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(AFX UK Focus)
2008-11-17 11:30
Glance-STOCKS NEWS EUROPE-Colonia Real Estate falls on HSBC downgrade |
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10:45GMT 17Nov2008-Colonia Real Estate falls on HSBC downgrade -------------------------------------------------------------- Shares in Colonia Real Estate fall 8 percent, putting them among the top-3 losers in Germany's small-cap index, clearly underperforming European sector peers as HSBC downgrades its rating. Citing a "more cautious view of the German (property) investment market" and Colonia Real Estate's "low cash-generating business model", HSBC cuts the stock to "neutral" from "overweight" and reduces its target price to 2 euros from 8 euros. HSBC says in a note it does not expect Colonia Real Estate to pay a dividend for 2008. "We question Colonia's business model ... the business model must be scrutinized in general, as we believe that in the current economic environment, the company needs a clearly focused, cash flow positive business model," HSBC says. Reuters Messaging rm://peter.starck.reuters.com@reuters.net 10:56GMT Nov172008-REpower higher on Suzlon's comments on stake buy ------------------------------------------------------------------- Shares in REpower rise 5.7 percent, the top gainer on Germany's TecDAX index, after Indian wind turbine maker Suzlon Energy says it will tap cash on hand and debt to buy Martifier's stake in its German unit REpower by May. " will again head up speculation Suzlon may take REpower private," a Frankfurt-based trader says. "If Suzlon really wants to gain the full benefits from technology sharing, it will likely have to gain at least a majority share in REpower and could delist the German tech company," a second trader adds. For more double click on Reuters Messaging rm://tyler.sitte.thomsonreuters.com@thomsonreuters.net 10:55GMT 17Nov2008 - Belgium's Roularta sinks on lower FY guidance ------------------------------------------------------------------ Shares in Roularta Media Group NV's (RLRT.BR) shares drop 5.7 percent in thin trading after the Belgian media and publishing group lowers its 2008 net profit forecast Monday, citing rising costs and pressure on the advertising market. "Everything which is advertising-linked will see tough times ahead," says Petercam analyst Gert Potvlieghe following the share price plummet. He adds, however, that there was already a real recession priced in for Roularta, and the stock should not see more significant falls unless the wider economy turns even worse than expected. KBC analyst Nathalie Sierens writes in a note that Roularta's weaker 2008 outlook was unexpected, and predicts significant downgrades once the bank has revised its forecasts. For more, double click on Reuters Messaging: anne.jolis.thomsonreuters.com@reuters.net Keywords: MARKETS EUROPE STOCKSNEWS 10:33GMT 17Nov2008-Vinci falls on report gvt mulling tax hike ------------------------------------------------------------- Shares in French public works and transport concessions firm Vinci drop 4.5percent, featuring among the biggest losers on the CAC 40 as traders cite a report in Les Echos newspaper saying the French government is mulling a sharp rise in public domain taxes paid by highway concession firms. "Vinci would be the most affected given that it has the highest exposure to French concessions. We estimate that a threefold rise in the annual Public Domain tax until the end of the concession would clip 10 percent from our valuation," Exane analysts write in a note. French government officials were not immediately available for comment on the report. Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net 10:11GMT 17Nov2008-Northern Bear up on interims; broker "buy" -------------------------------------------------------------- Shares in Northern Bear jump 11.2 percent, as the building services business sees its first-half profit more than double on the previous year, as revenues soar 71 percent, with St Helens Capital repeating its "buy" recommendation. St Helens says Northern Bear, through its "buy and build" - acquisitional growth - strategy, benefits from a diversified revenue model and has substantially reduced its exposure to the new house build sector. However, due to the challenging outlook and increased competition, the broker cuts pretax profit