David Eller

Long/short equity
David Eller
Long/short equity
Contributor since: 2009
Company: Ronin IP
I appreciate the article but think you ensure that the repurchases are benefiting the shareholders and are not simply a shift of expenses. If a company dedicates capital to share repurchases and the share count continues to increase, it could be shifting the operating expense of cash compensation to stock option grants. In these two cases, both share counts decrease but going beyond the scope of this article, you also have to take into account the impact of the repurchases.
Please don't be insulted but I think you're looking at growth stocks the wrong way. The market caps of these firms are massive. Tesla is the smallest of the group and priced to a value of $33B. True, they are not income stocks but the rapid growth may be behind them.
You might consider stocks like FEYE, RRGB and UA which are earlier on in the growth phase. Just a thought.
C, You seem to be much closer to the product releases and technology than I am. Do you think the growth is there even in data centers? As more computing power is outsourced to AWS (and competitors), it seems that customer economics could be changing for distributed data centers.
Intel may need to pull a substantial new trick out of its hat. And if that's the case is Intel's intent to integrate FPGAs and make near custom processors the next step up? If so, this puts a huge premium on Altera's technology which will cause Intel to either chase the higher share price for a buyout or sacrifice future margins on data center business. No?
I completely agree with you, it would have been nice to see them raise the dividend rather than reduce sharecount and buy EPS growth.
Why dont you explain it to us all.
Well put.
This wasn't meant to be personal advice. There are ways you could hedge the position if you would like to protect yourself from downside. And you could disagree with the thesis and ignore it. I posted this to offer my opinion and start a discussion that will hopefully help everyone become more informed.
I tried to just focus on what I think is misunderstood. Yes areas are growing but my concern is misunderstood weakness in PCs.
By the way, I'm not an intel bear, this is an article I wrote about the benefit of the XP sunset: http://bit.ly/1vcLa9s
It was published on April 9th and written several days before.
What sort of an impact do you think the XP sunset had on PC demand?
The company doesn't need to issue additional shares, it can also be a group of large holders looking for a structured way to move a large block of stock.
FWIW I have to take the author's side on this one. There's going to be another step down in services revenue and there may not be the channel fill to offset it next time. We're not short blackberry yet but considering a position.
Funny how european markets rolling over seemed to have a huge impact on AWAY's stock price. Its as if the company wasn't claiming to see relative weakness in Europe. It doesn't seem to be impacting results yet though and its too late in the summer for a new trend to form. I doubt vacationers who would rent a home rather than a hotel room wait until the last minute to plan a family trip and trends through the July earnings call showed increasing strength.
Hat tip for your industriousness and candor when sharing your experience in a public forum. I hope you are wrong but correct or not, you will have good investment opportunities in 6 months, there are almost always bargains out there.
By the way, if you'd like updates on this story, go to our blog roninip.com and follow us on twitter
If you have data to support what you're claiming, I'd appreciate seeing it. 1100 comments and no articles? Not necessarily the most credible source.
It might help to look at some of the financials, I posted more detail on my site. http://wp.me/p4xk0L-J
The auditor's job, at its most basic, is to take the financial information supplied to it by the company and verify that the financial reports are prepared correctly. If for some reason it questions the data that the company provides, it can ask to expand the scope of the audit. Its very possible that when Muddy Waters published the short selling report alleging fraud PwC decided it didn't want to jeopardize its reputation and asked to expand the audit to include detail that had not been requested in the past. We cant know for sure because neither the company nor the auditor will discuss the issue now.
It doesn't the change in management leaves the door open to restructuring the company.
The group gets paid $0.01 per click but Seeking Alpha is a way for us to develop ideas. The biggest benefit of Seeking Alpha (IMHO) is developing a community of people with unique perspectives to develop ideas. PPC writing does not pay the bills.
Fair question, I assist others in investing so I don't take positions in individual stocks.
Yahoo is already paying the tax and a special dividend would be a one time payment. It doesn't change the structure of the company other than by reducing capital. A buyback reduces sharecount making it easier to grow eps in the future.
They didnt differentiate between buying back stock or using a dividend or other method to return it to shareholders.
No perspective on this one. After listening to the call it seemed that people would be taking a very negative perspective and there were some good points. My intent was to get the discussion going.
Thank you for the post!
Agree but the difference here is the dramatic cut in expenses.
The website isn't created yet because I've been reading financial reports and trading rather than learning wordpress. You're right, we dont have a track record to display. We're a group of former analysts and institutional investors who are doing other things now. Trading personal money, managing individual accounts, family offices etc. There's no consistency.
We're a source for ideas and if you think the ideas don't have any merit that's fine. The two things I can promise you is that we don't have personal investments in the stocks being written about and you are receiving our honest opinions.
None of it concerns me, its incomplete. The key thing, at least in my mind, that the MW guys brought up is fraudulent revenue. Accounting processes were found to be faulty but not to the level where the management was committing fraud. We don't know what revenue the company will be able to recognize and we don't know if the auditor who was responsible for looking over these faulty processes in the past will have a heavy hand in straightening this out. This is a big step toward setting things right, just be aware that there could be more bad news.
lol, I think we all wish we had his money though.
kevh, there is no relation to the link you posted. And nobody who was involved with writing this piece has a position either long or short. I'd rather put my money on black. It was written because there is a glaring hole in the press release that some people may have missed and the company would not reply to our inquiry.
Fair enough. I like using out year earnings b/c it includes anticipated business changes that will impact earning growth but I'm not one to preach religion. I appreciate your feedback and taking the time to read the article.
That's TTM not forward looking. Since the fiscal year ends in Jan I believe people will be looking forward to Jan 15 shortly.