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Dana Blankenhorn

 
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  • GE Problems Are Structural But Are They Permanent
    Yesterday, 11:18 AM GE 19 Comments

    Summary

    • GE's strategy does not work in an atmosphere of low interest rates.
    • GE is not changing its industrial strategy. In fact it's accelerating it.
    • Wait for interest rates to rise before nibbling at this name.
  • IBM's Problems May Be Fatal
    Yesterday, 10:47 AM IBM 52 Comments

    Summary

    • IBM has put itself into the high-end corporate niche, where profit margins are shrinking.
    • IBM may be failing within that niche.
    • Financial engineering will no longer cover it up especially if interest rates rise.
  • The Big Microsoft Move Just Not Justified
    Mon, Aug. 18 MSFT 28 Comments

    Summary

    • Microsoft shares are up, but Microsoft is not growing in sales or profits.
    • Microsoft has a lot of divisions that are losers, and others that are threatened.
    • Microsoft needs to move into cloud applications, but even that may not turn the ship around. Sell.
  • Now Is The Time To Speculate On Sprint
    Fri, Aug. 15 SFTBY, S 22 Comments

    Summary

    • Only $4 billion of Sprint's market cap is available to trade.
    • Sprint has finished the bulk of its network upgrades.
    • Sprint's new CEO knows how to sell.
  • Amazon No Threat To Visa
    Fri, Aug. 15 AXP, DFS, HPY 16 Comments

    Summary

    • Amazon's new credit card dongle is an extension of an existing business model.
    • Amazon is not becoming a bank.
    • Amazon is not becoming a merchant processor. In fact it's helping its own processor.
  • The Coming Cloud Crash
    Tue, Jul. 29 CTL, GOOG, HPQ 11 Comments

    Summary

    • Containerization is bringing the end of the cloud boom closer.
    • Leaders like Amazon and Google continue to spend furiously to bring a crash on.
    • The crash will take out many of the cloud industry's laggards and hasten consolidation.
  • The Purpose Of EMC's Equity Games
    Mon, Jul. 21 EMC 9 Comments

    Summary

    • It's true that the pieces are worth more than the whole.
    • Spinning off the pieces loses the synergy that gives them long-term value.
    • EMC is presently the cheapest cloud play there is for small investors.
  • How Much Is Amazon.com Worth Now?
    Thu, Jul. 17 AMZN 37 Comments

    Summary

    • The market was wrong at $400, but just as wrong at $300.
    • At its present run rate sales should match $91 billion this year.
    • A 2-1 price to sales ratio is not unreasonable for what is increasingly a tech stock.
  • Winners And Losers In The IBM-Apple Deal
    Wed, Jul. 16 AAPL, AMZN, HPQ 23 Comments

    Summary

    • Traders are now seeing both IBM and Apple as undervalued.
    • Investors may not yet be correctly seeing negative implications for other players.
    • Intel may be the biggest loser, Amazon a wild card.
  • Finding The New Microsoft In The Nadella Memo
    Mon, Jul. 14 MSFT 14 Comments

    Summary

    • Microsoft is clearly favoring Office applications over the Windows operating system.
    • The cloud strategy could reduce the legacy debt customers owning client-server systems now face.
    • Nadella's refusal to dump Surface or Windows Phone remains troubling.
  • Red Hat Is A Cloud Services Company
    Fri, Jul. 11 RHT 1 Comment

    Summary

    • Analyzing Red Hat as a software or open source company has proven incorrect.
    • Red Hat is a cloud services company growing at a steady rate of 11% per year, and profitably so.
    • It is a great choice on market weakness and a good takeover candidate down the road.
  • Alcoa Makes The Turn, Aluminum Is The New Steel
    Wed, Jul. 9 AA 12 Comments

    Summary

    • Alcoa surprised analysts with earnings of 18 cents per share.
    • The big gains came in engineered products for airplanes and engines.
    • The need for energy efficiency means the gains are sustainable.
  • Is Intel's Momentum Sustainable?
    Tue, Jul. 8 INTC 20 Comments

    Summary

    • Intel is up almost 30% this year, 10% in the last month.
    • Most of the gains are based on unproven speculation concerning PC sales.
    • If the July 15 earnings are poor, buy the dip.
  • Is Yahoo More Than Alibaba?
    Mon, Jul. 7 BABA, YHOO 17 Comments

