develop Pei Wei Asian Diner throughout Mexico. The agreement stipulates the opening of three restaurants during the first 18 months, and provides an option for a long-term contract with a commitment to open 50 restaurants over 10 years. The first location is anticipated to open in Mexico City in the next few months.
3:23PM KBW Regional Bank ETF retests session low after limited bounce attempt (KRE) 20.73 -0.81 : BOH, CVBF, FMER, FULT, MBFI, ONB, PACW, SBNY, SIVB, UMPQ, WTFC, CBU, TCBI, EWBC. 3:06PM Afternoon lift off lows, Dow -203 has bounced roughly 50 points -- S&P -19, Nasdaq Comp -47 (SPY) : Relative sector strength on this move (outperforming the S&P) has been noted in Transports/Airline/Rail IYT/FAA, Housing XHB, Retail XRT, Software IGV, Networking IGN.
2:43PM Opko Health announced that Thomas Kodadek has been awarded $4.2 mln from the National Institutes of Health to advance research into Type 1 diabetes (OPK) 5.18 +0.03 : 2:42PM NYMEX Energy Closing Prices (COMDX) : Crude oil settled lower by $0.42 at $86.38, natural gas ended lower by 2 cents at $3.68, heating oil ended lower by 4 cents at $3.01, while RBOB gasoline shed 8 cents to close at $2.74.
2:01PM Overstock.com announces East Texas trial victory invalidating Alcatel-Lucent (ALU) 'Communication Protocol' patent (OSTK) 10.22 -0.07 : Co announced victory in its two-year patent infringement lawsuit with Alcatel-Lucent USA, Inc. The jury found that O.co and co-defendant Newegg did not infringe any of the three patents Alcatel asserted against them. The jury also rendered a verdict of "invalidity" on an Alcatel communications protocol patent, United States Patent 5,649,131 ('131 patent), that has been the subject of numerous lawsuits around the country.
2:00PM CME Group announces open interest in power contracts reaches one bln megawatt hours (CME) 255.48 -4.23 : 1:46PM Acorn Energy announces a special year-end dividend of $0.05/share; to be paid in January 2012 to stockholders of record on December 30, 2011 (ACFN) 5.30 -0.07 :
1:40PM Stock indices slide slightly extended -- Dow -209, S&P -20, Nasdaq Comp -49 (SPY) :
1:31PM COMEX Metals Closing Prices (COMDX) : Gold futures ended lower by $7.20 to $1675.80, silver shed 41 cents to close at $31.77, while copper finished down 3.1 cents at $3.377 (all Dec contracts).
1:10PM Agenus compliant With NASDAQ listing requirements - Company has regained compliance with the $1.00 bid price requirement (AGEN) 2.75 -0.07 : Co announced that it has received notice from the NASDAQ Listing Qualifications Panel that the Company has regained compliance with the $1.00 bid price requirement set forth in NASDAQ Listing Rule and otherwise satisfies all requirements for continued listing on The NASDAQ Capital Market.
1:02PM American Airlines and Amadeus Ink announce medium-term distribution agreement (AMR) 2.73 -0.22 : American Airlines, a wholly owned subsidiary of AMR, announced it has reached a medium-term agreement to extend its previous full-content agreement with Amadeus, a leading travel technology partner and transaction processor for the global travel and tourism industry. Under this agreement, Amadeus travel agencies will continue to have access to American Airlines fares and inventory with no change from the previous agreement. Additional terms of the agreement were not disclosed.
12:50PM Fresh session lows in midday trade -- Dow -182, S&P -18, Nasdaq Comp -45 (TECHX) : Relative sector weakness in Technology XLK, Semi XMH, Disk Drive, Networking IGN, Retail XRT, Copper JJC. 12:26PM Goldman Sachs displays some relative strength against recent market weakness as it moves back up into the midpoint of today's range near $96.50 (GS) 96.65 -0.06 : Earnings out tomorrow morning. Stock is stuck in the midst of a 3-day range between roughly $94.50 and $98.00, with the 20-day ema near the upper end of that range at $98.05 currently.
12:22PM Jamba and Bare Fruit announce licensing agreement (JMBA) 1.47 0.00 : Co announced an exclusive licensing agreement to develop and launch a new line of Jamba-branded fruit chips. The two cos will create a line of dried fruit chips that can be eaten as snacks. The new products are expected to launch in grocery, convenience, and other retail outlets by the end of December 2011.
12:10PM Relative sector weakness as stock indices pull back off morning bounce highs (TECHX) : Biotech IBB, Semi SMH, Technology XLK, Networking IGN, Disk Drive, Silver SLV, Gold Miners GDX, Gold GLD, Solar TAN.
12:02PM Semiconductor Hldrs ETF slides to new low near Friday's trough at 30.12 -- session low 30.12 (SMH) 30.12 -0.49 : ADI -2.7%, ALTR -2.3%, AMD -2.8%, AMKR -2.9%, ATML -2.9%, LSI -5%, MU -3.1%, TER -3.3%.
11:51AM Stock indices weaken in recent trade -- Dow -160, S&P -14, Nasdaq Comp -31 (SPY) : Fractional new low for Dow and Nasdaq Comp but thus far the S&P has not confirmed the move. 11:39AM Minor intraday bounce highs for S&P -11 and Nasdaq Comp -23 (SPY) : Noted in the 10:55 update that the indices were testing second level supports (1208/1207 S&P, 2635/2625 Nasdaq Comp) with potential for a bounce attempt. Limited new recovery highs have been set in recent trade (1213 and 2645, respectively). Relative sector strength on this move has been noted in Energy XLE, OIl Service OIH, Disk Drive, Casino, Materials XLB as the Dollar Index has slipped off its morning high.
11:16AM FXCM increased its share repurchase program from $30 mln to $50 mln (FXCM) 11.48 -0.53 : 10:56AM MasterCard displays some relative strength as it jumps 2-pts up into modest morning high territory (MA) 341.50 -0.01 :
10:55AM S&P -15 and Nasdaq Comp -29 extend to second level support (SPY) : Steady slide off the open has been extended to second level support note in The Technical Take at 1208/1207 S&P (session low 1208). Second level support for the Nasdaq Comp 2635/2625 has also been probed in recent trade (session low 2636). No set-up yet but watching for initial signs of a possible bounce attempt near these zone.
10:46AM MF Global acquires multi-asset retail trading platform for $3.75 mln (MF) 3.76 -0.20 : Co announced that it has acquired Strategy Runner Trading Ltd., a multi-asset front-end trading system and algorithmic trading solutions provider that enables professional traders and retail investors the ability to access, automate, distribute and implement trading strategies.
10:25AM Further slippage to stock indices -- Dow -125, S&P -12, Nasdaq Comp -24 (SPY) : The S&P has pulled back to 1211 which marks Friday's midday range low and the 38% retrace of Thur-Friday rally.
10:05AM Sector Watch (TECHX) : The Dollar recently edged to a new session high with Energy/Commodity sectors underperforming (OIH, XLE, XLB, SLX, MOO) along with Networking, Disk Drive, Solar TAN.
9:56AM Atwood Oceanics's subsidiary announces drilling services contract for the Atwood Condor; financial terms not disclosed (ATW) 41.03 +0.64 : The contract has a firm duration of 21 months, exclusive of the mobilization period from Singapore to the Gulf of Mexico, and includes two one-year options with pricing subject to mutual agreement. The Atwood Condor is expected to be delivered from the shipyard in June 2012 and will mobilize to the Gulf of Mexico with expected arrival in September 2012. The commitment for the Atwood Condor is expected to run until June 2014, excluding well in progress. With this contract, Atwood's total revenue backlog increases by $329 mln to ~$1.9 bln, excluding ~$32 mln in mobilization revenue. 9:56AM Stock indices slip under opening lows -- Dow -87, S&P -10, Nasdaq Comp -19 (SPY) :
9:49AM SPDR Retail solid push off early low, sets new high of 51.09 near last week's two month high of 51.12 and pauses (XRT) 50.93 -0.01 : TGT +0.3%, JCP +0.2%, WFM +0.3%, AAP +0.3%, LTD +1%, PSS +0.5%, PCLN +0.2%.
