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Concordia up 18% after raising $520M in offering

September 30th, 2015 No comments

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Shares of Concordia Healthcare peaked 18% Wednesday after it released some-more shares to assistance account a new merger and compensate behind a little debt.

The Canadian curative company, formed in Oakville, Ontario, lifted $520 million Wednesday by arising 8 million usual shares, or $65 per share.

Earlier this month, Concordia concluded to take London-based Amdipharm Mercury for $3.5 billion, a understanding which is approaching to tighten by the finish of the year. Concordia additionally skeleton to account the merger by loans and debt securities.

Shares rose $6.49 to finish the day at $42.56.

The equity charity was underwritten by Goldman Sachs, RBC Capital Markets, Credit Suisse Securities, Jefferies and others. The association charity the underwriters an choice to buy up to an one more 1.2 million shares at the charity cost at a after date.

Concordia additionally pronounced it has perceived a little underwriters’ joining for one more financing to assistance compensate for the Amdipharm merger and refinance superb loans.

Is Carl Icahn a hypocrite?

September 30th, 2015 No comments

GTY LAZARDS MERCHANT BANK ISSUES REPORT ON TIME WARNER A FIN USA NYIt didn’t take prolonged for critics to attack billionaire Carl Icahn’s 15-minute video notice of “danger ahead” for the U.S. economy.

Fellow sidestep account physical education instructor Doug Kass of Seabreeze Partners Management dubbed the video “Icahn’s fifteen Minutes of Lame” in an email blast that also called the Icahn Enterprises founder’s ideas hypocritical.

“I think his recommendations have been filled with hypocrisy,” Kass pronounced in the email, citing Icahn’s criticisms of stock buybacks and alternative forms of “financial engineering” to progress corporate gain and batch prices.

Indeed, prior to gaining prominence as Donald Trump’s collect for secretary of the Treasury, Icahn was important for shopping shares of undervalued companies and afterwards publicly goading them to shift their ways. Recently, this involved publicly advocating for Apple Inc. to progress the large batch buyback module by a whopping $50 billion at one point.

Buybacks expostulate up the value of a batch by limiting the supply.

Of course, Icahn done it clear in his video which he’s thinks Apple is clever sufficient to means large buybacks, whilst alternative companies have been not. He pronounced his warning is destined at companies which have been borrowing some-more than they should to afford their batch repurchases.

In an talk with USA TODAY which preceded Kass’ critique, Icahn declined to contend which companies he thinks have been receiving on as well most debt, simply observant which a association similar to Apple have been clever sufficient to do buybacks because the company sells at 9 times earnings.

To be sure, Icahn stands to good from a small of his recommendations, generally his call for lawmakers to reduce taxes for corporations.

Icahn asked policymakers to concede U.S. companies to move behind an estimated $2 trillion in income stashed abroad by obscure taxes they would differently be charged on which money. He makes the box which this money would assistance kindle the U.S. manage to buy and emanate jobs at home.

“Who have been they punishing? They’re punishing the small man again because if which income came back, it would emanate jobs,” Icahn said, referring to the nation’s legislators.

Experts contend there have been dual ways to do this: 1.) obscure corporate taxes altogether and 2.) charity companies a taxation holiday, or a singular window of 0 to low taxes to move income overseas. (Again, Icahn declined to be specific about what approach lawmakers should take.)

Unfortunately, past tax holidays have been shown to good investors some-more than workers by pardon up income for batch buybacks instead of jobs. Indeed, most companies which benefited from the 2004 taxation legal legal legal holiday reacted by laying workers off, research shows. A tax legal legal legal holiday could good still Icahn, however, since it would allow Apple — one of his largest investments — to progress the batch buyback module but the combined price of borrowing.

It’s additionally value observant which notwithstanding being a hedge account manager, Icahn wouldn’t be adversely influenced by his offer to raise taxes for sidestep account managers and alternative veteran investors.

To improved assimilate Icahn’s taxation proposals, review USA TODAY’s story here: Carl Icahn is right on taxes, experts say. 

To sense some-more about the video, review USA TODAY’s story here: Carl Icahn warns of ‘danger ahead’ for U.S. economy. 

 

Categories: Financial, General Tags: , ,

Is Carl Icahn a hypocrite?

September 30th, 2015 No comments

GTY LAZARDS MERCHANT BANK ISSUES REPORT ON TIME WARNER A FIN USA NYIt didn’t take prolonged for critics to explosion billionaire Carl Icahn’s 15-minute video notice of “danger ahead” for the U.S. economy.

