Market Update: 110411 4:35 pm : Both the Nasdaq Composite and the S&P 500 fell to modest losses, but the Dow finished flat in another listless session of trade.
Stocks stayed near the neutral line during almost all of last week's trade. They were confined there by a lack of leadership. Such was the case again today.
Although the early tone of trade was mildly positive, the limited number of headlines failed to bolster buying interest ahead of the latest quarterly report from Dow component Alcoa (AA 17.77, -0.15). In turn, stocks were left to drift lower.
Uncertainty about what earnings season may have in store kept many traders on the sidelines. As a result, trading volume on the NYSE barely broke 800 million shares.
Those that did participate in today's trade failed to find inspiration from a few corporate deals, including the purchase of Global Crossing (GLBC 24.97, +10.17) by Level 3 (LVLT 1.70, +1.70) in a stock-for-stock transaction that values GLBC at $23.04 per share, which is a premium of more than 50% above its closing price from Friday. American Medical (AMMD 29.50, +7.17) will be acquired by Endo (ENDP 41.06, +0.21) for $30 per share, which is a premium of more than 30% over its closing price from last week.
NYSE Euronext (NYX 37.59, -1.11) issued a rejection of the takeover bid issued by Nadsaq (NDAQ 28.03, -0.42) and IntercontinentalExchange (ICE 120.55, +0.00) due to its commitment to combine with Deutsche Boerse.
A 2.5% drop in oil prices to $109.92 per barrel didn't do anything to spur buying interest in stocks either. Rather, energy stocks were sold off. The Energy Select SPDR (XLE 78.15, -1.57) shed 2%.
Frequent broad market leaders, financials fought off selling efforts to finish flat, as measured by the Financial Select SPDR (XLF 16.46, +0.00), while the Tech SPDR (XLK 25.89, -0.04) slipped only modestly. DJ30 +1.06 NASDAQ -8.91 SP500 -3.71 NASDAQ Adv/Vol/Dec 885/2.06 bln/1711 NYSE Adv/Vol/Dec 911/817 mln/2089
3:30 pm : Commodities finish mixed on the day. Industrials (+0.9%) were the largest advancing session, while energy (-1.2%) was the largest declining session.
May crude oil fell 2.5% to settle at $109.92 per barrel. Reports of a cease fire in Libya, coupled with reports of a large firm taking profits on a basket trade of commodities which included crude oil, weighed on prices today. It notched lows at $109.55 per barrel, but has extended its sell off in afterhours trade to notch fresh lows at $109.23. May natural gas finished higher by 1.8% to $4.11 per MMBtu. Today's gains came from a rebound following nat gas' recent six session sell off.
In overnight trade, May silver rallied to fresh ~31 yr highs at $41.97 per ounce, however by the close of pit trade today, it had given back all of those gains to finish near the flat line at $40.61 per ounce. Silver has extended its selloff in electronic trade, where it recently notched lows at $40.11 per ounce. It was an uneventful session for June gold, which finished lower by 0.5% to $1468.10 per ounce. DJ30 -12.15 NASDAQ -16.26 SP500 -5.82 NASDAQ Adv/Vol/Dec 883/1.6 bln/1708 NYSE Adv/Vol/Dec 867/528.1 mln/2118
3:00 pm : Stocks had been trying to make a move higher, but renewed selling pressure has sent the major equity averages another leg lower. In fact, the Dow is now at a fresh session low.
Even though selling pressure has picked up in recent trade, there hasn't been much share volume behind the move. Participation in the past few weeks has been anemic. Market watchers will be looking closely to see if trading volume increases with the arrival of earnings season in order to assess investor sentiment and willingness to put cash to work.
Volatility is actually down sharply today. In fact, the CBOE Volatility Index (VIX) is down more than 6%. DJ30 -5.67 NASDAQ -14.58 SP500 -5.06 NASDAQ Adv/Vol/Dec 950/1.51 bln/1634 NYSE Adv/Vol/Dec 947/480 mln/2028
2:30 pm : The S&P 500 and the Nasdaq Composite have slowly trimmed some of their losses, but both are still stuck in negative territory. Meanwhile, the Dow is trying to reclaim lost gains. Strength among blue chips remains modest, though.
Although the Dow's gain has been limited all day, it has steadily outperformed its counterparts. Most of its relative strength stems from buying interest in Travelers (TRV 60.52, +0.94) and Kraft (KFT 32.04, +0.37), both of which are up more than 1%. DJ30 +20.66 NASDAQ -8.23 SP500 -1.63 NASDAQ Adv/Vol/Dec 964/1.38 bln/1598 NYSE Adv/Vol/Dec 1036/439 mln/1917
2:00 pm : Bank stocks continue fighting to hold on to their gains. In turn, the KBW Bank Indes is clinging to a factional gain after it had been up solidly in the early going. The rest of the financial sector is also trying to fend of broader market selling pressure as it hovers near the neutral line, as displayed by the Financial Select SPDR ETF (XLF 16.47, +0.01).DJ30 +15.37 NASDAQ -9.37 SP500 -1.70 NASDAQ Adv/Vol/Dec 933/1.29 bln/1632 NYSE Adv/Vol/Dec 987/400 mln/1946
1:30 pm : Crude oil prices recently descended to a fresh session low of $109.55 per barrel. Continuous contract futures now price the energy component at $109.95 per barrel, which makes for a 2.5% loss.
The drop in oil prices has helped prop up airline stocks, such that the Amex Airline Index is up 0.5%. The Dow Jones Transportation Index is still down 0.2%, though. DJ30 +10.06 NASDAQ -9.15 SP500 -1.95 NASDAQ Adv/Vol/Dec 925/1.19 bln/1624 NYSE Adv/Vol/Dec 1013/370 mln/1905
1:05 pm : Listless trade has left stocks to drift lower ahead of the latest quarterly report from Dow component Alcoa this evening. That has made for mixed action among the major equity averages.
Stocks got a modest bid this morning, despite general weakness among many overseas markets and an absence of economic items or other meaningful market drivers. Support was partly attributed to anticipation for the latest earnings results from Alcoa (AA 17.70, -0.22), which unofficially kicks off earnings season tonight. Wall Street is calling for earnings of $0.27 per share, but the company has actually exceeded the consensus earnings forecast in each of the past three quarters.
The mildly positive tone that surrounded stocks in the early going has waned, however. That has left shares of AA to hand back opening gains. Other materials plays have also been pressured, leaving the sector with a 0.5% loss, but Monsanto (MON 67.20, +0.98) and BHP Billiton (BHP 103.04, +1.88) have managed to hold on to heady gains with help from a couple of analyst upgrades.
Utilities stocks, which are often regarded as defensive-oriented plays, have been hit the hardest. That sector is down 1.3%. Energy stocks aren't too far behind as they contend with a 0.9% loss as oil prices drop 1.7% to $110.90 per barrel.
Still, it is large-cap tech issues like Apple (AAPL 330.39, -4.67) and Cisco (CSCO 17.48, -0.17) that are having the most adverse affect on the Nasdaq, given their market weight and the steepness of their losses.
Generally, this session's listless drift is consistent with the lackluster action that left stocks to hug the neutral line during all of last week. DJ30 +5.26 NASDAQ -11.89 SP500 -2.53 NASDAQ Adv/Vol/Dec 922/1.11 bln/1601 NYSE Adv/Vol/Dec 1039/345 mln/1861
12:30 pm : Increased selling pressure recently took the broad market to a fresh session low, which actually came with a slight loss. It has since worked its way back above the flat line.
Materials stocks are falling more sharply out of favor. The sector was already one of the worst performers this past Friday, but today the sector is down another 0.5%. The sector's weakness comes even though both Monsanto (MON 67.20, +0.98) and BHP Billiton (BHP 103.20, +1.88) are boasting impressive gains in response to a couple of analyst upgrades. DJ30 +35.54 NASDAQ -4.77 SP500 +0.66 NASDAQ Adv/Vol/Dec 1033/1.00 bln/1474 NYSE Adv/Vol/Dec 1129/305 mln/1726
12:00 pm : A recent flurry of selling pressure has caused stocks to slip a bit. The major averages aren't quite back to earlier session lows, though.
The Dollar Index is up only 0.1% at the moment. The greenback had been in much better shape earlier today, but a bounce by the euro has eroded the dollar's advance. The euro was last quoted with only a fractional loss at $1.445. DJ30 +37.96 NASDAQ -5.50 SP500 +1.09 NASDAQ Adv/Vol/Dec 1130/894 mln/1368 NYSE Adv/Vol/Dec 1336/274 mln/1511
11:30 am : Choppy trade continues to undermine the stock market's ability to set out on a clear direction. Part of the problem is a lack of leadership.
Leadership was also lacking last week. In turn, stocks spent those five sessions trading in a tight range near the neutral line. Some of the sideways drift is owed to cautioun ahead of the latest quarterly report from Dow component Alcoa (AA 18.05, +0.13), which will announce its results this evening in an unofficial start to earnings season. Alcoa has exceeded the consensus earnings estimate in each of the past three quarters. DJ30 +49.12 NASDAQ -1.72 SP500 +229 NASDAQ Adv/Vol/Dec 1243/790 mln/1212 NYSE Adv/Vol/Dec 1478/238 mln/1333
11:00 am : Recent selling pressure knocked the Nasdaq into the red, but it has successfully recovered so that it is back in positive territory. It remains well below its opening level, though. As for the Dow and S&P 500, both were pressured, but neither suffered any kind of an actual loss. Their gains remain modest.
Consumer staples stocks and health care stocks are this session's top performers. Both sectors are up 0.6%. Despite the strength of those two sectors, each of which is considered to be defensive oriented, the utilities sector continues to underperform. Specifically, utilities stocks are down 0.6% at a new session low. Electric utilities like Dominion (D 44.13, -0.69) have been a heavy drag. DJ30 +48.82 NASDAQ +1.85 SP500 +3.26 NASDAQ Adv/Vol/Dec 1106/630 mln/1312 NYSE Adv/Vol/Dec 1352/195 mln/1443
10:35 am : The dollar index has pulled back from session highs of 75.092, which provided some strength to select commodities. However, the dollar index remains in positive territory.
After rising to a 30-month high last week, May crude oil has been in the red all morning. It put in today's lows of $111.53/barrel earlier this morning and after testing that low, crude remains slightly above that level at $111.80/barrel, down 0.9%.
May natural gas was in negative territory overnight and this morning before gaining steam at the open and rallying into positive territory as it quickly gained ~3.4%. It ultimately hit new session highs of $4.14/MMBtu and is currently trading 2.3% higher at $4.14/MMBtu.
Precious metals are mixed this morning with gold modestly lower and silver higher. Overnight, gold futures (continuous contract) rose to another new all-time high, this time hitting $1476.00/oz. In current activity, the June contract is 0.4% lower at $1468.60/oz. May silver almost broke through the $42 level overnight, but hit $41.975 as the current session high. It's pulled back in recent trade and is now up 1.3% at $41.15/oz.DJ30 +38.00 NASDAQ -4.21 SP500 +1.60 NASDAQ Adv/Vol/Dec 1058/477.1 mln/1325 NYSE Adv/Vol/Dec 1284/151.6 mln/1432
10:00 am : The Nasdaq has eased off of its opening gain, but the broader market has built on its opening bounce. Large-cap components like Apple (AAPL 333.41, -1.65) and Google (GOOG 573.97, -4.19) have hampered the Nasdaq Composite, but financial issues (+0.6%) have helped give a lift to the S&P 500.
Investment banks like Goldman Sachs (GS 162.48, +1.52) and diversified financial services plays like JPMorgan Chase (JPM 47.23, +0.39) are providing leadership to the financial sector. British banks are especially strong this morning, though. Specifically, Barclays (BCS 20.26, +0.84) is up more than 4%. DJ30 +53.28 NASDAQ +5.31 SP500 +4.76 NASDAQ Adv/Vol/Dec 1142/230 mln/1115 NYSE Adv/Vol/Dec 1356/80 mln/1240
09:45 am : Stocks have started the session with modest gains, although underlying strength is relatively broad. Still, utilities stocks are under early pressure as they slide to a 0.4% loss. DJ30 +33.66 NASDAQ +4.74 SP500 +3.22 NASDAQ Adv/Vol/Dec 1143/156 mln/1113 NYSE Adv/Vol/Dec 1301/55 mln/1278
09:15 am : S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +6.60. A slightly higher start to the week appears to be in the works, at least that's what stock futures suggest. The moderately positive tone has evolved in the face of lackluster action abroad, but precedes the latest quarterly report from Dow component Alcoa (AA), which will unofficially mark the start of earnings season. There haven't been any major headlines this morning, aside from a couple of corporate deals. Among those news stories is word that NYSE Euronext (NYX) has refused an offer from Nasdaq OMX (NDAQ) and IntercontinentalExchange (ICE) that was meant to rival that of Deutsche Boerse. Meanwhile, the dollar has gained ground against the euro this morning. Despite that, silver prices have attracted renewed buying interest, although gold prices have come down. Oil prices are also down this morning.
09:05 am : S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +6.60. Stock futures continue to point to a positive start for trade. Commodities are more mixed. As such, oil prices are now down about 0.8% in the first few minutes of pit trade; they were recently quoted at $111.90 per barrel. As for gold, it is down 0.4% to $1469 per ounce. Silver is sporting a 1.5% gain at $41.21 per ounce, though.
08:35 am : S&P futures vs fair value: +1.20. Nasdaq futures vs fair value: +5.30. Varied degrees of selling pressure have left Europe's major bourses to trade in the red. Germany's DX is currently down 0.2%. Meanwhile, France's CAC has fallen to a 0.7% loss. Schneider Electric and BNP Paribas represent a pair of particularly weak performers there. Britain's FTSE is off only fractionally. Economic news out of the country features an Industrial Production report from France that showed a 0.4% increase in activity. Industrial production in January had increased by a downwardly revised 0.7%.
In Asia, China reported that its trade balance for March turned positive after a precipitous drop in the prior month. Exports for the country were up almost 36% in March. Imports spiked 27% for the month. Shanghai's Composite closed with a 0.2% loss. Hong Kong's Hang Seng shed 0.4%. Japan's Nikkei fell 0.5% as automakers came under pressure amid a downgrade of the space by analysts at Citigroup. TDK Corp and Pioneer stood out as two of the worst performers, however. Tokyo Electric Power staged another surge by closing with a gain of about 20%. Japan reported that machine orders for February fell 2.3% after they had increased by 4.2% in January.