forecasts for 2009 to 3.5 million pounds from 4.4 million, EPS to 13.1 pence from 15.9 pence, leading to a reduction in its target price to 110 pence from 145 pence. For more double click on Reuters Messaging rm://david.brrett.reuters.com@reuters.net 10:16GMT 17Nov2008-Internet retailer ASOS up, trading buoyant ------------------------------------------------------------- Shares in ASOS, the AIM-listed British Internet fashion retailer, gain as much as 8.2 percent after reporting a 68 percent increase in first-half pretax profit and buoyant current trading. Bucking a gloomy retail sector trend in the UK, the company says its sales in the first seven weeks of its second-half were up 104 percent. David Stoddart, analyst at Altium Securities, retains his "buy" recommendation and year to end-March 2009 pretax profit forecast of 13.4 million pounds. "Despite the economic headwinds, it seems increasingly likely that ASOS will exceed our sales forecasts for full year 2009," he says. To see story please click on Reuters messaging rm://james.davey.reuters.com@reuters.net 10:17GMT 17Nov2008-Severfield Rowen up on update and Indian JV --------------------------------------------------------------- Shares in Severfield Rowen climb 1.3 percent, after the British structural steel company reports an inline trading update and announces a joint venture project in India, prompting FinnCap to repeat its "buy" recommendation. FinnCap says Severfield's trading update met with its expectations, while a strong order book and new overseas opportunities in India and Abu Dhabi should make up for the shortfall in the UK, where economic conditions in 2009 are expected to be tough. The broker says the company is focusing on cash generation and a reduction in debt levels, while the maintenance of its 20 pence full-year dividend represents an attractive yield of 12 percent. For more double click on Reuters Messaging rm://david.brett.reuters.com@reuters.net 10:09GMT 17Nov2008-German property firm Vivacon down on price target cut ------------------------------------------------------------------------ Shares in German real estate company Vivacon fall 10.3 percent to 3.47 euros, extending last week's slide and putting the stock at the top of the losers in Frankfurt's small-cap index. DZ Bank cuts its price target for the stock to 3 euros from 5 euros, saying in a research note: "Vivacon will have to continue to fight for liquidity and cash flow as long as the market remains difficult." The note is in reaction to Vivacon's Q3 results last week. DZ Bank says the company's interim financials and outlook are poor. Vivacon said it could no longer confirm its previous full-year 2008 profit target. Reuters Messaging rm://peter.starck.reuters.com@reuters.net 10:09GMT 17Nov2008-British drugmaker Shire falls ahead of R&D day ----------------------------------------------------------------- Shares in British hyperactivity drug and gene therapy specialist Shire fall over 4 percent ahead of expected product updates from the company at a research and development day scheduled for Tuesday. "They're having an R&D day tomorrow ... and you could expect to see selling before the R&D day," says Panmure analyst Damian McNeela. "What tends to happen at the R&D day, there's a whole raft of updates on where drugs are in development, and it's a lot easier to adjust your model to take stuff out than it is to readjust your model for an improvement, so psychologically people generally tend to sell ahead." Reuters messaging rm://ben.deighton.reuters.com@reuters.net 10:035GMT 17Nov2008-Premier rises on Mr Kipling sale talk -------------------------------------------------------- Shares in Premier Foods rise 17.6 percent as The Sunday Telegraph reports United Biscuits (UB) is interested in buying the group's Mr Kipling Cakes Division. Premier's chief executive, Robert Schofield, is understood to have rebuffed private equity-owned UB, leaving the biscuit group weighing up a direct approach to banks or shareholders. "We think that Kipling is a useful illustration of the potential benefits to Premier's valuation from disposing of a 'crown jewel'," says Investec analyst Martin Deboo, who estimates the division could have a disposal value of about 200 million pounds. "While this deal would almost certainly be dilutive, this would be more than compensated by the benefits of increased covenant