Stockwinners Market Radar for October 21, 2017 - Earnings, Upgrades downgrades, option trades, Best Stock Advisory Service |
WAC | Hot Stocks10:24 EDT Walter Investment reaches agreement on financial restructuring - Walter Investment has announced that it has entered into a Restructuring Support Agreement with certain holders of more than 50% by principal amount of the company's 7.875% Senior Notes due 2021 that contemplates a financial restructuring which, if consummated, is expected to strengthen the company's balance sheet. The company also announced that it has entered into an Amended and Restated Restructuring Support Agreement with certain lenders holding term loans under the company's Amended and Restated Credit Agreement, dated as of December 19, 2013, in an amount more than 48% of the outstanding Term Loans. The RSAs will become effective once holders of 662/3% in the aggregate of Senior Notes and Term Loans, respectively, become party to the applicable RSA. The parties may terminate the RSAs if the Support Effective Date does not occur before October 25, 2017. Through consummation of the transactions contemplated in the RSAs, the company expects to reduce its outstanding corporate debt as of June 30, 2017 by approximately $700M and enhance its financial flexibility as it continues the ongoing transformation of its business. In addition to the recoveries to the company's Lenders and Noteholders, as described below, the RSAs also contemplate a recovery for the holders of the company's 4.50% convertible senior subordinated notes due 2019 and the company's existing common stockholders if the requisite number of Convertible Noteholders support the restructuring. The company plans to implement the terms of the RSAs by soliciting votes from the Lenders, the Noteholders, and the Convertible Noteholders on a pre-packaged chapter 11 plan of reorganization. Following the solicitation, which is intended to begin next month, the company intends to voluntarily file a pre-packaged plan of reorganization under chapter 11 of the U.S. Bankruptcy Code in late November 2017, to execute the various transactions contemplated by the RSAs. Walter intends to complete the reorganization process on an expedited basis, potentially concluding by the end of 2017 and under all circumstances not later than January 31, 2018. Under the contemplated plan for reorganization agreed to in the RSAs, it is intended that only the holding company will file for reorganization under chapter 11. Walter's operating entities are expected to remain out of chapter 11 and continue their operations in the ordinary course throughout the consummation of the financial restructuring transactions.
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TMST | Hot Stocks10:18 EDT Tentative agreement between TimkenSteel, United Steelworkers voted down - TimkenSteel employees who are members of the United Steelworkers Local 1123 have failed to ratify a tentative agreement between their bargaining representatives and the company. The tentative agreement offered TimkenSteel's Canton-based bargaining employees annual increases to base wages, competitive healthcare and retirement benefits for all members, as well as a continued focus on operating safety and employee well-being.
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AGEN GSK | Hot Stocks10:15 EDT FDA approves GlaxoSmithKline shingles vaccine with Agenus QS-21 Stimulon - Agenus (AGEN) has announced that the Food and Drug Administration granted marketing authorization to GlaxoSmithKline's (GSK) herpes zoster vaccine, SHINGRIX, containing Agenus' proprietary immune adjuvant QS-21 Stimulon. SHINGRIX is indicated for prevention of herpes zoster - also known as shingles - in adults aged 50 years and older. The addition of QS-21 Stimulon helps improve the vaccine's effectiveness by boosting immune response in older adults who often experience age-related decline in immunity. The FDA approval of SHINGRIX was based on data pooled from two pivotal Phase III clinical trials in more than 37,000 people, which demonstrated an efficacy rate against shingles greater than 90% independent of age, as well as a sustained efficacy over the four-year follow-up period. SHINGRIX also reduced the overall incidence of postherpetic neuralgia, the most common and oftentimes debilitating chronic nerve pain associated with shingles. The most common side effects reported in clinical trials of SHINGRIX were pain, redness and swelling at the injection site, the majority of which were transient and mild to moderate in intensity, lasting less than three days. The addition of QS-21 Stimulon is being studied to determine its potential to help a diverse range of vaccines work more effectively to treat or cure difficult-to-treat diseases, like cancer. QS-21 Stimulon is currently being used in combination with Agenus' neoantigen vaccine, AutoSynVax, now in a Phase 1 clinical trial in cancer. QS-21 Stimulon is also currently being evaluated in numerous GlaxoSmithKline vaccine development candidates for both therapeutic and prophylactic applications.
