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VPOR A/S 3.5B from 2.5B CEO letter
DAVIE, FL -- ( Marketwired ) -- 02/04/15 -- Vapor Group, Inc. (OTCQB: VPOR), (the "Company" or "Vapor Group"), today released a letter to shareholders from its President and CEO, Dror Svorai . In the letter, Dror Svorai addresses several concerns of shareholders that have been brought to his attention.
Dear shareholder:
As a result of requests from several of you, I am writing to give you more information on recent events affecting your Company. I will address these one-by-one as follows.
The Increase in the Authorized: This morning we filed a form 8-K with the Securities and Exchange Commission that increased our authorized common stock from 2.5 billion to 3.5 billion shares. As stated in the 8-K, the increase was approved by the Company's Board of Directors and a majority of the voting stock of the Company. But before explaining this action further, let me review events pertaining to our common stock that are the reason for the increase.
As we stated in the 8-K, and previously in the 8-K of December 4, 2014 , we have had, and continue to have, several holders of convertible promissory notes convert portions of their debt into free-trading share. As noted, the Company has no control over their conversion of shares since a condition of their debt instruments is that each note holder can convert at will (in accordance with federal and state regulations).
Important, the documentation connected to the notes frequently requires that the Company authorize its transfer agent to reserve a quantity of shares that is a multiple of the total number of shares into which the note would convert at the time of its making, should the debt holder decide to convert any all or any of it after the six month regulatory holding period and should the stock price decline. Furthermore, such reservations frequently are set up such that any downturn in the stock's market price will trigger an increase in the quantity of shares reserved.
As a result of the recent downturn in our stock's market price, caused in no small part from the dilution of the sale of conversion shares by note holders, several note holders have required sizeable increases in their reserves resulting in a significant reduction in the number of authorized shares of common stock left in treasury. These treasury shares are needed, not only for their reserves, but for general business purposes, including future acquisitions that we are contemplating. In order to make sure that the Company does not default on its notes as a result of inadequate shares in treasury or in reserves, and in order to maintain adequate shares available for general business purposes, we increased the authorized common stock high enough to provide a significant cushion.
Swapping Stock for Debt: As of yesterday, primarily as a result of the large volume of shares issued from debt holder conversions, the number of shares issued and outstanding became 1,426,652,096. All of the debt conversions have resulted in a significant reduction in the Company's debt of over $1,500,000 . We expect that such conversions will extend into early April and continue to reduce our debt even further.
Why so many conversions? The reality is most of the financing available to small startup public companies is from lenders who use a business model that lets them hedge the risk of loss of their loan's principal and its profit by methodically converting portions of their loan as soon as permissible. If the Company to whom they have lent the money has adequate stock trading volume, the lender will try to take advantage of that volume by converting debt and selling the resultant shares into the market. With the right company as a debtor, not only can they get repaid their note ahead of maturity, but actually can earn a significant profit over and above the return of the debt instrument itself. To protect their interests, such lenders will also limit, subject to their approval and significant penalty fees, the right of the borrower to prepay any of the note before maturity -- meaning that they have adequate time to convert debt and earn additional profit even when the company notifies them that it wants to pay down or pay off the loan.
To this point, since the first of the year, Vapor Group has attempted to pay down several convertible promissory notes, only to be told "No." by the note holders.
Ending Our Cycle of Debt Financing: As stated, based on the strength of our cash position, we have tried to pay down several convertible promissory notes to avoid their conversion into stock. And we will continue to do so. The recent, rapid returns of our new subsidiary, VGR Media, Inc. , will help us pay down about $200,000 in debt this month. As I have said before, we believe that by late in the first quarter or latest, early second quarter, we will have reduced our debt burden by 90% or will have completely eliminated it. As a result of the Company's growth, going forward we believe that we can cease the use of convertible debt financing to fund our operations and expansion.
Reverse Split: Even though there are now almost 1.5 billion shares outstanding, our Board of Directors, for at least the period ending March 31, 2015 , and most likely also for the period ending June 30, 2015 , will not authorize any reverse split of our common shares. The matter of the quantity of shares issued and outstanding remains a concern to all of us; however, until we have either eliminated or significantly reduced the amount of debt on our balance sheet, which will limit the risk of debt holder conversions driving down the market price of the stock after the reverse, we won't consider any reverse split.
VGR Media, Inc. : Our newest subsidiary, a full service interactive advertising agency, continues to grow and as stated, will significantly contribute to our pay down of debt this month. To date it has helped us to greatly increase our online presence. This ad agency is a "platform" for the sales of our products, vaporizers and e-cigarettes alike, as well as products of other brand marketers. More detail on its results will be released in the near future in accordance with required federal regulatory filings pertaining to the acquisition of this subsidiary which we are now putting together.
Marketing: We continue to build distribution for our line of high quality, affordable vaporizers in Colorado , Washington and elsewhere. As stated before, in Colorado we have this line being "private labelled" for dispensaries and have expanded distribution to include over 100 retail stores across the State for our products. Separately, in March, we anticipate having final approvals so that we can announce the opening of our first "Total Vapor" franchise store in greater Philadelphia . In the months to come we will be announcing more franchise openings in the northeast.
Working Capital: All the startup activities and rapid growth that your Company consumes time, energy and lots of money. Throughout 2014 our monthly needs exceeded our cash flow which is why we used outside financing throughout the year to fuel our growth.
Since the start of 2015, we have not entered into any new convertible promissory note agreements or similar debt instruments because we have not needed the cash. In fact, almost daily, we are turning down offers of additional financing. The fact is, going forward and with a strengthened cash position, we can no longer justify to ourselves or our shareholders the cost of this type of financing.
I predict that 2015 will be our "break out" year. By year-end, we project a stronger balance sheet, a more diversified portfolio of product and services, an expanded and deeper distribution footprint and improved profitability and revenues. We are emerging from the development stage.
Very truly yours,
Dror Svorai President and CEO Vapor Group, Inc.
About Vapor Group, Inc.
Vapor Group, Inc. , www.vaporgroup.com, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, "Made in the USA " e-liquids, with and without nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group , Total Vapor, Vapor 123, and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising. In addition, Vapor Group owns and operates VGR Media, Inc. , www.vgr-media.com, a full service interactive advertising agency, offering customized performance marketing solutions to help marketers of consumer products acquire new customers and maximize their return on investment. VGR Media operates in the U.S. and internationally.
Vapor Group is committed to providing e-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.
Vapor Group is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.
Safe Harbor Statement:
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- activities of competitors and the presence of new or additional competition and conditions of equity markets.
CONTACT:
Vapor Group, Inc.
954-792-8450
Source: Vapor Group, Inc.
VPOR A/S 3.5B from 2.5B letter
DAVIE, FL -- ( Marketwired ) -- 02/04/15 -- Vapor Group, Inc. (OTCQB: VPOR), (the "Company" or "Vapor Group"), today released a letter to shareholders from its President and CEO, Dror Svorai . In the letter, Dror Svorai addresses several concerns of shareholders that have been brought to his attention.
Dear shareholder:
As a result of requests from several of you, I am writing to give you more information on recent events affecting your Company. I will address these one-by-one as follows.
The Increase in the Authorized: This morning we filed a form 8-K with the Securities and Exchange Commission that increased our authorized common stock from 2.5 billion to 3.5 billion shares. As stated in the 8-K, the increase was approved by the Company's Board of Directors and a majority of the voting stock of the Company. But before explaining this action further, let me review events pertaining to our common stock that are the reason for the increase.
As we stated in the 8-K, and previously in the 8-K of December 4, 2014 , we have had, and continue to have, several holders of convertible promissory notes convert portions of their debt into free-trading share. As noted, the Company has no control over their conversion of shares since a condition of their debt instruments is that each note holder can convert at will (in accordance with federal and state regulations).
Important, the documentation connected to the notes frequently requires that the Company authorize its transfer agent to reserve a quantity of shares that is a multiple of the total number of shares into which the note would convert at the time of its making, should the debt holder decide to convert any all or any of it after the six month regulatory holding period and should the stock price decline. Furthermore, such reservations frequently are set up such that any downturn in the stock's market price will trigger an increase in the quantity of shares reserved.
As a result of the recent downturn in our stock's market price, caused in no small part from the dilution of the sale of conversion shares by note holders, several note holders have required sizeable increases in their reserves resulting in a significant reduction in the number of authorized shares of common stock left in treasury. These treasury shares are needed, not only for their reserves, but for general business purposes, including future acquisitions that we are contemplating. In order to make sure that the Company does not default on its notes as a result of inadequate shares in treasury or in reserves, and in order to maintain adequate shares available for general business purposes, we increased the authorized common stock high enough to provide a significant cushion.
Swapping Stock for Debt: As of yesterday, primarily as a result of the large volume of shares issued from debt holder conversions, the number of shares issued and outstanding became 1,426,652,096. All of the debt conversions have resulted in a significant reduction in the Company's debt of over $1,500,000 . We expect that such conversions will extend into early April and continue to reduce our debt even further.
Why so many conversions? The reality is most of the financing available to small startup public companies is from lenders who use a business model that lets them hedge the risk of loss of their loan's principal and its profit by methodically converting portions of their loan as soon as permissible. If the Company to whom they have lent the money has adequate stock trading volume, the lender will try to take advantage of that volume by converting debt and selling the resultant shares into the market. With the right company as a debtor, not only can they get repaid their note ahead of maturity, but actually can earn a significant profit over and above the return of the debt instrument itself. To protect their interests, such lenders will also limit, subject to their approval and significant penalty fees, the right of the borrower to prepay any of the note before maturity -- meaning that they have adequate time to convert debt and earn additional profit even when the company notifies them that it wants to pay down or pay off the loan.
To this point, since the first of the year, Vapor Group has attempted to pay down several convertible promissory notes, only to be told "No." by the note holders.
Ending Our Cycle of Debt Financing: As stated, based on the strength of our cash position, we have tried to pay down several convertible promissory notes to avoid their conversion into stock. And we will continue to do so. The recent, rapid returns of our new subsidiary, VGR Media, Inc. , will help us pay down about $200,000 in debt this month. As I have said before, we believe that by late in the first quarter or latest, early second quarter, we will have reduced our debt burden by 90% or will have completely eliminated it. As a result of the Company's growth, going forward we believe that we can cease the use of convertible debt financing to fund our operations and expansion.