08:05 am : S&P futures vs fair value: +0.40. Nasdaq futures vs fair value: +3.10. Coming off of a flat week of trade, stock futures have benefited from some modest buying interest. The action precedes the latest quarterly report from Dow component Alcoa (AA), which will unofficially start earnings season tonight. In other corporate events, NYSE Euronext (NYX) rejected a takeover bid from Nadsaq (NDAQ) and IntercontinentalExchange (ICE) in a move that reflects its commitment to combine with Deutsche Boerse. In other merger and acquisition activity, Global Crossing (GLBC) will be taken over by Level 3 (LVLT) in a stock-for-stock transaction that values GLBC at $23.04 per share, which is a premium of more than 50% above its closing price from Friday. Meanwhile, American Medical (AMMD) will be acquired by Endo (ENDP) for $30 per share, which is a premium of more than 30% over its closing price from last week. Global markets haven't done much to support this morning's bid. Rather, most of the major markets abroad are in the red or have already suffered losses. Outside of stocks, oil prices have pulled back by about 1% to $111.65 per barrel. Gold is down 0.5% to $1466 per ounce after it set a record high late last week. Silver prices are up more than 1% to trade comfortable above $41 per ounce. There are no economic items of consequence
06:51 am : [BRIEFING.COM] S&P futures vs fair value: +1.70. Nasdaq futures vs fair value: +4.10.
06:51 am : Nikkei...9719.70...-48.40...-0.50%. Hang Seng...24303.07...-93.00...-0.40%.
06:51 am : FTSE...6062.88...+7.10...+0.10%. DAX...7180.10...-36.90...-0.50%.
6:33PM Teva Pharma reports oral laquinimod for multiple sclerosis treatment significantly reduced disease activity and disability progression while providing good safety and tolerability (TEVA) 48.98 -1.48 : Teva Pharmaceutical Industries Ltd. (TEVA) and Active Biotech (ACTI) announced results from the two-year Phase III ALLEGRO study of laquinimod, an oral, once-daily, investigational immunomodulator for the treatment of relapsing forms of multiple sclerosis (MS). These data will be presented as late-breaking research at the Annual Meeting of the American Academy of Neurology (AAN). In the ALLEGRO study, laquinimod showed a statistically significant 23 percent reduction in annualized relapse rate (p=0.0024), the primary endpoint, along with a significant 36 percent reduction in the risk of confirmed disability progression, as measured by Expanded Disability Status Scale (EDSS) (p=0.0122). Treatment with laquinimod was also associated with a significant reduction in brain tissue loss, as measured by a 33 percent reduction in progression of brain atrophy (p<0.0001).
5:30PM Old National Bancorp to acquire Integra Wealth Management & Trust Division (IBNK) (ONB) 10.73 -0.02 : announced the execution of a definitive agreement to acquire Integra Wealth Management and Trust, a division of Integra Bank, National Association. As a result of a Servicing Agreement between the two companies, Old National Wealth Management advisors will immediately begin servicing Integra Wealth Management and Trust clients. The clients will have full access to Old National's investment and trust experts. This acquisition - subject to regulatory approval and satisfaction of closing conditions - brings the total assets under management by Old National's Wealth Management division to $4.4 billion. The transaction is anticipated to close by June 30, 2011.
5:22PM Epicor Software reported that funds advised by Apax Partners commence $12.50 net per share cash tender offer for all outstanding shares EPIC (EPIC) 12.62 +0.09 : In connection with the previously announced agreement to acquire Epicor Software (EPIC), Element Merger Sub, Inc. ("Element"), Eagle Parent, Inc. ("Eagle") and Epicor today announced that Element and Eagle have commenced a cash tender offer to acquire all of the outstanding shares of Epicor's common stock. Upon the successful closing of the tender offer, shareholders of Epicor who tendered their shares in the offer will receive $12.50 net per share in cash, without interest and less any applicable withholding taxes. Element and Eagle are newly formed corporations and are wholly owned by funds advised by Apax Partners, one of the world's leading private equity firms with a strong heritage of technology investment.
5:21PM International Tower Hill Mines upgrades 7.4 mln ounces of gold to the measured category at the Livengood Project, Alaska (THM) 9.86 +0.34 : International Tower Hill Mines (THM) announces an updated global mineral resource estimate for the Money Knob deposit at its 100% controlled Livengood Gold Project near Fairbanks, Alaska. The independently prepared estimate has upgraded over 50% of the gold resource from the Company's previously reported June 2010 resource model into the Measured category in all three principal gold cut-off grade categories (0.3 g/t, 0.5 g/t and 0.7 g/t), significantly improving the confidence level of the overall deposit.
5:01PM Veeco Instruments: U.S. Department of Energy awards funding to CNSE CIGS Solar Project (VECO) 48.64 -0.59 : Co reports that, last week, the U.S. Department of Energy (DOE) announced a $57 million award to The College of Nanoscale Science and Engineering (CNSE) at the State University of New York at Albany as part of its SunShot Advanced PV Manufacturing Partnerships Program. Veeco Instruments (VECO), a provider of equipment for the solar industry, announced that it is a key partner for CNSE on this project as part of the U.S. Photovoltaic Consortium
5:01PM Merck reported that FDA approves Merck's SYLATRON (peginterferon alfa-2b) for injection (MRK) 33.59 -0.08 : Merck (MRK) (known as MSD outside the United States and Canada) announced that the U.S. Food and Drug Administration has approved SYLATRON (peginterferon alfa-2b) for injection, for subcutaneous use. SYLATRON is indicated for the adjuvant treatment of melanoma with microscopic or gross nodal involvement within 84 days of definitive surgical resection including complete lymphadenectomy. SYLATRON is contraindicated in patients with a history of anaphylaxis to peginterferon alfa-2b or interferon alfa-2b, in patients with autoimmune hepatitis, and in patients with hepatic decompensation (Child-Pugh score >6 [class B and C]).
5:01PM Chevron issues interim update for Q1; upstream results are projected to improve between sequential quarters, Downstream earnings in Q1 are expected to be slightly lower (CVX) 107.78 -1.88 : CVX reported in its interim update that earnings for the first quarter 2011 are expected to be higher than in the fourth quarter 2010. Upstream results are projected to improve between sequential quarters, benefiting from higher crude oil prices, offset in part by lower liftings. Downstream earnings in the first quarter are expected to be slightly lower, reflecting reduced asset sales gains, largely offset by higher U.S. margins.
4:49PM Amer States Water reports that its subsidiary Golden State Water Co announces sale of $62 mln of notes (AWR) 35.25 -0.06 : Golden State Water Co ("GSWC"), a subsidiary of American States Water Co (AWR), announced that it sold $62 mln in aggregate principal amount of its 6% Notes due 2041. The Notes will mature on April 15, 2041. Interest on the Notes will accrue and be payable semi-annually in arrears on April 15 and October 15, at the rate of 6% per annum. The Notes will be unsecured and unsubordinated and will rank equally with all of GSWC's unsecured and unsubordinated debt. The offering is expected to close on April 14, 2011. GSWC plans to use a portion of the net proceeds of the offering to redeem $22 mln in aggregate principal amount of its 7.65% Medium-Term Notes, Series B. The remainder of the net proceeds will be used to pay down short-term borrowings and to fund capital expenditures. Wells Fargo Securities, LLC is acting as sole book-runner for the offering. SL Hare Capital, Inc. is acting as co-manager of the offering.
4:49PM Invesco Ltd. reported preliminary month-end assets under management of $641.9 bln, an increase of 0.1% month over month (IVZ) 25.47 -0.46 : The month over month increase in AUM was driven by positive net long-term flows and market returns offset by foreign exchange which reduced AUM by $0.9 billion during the month. Total average assets for the quarter through March 31 were $630.2 billion and average assets excluding ETF, UIT and Passive for the quarter through March 31 were $543.0 bln.
4:47PM Platinum Underwriters Holdings, Ltd. provides preliminary loss estimate for the Mar 11, 2011 Tohoku Earthquake at $87 mln (PTP) 37.19 -0.14 : Co announced that it expects the Tohoku earthquake and related tsunami that struck the northeastern coast of Japan on Mar 11, 2011 will have a net negative impact of ~$87 million on the Co's Q1 2011 results. The net negative impact of this event includes an estimate of losses and loss adjustment expenses, net of retrocessional coverage, reinstatement premiums, taxes and the expected impact of foreign exchange rates. The Co's preliminary estimate is based on the Co's portfolio modeling, currently available industry loss estimates, market share analysis and a review of the Co's in-force contracts, as well as initial discussions with brokers and clients.
4:44PM AllianceBernstein announced that preliminary assets under management decreased to $477 bln from $487 bln during Mar 2011. The 2% decrease was due to net outflows, primarily in the Institutions channel, and modest market depreciation (AB) 21.93 -0.53 :
4:44PM KIT digital Acquires ioko for ~$91.4 mln (stock is halted) (KITD) 11.53 +0.02 : Co has signed a definitive agreement to acquire 100% of the capital stock of San Diego, California and London, U.K.-based ioko365 Ltd ("ioko") for total prospective net consideration of ~$79.4 mln, including future performance-based incentive payments. (All currency figures are in U.S. dollars.) ioko currently generates ~$54 mln in annualized revenues related to IP video asset management, through a combination of recurring managed service fees, software licenses, maintenance fees and professional services. Based on the closing price of KIT digital common stock of $11.51 on April 8, 2011, the total gross consideration KIT digital will pay upfront for ioko is ~$91.4 mln, comprised of $74 mln in cash and 1,509,805 restricted shares of KIT common stock. After adjusting for ~$19 mln of cash and ~$9 mln of additional positive net working capital expected on ioko's balance sheet at the time of closing, the net upfront consideration to be paid for ioko is expected to be ~$63.4 mln on a debt-free and cash-free basis. The net upfront consideration of $63.4 mln is exclusive of performance-based earn-outs, incentive and personnel retention payments, which are estimated not to exceed $16 mln over a period of two and a half years after closing, payable in KIT digital restricted stock. Therefore, over time, prospective net consideration over time is expected not to exceed $79.4 mln in total. KIT digital anticipates assuming a relatively small amount of short-term debt at closing, in order to finance ioko's accounts receivables, which the company expects to pay down quickly. (stock is halted)
4:42PM SM Energy announces new gas services agreement in Eagle Ford Shale (SM) 71.79 -3.07 : Energy Company (SM) announces that the Co has entered into new long-term service agreements with ETC Texas Pipeline, LTD. ("ETC"), a wholly owned subsidiary of Energy Transfer Partners, L.P. ( ETP), whereby ETC will gather, transport, and process production from the rich gas portion of the Co's Eagle Ford shale assets in South Texas. Under the terms of the arrangement, ETC will construct a gathering and transportation pipeline and related facilities, as well as a new processing plant, to serve SM Energy's Eagle Ford assets in South Texas. ETC has committed to provide up to a maximum level of 240,000 MMBtu per day, or ~190 MMcf per day in firm commitment transportation over a ten-year term beginning in 2013. The gas will be transported through the ETC pipeline and processed at the new plant. The agreement is fee based and will not require the Company to invest any upfront capital. SM Energy will be obligated to ship specified minimum amounts of gas or make periodic deficiency payments.
4:42PM KIT digital halted, news pending (KITD) 11.53 +0.02 :
4:37PM Heartland Payment Systems announces Maria Rueda joins Heartland as CFO and Heidi Goff as CMO (HPY) 17.10 +0.10 : Robert H.B. Baldwin, Jr., previously President and Chief Financial Officer, will take on broader responsibilities for strategy and operations as President of the Company and work closely with Robert O. Carr, Chairman and Chief Executive Officer, in order to improve the execution of Heartland's strategic and operational priorities.
4:32PM Franklin Resources announces March-end assets under management of $703.5 bln, up from $693.7 bln in February (BEN) 124.00 -0.60 :
4:31PM Procter & Gamble declares 9% quarterly dividend increase from $0.4818 to $0.525 per share (PG) 62.19 +0.29 :
4:31PM Isle of Capri announces Virginia McDowell will become CEO of the co effective April 25, 2011 (ISLE) 9.23 -0.06 : Co announces that Virginia McDowell will become CEO of the co effective April 25, 2011. James Perry, the Company's current chairman and chief executive officer, will remain as executive chairman, in which capacity he will continue to provide strategic direction to the Company. The Company originally announced the executive transition plan for 2011, including the retirement of Mr. Perry and promotion of Ms. McDowell, on January 18, 2011.
4:30PM Allied World Assurance expects ~$75 mln in losses and loss expenses from the March 11, 2011 Tohoku earthquake and tsunami in Japan (AWH) 64.76 +0.52 : Co announced that it expects ~$75 mln in losses and loss expenses from the March 11, 2011 Tohoku earthquake and tsunami in Japan. This amount is pre-tax and net of reinsurance recoverables.
4:29PM Titan Machinery reports Mark Kalvoda, who had been serving as the Company's Chief Accounting Officer, has been promoted to CFO, effective immediately (TITN) 26.63 +0.41 : Peter Christianson will continue in his role as President/COO and Director.
4:29PM Aviva announces intention to sell part of its shareholding in Delta Lloyd (AV) 14.92 +0.05 : Co announces that it intends to sell part of its shareholding in Delta Lloyd. The partial disposal of these shares will be through a private placement to qualified institutional investors. The Offering is expected to comprise ~25 mln Delta Lloyd ordinary shares, subject to investor demand, equivalent to 15.1% of Delta Lloyd's issued ordinary share capital (excluding treasury shares) and 14.0% of Delta Lloyd's voting rights. The offer price will be determined after an accelerated book-building process which starts today. Financial Impact of the Offering on Aviva: The sale of all the Delta Lloyd ordinary shares available in the Offering is expected to result in Aviva's shareholding in Delta Lloyd's issued ordinary share capital (excluding treasury shares) reducing from 58.2% to ~43.1%. Since the Offering is expected to result in Aviva holding less than 50% of the voting rights in Delta Lloyd, Aviva would no longer consolidate the results of the Delta Lloyd group.
4:25PM PAB Bankshares announces receipt of NASDAQ notice of non-compliance (PABK) 0.27 -0.04 : The notification has no immediate effect on the listing or trading of the Company's common stock. Co has until June 6, 2011 to submit a plan to regain compliance. If such a plan is timely submitted by the Company, the NASDAQ staff can grant the company up to 180 calendar days from the due date of the Form 10-K (or until September 27, 2011) to regain compliance.
4:21PM Clean Diesel Technologies entered into a binding agreement with an existing investor to issue to the Investor $3 mln principal amount of its 8.0% subordinated convertible notes (CDTI) 6.12 +0.29 : The Notes, which will be issued at 100% of face amount, will be convertible at the option of the Investor into shares of the Company's common stock at a fixed conversion price of $7.044 per share. Net proceeds from the sale of the Notes will be used for general working capital purposes.
4:19PM Pro-Dex announces settlement with Orange County Water District (PDEX) 2.28 -0.07 : Co entered into a settlement agreement with the Orange County Water District ending the litigation between the two entities and removing Pro-Dex as a defendant in the lawsuit Orange County Water District v. Sabic Innovative Plastics US, LLC, et al.
