Watch shares of ShockWave Medical

ShockWave Medical initiates study of coronary intravascular lithotripsy in Japan

Shockwave Medical (SWAV) announced that the company has initiated the DISRUPT CAD IV study of IVL in heavily calcified coronary arteries that is intended to support regulatory device approval in Japan.

Shockwave begins heart study in Japan, Stockwinners

The first CAD IV patient was enrolled earlier this week by the principal investigator of the study, Shigeru Saito, M.D., Director of Cardiology and Catheterization Laboratories and Vice President, Shonan Kamakura General Hospital.

DISRUPT CAD IV is a prospective, multicenter, single-arm study to demonstrate the safety and effectiveness of the Shockwave Coronary IVL System with the Shockwave C2 IVL Catheter in the treatment of de novo, calcified, stenotic, coronary arteries prior to stenting.

The study is expected to enroll up to 64 patients at 8 sites in Japan. Similar to the DISRUPT CAD III Study protocol, CAD IV will assess the absence of major adverse cardiac events within 30 days of the index procedure as the primary safety endpoint.

Shock Wave system, Stockwinners

The primary effectiveness endpoint is procedural success, defined as stent delivery with a residual stenosis less than 50 percent, and without in-hospital MACE.

Study enrollment is expected to be completed by June 2020, from which enrolled patients will be followed for two years. Coronary artery calcium physically impairs stent expansion and is perhaps the single most important predictor of early stent thrombosis and restenosis after stent procedures.ii, iii, iv Coronary IVL is a therapy designed to treat calcified artery blockages with sonic pressure waves historically used to treat patients with kidney stones.

The technology seeks to minimize trauma within the artery by delivering pulsatile sonic pressure waves locally to fracture both intimal and medial calcium in the artery wall but pass through surrounding soft vascular tissue in a safe manner.

Shockwave C2 Coronary IVL catheters are commercially available for the treatment of de novo coronary artery disease in Europe and other select countries; in Japan they are limited to investigational use within the DISRUPT CAD IV Study. In the United States they are limited to investigational use within the DISRUPT CAD III Study.

SWAV closed at $34.83.

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Liberty Property Trust sold for about $61 per share

Prologis to acquire Liberty Property for $12.6B

Prologis (PLD) and Liberty Property Trust (LPT) announced that the two companies have entered into a definitive merger agreement by which Prologis will acquire Liberty in an all-stock transaction, valued at approximately $12.6B, including the assumption of debt.

Prologis buys Liberty Property Trust, Stockwinners

The board of Prologis and the board of trustees of Liberty have each unanimously approved the transaction.

Warehouses and logistics facilities — Liberty’s specialty — have become a hot part of the real estate market as more shopping moves online and demand for the space increases. 

The acquisition gives Prologis a portfolio of 107 million square feet of logistics properties that’s owned or managed, as well as buildings under construction and land for future development. It also includes 4.9 million square feet of office space.

Prologis plans to dispose of approximately $3.5B of assets on a pro rata share basis. This includes $2.8B of non-strategic logistics properties and $700M of office properties.

This transaction is anticipated to create immediate cost synergies of approximately $120M from corporate general and administrative cost savings, operating leverage, lower interest expense and lease adjustments.

Initially, this transaction is expected to increase annual core funds from operations per share by 10c-12c. Upon stabilization of the acquired development assets, completion of the planned non-strategic asset sales and redeployment of the related proceeds, annual stabilized core FFO per share is forecasted to increase by an additional 4c per share for a total of 14c-16c.

Liberty holds mostly class A properties, Stockwinners

Further, there are future synergies with the potential to generate approximately $60M in annual savings, including $10M from revenue synergies and $50M from incremental development value creation.

“Liberty’s logistics assets are highly complementary to our U.S. portfolio, and this acquisition increases our holdings and growth potential in several key markets,” Prologis Chairman and Chief Executive Hamid R. Moghadam said in the statement.

Under the terms of the agreement, Liberty shareholders will receive 0.675x of a Prologis share for each Liberty share they own.

