Corning (GLW): Recent 4Q12 Forecast Boost A Sign To Buy? [View instapost]
read my other article that explains how Corning's two joint ventures, have "earnings from equity interests" that flow through to Corning's bottom line.
Qualcomm: Understanding The Risks Before You Buy [View article]
actually, if you look at how I calculate market capitalization, you will see that i include fully diluted shares outstanding (which includes options/grants). so the stock comp is penalized up top already in numerator of P/E multiple (the share price in theory would price in for fully diluted options, just like calculating market cap properly by including f.d. shares). so you then compare it to non-GAAP EPS in the denominator, and it's apples to apples.
Qualcomm: Understanding The Risks Before You Buy [View article]
seems like everyone in smartphone space is getting hit (AAPL, HTC but its rebounded recently, QCOM), except for Samsung and ARMH. Tides may change again but who knows when and who will be next winner. Such a risky, volatile, definitely interesting sector.
Qualcomm (QCOM): FQ2 EPS of $1.17 beats by $0.01. Revenue of $6.12B (+24% Y/Y) beats by $50M. Expects FQ3 revenue of $5.8B-$6.3B and EPS of $0.97-$1.05 vs. consensus of $5.88B and $1.04. Expects FY13 revenue of $24B-$25B and EPS of $4.40-$4.55 vs. consensus of $24.1B and $4.53. Shares -5.1% AH. (PR) [View news story]
i like QCOM, but some of the risks analysts are worried about include: declining margins (17% guidance for equip business for Q32013), lower ASP from developing markets, Samsung building own chip rumor, 3G to 4G transition (lower royalty fees). see article for more details: http://seekingalpha.co...
The Weekly Dow: 5 Highest-Profit Margin Stocks [View article]
Hi Robert,
I used adjust net income, which the company also shows how to calculate on their 4Q12 press release: http://bit.ly/XXZum4
it takes NI of $10.8bn + $1bn litigation loss + 743mm in process R&D +899mm system integration costs + $700mm asset write down + $97mm Hip program = $14.3bn Adjust NI
capex in 2006-2008 averaged $3.5 bn. capex for 2009-2012 averaged $1.4 bn, as they transitioned away from capex heavy Upstream, and into higher margin Downstream business.
so I think that TEV/EBITDA is only at 6x (low), but P/E is at 15-20x (higher), because as depreciation expense related to older capex levels burn off, then NI margins will increase (so P/E multiple will decrease).
BTW, i got those terms reversed in the article. will submit changes to SA.
yes i agree, camera and now microphone, are concerns to keep track of. supposedly though microphone is a pretty commoditized component. see below quote from WSJ article:
"This adds uncertainty to [the] HTC supply chain for the One, in addition to the previous camera-shortage issue," said Barclays analyst Dale Gai. "But microphones are a commodity component in general, so HTC should be able to find other sources."
Is HTC A Better Rebound Play Than Nokia And BlackBerry? [View article]
Sorry Truthfirst, this comment I don't agree with.
You probably should not rely on a random ranking from a no-name reviewer, and then make an argument for just one of HTC's old product lines (Desire). it just sounds silly. Because in your same survey, it said the Galaxy S3 is the No. 1 least reliable. This must mean customers that bought 75+mm Galaxy S3 since launch must all really like very unreliable phones. If we use your ranking to project sales, then things look pretty rosy for HTC being unreliable like S3.
Also, I think you mean "Serial", although I do like to eat Cereal.
Is HTC A Better Rebound Play Than Nokia And BlackBerry? [View article]
good catch Truthfirst, I accidentally typed in the wrong number for RIMM's book value (i think i must have just took common equity without adding retained earnings). Correction has been submitted to SA. here is RIMM's balance sheet as of March 2013, if people want to check source doc: http://1.usa.gov/17CHaCR
One note on Book Value though, is that for declining businesses (which applies to all 3 of these stocks), its dangerous to put too much weight on BV, because they can take a significant loss/restructuring charge in 1 year that will dramatically lower book value (due to the negative net loss that flows into book value). For example, NOK book value dropped from 13.9 bn euro in 2011 to 9.4 bn euro in 2012, a 33% drop in BV in 1 year. see source doc: http://1.usa.gov/117FltX
The Weekly Dow: 5 Cheapest Price-to-Book Stocks [View article]
both banks and insurance companies are hard to value book value, given they both own significant financial assets (who's value can change dramatically) and are levered (ie: if levered 10 to 1, a 10% change in asset value could wipe out 100% equity).