4:19PM Gildan Activewear announces agreement to acquire Gold Toe Moretz for ~$350 mln (GIL) 32.02 -0.35 : Co signed a definitive agreement to acquire 100% of the common shares of Gold Toe Moretz Holdings for a total purchase price of approximately $350 mln. Co will not assume any of Gold Toe Moretz's currently outstanding indebtedness. Co will update its financial outlook for fiscal 2011, including the impact of the acquisition of Gold Toe Moretz, when it reports its results for its second fiscal quarter on May 11, 2011.
4:19PM Interactive Intelligence seeks to create holding company structure (ININ) 38.90 +1.14 : Co will ask shareholders to vote on a proposal to reorganize the company as a holding company incorporated in Indiana.Upon completion of the reorganization, ININ Group would replace Interactive Intelligence as the publicly held corporation. The reorganization would generally be tax-free for Interactive Intelligence shareholders. The reorganization is more fully described in the proxy statement/prospectus relating to the annual meeting of shareholders.
4:19PM ECA Marcellus Trust intends to offer 2.525 mln common units representing beneficial interests in ECT currently held by ECA in an underwritten public offering (ECT) 30.81 +0.40 : Co announced that it intends to offer, subject to market and other conditions, 2,525,000 common units representing beneficial interests in ECT currently held by Energy Corporation of America in an underwritten public offering. Citi is acting as sole book-running manager for the offering.
4:16PM Durect announces ELADUR Phase II study results in chronic low back pain; primary endpoint not met (DRRX) 3.50 : Co announced top-line results from a Phase II clinical trial in chronic low back pain for ELADUR, DURECT's proprietary investigational transdermal bupivacaine pain patch. This study was conducted by DURECT's collaborator, King Pharmaceuticals, which is now owned by Pfizer (PFE). In this study of 263 patients suffering from chronic low back pain, the primary efficacy endpoint of demonstrating a positive treatment difference for the mean change in pain intensity scores from baseline to the mean of weeks 11 and 12 between ELADUR as compared to placebo was not met. Complete data analysis is on-going.
4:15PM Bunge creates joint venture to build river grain terminal in Illinois (BG) 72.62 +0.64 : Bunge North America, the North American operating arm of Bunge Limited (BG), announced that it has created a joint venture with SCF Marine Inc., a subsidiary of SEACOR Holdings (CKH), to build a river grain terminal in Fairmont City located in St. Clair County, Illinois. The joint venture, Bunge-SCF Grain, LLC, will build a state-of-the-art facility on the Mississippi River capable of receiving grains, soybeans, their byproducts and other bulk commodities and efficiently shipping them either domestically or to the export market.
4:14PM WMS Industries falls 10.5% to $32.40 after lowering Q3 revs guidance; guiding Q3 EPS below consensus and guiding FY12 revs well below consensus (see 16:12 comment) (WMS) 36.22 -0.09 :
4:12PM WMS Industries lowers Q3 revs guidance; guides Q4 revs below consensus, guides FY12 revs well below consensus (WMS) 36.22 -0.09 : Co lowers Q3 revs to $191-193 mln vs $212.2 mln consensus, from $209-205; sees Q3 EPS of $0.40-0.42 vs. $0.51 consensus. Co sees Q4 revs of $210-220 mln vs. $234.1 mln consensus; sees FY12 revs well below consensus; co see FY12 revs at $810-850 mln vs. $933.9.9 mln consensus. "Our Q3 results are clearly a disappointment and reflect several factors including lower-than-anticipated new unit demand in the March 2011 quarter, WMS' execution challenges that resulted in ~$8 mln in product sales revenue from customers' orders that shipped in April instead of the March 2011 quarter, and continued challenges in commercializing new products, including a slower rate of initial regulatory process approvals arising from the increased complexity of our newest gaming features and networked-technology enablers... However, based on recent customer capital budgets and unit demand trends, we don't expect meaningful improvements in the industry environment over the remainder of calendar 2011 or, at this point, for calendar 2012 and today we issued revenue guidance accordingly. Until we begin to see consistent economic recovery, growth in consumer spending and improvements in industry replacement and new unit demand, we believe WMS' annual revenue will continue to grow at a mid-to-high single-digit percentage rate consistent with the growth achieved in fiscal 2009 and fiscal 2010, and now in fiscal 2011."
4:11PM Safe Bulkers announces a 5 mln share common stock offering (SB) 9.25 -0.16 : Company plans to use the net proceeds of the Public Offering for vessel acquisitions, capital expenditures and for other general corporate purposes, including repayment of indebtedness. Morgan Stanley and BofA Merrill Lynch are acting as joint book-running managers.
4:09PM New York Mortgage Trust and RiverBanc enter multi-year Investment Management Agreement (NYMT) 6.81 -0.09 : Under the agreement RiverBanc will source, structure and manage investments secured by commercial real estate that will be funded by NYMT on a flow basis. As part of this transaction, NYMT will also receive a minority ownership stake in RiverBanc, alongside the company's management team and Harvest Capital Strategies LLC, a subsidiary of publicly traded JMP Group Inc.
4:08PM WMS Industries sees Q4 revs of $210-220 mln vs. $234.1 mln consensus; sees FY12 revs of $810-850 mln vs. $933.9.9 mln consensus (WMS) 36.22 -0.09 :
4:07PM Alcoa beats by $0.01, misses on revs (stock is halted); reaffirms FY11 global aluminum demand growth forecast of 12% (AA) 17.77 -0.15 : Reports Q1 (Mar) earnings of $0.28 per share, excluding $0.01 in non-recurring items, $0.01 better than the Thomson Reuters consensus of $0.27; revenues rose 21.9% year/year to $5.96 bln vs the $6.07 bln consensus. The improvement over fourth quarter 2010 results was driven by higher realized prices for alumina and aluminum and growing demand for aluminum products in major end markets, along with productivity improvements. These were offset somewhat by a weaker U.S. dollar, along with higher energy and materials costs. Alcoa reaffirmed the co's projection that global aluminum demand would grow 12% in 2011 on top of the 13 percent growth rate in 2010. "It was an excellent first quarter as we improved profitability across all business segments, set profit records in our midstream and downstream businesses and grew substantially." Stock is halted.
4:06PM WMS Industries lowers Q3 revs to $191-193 mln vs $212.2 mln consensus, from $209-215; sees Q3 EPS of $0.40-0.42 vs. $0.51 consensus (WMS) 36.22 -0.09 :
4:06PM Primo Water amends existing revolving credit facility; revises and updates certain terms and covenants, with the effect of increasing its borrowing capacity (PRMW) 16.01 -0.05 :
4:06PM BioSpecifics Tech reports launch of XIAPEX by Pfizer for treatment of Dupuytren's contracture in Europe; BSTC to receive $2.5 mln milestone payment (BSTC) 24.11 -0.35 : Co will receive a $2.5 mln milestone payment as a result of the European launch and first commercial sale of XIAPEX in the United Kingdom. Pfizer (PFE), the EU licensee received approval from the European Medicines Agency (EMA) to market XIAPEX in Europe for the treatment of Dupuytren's contracture, a debilitating disorder resulting from excessive collagen deposition that causes contractures of the fingers. BioSpecifics' strategic partner, Auxilium (AUXL), markets injectable collagenase for Dupuytren's contracture in the United States under the trade name XIAFLEX. Under the terms of the strategic alliance agreement between BioSpecifics and Auxilium, BioSpecifics will receive 8.5% of each additional $7.5 mln milestone payment ($30 mln in aggregate) made as a result of the first commercial sale in each additional major European market; France, Italy, Germany and Spain. In addition BioSpecifics will receive 8.5% of all additional sublicense income Auxilium receives from Pfizer.
4:05PM Jackson Hewitt announces that many offices and kiosks at Walmart (WMT) stores will offer extended hours prior to tax return deadline (JTX) 0.59 -0.03 :
4:04PM Tech Data announced it is first distributor in the Americas to offer Cisco's (CSCO) Digital Content Manager (TECD) 51.90 -0.39 :
4:03PM Joes Jeans reports EPS in-line, misses on revs (JOEZ) 1.14 +0.01 : Reports Q1 (Feb) net of breakeven, in-line with the Thomson Reuters consensus of ($0.00); revenues fell 8.6% year/year to $21.2 mln vs the $22.2 mln consensus. "Our first quarter of fiscal 2011 continued to have tough comparables against last year's successful Jean Legging... Due to our decline in women's wholesale sales, we made mid-stream changes to the Spring line and, as a result, our sell-throughs have improved substantially. Our men's business continues to increase as our denim and other product offerings resonate well with our customers."
4:03PM United Community Bancorp expects increased loss provision and recognition of net loss for Q3 (UCBA) 7.16 -0.05 : Co expects to record Q3 provision for loan losses of ~$3.9 mln. As a result, co anticipates Q3 net loss ranging from $1.7 mln to $2.0 mln. The expected increase in the loan loss provision is primarily the result of the anticipated charge-off of $4.4 mln in multi-family and non-residential real estate loans, of which $692,000 relates to the restructuring of seven loans during the quarter having an aggregate outstanding principal balance of ~$3.6 mln.
4:02PM Alcoa halted ahead of earnings (AA) 17.77 -0.15 :
4:02PM Trius Therapeutics announces patent term extension for Torezolid phosphate (TSRX) 5.44 +0.09 : Co announces it has received official notification from the U.S. Patent and Trademark Office that U.S. Patent No. 7,816,379 which covers the composition of matter of torezolid phosphate (TR-701), the co's lead investigational drug, has been extended by one thousand one hundred sixty-three (1,163) days. The patent term adjustment granted by the U.S. Patent and Trademark Office extends patent coverage in the United States on torezolid phosphate until February 23, 2028.
4:02PM Micrel lowers Q1 EPS, rev below consensus; sees Q2 rev up QoQ (MCRL) 14.40 -0.09 : lowers Q1 EPS to $0.13-0.14 from $0.17-0.19 vs $0.18 Thomson Reuters consensus; sees rev down 10-11% QoQ to ~$67.3-68.0 mln vs. $72.6 mln consensus, vs. -2 to -6% previously. The shortfall in rev is primarily a result of lower than expected sales to a device manufacturer in Korea that makes wireless handsets and other consumer electronic devices. This customer moderated product deliveries during the quarter to control inventory levels. In addition, Micrel also experienced a reduction in overall demand in March related to disruptions in the worldwide electronics supply chain due to the earthquake and tsunami in Japan. The co also had a further inventory reduction by its sell-in (POP) channel partners as a result of the inventory over-build that took place in the last half of 2010. Based upon current demand estimates, the co expects second quarter 2011 revs to grow sequentially over first quarter 2011 revenues (cons: $76.3 mln).
4:02PM NPS Pharm commences 9 mln share common stock offering pursuant to an effective shelf registration statement (NPSP) 9.51 +0.42 : Citigroup Global Markets and Leerink Swann are acting as joint book-running managers for the offering.
4:00PM Principal Fincl to acquire HSBC AFORE for ~US $198 million; transaction is expected to be immediately accretive to EPS and ROE (PFG) 31.90 +0.18 : Co announces that Principal Financial Group, S.A. de C.V., Grupo Financiero has agreed to acquire 100% of HSBC AFORE, S.A. de C.V. from Grupo Financiero HSBC, S.A. de C.V. for ~US $198 million based on current exchange rates (Mexican Pesos 2,360 million). In addition, The Principal and HSBC Bank have agreed to establish an exclusive distribution arrangement, subject to regulatory approval, for the distribution of Principal AFORE's products through HSBC's (HBC) extensive network of more than 1,100 branches. The AFORE transaction is expected to be immediately accretive to EPS and ROE.
3:45PM Vail Resorts priced its offering of $390 million in aggregate principal amount of 6 1/2% Senior Subordinated Notes due 2019 (MTN) 49.18 +0.30 :
3:03PM Health Management comments on Tenet Healthcare's (THC) complaint against Community Health Systems (CYH) (HMA) 9.96 -0.70 : Co announcesthat it has reviewed the complaint filed against Community Health Systems by Tenet Healthcare Corporation. "We believe Tenet's complaint involves Community's alleged use of internally developed admission criteria guidelines. Health Management is confirming that its hospitals have used and continue to use the InterQual Criteria from McKesson Corporation (MCK). McKesson's InterQual Criteria has been developed over the last 30 years and is currently in use by over 300 health plans, more than 3,700 hospitals, 30 Medicaid programs and The Centers for Medicare & Medicaid Services. InterQual Criteria are used to assess the appropriateness of care for individual patients and are supported by evidence-based clinical decision support developed and reviewed by a panel of more than 800 independent, licensed and board certified/credentialed physicians and healthcare professionals. Health Management enables America's best local health care by providing the people, processes, capital and expertise necessary for its hospital and physician partners to fulfill their local missions of delivering superior health care services. Health Management, through its subsidiaries, operates 59 hospitals, with approximately 8,800 licensed beds, in non-urban communities located throughout the United States."
3:00PM Major averages slide to new session lows in unison -- Dow -3, S&P -4.9, Nasdaq Comp -14 (SPY) :
2:49PM S&P -4.1 set a new session low, Dow +2.5 and Nasdaq Comp -11 slipping but have not yet confirmed (SPY) :
2:44PM Crude oil extending selloff in electronic trade; now lower by $3.37 to $109.42 (COMDX) :
2:44PM Airline sector Index -XAL- pushes to new session high after morning drop to new seven month low -- AMR, DAL, UAL, LCC, LUV, AAI, ALK (FAA) :
2:41PM Oil Service HOLDRS Trust continues to weaken notches new low of 159.63, its 50 sma is at 159.38 (OIH) 159.63 -2.61 : Its 50 ema does not comes into play until 157.36 -- BHI, CAM, DO, ESV, EXH, HAL, NBR, NE, NOV, RED, RIG, SLB, TDW, WFT.
2:37PM NYMEX Energy Closing prices (COMDX) : Crude oil settled lower by $2.87 to $109.92, natural gas gained 7 cents to close at $4.111, heating oil shed 6.5 cents to finish at $3.255, while RBOB gasoline ended lower by 5.62 cents to $3.2045 (all May contracts)
2:35PM Commodity/Energy come under pressure again in recent trade -- GDX, XLE, SLV, KOL, XLB, OIH, MOO, JJC, GLD (TECHX) :
2:30PM CBOT Agriculture and Ethanol and ICE Exchange Sugar Closing Prices; Corn Hits Another New All-Time High Overnight at $7.8375 (COMDX) : May corn futures rose 9.75 cents to $7.7775/bu, May wheat rose 0.5 cents to close at $7.98, May soybeans fell 24.25 cents to close at $13.68, May ethanol closed higher by 0.004 cents at $2.73, while May world sugar futures closed up 0.38 cents to 26.04 cents.