Reverse Split: Even though there are now almost 1.5 billion shares outstanding, our Board of Directors, for at least the period ending March 31, 2015 , and most likely also for the period ending June 30, 2015 , will not authorize any reverse split of our common shares. The matter of the quantity of shares issued and outstanding remains a concern to all of us; however, until we have either eliminated or significantly reduced the amount of debt on our balance sheet, which will limit the risk of debt holder conversions driving down the market price of the stock after the reverse, we won't consider any reverse split.
VGR Media, Inc. : Our newest subsidiary, a full service interactive advertising agency, continues to grow and as stated, will significantly contribute to our pay down of debt this month. To date it has helped us to greatly increase our online presence. This ad agency is a "platform" for the sales of our products, vaporizers and e-cigarettes alike, as well as products of other brand marketers. More detail on its results will be released in the near future in accordance with required federal regulatory filings pertaining to the acquisition of this subsidiary which we are now putting together.
Marketing: We continue to build distribution for our line of high quality, affordable vaporizers in Colorado , Washington and elsewhere. As stated before, in Colorado we have this line being "private labelled" for dispensaries and have expanded distribution to include over 100 retail stores across the State for our products. Separately, in March, we anticipate having final approvals so that we can announce the opening of our first "Total Vapor" franchise store in greater Philadelphia . In the months to come we will be announcing more franchise openings in the northeast.
Working Capital: All the startup activities and rapid growth that your Company consumes time, energy and lots of money. Throughout 2014 our monthly needs exceeded our cash flow which is why we used outside financing throughout the year to fuel our growth.
Since the start of 2015, we have not entered into any new convertible promissory note agreements or similar debt instruments because we have not needed the cash. In fact, almost daily, we are turning down offers of additional financing. The fact is, going forward and with a strengthened cash position, we can no longer justify to ourselves or our shareholders the cost of this type of financing.
I predict that 2015 will be our "break out" year. By year-end, we project a stronger balance sheet, a more diversified portfolio of product and services, an expanded and deeper distribution footprint and improved profitability and revenues. We are emerging from the development stage.
Very truly yours,
Dror Svorai President and CEO Vapor Group, Inc.
About Vapor Group, Inc.
Vapor Group, Inc. , www.vaporgroup.com, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, "Made in the USA " e-liquids, with and without nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group , Total Vapor, Vapor 123, and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising. In addition, Vapor Group owns and operates VGR Media, Inc. , www.vgr-media.com, a full service interactive advertising agency, offering customized performance marketing solutions to help marketers of consumer products acquire new customers and maximize their return on investment. VGR Media operates in the U.S. and internationally.
Vapor Group is committed to providing e-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.
Vapor Group is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.
Safe Harbor Statement:
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- activities of competitors and the presence of new or additional competition and conditions of equity markets.
CONTACT:
Vapor Group, Inc.
954-792-8450
Source: Vapor Group, Inc.
SHIP Nas warn & may R/S
Close .78 b 0.50 / a 1.08 -0.048
Baltic dry bulk index was down again am 557-2.2% lifetime low.
Seanergy Maritime Holdings Corp. Announces Receipt of Nasdaq Notice
Marketwired
February 03, 2015: 04:02 PM ET
Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) announced today it has received written notification from The Nasdaq Stock Market ("Nasdaq") dated January 28, 2015, indicating that because the closing bid price of the Company's common stock for 30 consecutive business days, from December 12, 2014 to January 27, 2015, was below the minimum $1.00 per share bid price requirement for continued listing on the Nasdaq Capital Market, the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2). Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the applicable grace period to regain compliance is 180 days, or until July 27, 2015.
The Company intends to monitor the closing bid price of its common stock between now and July 27, 2015 and is considering its options, including a reverse stock split, in order to regain compliance with the Nasdaq Capital Market minimum bid price requirement. The Company can cure this deficiency if the closing bid price of its common stock is $1.00 per share or higher for at least ten consecutive business days during the grace period. In the event the Company does not regain compliance within the 180-day grace period and it meets all other listing standards and requirements, the Company may be eligible for additional 180-day grace period.
The Company intends to cure the deficiency within the prescribed grace period. During this time, the Company's common stock will continue to be listed and trade on the Nasdaq Capital Market. The Company's business operations are not affected by the receipt of the notification.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is a Marshall Islands corporation with its executive offices in Athens, Greece. The Company is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers.
Upon closing of the previously announced agreed 2001 built Capesize acquisition, the Company will own one Capesize bulk carrier of approximately 171,000 dwt. According to the Company's business plan, Seanergy is continuously reviewing the market in order to identify further suitable vessel acquisitions.
The Company's common stock trades on the Nasdaq Capital Market under the symbol "SHIP".
Nasdaq Launches Experimental Lower Access Fee Program
Traders Magazine Online News, February 2, 2015
John D'Antona Jr.
In a bid to help simplify the current equity market structure, NASDAQ OMX, has announced a new experimental pilot program that lowers access fees for select stocks.
Effective today, the exchange said it is launching lower access fees for 14 stocks representing both small and large capitalization companies traded on U.S. equity listings venues. The goal is to boost trading on the exchange and increase profitability, as well as simplify the multiple access fees charged for stocks.
See Also: Nasdaq Looks At Getting Into Dark Pool Game
The program reduces the access fee to five cents per 100 shares from 30 cents per 100 shares in 14 stocks and reduces the rebates for liquidity provision on the Nasdaq Stock Market. According to the exchange, this experiment will generate much-needed data about the impact of the level of access fees on areas that matter most to investors and public companies such as the level of off-exchange trading, price discovery, trading costs, displayed liquidity and execution quality.
"We have a bias to action and finding solutions based on empirical evidence," said Tom Wittman, head of Global Equities and Executive Vice President of Global Trading and Market Services at Nasdaq. "Today we move forward proactively with our experimental pricing program to see how lowered access fees affects the quality of the markets for investors and public companies."
The duration of Nasdaq's experimental access fee program will be no less than four months. Periodically, Nasdaq will publicly post the results of the program. Statistics to be analyzed and discussed are changes in market share, displayed liquidity, effective spread and volatility amongst other metrics.
Obama to Propose Tax on Firms' Foreign Earnings
10:22 ET
WASHINGTON--U.S. President Barack Obama will propose a $478 billion increase in funding for rebuilding American infrastructure that would be paid for by levying a one-time tax on foreign earnings from U.S. companies, a White House official said Sunday.
In the proposal that will be outlined in Mr. Obama's fiscal 2016 budget on Monday, companies would be subject to a 14% tax on the up to $2 trillion of overseas earnings they have already accumulated, the official said. The money the new tax generates would be used to expand the Highway Trust Fund's surface transportation reauthorization from four years to six years, the White House official said.
Mr. Obama is also proposing a 19% tax on all foreign earnings by U.S. companies as they are accumulated, the official said. Under the proposal, companies would then be able to reinvest those funds in the U.S. without paying an additional tax.
Companies often pay little or no U.S. tax on their foreign profits now, because the U.S. allows them to defer that tax until the money is brought home. They can further offset their U.S. tax with credits for foreign tax paid.
"Unlike a voluntary repatriation holiday, which the president opposes and which would lose revenue, the president's proposed transition tax is a one-time, mandatory tax on previously untaxed foreign earnings, regardless of whether the earnings are repatriated," the official said. "This transition tax would mean that companies have to pay U.S. tax right now on the $2 trillion they already have overseas, rather than being able to delay paying any U.S. tax indefinitely."
Write to Carol E. Lee at carol.lee@wsj.com and John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
02-01-15 1022ET
Copyright (c) 2015 Dow Jones & Company, Inc.
China’s Manuf Gauge Declines to 49.8, Missing Estimate for 50.2
8:21 PM EST January 31, 2015
(Bloomberg) -- A Chinese manufacturing gauge sank to a more than two-year low in January, adding pressure on the government to stimulate an economy that last year expanded at the slowest pace since 1990.
The government’s Purchasing Managers’ Index fell to 49.8 in January from 50.1 in December, according to data released Sunday by the statistics bureau and the China Federation of Logistics and Purchasing in Beijing. That missed the median estimate of 50.2 in a Bloomberg News survey of analysts and is below the 50 level that separates expansion and contraction.
China’s fiscal revenue increased the least since 1991 last year due to a property slump and declining factory profits, curbing scope to boost growth with government spending. That may leave the onus on the central bank to spur the economy.
“China’s economic downturn will continue in the first quarter and manufacturing activities will stay in a contraction,” Hua Changchun, a China economist at Nomura Holdings Inc. in Hong Kong, said before today’s data release.
The non-manufacturing PMI fell to 53.7 in January from the previous month’s 54.1, according to a separate report today from the NBS and the CFLP. Services made up 48.2 percent of the economy in 2014, up 1.3 percentage points from a year earlier.
The government’s manufacturing index was based on a survey of purchasing executives at 3,000 companies.
The Chinese economy grew 7.4 percent last year and 7.3 percent last quarter, according to an NBS release last month.
NYSE Announces New Trading Platform: Pillar
The Pillar platform debuts in the second half of 2015 and will allow firms to connect to assorted NYSE markets.
Traders Magazine Online News, January 29, 2015
Phil Albinus
In an e-mail sent this afternoon, NYSE Group announced a new trading platform to be named Pillar will be rolled out in the second half of 2015. According to the press statement, Pillar will be "an integrated trading technology platform that will enable you to connect to all of our equities and options markets using a single specification."
The press statement added that "Pillar has been designed to reduce complexity, while enhancing consistency, performance and resiliency."
The rollout is slated to begin in the second half of 2015.
NYSE promised that Pillar will allow users to connect to each of its markets, namely NYSE, NYSE MKT, NYSE Arca, NYSE Arca Options, NYSE Amex Options, Global OTC and NYSE Bonds, This will also allow users to use "a single specification and will include new gateways and matching engines."
NYSE also claims that the Pillar technology will offer "More efficient processing; shorter time to market for ongoing enhancements; and simplified, harmonized order types, terminology and messaging across all of our markets."
NYSE Arca Equities will be the first market to migrate to Pillar during the third quarter of 2015.
According to NYSE:
During the first phase of implementation, you will continue to connect to existing NYSE Arca gateways as the new technology is deployed across our matching engines. The second phase, in the fourth quarter of 2015, will include the introduction of new customer gateways and connectivity. You will be required to write to the new protocols as well as establish new connectivity to NYSE Arca.