    Summary

    • Despite 38 acquisitions under Marissa Mayer, Yahoo has shown no organic growth.
    • Analysts remain hopeful, because they believe Alibaba is worth more than many think.
    • An earnings fail could put this on your short list.
  • 2014 Is Fitness Mania But We're Not Invited
    Thu, Jul. 3 BAX, BSX, GOOG 4 Comments

    Summary

    • The best plays aren't public and won't be until they're played out.
    • Apple has proven it is best at monetizing the consumer space.
    • Look closely for FDA approvals.
  • IBM Running Out Of Easy Ways To Keep The Shareholders Satisfied
    Wed, Jul. 2 IBM 38 Comments

    Summary

    • IBM sales and profits are on a downhill run.
    • The company is masking its problems with happy talk and cost-cutting.
    • This kind of story seldom ends well.
  • How Microsoft Is Out-Gaining Google And Could Soon Outgrow It
    Wed, Jun. 4 AMZN, CRM, GOOG 19 Comments

    Summary

    • Microsoft has suddenly shown flexibility.
    • Windows 9 has a huge opportunity for profitable growth.
    • Microsoft is innovating again.
  • There Is More Alibaba Magic In Sprint Than Yahoo
    Thu, Apr. 17 TMUS, YHOO, BABA 16 Comments

    Summary

    • Yahoo's stake in Alibaba is fully valued at current prices.
    • Softbank's stake in Alibaba can fund Sprint's ambitious plans.
    • By driving out T-Mobile and spending over $6 billion/year, Sprint can kill the Verizon-AT&T duopoly.
  • Netflix, AT&T And The Net Neutrality Scam
    Wed, Mar. 26 BT, DIS, FOXA 6 Comments

    Summary

    • Netflix claims it favors net neutrality even while it saves money buying bits from Comcast.
    • Comcast has vertical integration. It owns the bits as well as what they contain.
    • This gives Comcast huge advantages over both content outfits like Netflix and phone rivals like AT&T.
  • 3-D Printers Take A Water Break
    Mon, Mar. 24 DDD, GE, HPQ 7 Comments

    Summary

    • 3D Printer companies are vulnerable to market momentum shifts.
    • But this is early in the market's development. Validation has just begun.
    • Patience will be rewarded if you get in when the charts say it's a low. Like now.
  • It's 1997, Not 1999
    Mon, Mar. 17 AAPL, AMZN, AXP 18 Comments

    Summary

    • Just because we're at new highs does not mean we're ready for a fall.
    • Speculative bubbles will rise and pop. Play them carefully.
    • Big names that know their business will rise.
  • What Plug Power, FuelCell Mean
    Thu, Mar. 13 FCEL, PLUG 75 Comments

    Summary

    • Fuel cells are a real business early in its evolution.
    • These early leaders are highly speculative.
    • Someone is going to win, and investors will want to wait to see who does.
  • IntercontinentalExchange: Bet On The Dealer
    Wed, Mar. 12 ICE 6 Comments

    Summary

    • IntercontinentalExchange now owns the NYSE.
    • That's just one piece of its action.
    • The play is a global transaction processor, dealing with all kinds of instruments, for volatile and smooth markets.
  • A Better Way To Play Net Neutrality
    Tue, Feb. 25 EQIX, CCOI, CMCSA 8 Comments
  • Time For Under Armour To Buy Lululemon?
    Fri, Feb. 21 LULU, UA 11 Comments
  • American Superconductor Hits Micro
    Tue, Feb. 11 AMSC 12 Comments
  • Why They Love Prosperity Bank
    Nov. 12, 2013 PB 1 Comment
  • Cloud Leadership Rolls Over To Applications
    Nov. 6, 2013 AMZN, CA, CRM 1 Comment
  • Who Might Berkshire Hathaway Buy Next?
    Nov. 4, 2013 AZO, BRK.B, CAG 26 Comments
  • T-Mobile Gets To Sprint Strategy First
    Nov. 1, 2013 S, T, VZ 7 Comments
  • Even Elon Musk Says Tesla Is Overvalued
    Nov. 1, 2013 TSLA 52 Comments
  • Time To Sell LinkedIn
    Oct. 30, 2013 LNKD 15 Comments