Kotor Baju

Kamis, 02 Mei 2019

Tesla raising $2 billion with Elon Musk planning to buy $10 million in stock - CNBC

GP: Elon Musk, chief executive officer of Tesla Inc., speaks during an event at the site of the company's manufacturing facility in Shanghai, China, on Monday, Jan. 7, 2019.

Qilai Shen | Bloomberg | Getty Images

Tesla said in a filing on Thursday that it would raise up to $2 billion, with $650 million coming in the form of new equity and $1.35 billion in convertible notes.

CEO Elon Musk signaled the intent to buy about $10 million of the company's stock in the new offering. The total equity offering is for 2.7 million shares of Tesla. Musk's purchase would be 41,896 shares. Before the offering, Musk owned about 20% of Tesla's outstanding shares, worth about $12.6 billion, according to FactSet.

The move comes only a week after Musk deferred on questions about the company raising capital any time soon.

"I don't think raising capital should be a substitute for making the company operate more effectively," Musk told shareholders on the company's quarterly conference call. "I do think there is some merit to raising capital, but this is sort of probably about the right timing."

Musk was pressed by Wall Street analysts on the call on the topic, as Tesla burned through around $2 billion in cash in the first quarter of 2019.

Tesla shares fell earlier in premarket trading when the company put out an initial filing indicating it would be offering a mix of debt and equity securities. The stock then reversed course and was last trading 5.7% higher when a second filing revealed details of the offering, including Musk's interest in buying a block of the new shares.

Musk's purchases have been reliable short-term buy signals for the stock in the past, according to InsiderScore.com. Following the last 5 purchases by Musk, the shares were higher on average by 41% in the next three months, according to InsiderScore.

Shares of the controversial electric automaker have been under pressure lately, down nearly 30% from the beginning of the year. The stock's surge following the filing came from "the fact that they ripped off the band aid and decided to raise the capital," Dan Ives, managing director of equity research at Wedbush Securities, told CNBC.

"There was growing fears that this company was going to need incremental cash going to the second half of the year. For the first time, they listened to investors and the math doesn't lie in terms of what they needed to do," Ives said. "Now there's a relief because the liquidity issue and the finance concern could be put to rest in the near term."

The offering is being underwritten by Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, Morgan Stanley, Credit Suisse, Societe Generale and Wells Fargo.

– CNBC's Yun Li contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/02/elon-musk-may-buy-10-million-of-tesla-stock-in-new-offering.html

2019-05-02 12:18:40Z
52780282026818

Tesla files for offering to raise capital - CNBC

NEW YORK, NY - APRIL 4: Tesla CEO Elon Musk arrives at federal court, April 4, 2019 in New York City. A federal judge will hear oral arguments this afternoon in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) that seeks to hold Musk in contempt for violating a settlement deal. (Photo by Drew Angerer/Getty Images)

Drew Angerer | Getty Images News | Getty Images

Tesla filed for a mixed shelf offering for an undisclosed amount on Thursday, a week after Chief Executive Officer Elon Musk suggested a capital raise could be imminent.

Many analysts had predicted the electric-car maker would need to raise funds for its expansion, including building a factory in Shanghai, the upcoming Model Y SUV, and other projects.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/02/tesla-files-for-offering-to-raise-capital.html

2019-05-02 11:10:18Z
52780282026818

Tesla files for a shelf offering to raise capital - CNBC

Drew Angerer | Getty Images News | Getty Images

Tesla filed for a mixed shelf offering for an undisclosed amount on Thursday, a week after Chief Executive Officer Elon Musk suggested a capital raise could be imminent.

Many analysts had predicted the electric-car maker would need to raise funds for its expansion, including building a factory in Shanghai, the upcoming Model Y SUV, and other projects.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/02/tesla-files-for-offering-to-raise-capital.html

2019-05-02 11:08:36Z
52780282026818

US futures signal a muted open after Powell comments send stocks lower - CNBC

U.S. stock index futures edged higher on Thursday morning, as market participants digested comments from the Federal Reserve.

Around 6:20 a.m. ET, Dow futures indicated a positive open of about 30 points. Futures on the S&P and Nasdaq were both marginally higher.

Wall Street closed lower on Wednesday on the back of new comments from Chairman Jerome Powell. The central bank kept rates unchanged, but it dented some speculation about a potential rate cut on the horizon.

Ahead of the meeting, President Donald Trump had asked the central bank to cut rates and increase stimulus.

In the corporate world, Kellogg, Under Armour, CBS, Expedia, and Gilead Sciences are due to report.