2:29PM JBT Corp awarded service contracts totaling nearly $7 million by the United States Air Force to support their fleet of Halvorsen 25K Loader (JBT) 19.08 -0.09 :
1:55PM SkyWest reported a 50.3% increase in RPMs for March, while ASMs increased 56.9% compared to March 2010 (SKYW) 15.90 +0.09 : Co reported a 52.8% increase in departures to 122,075 for March compared to 79,873 for the same period last year. Passenger boardings for March increased 44.8% to 4,767,814 compared to 3,292,598 for the same period last year. SkyWest also reported a 50.3% increase in revenue passenger miles (RPMs) for March, while available seat miles (ASMs) increased 56.9% compared to March 2010.
1:44PM Community Health confirms response to Tenet (THC) lawsuit; says 'Tenet's allegations are completely without merit' (CYH) 28.19 -12.24 : Co issued the following statement in response to the complaint filed by Tenet Healthcare Corporation "Tenet's allegations are completely without merit and we intend to vigorously defend ourselves against these unfounded and irresponsible claims. Providing high-quality patient care is co's most important priority. Co conducts its business with the utmost integrity and adheres to the highest business practice standards. The bottom line is that these self-serving allegations are an attempt by Tenet's management and board to continue their entrenchment strategy and to distract Tenet shareholders from its pending offer. Its actions today prove that Tenet has adopted a 'scorched earth' defense without regard for the best interests of shareholders. Co remains committed to its offer to acquire Tenet and both Credit Suisse and Goldman Sachs have reaffirmed their confidence in financing the transaction." Credit Suisse and Goldman Sachs acting as financial advisors, Kirkland & Ellis as legal counsel and D. F. King & Co. as proxy solicitor.
1:43PM Metalline Mining appoints Sean Fallis as CFO effective April 15, 2011 (MMG) 1.14 -0.08 : Fallis was hired in February 2011 as VP of Finance.
1:31PM COMEX Metals Closing Prices (COMDX) : June gold finished lower by $5.90 to $1468.20, May silver ended up 6.7 cents at $40.675, and May copper shed 3.5 cents to close at $4.4665.
1:23PM Crude oil notches fresh lows at $109.55; now down $2.85 to $109.94 (COMDX) :
1:05PM Fresh lows for crude oil at $110.38; now down $2.30 to $110.49 (COMDX) :
1:01PM Harris has combined its commercial and government full motion video initiatives into a single organization (HRS) 50.61 -0.19 : Co also made another significant announcement - the introduction of the Newsfish application for FAME which extends commercial capabilities to the military, DoD and public agencies by enabling Apple (AAPL) iPhone users to capture, annotate and distribute full motion video.
12:41PM Stock indices extend slide off morning highs, S&P -1.9 and Nasdaq Comp -10 set new session lows -- Dow +10 (SPY) : Relative sector weakness on this move (underperforming the S&P) has been noted in : Oil Service OIH, Energy XLE, Materials XLB, Silver SLV, Gold Miners GDX, Coal KOL, Commodity Index.
12:35PM Healthcare Provider -RXH- attempts to stabilize near its March low (TECHX) 666.39 -30.59 : This sector index has been under significant thus far today with it sliding under its 50 sma/ema. However, it has attempted to stabilize near its March low at 560 (session low 559). The worst performer is CYH (-32%) after THC (-14%) filed a lawsuit. Other stocks in the sector include: HMA -6.1%, AMSG -1.9%, KND -2.2%, LPNT -1.6%, SRZ -3.1%, UHS -3.4%, MDTH -1%.
12:04PM Currency Chart Watch: Euro / Yen Continues Futures stalls after testing target zone (TECHX) : (Click for daily chart).
12:01PM Stock indices slip in recent trade, still hovering slightly above morning pullback lows -- Dow +41, S&P +1.4, Nasdaq Comp +4.9 (SPY) :
12:01PM Tower Intl has acquired substantially all of the assets of W Industries; Terms of the transaction were not disclosed (TOWR) 14.24 -0.28 : W Industries had 2010 revenue of about $65 million and employs approximately 250 colleagues. Terms of the transaction were not disclosed.
11:51AM Apple extends break below morning range lows to 331.05 (AAPL) 331.27 -3.79 : The next short term area of interest is at 330 which marks its three month close low from March. The three month range lows from March and Mid/Jan are at 326.26/326.00.
11:29AM Crude oil drops to lows at $111.46; now down $1.25 to $111.54 (COMDX) :
11:28AM Puda Coal announced that its Board of Directors has unanimously ratified the decision to launch a full investigation into the allegations raised in a recent article (PUDA) 5.30 0.00 : Co announced that its Board of Directors has unanimously ratified the Audit Committee's decision to launch a full investigation into the allegations raised in a recent article alleging various unauthorized transactions in the shares of a subsidiary company, Shanxi Coal. The Audit Committee has retained professionals in the United States and China to assist it in its investigation. The full board, including Mr. Ming Zhao, the Chairman of Puda Coal, has agreed to cooperate in the investigation. "Although the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings. Mr. Zhao has agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation is complete." (stock halted)
11:24AM Stock indices edged off morning pullback lows but Finance XLF and Reg Bank KRE are not participating with both near session lows (XLF) :
11:21AM New session high Dow +62, S&P +4.1 and Nasdaq Comp +4.6 lagging but set new bounce highs (SPY) :
11:16AM Underperforming Nasdaq Comp +2.2 held near first level support, hovering near morning bounce high (TECHX) : The Nasdaq Comp has been a laggard this morning with Semi (SMH) weighing. However, the Nasdaq Comp held just above first level support noted in The Technical Take at 2770/2763 (session low 2773) while the SMH held near its second level support (34.44/34.39 -- session low 34.48) with both hovering at/near their morning bounce highs.
11:01AM Masimo reports new published study finds Masimo SET delivers more reliable measurements 'significantly faster' than other pulse oximetry technologies (MASI) 34.40 +0.13 : Co announced that a new study published in this month's issue of the European peer-reviewed journal Acta Paediatrica demonstrates that pulse oximetry makes a critical difference in neonatal resuscitation both in terms of reliability and speed of measurements. In comparing the measurement response times of three different pulse oximetry technologies, researchers found that the Masimo Radical-7 pulse oximeter with Masimo SET Measure-Through Motion and Low Perfusion technology displayed reliable oxygen saturation (SpO2) measurements three to four times faster than competing pulse oximeters.
10:34AM Advanced Battery Tech signs multiple sales contracts (ABAT) 2.26 -0.04 : Subsidiaries of ABAT, Harbin ZhongQiang Power-Tech Co and ShenZhen ZhongQiang New Energy and Technology Co signed sale contracts (power cells) with two Hong Kong companies and five customers separately, totaling ~$8.33 million. On April 8th, 2011, Harbin ZQPT signed a sales contract (power cells) with HK Jade world Co. Ltd, valued at $1.725 million; additionally, a sales contract (power cells) was signed with Weite communication Tech Co. Ltd, valued at $1.615 million. Shenzhen ZQ has signed power cell sales contracts with Shenzhen Chihang Tech Co., Ltd, Shenzhen Hurli Battery Co., Ltd and Shenzhen Kepudi tech. Co., Ltd, Shenzhen Haoneng Digital company and Shenzhen Shengda Ruike communication tech Co., Ltd, which totaled ~32.44 million RMB (~$4.99 million USD).
10:26AM Hill International selected as project mgr for Phase 1 of the Marsa Zayed Development in Jordan; four-year contract has estimated value of ~$3.2 mln (HIL) 5.54 -0.05 :
10:25AM Coca-Cola vacillating slightly under its previous 52-wk high from last week at 67.82 after minor penetration -- session high 67.84 (KO) 67.75 +0.48 :
10:21AM Pulse Electronics: Bel Fuse (BELFA) files a definitive proxy statement with the SEC and issued a letter to shareholders of PULS in connection with Pulse's 2011 annual meeting of shareholders scheduled for May 18, 201 (PULS) 5.85 +0.05 : "Bel Fuse Inc. is seeking your support for the election of our two highly-qualified, independent nominees to the Board of Directors of Pulse Electronics Corporation at Pulse's 2011 Annual Meeting of Shareholders scheduled to be held on May 18, 2011. We are not seeking control of the Pulse Board and these nominees have no agenda other than examining ALL options available to maximize value for Pulse shareholders. We are seeking representation on the Pulse Board because we believe that the current directors of Pulse have not acted in the best interests of shareholders..."
10:18AM Semiconductor Hldrs ETF lags this morning of 34.51, drops to new session low near its 20/50 ema at 34.51/34.40 (SMH) 34.52 -0.36 : NVLS -3.9%, ATML -3.8%, ADI -1.6%, ALTR -1.5%, AMAT -0.8%, AMKR -1.8%, BRCM -0.9%, KLAC -1.3%, LSI -1.4%, MU -1%, MXIM -1%, TER -1.2%, XLNX -1.1%.
10:11AM No confirmation on the new intraday Dow/S&P highs from Nasdaq Comp with Russell 2000 and S&P Mid-Cap slipping into the red (SPY) : Dow +41, S&P +2.4, Nasdaq Comp -2.6, Russell 2000 -1, S&P 400 -0.8.
10:07AM Prana Biotech confirms it has secured PBT2 Patent in Japan and Completes Core IP Suite (PRAN) 2.58 +0.18 : Co confirmed that it has secured a key PBT2 patent in Japan. The Japanese Patent Office has granted a composition of matter patent for Prana's lead clinical asset, PBT2 and other selected 8-Hydroxyquinoline compounds in Japan. The patent entitled '8-Hydroxyquinoline derivatives' also covers pharmaceutical compositions containing PBT2 and selected 8-hydroxyquinoline compounds and the use of the compounds for the treatment of Alzheimer's Disease. (see 9:42 comment)
10:01AM American Science & Engineering receives its first order for a Z Portal vehicle screening system from Brazil (ASEI) 91.13 -0.16 : Co announced that it has received its first Z Portal vehicle screening system order from Brazil. The state government of Rio de Janeiro will deploy the Z Portal system to safely and effectively screen cars and trucks to find contraband, including alcohol, tobacco, and other legal goods, that have been smuggled to evade duties.
9:55AM S&P +5 able to join Dow +52 at new session high, for second time Nasdaq Comp +7.8 has thus far not yet confirmed the new Dow high (SPY) : Relative sector strength in recent trade has been noted in Oil Service OIH (bounce off early low), REITs IYR, Housing XHB, Steel SLX. Semi SMH continues to be a drag on Nasdaq.
9:46AM Dow +33 sets minor new high, S&P +2.9 just below, Nasdaq Comp +5.8 lagging amid Semi/Disk Drive underperformance thus far (SPY) :
9:46AM Vail Resorts intends to offer ~$390 million in aggregate principal amount of senior subordinated notes due 2019 (MTN) 48.95 +0.08 : The net proceeds from the offering of the Notes are expected to be used to fund the previously announced cash tender offer by Vail for any and all of its outstanding 6 3/4% Senior Subordinated Notes due 2014 and to redeem any 2014 Notes not purchased in such tender offer.
Point Losers: ADES (-7.52), ALXN (-4.04), CYH (-3.66), SINA (-3.61), TDSC (-3.19), AAPL (-2.55), ENR (-2.14), AAP (-1.65), SOHU (-1.69), UCO (-1.19), AU (-1.00)
9:44AM Vail Resorts commenced cash tender offer for $390 mln outstanding aggregate principal amount of 6 3/4% Senior Subordinated Notes due 2014 (MTN) 48.92 +0.05 :
9:40AM American Express solid gains in early trade sets new seven week high of 46.66 (AXP) 46.65 +0.37 : Note that its Dec peak and 11 month close/intraday highs from Feb are between 46.78 and 46.93.
9:34AM iShares DJ Telecom gap higher start, breaks above Jan/Feb/early April highs at 23.98/24.02 to set new 52-wk high of 24.15 (IYZ) 24.11 +0.38 : VMED +1.2%, LUK +1.1%, PCS +0.8%, Q +1%, S +0.7%, NIHD +0.8%, VZ +0.3%, CCI +0.5%, AMT +0.3%, FTR +0.3%.
9:32AM Orthovita announces presentation of clinical results evaluating Vitagel surgical hemostat in reducing blood loss during primary unilateral total knee arthroplasty (VITA) 2.06 0.00 : Co announces that Michael Bloomfield, M.D., of Cleveland Clinic, presented results of a study entitled "Prospective Randomized Evaluation of a Collagen/Thrombin and Autologous Platelet Hemostatic Agent During Total Knee Arthroplasty" on Friday, April 8, at the 29th Annual Meeting of the Mid-America Orthopaedic Association in Tucson, Arizona. In this study, standard hemostasis with Vitagel was found to reduce blood transfusions following primary total knee arthroplasty as compared to standard hemostasis alone.
9:30AM Quantum Fuel secured a new purchase contract for 250 ultra-light weight compressed natural gas (CNG) tanks (QTWW) 3.45 +0.14 :
9:28AM Natural gas pushes to fresh highsa t $4.142; now up 8.9 cents to $4.13 (COMDX) :
9:26AM CytRx receives ~163K shares of common stock in ADVENTRX Pharmaceuticals (ANX) in exchange for its 19.1% ownership position in SynthRx, Inc., following the completion of ANX previously announced acquisition of SynthRx (CYTR) 0.84 :
9:16AM Plains All Amer increases quarterly distribution on limited partner units to $0.97, which represents an increase of ~3.7% over the quarterly distribution of $0.935 per unit paid in May 2010 (PAA) 63.47 :
9:16AM Grubb & Ellis REIT II Executive Officers Adopt Stock Purchase Plan; CEO to invest 100% of after-tax income in REIT, president to invest 50% (GBE) 0.73 :
9:14AM PositiveID announces positive results from its Easy Check Breath Glucose Detection Device in preliminary laboratory testing (PSID) 0.42 : Co announced that its Easy Check Breath Glucose Detection Device has delivered positive results in preliminary laboratory testing that are within acceptable industry standards as set by the National Committee of Clinical Laboratory and the International Organization for Standardization. Co has conducted initial side-by-side studies of its Easy Check device with the traditional strip and glucometer method, which requires a drop of blood, that have yielded consistent readings. The goal of the Company's Easy Check device is to eliminate a patient's need to prick his or her finger multiple times per day in order to get a blood sugar reading.
9:08AM On The Wires (WIRES) :
* The Babcock & Wilcox Company (BWC) announced that it has received a $5 million grant from the Virginia Tobacco Indemnification and Community Revitalization Commission for its Integrated System Test facility in Bedford County, Va. * Harris (HRS) has been awarded a $2 mln contract from the Canadian Government for shipboard satellite communications terminals. * Ogilvy & Mather, a WPP (WPPGY) co, announced the launch of an official China Practice in North America. * Saudi Organometallic Chemicals Company, a joint venture equally owned by SABIC affiliate, SPECIALTY CHEM (Saudi Specialty Chemical Company) and Albemarle (ALB) Netherlands B.V., announced that Samsung Engineering has been selected to provide engineering, procurement, and construction services for the SOCC Aluminum Alkyls manufacturing facility in Jubail, Saudi Arabia.
