Author Archives: Scalper1

AT&T, America Movil Go Mano A Mano In Mexico Spectrum Auction

AT&T ( T )and America Movil ( AMX ) are slated to square off on Monday in an auction of wireless spectrum by Mexico’s government, that nation’s first big airwave auction in five years. AT&T is a newcomer to Mexico’s market. It acquired Mexico’s No. 3 wireless firm, Iusacell, as well as Nextel Mexico out of bankruptcy in January 2015, for a combined $4.4 billion. Controlled by Carlos Slim, America Movil is one of Latin America’s two largest wireless services providers. The other, Spain’s Telefonica ( TEF ), has bowed out of the auction, scheduled to start Monday. “This auction represents an opportunity to continue growing a vibrant and more competitive market and fulfill the goals of telecommunications reform,”  Mariloly Melguizo, an AT&T spokesperson, said in an email. Melguizo declined to comment on how much AT&T might spend. AT&T, however, is expected to spend $8 billion to $10 billion in a much bigger U.S. spectrum auction that could begin late next month. Mexico’s telecom regulator, the Federal Telecommunications Institute, has approved the auction of 80 MHz of airwaves, primarily in bands between 1.7 GHz and 2.17 GHz. The spectrum won’t be available for use until 2018 or later. TracFone-parent America Movil, which sells wireless services under the Telcel brand in Mexico, holds nearly 68% of Mexico’s market, with Telefonica at 19% and AT&T with 13%. Mexico’s government is reviewing whether steps taken two years ago have increased competition. America Movil’s profits have been shrinking. AT&T is spending over $3 billion to upgrade networks. It reported 593,000 wireless subscriber additions in Mexico in Q4, after losing a total of 689,000 the previous three quarters. Image provided by Shutterstock .

Incyte Plummets After Stopping Trial Of Jakafi In Pancreatic Cancer

Biotech Incyte ( INCY ) tumbled to a 15-month low Thursday after it ended a trial of its lead drug in pancreatic cancer, though its Q4 earnings beat Wall Street estimates. Incyte said that it’s ending a phase-three trial of its drug Jakafi, or ruxolitinib, along with capecitabine (also known as Roche ’s ( RHHBY ) Xeloda) as a second-line treatment for advanced metastatic pancreatic cancer, after an interim analysis showed that it would be futile. Jakafi is sold for the blood cancers myelofibrosis and polycythemia vera, but Incyte is studying it in various solid tumors, including lung, breast and colorectal cancer, in combination with Merck ’s ( MRK ) Keytruda (pembrolizumab) and AstraZeneca ’s ( AZN ) Tagrisso (osimertinib), among other things. Incyte said that it will continue these studies despite the trial failure. Incyte also said that its Q4 revenue, which came from a combination of Jakafi sales, royalties and contract revenue, jumped 97% over the year-earlier quarter to $243.9 million. That’s about $18 million above analysts’ consensus, according to Thomson Reuters. Net income was 29 cents a share, reversing a year-earlier loss and soundly beating consensus of 9 cents. The company did not offer revenue or EPS guidance for this year but said that Jakafi sales should be $800 million to $815 million, up from $601 million last year. It forecast R&D expenses of $620 million to $640 million, plus selling, general and administrative expenses of $255 million to $270 million. Incyte stock was near 56, down nearly 23% in morning trading on the stock market today .

Fitbit 2016 Outlook An Exercise In Worry For Investors?

Wearable fitness device maker Fitbit ( FIT ) likely had strong holiday season sales, but investors are worried about its prospects for 2016, Sterne Agee CRT analyst Rob Cihra said in a research report late Wednesday. Fitbit stock sank to an all-time low Thursday amid a broader market sell-off, down more than 8%, near 13.50, in morning trading on the stock market today . Earlier in the day, it traded as low as 12.90. The San Francisco-based company is scheduled to report fourth-quarter earnings on Feb. 22. Cihra reiterated his neutral rating on Fitbit stock but slashed his price target to 18 from 35. The current market is “in less mood to pay a multiple” for Fitbit, he said. Fitbit’s newest products, the Blaze smart fitness watch and Alta fitness wristband, are unlikely to move the needle much, Cihra said. Fitbit’s “next wave” of innovation might require more new sensor technology rather than new wearable designs, he said. The last product cycle for Fitbit was driven by wrist-based heart-rate monitoring, he said. “The reality, however, is coming up with a step-function improvement like wrist-based HR is not something we should probably expect every year,” Cihra said. “A hoped-for function like blood pressure monitoring, for example, looks on the roadmap/horizon but likely still requires a lot more work to shrink necessary mechanics.” Fitbit’s latest products, the Blaze and Alta, are more about growing an accessories business, namely swappable wristbands, he said. Both new products are due out in March. One person bullish on Fitbit is Salesforce.com ( CRM ) CEO Marc Benioff. On Wednesday, regulatory filings revealed that Benioff owns 5.3% of the company, or 5.3 million of the 99 million outstanding shares. RELATED: Fitbit Gets Fashionable With Alta Fitness Wristband .