Editor’s Note: Related tickers: Theravance Inc (NASDAQ:THRX), GlaxoSmithKline plc (NYSE:GSK), Travelzoo Inc. (NASDAQ:TZOO), Arch Coal Inc (NYSE:ACI), Overstock.com, Inc. (NASDAQ:OSTK), AdCare Health Systems, Inc. (NYSEAMEX:ADK), Groupon Inc (NASDAQ:GRPN), Amazon.com, Inc. (NASDAQ:AMZN), Peabody Energy Corporation (NYSE:BTU), Alpha Natural Resources, Inc. (NYSE:ANR), CONSOL Energy Inc. (NYSE:CNX), James River Coal Company (NASDAQ:JRCC), Walter Energy, Inc. (NYSE:WLT), Cloud Peak Energy Inc. (NYSE:CLD), Citigroup Inc. (NYSE:C)
GlaxoSmithKline plc (NYSE:GSK) and Theravance Inc (NASDAQ:THRX)’s Breo Ellipta should be approved to treat a lung disorder that is the third-leading cause of death in the U.S., advisers to the Food and Drug Administration said. The companies provided substantial evidence the dry powder inhaler can treat airflow obstruction long-term and reduce exacerbations of chronic obstructive pulmonary disease, a panel of FDA advisers voted today in Silver Spring, Maryland. The agency is expected to decide whether to approve Breo by May 12.
UK’s FTSE recovers from 10-week lows, miners lag (Reuters)
Britain’s benchmark share index edged up from 10-week lows on Thursday, boosted by some bargain hunting, but mining stocks lagged after another fall in the price of copper. The blue-chip FTSE 100 was up 0.3 percent, or 19.51 points at 6,264.72 points by 0813 GMT. It stabilised after falling 1 percent on Wednesday to its lowest close since early February – a level where some traders saw value in the market again. Healthcare stock GlaxoSmithKline plc (NYSE:GSK) jumped 2.7 percent to add the most points to the FTSE 100, after an advisory panel to the U.S. Food & Drug Administration (FDA) backed a treatment for smoking-related lung damage made by GlaxoSmithKline and Theravance Inc (NASDAQ:THRX).
Theravance Inc (THRX): Why Shares Rose Higher (InsiderMonkey)
What: Shares of Theravance Inc (NASDAQ:THRX), a biopharmaceutical company that focuses on central nervous system and respiratory disorders, leapt as much as 19% — its second double-digit jump this week — following a positive recommendation from the Food and Drug Administration’s panel regarding COPD drug Breo Ellipta. So what: Breo is a once-daily treatment Theravance co-developed with GlaxoSmithKline plc (NYSE:GSK) that targets long-acting relief for COPD sufferers and is taken as a dry inhalable powder through a device known as Ellipta. The FDA’s panel voted 9-4 in favor of recommending approval of the drug, noting that it demonstrated effectiveness in reducing COPD exacerbations and in treating airflow obstruction. Furthermore, a separate vote by the panel of 10-3 indicated that Breo had been proven adequately safe given its proposed indications.
Theravance Inc. (THRX) Has Jumped To A New High On FDA News (RTTNews)
Theravance Inc (NASDAQ:THRX) and GlaxoSmithKline plc (NYSE:GSK) announced late Wednesday afternoon that the Pulmonary-Allergy Drugs Advisory Committee of the FDA voted that the efficacy and safety data provide substantial evidence to support approval of BREO ELLIPTA. Theravance has gapped open sharply higher Thursday and is now up 4.41 at $32.42. The stock has broken out to a new high for the year.
Travelzoo 1st-quarter profit jumps (CNBC)
Travelzoo Inc. (NASDAQ:TZOO) said on Thursday that its first-quarter net income jumped 49 percent, although its adjusted profit fell from last year. The online travel deals company earned $5.6 million, or 36 cents per share, for the quarter that ended March 31. That was up from $3.7 million, or 23 cents per share, during the same period last year. Revenue rose 7 percent to $42.2 million, from $39.3 million a year earlier. However, the per-share profit was less than the adjusted profit of 42 cents per share from a year earlier. Operating profits fell as it boosted spending to expand its sales force and to develop its hotel booking technology, which it plans to roll out later this year.