The transaction, which is currently expected to close in Q1 of 2020, is subject to the approval of Liberty shareholders and other customary closing conditions.

Liberty shares have risen 21% this year, compared with the 55% jump in Prologis shares. 

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Talk of Google PhotoBook sends shares of ShutterFly lower

sflyShares of #Shutterfly $SFLY fell Tuesday following a report that #Alphabet $GOOG plans to launch an AI-powered photo book service, potentially stepping into competition with the image publishing company.

GOOGLE COMPETITION: Bloomberg reported early Tuesday that, at its developer conference this week, Google plans to announce an AI-powered upgrade for its Photos app, allowing users to design and order physical coffee table photo books. The company plans to offer the photo books in several types of materials, including an option costing $10 per book, a source told #Bloomberg.

WHAT’S NOTABLE: Today’s report follows the introduction of #Amazon’s $AMZN photo printing service in September 2016, an event which saw Shutterfly stock fall over 12% in a day. At the time, Baird analyst Colin Sebastian reassured investors that Shutterfly’s strong brand loyalty “provides some competitive insulation” and that the quick selloff in Shutterfly was an “overreaction.” RBC Capital and Cantor echoed that sentiment in the following days, recommending investors buy that dip in Shutterfly.

PRICE ACTION: Shares of Shutterfly are down 4.2% to $49.66 in late Tuesday trading.

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Facebook Sanctioned by France

facebookFrance’s National Commission on Informatics and Liberty #CNIL says in a statement, “Following FACEBOOK statement regarding the amendment of its privacy policy in 2015, the CNIL performed on site and online inspections, as well as a documentary audit, in order to verify that #FACEBOOK $FB was acting in compliance with the French Data Protection Act.

These actions are part of a European approach which involves five data protection authorities having also decided to carry out investigations — France, Belgium, the Netherlands, Spain and Hamburg — on FACEBOOK.

The investigations conducted by the CNIL have revealed several failures. In particular it has been observed that FACEBOOK proceeded to a massive compilation of personal data of Internet users in order to display targeted advertising. It has also been noticed that FACEBOOK collected data on browsing activity of internet users on third-party websites, via the “datr” cookie, without their knowledge…

As a result the Restricted Committee has decided to pronounce a public sanction of 150,000 euros against FACEBOOK INC and FACEBOOK IRELAND. Considering the significant number of users in France, the seriousness and the numbers of infringements, the publicity and amount and of this sanction are justified. The decision of the Restricted Committee follows the work carried out with the data protection authorities of Belgium, Hamburg, Spain and the Netherlands in a collaborative manner.”

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Yahoo to buyback $3 billion of its own shares

yahoo #Yahoo! $YHOO announced the commencement of a modified “Dutch auction” self-tender offer to purchase for cash up to $3B of shares of its common stock at prices equal to the A) “Alibaba #VWAP”, multiplied by (B) multiples specified by tendering stockholders not greater than 0.420 nor less than 0.370, provided that in no event will the purchase price be less than $37.00 per share, less applicable withholding taxes and without interest.

The terms and conditions of the tender offer are set forth in an Offer to Purchase, Letter of Transmittal and related documentation that are being distributed to holders of the company’s shares and are being filed with the U.S. SEC. The tender offer will expire on June 13, 2017 at 11:59 p.m., New York City time, unless the tender offer is extended or withdrawn by the company.

Tenders of shares must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer, in each case in accordance with the procedures described in the tender offer materials that are being distributed to stockholders.

The “Alibaba VWAP” means the daily volume-weighted average price for an American Depositary Share of #Alibaba Group $BABA on the New York Stock Exchange, on the second trading day prior to the expiration date; provided, that in no event shall the Alibaba VWAP be less than $100.00 for the purpose of computing the purchase price.

