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SA Editor Eric Jhonsa

 
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  • Goldman downgrades Verizon [View news story]
    EV/EPS and EV/FCF calculations are very common among analysts. As they should be. Enterprise value, not market cap, is the true measure of how much a business is being valued at by the market. A failure to grasp this fact is one of the biggest mistakes retail investors make.

    To look at it another way: If I buy a business making $100K/year for just $100K, but the business has $10M in debt obligations and no cash on hand, to say that I'm only paying 1x earnings would be incredibly misleading. My real purchase price is 101x earnings.
    Dec 18, 2014. 04:27 AM | 2 Likes Like |Link to Comment
  • Hertz +3.2% AH; Icahn ups stake to 11.3% [View news story]
    Typo. Fixed.
    Dec 17, 2014. 08:46 PM | Likes Like |Link to Comment
  • BlackBerry launches $449 Classic; reviews mixed [View news story]
    You can believe that if you'd like. While there are exceptions in both directions, the reviews look quite mixed to me overall. Here's another one that fits the description:

    http://bit.ly/1Gt9c4j

    As for what iPhone and Android supporters are doing, I think they spend far more time arguing with each other than trying to create "myths" about a platform with a 0.8% smartphone share. If/when BlackBerry's share rebounds, maybe things will be different.

    I use a Galaxy Note 3. But I do have fond memories of my Treo 600 (a QWERTY phone), and can see a sustainable niche for keyboard phones, if they're made right.
    Dec 17, 2014. 02:44 PM | 6 Likes Like |Link to Comment
  • BlackBerry launches $449 Classic; reviews mixed [View news story]
    Actually, I hadn't seen the NYT review at the time the post was written. And I did make note of a fairly positive InfoWorld review.

    But if someone very bullish or bearish on a company is intent on finding bias, they'll always find "evidence" to back up their point-of-view. That's something I learned a long time ago.
    Dec 17, 2014. 01:20 PM | 12 Likes Like |Link to Comment
  • Goldman downgrades Verizon [View news story]
    I just did. Verizon's enterprise value (market cap + net debt) is $292B, or ~$70.40/share. $70.40 divided by $3.74 (the 2015 operating EPS consensus) equals 19.
    Dec 17, 2014. 12:39 PM | 1 Like Like |Link to Comment
  • Goldman downgrades Verizon [View news story]
    The consensus EPS estimate used for the 19x multiple is also based on operating EPS, not GAAP. It's currently at $3.74, per Thomson/First Call.

    http://yhoo.it/JhQaRF

    << Please explain what "after factoring net debt" means and what effect it has on the calculation of P/E. >>

    A company's valuation needs to take net cash or debt into account, to go with its market cap. Just as someone buying a business would have to account for cash and debt on hand when calculating his actual purchase price. VZ has ~$101B in net debt to go with a $191B market cap.
    Dec 17, 2014. 12:12 PM | 2 Likes Like |Link to Comment
  • BlackBerry slides ahead of earnings; analysts cautious [View news story]
    I don't recall saying BBRY's drop is solely due to the commentary. Just made note of its presence.

    Anyway, BBRY is currently down 4.3%, while the NASDAQ is down 0.8%. It's undeperforming by a decent margin.
    Dec 15, 2014. 03:45 PM | 3 Likes Like |Link to Comment
  • Telus buying back up to 1.2M shares [View news story]
    Google Finance shows a share count of 611.6M shares.
    Dec 12, 2014. 09:59 PM | 2 Likes Like |Link to Comment
  • Oi, America Movil, Telefonica reportedly bidding $15B for TIM [View news story]
    I just added an article link to the post. One wasn't available when the story broke. At the time, it was a Bloomberg wire report.
    Dec 10, 2014. 03:48 PM | Likes Like |Link to Comment
  • Intel takes on ARM with end-to-end IoT platform [View news story]
    To an extent. I think Intel is aiming its products at embedded devices that need more horsepower and intelligence than ones running standard microcontrollers from MCHP, ATML, STM, etc.
    Dec 10, 2014. 11:04 AM | Likes Like |Link to Comment
  • H-P, IBM lose server share in Q3; Cisco passes Oracle [View news story]
    Google, Facebook, etc. fall under the ODM Direct label. 8.9% in Q3, should crack 10% next year.
    Dec 5, 2014. 12:18 AM | 2 Likes Like |Link to Comment
  • Chen: Chinese acquisition of BlackBerry would be blocked [View news story]
    You're right about the footage being from July 23. Looks like Bloomberg has updated its article (dated Dec. 4) to state that. I've updated the above post to make note of it.
    Dec 4, 2014. 06:06 PM | 9 Likes Like |Link to Comment
  • Chen: Chinese acquisition of BlackBerry would be blocked [View news story]
    Click on the link. Chen's Bloomberg remarks about a Chinese offer are new. The July 28 remarks are separate, and only discussed buyout offers in general.
    Dec 4, 2014. 02:36 PM | 7 Likes Like |Link to Comment
  • Microsoft selling Nook stake to B&N, terminating agreement [View news story]
    I think both moves show that Nadella is willing to break with hardware strategies pushed by Ballmer. That's the link.
    Dec 4, 2014. 11:21 AM | Likes Like |Link to Comment
  • Microsoft selling Nook stake to B&N, terminating agreement [View news story]
    I don't think they're de-emphasizing the consumer space as much as cutting their losses on money-losing consumer hardware businesses.
    Dec 4, 2014. 11:05 AM | 5 Likes Like |Link to Comment
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