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CNC... | Hot Stocks09:24 EDT Week in review: How Trump's policies moved stocks - Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly: 1. COST SHARING SUBSIDIES: On Monday, Leerink analyst Ana Gupte told investors that she sees the Healthcare Facilities and Centene (CNC) most structurally impacted to the downside in 2019 and beyond at 15% of earnings, if there is no legislative or other budgetary compromise to restore the Cost Sharing Subsidies after President Trump's executive action to stop funding them. The analyst also noted that Healthcare Facilities also face a structural headwind in 2019 and beyond with Exchanges contributing 1%-5% of EBITDA. In the near-term in 2017, Gupte says Molina Healthcare (MOH) faces transient balance sheet pressure with the fourth quarter unfunding placing pressure of $135M and wiping excess parent cash possibly necessitating an equity raise, while other HIX plans Anthem (ANTM), Centene and Cigna (CI) can offset with their excess capitalization at the subsidiaries and at the parent. 2. HEALTHCARE DEAL: Republican Senator Lamar Alexander said on Tuesday that he and Democratic Senator Patty Murray have reached a bipartisan deal to extend key Obamacare payments to insurers for two years, according to The Hill. President Trump had announced last week he was cutting off the payments, the report noted. The day after, President Donald Trump tweeted: "I am supportive of Lamar as a person & also of the process, but I can never support bailing out ins co's who have made a fortune w/ O'Care." His tweet is an apparent reference to reports regarding the bipartisan deal to extend key Affordable Care Act payments to insurers for two years. Publicly traded healthcare insurance companies include Aetna (AET), Anthem, Centene, Cigna, Health Net (HNT), Humana (HUM), Molina Healthcare, UnitedHealth (UNH) and WellCare (WCG). Publicly traded hospital operators include Community Health (CYH), HCA Healthcare (HCA), LifePoint (LPNT), Tenet (THC) and Universal Health (UHS). 3. TAX REFORM: Late Thursday night and by a vote of 51-49, Senate Republicans passed a fiscal 2018 budget, with every single Democrat voting against it. The budget is not a legally binding document, but serves as an outline of federal spending and revenues, according to ABC News. The measure should add an estimated $1.5T to the deficit over the next 10 years, contains about $5.1T in spending cuts, and is now headed to the House for approval. Further, the budget framework sets up rules that allow for a reconciliation process, under which the bill only needs a simple majority of 51 votes to clear the Senate chamber, and with Democrats not allowed to filibuster on the floor. 4. IMMIGRATION: According to a report by Reuters on Friday, about two dozen major companies are planning to launch The Coalition for the American Dream to urge Congress to pass bipartisan legislation to enable young, illegal immigrants to continue working in the U.S. The move, by companies including Alphabet's Google (GOOG, GOOGL), Microsoft (MSFT), Facebook (FB), Intel (INTC), Uber, IBM (IBM), Marriott International (MAR) and Univision, follows President Trump's decision to let the Deferred Action Childhood Arrivals program expire in March.
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DBVT AIMT | Hot Stocks07:58 EDT DBV believes FDA suggested continue moving forward with Viaskin - DBV Technologies (DBVT) said on last night's conference call that it spoke with the FDA over the last 24 hours regarding its Phase III Viaskin Peanut data. The company believes the FDA suggested to continue with a pathway forward. DBV added that its "confident" it has a way forward with an application for approval. The company noted that the Realise trial safety data, to be announced in November, will make up the bulk of filing package. DBV Technologies in a press release last night said its Phase III trial evaluating the safety and efficacy of Viaskin Peanut in peanut allergic children four to 11 years of age, while showing a statistically significant response with a favorable tolerability profile, did not reach the 15% lower bound of the confidence interval that was proposed in the study's Statistical Analysis Plan submitted to the FDA. Shares of DBV plummeted 53% to $22.75 in after-hours trading. Aimmune Therapeutics (AIMT), also in Phase III with a treatment for peanut allergy, soared 56%, or $14.24, to $39.90.
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