Herbalife - A Case History In Bad Due Diligence [View article]
I believe John Hempton is long Herbalife - if I got this comment right:
>I am utterly convinced by everything in Bill Ackman's presentation except the final conclusion - that Herbalife's stock will collapse. I took a long position on Christmas Eve.
Cincinnati Bell (CBB -6.9%) sold off after its CyrusOne (CONE) subsidiary set a price range of $16-$18 for its 16.5M-share IPO. That's good for a market cap of $312M-$351M. IPO buyers will own 84.5% of CyrusOne after the offering, and CBB just 9.7% (employees will own the rest). CyrusOne had revenue of $162.8M (+22% Y/Y) for the first 9 months of 2012, and a net loss of $5.1M. (S-1) [View news story]
CBB will own 9.7% of CONE outstanding shares of common stock and 68.5% of the outstanding operating partnership units, which, if converted into CONE common stock, would represent an additional 61.9% of the company. This way, Cincinnati Bell expects to effectively own approximately 71.6% of CyrusOne. Market cap will be around 1 billion, at the mid point.
Immersion Corporation: Profiting From The Touch Screen Revolution [View article]
A couple of clarifications as a follow up to the article.
HD haptics are technically better described as higher fidelity, rather than localized.
The combination of Immersion TouchSense 5000 software with high definition actuators delivers vibrations across a broader frequency range than traditional device motors. The result is a more nuanced and lifelike experience because of this wide range of frequency vibration.
As to the paragraph about the automotive sector, the company indicated a wide range for royalties ($1 to $5). It is, however, also possible that the same car contains both a rotary knob and a touchscreen with haptics, so that the final result is a higher rate per unit.
My calculation of a historical number of about $7 derives from an old filing disclosing how many cars had implemented haptics at that time. As I have been pointed out, however, total revenues might have included also project work, etc. - bringing the actual royalty rate per unit lower.
The real purpose was to underline that royalties in the automotive vertical are in the dollar range, and not cents like in mobility, and I still expect them to settle at a few dollars for each car.
Rumor Has It: Is Mohawk Industries Eyeing Marazzi Group? [View article]
Thanks. As you might have noticed, the deal finally went through at a higher price than first rumored. I'm planning an update with more details about Marazzi Group and the potential synergies of the deal.
Mohawk Industries (MHK) agrees to acquire Marazzi Group, a global manufacturer and marketer of ceramic tile, for ~$1.5B in cash and stock. MHK says the addition of Marazzi, whose 2011 revenues totaled ~€833M ($1.16B), will make it the worldwide leader in ceramic tile. MHK -0.8% AH. [View news story]
Rumor Has It: Is Mohawk Industries Eyeing Marazzi Group? [View article]
As mentioned in the article, the large majority of tiles consumed in the USA is imported. While it is true that US producer n. 1 would be buying US Producer n. 2, I believe Mohawk industries could successfully prove that its market share would remain relatively low if compared to total market consumption.
As an update to the article, readers should be informed that Chairman of the Board and President of Marazzi Group Filippo Marazzi died on November 27th of natural causes. His death is a great loss to the whole industry and might slow down the acquisition process.
Mohawk Industries (MHK +1.4%) appears to be in advanced talks to buy Italian ceramics maker Marazzi Group. One source puts the deal at around $1.2B. [View news story]
First on Seeking Alpha (with additional info/data about Marazzi Group):
Data Center-Related Stocks Sell Off In October [View article]
Over the last couple of years (plus), I have been publishing reports about performances of data center related stocks on a regular basis, with the main purpose to resume YTD and monthly data on a relatively simple chart, with some basic commentary. It is not certainly an innovative idea, as many other people are doing similar things for different sectors, etc. I found this approach useful as a reader, and decided to share the same data, which I used to collect, about a few stocks I am tracking. Since the beginning, I have introduced the concept of creating small sub-sectors, to help investors track individual stocks compared to their real peers (as far as business model), and compare these sub-sectors. These short articles, as well as other ones I am writing about “Earnings Performances” in the same sector, are very easy to identify, as they mention “data center related stocks” and “monthly performances” in their title, with almost no exception over several months. As I understand these posts don’t add much, in terms of insight, to your knowledge, I suggest you avoid them in the future. Looking at the number of pageviews received for this kind of reports, and over a relatively long period of time, it looks to me (as an author) that are a few readers interested in this kind of relatively simple-to-understand and basic analysis. A far as more insightful articles, if you are interested in the sector, you might take some time to have a look at other posts I wrote over the last few years about this specific sector, which make most of my contributions on Seeking Alpha. These articles go from analysis of sector trends, like “Insatiable Demand for Colocation Services” or “Colocation and the Financial Industry”, written in the post-Lehman times, to reports of specific events, like “Equinix Trims Yearly Guidance but Still Looking Strong”, post company’s revenue warning, or analyst meetings I attended (Equinix's Analyst Meeting Details The Journey To $3 Billion In Revenues), or IPO analysis, for example for Interxion (INXN), etc. etc. Thanks for your comment.
The Transition From Legacy IT And Its Potential Consequences On Microsoft [View article]
I guess we are all entitled to different opinions - I believe your comment adds food for thought, but don't really highlight major mistakes in the article.
1. Losing money fighting against Google may be a great strategy, but other MSFT investors might be entitled a different opinion.
2. I'm wishing Nokia to be successful in its turn around. Living in Europe, I am witnessing how the company has gone from a leading place among consumers to a relatively small position.
4. MSFT gets royalties on Android from OEMs, as well as Nokia gets royalties for its patents from companies like Apple, just to name one.