We will provide you with detailed information well in advance of each stage to help you best prepare for this transition. Our next email update will come in February, including links to detailed materials designed to support the transition.
NYSE Announces New Trading Platform: Pillar
The Pillar platform debuts in the second half of 2015 and will allow firms to connect to assorted NYSE markets.
Traders Magazine Online News, January 29, 2015
Phil Albinus
In an e-mail sent this afternoon, NYSE Group announced a new trading platform to be named Pillar will be rolled out in the second half of 2015. According to the press statement, Pillar will be "an integrated trading technology platform that will enable you to connect to all of our equities and options markets using a single specification."
The press statement added that "Pillar has been designed to reduce complexity, while enhancing consistency, performance and resiliency."
The rollout is slated to begin in the second half of 2015.
NYSE promised that Pillar will allow users to connect to each of its markets, namely NYSE, NYSE MKT, NYSE Arca, NYSE Arca Options, NYSE Amex Options, Global OTC and NYSE Bonds, This will also allow users to use "a single specification and will include new gateways and matching engines."
NYSE also claims that the Pillar technology will offer "More efficient processing; shorter time to market for ongoing enhancements; and simplified, harmonized order types, terminology and messaging across all of our markets."
NYSE Arca Equities will be the first market to migrate to Pillar during the third quarter of 2015.
According to NYSE:
During the first phase of implementation, you will continue to connect to existing NYSE Arca gateways as the new technology is deployed across our matching engines. The second phase, in the fourth quarter of 2015, will include the introduction of new customer gateways and connectivity. You will be required to write to the new protocols as well as establish new connectivity to NYSE Arca.
We will provide you with detailed information well in advance of each stage to help you best prepare for this transition. Our next email update will come in February, including links to detailed materials designed to support the transition.
APRI dips after news rip em
CBLI Cleveland Biolabs 1-20 at Open
$4.43 now
Stock Split in General
Cleveland Biolabs Inc CBLI:NASDAQ
Cleveland Biolabs Inc has announced a 1-20 split effective 1/28/15.
CBLI Cleveland Biolabs 1-20 at Open
$4.43 now
Stock Split in General
Cleveland Biolabs Inc CBLI:NASDAQ
Cleveland Biolabs Inc has announced a 1-20 split effective 1/28/15.
SA look at YHOO AH
Yahoo guides light; Goldman hints at Yahoo Japan move • 7:00 PM
Eric Jhonsa, SA News Editor
• Yahoo (NASDAQ:YHOO) has guided in its Q4 earnings slides (.pdf) for Q1 revenue (ex-TAC) of $1.02B-$1.06B, below a $1.1B consensus. Adjusted EBITDA is expected to fall to $200M-$240M from $306M a year earlier, and op. income to $50M-$90M from $149M.
• The company used its Alibaba IPO windfall to buy back $980M worth of shares in Q4 at an average price of $45.26 (contributed to the EPS beat). $9.7B have been bought back since Q2 2012.
• Q4 search revenue (ex-TAC) was nearly flat Y/Y at $462M, after rising 6% in Q3. However, search click revenue (excludes Microsoft payments) rose 18%, driven by a 10% increase in paid clicks and a 7% increase in price per click.
• Display revenue (ex-TAC), still hurt by share loss and the transition to native ads, fell 5% to $464M. Ads sold rose 17%, but price per ad fell 20%. All other revenue rose 2% to $253M.
• Americas revenue was flat Y/Y at $913M. EMEA fell 7% to $87M, and Asia-Pac 7% to $180M. Operating expenses rose 6% to $923M.
• On the CC, CFO Ken Goldman says Yahoo didn't include its Yahoo Japan (OTCPK:YAHOF) stake in the Alibaba spinoff in order to keep the transaction simple, but hints some other move could be on tap. "We are not saying we will not do something."
• Marissa Mayer says Yahoo is talking with Microsoft about the terms of the companies' search alliance; Mayer has made it clear more than once she's not happy with its performance. Not surprisingly, she also suggests Yahoo would love to displace Google (previous) as Apple's Safari search provider.
• YHOO +7.4% AH. Q4 results, Alibaba announcement.
Oppenheimer SEC today
3:58p ET
Oppenheimer & Co. agreed to pay a combined $20 million in settlements over allegations of misconduct in the brokerage's handling of penny-stock trades and ignoring red flags signaling potential violations, as part of a broader government effort to improve compliance with U.S. regulations.
The Securities and Exchange Commission said on Tuesday that Oppenheimer agreed to admit wrongdoing and pay $10 million to settle SEC's charges and an additional $10 million to settle a parallel case with the Treasury Department .
"Despite red flags suggesting that Oppenheimer's customer's stock sales were not exempt from registration, Oppenheimer nonetheless allowed unregistered sales to occur through its account, failing in its gatekeeper role," said Andrew J. Ceresney , director of the SEC's enforcement division.
For its part, Oppenheimer said it was "pleased to put these matters, which involve activity that occurred years ago, behind it. The ability to finalize matters involving two regulatory agencies in a coordinated manner was helpful in bringing this matter to a conclusion."
According to the SEC , Oppenheimer executed billions of shares of penny-stocks for a proprietary account of a customer, Bahamas -based Gibraltar Global Securities , which wasn't registered to do business in the U.S.
The agency said Oppenheimer apparently knew or was negligent in not knowing that Gibraltar was executing transactions and providing brokerage services for its underlying customers, including many in the U.S.
Gibraltar couldn't be reached for comment on Tuesday.
The SEC also found that Oppenheimer failed to report to report potential misconduct by Gibraltar and its customers, and that Oppenheimer failed to properly report, withhold and remit more than $3 million in backup withholding taxes from sales proceeds in Gibraltar's account.
The SEC said it is continuing its investigation into allegations Oppenheimer engaged in unregistered sales of penny stocks on behalf of another customer, which the SEC didn't identify. The SEC said that investigation found the sales generated approximately $12 million in profit, of which Oppenheimer was paid $588,400 in commissions. In that case, Oppenheimer again is accused of failing to respond to red flags and conduct a search into whether sales were exempt from registration requirements.
The SEC said it separately had charged Gibraltar with misconduct in 2013.
Write to Tess Stynes at tess.stynes@wsj.com
Corrections & Amplifications
An earlier version of this article incorrectly said the firm executed billions of dollars in penny-stock trades.
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Two FX comments GBP & Swiss
23:27 et
MORGAN STANLEY: UK IS FACED WITH FISCAL TIGHTENING AND POLITICAL POLICIES WHICH APPEAR UNATTRACTIVE TO FOREIGN INVESTORS REGARDLESS OF WHO WINS THE GENERAL ELECTION IN MAY. AS A RESULT WE HAVE TAKEN OUR ALREADY GBP/USD BEARISH FORECASTS EVEN LOWER
AUSTRIA FINMIN: SWITZERLAND CANNOT ALLOW ITS CURRENCY TO REMAIN AT ITS CURRENT HEADY LEVELS AGAINST EURO OVER LONGER TERM AS IT WILL BE TOO DAMAGING FOR SWISS ECONOMY
BI: S&P 500 7th worst mkt of 8 majors 2015
So Far, The US Has The Worst-Performing Big Stock Market Of 2015
Doug Short, Advisor Perspectives
Jan. 25, 2015, 12:40 PM
Read more: http://www.businessinsider.com/world-market-performance-through-jan-23-2015-1#ixzz3PtXBo8rY
or at
http://www.businessinsider.com/world-market-performance-through-jan-23-2015-1?utm_content=&utm_medium=email&utm_source=alerts&nr_email_referer=1
Seven of eight indexes on my world market watch list posted weekly gains, with the three European indexes topping the list, thanks to the ECB's QE. France's CAC 40 was up 5.96%, Germany's DAX rose 4.74% and the UK's FTSE 100 gained 4.31%.
But the list of big winners extended beyond Europe. The three Asia-Pacific Indexes posted gains ranging from 3.10% to 4.11%.
The S&P 500 was the poorest performer of the weekly winners, but its 1.60% gain snapped a three-week losing streak. China's Shanghai Composite posted the only weekly loss, down a modest -0.73%.
Here is a overlay of the eight for a sense of their comparative performance so far in 2015.
NYT: Pros, Cons of Strong Dollar
The Strong Dollar Is Always Good, Except When It Isn’t
JAN. 24, 2015
Credit Minh Uong/The New York Times
Strategies
By JEFF SOMMER
United States Treasury secretaries routinely say that they favor a strong dollar, regardless of circumstances or economic conditions. And the dollar is strong right now, thanks in no small part to actions by foreign central banks.
The European Central Bank significantly loosened its monetary policy on Thursday, in the process driving down the euro and bolstering the dollar. Measured against a basket of currencies, the dollar’s value has soared 19 percent since May, and the momentum seems to be building.
“A strong dollar has always been a good thing for the United States,” Treasury Secretary Jacob J. Lew declared not long ago, a position that he has restated frequently.
But is it really a good thing — for the United States and the global economy?
In 2011, Timothy F. Geithner, then the Treasury secretary, said, “A strong dollar will always be in the interest of the United States.” He uttered that mantra even though leading economists at the time were noting that the dollar was actually weakening and the shift was in the best interest of the United States. A weaker dollar meant that American exports were more competitive in world markets and consumption of imported goods was declining. In turn, that trimmed America’s trade and budget deficits, stimulated the domestic economy, and helped to spur job creation.
A weaker dollar was, arguably, one of the reasons for the health of the American economy, compared with other nations. The stronger dollar that has resulted from that period of American advantage could reverse some of the progress that the United States has made. That’s not obviously a good thing for the United States.
Paying ritualistic homage to the dollar isn’t limited to recent Democratic administrations. After leaving office, Paul O’Neill, Treasury secretary under President George W. Bush in 2001 and 2002, recalled those years: “I was not supposed to say anything but ‘strong dollar, strong dollar.’ I argued then and would argue now that the idea of a strong-dollar policy is a vacuous notion.”
No matter. The dollar is a potent symbol of America’s global power, and United States government officials habitually bow to it, even when their comments aren’t firmly linked to policy or geopolitical reality, said Eswar S. Prasad, a Cornell University professor of economics who is the author of the “The Dollar Trap,” a study of the dollar’s role in global finance.