9:44AM Financial Select Sector SPDR weighs on market in early trade, holding thus far just above Friday's low (XLF) 12.48 -0.12 : The sector has been a drag on the market in early action with it currently hovering just above Friday's low at 12.39 (session low 12.42) -- WFC -6%, TRV -1.7%, AXP -0.8%, BK -0.8%, MS -0.8%, USB -2.7%, BBT -1.7%, PNC -1.6%, STI -3.3%.
9:43AM Opening Point Gainers/Losers (TECHX) : Point Gainers: SNDA (+6.30), BEXP (+6.02), EP (+4.30), APC (+3.38), KMP (+3.39), ANDS (+2.61), CLR (+1.47), KMI (+1.34), OAS (+1.19), WLL (+0.95), ETP (+0.93), STT (+1.04)
Point Losers: WLT (-4.56), EPB (-4.12), AMZN (-3.47), CMI (-3.27), FSLR (-2.69), SLB (-2.35), EW (-2.36), HAL (-2.35), NBL (-2.07), CLF (-2.04), NOV (-1.84), BHP (-1.76), VECO (-1.73)
Point Losers: WLT (-4.56), EPB (-4.12), AMZN (-3.47), CMI (-3.27), FSLR (-2.69), SLB (-2.35), EW (-2.36), HAL (-2.35), NBL (-2.07), CLF (-2.04), NOV (-1.84), BHP (-1.76), VECO (-1.73)
9:37AM Stock indices extend opening slip to first level supports (SPY) : Broad based weakness to start the week brings the market averages near first level supports noted in The Technical Take at 2652/2645 Nasdaq Comp (session low 2650), 1216/1215 S&P (session low 1216) and 11585/11575 Dow (session low 11571).
9:31AM Comverse Tech: Cadian Capital Management urges CMVT shareholders to vote against three directors at annual meeting (CMVT) 6.53 +0.05 : Co issued the following letter to the shareholders of CMVT urging shareholders to join with Cadian in voting "against" directors Raz Alon, Joseph O'Donnell and Theodore H. Schell at Comverse's annual meeting of shareholders scheduled to be held on November 16, 2011.
9:30AM Medtronic announces 510(k) clearance for the Aquamantys3 system with combined hemostatic sealing and cutting functionality (MDT) 33.11 +0.01 : This new advanced energy platform provides the co's patented Transcollation technology and radio frequency cutting functions to new and existing hand pieces. The new generator offers surgeons and operating room staff enhanced features to improve ease of use, including a graphic user interface and an integrated cassette for simplified setup.
9:27AM China Ming Yang wind power signs strategic cooperation agreements with China Development Bank, including up to $5 bln of potential financing (MY) 2.76 : Co announced that its subsidiary, Guangdong Ming Yang Wind Power Industry Group entered into a development financing cooperation agreement and a planning cooperation agreement with China Development Bank in Beijing, China. CDB is a government policy bank wholly owned by China's central government. Under the agreements, CDB is expected to support Ming Yang in its strategic and financial planning by granting Ming Yang up to US$5 billion (or equivalent in other currencies) in potential financings, including loans and credit facilities between 2011 and 2015,
9:27AM Ensco 8505 ultra-deepwater Semisubmersible contracted with Anadarko (APC), Apache (APA) and Noble Energy (NBL) (ESV) 45.95 : Co announced that it has entered into a shared drilling contract for ENSCO 8505 with Anadarko Petroleum (APC), Apache (APA) Deepwater LLC and Noble Energy (NBL) The initial contract term is for two years or two rotations per operator, whichever is longer, in the U.S. Gulf of Mexico at a day rate of $475K, plus cost adjustments. The contract adds ~$350 million to revenue backlog. Two one-year options are at mutually agreed rates.
9:21AM On The Wires (WIRES) :
- Sharps Compliance (SMED) announced that Walgreens (WAG) and Novo Nordisk (NVO) have united to offer the patent-pending Sharps' Complete Needle Collection & Disposal System for free through a special promotional program to customers that routinely require injectable medicines, such as insulin.
- Popeyes (AFCE) announced the launch of an aggressive growth plan to increase its presence in Southern California. With the company's dollar share of chicken QSR sales at a 10-year high domestically.
- Solazyme (SZYM) announced the continuation and expansion of its relationship with Unilever, one of the world's leading consumer goods companies.
- The Crone Law Group announced China North East Petroleum Holdings (NEP) to dismiss three consolidated securities class actions against NEP and certain of its current and former officers and directors.
- Green Plains Renewable Energy (GPRE) and BioProcess Algae announced the successful completion of the first round of algae-based poultry feed trials.
9:16AM Sequenom trading 10% higher after announcing launch of MaterniT21 noninvasive prenatal test for down syndrome (SQNM) 5.32 : Co announced that its wholly-owned subsidiary, Sequenom Center for Molecular Medicine (Sequenom CMM), launched its noninvasive proprietary MaterniT21 laboratory developed test (LDT). The MaterniT21 LDT detects a genetic chromosomal anomaly known as Trisomy 21, the most common cause of Down syndrome. The test is now available to physicians upon request in 20 major metropolitan regions across the United States.
9:09AM Solazyme and Unilever (UN) sign commercial development agreement for renewable oils (SZYM) 9.84 : The Commercial Development Agreement, which is funded by Unilever, expands the companies' current research and development efforts and is the fourth agreement the parties have entered into. Upon successful completion of the development agreement and related activities, the two companies have agreed the terms of a multi-year supply agreement in which Unilever would purchase commercial quantities of Solazyme's renewable oils.
9:07AM Walgreens offers price guarantee to Express Scripts (ESRX) for Department of Defense Tricare Pharmacy Program (WAG) 33.00 : Co said it has offered terms to Express Scripts that if accepted would allow Walgreens to continue serving the Department of Defense (DoD) Tricare pharmacy program in 2012 and produce savings for the program without disrupting beneficiaries' choice of a network pharmacy provider. Walgreens also reiterated its earlier, rejected offer to contract separately with Express Scripts for Tricare from other Express Scripts commercial business to avoid any disruption to military families and retirees. Express Scripts has ignored or rejected all previous offers made by Walgreens and continues to refuse to negotiate a separate contract for the benefit of the Tricare program and its 6 million beneficiaries.
9:04AM Seanergy Maritime announces new time charter agreement for one of its vessels (SHIP) 3.57 : The M/V BET Prince, a 163,554 dwt Capesize dry bulk carrier built in 1995, has entered into a time charter agreement, for a period of about eleven to about thirteen months at a gross charter rate linked to the adjusted Time Charter Average of the Baltic Exchange Capesize Index. The charter is expected to commence by the end of October 2011.
9:03AM Kinetic Concepts: Two independent proxy advisory firms join ISS in endorsing KCI merger with consortium Led by Apax Partners (KCI) 67.98 :
9:02AM Steiner Leisure entered into an agreement for the acquisition of all of the issued and outstanding capital stock of Ideal Image Development; transaction is expected to be $0.20 to $0.25 accretive to earnings for 2012 (STNR) 44.98 : Co announces that it has entered into an agreement for the acquisition of all of the issued and outstanding capital stock of Ideal Image Development. This transaction, which is expected to be $0.20 to $0.25 accretive to earnings for 2012 and has a purchase price of $175 million payable in cash at closing, and will be paid from existing cash and through borrowings under the new credit facility described below... In the event of a termination of the agreement by a party other than as permitted by the agreement, a break-up fee of $8.75 million would be payable by such party.
9:02AM Cameco updates Hathor shareholders on status of offer; offer has not been withdrawn or reduced (CCJ) 21.22 : Co mailed to Hathor Exploration (HTHXF.PK) shareholders a letter from Tim Gitzel, president and CEO of Cameco. The content of the letter follows: You have a unique opportunity to receive an immediate and substantial premium by tendering to Cameco's offer to acquire Hathor for $3.75 per share. However, the October 31, 2011 5:00 p.m. deadline is quickly approaching. Hathor shareholders who wish to take advantage of the offer need to ensure they do so prior to the expiry time of the offer. Despite the recent turbulence in the markets and uncertainty about the future, Cameco's offer has not been withdrawn or reduced and continues to offer an attractive premium of: 40% over Hathor's closing share price on August 25, 2011 (the last trading day prior to the announcement of Cameco's intention to make an offer.
