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Groupon Inc. (GRPN) announces it has acquired Cloud Savings Company, Ltd., parent company of online discount code platform Vouchercloud and brand loyalty provider Giftcloud, for $65 million.
Groupon stock price has risen since last summer by 60%. It was profitable on an adjusted basis to all of 2017. Many analysts see the stock rising in 2018. Groupon delivers record quarterly net income and adjusted EBITDA. 2018 adjusted EBITDA guidance of $260 million to $270 million.
Groupon Achieves 10% Gross Profit Growth in the Fourth Quarter. As noted in the Fourth Quarter and Fiscal Year 2017 Results CEO Rich Williams states “In 2017, we made progress in creating a better customer experience that removed friction for our customers while also maximizing gross profit,” “We are excited to build on this success in 2018, combining our growing mobile penetration and platform power to ultimately become the daily habit in local commerce for customers and merchants.”
CWEB Analyst’s have initiated a Buy Rating for Groupon Inc. (GRPN) , and a Price Target of $8
T- Mobile Agrees To Merge With Sprint In A $26 Billion Dollar Deal – CWEB.com
Leslie Cohen
Managing Editor
T-Mobile Us Inc., (TMUS) agrees to purchase Sprint Corp (S) for 26 billion dollars. The deal must pass antitrust regulators. T-Mobile CEO John Legere of T-Mobile will remain at CEO and states that they will be hiring 5,000 workers helping them lead the way to the highest 5G capacity Network in the industry. The combined companies would invest $40 billion upgrade its 5G network. T-Mobile is valued at 65 billion dollars.
The merger was first discussed in 2014 but the deal fell flat. Competition benefits consumers but this one may be tough to get through regulators to allow the deal to pass. Consolidation in the industry is happening Time Warner Inc. (NYSE: TWX) looks to be acquired by AT&T Inc. (NYSE: T). The $85 billion-dollar Time Warner and AT&T merger is still tied up in federal court.
Should this deal get approved there will be a lot more competition with AT&T who is trying to acquire Time Warner. Should this deal be approved T-Mobile will have a combined operation of 120 million users.
CWEB Analyst’s have Reiterates a Sell Rating for Sprint Corp (S) and a Buy Rating for T-Mobile Us Inc., (TMUS)
FDA Declines To Approve Pfizer Biosimilar Of Roche’s Cancer Drug – CWEB.com
U.S. regulators declined to approve the company’s biosimilar of Roche’s blockbuster treatment for breast cancer, Herceptin.
Biologics are produced from living cells. They are very difficult to copy with exact precision. Generic type versions of these drugs are called biosimilars.
The fate of Pfizer (PFE) is in the spotlight. Challenging times ahead for the company as “Merck Sells Consumer Business”. Pfizer stated last October it was reviewing strategic alternatives for its consumer healthcare unit and is expected to make a decision in 2018.
Pfizer (PFE) chairman and CEO Ian Read talked with Citi Group analyst Andrew Baum and stated that an acquisition of Bristol-Myers Squibb (NYSE:BMS) is off the table for now.
Other contenders for Pfizer to acquire could be I think Sangamo Therapeutics (NASDAQ:SGMO), Celgene (NASDAQ:CELG), and Madrigal Pharmaceuticals (NASDAQ:MDGL).
Celgene dominates the market with the blood cancer,Revlimid and Pomalyst. Sangamo Therapeutics in common with Bristol-Myers Squibb is that is s already a partner with Pfizer. Pfizer could easily acquire Sangamo on the cheap for them. The small biotech’s market cap is $1.6 billion. Even though they don’t have a pipeline candidate beyond early stage clinical testing, Sangamo has been in the limelight from big drug makers with the leadership in zinc finger nuclease (ZFN) gene-editing technology. Pfizer may want to hold out and see how the clinical studies progress. However, buying Sangamo sooner than later could give Pfizer a massive long-term advantage as gene therapies gain traction.
Madrigal Pharmaceuticals’ has a smaller market than Sangamo. An acquisition of the Sangamo would be relatively pretty easy for Pfizer. Buying Madrigal would give Pfizer and future with a promising drug for treating non-alcoholic steatohepatitis (NYSEARCA:NASH). The drug ready to advance to late-stage clinical development.
CWEB Analyst’s have issued a Buy Rating for Pfizer (PFE), and a Price Target of $60 within 12 months.
Eli Lilly And Company Is Scheduled To Present First-Quarter Results – CWEB.com
Eli Lilly and Company (LLY) this week, management is scheduled to present first-quarter results.
Eli Lilly and, Incyte Corporation, meet with the FDA on April 23. The two partners’ new rheumatoid arthritis tablet Olumiant sells to consumers in Europe. Her in the U.S. the FDA rejected an application last year citing evidence suggesting the drug could be linked to dangerous blood clots.
