Stock
13 years ago
SMH tendered for new ETF. The End.
Market Vectors ETF Trust Announces Expiration of Successful Exchange Offers for Six Merrill Lynch-Sponsored HOLDRS
Van Eck Global announced today the expiration of the exchange offers by its Market Vectors ETF Trust for any and all outstanding receipts of six Merrill Lynch-sponsored HOLDRS: Oil Service (OIH), Semiconductor (SMH), Pharmaceutical (PPH), Biotech (BBH), Retail (RTH), and Regional Bank (RKH). The offering period expired, as scheduled, at 11:00 a.m. EST, on December, 20, 2011.
All terms and conditions have been satisfied for each of the six exchange offers. As such, Market Vectors ETF Trust has accepted all tendered HOLDRS associated with the offers. A total of 33,756,917 HOLDRS were validly tendered (and not withdrawn) and accepted by Market Vectors ETF Trust, representing nearly 70% of the value of the aggregate assets of the six Trusts and totaling $2.3 billion (based off todayโs 10:30 a.m. market prices). A breakdown for each is as follows:
Ticker HOLDRS Trust HOLDRS Tendered % of Outstanding HOLDRS
OIH Oil Service 10,203,621 60.71%
SMH Semiconductor 14,320,937 71.02%
PPH Pharmaceutical 5,369,069 70.20%
BBH Biotech 1,565,501 63.69%
RTH Retail 1,157,177 57.34%
RKH Regional Bank 1,140,612 74.52%
โWe are extremely pleased with the outcome, and feel that the exchange offers have provided an important benefit to investors. As weโve stated, we believe that ETFs offer a better investment vehicle when compared to the HOLDRS structure,โ said Adam Phillips, Managing Director of ETFs at Van Eck Global. โThese funds are a great addition to the Van Eck platform and, particularly in the case of OIH, a natural extension of the kinds of products with which we have historically been associated. We are eager to move forward with the launch of this new suite of industry focused ETFs.โ
All owners of validly tendered HOLDRS will be entitled to shares of a new corresponding Market Vectors ETF. The newly created ETFs are expected to begin trading tomorrow, December 21, 2011 under the corresponding HOLDRSโ ticker symbols. The table below presents the ticker symbols, names and underlying indices for each of the six new Market Vectors® ETFs to launch tomorrow.
Ticker
Market Vectors ETF
Market Vectors Index
See links below for Fund related info found at vaneck.com.
See links below for index information found at the index providerโs website, marketvectorsindices.com.
OIH Oil Services ETF US Listed Oil Services 25 Index
(MVOIHTR)
SMH Semiconductor ETF US Listed Semiconductor 25 Index (MVSMHTR)
PPH Pharmaceutical ETF US Listed Pharmaceutical 25 Index (MVPPHTR)
BBH Biotech ETF US Listed Biotech 25 Index
(MVBBHTR)
RTH Retail ETF US Listed Retail 25 Index
(MVRTHTR)
RKH Bank and Brokerage ETF US Listed Bank and Brokerage 25 Index (MVRKHTR)
About the New ETFs
Market Vectorsโ six new ETFs seek to replicate as closely as possible, before fees and expenses, the price and yield performance of Market Vectors Indices. By tracking their respective indices, the new ETFs will provide exposure to highly liquid companies. The index weighting methodology combines market capitalization and trading volume rankings to compile 25 of the largest and most actively traded companies in their respective industries.
Additionally, the new ETFs may include both domestic and U.S.- listed foreign companies. This feature allows for greater industry representation compared to many industry-focused indices which include U.S. domiciled companies only. Many highly recognizable companies in these industries are based outside of the U.S., particularly in Oil Services, Semiconductor and Pharmaceutical.
The indices are capitalization-weighted and require constituents to be listed on a U.S. exchange and derive the majority of their revenues from their respective industry. Each index will have 25 constituents with weightings rebalanced quarterly.
The launch of these ETFs underscores Van Eckโs commitment to industry-focused investment themes and the ongoing evolution of the firmโs product offerings. Van Eck currently offers a broad lineup of specialized hard asset ETFs as well as industry ETFs focused on global gaming, environmental services and mortgage REITs. In addition, it offers international equity, fixed income and municipal bond ETFs.
