Hexo’s stock plunges after revenue warning, 2020 outlook withdrawn
Shares of Hexo Corp. HEXO, -25.27% plunged 13% toward a 10-month low in premarket trading Thursday, after the Canada-based cannabis company warned of a fiscal fourth-quarter revenue shortfall, citing "lower than expected product sell through." The company said it was also withdrawing its fiscal 2020 financial outlook, as "regulatory uncertainty" and jurisdictional decisions to limit the availability and types of cannabis derivative products have led to an "increased level of unpredictability." The company expects revenue for the quarter to July 31 of C$14.5 million to C$16.5 million ($10.9 million to $12.4 million), below the FactSet consensus of C$24.8 million. "Slower than expected store rollouts, a delay in government approval for cannabis derivative products and early signs of pricing pressure are being felt nationally," the company said in a statement. "The delay in retail store openings in our major markets has meant that the access to a majority of the target customers has been limited." The company plans to reveal fourth-quarter results on Oct. 24. The stock has tumbled 27.8% over the past three months through Wednesday, while the ETFMG Alternative Harvest ETF MJ, -4.03% has shed 35.8% and the S&P 500 SPX, +0.60% has lost 2.5%.
Ranbaxy’s former promoter Shivinder Singh arrested in fraud case
In August, the ED had raided the residential premises of former Ranbaxy CEO Malvinder Mohan Singh and his brother Shivinder Singh in connection with a money laundering case.
Economic Offences Wing of the Delhi police has arrested Ranbaxy’s former promoter Shivinder Singh and three others, based on a complaint given by Religare Enterprises Limited.
The company has accused them of diverting funds and misappropriation.
Earlier in August this year, the Enforcement Directorate (ED) raided the residential premises of former Ranbaxy CEO Malvinder Mohan Singh and his brother Shivinder Singh in connection with a money laundering case.
The raids were conducted after the ED registered a case under the Prevention of Money Laundering Act (PMLA) against them.
In February last year, the two brothers, who were also the promoters of Fortis Healthcare, had tendered their resignation from the company’s Board of Directors.
European Economics Preview: UK GDP Data Due
Monthly GDP data from the UK and foreign trade from Germany are due on Thursday, headlining a busy day for the European economic news.
At 2.00 am ET, Destatis is scheduled to issue Germany’s foreign trade data. The trade surplus is seen at EUR 18.6 billion in August versus EUR 21.4 billion in July.
In the meantime, consumer and producer prices are due from Norway. Inflation is expected to slow to 1.5 percent in September from 1.6 percent in August.
At 2.45 am ET, France’s statistical office Insee publishes industrial production data. Economists forecast production to grow 0.3 percent on month in August, the same pace of increase as seen in July.
At 3.00 am ET, consumer prices from the Czech Republic and industrial output from Slovakia are due.
At 3.30 am ET, Statistics Sweden is set to issue monthly inflation data for September. Inflation is forecast to slow slightly to 1.3 percent from 1.4 percent in August.
At 4.00 am ET, Istat releases Italy’s industrial production data for August. Production is seen rising 0.2 percent on month, in contrast to a 0.7 percent fall in July.
At 4.30 am ET, the Office for National Statistics publishes UK GDP data. The economy is forecast to remain flat on month in August, following a 0.3 percent rise in July.
UK industrial and services output are expected to remain unchanged on a monthly basis in August.
At 7.00 am ET, the European Central Bank is scheduled to issue the account of the monetary policy meeting of the governing council held on September 11 and 12.
Britain and Ireland see pathway to possible Brexit deal
LONDON (REUTERS) – A Brexit deal remains possible, Britain and Ireland said on Thursday (Oct 10) in a statement issued following talks between British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar.
“The Prime Minister (Johnson) and Taoiseach (Varadkar) have had a detailed and constructive discussion,” the joint statement said.
“Both continue to believe that a deal is in everybody’s interest. They agreed that they could see a pathway to a possible deal.”
U.S. Treasury to sell $17 bln in 5-year TIPS
NEW YORK, Oct 10 (Reuters) – For details of the U.S. Treasury’s auctions of 5-year TIPS next week, see:
UnitedHealth downgraded, stock price target cut to Street low at Jefferies
UnitedHealth Group Inc. UNH, -0.04% was downgraded by Jefferies analyst David Windley, citing concerns over competition from Anthem Inc. ANTM, -0.43% and and margins related to Medicare Advantage pricing. Windley cut his rating to hold from buy, and dropped his stock price target by 22% to $235 from $300. Windley’s target is now the lowest among the 26 analysts surveyed by FactSet, making him the least bullish on the healthcare services company. Windley said Anthem’s strategy to regain market share in the commercial group risk market "is showing traction," likely at UnitedHealth’s expense. That suggests there is "more downside risk" to expectations when UnitedHealth management comments on the outlook for 2020. The company is scheduled to report third-quarter results on Oct. 15. UnitedHealth’s stock edged up 0.1% in morning trading, while the Dow Jones Industrial Average DJIA, +0.60% rallied 157 points, or 0.6%. Windley also slashed his stock price targets on several other managed care organizations (MCOs), writing in a note to clients at that, "The primary poison in the punch bowl, political risk, won’t likely abate for at least another 9 months."