9:07AM Paramount Gold and Silver announces new resource estimation for new drilling at San Miguel Project; estimates represent a significant increase in both gold and silver resources for the project (PZG) 3.98 : Co announces new NI 43-101 compliant resource estimates for its 100% owned San Miguel project in Mexico. The new estimates, prepared by Mine Development Associates (MDA) of Reno, Nevada, cover the five areas where new drilling took place in 2010, including the two most recent discoveries of San Francisco and Don Ese. The MDA estimates represent a significant increase in both gold and silver resources for the project. The estimates also include a meaningful indicated resource for the first time. Updating geological models are also in progress for the remaining four areas at San Miguel, where additional metallurgical work and a small amount of additional drilling are needed to enable these resources to be stated to the same standard as the new estimates.
9:05AM InterActive extends its agreement with Google (GOOG) through 2016 (IACI) 30.97 : Co announces that it has amended its agreement with Google (GOO) and extended it through March 31, 2016. The agreement, through which GOOG provides co's search products and network partners with sponsored listings and other search-related services, had previously been scheduled to expire at the end of 2012.
9:02AM Alere: Chinmax Medical Systems issues update on lawsuit against Alere unit (ALR) 39.22 : Chinmax Medical Systems announced an update regarding the progress of its lawsuit against Inverness Medical Beijing (IMB), a subsidiary of Alere. According to the Complaint, Inverness Medical Beijing secretly imported massive quantities of Triage product and sold the same to Chinmax customers during the period when Chinmax retained the undisputed contractual rights as Alere's exclusive distributor of Triage product for the China market. Chinmax filed suit in Beijing Chaoyang District Court in March 2010, claiming tort damages for unfair competition against Inverness Medical Beijing. Chinmax applied to the court for investigation letters allowing the collection of evidence regarding IMB's sales invoices, importation documents, and SFDA submissions. In recent progress, the Beijing Chaoyang District Court approved Chinmax's application and has now sent investigation letters to China Customs, State Taxation Office, and the SFDA, seeking the relevant documentation. The court is currently in the process of collecting this evidence from the China authorities. Chinmax believes the evidence will support both the China litigation against IMB and the U.S. arbitration Chinmax has filed against Alere San Diego for fraud, breach of contract and unfair competition due to unfair and illegal conduct.
9:02AM US Geothermal receives key reservoir certificate for Neal Hot Springs Oregon project (HTM) 1.04 : Co announces the receipt of a key reservoir certificate by the U.S. Department of Energy's independent reservoir engineer. The certificate is a technical condition required under the DOE's $96.7 million loan guarantee to construct the planned net 23 megawatt power plant at Neal Hot Springs in Eastern Oregon.
9:01AM Mosaic announced that the United States Court of Appeals for the Eleventh Circuit has vacated a preliminary injunction previously granted by the U.S. District Court regarding Mosaic's South Fort Meade mine (MOS) 78.41 : Co announces that the United States Court of Appeals for the Eleventh Circuit has vacated a preliminary injunction previously granted by the United States District Court for the Middle District of Florida regarding Mosaic's South Fort Meade mine. The preliminary injunction had prevented reliance on a U.S. Army Corps of Engineers' permit for the mining of wetlands in an extension of Mosaic's South Fort Meade, Florida, phosphate rock mine in Hardee County. The Eleventh Circuit also set aside the District Court's remand of the permit to the Corps of Engineers.
9:00AM Impax Labs confirms patent challenge relating to OXYCONTIN (IPXL) 27.52 : Co confirmed that it has initiated a challenge of the patents listed by Purdue Pharma L.P. in connection with Oxycontin 10, 15, 20, 30, 40, 60, and 80 mg controlled-release tablets.
8:47AM On The Wires (WIRES) :
* OXiGENE (OXGN) announced that clinical investigators have enrolled the first patient in a randomized Phase 2 trial of ZYBRESTAT in combination with bevacizumab in patients with relapsed ovarian cancer. * Marriott International (MAR) announced plans to open the first Courtyard by Marriott hotel in Mexico City, located directly across from international terminal number one at Benito Juarez International Airport. It is expected to open in early 2012 * Wabtec's (WAB) MotivePower subsidiary has signed a contract to build 22 new locomotives for CBH Group. The locomotives are scheduled to be delivered in 2012. * Merck (MRK) and Sun Pharmaceutical announced the creation of a joint venture to develop, manufacture and commercialize new combinations and formulations of innovative, branded generics in the Emerging Markets. * The Dow Chemical Company (DOW) and OPX Biotechnologies announced that the two companies are collaborating to develop an industrial scale process for the production of bio-based acrylic acid from renewable feedstocks. * Rubicon Minerals (RBY) provided an update on its underground delineation drill program being carried out on part of the F2 Core Zone, at its 100%-owned Phoenix Gold Project located in the heart of the prolific Red Lake Gold District of Ontario. A total of 16,000 metres of the planned 27,000-metre delineation drill program has been completed. * Gladstone Investment (GAIN) announced that it invested $16.4 mln in Mitchell Rubber Products consisting of subordinated debt and equity. * Swisher Hygiene (SWSH) announced that it has acquired Q Linen Service, a South Florida-based linen services company. Total consideration paid by Swisher Hygiene in connection with the acquisition includes $150,000 in cash, the assumption of certain liabilities and the issuance of up to 37,479 shares of common stock of Swisher Hygiene, subject to certain restrictions and conditions, including acceptance by the Toronto Stock Exchange.
8:47AM Parkway Prop announces agreement to combine with Eola Capital and purchase 6 office properties; acquisition to be $0.16-0.22 FFO accretive based on a full-year run rate (PKY) 16.50 : Co announced that it has entered into definitive agreements with privately-owned Eola Capital and certain of its affiliates pursuant to which Eola will contribute its property management business to Parkway and Parkway will acquire six office properties currently owned and operated by Eola and its affiliates on behalf of Parkway Properties Office Fund II, two of which Fund II has already purchased. The combination is valued at ~$462 mln, including costs. The combination, on a stand-alone basis, is expected to be between $0.16 and $0.22 per share accretive to Parkway's FFO based on a full-year run rate, without taking into account any planned asset sales by Parkway or costs of the combination. Parkway will provide revisions to its 2011 earnings outlook as necessary once the combination, Fund II investments, and related capital activities are closed.
8:36AM Great Basin Gold updates exploration and drilling results for hollister project and Burnstone Mine; results lead to a number of new exploration follow-up targets (GBG) 2.72 : Co announces updates underground exploration and stope delineation drilling has continued during 1Q11. In total, two exploration holes at the Velvet target, fifteen Blanket exploration holes (totaling 15,487 feet) and twenty-four stope delineation holes (totaling 10,080 feet) were completed. A number of significant silver assays (5.5-7.4 opt Ag, 190-255 g/t Ag) with anomalous gold values were received in the 630-705-foot (210-240 meter) zones. The stope delineation drilling has continued evaluating the main Gwenivere (#8) and Clementine (#14-19) veins.
8:35AM Halliburton has been awarded a contract by ExxonMobil (XOM) Iraq Limited to provide drilling services for 15 wells in the West Qurna oil field located in Southern Iraq (HAL) 48.13 :
8:31AM Dynegy names Hunter Harrison interim President and CEO; Harrison replaces David W. Biegler, who has served as Dynegy's interim President and CEO; Biegler will continue to serve as an independent Dynegy director. (DYN) 5.73 :
8:31AM 99 Cents Only forms Special Committee of Board of Directors and announces retention of advisors; will consider 'going private' proposal, among other things (NDN) 19.80 : Co announced that its board of directors has formed a special committee of independent directors to, among other things, consider the proposal made on March 10, 2011 by members of the Schiffer/Gold family, together with Leonard Green & Partners to acquire the Company in a "going private" transaction for $19.09 per share in cash. The Special Committee is also authorized to consider other proposals and strategic alternatives which may be available to the Company. The Special Committee members are Lawrence Glascott, Marvin Holen and Peter Woo. The Schiffer/Gold family has assured the Company that they will support a full and open process and will consider other bidders arising from such process.
8:31AM Baxter presents phase III clinical study data assessing the use of ARTISS for facelift surgery; study suggests that ARTISS can reduce drainage volumes at 24 hours after rhytidectomy surgery (BAX) 53.73 : Co announced results of a phase III study evaluating the safety and efficacy of ARTISS in 75 patients. The study compared the total drainage volume for each side of the face at 24 hours post rhytidectomy, or face lift surgery. "Adjunctive ARTISS use reduced total drainage volumes at 24 hours immediately following rhytidectomy compared with standard of care without the use of pressure dressings, which were not permitted in the study."
8:19AM On The Wires (WIRES) :
* Science Applications International Corporation (SAI) announced it was awarded a prime contract by the U.S. Federal Aviation Administration, Enterprise Services Center to provide comprehensive information technology services to the FAA, Department of Transportation and other federal agencies. The indefinite-delivery/indefinite-quantity contract has a one year base period of performance, four one-year options, and a contract ceiling value of more than $156 million if all options are exercised. Work will be performed primarily in Oklahoma City, Okla. * Trillium Software, a business of Harte-Hanks (HHS), announced an alliance with Microsoft (MSFT) that will drive seamless integration between the Trillium Software Syste data quality solution and Microsoft Dynamics CRM 2011 customer relationship management software. As a result, Microsoft Dynamics CRM users who choose to leverage integrated Trillium Software data quality services can ensure that global customer data is accurate and fit-for purpose, whether using on-premises or cloud deployment models. * ValueClick Media, a division of ValueClick Inc. (VCLK), announced the launch of its goCart retail solution, a predictive and personalized shopper marketing solution designed to drive new customers and drive sales, increase average order value and decrease cart abandonment for ValueClick Media advertisers. * RADVISION (RVSN) announced SCOPIA Mobile V3, the first enterprise application for Apple (AAPL) iOS and Google (GOOG) Android devices that allows mobile users to connect with full video, audio and H.239 data collaboration to the nearly 2 million installed standards-based video conferencing and telepresence systems worldwide. * Cadence Design Systems (CDNS) announced a comprehensive DDR4 solution that will enable SoC designers to take immediate advantage of the performance gains afforded by the emerging DDR4 memory standard. * D. Medical Industries (DMED) announced that it has received the Patent Certificate from the Japanese Patent Office for Japanese patent entitled "Drug Delivery Device and Method". * Teva Pharmaceutical Industries (TEVA) announced that several new studies further support the efficacy and safety of the company's innovative central nervous system products. More than 30 posters, including a late-breaking presentation on data from the pivotal Phase III trial of oral laquinimod for the treatment of relapsing-remitting multiple sclerosis, will be unveiled at the 63rd American Academy of Neurology Annual Meeting in Honolulu, HI, April 9-16, 2011. * inno360 announced P&G (PG) has renewed a multi-year Co-Development partnership with inno360 as a supportive tool for Connect + Develop.
8:17AM Valeant Pharmaceuticals files presentation for Cephalon (CEPH) stockholders; VRX is concerned that CEPH's stockholders are not receiving a balanced message from the current CEPH Board (VRX) 54.05 : Co announces it filed a presentation with the SEC in connection with its written consent solicitation to stockholders of CEPH. Co is concerned that CEPH's stockholders are not receiving a balanced message from the current CEPH Board of Directors regarding the co's status or Valeant's offer. In summary, co states: "CEPH's pipeline is risky and represents uncertain value; Cephalon is not a high-growth biotechnology co; CEPH's share price performance prior to Valeant's offer reflected its declining fundamental value; and Valeant's offer represents a full and fair premium." Additionally, co adds, "We ask that stockholders vote for the new Board slate in the consent solicitation."
8:16AM Richmont Mines Inc. announces Monique work commitment completed; initial drill results confirm strong near surface gold mineralization (RIC) 7.49 : Highlights include: $400,000 work commitment completed: SOQUEM's 19% ownership transfer underway; 5,500 metre definition drilling program extended to 8,170 metres; Very favourable initial results obtained from the G Zone, including 6.76 g/t Au over 12.9 metres, 8.07 g/t Au over 10.0 metres, 4.25 g/t Au over 17.1 metres, and 6.20 g/t Au over 11.1 metres (true width); Geotechnical work and condemnation drilling are progressing well.
8:12AM Elec For Imaging (EFII), ANSW and YONG to resume trading at 8:30 (EFII) 14.99 :
8:08AM Shaw Group misses by $0.08, misses on revs; guides FY11 EPS above consensus, revs below consensus; announces slight restatement to FY09/10 results (SHAW) 35.45 : Reports Q2 (Feb) earnings of $0.40 per share, $0.08 worse than the Thomson Reuters consensus of $0.48; revenues fell 12.1% year/year to $1.43 bln vs the $1.54 bln consensus. Co issues mixed guidance for FY11, raises EPS to $1.86-1.91 from $1.70-1.80 vs. $1.79 Thomson Reuters consensus; lowers FY11 rev to ~$6.3 bln from $6.5 bln vs. $6.55 bln Thomson Reuters consensus. "Overall, our business segments performed at or better than plan this quarter with the exception of Energy & Chemicals, which was impacted by reduced earnings on a major petrochemical project. While the devastating events in Japan have drawn significant attention to the nuclear power industry, work on our nuclear power units currently under construction continues as planned. We believe the Westinghouse AP1000 technology with its passive safety features will remain a technology of choice for our clients. Additionally, Shaw's experience in performing construction services at nuclear power plants and emergency response services after natural disasters, positions us to assist with the recovery efforts in Japan and any future modification needs to existing power plants in the U.S. and internationally." FY09/10 restatement: In preparing the quarterly financial results, we identified an accounting error in our consolidated financial statements affecting fiscal years 2009 and 2010. The error relates to our calculation of revenue on a multi-currency contract in our Energy & Chemicals segment. The effect of this error in fiscal year 2009 was to overstate revenues by $3.4 mln and net income and retained earnings by $2.2 mln and in fiscal year 2010 to overstate revenues by $16.7 mln and net income and retained earnings by $10.7 mln. We believe the effects of the error were not material to any previously reported quarterly or annual period, but we are revising our financial reports for fiscal year 2010 herein and in our quarterly report.
8:05AM Marchex announced the acquisition of Jingle Networks (MCHX) 7.43 : Co will pay up to $62.5 million in cash and stock for Jingle Networks, which is one of the leading providers of mobile voice search performance advertising and technology solutions in North America. For the remainder of 2011, Marchex expects Jingle Networks to contribute: more than $16.2 million to its revenue, net of intercompany eliminations; more than $1.2 million in adjusted operating income before amortization; this implies more than $1.7 million in adjusted EBITDA based on estimated add-backs of ~$0.5 million in additional depreciation and amortization Marchex intends to update its 2011 business outlook upon the release of its first quarter earnings results in May 2011... With the addition of Jingle, Marchex believes call-driven revenues will represent more than 75% of revenues on an annualized basis by the end of 2011.