Fellow sidestep account physical education instructor Doug Kass of Seabreeze Partners Management dubbed the video “Icahn’s fifteen Minutes of Lame” in an email blast that also called the Icahn Enterprises founder’s ideas hypocritical.

“I think his recommendations have been filled with hypocrisy,” Kass pronounced in the email, citing Icahn’s criticisms of stock buybacks and alternative forms of “financial engineering” to progress corporate gain and batch prices.

Indeed, prior to gaining prominence as Donald Trump’s collect for secretary of the Treasury, Icahn was important for shopping shares of undervalued companies and afterwards publicly goading them to shift their ways. Recently, this involved publicly advocating for Apple Inc. to progress the large batch buyback module by a whopping $50 billion at one point.

Stock buybacks expostulate up the value of the stock by limiting the supply.

Of course, Icahn done it clear in his video which he’s thinks Apple is clever sufficient to means large buybacks, whilst alternative companies have been not. He pronounced his warning is destined at companies which have been borrowing some-more than they should to afford the stock repurchases.

In an talk with USA TODAY which proceeded Kass’ critique, Icahn declined to contend which companies he thinks have been receiving on as well most debt, simply observant which a association similar to Apple should do buybacks because the company sells at 9 times earnings.

To be sure, Icahn stands to good from a small of his recommendations, generally his call for lawmakers to reduce taxes for corporations.

Icahn asked policymakers to concede U.S. companies to move behind an estimated $2 trillion in income stashed abroad by obscure taxes they would differently be charged on which money. He makes the box which this money would assistance kindle the U.S. manage to buy and emanate jobs at home.

“Who have been they punishing? They’re punishing the small man again because if which income came back, it would emanate jobs,” Icahn said, referring to the nation’s legislators.

But past tax holidays may have benefited investors some-more than workers by pardon up income for batch buybacks, studies have shown. Assuming the same direction were to start this time around, Icahn would see Apple — one of his largest investments — boost the batch buyback module even some-more and at reduce cost because it would not have to steal income to do it. It would have which money, potentially tax-free, inside of strech from the abroad income stash.

It’s additionally value observant which notwithstanding being a hedge account manager, Icahn wouldn’t be adversely influenced by his offer to raise taxes for sidestep account managers and alternative veteran investors.

To improved assimilate Icahn’s taxation proposals, review USA TODAY’s story here: Carl Icahn is right on taxes, experts say. 

To sense some-more about the video, review USA TODAY’s story here: Carl Icahn warns of ‘danger ahead’ for U.S. economy. 

 

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Costco gains on profit results

September 30th, 2015 No comments
In this Nov. 12, 2014 record photo, Linda Bultema leaves the Costco store in Kalamazoo, Mich. Costco on Monday, Mar 2, 2015 pronounced it struck a understanding for Citi to be the disdainful issuer of the co-branded credit cards, with Visa replacing American Express as the label network.

In this Nov. 12, 2014 record photo, Linda Bultema leaves the Costco store in Kalamazoo, Mich. Costco on Monday, Mar 2, 2015 pronounced it struck a understanding for Citi to be the disdainful issuer of the co-branded credit cards, with Visa replacing American Express as the label network.

Shares of room seller Costco (COST) gained Wednesday after the association reported better-than-expected quarterly profit.

The tradesman warranted an practiced distinction of $1.66 a share, violence expectations by 4%. Profits were 9% aloft contra a year ago. Revenue of $35 billion was down somewhat and longed for views by 4.2%.

Shares of Costco have been up 38 cents, or 0.3%, to $144.28.

Follow Matt Krantz on Twitter @mattkrantz

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Cumulus Media rises 7% as new CEO is named

September 30th, 2015 No comments

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Shares of Cumulus Media climbed 7% Wednesday after the air wave hire user voiced a new CEO.

The Atlanta-based organisation declared Mary Berner, a edition attention executive, as the new chief, effective Oct. 13, according to a organisation proclamation expelled after the batch marketplace sealed on Tuesday afternoon. She’s informed with the company, carrying sat on its board of directors given May.

She will attain Lew Dickey, who will go on to be concerned with the organisation he founded by staying as a house member and portion as vice chairman.

Shares rose 5 cents Wednesday sunrise to 73 cents.

Berner joins Cumulus from the Association of Magazine Media, where she was CEO of of the repository attention group. Prior to fasten the association, she was the arch senior manager at Reader’s Digest Association and Fairchild Publications.

“Mary is a proven executive, with over thirty years of knowledge in media pushing formula in multi-platform promotion and calm driven businesses,” said Jeffrey Marcus, authority of Cumulus Media’s house and a partner at Crestview Partners, the investment organisation that owns 27% of Cumulus.