Incyte’s and Elu Lily’s application seven clinical trials that enrolled about 3,100 patients. It was found that Olumiant suppresses the immune system. Five patients in the trial received blood clots. Lilly looks to introduce the drug with a recommended 4 mg dose that tapers down to 2 mg, except for treatment-resistant patients. That would include running a new trial that could take years moving forward. The FDA is looking for more evidence that the drug is safe.
The drug Kevzara introduced by Novartis and Regeneron, Eli Lilly’s competitor are popular in the US. market. Pushing up sales and profits for the company is Eli Lilly’s drug Trulicity reaching 119% higher to $2.0 billion for all of 2018 and accelerated to a $2.6 billion annualized run rate during the last three months of the year.
Lilly Reports Additional Top-Line Results from CYRAMZA ® (ramucirumab) Phase 3 RANGE Study in Advanced or Metastatic Urothelial Cancer. According to the press release on Eli Lilly’s website- “People with advanced urothelial carcinoma who experience disease progression urgently need treatment options that can control the disease — to help stop or slow the cancer from growing and spreading,” said Levi Garraway, M.D., Ph.D., senior vice president, global development and medical affairs, Lilly Oncology. “Although this study didn’t reach statistical significance for overall survival, we are encouraged by the totality of the RANGE results and look forward to reviewing the data with internal and external experts to determine next steps.”
Sears (SHLD) is making a comeback right now and will sustain the momentum going forward.
There will be a conference center that will reside where the old Sears automotive building was and Sears will host an 18,000-square-foot facility selling home goods such as mattresses and appliances. Anything ordered online at Sears.com can also be picked up in these store locations. Three new tenants will be leasing a small portion of the Sears building.
For Sears, closing stores can be a path to profitability and beefing up their online presence. Sears has made a deal with Amazon to start selling its Kenmore-branded appliances online that are compatible with Amazon’s Alexa.
Comparing to all other retailers in the industry including Kohls, Costco, Nordstrom, Macys, Walmart, Amazon, Sears holding has a potential turnaround of going over $20-$30 within a year by focusing on shop your way and other new ventures.
Sears Holdings Corporation (SHLD) has been named a 2018 ENERGY STAR ®Partner of the Year – Sustained Excellence Award winner for continued leadership in protecting our environment through superior energy efficiency achievements. In addition, the Kenmore brand has been named a 2018 ENERGY STAR ®Partner of the Year – Product Brand Owner. According to the EPA, it marks the first time a company has won all three awards: Retailer, Energy Management and Brand Owner. Sears Holdings’ and Kenmore’s accomplishments will be recognized by the U.S. Environmental Protection Agency and the U.S. Department of Energy at a ceremony in Washington, D.C., on April 20, 2018.
“We truly value Sears Holdings’ partnership with ENERGY STAR and are honored to receive the Partner of the Year Award in Sustained Excellence for the ninth consecutive year in Retail and the seventh consecutive year in Energy Management,” said Edward S. Lampert, chairman and chief executive officer of Sears Holdings. “Being recognized by ENERGY STAR as a retail leader only further increases our members’ trust in us to continuously provide energy-efficient solutions that meet their needs. We remain committed to continuing our work to help increase energy efficiency, to offer savings to our members, and to protect the environment through our dedicated efforts.”
CWEB Analyst’s have initiated a Buy Rating for Sears (SHLD)
CWEB.com – Johnson & Johnson Beats Earnings Estimates
By Leslie Cohen
Managing Editor
Johnson & Johnson (NYSE: JNJ) Johnson & Johnson’s first-quarter earnings beat and exceeded expectations on 4-17-2018. With a lot of momentum carrying from 2017 to 2018, the results were positive.
Earnings came out at: $2.06 per share vs. $2.02 per share expected. Respectively, revenue topped to $20 billion vs. $19.46 billion that was expected.
The new US tax legislation law gives J&J more flexibility to invest on a global basis and within the US. Strong investments of 30 billion dollars over a four year period will occur in new technologies that will be manufactured in the US.
Johnson & Johnson’s role as a biotech buyer gives them a fifty percent growth rate for the company. J&J’s consumer business has lagged with the other occupants in this sector. Baby care product sales fell down to $457 million from $455 million, a 3% percent decrease year-over-year when excluding currency. J&J will relaunch its baby care later this year. The millennial age group is interested more in organic products. With competition heating up from other organic companies like “The Honest Company”, J&J will introduce a line of baby care items with organic ingredients.
Sales for Xarelto, the blood thinner medication rose approximately 13 percent on an operational basis reaching only $578 million in global sales, missing analysts’ estimates of $633.7 million. Sales worldwide fell down to 18 percent, excluding a positive currency impact, to $1.34 billion, therefore missing analysts’ expectations for sales of $1.5 billion.