Travelzoo Q1 Results Top Estimates; Shares Surge (RTTNews)
Travelzoo Inc. (NASDAQ:TZOO) reported net income for the first quarter of $5.6 million or $0.36 per share, compared to $3.7 million or $0.23 per share for the year-ago quarter. Excluding items, adjusted earnings per share for the first quarter was $5.6 million or $0.36 per share, compared to $6.7 million or $0.42 per share in the prior year period. Revenue for the first quarter rose 7% to of $42.18 million from $39.33 million a year ago. Analysts polled by Thomson Reuters expected the company to earn $0.34 per share on revenue of $41.23 million for the first quarter. Analysts’ estimates typically exclude special items.
Travelzoo Earnings: Here’s Why Investors are Happy Now (WallStCheatSheet)
Travelzoo Inc. (NASDAQ:TZOO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 15.88%. …Quoting Management: We kicked off 2013 with record revenues, driven by strong performance within our travel segments in both North America and Europe, said Chris Loughlin, chief executive officer. We accelerated subscriber growth and made significant improvements in audience engagement across email, social media and mobile apps. We continued to develop our new hotel booking platform, which we plan to roll out later this year.
Groupon Loses Market Share as Online Daily Deals Decline (Bloomberg)
At Groupon Inc (NASDAQ:GRPN), daily deals are fading. That’s the message the company sent many investors this week when it reported a decline in gross billings, or the total value of goods and services bought on its site, between the first and second quarters of this year. …Travelzoo Inc. (NASDAQ:TZOO) increased its market share to 3 percent, according to Yipit. AmazonLocal, a partnership between LivingSocial and Amazon.com, Inc. (NASDAQ:AMZN), kept its 2 percent share.
Peabody Loss Narrower Than Expected as U.S. Coal Recovers (Bloomberg)
Peabody Energy Corporation (NYSE:BTU), the largest U.S. coal company by sales, jumped the most in six months after reporting a narrower loss than analysts expected by reducing costs in its Australia segment as U.S. demand climbs. Peabody rose 8.9 percent to $20.72 at 12:42 p.m. after climbing as much as 10.3 percent, the biggest intraday increase since Oct. 22. Arch Coal Inc (NYSE:ACI), the second-largest coal producer by shipments, jumped as much as 13 percent as investors expected the company to benefit from the same trends that helped Peabody since both mine coal in Wyoming’s Powder River Basin, said Brandon Blossman, an analyst at Tudor Pickering Holt & Co. in Houston.
Earnings Surprise Brings Coal Sector Back into Focus (247Wallst)
Shares of Peabody Energy Corp. (NYSE: BTU) rose as much as 3.2% this morning after the company posted first-quarter earnings that were considerably better than expected. Peabody’s earnings per share (EPS) loss of $0.05 was a third of the expected net loss of $0.15 per share. Revenues came in a bit low, at $1.75 billion compared with a consensus estimate of $1.78 billion. As the first of the U.S. coal miners to report — and the largest — Peabody’s results offer an opportunity to look at Alpha Natural Resources, Inc. (NYSE:ANR), Arch Coal Inc (NYSE:ACI), CONSOL Energy Inc. (NYSE:CNX), James River Coal Company (NASDAQ:JRCC), Walter Energy, Inc. (NYSE:WLT) and Cloud Peak Energy Inc. (NYSE:CLD). All these stocks are getting a boost today from Peabody’s results.
America’s Dirtiest Coal Company (Bloomberg)
If you go to the website of the U.S. Bankruptcy Court of the Eastern District of Missouri, you can read more than 1,000 letters from retired coal miners and their widows. …Or, as Peabody’s chief executive officer put it, “We’re reducing our legacy liabilities roughly $1 billion.” This was such a good idea that another coal giant, Arch Coal Inc (NYSE:ACI), unloaded its union mines on Patriot as well, though it cycled them first through yet another front. All totted up, Patriot now had 10,000 retirees and their health-care benefits on its books.