Cumulus Media, that operates some-more than 460 stations in 90 markets opposite the U.S., saw the second entertain revenue fall 8.8% from a year ago to $299.3 million. Its quarterly net income fell 18.7% to $12.2 million.

Marcus credited Dickey for flourishing the organisation to turn “the second largest user of air wave stations in the country.” But “maximizing the worth of these resources requires creation them work together effectively and efficiently,” Marcus said.

“At a time when the media landscape continues to bear seismic transformation, Cumulus needs a extended formed media user who can precedence the superb resources,” Marcus said.

Follow USA TODAY media reporter Roger Yu on Twitter @RogerYu_

 

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Futures higher, Asian stock markets rebound

September 30th, 2015 No comments
FILE - In this Sept. 8, 2015, record photo, a Wall Street travel pointer is framed by a hulk American dwindle unresolved on the masquerade of the New York Stock Exchange. European batch markets recovered their intrepidity Tuesday, Sept. 29, 2015, notwithstanding an progressing subjection in Middle East which featured a 4 percent slip in Japanís main index. (AP Photo/Mary Altaffer, File) ORG XMIT: NYBZ183

In this Sept. 8, 2015, record photo, a Wall Street travel pointer is framed by a hulk American dwindle unresolved on the masquerade of the New York Stock Exchange. (AP Photo/Mary Altaffer, File)

U.S. batch futures forked aloft Wednesday as Asian batch markets rebounded, led by gains in Japan.

Here is where vital marketplace index futures stood forward of the begin of unchanging trading:

Dow: +1.1%

S&P 500: +1.2%

Nasdaq:  +1.3%

Japan’s Nikkei 225 index surged 2.7% to tighten at 17,388.15 after investors were buoyed by expectations for some-more mercantile stimulus, whilst Hong Kong’s Hang Seng index gained 1.4%. The Shanghai combination index gained 0.5%.

Tuesday, the Nikkei 225 tumbled 4.1%, withdrawal it in the red for 2015.

Japan’s quarterly Tankan commercial operation certainty consult due Thursday will show how businesses have been feeling about the future, presumably on condition which a trigger for movement from policymakers.

In Europe, Germany’s DAX index rose 2.6%, France’s CAC 40 gained 2.8%, and Britain’s FTSE 100 was 2.4% higher.

Investors have been watchful for jobs interpretation and clues about when the Federal Reserve will lift seductiveness rates. On Thursday, U.S. payroll processor ADP reports how most jobs in isolation employers combined in Sep and Fed Chair Janet Yellen will give opening remarks to a village promissory note conference. Policymakers have pronounced the Fed will expected lift seductiveness rates prior to the finish of the year.

U.S. bonds ended churned Tuesday as Wall Street staged a prejudiced miscarry from Monday’s pointy sell-off which edged the extended U.S. marketplace ever closer to the 2015 lows strike in late August.

Contributing: Associated Press

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Valeant shares fall again on subpoena calls

September 29th, 2015 No comments
File print shows pointer at Valeant Pharmaceutical's domicile in Montreal, Canada in 2014. (AP/The Canadian Press - Ryan Remiorz)

File print shows pointer at Valeant Pharmaceutical’s domicile in Montreal, Canada in 2014. (AP/The Canadian Press – Ryan Remiorz)

What a disproportion calls for congressional subpoenas have done for Valeant Pharmaceuticals International investors.

Shares of the Canada-based drugmaker fell for a second trade event Tuesday, shutting down 5.06% at $158.08.

The decrease deepened the 16.5% thrust in the company’s batch to $166.50 on Monday following headlines which Democrats on the House slip cabinet have been pulling for subpoenas which could force Valeant to spin over papers associated to large cost hikes for dual heart drugs.

The association declined to yield the annals progressing this month to Rep. Elijah Cummings, D.-Md. and Sen. Bernie Sanders, I.-Vt. Valeant instead contended annals relating to the 525% and 212% cost increases imposed the day it acquired rights to the medications were exclusive and confidential.

Cummings, the ranking minority part of on the House Committee on Oversight and Reform, assimilated alternative Democrats on the row Monday in asking cabinet authority Rep. Jason Chaffetz, R-Utah to sanction a subpoena. They additionally asked Chaffetz to call a conference which would embody sworn statement from Valeant CEO Michael Pearson.

There’s been no central movement on the requests.

In the meantime, Valeant’s descending batch cost has been bad headlines — at slightest at the moment — for vital investors such as romantic financier William Ackman’s Pershing Square Capital Management. The New York-based sidestep account binds some-more than nineteen million shares of Valeant, rounded off a 5.64% stake, according to investment investigate organisation Morningstar.