9:02AM Boardwalk Pipeline and its general partner to acquire Petal and Hattiesburg Storage Companies for $550 mln (BWP) 26.91 : Co announced that it has formed a joint venture with an affiliate of its general partner, which has entered into a definitive agreement to acquire Petal Gas Storage and Hattiesburg Gas Storage Company and related entities from Enterprise Products Partners (EPD) for $550 mln in cash. Co expects that the joint venture will fund this acquisition with proceeds from a $200 mln 5-year bank loan and equity contributions from Boardwalk and an affiliate of its general partner, Boardwalk Pipelines Holding, a wholly-owned subsidiary of Loews Corporation (L). BPHC will own 80% and contribute $280 mln of the joint venture's equity and Boardwalk will own 20% and contribute $70 mln.
9:02AM Golden Star Resources achieves Q3 production guidance (GSS) 2.26 : "Bogoso/Prestea is experiencing strong positive progress in both mining and processing operations. Due to the operational improvements we have achieved over the last nine months at the Bogoso/Prestea mine, we have seen metallurgical recovery improve significantly from 56% in the fourth quarter of 2010 to nearly 76% in the third quarter of 2011, a quarterly record. As a result, third quarter gold production at Bogoso/Prestea was slightly higher than we had forecast. Wassa/HBB's gold production was slightly below expectation in the third quarter due to lower than expected mill availability and ore handling issues. On a consolidated basis, we achieved third quarter gold production guidance."
9:01AM Kandi Technologies announces the government subsidies to 3,000 Kandi Pure Energy Vehicles by Jinhua City and Zhejiang Province (KNDI) 2.41 : Co announced that an inauguration ceremony for a new energy vehicle promotional campaign of Jinhua City was sponsored and held by Jinhua Municipal City at the facility of Zhejiang Kandi Vehicles Co., Ltd., a wholly owned subsidiary of the Company, on October 12th, 2011... To encourage consumers to purchase the electric vehicles, Zhejiang Provincial Government and Jinhua Municipal Government will provide subsidies of 32,000 RMB (approximately $5,024) to the buyers for each of the first 500 Kandi pure EV, 20,000 RMB (approximately $3,140) to the buyers for each of the next 1,000 Kandi pure EV, and 16,000 RMB (approximately $2,512) to the buyers for each of the following 1,500 of Kandi pure EV.
8:52AM On The Wires (WIRES) :
- Satcon Technology (SATC) announced that its 1.25 megawatt Satcon Equinox Prism Platform has achieved 98% CEC listed efficiency.
- O2Micro International (OIIM) was issued 5 claims under United States patent number 7,983,301 for its Short Message Service for wireless communications invention.
- AdCare Health Systems (ADK) has signed a definitive purchase agreement for five skilled nursing facilities in Oklahoma for $16 ml. Dendreon (DNDN) announced that the company has begun enrolling patients into a Phase 2 trial for DN24-02.
- Marina Biotech (MRNA) announced that it has entered into a purchase agreement with Lincoln Park Capital Fund whereby LPC has committed to invest, at the Company's sole option, up to $15 mln of equity capital.
- Polycom (PLCM) announced the acquisition of ViVu. Financial terms not disclosed.
- Swisher Hygiene (SWSH) announced that it has acquired the assets and certain liabilities of West Coast Laundry & Warewashing Technologies.
- Pandora (P) will be integrated in Buick, unit of GM (GM) IntelliLink starting with Buick's 2012 sedans, Verano, Regal and LaCrosse, later this year, followed by Enclave in 2013.
- ZST Digital Networks (ZSTN) announced that it has entered into an agreement with the Road Transportation Department of Zhumadian.
- STAG Industrial (STAG) announced the acquisition last week of an $7.8 million, approximately 380,000 square foot warehouse and distribution facility located near Columbus, Ohio.
- EnerSys (ENS) announced that it has completed the acquisition of Industrial Battery Holding S.A., the parent company of EnerSystem, a market leader in the South American motive power and reserve power battery markets.
- Harris (HRS) has received a $51.5 mln delivery order for advanced satellite terminals under the U.S. Army's Modernization of Enterprise Terminals program. period. The MET contract is valued at a potential $600 mln, including the base and option periods.
8:50AM Pandora Media announces Chief Marketing Officer Simon Fleming-Wood (P) 15.30 :
8:49AM On The Wires (WIRES) :
- Infinity Pharmaceuticals (INFI) announced updates to its development program for IPI-926, including that the company has completed enrollment of its Phase 2 trial of IPI-926 in patients with previously untreated pancreatic cancer.
- Kindred Healthcare (KND) announced that its subsidiary has acquired the assets of Synergy Home Health Care a provider of home health services. The financial terms of the transaction were not disclosed.
- Infinity Pharmaceuticals (INFI) announced updates to its development program for IPI-926, including that the company has completed enrollment of its Phase 2 trial of IPI-926 in patients with previously untreated pancreatic cancer.
- Beacon Roofing Supply (BECN) announced that it has acquired The Roofing Connection, a distributor of mostly residential roofing products and related accessories with one location in the Halifax suburb of Dartmouth, Nova Scotia.
- OSI Systems (OSIS) announced that its Healthcare division, Spacelabs Healthcare, has been awarded a three-year contract to provide its complete line of patient monitoring solutions to VHA Inc.
- Oilsands Quest (BQI) has entered into a $12 million securities purchase agreement with Socius CG II
- CPI Aerostructures (CVU) announced that it has received a schedule agreement from Sikorsky Aircraft valued at up to ~ $2.3 mln to manufacture gunner window assemblies.
8:48AM Charles Schwab misses by $0.01, misses on revs (SCHW) 12.75 : Reports Q3 (Sep) earnings of $0.18 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.19; revenues rose 11.1% year/year to $1.18 bln vs the $1.19 bln consensus. Net new accounts for the quarter totaled ~18,000, up 64% year-over-year excluding internal transfers in 2010. Total accounts reached 5.7 million as of September 30, 2011, up 2% YoY. "Although the environment weakened further during the third quarter, our clients stayed with their long-term investing plans. Their cash holdings at Schwab remained close to pre-crisis levels and they were consistently net purchasers of securities."
8:43AM Apple sold over four million of its new iPhone 4S just three days after its launch on October 14 (AAPL) 422.00 : Co announced it sold over four million of its new iPhone 4S after its launch on October 14. In addition, more than 25 million customers are already using iOS 5.
8:36AM Atlas Energy to form a new E&P Master Limited Partnership named Atlas Resource Partners, L.P. (ATLS) 18.98 : ATLS board of directors of its general partner has approved a plan to create a newly formed exploration and production master limited partnership named Atlas Resource Partners, L.P., which will hold substantially all of ATLS' current natural gas and oil development and production assets and the partnership mgmt business. ATLS intends to take Atlas Resource Partners public by distributing to ATLS unitholders common units representing an ~19.6% limited partner interest in Atlas Resource Partners. ATLS mgmt believes that this transaction will substantially enhance unitholder value by separating the co's current E&P assets and partnership management business from ATLS' general partner interests and incentive distribution rights in Atlas Pipeline Partners, L.P. (APL). Immediately after the distribution of the limited partner interest in Atlas Resource Partners, ATLS will continue to hold common units representing an ~78.4% limited partner interest in Atlas Resource Partners, as well as its existing interest in the midstream operations of APL, ATLS' midstream subsidiary, which holds strong growth potential in its Mid Continent natural gas gathering and processing assets. will distribute common units representing an ~19.6% limited partner interest in Atlas Resource Partners to ATLS unitholders as of a record date to be determined. The precise number of common units of Atlas Resource Partners to be distributed will be determined at a later date. ATLS expects the transaction to be completed by the first quarter of 2012. Immediately following the transaction, ATLS will hold common units representing an ~78.4% limited partner interest in Atlas Resource Partners. ATLS will also own the general partner of Atlas Resource Partners, which will own a 2% general partner interest and all of the incentive distribution rights in Atlas Resource Partners.
8:35AM Alexco Resources increased silver production for Q3 of 2011; Mill throughput increased by 14% and silver production increased 8%, with lead and zinc production generally consistent with Q2 (AXU) 7.39 : Average mill throughput during the quarter was 234 tonnes per day (tpd) compared to 208 tpd during the quarter before, with average throughput during the month of September increasing to 248 tpd. The increasing mill throughput reflects the beneficial impact from various optimization measures that have been implemented during the continuing ramp-up period.
8:33AM Cedar Fair announces the promotion of Richard A. Zimmerman to the position of Chief Operating Officer (FUN) 19.37 : Prior to that he served as Regional Vice President since June 2007 and as Vice President and General Manager of Kings Dominion since 1998.
