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September 19, 2014 7:52 PM EDT
Updated: Sep 19, 2014 7:08 AM EDT  

Cantor Morning News®

 

 

 

Today's Stories From Cantor Fitzgerald

 Dogukan Aksoy  (212) 610-2348

        Nick Cernero (212) 610-3629

       Friday, September  19th     2014

TOP NEWS

 

o   US STOCK FUTURES:

o  U.S. stock-index futures rose, signaling equities may extend a record, amid continued investor optimism that interest rates will remain low even as data suggest the world’s biggest economy is strengthening.-BBG

o  FX: The dollar climbed to a six-year high versus the yen as the Federal Reserve moves closer to raising interest rates, diverging from its Japanese peer. The pound rose after voters in Scotland rejected independence.-BBG

o  GOLD: Gold fell toward an eight-month low in London after the Federal Reserve raised its interest-rate forecasts this week, strengthening the dollar.-BBG

o  TREASURIES:Treasuries fell, extending a third weekly decline, as a vote in Scotland to remain in the U.K. curbed demand for the relative safety of U.S. debt.-BBG

o  European Markets: FTSE 100 +0.68%, DAX +0.68%, CAC40 +0.13%

o  European equity markets remain in the black, maintaining opening gains, with Norway thinly bucking the trend. In the UK, Scottish voters rejected independence by 55% to 45%.-SA

o  Asian Markets: Nikkei +1.6%, Hang Seng +0.6%, ShanghaiComposite +0.6%

o  Asian equity markets traded broadly higher today amidst limited news flow out of Asia. Continued yen weakness was being cited as supporting a rally on the Nikkei. Throughout the day the index traded at 7-year high.-SA

o   BIG STORIES TODAY

o  Scotland rejects independence 55% to 45%: Scotland voted to stay in the U.K. in a referendum on independence, stepping back from a breakup of the 307-year-old union while wringing promises of more financial power from Prime Minister David Cameron.-BBG

o  Alibaba Raises $21.8 Billion in Record-Breaking U.S. IPO:  The company and shareholders including Yahoo! Inc. sold 320.1 million shares for $68 each, according to a statement, after offering them for $66 to $68. The sale -- which values Alibaba at $167.6 billion -- is already the largest by any company in the U.S. and has the potential to break the global record if additional shares are sold to underwriters.-BBG

o  Ellison Becomes Oracle Chairman as Catz, Hurd Split CEO Job:  Oracle Corp.’s Larry Ellison stepped down as chief executive officer of the software maker he founded, making way for a new generation of executives after one  of the most profitable runs for a leader in business history.-BBG

o  SAP to Buy Concur Technologies for $129/Share

o  Home Depot Says Data Breach Affected 56 Million Payment Cards:  Home Depot Inc. said a data breach between April and September put about 56 million payment cards at risk, signaling that the hacker attack was bigger than the one that struck Target Corp. last year.-BBG

o  Arkema Bids $2.2 Billion for Total’s Bostik Adhesives Unit:  Arkema SA, spun off from Total SA, made a 1.74 billion-euro ($2.2 billion) offer for the French oil-and-gas company’s adhesives business to benefit from growing demand for the Bostik glue brand used in households and construction sites.-BBG

o  Telefonica to Buy Vivendi’s Brazil Unit GVT for $9 Billion:  Telefonica SA agreed to buy Vivendi SA’s Brazilian broadband unit GVT for about 7 billion euros ($9 billion) to increase its challenge to competitors including billionaire Carlos Slim’s America Movil SAB.-BBG

o  JetBlue Names Hayes as CEO as Barger to Leave When Contract Ends:  JetBlue Airways Corp. said President Robin Hayes would become the carrier’s next chief executive officer when Dave Barger steps down in February.-BBG

o  Clorox Says Executive Benno Dorer to Succeed Knauss as CEO:  Clorox Co. said Benno Dorer, an executive in charge of its laundry, home care and international businesses, will succeed Don Knauss as chief executive officer.-BBG

o  AIG Says Wintrob Departs After Being Passed Over for CEO Job:  American International Group Inc., the largest commercial insurer in the U.S. and Canada, said Jay Wintrob is stepping down as head of the life insurance unit after being passed over in the company’s search for a chief executive officer.-BBG

o  Exxon Said to Halt Arctic Oil Well Drilling on Russian Sanctions: Exxon Mobil Corp. halted drilling on an offshore oil well intended as the first step in unlocking billions of barrels of crude in Russia’s remote Arctic, according to people familiar with the project.-BBG