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Microsoft breaks out commercial cloud business in new reporting structure

September 29th, 2015 No comments
The Microsoft pointer outward the domicile campus in Redmond, Wash.

The Microsoft pointer outward the domicile campus in Redmond, Wash.

Microsoft (MSFT) was up 0.37% on headlines of a new, some-more pure stating make up which breaks out the company’s blurb clouded cover business.

The brand brand new make up divides the association in to 3 core handling segments; capability and commercial operation processes, smart clouded cover and personal computing.

According to an research by investment bank FBR & Co., “we hold Microsoft’s laser-focus on program contra hardware with a large product cycle leaves it good positioned to come in the ‘golden age’ of clouded cover computing with Windows 10 as a vital intensity catalyst.”

The proclamation was a follow-on to a memo CEO Satya Nadella sent to employees in July.

The headlines comes forward of Microsoft’s earnings, due out Oct. 22. The proclamation was done on a discussion call with analysts Monday.

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Zosano Pharma loses a third of its value

September 29th, 2015 No comments
Trader Joseph Murray functions on the building of the New York Stock Exchange, Wednesday, Sept. 9, 2015. U.S. bonds have been opening completely aloft as investors take their evidence from big gains in Middle East and Europe. (AP Photo/Richard Drew) ORG XMIT: NYRD102

Trader Joseph Murray functions on the building of the New York Stock Exchange, Wednesday, Sept. 9, 2015. U.S. bonds have been opening completely aloft as investors take their evidence from big gains in Middle East and Europe. (AP Photo/Richard Drew) ORG XMIT: NYRD102

Shares of Zosano Pharma (ZSAN) mislaid a third of the worth Tuesday after late Monday disclosing the will hindrance growth of the diagnosis for serious osteoporosis.

Zosano shares forsaken $2.05, or 33%, to $4.27 on the news, done worse by the company’s avowal which Eli Lilly will finish the partnership with the company. That’s a outrageous beating given a little investors speculated Lilly would cruise shopping batch in Zosano.

The fast fall in Zosano shares has been monumental even by biotech standards. The batch was offering to primary open investors in Jan 2015 at $11 a share. That equates to these early investors have been right away down 61% on their investments in only 9 months.

Ouch.

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Futures higher, Asian stocks down as Nikkei dives 4.1%

September 29th, 2015 No comments
epa04955260 A on foot is on foot past a arrangement arrangement Tokyo's Nikkei Stock Average during an afternoon trade event in Tokyo, Japan, twenty-nine Sep 2015. Tokyo bonds plunged over 600 points, diving underneath the 17,000 level, an about nine-month low. EPA/KIMIMASA MAYAMA ORG XMIT: KMA02

A on foot is on foot past a arrangement arrangement Tokyo’s Nikkei Stock Average during an afternoon trade event in Tokyo, Japan, twenty-nine Sep 2015. EPA/KIMIMASA MAYAMA

U.S. bonds were staid for a plain opening Tuesday, whilst Asian bonds were down with Japan’s Nikkei 225 index plunging 4.1%.

The tumble of Asian shares lengthened a tellurian marketplace sell-off triggered by grave corporate news, expectations of a Federal Reserve rate travel and jitters about China’s economy.

U.S. batch futures were higher, with Dow futures and S&P 500 futures up 0.5%.

Japan’s Nikkei 225 index dived 4.05% to tighten at 16,930.84 whilst Hong Kong’s Hang Seng index forsaken 3% to a two-year-low, shutting at 20,556.60. The Shanghai combination index mislaid 2% to tighten at 3,038.14.

European bonds recovered from early waste Tuesday. Germany’s DAX index gained 0.3% whilst France’s CAC 40 rose 0.1%. Britain’s FTSE 100 index mislaid 0.5%.

Analysts contend investors have been buffeted by a slew of bad news. Shares in commodity trade association Glencore dived 29% in London on Monday as investors increasingly disbelief the monetary strength in a time of diseased commodity prices. The fallout from Volkswagen’s emissions paraphernalia scandal is swelling to alternative automobile brands.

Glencore shares bounced behind Tuesday — in early trading, the share cost was up 7.1%.

Pharmaceutical bonds in the U.S. have been limping after a price-gouging situation lifted the awaiting of larger regulation. Fed officials, meanwhile, go on to vigilance they will lift U.S. seductiveness rates this year, imprinting the commencement of the finish of ultra-low seductiveness rates that have underpinned batch markets.

Stocks tumbled Monday as Wall Street reacted to uninformed interpretation showing a one after another dump in Chinese Industrial Profits, that fell 8.8% in Aug vs. the same duration a year ago.

Contributing: Adam Shell, Associated Press

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