Seeking Alpha

Alex Cho

View as an RSS Feed
View Alex Cho's Comments BY TICKER:
Latest  |  Highest rated
  • Facebook And IBM: Together Can They Build A Smarter Planet? [View article]
    No, business social network is a back-end software that helps employees to better collaborate. It's generic software, and it's purpose is not to provide analytics on real-time data. The type of software I'm referring to is, decision factoring, cost/profit maximization through linear-programming, or pattern recognition.
    Mar 19 05:23 AM | Likes Like |Link to Comment
  • Facebook And IBM: Together Can They Build A Smarter Planet? [View article]
    Well, if Facebook does use Watson for data mining, Facebook may end up reporting better financial results, the question is whether Facebook will explain the qualitative factors that resulted in better revenue figures per users. In my opinion, I don't think Facebook really needs Watson for better data-mining analytics. Rather Facebook may benefit by packaging Watson to advertisers (buy-side), because advertisers are struggling to figure out the best combination of ad-targeting (use of demographics data). Another problem is figuring out the most optimum allocation of ad-budget (display, cost per impression, cost per action, cost per click, use of TV ads, billboard, print).

    Advertisers may need a super computer to help them find unique methods for convincing consumers to click on an ad. At the present moment, people are fascinated by Watson's software, and how it can determine recipes. But, if we could apply the same concept of decision factoring into advertising, by combining the trillions of picture and word combinations, and pair that with real-time click-through analytics, it's likely that IBM's Watson could rapidly iterate a marketing campaign until it reaches a point where ad-costs can be fully minimized, and revenue streams from advertising maximized. This would improve margins, and grow top-line sales. Of course, that's just theory, or what some would call "conjecture." I hope I'm not too far up in the clouds with this, but I'll let you be the judge of that.
    Mar 19 05:14 AM | 1 Like Like |Link to Comment
  • Intel Will Win In Manufacturing Tech, Now What? [View article]
    I said it was an optimistic scenario.
    Mar 17 05:16 PM | Likes Like |Link to Comment
  • Facebook And IBM: Together Can They Build A Smarter Planet? [View article]
    Facebook is the single entirety in the space. When you deal with services on this scale, under the guise of business to business, joint-partnerships through a revenue sharing, and product distribution model are often pursued to leverage the individual strengths of the two organizations.

    Granted, Facebook's revenue model is easy, more click-through = more revenue. More customers using Watson, or Watson software = more revenue, for IBM. Facebook offers Watson along with its ad service, broader distribution for IBM, and better advertisers as a result of using Watson. End result = more revenue for everyone.

    We often think of business as I sell you something. To me, business is about partnerships that lead to value creation. A bad business partnership is one in which only one party benefits, or worse, no one benefits.
    Mar 17 12:32 AM | 1 Like Like |Link to Comment
  • Facebook And IBM: Together Can They Build A Smarter Planet? [View article]
    Thanks, for the unique perspective. I'm not sure if Facebook and IBM would seriously consider a partnership. But I do know that the most common strategy for meaningful bottom line growth globally has been well-thought-out partnerships that offer some form of synergy, or other efficiencies.
    Mar 16 06:14 PM | 1 Like Like |Link to Comment
  • Weighing The Week Ahead: Yellen Takes The Stage [View article]
    Really funny headline analysis, ha ha ha.
    Mar 16 07:02 AM | 4 Likes Like |Link to Comment
  • Kyocera: An Undiscovered Growth Investment [View article]
    Generally, trade-relations between China, Korea, and Japan have been stable. But it seems the trade-agreement that Korea and Japan seem most interested in is the Trans-Pacific trade agreement rather than the ASEAN free trade agreement (one in which China is involved in). So in a sense, it's hard to say, but there's tons of trade between the Asian neighbors. I don't think China, Japan, and South Korea could really risk conflict on the scale of war, considering the sheer amount of economic activity between the three countries.
    Mar 15 11:53 PM | 1 Like Like |Link to Comment
  • Kyocera: An Undiscovered Growth Investment [View article]
    Sure equities fluctuate, I'm not really a short-term position trading type of guy. I prefer buy and hold for 2-5 years, so I tend to ignore short-term moves in equity values.
    Mar 14 06:21 AM | Likes Like |Link to Comment
  • Kyocera: An Undiscovered Growth Investment [View article]
    No worries, hahaha, it's hard to understand humor over the internet. Chinese equities weighing heavily on today's session. I was almost worried you were assuming today's trading was indicative of a longer-term move in this equities valuation that's all.
    Mar 14 03:09 AM | Likes Like |Link to Comment
  • Kyocera: An Undiscovered Growth Investment [View article]
    Kyocera is going to be a great investment TakeFive.
    Mar 13 11:33 PM | Likes Like |Link to Comment
  • Yahoo Core Web Properties Are Undervalued [View article]
    I've seen tech companies move against systematic market risk due to having highly favorable fundamentals. However, you're right in an environment of earnings multiple deflation, Yahoo! could suffer a minor revaluation. However, if the underlying fundamentals outpace the growth assumptions put on by analysts, the company will trade at a significantly higher value, because the intrinsic value of a stock is based on the outward trajectory of its core business. It's why Amazon trades at higher P/S than Wal-Mart even though they operate in essentially the same industry. Even if a recession were to happen, higher growth names will always fetch a higher valuation than lower growth names. The only difference with systematic risk is that it has a residual impact. If Yahoo! is able to outperform, it's likely that the gains will offset the damage incurred by a weaker equity market. In essence, to me at least, growth is king.