8:33AM Marina Biotech announces a $15 mln purchase agreement with Lincoln Park Capital Fund (MRNA) 0.14 : Co announced that it has entered into a purchase agreement with Lincoln Park Capital Fund, a Chicago-based institutional investor, whereby LPC has committed to invest, at the co's sole option, up to $15 mln of equity capital.
8:32AM Triangle Petroleum commences operated drilling program and formation of RockPile Energy Services (TPLM) 4.13 : Co announces the commencement of its first operated well in McKenzie County, North Dakota, targeting the Middle Bakken Shale. CO also announced the formation of RockPile Energy Services, a newly created entity focused on providing pressure pumping and ancillary services in the Williston Basin. The well will target the Middle Bakken formation, with a planned 9,500' horizontal lateral and a 30 stage completion. Triangle has a 56% working interest in the Dwyer well.
8:32AM INX Inc. awarded contract for virtualized data center storage system for a national health plan group (INXI) 7.93 : The co to implement NetApp and VMware data storage solution for a national health plan provider.The health plan company has a national presence that expands to all 50 states and Washington, D.C. INX was awarded the four-part contract to design and integrate their data storage system, including backup and recovery, responsible for their mission critical applications.
8:31AM Geomet announces agreement to purchase coalbed methane assets in core areas and new bank credit agreement (GMET) 0.69 : Co announced that it has executed definitive agreements with a privately-held company to purchase coalbed methane assets in Alabama and West Virginia, certain natural gas hedge positions, and a license to use a certain drilling technology. The effective date of the transaction is July 1, 2011 and is subject to customary closing conditions and purchase price adjustments, including the exercise, waiver or expiration of the preferential purchase rights described below.
8:29AM Gannett misses by $0.01, reports revs in-line (GCI) 10.94 : Reports Q3 (Sep) earnings of $0.44 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.45; revenues fell 3.5% year/year to $1.27 bln vs the $1.27 bln consensus. "All of our business segments continued to deliver consistent profitability in the third quarter." Free Cash Flow Totaled $175.5 mln.
8:25AM Minefinders reports 13.69 gpt of gold-equivalent over 23.5 metres in Las Huatas Zone at Its La Virginia Property (MFN) 14.62 : High-grade intercepts from within the Las Huatas Zone include 4.0 metres averaging 71.31 grams per tonne gold-equivalent(41.01 gpt gold and 1,817.9 gpt silver contained within 23.5 metres averaging 13.69 gpt AuEq. Gold-equivalents are based solely on the contained gold and silver and no base metals have been observed to occur. To date, the Las Huatas zone has been systematically tested over an area of ~ 250 metres laterally and 250 metres vertically. Drill sites are currently in place to test an additional 450 metres of strike length as well as target mineralization at depth. Due to the positive progress made year-to-date, the Board of Directors has approved an increase of $1 million in the 2011 budget for La Virginia from US$2.7 million to US$3.7 million. Drilling will continue to follow up on encouraging intercepts located in the three main zones, totaling seven kilometres of mineralized strike length, and will also be extended to cover an area to the south of the Las Huatas Zone.
8:24AM Eldorado Gold announced earlier an enhancement to the formula underlying its existing dividend policy (EGO) 17.22 : The formula used to create the semi-annual dividend fund will continue to be linked to the gold price and the number of ounces sold, and it will also provide additional step-ups as the average realized gold price increases. Gold price less than $1549/ounce dividend $100/per oz. Gold Price between $1650-1749/ounce (where gold is now) - dividend $150 per oz. Gold price of $1850-1999/ounce - dividend of $225/ounce.
8:10AM Verto to resume trading at 8:30 ET (VTRO) 1.61 :
8:07AM Citigroup reports Q3 (Sep) results, beats on revs (C) : Reports Q3 (Sep) earnings of $0.84 per share, excluding benefit from CVA of approx $0.39 per share which may not be comparable to the Capital IQ Consensus Estimate of $0.81; revenues rose 0.4% year/year to $20.83 bln vs the $19 bln consensus. Third quarter revenues included $1.9 billion of credit valuation adjustment (CVA) reflecting the widening of Citi's credit spreads during the third quarter. Excluding CVA, third quarter 2011 revenues were $18.9 billion, 8% below the prior year period and 8% below the second quarter 2011.
The year-over-year decline in Citigroup revenues, excluding CVA, was driven by lower revenues in both Citicorp and Citi Holdings. Citicorp revenues of $17.7 billion in the third quarter 2011 included $1.9 billion of CVA. Excluding the CVA, Citicorp revenues of $15.8 billion were 2% lower than the third quarter 2010. The decline was largely due to lower revenues in Securities and Banking, which were 12% below the prior year period and more than offset 2% growth in RCB revenues and 7% growth in Transaction Services revenues from the prior year period. Citi Holdings revenues of $2.8 billion were 27% below the prior year period. The decline in Citi Holdings revenues was principally due to the continuing reduction in assets, which fell $132 billion, or 31%, from the prior year period. Citi Holdings assets of $289 billion at the end of the third quarter 2011 represented approximately 15% of total Citigroup assets.
C had a loan loss reserve release of $1.4 Billion in Third Quarter, Down from $2.0 Billion in Each of Second Quarter 2011 and Third Quarter 2010. "In addition, over the past few years we have significantly strengthened our retail partner cards business and it has earned $2.2 billion pre-tax through the first three quarters. After a careful review of the business, which took into account current trends in credit and technology, we have decided that it makes strategic sense to move retail partner cards and a vast majority of its assets from Citi Holdings into Citicorp. The transition will be completed by the end of this year." Citigroup's capital levels and book value continued to increase versus the prior year period.
Book value per share was $60.56 and tangible book value per share4 was $49.50, 8% and 11% increases, respectively, versus the prior year period. Citigroup's Tier 1 Capital Ratio was 13.5% and its Tier 1 Common Ratio was 11.7%.
The year-over-year decline in Citigroup revenues, excluding CVA, was driven by lower revenues in both Citicorp and Citi Holdings. Citicorp revenues of $17.7 billion in the third quarter 2011 included $1.9 billion of CVA. Excluding the CVA, Citicorp revenues of $15.8 billion were 2% lower than the third quarter 2010. The decline was largely due to lower revenues in Securities and Banking, which were 12% below the prior year period and more than offset 2% growth in RCB revenues and 7% growth in Transaction Services revenues from the prior year period. Citi Holdings revenues of $2.8 billion were 27% below the prior year period. The decline in Citi Holdings revenues was principally due to the continuing reduction in assets, which fell $132 billion, or 31%, from the prior year period. Citi Holdings assets of $289 billion at the end of the third quarter 2011 represented approximately 15% of total Citigroup assets.
C had a loan loss reserve release of $1.4 Billion in Third Quarter, Down from $2.0 Billion in Each of Second Quarter 2011 and Third Quarter 2010. "In addition, over the past few years we have significantly strengthened our retail partner cards business and it has earned $2.2 billion pre-tax through the first three quarters. After a careful review of the business, which took into account current trends in credit and technology, we have decided that it makes strategic sense to move retail partner cards and a vast majority of its assets from Citi Holdings into Citicorp. The transition will be completed by the end of this year." Citigroup's capital levels and book value continued to increase versus the prior year period.
Book value per share was $60.56 and tangible book value per share4 was $49.50, 8% and 11% increases, respectively, versus the prior year period. Citigroup's Tier 1 Capital Ratio was 13.5% and its Tier 1 Common Ratio was 11.7%.
8:06AM Winthrop Realty Trust settles Churchill litigation (FUR) 8.68 : Co announced that it has entered into a settlement agreement with respect to its pending lawsuit relating to its Churchill, Pennsylvania property which provides for the dismissal of the lawsuit, a payment to Winthrop of $6.5 million, the conveyance to Winthrop of approximately 98 acres of land with approximately 1.0 million square feet of improvements currently owned by Winthrop, an additional adjacent 50 acres of land, and the waiver of all ground lease payments by Winthrop for 2011.