Remicade drug for arthritis has been under pressure with generic versions on the market. On the bright side the Food and Drug Administration approved Erleada, a drug that treats non-metastatic castration-resistant prostate cancer.
Chief Financial Officer Dominic Caruso CFO is announcing his retirement from his 12 year tenure at Johnson & Johnson.
CWEB – Barbara Bush, In Failing Health, Says She Won’t Seek Further Treatment
By Leslie Cohen
Managing Editor
Former first lady of former President George H. W. Barbara Bush is in failing health. She has been suffering from Chronic Obstructive Pulmonary Disease, (COPD), and congestive heart failure.
Her diseases have progressed in the past couple of days. She has opted for care at home and has decided not to return to the hospital. This is a very difficult time for the family. Former President George H. W. Bush and their daughter Doro, along with her sons Marvin and Neil are at her bedside.
Barbara Bush wife of George H. W. Bush, served as the 37th First Lady of the United States from 1989 to 1993. Since the Former President George W. Bush left the White House, they have raises more than a billion dollars for charity, specifically for the of cause of literacy.
Former President George H.W Bush quotes in his book, “All the Best” “We are two people, but we are one.” The two have been married for 73 years.
We wish the Bush Family our sincere prayers at this difficult time.
CWEB – Uber Wins Landmark Victory in Federal Court
By Leslie Cohen
Managing Editor
Uber Technologies Inc. the peer-to-peer ridesharing just has just had a landmark victory when a federal judge U.S. District Judge Michael Baylson ruled Thursday, April 12th, 2018, that UberBlack drivers will not be classified as employees. Razak v. Uber Technologies was filed in February 2016. The ruling states that under the Fair Labor Standards Act, Uber does not maintain enough control over the drivers, and they will be classified as independent contractors. This is the first case in the ridesharing segment of the new economy.
Judge Baylosn stated that since the drivers make their own hours, they are not employees under the Fair Labor Standards Act guidelines.
Uber drivers do not get the benefits of workers who are full-time employees that can receive health insurance, 401K plans, vacation time, and other benefits that come with full-time employment.
Jeremy Abay, one of the lawyers for the plaintiffs will appeal the decision in Philadelphia-based 3rd U.S. Circuit Court of Appeals. Should the appeal fail, the ruling could set precedence for the entire ride-sharing industry and the associated gig economy.
Sprint And T- Mobile Merger Talks Begin – CWEB.com
By: Leslie Cohen
Managing Editor
Sprint Corp. (S)and T-Mobile US Inc. (TMUS) have rekindled merger talks. After four years, the two companies that have been fierce rivals are exploring a combination for the third time in four years.
Shares of Sprint Corp. (S) , +18.00% spiked higher in midday trade, Tuesday 4/10/2018. Last time, merger talks were left in disarray after the companies could not agree on who would take control over the combined entity. Japan’s Softbank Corp. owns about 85 percent of Sprint and T-Mobile (TMUS) is controlled by Germany’s Deutsche Telekom AG.
Looking to expand into the 5G wireless technology, a merger between Sprint (S) at T- Mobile (TMUS) can give it an edge to compete and serve 127 million customers if combined. Sprint stated back in March that $6 billion annually, over the next several fiscal years would need to be spent on upgrades.
While under CEO Marcelo Claure, states Sprints growth has occurred due to massive and heavy discounting. It looks like Sprint just can’t get up to scale without a T- Mobile partnership.
Regulatory- and antitrust hurdles would exist under the current political climate with a Sprint- T- Mobile merger. The merger between AT&T Inc.(T) – and Time Warner Inc. (TWX) – is up against hurdles, and fighting this battle in court.
CWEB Analyst’s have initiated a Hold Rating for Sprint Corp. (S) , and a Price Target of $5.40
Boeing Co. U.S.: (BA) was able to deliver record setting results for commercial aircraft deliveries in 2017. The tax law changes implemented by President Trump have given Boeing the ability to invest billions of dollars into its business.
Lion Air Group, the budget airline based in Indonesia announced Tuesday the order for 50 Boeing Co. 737 Max 10 jets, adding more seats to its planes with the growth of travel in the country. The contract is worth $6.24 billion.
Boeing increases first-quarter deliveries by nearly 9 percent. It has acquired $11.5 billion in free cash flow. We could see an upside of 20%-25% annual growth over the next five years.
As of April 10thmany top analysts rate it a buy including Cowen % Company, Edward Jones, Jeffries and Co., JP. Morgan Securities and Morgan Stanley.
CWEB Analyst’s have initiated a Buy Rating for Boeing Co. U.S.: (BA), and a Price Target of $400 within 12 months.