8:03AM AVI BioPharma receives approval of nonproprietary name Eteplirsen for duchenne muscular dystrophy therapeutic candidate, AVI-4658a (AVII) : Co announces that the United States Adopted Names Council has approved the nonproprietary name eteplirsen for AVI-4658, the Company's exon-skipping therapy for the treatment of Duchenne muscular dystrophy, a genetic muscle wasting disease caused by the absence of functional dystrophin. In addition, the World Health Organization has approved eteplirsen as the International Nonproprietary Name for AVI-4658. Co also announces plans to initiate a Phase 2 study of eteplirsen in June, and is currently conducting NDA-enabling activities to prepare for the initiation of a pivotal study in the second half of 2012.
8:03AM Yongye Intl. reports Q1 revs $50.2 mln vs $32.05 mln Thomson Reuters consensus, achieves 1Q 2011 positive cash flow from operations; issues upside FY11 guidance (YONG) 4.88 : Co reports Q1 revs $50.2 mln vs $32.05 mln Thomson Reuters consensus; achieves 1Q 2011 positive cash flow from operations. The significant increase in revenues was driven by higher demand for the co's products in its traditional markets, and growth in several new markets. Co sees FY11 revs $315-325 mln vs $296.20 mln Thomson Reuters consensus, and expects adjusted net income of between $80 million and $82 million (consensus $68.5 mln), representing an increase of between 47.9% and 51.6% over 2010 adjusted net income attributable to Yongye of $54.1 million. "Our management team and board of directors are committed to enhancing shareholder value and are confident in the long-term health and future financial performance of our business. Based on current market prices, we believe that our shares are presently undervalued in the marketplace. Our board of directors is contemplating various alternatives to address this issue and will make an announcement as soon as the board determines the appropriate course of action."
8:02AM Gammon Gold reports Q1 record operating cash flow and net free cash flow at Ocampo; provides 2011 guidance (GRS) 10.50 : Co has concluded Q1 on plan, with record underground production, record margins, record operating cashflow and record net free cash flow. The Company begins the second quarter with El Cubo mining and development commencing mid-April and the acquisition of Capital Gold complete. The Company now has three 100% owned operating mines and two advanced development projects in Mexico that will underpin our peer-leading growth targets in 2011 and beyond. Co reports Q1 operating cash flow of ~$50 mln at Ocampo, net free cash flow of ~$24 mln at Ocampo, cash position of $119 mln as of March 31, 2011, Gold equivalent production of 49,853 gold equivalent ounces at cash and costs of $383 per gold equivalent ounce, for a record margin of $1,002 (72%) at the gold equivalency ratio of 43:1 realized during the quarter.. In 2011, co expects to produce 117,000 to 134,000 ounces of gold and 4.84 to 5.56 mln ounces of silver, or 205,000 to 230,000 gold equivalent ounces from the Ocampo and El Cubo mines assuming a gold equivalency ratio of 55:1. Total cash costs for 2011 at the two mines are expected to be $455 to $485 per gold equivalent ounce assuming a gold equivalency ratio of 55:1.
8:02AM MYR Group receives contract with Cross Texas Transmission to construct ~235 miles of 345kV transmission line (MYRG) 23.33 : Co announces it has executed a contract with Cross Texas Transmission, an affiliate of LS Power, to construct approximately 235 miles of 345-kilovolt (kV) transmission line in the State of Texas. The contract is valued in excess of $160 mln.
8:00AM OSI Systems Spacelabs Healthcare, has received a $1.5 million order from a Missouri hospital (OSIS) 37.95 :
7:58AM Answers Board rejects 'speculative last-minute' acquisition proposal by Brad Greenspan (ANSW) 10.46 : Co announces that its Board of Directors, advised by its independent financial and legal advisors, has concluded that the proposed transaction with AFCV Holdings, remains in the best interests of Answers' stockholders and unanimously reaffirmed its recommendation that stockholders vote to adopt the merger agreement between Answers.com and AFCV Holdings. Answers.com also announced that it had received over the weekend an unsolicited letter from Brad Greenspan, purporting to represent Social Slingshot and eJuggernaut. The letter included a speculative proposal, subject to numerous contingencies and uncertainties, to acquire a controlling interest in Answers.com, which the Board rejected. The proposal purports to offer to acquire the Answers.com common stock outstanding for $13.50 per share in cash, plus A and B warrants to acquire common stock at exercise prices of $23.50 and $46.50, respectively. In making its determination to reject the offer, the Board concluded that the proposal was not credible. The Board also found that the proposal was not likely to result in a transaction that is superior to the definitive merger with AFCV, which would provide Answers.com stockholders with the opportunity to receive $10.50 in cash upon consummation of the merger. (Stock is halted)
7:51AM Seadrill Ltd orders new ultra-deepwater drillship for delivery in 2013; total project price is estimated at $600 mln (SDRL) 36.25 : Co has exercised an option to build a new ultra-deepwater dual derrick drillship at the Samsung yard in South Korea. Total project price is estimated at $600 mln. The delivery is scheduled for the third quarter 2013. "The decision to add another ultra-deepwater newbuild to our modern fleet is based on the recent improvement in market outlook for ultra-deepwater units, with significantly more tender activities."
7:47AM Medivation to resume trading at 8:00 after announcing Phase 3 Horizon Trial of Dimebon in Huntington Disease did not achieve statistical significance; co and PFE will discontinue development (MDVN) 20.11 :
7:45AM Tasty Baking to resume trading at 8:00; co is being acquired by FLO in all cash deal at $4.00 (~148% premium) (TSTY) 1.61 : See 7:33 comment for additional details.
7:43AM Global Crossing, LVLT to resume trading at 8:00 ET following M&A deal (GLBC) 14.80 : See 7:31 comment for details of LVLT's purchase of GLBC.
7:42AM On The Wires (WIRES) :
* Level 3 Communications (LVLT) announced that it has adopted a Stockholder Rights Plan. The Rights Plan is designed to protect the company's federal Net Operating Losses from the effect of Internal Revenue Code Section 382, which can restrict the use of NOLs. * RC2 Corporation (RCRC) announced the expiration at 5:00 p.m., New York City time, on April 9, 2011, of the "go-shop" period during which RC2 was permitted to solicit acquisition proposals from alternative purchasers. * Vanda Pharmaceuticals (VNDA) announced that Novartis Pharmaceuticals Corporation (NVS), an affiliate of Vanda's sublicensor Novartis Pharma AG, has initiated a clinical study to evaluate the long-acting injectable (or depot) formulation of Fanapt? (iloperidone). This is a Phase I study that will evaluate the safety and pharmacokinetic profiles of two different long-acting formulations * Acorda Therapeutics (ACOR) announced data analyses showing that people with multiple sclerosis who responded to AMPYRA Extended Release Tablets, 10 mg had comparable improvements in their walking regardless of baseline walking speed or overall level of MS-related disability1. * TradeStation Group (TRAD) announced the launch, through its new subsidiary, TradeStation Forex, a brand-new, state-of-the-art retail forex offering. TradeStation Forex will own and operate the co's forex business for all existing and new customer accounts.
7:33AM PROLOR Biotech reports positive interim results from Phase II Trial of its long-acting human growth hormone; Phase II Trial expected to be completed as planned by mid-year (PBTH) 5.98 : Co announces positive interim efficacy results from a Phase II clinical trial of its long-acting CTP-modified version of human growth hormone in growth hormone deficient adults. The interim efficacy data show that a single weekly injection of hGH-CTP, even when administered at relatively low doses, has the potential to replace seven consecutive daily injections of currently marketed human growth hormone. "We expect to complete this Phase II trial around mid-year. Based on these promising interim data, we are increasingly confident that the Phase II trial will provide sufficient information to enable our researchers to establish the most suitable doses of hGH-CTP for our planned Phase III registration trial in adults with growth hormone deficiency."
7:33AM Chesapeake Midstream Partners announces $350 mln private placement of senior notes due 2021 (CHKM) 28.01 : Co announced that it has commenced an offering, through a private placement, of $350 mln of senior notes due 2021. The Partnership intends to use the net proceeds of the proposed offering to repay borrowings currently outstanding under its revolving credit facility and for general Partnership purposes.
7:33AM Tasty Baking to merge with Flowers Foods (FLO) in $165 mln deal, TSTY to receive $4.00 per share is cash (~148% premium); FLO sees deal neutral to slightly accretive in FY11, $0.06-0.09 accretive to FY12 (TSTY) 1.61 : FLO will commence a tender offer to acquire all of the outstanding shares of TSTY common stock for $4.00 per share in cash, for a price of ~$165 mln, including TSTY debt. The transaction is expected to close during the second quarter of 2011 The agreement has been unanimously approved by the Boards of Directors of both cos. Flowers intends to fund the transaction through cash-on-hand and credit facilities. There is no financing condition to the offer. FLO sees an anticipated sales contribution from the transaction of $115-125 million for 2011, contributing ~$10-12 mln to EBITDA with the effect on 2011 earnings per share expected to be neutral to slightly accretive, excluding any one-time expenses (FY11 cons: $1.58). In 2012, they anticipate Tasty to contribute ~$210-225 mln to sales with an expected $25-30 mln EBITDA contribution and anticipate the transaction to be accretive ~$0.06 to $0.09 per diluted share (FY12 con: $1.71).
7:31AM Hercules Tech announces offering of $75.0 mln convertible senior notes (HTGC) 11.01 : Co announced that it plans to make an offering of $75.0 mln aggregate principal amount of its Convertible Senior Notes due 2016. Co plans to grant the initial purchaser an option to purchase up to an additional $15.0 mln principal amount of the Convertible Senior Notes to cover overallotments, if any. Co intends to use the net proceeds from this offering to fund investments in debt and equity securities.
7:31AM TeleComm Sys received certification for its Continuity Alert System through the Department of Defense Information Assurance Certification and Accreditation Process (TSYS) 4.41 :
7:31AM RAM Energy Resources announced an update to activity in its Mississippian oil play in Osage County, Oklahoma; 12 Wells Planned for Osage Mississippian Oil Play During 2011 (RAME) 2.11 : Co announces an update to activity in its Mississippian oil play in Osage County, Oklahoma. ~$5.4 million, or 15%, of RAM's 2011 capital expenditure budget totaling $35 million is allocated to the company's 56,320 acre concession, a part of the broad Mississippi Chat / Mississippi Solid / Arbuckle oil play in the region. "We are encouraged with the initial results from our Osage concession and have allocated a large proportion of our capital budget to test the productivity of the area. The combination of rig availability, relatively low drilling cost per well and ample infrastructure in the area allows us to aggressively pursue the play in the coming year."
7:31AM Global Crossing to be acquired by Level 3 (LVLT) valued at $23.04 per Global Crossing common or preferred share (GLBC) 14.80 : Level 3 Communications (LVLT) and GLBC announced that they have entered into a definitive agreement under which LVLT will acquire GLBC in a tax-free, stock-for-stock transaction. This transaction will create a company with pro forma combined 2010 revs of $6.26 bln and pro forma combined 2010 Adjusted EBITDA of $1.27 bln before synergies and $1.57 bln after expected synergies. Under the terms and subject to the conditions of the agreement, GLBC shareholders will receive 16 shares of LVLT common stock for each share of GLBC common stock or preferred stock that is owned at closing. Based on Level 3's closing stock price on April 8, 2011, the transaction is valued at $23.04 per GLBC common or preferred share, or approximately $3.0 bln, including the assumption of approximately $1.1 bln of net debt as of Dec. 31, 2010. Global Crossing has approximately 79 mln basic and preferred shares outstanding and approximately 83 mln shares outstanding on a fully diluted basis, giving effect to outstanding stock. "Additionally, the transaction accelerates the achievement of Level 3's target leverage ratio of three to five times debt to Adjusted EBITDA. Including the benefit of synergies and the cost of integration, we expect the transaction to be accretive to Level 3's Free Cash Flow per share in 2013."
7:30AM Medivation and Pfizer (PFE) announce results from Phase 3 Horizon Trial of Dimebon in Huntington Disease; will discontinue development of dimebon in Huntington disease (MDVN) 20.11 : Cos announced results from the Phase 3 HORIZON trial of the investigational drug dimebon (latrepirdine) in patients with Huntington disease. Dimebon did not achieve statistical significance for either of the co-primary endpoints, the Mini-Mental State Examination (MMSE), which measures cognition (p=0.39), or the Clinician's Interview-Based Impression of Change, plus caregiver input (CIBIC-plus), which measures global function (p=0.84). "We are disappointed with the results of the HORIZON trial given the high unmet need in this patient population. At this point, we will discontinue development of dimebon in Huntington disease, including the ongoing open-label extension study." No statistically significant improvements were achieved for the dimebon group relative to placebo on either of the co-primary endpoints. Dimebon was generally well tolerated in the study. The overall incidence of adverse events was equivalent between the treatment groups: 69 percent in the dimebon group and 68 percent in the placebo group. Adverse events occurring in at least 5 percent of dimebon treated patients and more frequently than in placebo treated patients were chorea (8 percent vs. 4 percent), headache (6 percent vs 3 percent) and fatigue (5 percent vs 0 percent).
7:30AM Cytokinetics reports data from phase IIa 'Evidence of Effect' clinical trial of CK-2017357 in patients with amyotrophic lateral sclerosis to be released Apr 9-16 at American Academy of Neurology annual meeting (CYTK) 1.44 :
7:24AM On The Wires (WIRES) :
* NetSol Technologies (NTWK) announced that CIBER joined NetSol's smartOCI Channel Partner program. * Globalstar (GSAT) responded to the recent Federal Communications Commission Report and Order regarding the use of mobile satellite services spectrum for terrestrial mobile broadband use. "Now that we have successfully completed the FCC licensing proceedings for our second generation constellation, we look forward to participating in these future MSS flexibility proceedings wherein the FCC will consider further implementation of the recommendations from the National Broadband Plan." * Sykes Enterprises (SYKE) announced that a section of the roof of its Ponca City, Oklahoma, customer contact management center suffered significant damage by an apparently large microburst, a tornado-like phenomenon which carried wind speeds of greater than 90 miles per hour. Based on both external and internal assessments, the co expects the center to be fully operational in ~5 business days. It generates run-rate revenues of ~$0.8 mln on a monthly basis. * China Century Dragon Media (CDM) announced that on April 5, 2011, it received, as expected, a notice of noncompliance from the NYSE Amex due to the delay in filing the Company's Annual Report on Form 10-K for the year ended December 31, 2010. Sections 134 and 1101 of the Exchange Company Guide require the timely filing of such report with the Securities and Exchange Commission. * ADA-ES (ADES) announced that an arbitration panel in Atlanta, Georgia in the case of Norit Americas v. ADA-ES, Inc., et al. has issued an Interim Award holding ADA liable for ~$37.9 million dollars in damages for breach of a non-solicitation provision of a Market Development Agreement the Company entered into with Norit in 2001 and terminated in 2006, and further holding ADA jointly and severally liable together with several other ADA Defendants for payment of a royalty of 10.5% for 3 years and then 7% for an additional 5 years on the sales of activated carbon from the production facility owned by ADA Carbon Solutions in which the Company indirectly holds a minority interest, for misappropriation of certain Norit claimed trade secrets. * In a further expansion of the firm's global equities business, Jefferies (JEF) announced the addition of six Managing Directors in Asia. The following professionals have recently joined the firm: Paul Krake as Head of Hedge Fund Sales, Lydia Leung for Hong Kong / China Equity Sales, Stephen Nichols as Head of Asia Trading, Adam Putterill as Head of Hong Kong and China Sales Trading, James Young as Head of Regional Sales, and David Welch as a Regional Sales Trader. All are based in Jefferies' Hong Kong office.