Unfortunately, that doesn't seem to be enough for both companies - MSFT wants a bigger slice of the cake, and NOK can't certainly turn a profit on AAPL royalties alone.
Gramercy Capital Corporation: An Edward De Bono Stock [View article]
thanks for your kind comment.
I really enjoyed your latest update on GKK:
http://seekingalpha.co...
Herbalife - A Case History In Bad Due Diligence [View article]
>I am utterly convinced by everything in Bill Ackman's presentation except the final conclusion - that Herbalife's stock will collapse. I took a long position on Christmas Eve.
http://bit.ly/V5lcl3
Great story to watch, and great learning experience.
Cincinnati Bell (CBB -6.9%) sold off after its CyrusOne (CONE) subsidiary set a price range of $16-$18 for its 16.5M-share IPO. That's good for a market cap of $312M-$351M. IPO buyers will own 84.5% of CyrusOne after the offering, and CBB just 9.7% (employees will own the rest). CyrusOne had revenue of $162.8M (+22% Y/Y) for the first 9 months of 2012, and a net loss of $5.1M. (S-1) [View news story]
This way, Cincinnati Bell expects to effectively own approximately 71.6% of CyrusOne.
Market cap will be around 1 billion, at the mid point.
Immersion Corporation: Profiting From The Touch Screen Revolution [View article]
HD haptics are technically better described as higher fidelity, rather than localized.
The combination of Immersion TouchSense 5000 software with high definition actuators delivers vibrations across a broader frequency range than traditional device motors. The result is a more nuanced and lifelike experience because of this wide range of frequency vibration.
As to the paragraph about the automotive sector, the company indicated a wide range for royalties ($1 to $5). It is, however, also possible that the same car contains both a rotary knob and a touchscreen with haptics, so that the final result is a higher rate per unit.
My calculation of a historical number of about $7 derives from an old filing disclosing how many cars had implemented haptics at that time. As I have been pointed out, however, total revenues might have included also project work, etc. - bringing the actual royalty rate per unit lower.
The real purpose was to underline that royalties in the automotive vertical are in the dollar range, and not cents like in mobility, and I still expect them to settle at a few dollars for each car.
Rumor Has It: Is Mohawk Industries Eyeing Marazzi Group? [View article]
Mohawk Industries (MHK) agrees to acquire Marazzi Group, a global manufacturer and marketer of ceramic tile, for ~$1.5B in cash and stock. MHK says the addition of Marazzi, whose 2011 revenues totaled ~€833M ($1.16B), will make it the worldwide leader in ceramic tile. MHK -0.8% AH. [View news story]
http://seekingalpha.co...
Axion Power Concentrator 188: Dec. 19: Latest News [View instapost]
Rumor Has It: Is Mohawk Industries Eyeing Marazzi Group? [View article]
As an update to the article, readers should be informed that Chairman of the Board and President of Marazzi Group Filippo Marazzi died on November 27th of natural causes.
His death is a great loss to the whole industry and might slow down the acquisition process.
http://bit.ly/Uuh4Jj
Data Center Related Stocks Close Mixed In November And After Q3 Earnings [View article]
Axion Power Concentrator 179, Nov. 23: John Petersen's Axion History & Prospects; Q3 '12 Rpt; SAE Truck APU App; Rosewater & Queens Univ. Partner On Distributed Energy Study; 13th ELBC: Axion's "Operational Stability Of PbC Batteries And Battery Systems [View instapost]
Mohawk Industries (MHK +1.4%) appears to be in advanced talks to buy Italian ceramics maker Marazzi Group. One source puts the deal at around $1.2B. [View news story]
http://seekingalpha.co...
Data Center-Related Stocks Sell Off In October [View article]
These short articles, as well as other ones I am writing about “Earnings Performances” in the same sector, are very easy to identify, as they mention “data center related stocks” and “monthly performances” in their title, with almost no exception over several months. As I understand these posts don’t add much, in terms of insight, to your knowledge, I suggest you avoid them in the future. Looking at the number of pageviews received for this kind of reports, and over a relatively long period of time, it looks to me (as an author) that are a few readers interested in this kind of relatively simple-to-understand and basic analysis.
A far as more insightful articles, if you are interested in the sector, you might take some time to have a look at other posts I wrote over the last few years about this specific sector, which make most of my contributions on Seeking Alpha. These articles go from analysis of sector trends, like “Insatiable Demand for Colocation Services” or “Colocation and the Financial Industry”, written in the post-Lehman times, to reports of specific events, like “Equinix Trims Yearly Guidance but Still Looking Strong”, post company’s revenue warning, or analyst meetings I attended (Equinix's Analyst Meeting Details The Journey To $3 Billion In Revenues), or IPO analysis, for example for Interxion (INXN), etc. etc.
Thanks for your comment.
Equinix (EQIX): Q3 EPS of $0.58 misses by $0.01. Revenue of $488.7M (+20% Y/Y) misses by $5M. Shares +4.6% AH. (PR) [View news story]
Why A123 Systems Is A Sucker's Bet [View article]
The Transition From Legacy IT And Its Potential Consequences On Microsoft [View article]
1. Losing money fighting against Google may be a great strategy, but other MSFT investors might be entitled a different opinion.
2. I'm wishing Nokia to be successful in its turn around. Living in Europe, I am witnessing how the company has gone from a leading place among consumers to a relatively small position.
4. MSFT gets royalties on Android from OEMs, as well as Nokia gets royalties for its patents from companies like Apple, just to name one.
Unfortunately, that doesn't seem to be enough for both companies - MSFT wants a bigger slice of the cake, and NOK can't certainly turn a profit on AAPL royalties alone.