“The notion that a strong country always has a strong currency isn’t something that many countries subscribe to,” he said. As a continental power that doesn’t rely on exports to the extent that many other nations do, he said, “the United States has been able to sustain the illusion of the importance of a strong currency, but really, when the dollar is fairly strong, as it is now, it’s a mixed blessing for the economy of the United States.”
Disentangling the factors that affect foreign exchange rates — and that make the dollar strong — isn’t simple. Supply and demand in the marketplace can be masked temporarily by canny trading and improper market activities.
For the most part, though, it appears that the dollar has strengthened for substantive reasons: It has become more attractive than other currencies, on a relative basis, because it’s linked to the American economy, which has been growing more rapidly than those of most other developed countries.
What’s more, the monetary cycle in the United States has diverged from that in many other countries: The Federal Reserve has signaled that it is considering interest rate increases, and it has ended bond purchases — or quantitative easing. That reflects the growth of the American economy, a big contrast with Europe and Japan, which are struggling. Last week, the European Central Bank embarked on a new, 1 trillion euro ($1.16 billion) campaign of quantitative easing, and it has been further lowering interest rates that are already extraordinarily low and sometimes in negative territory.
In Japan, the central bank has also been aggressively expanding its quantitative easing program and keeping interest rates low.
Furthermore, the dollar has worldwide appeal as a “safe haven,” a destination currency in times of global trouble. That role is likely to become more crucial now that the Swiss franc, another traditional haven, has begun to gyrate wildly in value. That has occurred since Jan. 15, when the Swiss National Bank eliminated the franc’s peg to the euro and started charging banks interest of 0.75 percent to hold their reserves.
The Greek elections on Sunday, which have already unnerved financial markets, could well add more immediate luster to the dollar.
Whether this is truly good for the United States is another matter.
There are some clear benefits, which Mr. Prasad enumerated. Global money flooding into dollar-denominated investments tends to lower interest rates in this country. That typically makes home mortgages cheaper, and a variety of assets more valuable, including houses, bonds and stocks. Americans abroad can buy more with dollars, and imported goods like clothing are cheaper. Add that to the windfall for consumers coming from lower oil prices and it could stimulate the economy.
But there are obvious problems, too. There could be negative spillover effects in emerging markets, where corporate debt has increasingly been dollar-denominated. As that debt becomes more expensive in local currencies, financial stress is likely to heighten.
American exports tend to become more expensive abroad, too, hurting businesses that make them and reducing the rate of job creation. “If the dollar were to become much stronger and it persisted, there will be an outcry,” Mr. Prasad said.
More than 40 percent of revenue for the companies in the Standard & Poor’s 500-stock index come from abroad, and those with significant foreign operations will have earnings problems, if they haven’t hedged their currency exposure.
Johnson & Johnson last week reported that its earnings were impaired by transactions in foreign currencies that translated into fewer dollars. Some Wall Street analysts have begun to downgrade their estimates for companies with foreign exposure, while raising their price targets for companies based entirely at home.
Bespoke Investment Group offered a good example of how two companies’ fortunes have diverged in the last year, as the dollar has strengthened. In 2008, Altria, the old Philip Morris tobacco group, divided in two, based mainly on revenue source: Altria’s revenue is generated in the United States; Philip Morris International’s revenue is generated abroad.
Since the dollar began to rise last year, Altria Group, the domestic company, has skyrocketed, while Philip Morris, the international company, has “flatlined,” Bespoke said in a report to clients.
All of which suggests that a strong dollar isn’t entirely and always good, whatever the Treasury secretary says. But it is something we will have to learn to live with.
If oil <$30, brace for a global recession
By Wallace Witkowski
http://www.marketwatch.com/story/if-oil-drops-below-30-a-barrel-brace-for-a-global-recession-2015-01-22
Published: Jan 22, 2015 6:33 p.m. ET
$30 may be the canary in the coal mine for the global economy.
SAN FRANCISCO (MarketWatch)—The price of oil is about $17 a barrel away from signaling that a global recession is inevitable, according to a new survey of investment professionals.
The survey from ConvergEx Group polled 306 investment professionals, asking, among other things, what oil price would show that a global recession was inevitable.
“The idea behind this question was simple — at some point oil prices aren’t just a nice theoretical tailwind for global economies,” said Nicholas Colas, chief market strategist at ConvergEx, in a note. “Rather, they become a signal that worldwide demand is contracting so quickly that oil prices must quickly decline to reflect that fact.”
The most common answer was $30 a barrel, from 26% of respondents, with $35 a barrel being the second most common answer (16% of respondents). All told, 62% of respondents said $30 or lower crude was a global recession’s canary in a coal mine.
More than half those surveyed represented buy-side firms such as asset managers and hedge funds, and about a quarter of them were from sell-side firms such as banks or broker dealers, according to ConvergEx.
Crude oil for March delivery CLH5, -2.20% settled down $1.47, or 3.1%, at $46.31 a barrel on the New York Mercantile Exchange Thursday, as U.S. inventories for this time of year hit their highest level in eight decades.
About 68% of the respondents said oil hasn’t reached a bottom yet, and only 20% think it already has.
On Thursday, Organization of the Petroleum Exporting Countries Secretary-General Abdalla el-Badri said he thinks oil prices will stay where they are now, setting up for an eventual rebound. Recently, Iran’s oil minister said his country’s oil industry is not threatened by $25 a barrel prices.
While a continued slide in oil prices may seem foreboding, not many of those surveyed think oil will actually drop to such low prices. Only 8% of those polled believe oil will end 2015 at below $40 a barrel, with the vast majority thinking it will settle above that: 43% estimated $40 to $60 a barrel, and 42% expect $60 to $80 a barrel.
Those estimates, however, appear to be fluid. A ConvergEx survey conducted in December, when oil was at $63 a barrel, showed 89% of respondents forecasting an end-of-2015 price of more than $60, and 47% estimating oil at $80 a barrel or more.
Most are looking for oil prices to rebound while acknowledging that current prices are benefiting the U.S. economy. About 66% said current prices are a positive to the U.S. economy, but if oil prices keep sliding from current levels, the U.S. labor market will take a hit, according to 55% of respondents.
“The bottom line here is that investors say the drop in oil prices has been a net positive thus far, but their forecast is less sunny,” said Colas.
FXCM lowered by Citi -75%
1pm ET DJ
Citi affirmed its Sell rating and $0.75 price target on FXCM Inc (NYSE: FXCM) Friday.
Analyst William R. Katz saw a 75 percent downside to the stock and felt that its shares were being boosted by retail day-traders who may be looking at short-term technicals rather than the "significantly impaired equity value" of the company.
Katz believed "the residual value to shareholders is worth no greater than $0.60 to $0.85 per share" and thought that the market capitalization of the company, including the proceeds from Leucadia, should not exceed $1.2 billion .
a few movers pre ETFC
Infinera Corporation (NASDAQ: INFN) shares jumped 15% to $16.56 in pre-market trading after the company reported better-than-expected fourth-quarter earnings.
E* TRADE Financial Corporation (NASDAQ: ETFC) shares surged 6.14% to $24.04 in pre-market trading. E*Trade reported Q4 adjusted earnings of $0.26 per share on revenue of $461 million . Credit Suisse upgraded E*Trade Financial from Neutral to Outperform and raised the price target from $24.00 to $28.00 .
VIVUS Inc. (NASDAQ: VVUS) shares gained 4.65% to $2.70 in the pre-market trading session after dropping 5.15% on Thursday.
Maxim Integrated Products, Inc. (NASDAQ: MXIM) gained 4.51% to $34.50 in pre-market trading after the company reported stronger-than-expected second-quarter earnings.
Starbucks Corporation (NASDAQ: SBUX) shares rose 4.42% to $86.40 in pre-market trading after the company reported in-line earnings for the fiscal first quarter. Starbucks also named Kevin Johnson as President and COO.
Preview of Greek election & outcome
PREVIEW: Greek snap election to be held on Sunday 25th January with the anti-EU SYRIZA party leading in the broad consensus of polls
Timing
Voting for the Greek general election on Sunday finishes at 1100CST/1700GMT with exit polls to be released shortly afterwards. There will be an initial estimate published from a small sample of ballots at around 1330CST/1930GMT with a more accurate forecast due before 1600CST/2200GMT.
Election System
The leftwing SYRIZA party have maintained their lead over the New Democracy party in the latest polls but are forecast to fall short of the 151 seats needed for an overall majority. Therefore, once sworn in, the new prime minister will have 15 days to win a confidence vote with an overall majority meaning that support could be required from other parties. If this fails, then the president will give the leader of the party of the most votes 3 days to form a government with the mandate then passed to the second-biggest party.
Market Reaction
With SYRIZA widely expected to win in the election, markets may be unreactive at first if this were to become an eventuality as much will depend on if a SYRIZA-led government can reach a compromise with the Troika on Greece’s bailout programme. However, if SYRIZA were to win an overall majority, this could see EUR weaken and Greek bond yields increase, as this would give SYRIZA increased leverage to dictate more lenient bailout terms and increase the likelihood of a Greek exit from the Eurozone. In the unexpected event that the New Democracy party manages to win the election, EUR could strengthen and be a net positive for Greek stocks given that the majority of analysts expect SYRIZA to win.
Latest Polls
Metron Analysis shows SYRIZA’s lead over the New Democracy party at 5.3%.
GPO has SYRIZA currently leading New Democracy party by 6%, up from a 4% lead the previous week.
Pulse Poll has SYRIZA’s lead over New Democracy at 3.5%.
MCD bit more
*MW McDonald's Dec. same-store sales down 0.6% in Europe, down 6.2% in APMEA
*MW McDonald's Dec. global same-store sales down 0.1%
By MarketWatch
McDonald's stock rises after same-store sales decline less than expected
Shares of McDonald's Corp. (MCD)rallied 1.5% in premarket trade Friday, after the fastfood giant reported fourth-quarter same-store sales that declined less than expected, offsetting lower-than-anticipated profit and sales. For the quarter ended Dec. 31 , global same-store sales fell 0.9% from a year ago, with sales in the U.S. falling 1.7%, but that was better than the FactSet consensus analyst estimates for declines of 1.6% and 2%, respectively. Earnings fell to $1.1 billion , or $1.13 a share, from $1.4 billion , or $1.40 a share in the year-earlier period, with supplier issues in Asia reducing earnings per share by 9 cents . Revenue declined 7% to $6.57 billion . Excluding the impact of currencies moves, revenue would have declined 1%. Analysts were projecting earnings per share of $1.22 and revenue of $6.69 billion . The stock, a component of the Dow Jones Industrial Average, has lost 0.1% over the past three months, while the Dow has gained 6.8%.