The purpose of the tender offer is to provide liquidity to a potentially significant number of stockholders that will be forced to sell their shares at or prior to the closing of the pending sale of Yahoo’s operating business to #Verizon $VZ as a result of the fact that, upon completion of the Sale Transaction, the company will be required to register as a closed-end investment company under the Investment Company of 1940 and its shares are expected to be removed from the Standard and Poor’s 500 Composite Index and other indices.

The tender offer also enables the company to potentially return a significant amount of cash to its stockholders by repurchasing shares. The company believes that the tender offer provides a mechanism for completing a sizable repurchase of its shares more rapidly than would be possible through open market purchases.

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Target to Focus on High Margin Products

target #Target $TGT appears to be taking a “less is more” strategy with ecommerce, choosing to revamp some online projects, cut relationships with digital partners, and walk away from prospective acquisitions, the Wall Street Journal reported earlier, citing sources.

“We’re not trying to be the catalog of everything. We aren’t going to add products to our website and stores just because they exist,” Target digital head Mike McNamara commented, according to the report.

Under McNamara, the company is pursuing select online projects, and is working on a curbside-pickup service, a source said. The Journal noted that Target stayed on the sidelines when #Wal-Mart $WMT acquired #Jet.com last year, considering the deal overpriced and a poor fit with Target chief Brian Cornell’s emphasis on high-margin product categories, according to sources.

Additionally, the report noted that Target was in advanced discussions last summer to potentially acquire #Sprouts Farmers Market $SFM but ultimately walked away, according to sources. More recently, Target explored acquiring an ecommerce name, including #Boxed.com, though those talks didn’t lead anywhere, sources told the Journal.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Coherus Biosciences Could Skyrocket

COHERUS BIOSCIENCES LOGOCoherus Biosciences $CHRS could skyrocket in the next few weeks if it receives FDA’s approval, research firms Credit Suisse and Maxim argue.

BACKGROUND: Coherus Biosciences is a developer of #biosimilars — nearly identical copies of original biologic drugs — whose product pipeline includes #CHS-1701, a biosimilar of Amgen’s $AMGN #Neulasta, and CHS-1420, a biosimilar of #AbbVie’s $ABBV #Humira.

The FDA has set an action date of June 9 for its review of CHS-1701, and while CHS-1420 is further out, #Coherus said in its earnings report last week that it expects a May 17 decision in part of its patent battle with AbbVie.

CREDIT SUISSE SAYS COHERUS COULD DOUBLE OR MORE: Last week, Credit Suisse’s Alethia Young highlighted two “major” catalysts for Coherus over the next two months: The possible invalidation of AbbVie’s “135” patent for Humira — which Young calls the “key dosing patent” that would allow Coherus to launch CHS-1420 before 2022 — and the FDA’s decision on CHS-1701. The analyst thinks the “bigger mover” is the 1701 event and she expects “on-time approval” of the product on June 9, though Young cautions that the lack of an Advisory Committee meeting “lowers the visibility” into the agency’s ultimate decision. The analyst reiterates her Outperform rating on the stock and says it could jump 110%-200% or fall 40%-65% as the above mentioned events play out over the next month. Young’s report builds on an April 19 note in which she forecast a 90% chance of CHS-1701 launching in 2018 and a 75% chance of CHS-1420 launching in the U.S. in 2020, adding that Coherus becomes a likely takeover target if those regulatory and patent decisions are settled in its favor.

MAXIM SEES TRANSFORMATIVE DECISIONS: Maxim’s Jason McCarthy argues today that “the best is ahead” as Coherus approaches the inflection points for 1420 and 1701, either of which he says could be “transformative” for the company. The analyst argues that Amgen’s recent lawsuit to protect a Neulasta patent has a low probability of delaying 1701 commercialization, as Coherus doesn’t use the purification process described by that “707” patent. McCarthy also contends that the AbbVie 135 patent fight chances are “in favor of Coherus” due to the latter’s strong focus on intellectual property.