8:06AM Ametek Acquires Reichert Technologies, manufacturer of analytical instruments and diagnostic devices for $150 mln (AME) 38.17 :
8:06AM Asbury Automotive announced that it has entered into a new $900 million five-year syndicated credit facility with nine financial institutions and five manufacturer-affiliated finance companies (ABG) 19.30 :
8:06AM Wells Fargo misses by $0.01, misses on revs (WFC) 26.67 : Reports Q3 (Sep) earnings of $0.72 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.73; revenues fell 6.0% year/year to $19.63 bln vs the $20.34 bln consensus. Capital increased with Tier 1 common equity reaching $91.9 billion under Basel I, or 9.35% of risk-weighted assets. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.41%. "The economic recovery has been more sluggish and uneven than anyone anticipated... We can't change the economic environment, yet we have worked hard to control the variables we can -- making our products and services more relevant to individuals and businesses, focusing on the customer, making as many loans as possible and growing new relationships -- as well as fostering longtime ones. We see the results of this focus in growing cross-sell, deposits, and loans. Customers need a trusted financial partner, especially in challenging economic times. Wells Fargo has proven to be that partner over and over again... This was a strong quarter for Wells Fargo, with solid growth in loans, deposits, investment securities and capital, along with improved credit quality and lower expenses... Credit quality continued to improve in the third quarter, our seventh consecutive quarter of declining loan losses and the fourth consecutive quarter of lower nonperforming assets." Third quarter net charge-offs were $2.6 billion, or 1.37 percent (annualized) of average loans, down $227 million from second quarter net charge-offs of $2.8 billion (1.52 percent). Return on average assets of 1.26%.
8:06AM Lowe's closing 20 underperforming stores; expected financial impact of today's announcements of $0.17 to $0.20 per diluted share was not contemplated (LOW) 20.93 : Co announced today the company is closing 20 underperforming stores in 15 states. Ten locations closed at the end of business Sunday, October 16. The remaining 10 locations will close within approximately one month, following an inventory sell-through. In addition, after completing a comprehensive review of its pipeline of proposed new stores, the company announced it has discontinued a number of planned new store projects. Lowe's now expects to open 10 to 15 stores per year in North America from 2012 forward, compared to a prior assumption of approximately 30 stores per year. The company is on track to open approximately 25 stores in 2011, as planned. The expected financial impact of today's announcements of $0.17 to $0.20 per diluted share was not contemplated in the business outlook for fiscal 2011 which the company provided on August 15 when it released its second quarter earnings. Additional details regarding the impact of the store closings will be provided in the next quarterly earnings release on November 14.
8:06AM Chipmos Technology reports Q3 rev -4.5% QoQ, -5.4% YoY to $146.5 mln (no ests) (IMOS) 5.11 : Co reports Q3 (Sept) rev -4.5% QoQ, -5.4% YoY to $146.5 mln (no ests); Sept rev +5.8% MoM to $51.2 mln.
8:05AM Neptune Technologies's Acasti Pharma receives Health Canada Clearance for an open-label Phase II hypertriglyceridemia trial (NEPT) 2.30 : Health Canada informed Acasti that there was no objection to Acasti's proposed study based on the information and material provided to support the CTA. Therefore, Acasti will initiate an open-label phase II human clinical trial to investigate the dose response effect of CaPre as a treatment for patients with dyslipidemia. Enrollment in the study is expected to commence in the next few weeks with results anticipated early 2012.
8:05AM Visteon announced its board of directors elected Martin Welch executive vice president and chief financial officer, effective Oct. 17 (VC) 49.39 : Welch replaces William Quigley, who is leaving Visteon on Oct. 31.
8:04AM Grubb & Ellis enters into agreement with C-III Capital Partners and Colony Capital (GBE) 0.46 : Co announced that it has entered into exclusive negotiations with a subsidiary of C-III Capital Partners LLC, an affiliate of Island Capital Group LLC, which has partnered with an affiliate of Colony Capital LLC regarding a strategic transaction with the co. A C-III affiliate also has agreed to invest $10 mln in Grubb & Ellis through the expansion of the co's existing $18 mln credit facility with Colony Capital and purchase $4 mln of Colony's existing facility, which will establish both C-III and Colony Capital as significant stakeholders in Grubb & Ellis.
8:03AM Louisiana-Pacific announces fourth amendment to $100 mln credit agreement (LPX) 6.34 : Co announced it has executed a fourth amendment, dated October 14, 2011, to its loan and security agreement, dated March 10, 2009, with the lenders party thereto and Bank of America, N.A., as administrative agent.
8:03AM World Energy acquires energy efficiency firm Northeast Energy Solutions (XWES) 3.15 : Co announced it has purchased Northeast Energy Solutions, a privately-held energy efficiency company. The acquisition provides World Energy an immediate foothold in the New England market, where utility incentives are available for commercial and industrial energy efficiency projects.
8:03AM Verto: Inuvo (INUV) Announces Plans to Acquire Vertro; Vertro will become a wholly-owned subsidiary of Inuvo in a tax-free exchange of shares at an exchange ratio of 1.546 shares of Inuvo common stock per each share of Vertro common stock (VTRO) 1.61 : VTRO and Inuvo (INUV) announce that the parties have entered into a definitive agreement pursuant to which Inuvo will acquire Vertro in an all stock transaction. Under terms of the agreement, which was unanimously approved by the Board of Directors of each company, at closing of the transaction VTRO will become a wholly-owned subsidiary of Inuvo in a tax-free exchange of shares at an exchange ratio of 1.546 shares of Inuvo common stock per each share of Vertro common stock. The merger is expected to close in the fourth quarter of 2011 or the first quarter of 2012, subject to satisfaction of the closing conditions.
8:02AM New Gold Nto Add to its Land Position Around Blackwater Project Through Acquisition of Geo Minerals (NGD) 11.70 : Co announced that the company and Geo Minerals have entered into a definitive agreement whereby New Gold will acquire, through a plan of arrangement all of the outstanding common shares of Geo. By acquiring Geo, New Gold will add 1,470 hectares of land immediately to the northwest of the company's Blackwater Project. Under the terms of the Arrangement, each Geo shareholder will receive C$0.16 for each Geo share held. In addition, Geo shareholders will receive one common share of a new exploration company for every 15 Geo common shares held. The net cash payment by New Gold for the Geo shares, after adjusting for the conversion of convertible securities and the related proceeds, is approximately CAD $17 mln. Also, as part of the Arrangement, New Gold will complete a CAD $250K placement that will result in the company holding a 9.9% interest in Spinco upon closing.
8:02AM Western Digital announced that it has extended the suspension of its operations in Thailand (WDC) 28.34 : Over the weekend, rising water penetrated the Bang Pa-in Industrial Park flood defenses, inundating the company's manufacturing facilities there and submerging some equipment. At the other company manufacturing location in Thailand, Navanakorn Industrial Park, the park flood defenses were breached on Monday morning local time and water has begun to flow into the park threatening the company's facilities there. All WD employees in Thailand remain safe. The company's other facilities in Malaysia, Singapore and the U.S. are fully operational. The company now expects that the flooding of its Thailand facilities, combined with flood damage to the company's supply chain in Thailand, will have significant impact on the company's overall operations and its ability to meet customer demand for its products in the December quarter.
8:02AM Aurico Gold Reports New Drill Results Including 23.6 metres grading 3.96 g/t Gold Equivalent at the Dolores Vein at the El Cubo Mine (AUQ) 10.35 : Update of new drill results at its El Cubo Mine in Guanajuato State, Mexico. Exploration drilling resumed in late July and as of September 30th the Company had completed 5,068 metres of core drilling using two surface drill rigs. The drilling to date has focused on infill and step-out drilling of the Dolores-Capulin orebodies discovered in late 2009. The new drilling continues to show good continuity to the known resources, as well as extending the discovery further at depth and to the south, in areas with thick zones of mineralization that are cored by a vein that is significantly higher grade than current grades in the El Cubo Mine. "The surface geology and drilling program at El Cubo is now up and running and has already reported some very encouraging gold-silver mineralization in the Dolores vein system," stated Peter Drobeck, Senior Vice President of Exploration and Business Development.
8:02AM Arcos Dorados sees Q3 revs $970-990 vs $1.01 bln Capital IQ Consensus Estimate (ARCO) 25.74 : Co announced certain guidance today with respect to its expectations for third quarter 2011 results. On a constant currency basis, the Company's sales growth for the third quarter of 2011 improved upon the growth the Company experienced in the first half of the year. As evidence of this trend, the co expects its systemwide comparable sales growth in the third quarter of 2011 to be within a range of 14.8% to 16.2%, as compared to the same period in the prior year. As a result of these factors, for the three months ended September 30, 2011, the co anticipates that its revenues will likely range from $970 to $990 mln (vs $1.01 bln Capital IQ consensus), its operating income will likely range from $69 to $75 million and its net income will likely range from $18 to $20 million, representing an approximately 23.0% to 25.5% increase, an approximately 0.4% to 9.1% increase and an approximately 38.2% to 31.3% decrease, respectively, as compared to the three months ended September 30, 2010.