Rockwell Collins raises full-year profit outlook
Rockwell Collins (COL)raised its full-year profit outlook on Friday, after the communication and aviation electronics company reported better-than-expected fiscal first quarter earnings and sales growth. For the quarter ended Dec. 31 , net earnings rose to $167 million , or $1.24 a share, from $131 million , or 96 cents a share, in the year-earlier period. Earnings per share from continuing operations were $1.26 a share. Revenue rose 16% to $1.23 billion . The results topped the FactSet consensus analyst estimates for earnings of $1.13 a share and revenue of $1.22 billion . For the full year, the company raised its per-share earnings outlook to a range of $5.10 to $5.30 from $4.90 to $5.10 . Cash flow from operations is now expected to be $700 million to $800 million , compared with the company's previous projection of $675 million to $775 million . The stock, which was still inactive in premarket trade, has run up 11% over the past three months, outperforming the S&P 500's 5.8% rise.
Honeywell's profit, sales edge above expectations
Honeywell International (HON)reported on Friday a fourth-quarter net profit that edged up to $975 million , or $1.20 a share, from $947 million , or $1.19 a share in the same period a year ago. Excluding the pension mark-to-market adjustment, earnings per share were $1.43 , topping that FactSet consensus analyst estimate of $1.42 . Revenue slipped 1% to $10.27 billion , compared with analyst forecasts of $10.21 billion . The industrial conglomerate affirmed its 2015 adjusted earnings per share outlook of $5.95 to $6.15 , which surrounds analyst projections of $6.11 . The stock was up 1% in light, premarket trade. It has gained 6.2% over the past three months through Thursday, while the S&P 500 has advanced 5.8%.
Sony asks to delay third-quarter earnings due to hacking
Sony Corp. (SNE)has asked to delay reporting fiscal third-quarter earnings, as a result of the hacking attack on its movie business, Sony Pictures Entertainment . The company said Friday it has filed an application with the Financial Services Agency of Japan for approval of an extension of the reporting deadline to March 31 , compared with an original deadline of February 16 . Hackers attacked Sony Pictures Entertainment's networks in November, stealing and releasing thousands of embarrassing emails in what was seen as retaliation for the movie studio's film "The Interview", which satirizes North Korea's leader Kim Jong Un . "Most of SPE's financial and accounting applications and many other critical information technology applications will not be functional until early February 2015 due to the amount of destruction and disruption that occurred, and the care necessary to avoid further damage by prematurely restarting functions," Sony said in a statement. While it hopes to delay the earnings release, the Japanese company said it still plans to issue a release on Feb. 4 to give updated third-quarter forecasts, as far as possible.
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01-23-15 0831ET
MCD and also Baltic DI fall
MCD added that Jan sales also weak.
Baltic Dry Index at 720 points, falls 4.1% that's lot. Haven't seen a 4% for long time.
P&D by EPAZ, reminder of risks, story
http://www.pumpsanddumps.com/2014/10/motive-for-delinquent-filings-becomes.html
Motive for Delinquent Filings Becomes Clear As EPAZ Nukes Its Shareholder Base
No example can better illustrate the need for stricter regulation than the recent shenanigans undertaken by Epazz, Inc. (EPAZ and EPAZD). Only on the OTCmarkets can one commit such a blatant act of fraud without repercussions. Even in the wildest of the wild west days of the Vancouver Stock Exchange there is no way one could have pulled off the stunt that these shysters have just pulled.
The red flags were out and waving briskly. As an SEC registered reporting company, EPAZ is required to file financials every quarter as Forms 10-Q and 10-K. The company hadn't filed a timely financial since May 2010. It seems that whenever the overdue financials were finally filed, lottery balls were used to generate the numbers as most were the subject of subsequent amendments, some issued almost a year later. The consistently delinquent filings earned the ticker a STOP Sign from OTCmarkets signifying a "No Information" status. Only recently was EPAZ able to regain its "Current Information" designation.
old KWK now KWKA.ob
Listed as OTC at hub box, but OTCQB at otcmarkets.
Was an Amex to NYSE and lost that. Energy thing.
thanks too. the butter idea looks good
hmm been looking for a good butter alternative! Not in regular store yet, but then wasn't looking for it or for milk. Milk good in coffee? Haven't kicked coffee/tea like did soda.
hempcrete New to me. Interesting.
Hemp seeds look like a coming thing
I was watching some network TV show about alternative snacks and cooking ingredents that add variety to diet when getting away from the common bag kind.
They showed hemp seed chips that look like usual potato chip. With a standard chip shape there's a nice snap and mouth taste was pleasing. The initial reaction by the women being shown the bag was to be expected, as in ahha, "do I get high?". Of course they had to go there in humor. But no connection at all.
Being they wanted to get off the fast food wagon train, they gave it a shot. Reactions seemed to be ok ones. Not jumping up and down over them, but not rejection either. Took a few seconds to let the sensation register and then seemed ok with them. Moved on to other things.
They talked a little about using the hemp seeds themselves in cooking matters. Again seemed a decent addition.
Site below is rather glowing about the health benefits. The gluten-free aspect will ring bells being such a hot thing now.
Hemp in variety of forms, powders, liquids, etc. Kind of a chia seed in makeup.
Omega-3 for the heart, very high protein content, not gassy or bloating like many nuts are.
http://www.superfoods-for-superhealth.com/hemp-seed.html
Bank Losses From Swiss Currency Surprise Seen Mounting
By Elena Logutenkova - Jan 19, 2015 4:46am ET
The $400 million of cumulative losses that Citigroup Inc. (C), Deutsche Bank AG and Barclays Plc (BARC) are said to have suffered from the Swiss central bank’s decision to end the cap on the franc may be followed by others in coming days.
“The losses will be in the billions -- they are still being tallied,” said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. “They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system.”
Citigroup, the world’s biggest currencies dealer, lost more than $150 million at its trading desks, a person with knowledge of the matter said last week. Deutsche Bank lost $150 million and Barclays less than $100 million, people familiar with the events said, after the Swiss National Bank scrapped a three-year-old policy of capping its currency against the euro and the franc soared as much as 41 percent that day versus the euro. Spokesmen for the three banks declined to comment.
Marko Dimitrijevic, the hedge fund manager who survived at least five emerging-market debt crises, is closing his largest hedge fund, which had about $830 million in assets at the end of the year, after losing virtually all its money on the SNB’s decision, a person familiar with the firm said last week.
Popular Trade
FXCM Inc., the largest U.S. retail foreign-exchange broker, got a $300 million cash infusion from Leucadia National Corp. after warning that client losses threatened its compliance with capital rules. FXCM, which handled $1.4 trillion of trades for individuals last quarter, said it was owed $225 million by customers.
The SNB’s move “shocked people all over the world,” Timothy Massad, chairman of the U.S. Commodity Futures Trading Commission, said in an interview in Hong Kong. The regulator is “continuously” monitoring the situation, he said.
Shorting the franc was a popular trade and most firms would leverage their positions some 20 times or more, said Williams, who consults for hedge funds. With such leverage a 5 percent move against the position wipes out all the value, yet the trades were seen as relatively low-risk by models used by financial institutions because volatility of the franc was reduced by the SNB’s cap, he said.
‘Still Gambling’
Citigroup had reported an average total trading value-at-risk, a measure of how much the company could lose in trading in one day, of $105 million in the third quarter, of which $32 million was attributed to foreign-exchange risks. Deutsche Bank (DBK)’s stressed value-at-risk, which measures possible daily losses in market turmoil, averaged 109 million euros ($126 million) in the first nine months, with 27 million euros related to foreign-exchange risks.
“The banks’ losses aren’t large but what it does show is that they are still gambling by taking positions,” said Gordon Kerr, a former banker and consultant at London-based Cobden Partners, an adviser to governments. “Brokers that lost money will worry about being shunned by clients, which might pull liquidity.”
Banks may also suffer because of prime brokerage services, which include activities such as securities lending, trade execution and cash management for hedge funds. Citigroup’s losses aren’t tied to its relationships with FXCM and other retail trading platforms, the person, who asked not to be identified because the information hasn’t been disclosed publicly, said last week.
Swiss Banks
Swiss banks, which haven’t announced any losses so far, will probably also suffer in the longer term, said Arturo Bris, a professor at the Lausanne-based IMD business school.
“The negative effects for the Swiss banks come in two ways,” Bris said. “First, it will reduce the flow of assets from the outside and will encourage the exit of Swiss money to other countries. Secondly, they will be hurt by the negative impact on the Swiss economy.”
Julius Baer Group Ltd. (BAER), Switzerland’s third-largest wealth manager, said it plans to take “appropriate measures to defend the group’s profitability” from the stronger franc. The bank didn’t suffer losses on the two trading days following SNB decision, the Zurich-based lender said in a statement.
The SNB’s move may have negative consequences for the credit ratings of Swiss banks and asset managers because it puts pressure on their profitability and asset quality, Moody’s Investors Service Ltd. said. It may also hurt Polish and Austrian banks that have provided loans in francs, it said.
Pain from wrong-way bets may not be limited to just the financial industry.
“We’re just hearing about financial institutions now,” Philip Guarco, global head of fixed-income strategy at JPMorgan Private Bank, said in an interview on Bloomberg Television. “Remember what happened back in 2009, when the dollar rallied? You actually had major corporates in Mexico and Brazil, where the treasury departments were taking positions in FX. So we haven’t heard the end of it yet.”
To contact the reporter on this story: Elena Logutenkova in Zurich at elogutenkova@bloomberg.net
To contact the editors responsible for this story: Elisa Martinuzzi at emartinuzzi@bloomberg.net Simone Meier, Steve Bailey
ECB May Deliver $635B to Steer Euro Away From Deflation
By Alessandro Speciale and Andre Tartar - Jan 19, 2015 6:41am ET
Mario Draghi is likely to announce a 550 billion-euro ($635 billion) bond-purchase program this week and won’t skimp too much on the details, economists say.
The European Central Bank president will make his biggest push yet to steer the euro area away from deflation by announcing quantitative easing on Jan. 22, according to 93 percent of respondents in a Bloomberg News survey. The median estimate of the size of the package tops the 500 billion euros in models presented to officials this month.
