EnCana Corp. (NYSE:ECA): Enbridge (NYSE:ENB) entered into a midstream services relationship with Encana for the development of gas gathering and compression facilities in the Peace River Arch, PRA, which is a region located in northwestern Alberta, Canada. Enbridge agreed to acquire certain gathering and compression facilities in the PRA region belonging to EnCana, and these facilities are now in service and under construction, with an expected closing date during December 2012. After construction of these facilities is completed during 2013, Enbridge’s total investment in the PRA region will reach nearly $264 million. The financial terms of the agreement to acquire the gathering and compression facilities in the PRA region mostly parallel already established terms between Enbridge and Encana that were reached in 2011. Additionally, Enbridge is working exclusively with Encana on facility scoping to continue the development of more major midstream facilities in this region. Enbridge also has agreed with the other owners of the Cabin Gas Plant development to defer the commissioning of Cabin Phase 1 and construction of Cabin Phase 2. During December 2012, Enbridge is to start receiving the fees for its investment made to date in the Cabin Gas Plant, which will also include costs expended on Phase 2 of the plant facilities. Enbridge is to keep the right to develop, own, and operate all major midstream natural gas processing facilities required by Encana in the Cabin facility. Enbridge believes that its investment in the Cabin and PRA region is to surpass the previous level of capital committed to Cabin Phases 1 and 2.
Apple Inc. (NASDAQ:AAPL): “We’ve got a little more to show you,” says the invitation to the company’s October 23 media event. The word “little” is a reference to event’s main attraction, which will be a smaller version of Apple’s iPad. It may also be a bit of an understatement, as Apple is also expected to reveal its new laptops, new desktops, and other new hardware. For the most part, Apple updates its major hardware lines once per year. Generally, when the update cycle passes a full year, it is almost guaranteed that new products will be released soon.
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Amgen Inc. (NASDAQ:AMGN) was upgraded by Deutsche Bank to “Buy” on Monday, from “Hold,” and the firm has increased its price target from $84 to $108. This new price target indicates a 18 percent rise over the stock’s current price of $88.26, along with a 40 percent increase over the stock’s year to date price of $64.05. A Deutsche analyst stated, “despite a recent move in shares, we continue to see upside as Amgen still trades at a discount to its pharma peers despite better ROE (28% vs 21%), EPS growth (14.8% vs. -0.3%) . We think the co’s dividend will continue to grow closer to the pharma avg over the next 2 years (we model 35-40% dividend growth and a dividend yield of 3% by 2014-ABOVE consensus). Amgen also looks attractive from the biotech view, as the co trades at a 20-30% discount vs its biotech peers despite EPS growth that is only 10% lower than the group.”
V.F. Corporation (NYSE:VFC) consensus is $9.54. The company continues to suggest plans to raise its Q4 global marketing investment over previously expected levels, mainly in The North Face and Vans brands, as a means to capitalize on current momentum, support growth in key strategic regions, and develop and even deeper connection with consumers. Due to a revised assumed euro to U.S. dollar conversion rate of 1.25 during Q4, the full year negative impact of foreign currency translation has now been estimated at 35c per share versus the previous guidance of 42c per share. In 2012, the expected adjusted earnings contribution from Timberland continues to be at $1.10 per share, versus 60c in 2011, and is at about 57c during Q4 compared to 34c during that period in 2011. The impact on earnings from higher pension expense in 2012 continues to be 19c per share.
Orexigen Therapeutics, Inc. (NASDAQ:OREX) has gained a response regarding a formal dispute resolution request from the FDA Center for Drug Evaluation and Research. The response suggests that CDER highly supports that discussions continue about a faster path to resubmit the Contrave New Drug Application. Orexigen has intentions to further explore with the FDA the possibility of resubmitting the Contrave NDA in advance of the interim data from the Light Study, the cardiovascular outcomes trial evaluating Contrave. This scenario data from the planned interim analysis is to be provided during the review period. Although it is necessary to discuss procedural details, the company continues to be optimistic that these discussions could result in a faster path to resubmission of the Contrave NDA.
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