7:10AM Premier Financial Bancorp forms Premier Bank, an $820 mln West Virginia chartered bank with 23 locations (PFBI) 7.23 :
7:08AM Cepheid Extends Rapid Molecular Diagnostics' Leadership with FDA Clearance of Xpert Clostridium (CPHD) 29.25 : Co announces it has received clearance from the FDA to market its Xpert C difficile/Epi test. It is expected to be available for shipment the week of May 16.
7:04AM Gran Tierra Energy increases 2011 capital program to develop recently acquired assets in South America (GTE) 7.98 : Co announces capital spending plans on the recently acquired Petrolifera Petroleum Limited assets. Gran Tierra Energy intends to spend ~$55 million on the newly acquired assets with ~$25 million in Colombia, $14 million in Peru and $16 million in Argentina. Drilling and completion costs are expected to amount to $41 million, including $14 million in Colombia, $13 million in Peru and $14 in Argentina. Seismic costs total $12 million, mostly in Colombia and facilities costs total $2 million, mostly in Argentina.
7:03AM RailAmerica signs an agreement to acquire the assets of three short-line freight railroads in the state of Alabama for a total purchase price of $12.7 million (RA) 16.88 : For the next twelve months, RailAmerica anticipates these railroads will generate ~$3.7 million in revenue, $1.2 million in operating income and $0.7 million in depreciation and amortization. RailAmerica intends to use cash on hand to finance the purchase.
7:02AM Biogen Idec provides positive top-line results from the first phase 3 trial investigating oral BG-12 in multiple sclerosis (BIIB) 73.29 : Co announces positive top-line results from DEFINE, the first of two pivotal Phase 3 clinical trials designed to evaluate the investigational oral compound BG-12 as a monotherapy in people with relapsing-remitting multiple sclerosis. Results showed that 240 mg of BG-12, administered either twice or three times a day, met the primary study endpoint, demonstrating a highly statistically significant reduction in the proportion of patients with RRMS who relapsed at two years compared with placebo. Both doses of BG-12 also met all of the secondary study endpoints, providing a statistically significant reduction in annualized relapse rate, in the number of new or newly enlarging T2 hyperintense lesions, in new gadolinium-enhancing lesions, and in the rate of disability progression as measured by the Expanded Disability Severity Scale at two years. Data from scientific studies indicate that BG-12 has the potential to be distinctive by reducing the entry into and the action of inflammatory cells on the Central Nervous System, as well as potentially protecting CNS cells from oxidative stress and death by activation of the Nrf-2 pathway.
7:01AM Genesis Energy increased its quarterly distribution to $0.4075 per common unit, which represents an increase of ~10.9% over the first quarter 2010 (GEL) 27.66 : Co announced that it will pay a regular quarterly distribution of $0.4075 per Common Unit for the quarter ended March 31, 2011. This distribution represents an increase of approximately 10.9% over the first quarter 2010 quarterly distribution of $0.3675 per unit, and an approximate 1.9% increase over the distribution paid with respect to the fourth quarter of 2010.
7:01AM Auxilium Pharma launches of XIAPEX in EU by Pfizer (PFE); will receive $30 mln regulatory milestone (AUXL) 21.50 : C announces that the Company will receive a $30 million regulatory milestone payment from its EU partner, Pfizer, following the first sale of XIAPEX in a major EU market. XIAPEX is a new non-surgical treatment option for Dupuytren's contracture in adult patients with a palpable cord and is the first injectable treatment to be approved in the EU for the treatment of Dupuytren's contracture. The sale in the first major EU market occurred in the United Kingdom. Co now earned $45 million of regulatory milestones related to the Dupuytren's contracture indication and is eligible to receive up to $30 million in additional regulatory milestone payments for this indication.
7:01AM Benchmark Elec lowers Q1 guidance below consensus (BHE) 18.41 : Co lowers Q1 guidance, see EPS of $0.23-0.26, ex-items, vs $0.30-0.36 previously and the $0.33 Thomson Reuters consensus; revs $540 mln from $565-605 mln vs. $587.30 mln Thomson Reuters consensus "due to softer than projected demand and temporary inventory corrections from some of its customers... We anticipate a reversal of this sales decline and expect a rebound in the second quarter."
6:46AM Vivus announces QNEXA phase 3 data in The Lancet show significant weight loss and broad improvements in co-morbidities (VVUS) 6.46 : Co announces that detailed results from the 56-week CONQUER study were published in The Lancet evaluating the efficacy and safety of investigational drug QNEXA in 2,487 patients across 93 sites in the US. Data published in the peer-reviewed journal provided an in-depth look at weight loss and improvements in the full spectrum of co-morbidities studied as secondary endpoints, including cardiovascular, metabolic and inflammatory risk factors.
6:45AM Calumet Specialty Products offers $375 mln private offering of Senior Notes due 2019 (CLMT) 21.45 : Co intends to use all of the net proceeds from the private placement and borrowings under its revolving credit facility to repay in full all of the outstanding borrowings under its existing senior secured term loan facility, as well as all accrued interest and fees.
6:32AM PetroQuest Energy provides updates on borrowing base redetermination and operations; co's $100 mln borrowing base has been reaffirmed (PQ) 8.95 : Co announces it has completed its semi-annual re-determination of its borrowing base under its credit facility. As a result, the co's $100 mln borrowing base has been reaffirmed. In co's Woodford Shale, the average 30 day rates for PQ44 and PQ45 above were 91% and 96%, respectively, of their 24 hour gross production rate. In addition to the above completions, the co is currently completing its forty-eighth Woodford operated horizontal well and has reached or is nearing total depth on four additional Woodford operated wells scheduled to be completed during May. In the Gulf Coast Basin, the co's Craft Farms prospect located in Terrebonne Parish, Louisiana recently reached total depth and has encountered ~33 net feet of pay in the primary objective. The co has an ~41% net revenue interest in the well and expects first production in late May 2011.
6:31AM General Finance Corp announces consideration of a Royal Wolf IPO (GFN) 3.15 : Co announces that its subsidiary, GFN Australasia Holdings Pty Limited (to be renamed Royal Wolf Holdings Limited, if converted to a public company), is considering a proposal to undertake an initial public offering of its ordinary shares in Australia and apply for listing of its Shares on the Australian Securities Exchange. General Finance intends to retain an indirect majority interest in Royal Wolf subsequent to the Australian IPO.
6:30AM Hansen Medical Submits 510k Application With FDA for Vascular Robotic System and Catheter (HNSN) 2.84 : In the US, the Vascular Robotic System is not available for sale pending clearance of the 510(k) submission, which is currently under review. In Europe, the System requires CE mark and is not available for sale, nor can it be marketed until the CE mark is received.
6:27AM On The Wires (WIRES) :
* Mindspeed Technologies (MSPD) announced that Ensemble Designs has selected Mindspeed's crosspoints and highly integrated reclockers for its new family of compact, flexible routers. * Elbit Systems (ESLT) announced that Elbit Systems of America's recently acquired subsidiary, M7 Aerospace has been awarded a $15.6 mln contract by the Naval Air Systems Command to perform Contractor Logistics Support and maintenance for a mixed fleet of seven RC/EC/C-26D and 12 UC-35C/D utility aircraft. The five-year contract is for a base year with four one-year renewal options. * Globalstar (GSAT) announced that satellite manufacturer Thales Alenia Space has determined during pre-launch activities that the second launch of six second-generation satellites be delayed. * CombiMatrix (CBMX) announced that it has entered into a strategic partnership with Clarient, a GE (GE) Healthcare co, that allows Clarient the right to commercialize the CombiMatrix DNAarray product portfolio. * China TechFaith Wireless Communication Technology (CNTF) announced that its "Jungle" outdoor 3.5G rugged outdoor mobile phone passed both the IP67 and the U.S. military MIL- STD 810G shock standard.
6:25AM China Electric Motor receives letter from Nasdaq; SEC Subpoena (CELM) 2.91 : Co receives a notification letter from the Nasdaq Stock Market indicating that the Company was not in compliance with the continued listing requirements under Nasdaq Listing Rule 5250(c)(1), which requires the timely filing of periodic reports with the U.S. Securities and Exchange Commission. Co receives the Nasdaq Letter because it has not timely filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2010. Co was also notified recently by the staff of the SEC that it has initiated a formal, nonpublic investigation into whether the Company or any of its personnel violated the federal securities laws. On April 7, 2011, the SEC served the Company with a subpoena for documents in connection with its investigation. The SEC has informed the Company that the investigation should not be construed as an indication that any violations of law have occurred.
6:07AM American Medical: Endo (ENDP) Agrees to Acquire co for $30 per share; expected to be immediately accretive to ENDP; ENDP reaffirms FY EPS and rev guidance (AMMD) 22.33 : Endo Pharmaceuticals (ENDP) and American Medical Systems (AMMD) announce that they have entered into a definitive agreement under which Endo will acquire AMMD for $30 per share, or $2.9 bln in cash, which includes the assumption and repayment of $312 mln of AMMD debt. Transaction expected to be immediately accretive to adjusted diluted earnings per share upon close and accretive by $0.60 in 2012, growing to approximately $0.80 in 2013. Endo also expects to achieve at least $50 mln in cost synergies by 2013. In lieu of this acquisition, ENDP reaffirms guidance for FY11 (Dec), sees EPS of $4.20-4.30 vs. $4.30 Thomson Reuters consensus; sees FY11 (Dec) revs of $2.35-2.45 bln vs. $2.36 bln Thomson Reuters consensus.
6:05AM Integra receives FDA approvals for three spinal fixation devices (IART) 47.14 : CO announces that it has received 510k clearance from the FDA for three new spinal intervertebral body fusion devices, continuing to build its momentum in the spine market. The systems are currently in limited commercial release and are targeted for full commercial release later this year.
6:01AM PPL Corp offers 80 mln shares of common stock and $750 mln in equity units (PPL) 25.87 : Co announces concurrent offerings of 80 million shares of its common stock and $750 million of equity units. Proceeds of the offerings will be used to repay a portion of the 3.6 billion pounds Sterling Bridge Term Loan Facility used to fund PPL's recently completed 4.1 billion pounds acquisition of the Central Networks electricity distribution businesses in the United Kingdom. BofA Merrill Lynch and Credit Suisse are acting as the lead book running managers for both the common stock and equity units offerings. Barclays Capital, Morgan Stanley and Wells Fargo Securities are joint book runners for the common stock offering. Citi, J.P. Morgan and UBS Investment Bank are joint book runners for the equity units offering.
4:42AM On The Wires (WIRES) :
* Chevron (CVX) announced the signing of agreements with Shell Development (Australia) to bring Shell (RDS.A) into the Chevron-operated Wheatstone Project as a natural gas supplier and equity participant. * ADA-ES (ADES) today announced that an arbitration panel in Atlanta for ~$37.9 mln in damages for breach of a non-solicitation provision of a Market Development Agreement and severally liable together with several other ADA Defendants for payment of a royalty of 10.5% for 3 years and then 7% for an additional 5 years on the sales of activated carbon from the production facility owned by ADA Carbon Solutions in which the co indirectly holds a minority interest, for misappropriation of certain Norit claimed trade secrets. * Avid (AVID) announced Interplay Central that demonstrates Avid's Integrated Media Enterprise in action, enabling businesses to dramatically improve processes, increase revenues, and compete more effectively. * Adobe (ADBE) announced the release of new products including Creative Suite 5.5, Photoshop CS5 for tablets, and Flash Builder 4.5. * AMD (AMD) announced that the ATI FirePro V9800 professional graphics card was certified for Vizrt's beta release of the Viz Engine 3.5 rendering solution. * Verizon (VZ) is unveiled new "content-to-consumer" delivery capabilities at the NAB Show to help entertainment and media companies satisfy and capitalize on consumers' growing appetite for live and on-demand, personalized video content on their smartphones, tablets and other devices. * Roche (RHHBY) and Lonza announced that they have entered into a co-exclusive distribution agreement for the commercialization of Roche's MycoTOOL mycoplasma PCR assays. MycoTOOL detection kits are now available through Lonza for final release testing of pharmaceutical products, upon validation. * InterOil (IOC) announced that InterOil and Pacific LNG Operations have executed agreements, conditional upon Flex shareholder approval and final FID, with Samsung Heavy and FLEX LNG related to the construction and operation of a 2 mln tonne per annum floating liquefied natural gas processing vessel. * LDK Solar (LDK) announced a $35 mln investment to establish a new manufacturing line to produce silane gas in its Mahong Plant in Xinyu City, Jiangxi Province to supply up to 2,000 MT of silane gas to meet the growing demand from the semiconductor, solar and flat panel display industries. * Advanced Analogic Technologies (AATI) announced that its Chairman and CEO declined the special bonus payments relating to the successful resolution of a longstanding lawsuit that were awarded by the co's board. Both respectfully declined the bonuses in light of the co's focus on minimizing expenses and returning to profitability.
4:05AM Central Pacific Financial commences $20 mln common stock rights offering (CPF) 20.04 : Co announces that it will commence on April 11, 2011, a $20 mln common stock rights offering. Shareholders who owned common shares of the co at the close of business on February 17, 2011 will receive at no charge a transferable right to purchase newly-issued common shares in the Rights Offering. The co will issue up to 2 mln common shares in the Rights Offering at a price of $10 per share, the same price paid by the private investors in the co's $325 mln private placement.
3:53AM Ship Finance Intl agrees to build 4 - 4,800 TEU newbuilding container vessels; scheduled delivery in 2013; construction cost will be ~$230 mln (SFL) 20.63 : Co agrees to build 4 - 4,800 TEU newbuilding container vessels at a state-owned shipyard in China with scheduled delivery in 2013. The aggregate construction cost will be ~$230 mln, with a majority of the payment due on delivery of the vessels, and co expects to secure bank financing for up to 80% of the purchase price. The vessels will be chartered on time-charter basis to a large, European- based container line for seven years from delivery, and the charter rate will be ~$26,250 net per day per vessel.