headroom." For more, click on Reuters messaging rm://paul.sandle.reuters.com@reuters.net 10:04GMT 17Nov2008-Accident Exchange drops 18 pct on warning ------------------------------------------------------------ Shares in Accident Exchange tumble 18 percent after the group, which provides vehicle rental for parties involved in road traffic accidents, warns on profits in an end-of-first-half trading update. Accident Exchange says profitability for both the first-half and full year to April 30, 2009 will be below market expectations as lower traffic volumes have resulted in fewer road accidents. Daniel Stewart & Company anticipates that it will be necessary to downgrade its estimates for Accident Exchange by at least 20 percent for full year 2009, with its adjusted pretax profit forecast currently 19.3 million pounds, and consensus expectations for 20.5 million pounds. Daniel Stewart says this is clearly a negative statement and is one that reiterates many of the concerns raised by peer Helphire last week. The broker says, however, that it does draw some comfort from news that Accident Exchange's cash collection has been improving and that there has been no breach of its banking covenants. Daniel Stewart has its rating and target price for Accident Exchange under review. For more double click on Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net 09:47GMT 17Nov2008-Bodycote falls on second-half warning -------------------------------------------------------- Shares in engineering group Bodycote Plc fall 9.6 percent to 111.25 pence after it warns of a second half performance modestly below its hopes and says it is halving a payout to shareholders from the sale of its testing unit. Numis Securities says the group's 30 percent exposure to the automotive and truck industry is likely to lead to sharp volume declines, although the broker expects aerospace, oil and gas and power generation to stay positive. "Operational gearing remains high and we expect a significant impact on profits," Numis says. For more, click on, company statement Reuters Messaging:philip.waller.thomsonreuters.com@reuters. Keywords: MARKETS EUROPE STOCKSNEWS =2 9:05GMT 17Nov2008-HeidelbergCement falls on market talk of Merckle sale ----------------------------------------------------------------------- Shares in HeidelbergCement fall 9.4 percent, making it the top decliner among German midcaps, as a newspaper report says that majority stake holder, the Merckle family, could sell its stake to offset losses made on Volkswagen stock. The Financial Times Deutschland newspaper reports that German billionaire Adolf Merckle made a "high three digit million euro" loss after going short on shares in German carmaker Volkswagen. Merckle is now in talks with a group of about 40 banks about a bridging loan, the paper says. It says that the Merckle family could sell some of its nearly 80 stake in HeidelbergCement or in another company which the family owns stock. "Fear that Merckle will have to reduce stake in HeidelbergCement or that family currently doesn't have the liquid funds to support heavily debt-loaded HeidelbergCement should burden share price," said a Frankfurt-based trader. Heino Ruland, market analyst at FrankfurtFinanz, also believes this possible. "We have no clue what kind of funds are needed to overcome the crisis, but considering the number of banks involved, it is all but tiny and could force Merckle to sell assets and the easiest way would be listed assets such as HeidelbergCement. Hence pressure on the stock price is almost guaranteed," Ruland says. For more double click on Reuters Messaging rm://Tyler.Sitte.reuters.com@reuters.net 09:25GMT 17Nov2008-Parmalat down on lower forecasts --------------------------------------------------- Parmalat SpA shares are among top losers on the Milan bourse after the Italian dairy company said on Friday it is cutting its full-year forecast for earnings before interest, tax, depreciation and amortisation. Parmalat is down 4.3 percent at 1.229 euros. Milan's blue-chip S&P/Mib index is down 0.35 percent. "Parmalat management (is) increasingly worried about fourth quarter 2008 and 2009," Nomura said in a research note Monday. "We expect further comments like this, and Danone's last week, to weigh on names where management and/or market still anticipates what we perceive to be an unrealistic outlook," it said.