On the data front, there will be jobless claims, productivity data, and unit labor costs at 8:30 a.m. ET, followed by factory orders at 10 a.m. ET.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/02/stock-market-traders-digest-fed-comments-earnings-and-jobless-data.html

2019-05-02 07:36:41Z
52780279113732

VW profits meet expectations, warns of rising economic risks - CNBC

The Volkswagen logo is displayed at Serramonte Volkswagen on November 18, 2016 in Colma, California.

Justin Sullivan | Getty Images

Volkswagen reported first-quarter earnings in line with expectations on Thursday, as the automaker attempts to increase the pace of its transformation.

The German firm posted operating profit of 3.9 billion euros ($4.4 billion) for the first three months of the year. That compared with operating profit of 4.2 billion euros a year earlier. Analysts polled by Reuters had expected first-quarter operating profit to come in at 3.9 billion euros.

Volkswagen, which is still battling to recover from a 2015 scandal over emissions test cheating, also said it had decided to take a 1 billion euro charge in the first quarter, as a result of legal risks.

"It is certainly very unfortunate that we had to book more provisions but we assess every single risk and exposure we have continuously and it was the point in time to make those provisions," Frank Witter, chief financial officer of Volkswagen, told CNBC's "Squawk Box Europe" on Thursday.

The company confirmed its full-year guidance and said it expected sales to increase as much as 5%. It projected an operating return on sales between 6.5% and 7%.

Revenue advanced 3.1% to 60 billion euros for the first three months of 2019, despite a drop in deliveries.

The company did not provide a net profit figure.

'Optimistic but realistic' over potential US tariffs

Earlier this year, Volkswagen CEO Herbet Diess said the carmaker would need to redouble its efforts in 2019 in order to meet its ambitious annual targets.

Diess told the Financial Times in February that the biggest risk to Volkswagen's 2019 profit would be potential tariffs from President Donald Trump's administration.

At the time, he estimated the worst-case scenario regarding potential U.S. tariffs could cost around 2.5 billion euros a year — roughly 13% of expected earnings.

"We certainly hope that the trade disputes can be resolved but it is no secret that 100% of the Porsche cars are being exported from Europe to the United States," Witter said.

He explained that approximately 70% of all Audi products were sold in the U.S., while for Volkswagen passenger cars it was a very small percentage being exported from Europe to the U.S. since most of their cars were built in North America.

"So, we still hope for the best, we do whatever we can but we are not party to the negotiations … We continue to be optimistic but also realistic," Witter said.

In February, Trump said he would impose tariffs on cars imported from the European Union if U.S. talks with the bloc can't produce a new deal. The EU has since threatened to tax 20 billion euros ($22 billion) worth of U.S. goods.

Both sides have cautiously hung on to existing agreements, promising to take no action until talks are concluded.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/02/volkswagen-earnings-q1-2019.html

2019-05-02 05:56:08Z
CAIiEDJV2QUX7OnEMSyxruQSC-cqGQgEKhAIACoHCAow2Nb3CjDivdcCMN_4ngY

Rabu, 01 Mei 2019

S&P 500 soars to record as Apple becomes $1T company - Fox Business

The S&P 500 hit an all-time high Wednesday as surging Apple shares turned the iPhone maker into a $1 trillion corporation.

Apple reached that milestone when, in intraday trading, shares reached $212.07.

Ticker	Security	Last	Change	%Chg
AAPL	APPLE INC.	214.08	+13.41	+6.68%

Stocks also got a boost from a surprisingly strong ADP report on April job creation. ADP said U.S. employers created 275,000 jobs, far higher than the 180,000 analysts had expected.

Wall Street's gains came ahead of an interest rate announcement by the Federal Reserve, which is expected to hold the cost of money steady.

MORE FROM FOXBUSINESS.COM ...

Without Apple, which had added about 100 points to the Dow Jones Industrial Average in midday trading, the index would be slightly negative.

Energy companies and Google were weighing on indexes.

Ticker	Security	Last	Change	%Chg
GOOGL	ALPHABET INC.	1,174.18	-24.78	-2.07%
XOM	EXXON MOBIL CORPORATION	79.41	-0.87	-1.09%
CVX	CHEVRON CORP.	118.73	-1.33	-1.11%
OXY	OCCIDENTAL PETROLEUM CORPORATION	58.26	-0.62	-1.05%

Crude oil fell to $62.94 per barrel as U.S. inventories rise sharply. The Energy Information Administration said the nation's crude oil inventory jumped by 9.9 million barrels last week to 470.6 million barrels.

Treasury yields were fractionally lower ahead of the Fed's announcement on interest rates, which was set for 2 p.m. ET.

