iPhone X Coming Soon!

Watch Apple ahead of iPhone X launch

iPhone-X Coming Soon. See Stockwinners.com for details

Apple (AAPL) is expected to unveil the highly anticipated iPhone X tomorrow along with other new versions of its flagship mobile device. Commenting on the tech giant’s event, RBC Capital analyst Amit #Daryanani told investors that it may surpass expectations.

Meanwhile, his peer at JPMorgan argued that he expects the OLED based iPhone X to become available in October as Apple begins volume production in September.

APPLE EVENT

On Tuesday, September 12, Apple is expected to unveil its much anticipated 10th anniversary iPhone. According to a leak over the weekend, the new device will be called the iPhone X and will include wireless charging, facial recognition, edge-to-edge display and no home button.

Alongside the iPhone X, Apple is expected to release two other phones, namely the iPhone 8 and iPhone 8 Plus. Many also expect to see a third generation of the Apple Watch and a 4K Apple TV.

EVENT MAY TOP EXPECTATIONS

RBC Capital’s Daryanani told investors that Apple’s event tomorrow could surpass investors’ expectations, particularly as some of the new iPhone features are demonstrated live.

The analyst noted he believes the next generation flagship iPhone will feature a brand new form factor with an OLED display that spans edge-to-edge, upgraded A11 processors, wireless/inductive charging capability, a virtual home button embedded in the display, a 3-D facial recognition sensor for the front-facing camera, an augmented reality enabled rear-facing vertical dual lens camera, glass front and back with stainless steel edges, 3GB of RAM, 64GB and 256GB storage tiers, and improved water resistance.

Additionally, Daryanani expects Apple to introduce two new LCD iPhones, with pricing for the OLED device to start at $999 while the LCD models should be priced similarly to the current 7/7-plus. Alongside the new iPhones, Apple should also introduce a new Apple Watch with a cellular connection and a new TV product in addition to software updates for each device announced, he contended. The analyst reiterated an Outperform rating and $180 price target on the shares.

OLED IPHONE AVAILABLE IN OCTOBER

In a research note of his own, #JPMorgan analyst Rod #Hall told investors he currently expects the OLED based iPhone X to become available in October as Apple begins volume production in September. The specific week of October that the device begins shipping will have a few million units of impact on the December earnings forecasts, Hall noted, adding that the risk to earnings estimates is relatively small heading into the event.

The analyst pointed out that he estimates the 256GB version will cost $1,100, while the LCD models’ pricing should be similar to the iPhone 7 models. The analyst also believes that the most important thing Apple is likely to say about the Apple TV financially relates to the content available on the device, as he is expecting Amazon (AMZN) Prime Video to finally become available.

While the Apple Watch update that has been reported including LTE should be a small incremental positive, it is unlikely to move numbers, he added. Hall reiterated an Overweight rating on Apple’s shares.

SUPPLIERS TO WATCH

Here’s a look at five Apple iPhone chipmakers that should benefit from launch of iPhone X: Skyworks Solutions (SWKS), Texas Instruments (TXN), Analog Devices (ADI), Qorvo (QRVO) and Broadcom (AVGO).

PRICE ACTION

In Tuesday’s trading, shares of Apple have gained about 2% to trade near $161.50. Year-to-date, Apple shares have risen nearly 40%


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Short Squeeze in Teva following CEO Announcement

Teva rallies after finding experienced CEO

Teva rallies after finding experienced CEO. See Stockwinners.com for details

Shares of Teva Pharmaceutical (TEVA) surged in morning trading after naming a permanent chief executive officer, ending a months long search for a new chief. The new CEO brings 30 years of global pharmaceutical and healthcare experience.

CEO APPOINTMENT

Teva this morning said that it has named named Kare Schultz to be its new president and CEO. Schultz will relocate to Israel and will be based out of the company’s headquarters in Petach Tikva, the company stated.

He will succeed Yitzhak Peterburg, who has been serving as interim CEO since Erez Vigodman stepped down in February.

Schultz joins Teva from H. Lundbeck (HLUYY), where he has served as president and CEO since 2015. Prior to joining Lundbeck, Schultz worked for nearly three decades at Novo Nordisk (NVO), where he once served as the company’s chief operations officer.

Sol Barer, Teva’s chairman, told the Wall Street Journal that the company searched for months for a CEO to “make sure we got the right person,” adding that “this is a critical time in Teva’s history.”

WHAT’S NOTABLE

In July, rumors had swirled that Teva would name AstraZeneca (AZN) CEO Pascal Soriot as its new CEO.

According to a Calcalist report at the time, Soriot met with Teva’s chairman and search committee and “expressed his agreement” to serve as the next CEO. Soriot later told Bloomberg that he plans on staying at AstraZeneca “for the foreseeable future.”

In addition to Vigodman’s departure in February, Teva CFO Eyal Desheh left the company at the end of June, being replaced on an interim basis by Michael McClellan.

In August, shares of Teva dropped after the company cut its full year outlook and its dividend, citing the impact of increased price erosion in its U.S. Generics business.