o  Apple IPhone 6 Plus Contains Hynix, BRCM, QCOM: IFixit Teardown:  Apple iPhone 6 Plus includes Qualcomm, Skyworks, Avago, TriQuint, SK Hynix, Murata, Broadcom chips, according to iFixit teardown.-BBG

o  China Fines Glaxo $489 Million, Ending Bribery Investigation: China fined GlaxoSmithKline Plc 297 million pounds ($489 million) and imposed a suspended prison sentence on an executive for bribing doctors, capping a 15-month investigation that curbed the U.K. drugmaker’s sales.-BBG

o  U.K. Prosecutors Said to Ready More Charges on Libor This Year: The U.K. Serious Fraud Office is readying more criminal charges this year against traders in its Libor-manipulation probe, according to people with knowledge of the matter.-BBG

o   TOP STOCK AND SECTOR MOVING STORIES

o   M&A

o  DRC Siemens  preparing offer for Dresser-Rand of at least $85/share – Bloomberg

o  CNQR SAP to acquire Concur Technologies for $129/sh

o  MDLZ: Mondelez International, DE Master Blenders 1753 put Café Grand'Mère, L'Or up for sale – FT

o  GNC GNC discussing options with banks after receiving interest from PE - FT

o  SYNDICATE

o  IPO

o  BABA Alibaba.com issues press release regarding IPO pricing

o  BABA Alibaba.com IPO prices at $68 per ADS through Citi, Deutsche, Goldman, JPMorgan, Morgan Stanley and Citi

o  SKYS Sky Solar files $100M IPO through FBR and Cowen

o  AM Antero Midstream Partners files amended S-1; increases IPO to $750M from $500M through Barclays, Citi, and Wells Fargo

o  OTHER

o  VMEM Violin Memory prices offering of $105.0M of convertible senior notes

o  CALA Calithera Biosciences files amended S-1; to offer 6M shares in the range of $13-15/sh through Citi, Leerink, Wells Fargo and JMP

o  GST Gastar Exploration announces 17M share offering priced at $6.25/sh

o  GLOP GasLog Partners files amended F-1; to offer 4.5M common units through Citi, Credit Suisse and Wells Fargo

o  GLUU Glu Mobile registers 10M shares for holders related to acquisition of Cie Games

o  HD Home Depot guides FY

o  QRHC Quest Resource Holdin announces common stock & warrant offering of indeterimate amount through Maxim

o  DOC Physicians Realty Trust announces closing of $400M unsecured revolving credit facility

o  BXMT Blackstone Mortgage Trust announces 8M class A share secondary offering through Citigroup, BofA/ML, JPMorgan, Wells Fargo and Morgan Stanley

o   TECH/MEDIA/TELECOM  

o  Cantor Research Highlight: YHOO (BUY $43.00): Alibaba priced its highly anticipated IPO at $68/sh after market close yesterday, which results in an aggregate valuation of $169.4B for BABA and $9.5B in gross proceeds for YHOO (for 140M shares). With BABA's share price set, we are now updating our YHOO valuation to reflect this first tranche sale and YHOO's remaining second tranche (384M shares at our estimated 12-month target of $90/sh; pls. refer to our BABA initiation report, published concurrently this morning, for details). We're maintaining a BUY rating and increasing our PT to $43 from $39. Additionally, we continue to believe that a tax-efficient sale of the second tranche could provide as much as $10-15/sh of upside to our PT.-Youssef Squali

o  Cantor Research Highlight: BABA (BUY-$90.00): BABA starts trading today and with it comes the opportunity to invest in China's largest e-commerce platform, which we believe has the potential to dominate global online commerce over time. We're initiating coverage of BABA with a BUY rating and $90 PT. We believe that a differentiated pricing model, strong brand, and unmatched scale give Alibaba an unfair competitive advantage relative to peers both in and outside China. While the stock's not cheap, we believe the company's outsized growth and margin profiles, if sustained, should support higher valuation over time.-Youssef Squali

o  BABA Alibaba.com IPO prices at $68 per ADS through Citi, Deutsche, Goldman, JPMorgan, Morgan Stanley and Citi

o  CNQR SAP to acquire Concur Technologies for $129/sh

o  CNQR Concur Technologies downgraded to neutral from buy at UBS

o  CNQR Concur Technologies downgraded to sector perform from outperform at RBC Capital