Each of the new Market Vectors ETFs carry a gross expense ratio of 0.47% and a net expense ratio of 0.35%, with expenses capped at 0.35% at least until May 1, 2013 (excludes certain expenses, such as interest).
About Market Vectors
Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and manages approximately $30.8 billion in investor assets as of September 30, 2011.
Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 and span many asset classes, including equities, municipal bonds and other fixed income as well as currencies. The Market Vectors family currently totals $21.7 billion in assets under management, making it the sixth largest ETF family in the U.S. and the ninth largest worldwide as of September 30, 2011.
Important Disclosure
All information in this material (other than opinions or expectations) concerning applicable HOLDRS, including their business and operations, was provided by Merrill Lynch & Co., Inc. All information in this material concerning Van Eck ETFs, including its business, operations and financial results, was provided by Van Eck. Information on HOLDRS assets under management and trading volume was sourced from Bloomberg.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a new ETF carefully before investing. Please read the prospectus and summary prospectus carefully before investing.
Investors may obtain free copies of the prospectus and summary prospectus, and other documents filed with the SEC at the SECโs web site at www.sec.gov. In addition, free copies of the prospectus and summary prospectus, and other documents filed with the SEC may also be obtained by directing a request to: Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017 or by calling: 800.826.2333 or visiting vaneck.com/holdrs.
The indexes referred to herein are published by and are the exclusive property of Market Vectors Index Solutions GmbH, which has contracted with Structured Solutions AG to maintain and calculate the Indexes. Structured Solutions AG uses its best efforts to ensure that the Indices are calculated correctly. Structured Solutions AG has no obligation to point out errors in the Indices to third parties.
Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017
rayrohn
16 years ago
7:20 Semiconductor Components Distributor Shipments See Steep Declines in Nov - FBR
Friedman Billings notes recent checks with Asian chip distributors were worse than their prior expectations, reflecting continued global demand weakness. In terms of specific companies, they believe shipments from Texas Instruments (TXN), Microsemi (MSCC), and AMD (AMD) were down as much as 20%-30% MOM in November, likely impacted by these firms' 'sell-in' revenue recognition methodology. Their contacts said that DRAM pricing should continue to decline through this spring, and said that further production cuts need to come from Samsung and Micron (MU) in order for pricing to stabilize in 2H09. NAND flash pricing was also under considerable pressure, but was relatively better off than DRAM given higher exposure to faster growth markets such as netbooks, smartphones, and game consoles. Overall, inventories have actually increased by three to five days from October due to lower-than-expected sales and stricter accounts receivable controls. For 1Q09, their contacts expect a 15%-20% sequential decline in distributor shipments. They believe a fundamental bottom may form in 1H09, and that distributors may replenish component inventories sometime this summer, providing an industry catalyst in 2H09. Their preferred longs, in order of preference, include ONNN, MRVL, MSCC, SLAB,
rayrohn
16 years ago
Standard & Poor's Rating Change
Forecast: We project that revenues will advance 1.6% in 2008, reflecting our outlook for solid sales growth from the storage semiconductor and systems business, supported by new product cycles. In addition, we see market share gains in hard disk drive (HDD) semiconductor products due to the completed acquisition of Infineon Technologies' HDD business and new design wins. For 2009, we forecast revenues will decline 17.1%, on our view of a weak IT spending environment amid the difficult economy. We expect non-GAAP gross margins of 46.8% in 2008 and 46.6% in 2009, wider than the 45.9% in 2007, reflecting our expectation of better cost absorption from higher sales and improved product mix. LSI has been making progress in integrating Agere Systems, in our opinion, and we think that synergies will reduce expenses in 2008. However, we forecast expenses will de-leverage in 2009 on lower sales that we anticipate. As a result, we project the operating margin will improve to 8.1% in 2008, versus 7.5% in 2007, but then decline to 5.7% in 2009. Our operating EPS estimates are $0.31 for 2008 and $0.17 for 2009, excluding one-time acquisition-related charges, compared to $0.18 in 2007.