Draghi’s goal at a press conference after the Governing Council gathers will be to convince investors he has a strategy big and bold enough to reinvigorate the moribund economy. Speculation over his plans has already sent the euro to an 11-year low, with the fund flows probably contributing to the Swiss National Bank’s shock decision to end a cap on the franc.
“Market expectations now are stellar,” said Attilio Bertini, head of research at Credito Valtellinese SC in Sondrio, Italy. There must be “no disappointment” and “the ECB’s next move should be pervasive, risk-transferring and long-lasting,” he said.
Shouldn't the ECB Buy Bonds, Too?
The proportion of economists predicting QE at this week’s meeting has risen from 37 percent in a survey carried out after the last monetary-policy meeting on Dec. 4. This month’s survey polled 60 economists and was conducted from Jan. 9 to Jan. 16.
German Criticism
With plunging oil prices tipping the euro-area inflation rate below zero for the first time in more than five years, policy makers have been arguing in media interviews and speeches over how to react. Much of that has been in Germany, where criticism of QE is strongest.
Bundesbank president Jens Weidmann has claimed that while cheaper energy weighs on inflation in the short term, it also provides stimulus to the economy. That position was reiterated by the German central bank in its monthly bulletin today. Executive Board member Benoit Coeure says it might not be enough.
“Anything that happens to headline inflation rates has potential to feed into long-term inflation expectations and that’s what we have to be wary of,” Coeure said in comments published on the ECB’s website last week. While no decision has been taken on QE, “for it to be efficient it would have to be big,” he said.
Sovereign Bonds
About half of economists in the Bloomberg survey forecast the ECB will announce a total purchase size, and 15 percent said it’ll limit itself to a monthly amount. Monthly buying could continue for a predetermined period, or until inflation is back at the ECB’s goal of just under 2 percent. Consumer prices fell an annual 0.2 percent last month.
Fifty-seven percent of respondents said QE will largely focus on government bonds, with some other debt instruments included. A quarter predicted a broad mix of sovereign debt and other securities, and 14 percent said the program will exclusively purchase sovereigns.
Draghi intends to expand the ECB’s balance sheet to as much as 3 trillion euros through asset purchases and loans to banks. The central bank currently has assets of 2.2 trillion euros, though that’s likely to shrink in coming weeks as 200 billion euros of crisis-era loans to banks mature.
He met with German Chancellor Angela Merkel on Jan. 14 for “regular informal talks,” a German government spokesman said last week, declining to comment on the topic. Spiegel magazine reported on Jan. 16 that Draghi told her the latest QE plans.
Risk Allocation
Those plans include limiting risk-sharing by having national central banks buy the debt of their own countries, Spiegel said, without stating where it got the information. Purchases would be based on the ECB’s capital key, or roughly equivalent to the relative size of each economy. The key is 18 percent for Germany, 14 percent for France, 12 percent for Italy, and 9 percent for Spain. All other nations are below 5 percent and eight are under 1 percent.
Purchases would be limited to 20 percent to 25 percent of each country’s debt, and Greece would be excluded because its bonds don’t meet quality criteria, Spiegel said.
Frankfurter Allgemeine Sonntagszeitung reported yesterday that national central banks would be liable for at least half of any losses that may arise from buying bonds issued by their own country. The German newspaper didn’t say where it got the information.
No Back Door
More than two-thirds of respondents in the Bloomberg survey said the ECB will use the capital key to set asset-buying, and 27 percent said national central banks will shoulder at least some of the risk on their own.
“To have any significant effect on periphery bond rates, which we think is considered an important implicit policy target by the ECB, the program would have to include periphery government bonds,” said Christopher Matthies, an economist at Sparkasse Suedholstein in Neumuenster, Germany.
Officials have also floated ideas such as the ECB buying debt only above a certain rating threshold or only making purchases up to a certain amount, leaving national central banks to decide if they want to go further.
Dutch central-bank Governor Klaas Knot told Spiegel that the decision to share risk is a matter for elected politicians, not central bankers.
“We have to avoid that decisions are taken through the back door of the ECB balance sheet,” he said in an interview.
Legal Opinion
That debate is colored by a European Court of Justice opinion last week on an earlier bond-buying plan, Outright Monetary Transactions. The non-binding opinion, which will be followed by a ruling in four to six months, said the ECB should have “broad discretion” when framing monetary policy, while still pointing to limits to its powers.
Ultimately, some level of risk separation might be what it takes to mute the strongest opponents of QE at this week’s meeting and help Draghi show investors that the Governing Council is committed to its task.
“There’s already a majority in favor of QE and even purchases of government bonds,” said Kristian Toedtmann, an economist at DekaBank in Frankfurt. “But the ECB stands in a tradition of broad consensus.”
To contact the reporters on this story: Alessandro Speciale in Frankfurt at aspeciale@bloomberg.net; Andre Tartar in London at atartar@bloomberg.net
To contact the editors responsible for this story: Fergal O’Brien at fobrien@bloomberg.net; Joshua Robinson at jrobinson37@bloomberg.net Paul Gordon
Denmark Cuts Deposit Rate to -0.2% After SNB Shock
By Peter Levring - Jan 19, 2015 10:21am ET
Denmark cut its deposit rate to defend the nation’s currency peg after the Swiss National Bank unexpectedly abandoned the franc’s cap to the euro last week.
The central bank in Copenhagen lowered its deposit rate to minus 0.2 percent from minus 0.05 percent, according to a statement today. The lending rate was cut to 0.05 percent from 0.2 percent.
The move comes amid speculation that Denmark could be forced to follow Switzerland, which had spent the last three years struggling to buy enough euros to support its exchange-rate regime. Denmark has maintained its currency peg for three decades. Its foreign reserves rose to 446.8 billion kroner ($69.9 billion) last month, compared with a high of 514.4 billion kroner in 2012.
The krone was little changed at 7.4345 per euro as of 4:19 p.m. in Copenhagen.
Governor Lars Rohde said late last year that Danish rates were under pressure as the European Central Bank prepares to start its program of quantitative easing. His job is to target 7.46038 kroner per euro. While the bank’s official tolerance band is 2.25 percent, in practice it has stayed within about 1 percent of the target.
The Swiss franc surged last week while Denmark’s krone rose to its strongest since July 2012. Besides abandoning the euro peg, the SNB also cut its main rate to minus 0.75 percent from minus 0.25 percent.
The Swiss central bank’s decision came as ECB policy makers will this week meet to discuss the purchase of government bonds. The Danish bank doesn’t hold scheduled rate setting meetings and only adjusts borrowing costs to defend its peg. The cut means depositors will have to pay more to park their cash at the central bank. AAA-rated Denmark first tested negative rates in July 2012 to fight back a capital influx during Europe’s debt crisis.
To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net
To contact the editors responsible for this story: Jonas Bergman at jbergman@bloomberg.net; Tasneem Hanfi Brogger at tbrogger@bloomberg.net Tasneem Hanfi Brogger
Half global wealth held by the 1%
Oxfam warns of widening inequality gap, days ahead of Davos economic summit in Switzerland
Larry Elliott, economics editor, and Ed Pilkington
Sunday 18 January 2015 19.01 EST
Billionaires and politicians gathering in Switzerland this week will come under pressure to tackle rising inequality after a study found that – on current trends – by next year, 1% of the world’s population will own more wealth than the other 99%.
Ahead of this week’s annual meeting of the World Economic Forum in the ski resort of Davos, the anti-poverty charity Oxfam said it would use its high-profile role at the gathering to demand urgent action to narrow the gap between rich and poor.
The charity’s research, published today, shows that the share of the world’s wealth owned by the best-off 1% has increased from 44% in 2009 to 48% in 2014, while the least well-off 80% currently own just 5.5%.
Oxfam added that on current trends the richest 1% would own more than 50% of the world’s wealth by 2016.
Winnie Byanyima, executive director of Oxfam International and one of the six co-chairs at this year’s WEF, said the increased concentration of wealth seen since the deep recession of 2008-09 was dangerous and needed to be reversed.
In an interview with the Guardian, Byanyima said: “We want to bring a message from the people in the poorest countries in the world to the forum of the most powerful business and political leaders.
“The message is that rising inequality is dangerous. It’s bad for growth and it’s bad for governance. We see a concentration of wealth capturing power and leaving ordinary people voiceless and their interests uncared for.”
Oxfam made headlines at Davos last year with a study showing that the 85 richest people on the planet have the same wealth as the poorest 50% (3.5 billion people). The charity said this year that the comparison was now even more stark, with just 80 people owning the same amount of wealth as more than 3.5 billion people, down from 388 in 2010.
Byanyima said: “Do we really want to live in a world where the 1% own more than the rest of us combined? The scale of global inequality is quite simply staggering and despite the issues shooting up the global agenda, the gap between the richest and the rest is widening fast.”
Separate research by the Equality Trust, which campaigns to reduce inequality in the UK, found that the richest 100 families in Britain in 2008 had seen their combined wealth increase by at least £15bn, a period during which average income increased by £1,233. Britain’s current richest 100 had the same wealth as 30% of UK households, it added.
Inequality has moved up the political agenda over the past half-decade amid concerns that the economic recovery since the global downturn of 2008-09 has been accompanied by a squeeze on living standards and an increase in the value of assets owned by the rich, such as property and shares.
Pope Francis and the IMF managing director Christine Lagarde have been among those warning that rising inequality will damage the world economy if left unchecked, while the theme of Thomas Piketty’s best-selling book Capital was the drift back towards late 19th century levels of wealth concentration.
Barack Obama’s penultimate State of the Union address on Tuesday is also expected to be dominated by the issue of income inequality.
He will propose a redistributive tax plan to extract more than $300bn (£200bn) in extra taxes from the 1% of rich earners in order to fund benefits specifically targeted at working families.
However, the odds of the White House having any success persuading Congress to adopt the plan, given the Republicans’ new grip on both chambers, are extremely long. But Obama’s embrace of what he calls “middle-class economics” – as opposed to the trickle-down economics of the Republicans – is likely to ensure that inequality remains a pivotal theme of the 2016 presidential campaign.
Oxfam said the wealth of the richest 80 doubled in cash terms between 2009 and 2014, and that there was an increasing tendency for wealth to be inherited and to be used as a lobbying tool by the rich to further their own interests. It noted that more than a third of the 1,645 billionaires listed by Forbes inherited some or all of their riches, while 20% have interests in the financial and insurance sectors, a group which saw their cash wealth increase by 11% in the 12 months to March 2014.