o  CNQR Concur Technologies upgraded to neutral from sell at Goldman Sachs

o  CNQR Concur Technologies downgraded to neutral from outperform at Credit Suisse

o  ACTS Actions Semiconductor announces preliminary results of 60M share tender offer

o  VMEM Violin Memory prices offering of $105.0M of convertible senior notes

o  GRUB GrubHub initiated buy at Bank of America Merrill Lynch

o  ORCL Oracle downgraded to hold from buy at Deutsche Bank

o  AAPL Apple target increased to $110 from $106 at Cowen

o  IPWR Ideal Power initiated buy at Roth Capital

o  TQNT RF Micro and TriQuint announce new company name to be Qorvo

o  RHT Red Hat guides Q3

o  ORCL Oracle guides Q2 (Nov) non-GAAP EPS

o  EPIQ EPIQ Systems announces review of strategic alternatives; board adopts short-term shareholder rights plan

o  TIBX TIBCO Software guides Q4

o  TXN Texas Instruments increases quarterly dividend by 13.3%

o  FINANCIALS/REITS

o  TCBI Texas Capital Bancshares, Inc. upgraded to buy from hold at Wunderlich Securities

o  CXP Columbia Property Trust initiated sell at Goldman Sachs

o  KYN Kayne Anderson MLP increases quarterly dividend by 1.6%

o  WPG Washington Prime Group, Inc. to host transaction update call

o  WPC W.P. Carey increases quarterly dividend by 4.4%

o  HBAN Huntington Bancshares published the results of the 2014 Dodd-Frank Act Mid-Cycle Stress Test

o  PMT PennyMac increases quarterly dividend by 3.4%

o  FBIZ First Business Financial Services shareholders approve acquisition of Aslin Group

o  WSFS WSFS Financial increases quarterly dividend by 25.0% to $0.15 from $0.12; authorizes 470K share repurchase plan

o  RAS RAIT Financial Trust acquires two retail centers for $50.8M

o  CLDT Chatham Lodging Trust announces 5M share secondary offering through Barclays, BofA and UBS

o  DOC Physicians Realty Trust announces closing of $400M unsecured revolving credit facility

o  STWD Jeffrey DiModica appointed President of Starwood Property Trust; effective today

o  BXMT Blackstone Mortgage Trust announces 8M class A share secondary offering through Citigroup, BofA/ML, JPMorgan, Wells Fargo and Morgan Stanley

o  IRT Independence Realty Trust acquires Memphis, Tennessee apartment community for $29.8M

o  FITB Fifth Third reports results of Dodd-Frank Act mid-cycle stress test

o   HEALTHCARE

o  SNGX Soligenix awarded NIAID contract valued up to $24.7M for the development of heat stable RiVax vaccine

o  PDLI RBC says PDL BioPharma shares seem oversold

o  GILD Gilead Sciences notes the EC grants marketing authorization for Zydelig (idelalisib) for treatment of CLL, FL

o  CALA Calithera Biosciences files amended S-1; to offer 6M shares in the range of $13-15/sh through Citi, Leerink, Wells Fargo and JMP

o  AUXL Auxilium Pharmaceuticals downgraded to neutral from buy at UBS

o  TRIV TriVascular Technologies updates on FY guidance following voluntary field safety corrective action

o  ICLR ICON plc completes $40M share repurchase, announces additional program of up to $100M

o  ALXN Paediatric patients with Hypophosphatasia receiving Asfotase Alfa had sustained improvements in growth, physical function

o  CBAY CymaBay Therapeutics initiated buy at Roth Capital

o  AUXL Auxilium Pharmaceuticals downgraded to neutral from buy at Goldman Sachs

o  LLY Eli Lilly plans to make Trulicity 0.75 mg and 1.5 mg single-dose pens available for adults in the US later this year

o  CMS announces that Medicare Advantage enrollment projected to reach a new high

o  Wedbush Securities assumes NVAX, PRTA

o  NAVB Navidea issues press release for previously reported orphan designation

o  PDEX Pro-Dex reports Q4

o   ENERGY/UTILITIES

o  CSUN China Sunergy CEO Stephen Zhifang Cai has resigned

o  DRC Siemens preparing offer for Dresser-Rand of at least $85/share -- Bloomberg

o  PTEN Patterson-UTI Energy to acquire Texas-based pressure pumping assets; terms undisclosed

o  VTG Vantage Drilling downgraded to sector perform from outperform at RBC Capital