8:02AM New Gold agrees to acquire Silver Quest Resources (SQIFF.PK) consolidates ownership of Blackwater Project in British Columbia (NGD) 11.70 : Cos announce a binding letter agreement whereby New Gold will acquire, through a plan of arrangement all of the outstanding common shares of Silver Quest. Under the terms of the Arrangement, Silver Quest shareholders will receive 0.09 of a New Gold share for each Silver Quest (SQIFF.PK) share held and one common share in a new Yukon-focused precious metals exploration company, McIntyre Minerals for every three Silver Quest shares held The offer values Silver Quest at $1.32/share, representing a 52% premium. As part of the Arrangement, New Gold will purchase, on a private placement basis, $3.5 mln of McIntyre shares at a price of $0.78 per share. which will result in New Gold holding 9.9% of the shares outstanding of McIntyre, with current Silver Quest shareholders holding the remaining 90.1% upon completion of the Arrangement. Including the proceeds from the New Gold private placement, it is expected McIntyre will have ~$15 mln in cash to fund an aggressive two year exploration program focused on Silver Quest's 3Ts Gold Project in central British Columbia and a number of Yukon exploration properties. In the event that the Arrangement is not completed, Silver Quest has agreed, under certain circumstances, to pay New Gold a termination fee equal to $5 mln. Silver Quest has also provided New Gold with certain other customary rights, including a right to match competing offers.
8:01AM CAE awarded a series of military contracts from the defence forces of seven countries valued at more than C$125 mln (CAE) 9.75 : They include a contract to develop two multi-crew simulators for a new undergraduate program of the United States Navy, additional work for the United States Air Force as part of the KC-135 Aircrew Training System (ATS) contract, and two contracts from undisclosed customers in the U.S. and the Middle East to design and manufacture a total of seven operational flight trainers.
8:01AM SandRidge Energy announces exchange offer for its 7.5% senior notes due 2021 (SD) 6.78 :
7:59AM Arcos Dorados announces launch of secondary offering of Class A shares (ARCO) 25.74 : Co announced the launch of an underwritten secondary offering of 40,432,690 Class A shares or up to 44,475,958 Class A shares if the underwriters exercise their option to purchase additional shares. All of the Class A shares to be sold in the offering will be offered by certain selling shareholders. The Class A shares will be registered with the U.S. Securities and Exchange Commission and will trade on the New York Stock Exchange under the symbol "ARCO."
7:44AM On The Wires (WIRES) :
- TASER International (TASR) announced that New Jersey has approved the TASER electronic control device and the TASER ECD for use by law enforcement officers in New Jersey.
- Senior Housing Properties (SNH) announced that the underwriters of its public offering have exercised, in full, their over-allotment option to purchase an additional ~1.2 mln common shares.
- Digital Realty Trust (DLR) signed a long-term, Build-to-Suit agreement in the third quarter of 2011 with NetApp (NTAP) for a custom data center in Hillsboro, Oregon.
- Krispy Kreme Doughnut (KKD) announced that it has signed a new development agreement with its franchisee in the United Kingdom, Krispy Kreme under which the franchisee has agreed to open an additional 35 locations in the UK over the next six years.
- GE Energy Financial Services (GE) announced earlier that it is acquiring a diverse pool of nearly $1 bln in senior secured energy project finance assets located in more than a dozen countries. GE Energy Financial Services is acquiring the portfolio from the Bank of Ireland (IRE), which is selling non-core loans as part of its deleveraging plan.
7:41AM Tredegar announces agreement to acquire Terphane for $188 mln (TG) 17.28 : has agreed to acquire 100% of the equity interests of Terphane Holdings. Terphane is currently owned by Vision Capital, an international investment firm. The approximate purchase price of $188 mln will be funded using available cash on hand and financing from Tredegar's existing $300 mln credit facility. Tredegar expects that the acquisition will be accretive within the first year following the acquisition.
7:33AM IMAX confirms it will license exclusive rights to Kodak's (EK) next-generation laser projection technology (IMAX) 17.38 : The cos announced that IMAX has licensed from Kodak certain exclusive rights in the digital cinema field to a portfolio of more than 50 patent families covering fundamental laser projection technology. IMAX also licensed from Kodak certain exclusive rights in the digital cinema field to a broader range of Kodak patents covering complementary technologies useful for laser projection products. While the agreement is royalty bearing to Kodak, the specific terms of the deal were not announced. IMAX's licensing of Kodak's revolutionary laser projection technology and patents will enable IMAX to deliver the highest-quality digital content available to IMAX film-based screens larger than 80 feet and to dome theatres. This technology also will allow IMAX to distribute content with greater efficiency to the co's global theatre network.
7:32AM Krispy Kreme signed a new development agreement with Krispy Kreme UK, under which the franchisee has agreed to open an additional 35 locations (KKD) 7.16 : Co announced that it has signed a new development agreement with its franchisee in the United Kingdom, Krispy Kreme UK, Ltd., under which the franchisee has agreed to open an additional 35 locations in the UK over the next six years. Krispy Kreme UK, Ltd. currently operates 45 doughnut shops across the country.
7:32AM Energy Transfer agrees to contribute propane operations to AmeriGas Partners (APU) in exchange for $2.9 bln (ETP) 41.38 : ETP announced it has entered into an agreement to contribute its propane operations, consisting of Heritage Operating and Titan Energy Partners to AmeriGas Partners (APU) in exchange for ~ $2.9 bln. Under the terms of the agreement, which has been unanimously approved by ETP's Board of Directors, ETP will receive $1.5 bln in cash and ~$1.3 bln of APU common units. In addition, APU has agreed to assume ~ $71 mln of existing Heritage debt. Following the transaction, ETP will own ~34% of the common units of APU and has committed to retain those units until at least 2013. UGI Corporation, through subsidiaries will remain as the General Partner of APU and ETP will appoint 1 director to the APU General Partner Board post-closing.
7:31AM Chesapeake Lodging Trust increases the maximum amounts the Trust may borrow from $150.0 mln to $200.0 mln, and also provides for the possibility of further future increases, up to a maximum of $300.0 mln (CHSP) 13.38 : Co announced that it has amended its credit agreement providing for a three-year secured revolving credit facility with a syndicate of banks led by Wells Fargo Bank. The amended credit agreement increases the maximum amounts the Trust may borrow from $150.0 mln to $200.0 mln, and also provides for the possibility of further future increases, up to a maximum of $300.0 million, in accordance with the terms of the amended credit agreement.
7:31AM Canadian Solar reaffirms Q3 shipment guidance, lowers Q3 gross margin guidance (CSIQ) 3.79 : Co expects Q3 shipments to be in line with prior guidance of 350 MW to 360 MW despite broader weakness experienced in the solar market worldwide. The co noted that it saw strength in customer demand return at the end of 3Q11. Mgmt believes that demand was initially lower earlier in the third quarter as customers appear to have been waiting as long as possible before committing to purchases given continued pressure on average selling prices throughout the solar supply chain. This was compounded by a weaker than normal financing environment. Due to the lower ASP's, the co now expects its gross margin for Q3 will be in the range of 2% to 5%, compared to prior guidance of 9% to 12%.
7:30AM Harbin Electric: ISS recommends Shareholders vote for proposed $24 per share cash going private transaction (HRBN) 22.09 : Co announces that Institutional Shareholder Services has recommended that Harbin Electric shareholders vote "FOR" the approval of the co's Agreement and Plan of Merger dated as of June 19, 2011, as amended with Tech Full Electric and Tech Full Electric. In its report dated October 14, 2011, ISS stated: "The merger consideration provides shareholders with a significant premium in an all-cash transaction which carries certainty of value. The board and Special Committee undertook a robust strategic review process, taking prompt action to mitigate potential conflicts of interest that arose during the strategic process. Shareholder support for this transaction is warranted."
7:17AM On The Wires (WIRES) :
- Cubic Transportation Systems the transportation unit of Cubic (CUB) has received approval from the top four bank card brands for the Tri-Reader 3 to process their branded contactless EMV bank cards for use in public transit revenue management systems.