nigel.tutt@thomsonreuters.com
----------------------------------------------------------- Shares in luxury yacht company Rodriguez Group lose as much as two-fifths of their value after it posts a 34 percent drop in fiscal 2007/08 consolidated sales as the financial crisis prompts customers to cancel or delay purchases. The stock is 34 percent lower at 3.02 euros by 0910 GMT, making it the worst performer on the French index of 190 mid-and smallcap stocks and giving it a market value of 58 million euros. The stock has lost 86 percent so far this year, making it the second-worst performer among the 190 stocks. "Market conditions have been strongly impacted by the financial and economic crisis," CM-CIC Securities analyst Francis Pretre writes in a note. He suspends his price target for the stock. Reuters messaging rm://james.regan.reuters.com@reuters.net 09:17GMT 17Nov2008-Avis Europe drops after profit warning --------------------------------------------------------- Shares in Avis Europe shed 30.8 percent after Europe's biggest car rental company warned on full year profits in an interim management statement (IMS) prompting Dresdner Kleinwort to cut its estimates and target price. Avis Europe says the used car market and the economic environment are weaker than it expected and that underlying pretax profit for the year will be slightly below last year's 37.6 million euros ($47.70 million). Dresdner Kleinwort says Avis's third quarter IMS signals an anticipated downturn in volumes and a softer pricing environment than in the first half, with the main response being to impose significantly higher pricing, up to 20 percent across the industry, at the expense of volume. The broker notes that at the same time Avis is making a further round of cost cuts and it has reduced its forecasts to reflect this revised outlook. Dresdner Kleinwort says, as a result it has cut its target price for Avis to 10 pence from 25, while reiterating its "hold" rating on the stock. For more double click on Reuters Messaging:jon.hopkins.reuters.com@reuters.net 09:13GMT 17Nov2008-Lufthansa bid hopes lift Austrian Airlines ------------------------------------------------------------- Austrian Airlines rises as much as 15 percent on expectations Lufthansa's bid for the carrier's state-owned stake could benefit free-floating shares. Investors hope Lufthansa will make a buyout offer for minorities at the six-month average price which is some 4.14 euros. "Many are expecting at least 4 euros (per share)," a trader says. The stock is trading at 3.23 euros after a steep rally on Friday. Reuters Messaging rm://christian.gutlederer.reuters.com@reuters.net 09:10GMT 17Nov2008-German auto sector shares outperform on aid hopes -------------------------------------------------------------------- Shares in German car makers BMW and Daimler as well as automobile equipment suppliers, notably tyre maker Continental, outperform the broader market, with dealers citing a host of factors -- chief among those hopes of state aid for the sector from the German and U.S. governments. "Opel might get some state help. Maybe there is some hope that others in trouble would also get help from the state," a trader says, referring to U.S. General Motors's German unit Opel. German government leaders are due to meet GM executives later in the day to discuss aid for Opel. Another trader points to remarks by U.S. President-elect Barack Obama that struggling U.S. automakers need a government rescue. Continental tops the DAX leaderboard with a rise of 12.5 percent. A newspaper report that Schaeffler, which is acquiring just below 50 percent of the company, is seeking co-investors supports the stock, traders say. They also talk of a possible short squeeze linked to the takeover. BMW rises 4.3 percent and Daimler gains 2.9 percent. The DJ Stoxx European auto index is down 0.4 percent. Merrill Lynch adds BMW to its Europe 1 list. For more double click on Reuters Messaging rm://peter.starck.reuters.com@reuters.net Reuters Messaging rm://hakan.ersen.reuters.com@reuters.net 09:09GMT 17Nov2008-Hansen up; Morgan Stanley ups to "overweight" ---------------------------------------------------------------- Shares in Hansen Transmissions, the Belgium-based wind turbine gearbox maker, rise 6 percent as Morgan Stanley upgrades to "overweight" from "equalweight" on valuation grounds, while reducing its target price to 210 pence from 310 pence. Morgan Stanley says Hansen's 2011 price earnings of 8 times is a 13 percent discount to the lower quality wind turbine manufacturers and it believes it deserves a