These sectors spent $550m lobbying policymakers in Washington and Brussels during 2013. During the 2012 US election cycle alone, the financial sector provided $571m in campaign contributions.
Byanyima said: “I was surprised to be invited to be a co-chair at Davos because we are a critical voice. We go there to challenge these powerful elites. It is an act of courage to invite me.”
Oxfam said it was calling on governments to adopt a seven point plan:
• Clamp down on tax dodging by corporations and rich individuals.
• Invest in universal, free public services such as health and education.
• Share the tax burden fairly, shifting taxation from labour and consumption towards capital and wealth.
• Introduce minimum wages and move towards a living wage for all workers.
• Introduce equal pay legislation and promote economic policies to give women a fair deal.
• Ensure adequate safety-nets for the poorest, including a minimum-income guarantee.
• Agree a global goal to tackle inequality.
Speaking to the Guardian, Byanyima added: “Extreme inequality is not just an accident or a natural rule of economics. It is the result of policies and with different policies it can be reduced. I am optimistic that there will be change.
“A few years ago the idea that extreme poverty was harmful was on the fringes of the economic and political debate. But having made the case we are now seeing an emerging consensus among business leaders, economic leaders, political leaders and even faith leaders.”
China Shanghai hurting, bit more
China Stocks Plunge on Margin Accounts Halt; BHP Gains
By Nick Gentle and Adam Haigh - Jan 18, 2015 8:44 pm ET
Mainland Chinese shares plunged after three of the nation’s biggest brokerages were stopped from adding margin-trading accounts. Australian mining shares rose after U.S. oil capped its first weekly advance since November and copper climbed in London.
The Shanghai Composite Index tumbled 4.9 percent by 10:34 a.m. in Tokyo, as brokerages plummeted. BHP Billiton Ltd., the world’s biggest mining company, was the biggest support to the MSCI Asia Pacific Index. Futures on the Standard & Poor’s 500 Index (SPX) were 0.2 percent higher in holiday trade. West Texas Intermediate oil slipped 0.8 percent and copper in London rose after its biggest two-day gain since September 2013. The Swiss franc slipped 0.4 percent against the dollar.
Chinese regulators are tightening control of margin investing amid concern that a six-month, 63 percent stock surge may lead to instability. Stocks in the U.S., where markets are closed for Martin Luther King Day, jumped Jan. 16 as a rebound in oil tempered fallout from the Swiss National Bank abandoning a cap on the franc and lower earnings at Goldman Sachs (GS) Group Inc. The European Central Bank and the Bank of Japan meet on policy this week while Greece holds an election Jan. 25 that may see an anti-austerity party take power.
The MSCI Asia Pacific Index, which rose 0.7 percent today, traded at 13.4 times estimated earnings on Jan. 16, compared with a five-year average of 13.5. The Stoxx Europe 600 Index trades at 14.5 time projected earnings while the Standard & Poor’s 500 Index fetches 16.6.
China Plunge
Hong Kong’s Hang Seng Index fell 0.8 percent and a gauge of Chinese firms listed in the city dropped 2.5 percent, the most since Dec. 9. Shanghai’s benchmark gauge advanced 2.8 percent last week, a 10th week of gains that’s the longest winning streak since May 2007, after credit growth expanded and speculation grew the central bank will cut reserve-requirement ratios.
Haitong Securities Co. (6837) tumbled 13 percent in Hong Kong after it was suspended from adding margin-finance and securities lending accounts along with Citic Securities Co. and Guotai Junan Securities Co. The firms let customers delay repaying financing for longer than they were supposed to, the China Securities Regulatory Commission said on its microblog Friday.
Australia’s S&P/ASX 200 Index advanced 1 percent, paring its retreat this year to 0.9 percent. Materials and energy companies led the move. OZ Minerals Ltd., which gets 75 percent of revenue from copper, jumped 7.4 percent and Sandfire Resources NL, also a copper miner, rose 8.1 percent. Copper added 0.1 percent in London after the industrial metal capped its first back-to-back gains since Dec. 12.
Slide Arrested
West Texas Intermediate crude for February delivery was little changed after surging 5.3 percent to $48.69 a barrel in New York on Jan. 16. The rally gave the U.S. benchmark crude grade its first weekly gain since November, after the price dropped to the lowest level since April 2009 on Jan. 13. The International Energy Agency lowered forecasts for supplies from outside OPEC and said prices could recover.
The S&P 500 rose to 2,019.42 on Jan. 16, climbing above its average price for the past 100 days. Eight of the 10 best performers in the S&P 500 were energy companies, as the group rebounded with oil. The Dow Jones Industrial Average added 190.86 points, or 1.1 percent, to 17,511.57. The Russell 2000 Index of smaller companies gained 1.9 percent, the most in a month.
The University of Michigan preliminary consumer sentiment index rose to 98.2, the highest since January 2004, from a final reading of 93.6 in December.
Clothing, Travel
At the same time in the U.S., the biggest drop clothing costs since 1998 combined with falling air fares and cheaper new and used cars signal the deceleration in inflation is spreading beyond energy as Japan and Europe are in or near a recession and some emerging markets cool.
Goldman Sachs fell 0.7 percent in New York, capping a six-day retreat, after reporting a 7.1 percent drop in profit as revenue from fixed-income trading declined for the fifth time in six quarters.
The Swiss National Bank decided to drop its currency cap, set in September 2011 to shield the economy from the euro area’s debt crisis, because it was no longer “sustainable,” central bank President Thomas Jordan said.
Everest Capital is closing its largest hedge fund after losing virtually all its money after the SNB move, according to a person familiar with the firm. FXCM Inc., the largest U.S. retail foreign-exchange broker, arranged a $300 million cash infusion from Leucadia National Corp. after client losses threatened FXCM’s compliance with capital rules.
Swiss Franc Trade Is Said to Wipe Out Everest’s Main Fund
(And now the proposed tax hike on 1%. What are the rich to do.)
http://www.bloomberg.com/news/2015-01-17/swiss-franc-trade-is-said-to-wipe-out-everest-s-main-fund.html
By Katherine Burton Jan 17, 2015 9:39 AM ET
FX Brokers Suffer Large Losses From Swiss Shock
BY TABOOLA Bloomberg.com
Marko Dimitrijevic, the hedge fund manager who survived at least five emerging market debt crises, is closing his largest hedge fund after losing virtually all its money this week when the Swiss National Bank unexpectedly let the franc trade freely against the euro, according to a person familiar with the firm.
Everest Capital’s Global Fund had about $830 million in assets as of the end of December, according to a client report. The Miami-based firm, which specializes in emerging markets, still manages seven funds with about $2.2 billion in assets. The global fund, the firm’s oldest, was betting the Swiss franc would decline, said the person, who asked not to be named because the information is private.
Armel Leslie, a spokesman for Everest Capital with Peppercomm, declined to comment on the losses. Calls to Dimitrijevic weren’t returned.
The SNB’s decision to end its three-year policy of capping the franc at 1.20 a euro triggered losses at Citigroup Inc., Deutsche Bank AG and Barclays Plc as well as hedge funds and mutual funds. The franc surged as much as 41 percent versus the euro on Jan. 15, the biggest gain on record, and climbed more than 15 percent against all of the more than 150 currencies tracked by Bloomberg.
Dimitrijevic grew up in Switzerland and comes from what he terms a Yugoslavian family, according to “Inside the House of Money” by Steven Drobny (Wiley, 2006). He started the firm in 1990 with $8 million and has seen assets rise and fall as investors rushed in and out of emerging markets.
Navigating Crises
Everest grew to $2.7 billion by the start of 1998 after navigating crises in Mexico and Southeast Asia. Russia’s default and currency devaluation proved trickier and assets fell by half amid losses. He revived the firm and a decade later Everest managed $3 billion. Then the global financial crisis hit, and assets shrunk by $1 billion.
Last year, the main fund rose 14.1 percent, driven by Chinese equities and bets against currencies, including a wager that the Swiss franc would fall after citizens rejected a referendum that would require the central bank to hold at least 20 percent of its assets in gold, the investor report said.
Venz Moody's cuts it & BDI +5.4%
Moody's downgrades Venezuela to Caa3 from Caa1; outlook to stable from negative
Baltic Dry rises 5.4% to 762 points yes short
BRAZIL'S REAL +1% AGAINST USD IN SPOT-MARKET TRADING.
China tidbits tonight
ANALYSTS: CHINA'S ANNUAL CONSUMER INFLATION SIGNALS PERSISTENT WEAKNESS IN THE ECONOMY GIVING POLICYMAKERS MORE ROOM TO EASE POLICY TO SUPPORT GROWTH
CHINESE MINISTRY OF COMMERCE: WE THINK NEGATIVE FACTORS CRIMPING TRADE PERFORMANCE IN 2014 WILL BE SUSTAINED FOR A PERIOD OF TIME
TRADERS: CHINA S TRADE SURPLUS MIGHT PROVIDE SOME SUPPORT FOR THE YUAN
ANZ: IT IS NOT IN PBOC'S INTEREST TO SEE YUAN WEAKEN SIGNIFICANTLY AS IT COULD TRIGGER LARGE CAPITAL OUTFLOWS
ANZ: POSSIBILITY OF A SHARP DEPRECIATION IN RENMINBI IN 2015 IS A LESS LIKELY POLICY EVENT
some ah movers posted 23:00et
bebe stores Inc. (NASDAQ: BEBE) +18% - Announced comparable store sales for Q2, EPS outlook.
Hexcel Corporation (NYSE: HXL) +4% - Offered improved EPS outlook.
Alcoa Inc (NYSE: AA) +1.5% - Announced Q4 results.
ChannelAdvisor Corp (NYSE: ECOM) -29% - Offered negative revenue outlook.
Big 5 Sporting Goods Corporation (NASDAQ: BGFV) -8.2% - Announced Q4 revenue below estimates; offered weak EPS guidance.
Wolverine World Wide (NYSE: WWW) -6.75% - Announced preliminary Q4 results.
StemCells Inc (NASDAQ: STEM) -5% - Shares may be lower as a result of Sabby Management changing its stake in the company.
Big 5 Sporting Goods Misses Q4 Expectations, Falls 8%
WWW lower too, shoes. Retail hmmm.