- Molycorp (MCP) and the United Steelworkers announced agreement on a new three-year labor contract at Molycorp's flagship rare earth manufacturing facility at Mountain Pass, California.
- Raytheon (RTN) has been awarded a $42.6 mln U.S. Navy contract to provide MK54 lightweight torpedo hardware.
- Athersys (ATHX) announced that it has completed patient enrollment of the repeat dose arm of its clinical study involving administration of MultiStem to patients being treated for leukemia or other blood born cancers.
- General Growth Properties (GGP) announced the refinancing of four shopping malls representing $966 mln of new mortgages. These four new fixed-rate mortgages have a weighted average term of 9.1 years and a weighted average interest rate of 4.63%, as compared to the 5.66% rate on the prior maturing loans.
- Athersys (ATHX) announced that it has completed patient enrollment of the repeat dose arm of its clinical study involving administration of MultiStem to patients being treated for leukemia or other blood born cancers.
- Kratos Defense & Security Solutions (KTOS) announced that its wholly owned subsidiary Herley GMI Eyal has received $7.3 mln in contract awards to provide various complex microwave switch assemblies for a U.S. customer.
- Alcoa (AA) and The Saudi Arabian Mining Company, Ma'aden announced yesterday the signing of financing agreements by Ma'aden Bauxite and Alumina Company, the second phase of the $10.8 bln Ma'aden Alcoa fully integrated aluminum joint venture.
- ChipMOS Technologies (IMOS) reported that ThaiLin Semiconductor, the 42.9% owned subsidiary of the Company's 84.2% owned subsidiary to restate its financial statements for 2009, 2010 and 2011, as required by Taiwan's Financial Supervisory Commission.
7:04AM First Horizon misses by $0.02; launches $100 mln share repurchase program (FHN) 6.56 : Reports Q3 (Sep) earnings of $0.14 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.16. Regional bank pre-tax income was up 26% compared to last quarter, and total revenue grew 2%, driven by higher net interest income and steady fee income. Period-end loans improved 5% from last quarter, driven by loans to mortgage companies and corporate borrowers and asset-based lending. According to recent FDIC data, First Tennessee's deposits in Tennessee improved 6.5% over last year, more than two and one-half times the growth rate in First Tennessee's markets. In Middle Tennessee, deposits grew nearly 7.5%, the fastest among the top banks. Balance sheet trends generally were favorable and the co continued to make progress on lowering expenses in core businesses, but environmental costs remained elevated primarily from increased GSE-related mortgage repurchase provision expenses. First Horizon has also launched a program to repurchase up to $100 mln of its common stock in the open market or in privately negotiated transactions, subject to market conditions, by the end of August 2012.
7:04AM LoJack appoints Randy Ortiz as President and CEO; Donald R. Peck named EVP and CFO (LOJN) 3.31 : Co announced the appointment of Randy Ortiz, as Chief Executive Officer and President, effective November 1, 2011. LoJack also named Donald R. Peck, a Chief Financial Officer, effective October 18, 2011. Ortiz is an auto industry insider who at Ford (F) led a team that increased Ford and Lincoln-Mercury market share for the first time in 14 years. Peck has broad-based financial and legal experience.
7:03AM Elan announces expiration of offers to purchase senior notes (ELN) 10.86 : Co announced the expiration and final results of the previously announced asset sale offer to purchase up to $721.2 mln in aggregate principal amount of the senior notes consisting of 8.875% Senior Fixed Rate Notes due 2013 The Co-Issuers received tenders in respect of $4.0 mln aggregate principal amount of the 2013 Fixed Rate Notes, representing ~ 0.9% of the total outstanding 2013 Fixed Rate Notes.
7:02AM China Information Tech reports $24.6 mln in new contracts during the third quarter of 2011 (CNIT) 1.01 : Co announced that it signed $24.6 mln in new contracts during the third quarter of 2011. The Company's core IT business segment contributed 44%, or $10.8 mln, of the total contract wins, while its Digital Display segment contributed 56%, or $13.8 mln.
7:01AM ICF International awarded new $70 mln community transformation grant support contract by the Centers For Disease Control and Prevention (ICFI) 21.76 : Co has been awarded a new contract by the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention to support the Community Transformation Grant program. The contract has a value of $70 mln and a term of one base year and six option years.
6:59AM Atlantic Power announces private offering of $460 mln senior notes (AT) 13.28 : Co announced that it is offering $460 mln aggregate principal amount of senior notes due 2018. The Notes will be senior unsecured obligations of the Company, guaranteed by certain subsidiaries of the Company.
6:54AM Halliburton beats by $0.02, beats on revs (HAL) 37.43 : Reports Q3 (Sep) earnings of $0.94 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.92; revenues rose 40.4% year/year to $6.55 bln vs the $6.38 bln consensus. Project delays in Iraq and the shutdown in Libya continued to have a negative impact on results in the third quarter. In Iraq, we started operating three rigs near the end of the quarter, and we expect to have six rigs by the end of the fourth quarter. Libya is in an assessment phase and is expected to make a positive contribution in 2012. Other Eastern Hemisphere markets continue to show gradual progress primarily as a result of volume increases, as international pricing remains very competitive.
6:46AM Vivus resubmits Qnexa NDA to the FDA (VVUS) 8.58 : Co announced that the co has resubmitted the NDA for Qnexa to the FDA. The resubmission follows an agreement reached in September 2011 with officials of the Endocrine and Metabolic Division of the FDA on the filing strategy for Qnexa. The NDA resubmission seeks approval for an initial indication for the treatment of obesity, including weight loss and maintenance of weight loss for obese patients, or overweight patients with weight-related co-morbidities such as hypertension, type 2 diabetes, dyslipidemia, or central adiposity.
6:33AM Hasbro misses by $0.03, misses on revs (HAS) 34.75 : Reports Q3 (Sep) earnings of $1.27 per share, $0.03 worse than the Capital IQ Consensus Estimate of $1.30; revenues rose 4.8% year/year to $1.38 bln vs the $1.45 bln consensus. The Company repurchased a total of 5.6 million shares of common stock during the third quarter 2011 at a total cost of $211.0 million and an average price of $37.74 per share. "We begin the fourth quarter with a number of encouraging factors supporting our full-year outlook."
6:31AM Hydrogenics contracted by Shell Oil Products (RDS.A) to service California hydrogen refuelers; financial terms not disclosed (HYGS) 5.68 : Co announced that the company has been contracted by Shell Oil Products US to provide inspection and maintenance services for four existing hydrogen vehicle refuelers in Southern California. The three-year contract, effective immediately, represents the largest service contract to date attained by HYGS service group dedicated to hydrogen refueling installations.
6:31AM RR Donnelley & Sons awarded $550 mln multi-year agreement by American Media (RRD) 15.86 : Co announced that it has been awarded a $550 mln multi-year agreement by American Media. Under the terms of the agreement RR Donnelley will provide a broad array of products and services in North America and the U.K., including premedia, magazine production, variable digital printing, TransPromo communications as well as new digital and electronic communications services through its CustomPoint Solutions Group.
6:06AM On The Wires (WIRES) :
- L & L Energy (LLEN) announced It has received a letter from the local Pan County government supporting L&L's participation in the 5-year coal consolidation and reorganization plan which starts this year in Guizhou Province. Pan County, where much of the metallurgical coal is located, is the "coal capital" of Guizhou Province.
- Points International (PCOM) has re-launched its leading program branded wholesaling service.
- SuccessFactors (SFSF) announced an agreement with VMware (VMW) to empower its customers and partners to extend SuccessFactors applications using the VMware Cloud Foundry Platform as a Service beta.
6:03AM Synergy Resources reports that the three well Cletcher drilling program which the Company has a 100% WI and 82.5% NRI have been successfully drilled (SYRG) 2.95 : On the Declar Farm-in, which includes six wells with a 100% working interest and 80% net revenue interest, the Company reported that five out of six wells have been successfully completed with the sixth scheduled for completion in mid-October. Four of the wells were completed in the Codell formation. The fifth well was completed in the Codell formation and the Niobrara A and B benches.
6:01AM Acura Pharma announced that they have been informed by Pfizer (PFE) that PFE has commenced executing its commercialization plan for OXECTA Tablets CII in the United States (ACUR) 4.51 : Acura is eligible to receive tiered royalties ranging from 5% to 25% on net sales of OXECTA. The royalties commence on the first anniversary of the first commercial sale of OXECTA which Acura does not expect to occur during 2011.