significant premium. The broker says Hansen is the market and technology leader in a high-growth industry with a superior defensive position in the value chain, strong pricing power and demand visibility. However, Morgan Stanley cuts EPS estimates by 16 and 17 percent for full-year 2009 and 2010 respectively following the recent volume cuts for Vestas and Gamesa, Hansen's largest customers. Reuters Messaging rm://david,brett.reuters.com@reuters.net 08:55GMT 17Nov2008-Gem Diamonds plunges as it eyes year loss ------------------------------------------------------------ Gem Diamonds leads the mid-cap fallers, with a 35 percent plunge to 223 pence, as the miner warns it could make a loss this year due to a sharp fall in diamond prices triggered by the global financial crisis. Analysts at Cazenove put their "outperform" recommendation on the company under review but say Gem Diamonds remains cash generative and has a net cash position which should help it weather the current environment. "Valuation support for our "outperform" recommendation is severely diminished, there will be little clarity on 2009 pricing until Q2 2009 and there is a risk that our pricing forecasts have to come down further," it says in a note. For more click on; company statement
Reuters messaging rm://paul.sandle.reuters.com@reuters.net
----------------------------------------------------------- Shares in Tullett Prebon gain 6.9 percent, recovering after recent sharp falls as Citigroup ups its rating to "buy" from "sell", a double-upgrade on valuation grounds. Citigroup says Tullett's electronic strategic challenges are well known, as are possible declines in trading activity at the interdealer broker in 2009. However, the broker says, the near 70 percent drop in Tullett Prebon's share price in 3 months leads it to believe these negatives are more than discounted in the share price. The broker cuts its target price for Tullett Prebon to 215 pence from 360 to reflect the share price falls. Reuters Messaging:jon.hopkins.reuters.com@reuters.net 08:45GMT 17Nov2008-SAP down as Merrill Lynch downgrades to neutral ----------------------------------------------------------------- Shares in SAP fall 0.3 percent, underperforming the German large cap DAX index, which is up 0.3 percent, as Merrill Lynch downgrades the business software specialist to "neutral" from "buy" and cuts its price target to 32.50 euros from 36 euros. In a note to clients, the brokerage says it continues to see SAP as a strong software maker over the long term, but says there is the risk SAP will continue to warn in the short term as reported licence revenue is likely to continue to fall short of still too bullish expectations. "The current fourth quarter is such a situation. SAP generates over 40 percent of its annual licence revenue this quarter. The spending environment is at its worst for decades and hence we could easily see another profit warning in January," the brokerages says. Merrill Lynch adds that a recently held survey of chief investment officers shows that 70 percent of those polled are expecting a recession, significantly worse than three months ago this was at 64 percent. "More worryingly is that 44 percent of CIOs are currently delaying software spending decisions due to the economic uncertainty. This means that in a quarter where SAP needs every help it can get, given the large amount of contracts it needs to sign, it will run more and more against closed doors." the brokerage concludes. Reuters Messaging rm://tyler.sitte.thomsonreuters.com@thomsonreuters.net 08:36GMT 17Nov2008-FTSE Small Cap Index flat early -------------------------------------------------- The FTSE Small Cap Index opens flat as UK markets start the week in subdued fashion shrugging off losses experienced in Asia overnight and the U.S. on Friday, with the FTSE 100 Index down just 0.2 percent. Diploma rises 5.3 percent as the supplier of specialised products and services to industries including life sciences reports full-year revenue and adjusted pretax profit to be up 22 percent and 18 percent respectively. Avis Europe slides 15.3 percent after the car rental company warns its full-year underlying profit will now be slightly below the prior year and says both the used car market and economic environment are weaker than previously expected. Reuters Messaging rm://david.brett.reuters.com@reuters.net 08:33GMT 17Nov2008-Turkish airlines soars after Q3 results ---------------------------------------------------------- Shares in Turkish Airlines jump 9 percent in a broadly negative market after the Turkish flag carrier