Buy Geron: Multiple Catalysts Lie Ahead For This Unique Oncology Company [View article]
There is a precedent for Geron's longevity. Amylin went over 20 years without ever posting a profit before being bought out by Bristol-Myers, despite having drugs on the market. We are not saying that Geron is certain to succeed. In this business, success is never guaranteed, even for the sector leaders such as Amgen or Pfizer. Does Geron have risk? Of course it does. And that is why we are recommending it for risk-tolerant investors. The next 12 months will be the most crucial in the company's history, and the shares could soar, or they could plunge. It all depends on the trial outcomes.
Buy Geron: Multiple Catalysts Lie Ahead For This Unique Oncology Company [View article]
It is difficult to place an exact $ value on the stem cell assets. GERN was set to spend $25 million each year (http://on.wsj.com/MALqdH) on its stem cell trials. It all depends on what company, if any, would want to take a look at it. Pfizer has a stem cell trial in progress (http://on.wsj.com/MALqdH) and launched a regenerative medicine unit in 2008, so Geron's assets may be a good fit for the company. We expect more color when Geron reports Q3 and Q4 results.
Nvidia's Q2 Earnings: Solid Results And Outlook, But Continued Frustration With Cash Deployment [View article]
While it is true that NVIDIA has a buyback authorization in place (http://bit.ly/PficyO), it was extended back in 2012 and the company has not used it for many quarters. NVIDIA made no mention of it being used in Q2 2013. the precise amount of stock bought back can be found in the company's 10-Q filings for each quarter, and the last several filings have shown that the company has not spent a dime on buying back stock.
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
Frankly speaking, we would like to see a reshuffle that puts CFO Jerry Elliott into the corner office. In his 5 months as CFO he has been more frank than Hutcheson in his 7 years. Q3 will likely be a turning point, as analysts and the market will put even more pressure on the company to come to a strategic resolution.
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
While there is a possibility that Leap can turn things around, the company's future is cloudy. While the iPhone may be a hit device, the fact that it comes without the usual postpaid subsidy will limit its appeal. Leap's customer base consists of many subscribers who cannot afford traditional wireless plans. How many of them would be able to afford an iPhone without the subsidy? Leap's new plans may indeed improve retention, but the results of those plans are something that investors will have to simply wait for. A spectrum buyout is possible, made all the more likely by CFO Elliott's comments that the spectrum is worth $3 billion. There is no reason to bring that up unless you are looking to extract value from it. Analysts will likely put even more pressure on management on the company's Q3 call regarding that possibility.
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
That is something we wondered as well. CFO Jerry Elliott joined the company in April, so he can't be blamed for the company's issues, which have built up over several years. But CEO Douglas Hutcheson has been in charge since 2005, and arguably, he is the person that needs to be held accountable. We think that should things not improve by the close of 2012, the board may indeed begin considering a change at the top.
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
Debt is a fact of life for the wireless industry. When Sprint was considering buying MetroPCS, they had to take into account that company's $4.7 billion of debt. While Leap does have billions in debt, that does not make it unique. That being said, should Leap's financial position not turn around, its ability to service that debt may come into question, putting more pressure on management to come to a strategic resolution to Leap's issues.
Clearwire's Solid Q2 Earnings: Improving Fundamentals Support The Bullish Thesis [View article]
the next major batch of SEC filings will be hitting the wires mid-August, when 13-F filings are due for Q2 2012. But they only capture trades made up to June 30, so they don't provide the most recent picture of who owns the company.
Clearwire's Solid Q2 Earnings: Improving Fundamentals Support The Bullish Thesis [View article]
Ahead of earnings, it seems that many investors were worried that CLWR's 10-Q would contain "going concern" language, which would be an admission that the company may not survive. However, no such language was used in the 10-Q. In the short-term, CLWR trades based on trader sentiment, which can turn very quickly. It seems that traders realized there was no reason to have sold CLWR, and are now doing the exact opposite. We think that Clearwire will go through a major shift in the next 12 months. The wireless landscape almost demands it. Management hinted as much on the conference call, essentially saying that they are working on a "strategic transaction."
Clearwire's Solid Q2 Earnings: Improving Fundamentals Support The Bullish Thesis [View article]
Thanks you for the compliment. Having Benioff as CEO would indeed be interesting. He has a solid track record of creating shareholder value (salesforce.com went public at $11 and is now over $130), and if he were CLWR's CEO, the tech/financial press would all be writing about how he is challenging AT&T and Verizon. A $5 stock price is not impossible, but everything will have to go right for the company.
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
Admittedly, for purposes of clarity, a different example should have been used. SunPower is burning cash, and will likely continue to burn cash in Q2 2012. But the company is set to return to profitability next year. It would have been more appropriate to use a different company, such as LDK or Suntech
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
In its current form, solar simply cannot provide for all of the world's energy needs. But, the market is growing, and in several decades it will be many times larger than it is today. The benefits of solar are clear, and in places where there is a lot of sunlight, the economic advantages make solar a good choice (California, Texas, Saudi Arabia, etc...) The solar market is growing, and First Solar is well positioned to capitalize on that.
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
SunPower is not the company facing problems, and it is set to return to profitability in 2013. And unlike many companies, it still has a gross profit. We never said that SunPower would go bankrupt. While it's financial state is weaker than that of First Solar, SunPower should be a survivor in this market.
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
First Solar's strategy is to be in markets where they are unnecessary. That is why the company is withdrawing from Europe, because the solar market there is structurally imbalanced.
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
FSLR has already booked hundreds of millions in warranty charges to account for the expense of faulty panels manufactured in 2008 and 2009. And it took another $12 million charge in this quarter. India's power needs cannot be solved bu nuclear/natural gas alone. For better or worse, nuclear power is very controversial from a political standpoint, and natural gas alone cannot solve the country's power issues. Solar will play a role in the Indian electricity market. Will it be the dominant power source? Probably not, at least not in our lifetimes. But there will be a place for solar power in the Indian grid, and First Solar has set itself up for success in that market. Both cdTe and mc-Si panels have their strengths and weaknesses. If cdTe panels were truly poor performers, the company would have no project pipeline at all. Instead, multiple utilities, such as NRG, SDG&E, and MidAmerican have all made a conscious choice to go with cdTe technology. And we think it is unlikely that they did not perform an analysis of the future costs associated with those panels.
Buy Geron: Multiple Catalysts Lie Ahead For This Unique Oncology Company [View article]
Buy Geron: Multiple Catalysts Lie Ahead For This Unique Oncology Company [View article]
Nvidia's Q2 Earnings: Solid Results And Outlook, But Continued Frustration With Cash Deployment [View article]
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
Leap Wireless: A Sale Of The Company May Be On The Way [View article]
Clearwire's Solid Q2 Earnings: Improving Fundamentals Support The Bullish Thesis [View article]
Clearwire's Solid Q2 Earnings: Improving Fundamentals Support The Bullish Thesis [View article]
Clearwire's Solid Q2 Earnings: Improving Fundamentals Support The Bullish Thesis [View article]
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]
First Solar: Q2 Results Show Its Financial Strength And Market Potential Are Unmatched [View article]