5:56AM Brigham Exploration to be acquired by Statoil (STO) for $36.50/share in cash (BEXP) 30.33 : Cos announced that the companies have entered into a definitive merger agreement for STO to acquire BEXP for $36.50 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Brigham Exploration Company. The Brigham Exploration Company board of directors has unanimously recommended to its shareholders that they accept the offer. The transaction is expected to close late in 2011 or early in 2012.
4:32AM On The Wires (WIRES) :
- Lattice Semiconductor (LSCC) announced the immediate availability of its ispLEVER Classic version 1.5 design tool suite.
- Research In Motion (RIMM) announced that a selection of premium apps worth a total value of more than $100 will be offered free of charge to subscribers as an expression of appreciation for their patience during the recent service disruptions.
- Elbit Systems (ESLT) announced that it was awarded a $15 mln contract to supply an Asian National Government Agency with the Wise Intelligence Technology system. The system will be supplied within 18 months.
- TAT Technologies (TATT) announced that its wholly-owned subsidiary, Limco Airepair has signed a five-year, $7.8 mln contract with the U.S Army for the building of fluid electric coolers used on the Patriot missile system.
- China Medical Technologies (CMED) announced that its wholly-owned subsidiary Beijing Yuande Bio-Medical Engineering has passed the examination by the relevant government authorities and renewed its high and new technology enterprise status for another three year period from January 2011 to December 2013.
2:24AM On The Wires (WIRES) :
- BankAtlantic Bancorp (BBX) announced that it effected its previously announced one-for-five reverse stock split as of the close of trading today, Friday, October 14, 2011.
- GE Energy Financial Services, a unit of GE (GE), announced that it is acquiring a diverse pool of nearly $1 bln in senior secured energy project finance assets located in more than a dozen countries. GE Energy Financial Services is acquiring the portfolio from the Bank of Ireland, which is selling non-core loans as part of its deleveraging plan.
- Geospatial technology and spatial data types from Esri will soon be integrated into the IBM (IBM) Netezza analytics appliances. This will give federal agencies and customers in industries such as energy, retail, telecommunications, and health care the capability to query and geospatially analyze enormous datasets at very fast speeds.
- Oshkosh (OSK) confirmed that the Company and UAW Local 578 have ratified a five-year labor contract which had originally expired on September 30.
- The Blackstone Group (BX) announced that its private equity funds have agreed to acquire Antares Restaurant Group in New Zealand from Anchorage Capital Partners. Terms of the transaction were not disclosed.
- Samson Oil & Gas (SSN) advised that the Defender US33 #2-29H continues to monitor the pressure falloff of the formation with surface gauges. This routine test conducted an initial breakdown of the first frac stage and observation of the pressure falloff and with time allows rock property information to be gathered to assist in fine tuning the stimulation design.
- ON Semiconductor (ONNN) announced plans to close its wafer manufacturing facility located in Aizu, Japan, by the end of June 2012.
- McAfee and RSA, The Security Division of EMC (EMC) announced a new joint solution based on their existing technology partnership. This joint solution integrates security data from the McAfee ePolicy Orchestrator platform with business infrastructure and compliance data in the RSA ArcherTM eGRC Platform and the RSA Archer Enterprise Management solution.
- Identive Group (INVE) announced an innovative breakthrough in RFID inlay manufacturing technology. The co's patent-pending SmartCore technology produces RFID core-inlays enabling unprecedented printability for contactless ID and access cards, with a thinner profile than traditional inlay designs.
- Yandex (YNDX) and Samsung have announced a strategic partnership in the CIS countries. Samsung Smart TV in these countries now features Yandex's TV widget with access to the company's online services.
2:11AM BP: Anadarko (APC) settles with BP (BP) 39.88 : Anadarko Petroleum (APC) announced an agreement with BP to settle all of BP's current and future claims against Anadarko associated with the Deepwater Horizon event. Anadarko agrees to pay $4.0 bln to BP, and both parties have agreed to mutually release claims against each other. As part of this agreement, BP will release its claims against Anadarko for ~$6.1 bln of outstanding invoices received to date, as well as to forego reimbursement for any future costs related to the event. In addition, BP will fully indemnify Anadarko for damage claims arising under the Oil Pollution Act, claims for natural resource damages and associated damage-assessment costs, and any claims arising under the relevant Joint Operating Agreement. Anadarko also will transfer its 25% interest in Mississippi Canyon block 252 to BP. The settlement amount is equivalent to ~$5 per share after tax, eliminates all significant exposure to historical and future claims according to APC.
1:57AM Anadys Pharma agress to be acquired by Roche (RHHBY) for $3.70 per share (ANDS) 1.04 : Co announces it has entered into a definitive merger agreement to be acquired by Roche (RHHBY). Roche will commence an all cash tender offer for all outstanding shares of common stock of Anadys at $3.70 per share and represents a 256% premium over the closing price of $1.04 on October 14, 2011. The acquisition aims to expand future treatment options for hepatitis C patients.
1:38AM The Medicines Co's MDCO-2010 meets clinical trial objectives in patients undergoing open-heart surgery (MDCO) 18.47 : Co reports results of the first study in open heart surgery patients of MDCO-2010, an investigational antifibrinolytic agent designed to limit blood loss during surgery. The Phase IIa clinical trial met its two objectives: 1) demonstrate safety of a periprocedural infusion of escalating doses of MDCO-2010 and 2) investigate MDCO-2010 pharmacokinetic, pharmacodynamics and clinical effects. The trial demonstrated that MDCO-2010 has linear, predictable plasma pharmacokinetics with rapid clearance. In addition, MDCO-2010 was associated with significantly reduced 12-hour chest tube drainage and less transfusion requirements as compared to placebo.
1:35AM Vulcan Materials receives new 5-year $500 mln credit facility, cuts quarterly dividend to $0.01 from $0.25 (VMC) 32.12 : Co's board quarterly dividend of $0.01 per share on its common stock payable December 9, 2011, to shareholders of record on November 23, 2011. This dividend compares with the $0.25 per share quarterly dividend paid September 10, 2011. Co states: "The dividend reduction will improve available cash by approximately $124 million annually."
1:29AM Northfield Bancorp assumes all of the deposits and purchases essentially all of the assets of First State Bank from the FDIC (NFBK) 13.60 : Co announces assumed all deposits and purchased essentially all of the assets of First State Bank, Cranford, New Jersey, and placed into receivership with the FDIC. As of June 30, 2011 First State Bank reported total assets of $204.4 mln , which included loans, before allowances, of $147.4 mln. First State Bank also reported total deposits of $201.2 mln at June 30, 2011.
1:26AM AT&T reports it activated a record number of iPhones on Oct 14 (T) 29.17 :
1:23AM BNC Bancorp assumes all deposits and purchases certain assets of Blue Ridge Savings Bank (BNCN) 6.78 : CO announces that it has entered into a Purchase and Assumption Agreement with loss share arrangements with the FDIC to purchase substantially all of the assets and to assume substantially all of the deposits and other liabilities of Blue Ridge Savings Bank. Co purchased ~$160 mln in assets from the FDIC as Receiver of Blue Ridge. Additionally, BNC Bancorp's wholly-owned subsidiary will assume substantially all of the liabilities of Blue Ridge, including ~ $160 mln in customer deposits. Bank of North Carolina did not pay a premium to the FDIC to assume the deposits of Blue Ridge.
1:22AM State Bank Financial acquires assets and deposits of Piedmont Community Bank of Gray, Georgia from FDIC (STBZ) 13.20 : Co announces has agreed to acquire substantially all of the assets and deposits of Piedmont Community Bank. State Bank & Trust entered into a purchase and assumption agreement with a loss share arrangement with the FDIC, which includes all deposits as well as certain loans and other assets. As of June 30, 2011, Piedmont Community Bank reported total assets of ~$202 mln and total deposits of ~$181 mln.
1:00AM APAC Cust Svc acquired by One Equity Partners for $8.55 per share (APAC) 8.54 : Co announces it was acquired by One Equity Partners, the private investment arm of JPMorgan Chase. One Equity Partners paid APAC stockholders $8.55 per share in cash, which represents a premium of ~57% over APAC's closing share price on July 6, 2011, the last trading day prior to the announcement of the transaction.