o  DRC Siemens wants to offer more than $80/share for Dresser-Rand to outdo bid from Sulzer -- Manager magazine

o  CRR Carbo Ceramics downgraded to sell from neutral at Goldman Sachs

o  EMES Emerge Energy Services LP initiated buy at Goldman Sachs

o  XOM Exxon Mobil halts drilling well off Russia's north coast - Bloomberg

o  SOPW Solar Power acquires SPV with rights to projects that purchase, develop ~19 MW of solar power projects

o  GST Gastar Exploration announces 17M share offering priced at $6.25/sh

o  SKYS Sky Solar files $100M IPO through FBR and Cowen

o  LINE Linn Energy LLC and Exxon Mobil announce trade

o  AM Antero Midstream Partners files amended S-1; increases IPO to $750M from $500M through Barclays, Citi, and Wells Fargo

o  GEVO Gevo updates on implementation of Side-by-Side production at Luverne, MN Plant

o   MATERIALS/INDUSTRIALS:

o  EGL Engility Holdings awarded position on One Acquisition for Integrated Services contract

o  DRC Siemens preparing offer for Dresser-Rand of at least $85/share -- Bloomberg

o  DRC Siemens wants to offer more than $80/share for Dresser-Rand to outdo bid from Sulzer -- Manager magazine

o  BA Boeing preparing to concede fighter-jet market to Lockheed Martin - WSJ

o  LMT Reuters reports Lockheed Martin close to signing $4B deal with DoD for 43 additional F-35s

o  VMI Valmont expects FY14

o  FTEK Fuel tech acquires IP for CARBONITE fuel conversion process for total consideration of $3.01M cash

o  EGL Engility Holdings wins $24.6M award to support USAID efforts to promote private sector investments in Rwanda agriculture

o  AGX Argan announces $0.70/sh special cash dividend

o   CONSUMERS/SERVICES:

o  GNC GNC discussing options with banks after receiving interest from PE - FT

o  VFC VF Corp upgraded to buy from hold at KeyBanc

o  BWS Brown Shoe invests in Jack Erwin; no terms disclosed

o  COTY Coty downgraded to sell from neutral at B. Riley

o  MDLZ: Mondelez International, DE Master Blenders 1753 put Café Grand'Mère, L'Or up for sale – FT

o  ESI ITT Educational discloses SEC made preliminary determination to recommend Wells Notice; NYSE listing update

o  SFM Sprouts Farmers Market initiated overweight at Barclays

o  NLSN Nielsen acquires Indicus Analytics, terms undisclosed - Mint

o  AEO American Eagle upgraded to buy from neutral at Goldman Sachs

o  VSEC VSE Corporation announces plan to consolidate its International Group and Federal Group

o  SHLD Sears Holdings holder Fairholme in discussions regarding previously reported $400M secured short-term loan

o  FWM Fairway Group names Jack Murphy CEO

o  TAST Carrols Restaurant Group, Inc. to purchase 30 Burger King restaurants in North Carolina

o  GLUU Glu Mobile registers 10M shares for holders related to acquisition of Cie Games

o  FRS Frisch's Restaurants holder AOF Management enters into non-disclosure agreement with company

o  MCD McDonald's increases quarterly dividend by 4.9%

o  HD Home Depot guides FY

o  QRHC Quest Resource Holdin announces common stock & warrant offering of indeterimate amount through Maxim

o  GNC GNC names Jeffrey Hennion EVP, Chief Marketing and eCommerce Officer

o   AUTOS/TRANSPORTS:

o  F Ford to stop making Fiesta in Cologne, Germany, for 11 days in October, November - Reuters

o  TRN Trinity Industries Inc. target increased to $60 from $55 at UBS

o  JBLU Rising CEO Robin Hayes does not tell WSJ if he will have JetBlue Airways initiate first-bag fee

o  GLOP GasLog Partners files amended F-1; to offer 4.5M common units through Citi, Credit Suisse and Wells Fargo

o  JBLU JetBlue CEO Dave Barger to be succeeded by current president Robin Hayes, effective 16-Feb-15

o  JBLU "BREAKING: JetBlue Airways CEO David Barger to retire in February. $JBLU" - Tweet by @CNBC

o  GAMING, LODGING, & LEISURE

o  H Hyatt Hotels to sell 38 hotels for ~$590M

DISCLAIMER: Prepared by staff of Cantor Fitzgerald & Co. (“Cantor”) and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient’s organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ]

 


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