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Charles Cooper

 
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  • AMD: Geeks Gone Wild [View article]
    http://bit.ly/I6XWC9
    "Thank you for your email. You are correct; our wafer purchase commitment to Global Foundries is ~$400M in Q4 2013. As we indicated on our October earnings call, we are on track to meet that commitment and indicated that our inventory levels in the 4th quarter would be flat from Q3 levels. We believe this inventory level is appropriate to support our business, as we’ve seen strength from our high-end A8/A10 APUs, our recently launched R7/R9 GPUs and the continued semi-custom production. We will also begin shipping Kaveri, our next-generation desktop APU in the 4th quarter."
    Nov 21, 2013. 01:43 PM | Likes Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    Will do
    Nov 21, 2013. 01:40 PM | Likes Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    I'll look at this in a follow up article.
    Nov 20, 2013. 06:29 PM | 1 Like Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    @Ashraf
    I thought you were bullish on AMD now?
    Nov 20, 2013. 06:25 PM | Likes Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    Thanks Justin! Big fan of your articles btw.
    Nov 20, 2013. 12:48 PM | 1 Like Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    AMD Pulls In $100 For Every PS4 Sold http://zd.net/1hXg1Cg
    Nov 20, 2013. 12:28 PM | 4 Likes Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    Thanks for all the positive feedback! Please let me know if there are any specific areas you would want me to write about in a follow up article.
    Nov 20, 2013. 10:26 AM | 3 Likes Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    "Already 2/3 of all chips/SOCs sold in the world are made by the members of the HSA Foundation, so my bet is on them."

    Paranoid BearBullMan, where did you get that number? Thanks for the information.
    Nov 20, 2013. 10:24 AM | 3 Likes Like |Link to Comment
  • AMD: Geeks Gone Wild [View article]
    You're speaking to another developer! Did you see the HSAIL (HSA Intermediate Language) spec? http://bit.ly/18PECQ0. Very nice stuff. There is work for even the Java runtime to target HSAIL, cf. http://bit.ly/18PEEal, so the developer masses will be able to accelerate their code with very little work.
    Nov 20, 2013. 10:21 AM | 5 Likes Like |Link to Comment
  • Using Statistics To Detect Deleveraging In Apple Stock [View article]
    Thanks for the compliment. I haven't used the common definition here, but actually my definition is fully equivalent. Normally people just talk about beta between a security and an index, but I use it more generally to measure the relationships between arbitrary securities. You can read more about alpha and beta here: http://bit.ly/YXFxxI), and here: http://bit.ly/r6Mb0E).
    Feb 7, 2013. 07:41 PM | 2 Likes Like |Link to Comment
  • How Scalable Is Rackspace? [View article]
    Thanks for the suggestion! I don't like setting price targets because it's too easy to fudge it to make it seem more reasonable w.r.t. the current price. Also, the market is totally irrational and things never hit price targets for more than a day anyways.

    That being said, it is good to have a more specific valuation of the business besides that 'it is generally overvalued.' I think that the proliferation of thousands of smaller hosting companies throughout the country with similar customer support and better computing at lower cost will have a definite impact on RAX's margins. I see margins shrinking to 1-2% in the best case, and to unprofitability in the worst. I expect the Street to be surprised by this and punish their stock price by a factor of 2 or more.

    There are a number of unknowns in this equation, in particular the board's reaction and whether they choose to be competitive or not. I'll have to go over the details more carefully in another article!
    Feb 7, 2013. 11:35 AM | Likes Like |Link to Comment
  • Intel In Mobile: Large R&D Makes Victory Inevitable [View article]
    Well written.
    Feb 6, 2013. 10:30 PM | Likes Like |Link to Comment
  • Levered To The Eyeballs [View article]
    Serious logical flaw in your presentation here. Margin debt is higher, BUT SO IS FREE CREDIT. "Free Credit: When a customer sells stock in a margin account (or a cash account), they are considered to have a free credit. This is essentially just another name for cash. This free credit balance is available to the customer to do with what they please. (http://bit.ly/12rtyth)" That means there is more cash sitting around, and more short positions. You might as well take the fact that THERE IS MORE INVESTABLE CASH THAN ANY PERIOD SINCE 2010 as a bullish sign for the market.
    Feb 5, 2013. 08:59 PM | Likes Like |Link to Comment
  • How Scalable Is Rackspace? [View article]
    Napier does not strike me as the type that is going to sell his company. Why would he at this point? He practically built it from the ground up. He loves his company and employees, and his stock is doing well. Maybe he would for the right price, but I don't think that is his style.

    Besides, potential buyers I can think of (DELL, MSFT, IBM, etc) are already focused on making their own platforms, and are probably not interested in RAX's comparatively small user base and revenue stream. It is not like RAX has special technology that they don't have the capacity to replicate.
    Feb 5, 2013. 05:33 PM | Likes Like |Link to Comment
  • How Scalable Is Rackspace? [View article]
    Interesting point. LNKD has increased revenue more than 5 times from 2008-2011. FB 15 times from 2008-2011. Also, FB's P/E is a little misleading this year since they had to pay a bunch of IPO related fees/taxes last quarter. I don't know much about VZ, but their profit margin shrank a lot, presumably due to new investments they are making.

    FB and LNKD have had profit margins of 8.6% and 2% respectively for the 12 months ending in 09/2012. I expect their future revenues and margins to increase because FB and LNKD are well-respected brands, and their future product line will likely consist of value add products.
    
    In contrast, RAX 'only' increased revenues by a factor of 2 in the same time. The market apparently disagrees with me on this, but I expect margins to shrink in the future because the cloud space only gets more competitive, which will force them to spend more on compute costs. For example if they increase their compute spending to the same level as AMZN, they will be operating at a loss. I also just don't see their big deal, OpenStack, really increasing their value add, and it remains to be seen whether it is really a competitive product. So there is nothing wrong with a P/E of 105 per se, I just don't think it is justified in this case.
    Feb 5, 2013. 05:10 PM | 1 Like Like |Link to Comment
COMMENTS STATS
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