    However, I have written macro articles in the past year. My outlook on broader equities remains positive. I think investors need to be accustomed to markets performing closer to the 100-year average return of 9%. It feels weird seeing stocks move up every year, coming out of two massive equity market bubbles in the past 20-years. However, I'm cautioning that just because volatility is a possibility, we can't digress ourselves from the even bigger picture of equity markets generally appreciating at a gradual rate.

    Coming out of a recession, involves a lot of patience, and fear management. Initially everyone is sort of wishy-washy and extremely uncertain. We get back to previous highs, and people are still panicky. Then it's smooth sailing, and we're still panicky. As we continue to progress at a compound growth rate of 9%, over the course of 10-years, you'd easily double the previous market high. It takes a really long period of time to lull markets into complacency. We don't capture the essence of time with a 100-year chart. But we have to rationally recognize that we're in the process of something much bigger a reversion to the mean. And if we're reverting to the mean, we have to get comfortable for a really long car ride before the gas starts running out. In my opinion, the gas tank is more than half full.
    Mar 12 11:29 AM | 1 Like Like |Link to Comment
  • Yahoo Core Web Properties Are Undervalued [View article]
    Well, yeah to me it's whipped cream, because it's a liquid asset that's already factored into the value. The real value was Yahoo's! management team and their effective use of cash. Sure it may be hard to find another Alibaba like investment, however, Yahoo! has one of the best track-records in silicon valley when it comes to investing capital. So, I think the real value doesn't come from the cash value of the deal, but from Yahoo's! use of the proceeds from the Alibaba IPO. It may mean a massive share reduction through share buybacks, paired with a ton of acquisitions that meet a high hurdle rate of return. Then there's also the fact that the core business is cheap when compared to peers, and with some adjustments, it's likely that the core business will generate significant sales growth again.
    Mar 12 11:24 AM | 1 Like Like |Link to Comment
  • Steven Madden: Overvalued At These Levels [View article]
    Congrats on your syndication to PRO.
    Mar 12 09:45 AM | Likes Like |Link to Comment
  • Yahoo Core Web Properties Are Undervalued [View article]
    Thanks for the positive feedback everyone. I'm going to be online for the next 8 hours, so I'll be around to answer questions for the duration of the day folks.
    Mar 12 09:30 AM | 1 Like Like |Link to Comment
  • Valuing Alibaba's IPO [View article]
    Yeah, but Amazon has way lower margins than Alibaba. So your P/S comp isn't completely accurate. Because each incremental sale on the part of Amazon will have a lower conversion to profit, whereas Alibaba can sell substantially less and have a high conversion to profit.

    There are tons of companies that generate more revenue than Apple, but it's because Apple is able to churn out higher profit margins than those higher revenue generating entities, it earns more profit. Because returns more cash to shareholders, Apple is given a significantly higher market valuation.
    Mar 11 10:54 PM | Likes Like |Link to Comment