Arch Coal Rating Lowered to Neutral at Citigroup (ACI) (MideastTime)
Citigroup Inc. (NYSE:C) cut shares of Arch Coal Inc (NYSE:ACI) from a buy rating to a neutral rating in a research note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm currently has $6.00 target price on the stock. Several other analysts have also recently commented on the stock. Analysts at Zacks reiterated a neutral rating on shares of Arch Coal in a research note to investors on Friday, March 22nd. They now have a $5.75 price target on the stock. Separately, analysts at Nomura upgraded shares of Arch Coal from a reduce rating to a neutral rating in a research note to investors on Monday, March 18th. They now have a $6.00 price target on the stock, up previously from $5.00. Finally, analysts at BMO Capital Markets cut their price target on shares of Arch Coal from $7.00 to $5.00 in a research note to investors on Tuesday, March 12th. They now have a market perform rating on the stock.
Overstock.com, Inc. (NASDAQ:OSTK) Declares CEO Resumes Duties Following Medical Leave (GalaxyStocks)
Overstock.com, Inc. (NASDAQ:OSTK) declared on Monday that Patrick M. Byrne has recommenced his duties as CEO, around 3 months following the online-discount-retailer disclosed that he was taking a leave of absence for medical reasons. Overstock.com, Inc. (NASDAQ:OSTK) had appointed President Jonathan Johnson as a CEO whereas Mr. Byrne remained as chairman. Mr. Byrne leave to address cardiac issues consideration to be related with cancer treatments received much earlier.
Overstock.com Stock Soars After Q1 Earnings Beat (Investors)
Shares of Overstock.com, Inc. (NASDAQ:OSTK) were up 31% in midday trading Thursday after the online discount retailer reported Q1 earnings and revenue that handily beat views. Overstock.com, Inc. (NASDAQ:OSTK) derives most of its revenue from sales of unsold inventory of electronics, furniture, apparel and household goods from retailers on its website. The company reported per-share profit of 32 cents, up 166% from the 12 cents in the year-ago period, and well ahead of the 13 cents expected by analysts polled by FactSet. Revenue jumped 19% to $312 million. Analysts were expecting $282.3 million.
U.S. Senate may vote next week on online sales tax -aides (Reuters)
U.S. senators could vote as early as next week on legislation that would give states the authority to collect sales taxes from online purchases, Democratic Senate aides said on Wednesday, a significant step forward after years of false starts. Though the legal change provided by the bill has enjoyed bipartisan support for years, previous versions of this legislation have languished in Congress, facing opposition from some online retail companies and lawmakers from both parties.
AdCare Health Systems’ Series A Preferred Shares Cross 10% Yield Mark (Forbes)
In trading on Thursday, shares of AdCare Health Systems, Inc. (NYSEAMEX:ADK)’s 10.875% Series A Cumulative Redeemable Preferred Stock (AMEX: ADK.PRA) were yielding above the 10% mark based on its quarterly dividend (annualized to $2.7188), with shares changing hands as low as $27.15 on the day. As of last close, ADK.PRA was trading at a 13.20% premium to its liquidation preference amount. …In Thursday trading, AdCare Health Systems, Inc.’s 10.875% Series A Cumulative Redeemable Preferred Stock (AMEX: ADK.PRA) is currently off about 0.5% on the day, while the common shares (AMEX: ADK) are up about 40%.
Brogdon Family Plans Tender Offer for AdCare Shares at 86% Premium (WSJ)
Brogdon Family LLC, a Georgia firm partly owned by AdCare Health Systems, Inc. (NYSEAMEX:ADK) director Christopher F. Brogdon, said it intends to make a tender offer to AdCare’s shareholders in an attempt to gain a majority stake of the long-term care provider. Mr. Brogdon and his affiliates plan to offer $8 a share, an 86% premium over Wednesday’s close. Shares surged 51% premarket to $6.48. AdCare manages assisted living facilities, nursing homes and retirement communities in Ohio. It owns all or part of its facilities, including the Hearth & Home assisted living facilities, and also operates a home health care business, Assured Health Care, which offers nursing, therapy and aide services.
AdCare CFO Resigns Position Following Extensive Accounting Errors (SeniorHousingNews)
AdCare Health Systems, Inc. (NYSEAMEX:ADK) Martin Brew resigned as the long-term care provider’s chief financial officer on Monday in relation to extensive accounting errors impacting the company’s financial statements for all of 2012. In March, AdCare announced it would be postponing the release of its financial results for the fourth quarter and year end 2012 and its previously announced conference call discussing the results, originally scheduled for March 27, 2013. The company’s Tuesday statement revealed that its accounting issues extended much further than 2012’s fourth quarter, however.