2:12AM Kingsway Fin enters into a definitive agreement to purchase a minority stake in a newly formed holding co that will own a majority of Walshire General Assurance, the sole shareholder of Lincoln General Insurance (KFS) 1.01 : A majority of the charities who received the Walshire shares have accepted an offer to sell their stakes to LGIC Holdings. The transaction involves a change of control of Lincoln General, which must be approved by the Pennsylvania Department of Insurance. In that connection, the Department and co have been discussing a settlement of their dispute, whereby, if the change of control application is approved and the transaction subsequently closes, the appeal filed by the Department will be withdrawn and the litigation involving the Department, co and the charities will be discontinued.
2:09AM Merck provides update on Phase II/III Clinical Trial of investigational staphylococcus aureus vaccine, V710 (MRK) 33.67 : Co and Intercell AG (INRLF) announce that following a pre-specified interim analysis from the Phase II/III clinical trial evaluating V710, an investigational vaccine for the prevention of Staphylococcus aureus infection, the independent Data Monitoring Committee recommended suspension of enrollment. Although the trial did not meet the pre-specified futility criteria, the DMC nonetheless recommended suspension of enrollment pending further analyses of the benefit/risk profile of the vaccine candidate. Co and Intercell plan to provide a further update when analyses have been completed.
2:04AM NASDAQ and IntercontinentalExchange (ICE) respond to NYSE Euronext (NYX) Board's summary rejection of superior proposal (NDAQ) 28.45 : Cos issue the following statement in response to the summary rejection by NYSE Euronext (NYX) of their joint proposal to acquire NYSE Euronext, valued at $43.13 per share in cash and stock, as of the close of trading on Friday, April 8, 2011. In summary, co states: NYX Board wants to deny stockholders benefit of superior proposal; they see significant execution risks with deutsche boerse proposal; and co reaffirms proposal that delivers significantly more value to NYSE Stockholders. "NYSE Euronext's Board of Directors is depriving its stockholders of the benefits of a superior proposal, disregarding the fundamental corporate governance principles that it has espoused for the rest of corporate America. The feedback we have received from NYSE Euronext stockholders is very positive, and we would expect NYSE Euronext would, at the very least, meet with us and our advisors to discuss the merits of the proposed combination."
1:57AM NYSE Euronext Board unanimously reaffirms strong commitment to agreed Deutsche Boerse (DBOEY) combination; rejects unsolicited proposal from Nasdaq (NDAQ) and IntercontinentalExchange (ICE) as strategically unattractive; with unacceptable execution risk (NYX) 38.70 : Co announces that its Board, has unanimously reaffirmed the previously announced combination agreement with Deutsche Boerse AG (DBOEY) and rejected the unsolicited and highly conditional proposal by NASDAQ (NDAQ) and IntercontinentalExchange (ICE) to break up NYSE Euronext. "Breaking up NYSE Euronext, burdening the pieces with high levels of debt, and destroying its invaluable human capital, would be a strategic mistake in terms of where the global markets are going, and is clearly not in the best interests of our shareholders. The highly conditional break-up proposal from Nasdaq/ICE would also require shareholders to shoulder unacceptable execution risk. "We are confident that the combination with Deutsche Boerse will create compelling value for our shareholders."
1:47AM Sterlite Industries provides production results for Q4 and year ended March 2011 (SLT) 15.70 : Co announces mined metal production was a record 231,000 tonnes in Q4 and 840,000 tonnes for the full year, 19% and 9% higher than the corresponding prior year periods, respectively, due to higher contributions from Rampura Agucha and Sindesar Khurd mines. Refined zinc production was 29% higher at 194,000 tonnes in Q4, and 23% higher at 712,000 tonnes for the year. The new 210 ktpa Rajpura Dariba Smelter, which was commissioned in March 2010, contributed 46,000 tonnes and 165,000 tonnes during Q4 and the full year respectively. Lead production was 10% lower at 18,000 tonnes in Q4, and was 13% lower at 63,000 tonnes for the year. Sale of surplus zinc and lead concentrate was 30,000 and 18,000 dry metric tonnes in Q4 and 66,000 and 39,000 dry metric tonnes during the full year, respectively. Silver production was 50,000 kilograms in Q4, in line with the corresponding prior quarter. Silver production for the year was marginally higher at 179,000 kilograms. Commissioning of the 100 ktpa lead smelter at Dariba is expected to be completed in Q1 FY2011-12, which will increase lead and silver production. The new 1.5 mtpa mill at SK Mine is ramping up well, and is expected to achieve its rated capacity in FY 2011-12.
1:43AM City National acquires deposits and assets of Nevada Commerce Bank (CYN) 57.63 : Co announces that its wholly owned subsidiary, City National Bank, has acquired substantially all of the assets and deposits of Las Vegas-based Nevada Commerce Bank in a purchase and assumption agreement with the FDIC. Co will operate Nevada Commerce Bank's two banking offices. Nevada Commerce Bank had ~$145 mln in assets and $136 mln in deposits as of December 31, 2010. Approximately $111 mln in assets will be subject to a loss-sharing agreement with the FDIC.
1:37AM Bacterin International updates its Q4, FY10 results; increased non cash expenses by ~$1.2 mln (BONE) 3.40 : In its 10-K, co included certain non-recurring, non-cash charges in the fourth quarter results ended December 31, 2010, which increased non cash expenses by ~$1.2 mln from the financial results previoudly reported. These items include: Non-cash charge of $772,000 reflecting the terms of a settlement agreement under which a former officer of the co exchanged outstanding options for a warrant to purchase 100,000 shares of common stock and also received 30,000 shares of restricted stock. Non-cash charge of $405,000 related to the issuance of shares pursuant to an agreement with financial advisors at the time of the co's reverse merger.
1:31AM Aurizon Mines provides Q1 operating results; expect Q1 gold production at low end of prior guidance (AZK) 7.25 : Co announces its operating results for 1Q11. Gold production from the Casa Berardi mine in 1Q11 totalled 31,976 ounces, 12% lower than budget and 9% lower than the first quarter 2010 production of 35,188 ounces. Ore processed in 1Q11 amounted to 161,036 tonnes at an average grade of 6.9 grams of gold per tonne. Metallurgical recoveries were 90.2%. Accordingly, the co expects first quarter total cash costs to be significantly higher than the forecast for 2011 of $495 per ounce. Based upon first quarter results and a review of the mine plan for the balance of the year, the co now expects gold production for 2011 to be ~165,000 ounces compared to the previously announced guidance of 165,000-170,000 ounces. During the first quarter of 2011, co sold 34,305 ounces of gold at an average price of $1,392 per ounce for revenues of $46.9 mln.
1:25AM Ecopetrol signs 8 E&P contracts resulting from Colombia Round 2010 (EC) 41.49 : Co announces that it has signed eight exploration and production contracts with the National Hydrocarbons Agency, corresponding to blocks awarded to the co in the Colombia Open Round 2010. The eight blocks cover a total area of more than 840K hectares and are located in the Llanos, Valle Medio del Magdalena and Sinu-San Jacinto basins, and the Pacific offshore. Co has a 100% stake in six of the contracts. In the SSJS 1 contract, its stake is 70%. In the VMM 32 contract, it holds a 51% stake. Co believes that the signing of these eight E&P contracts helps strengthen its exploratory activity and the search for new reserves with the aim of producing 1 mln barrels equivalent per day by 2015.
1:19AM Mannkind: FDA informs co its End-of-Review meeting scheduled for Apr 15 will be postponed to later date; was cancelled in prep of potential FDA shutdown (MNKD) 3.64 :
U.S. blue-chip stocks eked out a slim gain Monday but other market measures fell slightly as investors traded cautiously ahead of the first quarter corporate earnings season. The Dow Jones Industrial Average closed up 1.06 points, or 0.01%, at 12381.11.
The Nasdaq Composite shed 8.91, or 0.32%, to 2771.51. The Standard & Poor's 500-stock index slipped 3.71, or 0.28%, to 1324.46. The mixed activity came as investors looked ahead to the first-quarter earnings season, which kicked off unofficially Monday afternoon with Alcoa's report after the market close.
Shares of the aluminum giant fell 15 cents, or 0.8%, to $17.77, prior to the company's release. Alcoa swung to a first-quarter profit as it again posted higher aluminum prices and increased production, helping income from continuing operations reach its highest mark since the second quarter of 2008. Alcoa posted a profit of $308 million, or 27 cents a share, compared with a prior-year loss of $201 million, or 20 cents a share. Revenue climbed 22% to $5.96 billion.
The bottom line topped analysts' expectations, although sales growth wasn't as strong as Wall Street had expected. Analysts polled by Thomson Reuters expected a profit of 27 cents a share on revenue of $6.07 billion. The company's shares fell 1.9% in after-hours trading. Investors are generally expecting first-quarter earnings to come in strong, but they are concerned about the impact of rising food and energy prices.
European markets
European markets ended in negative territory Monday, with shares of car makers providing downward pressure after a broker downgrade. Bucking the trend, bank stocks traded higher in London, steadying the FTSE 100 index, as a government-appointed commission announced long-awaited reform proposals for the industry. The Stoxx Europe 600 index fell 0.2% to close at 280.99, after gaining 0.6% last week. Earlier in the session, markets were rattled by news of a strong earthquake in northeastern Japan.
European automotive stocks dropped after Credit Suisse downgraded the sector to benchmark from overweight, saying it's taking an increasingly cautious stance on cyclical stocks. The broker cut Daimler AG to neutral from outperform, saying the company needs structural reforms.
Daimler fell 2.7%, while BMW AG dropped 2.5% and Volkswagen AG sank 1.4%, pushing the German DAX 30 index down 0.2% to close at 7,204.86. Shares of Deutsche Boerse AG rose 0.9% in Frankfurt, after the board of NYSE Euronext Inc. Sunday affirmed its commitment to a planned merger with the German exchange, rejecting a rival $11.3 billion offer from Nasdaq OMX Group Inc. and IntercontinentalExchange Inc.
Away from the main index, shares of Intercell AG fell nearly 27% after the company and Merck & Co. announced that a panel has recommended they suspend enrollment in a test of their vaccine to treat staphylococcus aureus infection. Autos also weighed on France's CAC 40 index, which lost 0.6% to finish at 4,038.70. Shares of Renault SA fell 2.2% and Peugeot SA lost 2%.
Shares of Schneider Electric SA fell 3.7%, a top decliner in Paris after Bloomberg News reported that the company was mulling a purchase of manufacturing group Tyco International Ltd. Greece's ASE Composite Index dropped 2.6% to 1,491.83 after German Finance Minister Wolfgang Schaeuble reportedly said it's unclear if Greece will need more financial relief. Shares of Piraeus Bank SA shed 5%, Coca-Cola Hellenic Bottling Co. SA fell 2.6% and National Bank of Greece SA declined 3.8%.
Ireland's ISEQ index fell 1% to 2,936.88, with shares of Bank of Ireland dropped more than 9%. In London, the FTSE 100 ended virtually unchanged, slipping 2.31 points to close at 6,053.44. Banks took center stage, with shares of Barclays PLC up 2.8% and Royal Bank of Scotland Group PLC adding 2.3%, after the Independent Commission on Banking said that the U.K.'s biggest lenders should have a minimum equity capital ratio of 10% and that retail operations should be separated from riskier investment-banking arms.
Australian stocks
Australian stocks ended at their highest level in nearly a year, with BHP Billiton leading miners after saying it wasn't aware of the basis for speculation it planned to buy Woodside Petroleum and offering updated details on a continuing share buy-back. Many other major markets declined, with Japanese stocks losing ground after data showed February's core machinery orders fell a sharper than expected 2.3% from the previous month.
The Nikkei Stock Average fell 0.5% to 9719.70, facing selling pressure after the benchmark jumped 1.8% on Friday to clinch gains for a third successive week. Sony dropped 1.5% and Sharp gave up 0.8% on news of suspended operations at domestic plants. Concern about delays to their production in the wake of the March 11 earthquake and tsunami pressured automobile stocks, with Toyota Motor and Nissan Motor falling 2.4% each, while Honda Motor gave up 2.2%. Shares in Tokyo Electric Power Co., the owner of the stricken Fukushima Daiichi nuclear plant, soared 19.1% after the Tokyo Stock Exchange temporarily imposed higher margin requirements to trade in the stock.
South Korea's Kospi fell 0.3% to 2122.39, China's Shanghai Composite dropped 0.2% to 3022.75, Hong Kong's Hang Seng Index gave up 0.4% to 24303.07, Taiwan's Taiex shed 0.2% to 8880.27 and India's Sensex fell 1% to 19262.54. Energy shares posted gains as crude-oil prices briefly went above $113 a barrel. Shares of PetroChina gained 2.8% in Hong Kong and 0.1% in Shanghai and Inpex Corp. rallied 3% in Tokyo. The high crude-oil price also raised hopes for higher prices for other fuels, spurring buying in regional coal miners. Coal India Ltd. gained 0.5% in Mumbai, while China Shenhua Energy Co. and China Coal Energy Co. rose 0.7% and 0.8%respectively in Hong Kong; the companies' Shanghai-listed shares added 3.2% and 0.8%, respectively.
Base metals
Base metals closed mixed on the London Metal Exchange Monday after struggling to find a clear direction, with a modest rise in the dollar and a lack of enthusiasm over Chinese trade figures keeping the markets largely within range. LME three month copper closed the session at $9,855 a metric ton, down 0.2% on Friday's PM kerb close.
Oil futures tumbled Monday, falling back below $110 a barrel as traders grow concerned that rising prices are beginning to weigh on demand. Light, sweet crude for May delivery settled $2.87, or 2.5%, lower at $109.92 a barrel on the New York Mercantile Exchange after hitting a fresh multiyear high of $113.46 earlier in the session.
Brent crude on the ICE futures exchange dropped $2.63 to $124.02 a barrel. The sharp rise in oil prices last week has investors rethinking whether demand is sustainable amid a global economy still in recovery. The International Monetary Fund on Monday said global economic growth will slow to 4.4% this year, with high oil prices and a spread of Europe's sovereign debt crisis threatening the recovery. The IMF's 2011 U.S. growth forecast was revised down to 2.8%.
Gold futures retreated on a calmer geopolitical outlook amid cease-fire efforts in the Middle East and a compromise over the U.S. Federal budget. The most actively traded contract, for June delivery, settled down 0.4%, or $6, at $1,468.10 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract had set a fresh all-time high overnight, reaching $1,478 a troy ounce. The April-delivery contract was down 0.4%, or $6, at $1,467.40 a troy ounce.
Market Data 
Markets 
AI