Is HTC A Better Rebound Play Than Nokia And BlackBerry? [View article]
i have a brokerage account in taiwan that i used to buy this. you can have very limited indirect exposure through Taiwanese ETF such as ticker "EWT", but they only hold like 1-2% of HTC. good luck.
the recent yen weakening is a positive for Corning, but a huge positive
on the sales side, because they sell based on USD, no impact
on the volume side, if yen is weakening, then some of their customers (like Sharp) should hopefully see some increase in their export sales because japanese products is cheaper now. so when their volume increases, then should have positive affect on Corning because they need more glass supplies
on the cost side, because they manufacture some stuff in Japan/yen based, then the yen weakening helps to lower some cost
other corning investors, let me know if that seems correct to you.
also, the recent rebound in solar panel outlook (First Solar up 40% in 1 day) hopefully is a positive to their Dow Corning (Hemlock) JV business.
Intel And Microsoft: Leading The PC Industry To The Next Stage [View article]
investors should understand both the pros and cons of INTC. The pros are well understood (cheap historical 10x P/E multiple, 4% div yield, 80% market share of microprocessors, etc). Here are the cons to note as well though: http://seekingalpha.co...
Corning (GLW): Recent 4Q12 Forecast Boost A Sign To Buy? [View instapost]
http://seekingalpha.co...
Qualcomm: Understanding The Risks Before You Buy [View article]
Qualcomm: Understanding The Risks Before You Buy [View article]
QUALCOMM's CEO Discusses F2Q 2013 Results - Earnings Call Transcript [View article]
Qualcomm: Understanding The Risks Before You Buy [View article]
Qualcomm (QCOM): FQ2 EPS of $1.17 beats by $0.01. Revenue of $6.12B (+24% Y/Y) beats by $50M. Expects FQ3 revenue of $5.8B-$6.3B and EPS of $0.97-$1.05 vs. consensus of $5.88B and $1.04. Expects FY13 revenue of $24B-$25B and EPS of $4.40-$4.55 vs. consensus of $24.1B and $4.53. Shares -5.1% AH. (PR) [View news story]
The Weekly Dow: 5 Highest-Profit Margin Stocks [View article]
I used adjust net income, which the company also shows how to calculate on their 4Q12 press release: http://bit.ly/XXZum4
it takes NI of $10.8bn + $1bn litigation loss + 743mm in process R&D +899mm system integration costs + $700mm asset write down + $97mm Hip program = $14.3bn Adjust NI
Good luck!
3 High-Risk, High-Reward Stocks [View article]
so I think that TEV/EBITDA is only at 6x (low), but P/E is at 15-20x (higher), because as depreciation expense related to older capex levels burn off, then NI margins will increase (so P/E multiple will decrease).
BTW, i got those terms reversed in the article. will submit changes to SA.
3 High-Risk, High-Reward Stocks [View article]
"This adds uncertainty to [the] HTC supply chain for the One, in addition to the previous camera-shortage issue," said Barclays analyst Dale Gai. "But microphones are a commodity component in general, so HTC should be able to find other sources."
http://on.wsj.com/ZNLLec
Is HTC A Better Rebound Play Than Nokia And BlackBerry? [View article]
You probably should not rely on a random ranking from a no-name reviewer, and then make an argument for just one of HTC's old product lines (Desire). it just sounds silly. Because in your same survey, it said the Galaxy S3 is the No. 1 least reliable. This must mean customers that bought 75+mm Galaxy S3 since launch must all really like very unreliable phones. If we use your ranking to project sales, then things look pretty rosy for HTC being unreliable like S3.
Also, I think you mean "Serial", although I do like to eat Cereal.
Is HTC A Better Rebound Play Than Nokia And BlackBerry? [View article]
One note on Book Value though, is that for declining businesses (which applies to all 3 of these stocks), its dangerous to put too much weight on BV, because they can take a significant loss/restructuring charge in 1 year that will dramatically lower book value (due to the negative net loss that flows into book value). For example, NOK book value dropped from 13.9 bn euro in 2011 to 9.4 bn euro in 2012, a 33% drop in BV in 1 year. see source doc: http://1.usa.gov/117FltX
good luck everyone.
The Weekly Dow: 5 Cheapest Price-to-Book Stocks [View article]
Is HTC A Better Rebound Play Than Nokia And BlackBerry? [View article]
Accounting Lessons From Corning [View article]
the recent yen weakening is a positive for Corning, but a huge positive
on the sales side, because they sell based on USD, no impact
on the volume side, if yen is weakening, then some of their customers (like Sharp) should hopefully see some increase in their export sales because japanese products is cheaper now. so when their volume increases, then should have positive affect on Corning because they need more glass supplies
on the cost side, because they manufacture some stuff in Japan/yen based, then the yen weakening helps to lower some cost
other corning investors, let me know if that seems correct to you.
also, the recent rebound in solar panel outlook (First Solar up 40% in 1 day) hopefully is a positive to their Dow Corning (Hemlock) JV business.
Intel And Microsoft: Leading The PC Industry To The Next Stage [View article]