DEBT BURDEN

Teva, which is looking to pay down more than $5B of debt this year, is looking for “a series of partners,” a spokeswoman confirmed to Reuters last month, adding that its intent is “not to fund the whole pipeline, just some projects in it. A small part of it.

” The drugmaker is also pursuing the sale of certain non-core assets to extract synergies related to the Actavis Generics transaction, Peterburg has said.

Looking ahead, new CEO Schultz is likely to face pressure from investors to split the company into two businesses.

NEW CEO A “POSITIVE CATALYST”

This morning, BTIG analyst Timothy Chiang upgraded Teva to Buy from Neutral, calling the CEO appointment a “positive catalyst that should help create a floor for the shares and provide a boost to near-term investor sentiment.” #Chiang is upbeat on Teva’s decision to hire “an experienced pharmaceutical executive” as its new chief and is bullish on fremanezumab, Teva’s migraine treatment.

Raymond James analyst Elliot Wilbur said Teva strength today likely reflects the company landing a name brand CEO in Kare Schultz. The analyst said Schultz’s arrival likely marks a short-term bottom in shares, but does not change the need for bold strategic action and heavy investment spend in order to resurrect top line growth in the face of generic headwinds. #Wilbur said financial flexibility remains limited and much remains to be seen in terms of how the company will be reshaped, and doesn’t see favorable risk/reward scenarios even at current depressed levels. Wilbur rates Teva a Market Perform.

SHORT RATIO

The short ratio, short interest ratio (SIR) or float short for a public company is the ratio of tradable shares being shorted to shares in the market, or the float. It is an indirect metric of investor sentiment. When short interest is high, above 40%, it implies company investors hope shares will decline in value.

According to the latest data, 41.9 million shares of TEVA have been shorted as of August 15th. The stock has a 26 million daily average trading volume of 26 million,giving it a short ratio of 1.62.

A short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock. Short squeezes result when short sellers cover their positions on a stock, resulting in buying volume that drives the stock price up.

PRICE ACTION

Teva is up nearly 16% in Monday’s trading to $17.89. Year-to-date, however, shares are down about 52%.


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Integra LifeSciences Sold for $47M

Natus Medical to acquire Integra LifeSciences for $47M in cash 

Natus Medical to acquire Integra LifeSciences for $47M in cash. See Stockwinners.com for details

Natus Medical (BABY) announced that it has entered into a definitive agreement with Integra LifeSciences (IART) under which Natus will acquire certain neurosurgery business assets from Integra LifeSciences in an all cash transaction for $47.5M.

With current annual revenue of approximately $50M, the acquisition marks Natus’ entry into the $2B global neurosurgery market.

The divestiture by Integra is contingent on the consummation of Integra’s proposed acquisition of Codman Neurosurgery.

As part of the transaction, Natus will acquire the global Camino ICP monitoring product line, including its San Diego manufacturing facility, from Integra.

The sale also includes the U.S. rights relating to Integra’s fixed pressure shunts, as well as U.S. rights to Codman’s DURAFORM dural graft implant, standard EVD catheters and CSF collection systems.

Integra is divesting these assets in connection with the review by the Federal Trade Commission of Integra’s proposed acquisition of Johnson & Johnson’s Codman Neurosurgery assets. Both the divestiture and the pending acquisition of Codman Neurosurgery remain subject to final regulatory approvals and satisfaction of other customary closing conditions.

Both transactions are expected to close in October 2017 after securing regulatory clearance. Natus will use cash on hand and available from its credit facility to fund the acquisition.


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Richmont Mines Sold for $770 Million

Alamos Gold to acquire Richmont Mines in deal with equity value of $770M

Alamos Gold to acquire Richmont Mines in deal with equity value of $770M. See Stockwinners.com for details

Alamos Gold (AGI) and Richmont Mines (RIC) are announced that they have entered into a definitive agreement whereby Alamos will acquire all of the issued and outstanding shares of Richmont pursuant to a plan of arrangement, further enhancing Alamos’ position as a leading intermediate gold producer.

Under the terms of the Agreement, all of the Richmont issued and outstanding common shares will be exchanged on the basis of 1.385 Alamos common shares for each Richmont common share.

The Exchange Ratio implies consideration of C$14.20 per Richmont common share, based on the closing price of Alamos common shares on the Toronto Stock Exchange on September 8.

This represents a 22% premium to Richmont’s closing price and a 32% premium based on both companies’ 20-day volume-weighted average prices, both as at September 8 on the TSX.

This implies a total equity value of approximately $770M on a fully diluted in-the-money basis and an enterprise value of $683M.

Upon completion of the Transaction, existing Alamos and Richmont shareholders will own approximately 77% and 23% of the pro forma company, respectively.

Concurrent with the announcement of the Transaction, Richmont announced the sale of the Beaufor Mine, the Camflo Mill and the Wasamac development project located in Quebec. Further details regarding the sale of the Quebec Assets can be found in the Richmont press release dated September 11.

The sale of the Quebec Assets is the culmination of a strategic review process that Richmont publicly disclosed in Q1. The sale is expected to close on, or about, September 29 and is not a condition to the Transaction.

The Agreement has been unanimously approved by the boards of Alamos and Richmont, and each board recommends that their respective shareholders vote in favor of the Transaction.


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