PRICE ACTION: After gaining nearly 11% since its May 8 earnings report, Coherus is down 2% to $21.90 in Monday’s session.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Ransomware Fears Send Security Stocks Higher

ransomRansomware is a type of malicious software that carries out the extortion attack from cryptovirology that blocks access to data until a ransom is paid and displays a message requesting payment to unlock it. Simple ransomware may lock the system in a way which is not difficult for a knowledgeable person to reverse. More advanced malware encrypts the victim’s files, making them inaccessible, and demands a ransom payment to decrypt them. A total of 150 countries have been affected in the past 72 hours.

Oppenheimer notes that according to media reports, a global ransomware attack was launched and infected up to 200,000 computers in at least 150 countries on Friday.

The analyst believes the “biggest ransomware outbreak ever” could serve as a wake-up call for many organizations and countries delaying a review of their cybersecurity hygiene.

In that regard, the analyst believes all cybersecurity vendors under his coverage, namely #Check Point $CHKP , CyberArk $CYBR , Fortinet $FTNT , Imperva  $IMPV , Mimecast $MIME , Palo Alto Networks $PANW , #Splunk $SPLK , #Symantec $SYMC , #Verint $VRNT , but most notably #FireEye $FEYE , are poised for increased demand, particularly in the Europe, Mideast and Africa region where the attacks were largely focused.

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Rig Count Rise Weighs on Crude Oil

oil_rig#BakerHughes $BHI reports that the U.S. rig count is up 8 rigs from last week to 885, with oil rigs up 9 to 712, gas rigs down 1 to 172, and miscellaneous rigs unchanged at 1.

The U.S. Rig Count is up 479 rigs from last year’s count of 406, with oil rigs up 394, gas rigs up 85, and miscellaneous rigs unchanged.

The U.S. Offshore Rig Count is up 2 rigs from last week to 21 and down 1 rig year over year.

The Canadian Rig Count is down 2 rigs from last week to 80, with oil rigs up 2 to 29 and gas rigs down 4 to 51. The Canadian Rig Count is up 37 rigs from last year’s count of 43, with oil rigs up 13, gas rigs up 25, and miscellaneous rigs down 1 to 0.

On the news, Crude oil prices (WTI) dropped to $47.35 per barrel before rebounding to its current price of $47.35 per barrel.

#WTI – West Texas Intermediate

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Retail Sales Rebound in April

retailsalesU.S. #retail sales rose in April, slightly beat estimates with a 0.4% April bounce and a 0.3% ex-auto increase that followed upward revisions versus the last reported March levels and prior levels through February revealed with annual revisions on April 26.

Analysts saw April retail sales boosts from gains of 0.7% for auto dealers, 1.2% for building materials, and 0.2% for gasoline after big upward revisions. Analysts saw a likely March and April sales lift from big tax refund delays from February.

Analysts left Q2 GDP growth estimates at 3.2%, though analysts now expect a 3.7% (was 3.6%) Q2 pace for real consumption. Analysts still expect a Q1 GDP growth boost to 0.9% from 0.7% with no consumption revision from 0.3% growth.

Analysts now assume a 0.6% (was 0.5%) April #PCE rise in nominal terms with a 0.4% (was 0.3%) rise in “real” terms, alongside a 0.2% PCE chain price rise that tracks today’s CPI gain.

The savings rate should slip to 5.8% from 5.9% in March.

The business inventory report later this morning will reveal a flat March sales figure after a 0.2% February increase. Today’s retail sales data are consistent with a 0.4% business sales rise in next month’s April report.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Snap just snapped $6 billion from investors

snapSnap, home of the disappearing photo messages, just managed to disappear more than $6 billion from its market capitalization. Shares are down more than 22% in Thursday trading after it reported its quarterly results.

A number of analysts have commented on the company’s results, some upgrading while others are downgrading the stock. In any event, shares are down sharply.

On May 10, #Snap $SNAP reported slower revenue growth and a bigger loss than analysts expected. Its $2.21 billion loss or $2.31 a share was $1.10 higher than the loss expected

That 36% sequential increase in revenue to $149.6 million fell $8.7 million below the consensus and below the 53% growth it enjoyed in the same quarter of 2016. To make matters worse, Snap’s average revenue per user fell 14.3% from the previous quarter to 90 cents on a 36% boost to 166 million daily active users.