Ticker	Security	Last	Change	%Chg
I:DJI	DOW JONES AVERAGES	26606.72	+13.81	+0.05%
SP500	S&P 500	2945.23	-0.60	-0.02%
I:COMP	NASDAQ COMPOSITE INDEX	8123.050188	+27.66	+0.34%

Investors are coming off a big trading day: The S&P 500 on Tuesday notched a record high for the third straight session on unexpectedly strong quarterly results from General Electric and biopharmaceutical company Pfizer.

CLICK HERE TO GET THE FOX BUSINESS APP

Many bourses outside the U.S., including those in China, Korea and Japan, as well as continental Europe, were closed Wednesday for May Day observances.

One exception is Britain’s FTSE 100, which slipped 0.03 percent.

Let's block ads! (Why?)

https://www.foxbusiness.com/markets/us-stocks-wall-street-may-1-2019

2019-05-01 15:44:32Z
CBMiRGh0dHBzOi8vd3d3LmZveGJ1c2luZXNzLmNvbS9tYXJrZXRzL3VzLXN0b2Nrcy13YWxsLXN0cmVldC1tYXktMS0yMDE50gFIaHR0cHM6Ly93d3cuZm94YnVzaW5lc3MuY29tL21hcmtldHMvdXMtc3RvY2tzLXdhbGwtc3RyZWV0LW1heS0xLTIwMTkuYW1w

CVS Health raises full-year profit forecast on Aetna strength - Yahoo Finance

FILE PHOTO: Logos of CVS and Aetna are displayed on a monitor above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 5, 2017. REUTERS/Lucas Jackson/File Photo

By Manas Mishra and Caroline Humer

(Reuters) - CVS Health Corp on Wednesday raised its full-year profit forecast and reported first-quarter earnings that topped Wall Street estimates due to growth in its Aetna health insurance business, and as drug prices fell within its expectations.

Shares rose more than 5 percent to $57.35. They had fallen 17 percent this year, hurt by a weak forecast in February and a cut to rival Walgreen Boots Alliance's full-year outlook last month due to lower generic drug prices.

Aetna, CVS's health insurance unit, beat analysts' consensus by more than a billion dollars in the quarter, helped by its accounting for lower medical costs than anticipated during the fourth quarter.

The company, which bought Aetna for $69 billion in November, said 2019 cost savings from the deal were tracking near the high end of its $300 million to $350 million range, and that 2020 savings would likely exceed its $750 million target.

The company said a handful of new "HealthHub" pharmacies launched in Houston this year that provide healthcare services, such as chronic care management for diabetes, have drawn more customers than expected. It plans to launch more such stores in Houston and plans to provide details of a national roll-out next month.

"Consumerism in healthcare is here to stay," CVS Chief Executive Larry Menlo said. "We are beginning to see this evolution through the HealthHubs. We are not just selling hundreds of products, it's a combination of products and services."

Menlo also said the company would take part in a pilot project announced by the U.S. Center for Medicare and Medicaid Services to expand point-of-sale rebates to patients in Medicare plans. The government has also proposed a rule that would require health plans to pass on all rebates, but it is not clear if it will be finalized for 2020.

Sales in its health care benefits unit rose by $16.55 billion to $17.78 billion with the addition of Aetna to its operations.

Sales of prescription drugs at its pharmacies were hurt as the company gets paid less for filling prescriptions. That was offset by higher volumes and higher prices of brand name drugs.

CVS in February had cautioned that rebate payments it guaranteed to customers were larger than what it has received from drugmakers due to lower-than-expected increases in drug prices.

"Considering that expectations have been low, we see this as the first positive catalyst that restores investor confidence in this management team," SVB Leerink analyst Ana Gupte said of the first-quarter profit and raised 2019 forecast.

CVS said it now expects full-year adjusted profit of $6.75 to $6.90 per share, compared with its prior forecast of $6.68 to $6.88.

Overall sales at its retail unit, which also sells over-the-counter-drugs and consumer health products, rose 3.3 percent to $21.12 billion.

The drugstore chain operator and pharmacy benefits manager said it earned $1.62 per share excluding items, beating analysts' average estimate by 12 cents per share, according to IBES data from Refinitiv.

Net income rose 42.4 percent to $1.42 billion in the first quarter. Revenue rose 34.8 percent to $61.65 billion.

(Reporting by Manas Mishra in Bengaluru and Caroline Humer in New York; Editing by Saumyadeb Chakrabarty and Bill Berkrot)

Let's block ads! (Why?)

https://finance.yahoo.com/news/cvs-health-beats-profit-estimates-113232865.html

2019-05-01 15:24:00Z
52780282867446