Today 5:17 PM ET (Benzinga)Print
Big 5 Sporting Goods Corporation (NASDAQ: BGFV) reported sales results Monday for the fiscal 2014 fourth quarter and full year ended December 28, 2014.
Net sales came in at $250.3 million, below estimates of $258.02 million and above the net sales of $248.0 million reported for the fourth quarter of fiscal 2013.
Same store sales decreased 0.5 percent for the fourth quarter of fiscal 2014. 

The company's merchandise margins decreased approximately 10 basis points in the fiscal 2014 fourth quarter from the fourth quarter of fiscal 2013.
For the fiscal 2014 fourth quarter, the company now expects to realize earnings per diluted share in the range of $0.14 to $0.16, analysts had expected Q4 EPS of $0.21.
The EPS range includes $0.01 per diluted share of anticipated non-cash impairment charges, $0.01 per diluted share of expenses associated with the development of the Company's e-commerce platform and $0.01 per diluted share for a legal settlement charge.
For the fiscal 2014 full year, net sales decreased to $977.9 million from $993.3 million for the prior year. Same store sales decreased 2.9 percent for the fiscal 2014 full year.
"After producing same store sales in the positive low single-digit range for our October and November periods, our holiday period sales declined in the low single-digit range, which brought our fourth quarter sales below expectations," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer.
Big 5 Sporting Goods traded at $11.90 in the after-hours session, down 8.25 percent.
STTK agree w/ you. Current Pink
Usually a 'crooked' unlimited is done by some nameless grey stock or one with skull & crossbones that is likely to flood shares before being halted/canceled.
So STTK still being current Pink it's highly likely a legit proxy.
Nasdaq looks to operate dark pools for banks
Today 8:32 PM ET (MarketWatch)
By Bradley Hope
After years of fighting for more trading to come back onto stock exchanges, Nasdaq OMX Group Inc. (NDAQ) is considering joining the dark side.
The exchange operator has approached several of the biggest banks with a proposal to take over the operation of their "dark pools," and is planning to ask the Securities and Exchange Commission for permission to do so, according to Nasdaq Chief Executive Robert Greifeld.
Dark pools, lightly regulated private trading venues mostly operated by large banks, have come under scrutiny over the past year as regulators seek more details about whether they adequately police trades and disclose enough information to clients.
The company's new business venture would mark a change of tune of sorts for Nasdaq. Mr. Greifeld--along with the New York Stock Exchange -- traditionally has been a critic of the amount of trading on dark pools, arguing that such trading hurts the ability of markets to operate efficiently and facilitate accurate pricing for stocks.
Mr. Greifeld has repeatedly pushed for the SEC to consider implementing a so-called trade-at rule, which would force more trading off of dark pools and onto exchanges. He wrote in an editorial in The Wall Street Journal in July 2014 that "no one can argue against the healing power of transparency in the price-discovery process."
(An expanded version of this report appears on WSJ:com http://www.wsj.com/articles/nasdaq-looks-to-operate-dark-pools-for-banks-1421023264?mod=mktw.).
-Bradley Hope; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 11, 2015 20:32 ET (01:32 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Nasdaq looks to operate dark pools for banks
Today 8:32 PM ET (MarketWatch)
By Bradley Hope
After years of fighting for more trading to come back onto stock exchanges, Nasdaq OMX Group Inc. (NDAQ) is considering joining the dark side.
The exchange operator has approached several of the biggest banks with a proposal to take over the operation of their "dark pools," and is planning to ask the Securities and Exchange Commission for permission to do so, according to Nasdaq Chief Executive Robert Greifeld.
Dark pools, lightly regulated private trading venues mostly operated by large banks, have come under scrutiny over the past year as regulators seek more details about whether they adequately police trades and disclose enough information to clients.
The company's new business venture would mark a change of tune of sorts for Nasdaq. Mr. Greifeld--along with the New York Stock Exchange -- traditionally has been a critic of the amount of trading on dark pools, arguing that such trading hurts the ability of markets to operate efficiently and facilitate accurate pricing for stocks.
Mr. Greifeld has repeatedly pushed for the SEC to consider implementing a so-called trade-at rule, which would force more trading off of dark pools and onto exchanges. He wrote in an editorial in The Wall Street Journal in July 2014 that "no one can argue against the healing power of transparency in the price-discovery process."
(An expanded version of this report appears on WSJ:com http://www.wsj.com/articles/nasdaq-looks-to-operate-dark-pools-for-banks-1421023264?mod=mktw.).
-Bradley Hope; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 11, 2015 20:32 ET (01:32 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Kicking Dodd-Frank in the Teeth
JAN. 10, 2015
Fair Game
By GRETCHEN MORGENSON NYTimes
The 114th Congress has been at work for less than a week, but a goal for many of its members is already evident: a further rollback of regulations put in place to keep markets and Main Street safe from reckless Wall Street practices.
The attack began with a bill that narrowly failed in a fast-track vote on Wednesday in the House of Representatives. It is scheduled to come up again in the House this week.
The bill, introduced by Representative Michael Fitzpatrick, a Pennsylvania Republican who is a member of the House Financial Services Committee, has three troublesome elements. First, it would let large banks hold on to certain risky securities until 2019, two years longer than currently allowed. It would also prevent the Securities and Exchange Commission from regulating private equity firms that conduct some securities transactions. And, finally, the bill would make derivatives trading less transparent, allowing unseen risks to build up in the system.
Fair Game
A column from Gretchen Morgenson examining the world of finance and its impact on investors, workers and families.
Whole Foods’ High Hurdle for Investors JAN 3
Fresh Doubt Over the Bailout of A.I.G. DEC 20
At Big Banks, a Lesson Not Learned DEC 12
Hedge Fund Kept U.S. Inquiry Quiet DEC 6
Slamming the Window on Investors NOV 29
See More »
Of course, you wouldn’t know any of this from the name of the bill: the Promoting Job Creation and Reducing Small Business Burdens Act. Or from the mild claim that the bill was intended only “to make technical corrections” to the Dodd-Frank legislation of 2010.
Here’s the game plan for lawmakers eager to relax the nation’s already accommodating financial regulations: First, seize on complex and esoteric financial activities that few understand. Then, make supposedly minor tweaks to their governing regulations that actually wind up gutting them.
“We’re going to see repeated attempts to go in with seemingly technical changes that intimidate regulators and keep them from putting teeth in regulations,” predicted Marcus Stanley, policy director at Americans for Financial Reform, a nonpartisan, nonprofit coalition of more than 200 consumer and civic groups across the country. “If we return to the precrisis business as usual, where it’s routine for people to accommodate Wall Street on these technical changes, they’re just going to unravel the postcrisis regulation piece by piece. Then, we’ll be right back where we started.”
The bill was put forward on the second day of the new Congress, in an expedited process, which didn’t allow for debate among members. This process is supposed to be reserved for noncontroversial bills and requires support from a two-thirds majority to prevail. It fell just short of achieving that level, with a vote of 276 to 146, overwhelmingly backed by Republicans and opposed by most Democrats.
A central element of the bill chipped away at part of the Volcker Rule, the regulation intended to reduce speculative trading activities among federally insured banks. The bill would give the institutions holding collateralized loan obligations — bundles of debt — two additional years to sell those stakes.
The sales were required under the Volcker Rule, which bars banks from ownership in or relationships with hedge funds or private equity firms, many of which issue and oversee these instruments. Like the mortgage pools that wreaked such havoc with United States banks in the most recent crisis, C.L.O.s can pose high risks for banks.
The creation of such securities has been torrid recently; $124.1 billion was issued last year, compared with $82.61 billion in 2013, according to S&P Capital IQ. Among the banks with the largest C.L.O. exposures are JPMorgan Chase and Wells Fargo; according to SNL Financial, a research firm, JPMorgan Chase held $30 billion and Wells Fargo $22.5 billion in the third quarter of 2014, the most recent figures available. The next-largest stake — $4.7 billion — was held by the State Street Corporation.
Given the size of these positions, it’s not surprising the institutions want more time to jettison them. But the new legislation represents Wall Street’s second reprieve on these instruments. After banks objected to the sale of their holdings last spring, the Federal Reserve gave them two years beyond the initial 2015 deadline to get rid of them.
Now they want another two years.
Although the top three banks had unrealized gains in their C.L.O. holdings in the third quarter, SNL said some banks were facing losses. And that was before the collapse in the price of oil, which has undoubtedly pummeled some of these securities.
A second deregulatory aspect in the Fitzpatrick bill relates to the lucrative private equity industry, which remains loosely regulated. The bill would exempt some private equity firms from registering as brokerage firms with the S.E.C. Under securities law, such registration is required of firms that receive fees for investment banking activities, like providing merger advice or selling debt securities.
Private equity firms are typically registered only as investment advisers, so submitting to broker-dealer regulation would result in more frequent examinations and more rules.
These firms don’t like that. But their investors could benefit from closer regulatory scrutiny of costly conflicts of interest in these operations. For example, a private equity firm providing merger advice to a company its investors own in a fund portfolio — not an arm’s-length transaction — could easily charge more for those services than an unaffiliated firm would.
Finally, the bill’s changes in derivatives would reduce transparency and increase risks in this arena by allowing Wall Street firms with commercial businesses — like oil and gas or other commodities operations — to trade derivatives privately and not on clearinghouses.
Trading on clearinghouses generates accurate price data that help both banks and regulators value these instruments. Because these clearinghouses perform risk management, problematic positions are easier to spot.
If this change goes through, it will be the second recent victory on derivatives for big banks. Last month, Congress reversed a part of the Dodd-Frank law barring derivatives from being traded in federally insured units of banks. Taxpayers may be on the hook for bailouts, therefore, if losses occur in the banks’ derivatives books.
The Dodd-Frank law, as written back in 2010, was by no means a comprehensive fix for a risky banking system. And it is more vulnerable to attack, in part, because of its complexity and design. Dodd-Frank delegated so much rule-making to regulators that it essentially invited the institutions they oversee to fight them every inch of the way.
And when Congress backs the industry in these battles, it’s no contest.
Still, it is remarkable to watch the same financial institutions that almost wrecked our nation’s economy work to heighten risks in the system.
“The truth about Dodd-Frank is it’s pretty moderate and pretty compromised already,” Mr. Stanley of Americans for Financial Reform said. “Any further compromise and it tends to collapse into nothingness.”
Which is exactly what Wall Street seems to be hoping for.