#Facebook $FB is eating Snap’s lunch. In April, Facebook’s Instagram said it had “200 million daily users of Instagram Stories, a feature of the photo-sharing app that mimics Snapchat’s popular function,” according to the WSJ.

Users say they prefer the Facebook feature. 25% of respondents in an April survey of 3,000 Americans prefer Stories on one of Facebook’s platforms — 13 percentage points more than those who said they like Snapchat’s Stories better.

Many investors blame the company’s CEO and his lack of maturity as the main reason for the company’s misfiring. Others believe they are paying for the CEO’s education. Even CEO’s conduct in Snap’s May 10 conference call reflects the most frightening issue for investors in its stock. Thanks to the voting control of CEO and CTO who hold nearly 89% of its voting power, investors in its shares have no recourse but to pay the tuition for the CEO’s on the job training.

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Calpine is in-play below $16

CalpineThe Wall Street Journal reported yesterday that #Calpine $CPN , the largest power producer, is exploring a sale.
#Deutsche Bank sees few strategic acquirers for Calpine (CPN), making going private or remaining public the most likely outcomes in the analyst’s view.
Market power issues in #Texas make a combination with Vistra Energy $VST or NRG Energy $NRG unlikely, and while #PSEG $PEG and #Exelon $EXC could afford buying Calpine, such a deal would be a shift in strategy for both.
The analyst finds it unlikely that a go-private deal gets done much north of $16 per share.
The analyst believes, however, that a mid-teens per share takeout is possible “with some creative structuring.”
Even without a deal, Calpine offers value based on its cash flow profile, Deutsche contends. The analyst reiterates a Buy rating on Calpine with a $14 price target.
The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Moody’s Lowers its view of Canadian Banks

canada-banks#Moody’s Investors Service downgraded the #Baseline Credit Assessments (BCA), the long-term ratings and the #Counterparty Risk Assessments  (CRA) of six Canadian banks and their affiliates, reflecting Moody’s expectation of a more challenging operating environment for banks in Canada for the remainder of 2017 and beyond, that could lead to a deterioration in the banks’ asset quality, and increase their sensitivity to external shocks.

The banks affected are: #Toronto-Dominion Bank $TD , Bank of Montreal $BMO , Bank of Nova Scotia $BNS , Canadian Imperial Bank of Commerce $CM , National Bank of Canada $NTIOF , and Royal Bank of Canada $RY .

The BCAs, long-term debt and deposit ratings and CRAs of the banks and their affiliates were downgraded by 1 notch, excepting only Toronto-Dominion Bank’s CRA, which was affirmed.

The short term Prime-1 ratings of the Canadian banks were affirmed.

All relevant ratings for these banks continue to have negative outlooks, reflecting the expected introduction of an operational resolution regime in Canada.

“Today’s downgrade of the Canadian banks reflects our ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future. Continued growth in Canadian consumer debt and elevated housing prices leaves consumers, and Canadian banks, more vulnerable to downside risks facing the Canadian economy than in the past.” said David Beattie, a Moody’s Senior Vice President.

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Boeing 737 Woes drag DJIA Lower

737maxDJIA component #Boeing $BA is lower, dragging the index lower due to issues with its long awaited 737 Max airplane. The company announced the suspension of #737 Max flights due to a manufacturing issue with low-pressure turbine discs.

Engine supplier CFM International, a joint venture between #General Electric $GE and #Safran $SAFRY , notified Boeing of the manufacturing issue, Boeing said in a statement.

The 737 Max remains in testing and is yet to commence commercial flights.

Shares of plane suppliers #Spirit AeroSystems $SPR , #Textron $TXT , #United Technologies $UTX and #Rockwell Collins $COL followed Boeing lower on the news. Boeing in afternoon trading is down $2.59 to $182.90. DJIA is down 54 units while GE is down 1% to $28.67.

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