announces higher-than-expected earnings for the third quarter, sparking optimism for fourth quarter earnings. "The numbers came up much higher than expected. The load factors, traffic figures had all been released before, but the fleet appraisal is new and it's positive," says Ekspres Securities trader Can Oksun. He adds that globally weaker sentiment towards airlines throughout much of the year had added downward pressure to the share price. "Turkish Airlines stock is trading now 1.06 times earnings, so to say it's cheap is an understatement, it's extremely cheap, and it will most likely fare better with lower fuel costs," he says. Reuters Messaging rm://thomas.grove.reuters.com@reuters.net 08:29GMT 17Nov2008-European stocks dip early led by oils, banks --------------------------------------------------------------- European stocks fall in early trade, tracking losses on Wall Street and as oil shares follow crude into the red while banks slip. The pan-European FTSEurofirst 300 index is down 0.4 percent at 855.86 points. Oil and gas shares take the most points off the index, with BP, Royal Dutch Shell and Total losing between 0.9 and 1.5 percent as crude oil falls more than 2 percent to below $56 a barrel. Among banks UBS is down 3.2 percent, while HSBC and BNP Paribas both lose 1 percent. Reuters Messaging rm://rebekah.curtis.reuters.com@reuters.net 08:14GMT 17Nov2008-Atos surges after Breton named CEO ----------------------------------------------------- Shares in Atos Origin climb 10 percent in a downward market, reaching their highest level since late October, after the French IT services firm names former French finance minister Thierry Breton as CEO in what media hail as a boardroom coup. Following the news, Oddo Securities raises its rating on the stock to "buy" from "add". "We think the nomination of Thierry Breton as CEO is an upside catalyst and changes the risk/reward profile significantly," Oddo analysts write in a note. Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net 07:51GMT 17Nov2008-Infineon up as report says Micron can buy Qimonda -------------------------------------------------------------------- Shares in Infineon rise 4.6 percent in pre-market trade as a newspaper report says U.S. peer Micron has secured an option to acquire Infineon's remaining 76.8 percent stake in Qimonda. In October, Qimonda sold its 35.6 percent interest in Korean chipmaker Inotera for $400 million to Micron and is using those proceeds to restructure its core business. German newspaper WirtschaftsWoche said that after Micron has completed the restructuring process it could acquire Qimonda with the purchasing price of the Korean chipmaker being credited against the purchase of Qimonda. The newspaper did not say where it obtained its information. Traders say the news is a boost for Infineon, but say the plan may have snags. " is difficult to judge without further details," says a Frankfurt-based trader. "It shouldn't be so positive for Infineon, because the option gives Micron probably more time and time is working for Micron (and against Infineon)," the trader adds. A second trader was also sceptical. "Qimonda has a market capitalisation of $44.46 million, i.e. a tenth of that what it achieved on the disposal of the Taiwanese chipmaker. How do you want to credit $400.0 million against that market capitalisation?," he says. Reuters Messaging rm://tyler.sitte.reuters.com@reuters.net 07:18GMT 17Nov2008-European stock index futures point to lower open ------------------------------------------------------------------- European stock index futures point to a weaker open, tracking Friday's losses on Wall Street after grim U.S. data fuelled fears over consumer spending, while energy shares could track crude lower. Futures for the DJ Euro Stoxx 50 fall 0.8 percent, futures for the DAX 30 lose 0.7 percent and futures for the CAC 40 drop 0.5 percent. U.S. stocks tumbled on Friday after a record drop in monthly retail sales heightened investors' worries that U.S. consumers' reluctance to spend will drag the economy into an even deeper downturn than initially expected. Among stocks to watch: Deutsche Bank will not need money from the state to survive the financial crisis, the bank's chief executive was quoted as saying in an interview in a German paper. European companies: Zodiac Group Corio U.S. companies: Lowe's Co. Target Corporation Macro (GMT): 1000 EZ Foreign trade 1415 US Ind Prod
Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net
Keywords: MARKETS EUROPE STOCKSNEWS =4
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