NYSE Analytics 06/02
SPY grows before NYSE opening bell
Support 192.80, resistance 193.00
Uptrend on premarket
In reaction to strong earnings/guidance: CONN +10.7%.
M&A news: NPSP +18.7% (Shire (SHPG) has secured funding for $5 bln NPSP bid, according to reports), PL +17.7% (Dai-ichi Life Insurance considering acquisition of PL, according to reports), BRCM+14% (to explore strategic alternatives for Cellular Baseband Business; reaffirms Q2 revenue guidance),HCT +10.9% (to be acquired by Ventas (VTR) for $2.6 bln, or $11.33 per HCT share), AMRI +3.1% (to acquire Oso Biopharmaceuticals Manufacturing for $110 million in cash; co anticipates the acquisition will be accretive to 2014 earnings), AHL +2.6% (Endurance Specialty (ENH) increases Proposal to Acquire Aspen Insurance Holdings (AHL) to $49.50 Per Share in Cash), SQNM +2% (announces its bioscience business was acquired by Agena Bioscience).
Select Biotech/pharma related names showing strength following ASCO: ARIA +14.6%, IMUC+11.9%, PCYC +6.8%, AVEO +5.4%, RXDX +3.6%, PBMD +0.7%, AZN +0.7%, BMY +0.5%.
Other news: LIQD +7.4% (MSDC Management discloses 10.6% passive stake in 13G filing), CANF+6.3% (announces that the US FDA has agreed with its Phase ii liver cancer protocol ), OMER +6.2% (receives FDA approval of Omidria for use in cataract and other intraocular lens replacement procedures),GDP +5% (announces Tuscaloosa Marine Shale well result and operational update), TTM +3.2% (still checking), GCI +2.5% (following positive Barron’s mention), SFY +2.3% (announces New Eagle Ford Well tests; average initial production rate of 21.4 mln cubic feet of gas per day), VPCO +1.8% (FDA considering options for regulations on E cigs, according to reports).
Analyst comments: AAV +4% (upgraded to Outperform at RBC Capital Mkts), TRIP +2.9% (upgraded to Outperform from Sector Perform at Pacific Crest), CENX +2.5% (upgraded to Neutral from Underperform at BofA/Merrill), MHR +2.2% (upgraded to Buy from Hold at Stifel), KTWO +2% (initiated with an Outperform at Cowen), GLOP +1.4% (initiated with a Outperform at Credit Suisse),MTN +1.3% (upgraded to Overweight from Equal Weight at Evercore), CMG +1.1% (TAG raises FY14 EPS est above consensus), MNTA +1.1% (resumed with a Buy at Goldman), AA +0.9% (upgraded to Neutral from Underperform at BofA/Merrill)
In reaction to disappointing earnings/guidance: MTZ -14.1%.
M&A news: NOV -9.3% (spin off of DNOW, target lowered to $82 from $90 at Howard Weil to account for DNOW spin (effective today)), SNN -1.7% (cont volatility due to M&A spec).
Select Biotech/pharma related names showing weakness after ASCO: PBYI -13.6%, CYTK-8.8%, CLVS -5.3%, NVS -1.2%.
Other news: AFSI -6.8% (cautious Barrons mention), DSCO -2.7% (files for $250 mln mixed securities shelf offering), ALU -2% (Ex-div), BNNY -2% (announces late 10-Q filing), IEP -1.9% (related to reports of SEC instigation), GFI -1.7% ( South Deep Section 54 lifted, operations resumed), NEON -1.4% ( files for 5 mln share common stock offering), CEL -1.3% (announced that its Board of Directors has instructed the Company to commence preparations for raising debt by offering), INSM -1.1% (files for common stock offering, size not disclosed), ALXN -0.8% (initiates voluntary nationwide recall of certain lots of Soliris (eculizumab) concentrated solution for intravenous infusion due to the presence of visible particulate matter in a single lot).
Analyst comments: Z -3.8% (downgraded to Sector Perform at RBC Capital Mkts, downgraded to Sector Perform from Outperform at Pacific Crest), STM -2.1% (downgraded to Sell from Neutral at Citigroup),XLNX -1.2% (downgraded to Neutral from Buy at Goldman), BIG -1.2% (downgraded to Equal Weight from Overweight at Barclays), MCHP -0.9% (downgraded to Neutral from Buy at Goldman).
Trading Ideas NYSE & NASDAQ:
• HCT – long above 11.00
• OMER – long above 13.00
• MTZ – long above 33.00
• CLVS – long above 48.50