Seeking Alpha

Trefis

 
View as an RSS Feed
View Trefis' Articles BY TICKER:
  • U.S. Airlines Expand Flying Capacities Supported By Solid Demand Environment
    Thu, Jun. 12 AAL, DAL, UAL 5 Comments

    Summary

    • The overall demand for air travel was robust with strong growth in the Latin American markets, and moderate growth in the domestic U.S. and Atlantic international air travel markets.
    • Last quarter, airline results were a mixed bag due to the negative impact from severe weather that disrupted normal flight operations in the northeast and mid-continental U.S.
    • This growth oriented capacity stance of major airlines is a reflection of the improved health of the U.S. airline industry.
  • Sprint Eyeing $32 Billion T-Mobile Deal
    Wed, Jun. 11 S, TMUS 3 Comments

    Summary

    • Sprint, T-Mobile have reached tentative acquisition deal, according to reports.
    • Under preliminary terms of the reported deal, Sprint is likely to pay around $40 per share for T-Mobile, valuing the company’s equity at close to $32 billion.
    • Sprint would also assume T-Mobile’s net debt of about $9 billion, adding to its ever-burgeoning debt load, which at the end of Q1 2014 was $26.6 billion.
  • Why Did Merck Pay Such A Huge Premium For Idenix
    Wed, Jun. 11 IDIX, GILD, MRK 6 Comments

    Summary

    • Merck recently announced a definitive agreement to acquire Idenix at $24.50 a share.
    • The acquisition will strengthen Merck's Hepatits C portfolio and help it stem the revenue decline resulting from patent expiry of major drugs.
    • Idenix currently has three Hepatitis C drugs under development.
  • Boston Scientific Initiates New Evaluation Study For Its Lotus TAVR System
    Wed, Jun. 11 BSX Comment!

    Summary

    • The RESPOND Registry will collect performance data on the company's Lotus TAVR system implanted in 1,000 patients across 50 centers globally.
    • The study follows the successful completion of its REPRISE II clinical trial, which reported strong performance results for the TAVR system in terms of safety and efficacy.
    • The Lotus TAVR system reported solid uptake in Q1 this year and positive results from the RESPOND Registry could further aid its acceptance.
  • First Solar Could Benefit If India Imposes Duties On Cell Imports
    Wed, Jun. 11 FSLR 1 Comment

    Summary

    • India's Directorate General of Anti-Dumping and Allied Duties recommended anti-dumping duties on the import of solar cells from China, United States, Taiwan and Malaysia.
    • U.S. silicon-based solar manufacturers could see the cost of their panels rise by as much as 80% (on average), while Chinese suppliers could see their prices more than double.
    • The proposed duties on First Solar's thin-film panels are far lower, standing at around $0.11 per watt.
  • F5 Expands Its Security Portfolio With Defense.Net
    Tue, Jun. 10 FFIV Comment!

    Summary

    • Last month, F5 Networks acquired Defense.Net.
    • The combined portfolio of the two companies will provide customers with the most comprehensive hybrid Distributed Denial-of-Service (DDoS) solution.
    • Though the acquisition is not expected to have a material impact on F5’s operating results, it helps the company by increasing its competitiveness in the fast growing security market.
  • Accenture-HP-SAP Collaboration Should Drive HANA Adoption Higher
    Tue, Jun. 10 ACN, HPQ, SAP Comment!

    Summary

    • SAP HANA, short for High Performance Analytic Appliance, is the company's flagship in-memory database product launched in November 2010.
    • The collaboration with HP and Accenture is a strong attempt from SAP to push forward with its HANA platform as the de-facto industry standard for in-memory application deployments.
    • HANA has seen good traction, with fiscal 2013 revenues reaching approximately €664 million (~$882 million).
  • Wal-Mart Expects 30% Rise In Its E-Commerce Revenues This Year
    Mon, Jun. 9 AMZN, WMT 4 Comments

    Summary

    • Wal-Mart’s comparable sales growth has been negative for the past five quarters due to the sluggish economic environment in the U.S.
    • However, the company’s e-commerce revenues have grown at a robust pace driven by several initiatives deployed over the last few years.
    • Wal-Mart believes that it can deliver 30% e-commerce revenue growth this year.
  • Microsoft Targets Enterprise Clients With Strategic Salesforce.com Partnership
    Mon, Jun. 9 MSFT, CRM 7 Comments

    Summary

    • The effort includes Salesforce.com's CRM app on Microsoft's Windows and Azure platforms, and interoperability between Salesforce.com's SaaS applications and Microsoft Office 365.
    • We believe Microsoft is strategically positioned to target enterprise clients since corporations around the world continue to favor Windows as their Operating System.
    • Moreover, Salesforce's CRM delivered through cloud resonates well with small and medium enterprises that lack dedicated hardware budgets to complement on-premise CRM bundles.
  • Why Qualcomm's Royalty Rate Will Continue To Decline
    Mon, Jun. 9 CHL, QCOM 22 Comments

    Summary

    • Qualcomm is the leading patent holder in advanced 3G mobile technologies, which has allowed the company to charge high royalty rates in the past.
    • The average royalty rate that Qualcomm charges mobile handset vendors has declined gradually over the past few years, as the average selling price of CDMA mobile phones continue to decline.
    • The company's average royalty rate of mobile devices based on its technology declined from 4.3% in 2008 to 3.2% in 2013, we estimate the figure to continue declining.
  • RadioShack's Earnings Preview: No Significant Benefit From Its Turnaround Initiative Yet
    Fri, Jun. 6 RSH 4 Comments

    Summary

    • RadioShack will report its Q1 2014 earnings on June 10.
    • The company is witnessing an eroding top line growth, declining gross margins, high inventory levels, a string of debt maturities and declining cash reserves.
    • We do not expect the company to report any significant improvement in earnings.
  • Nvidia's Tegra K1 Powers Google's Project Tango Tablet Kit
    Fri, Jun. 6 GOOG, GOOGL, NVDA Comment!

    Summary

    • Project Tango is a smartphone and tablet project by Google powered by Nvidia.
    • We believe that Tegra processors revenue will cross $1 billion over our review period.
    • Leveraging its Tegra processors to tap growth in mobile computing is a key long-term growth strategy for Nvidia.
  • A Look At BlackBerry's QNX Business
    Fri, Jun. 6 BBRY 142 Comments

    Summary

    • There has been a lot of buzz around the company's sometimes overlooked QNX embedded systems business.
    • While BlackBerry has used QNX to power its Playbook line of tablets and build its BB10 operating system, the software's primary application lies in embedded systems.
    • We take a look at where the QNX business currently stands and its potential opportunities and risks.
  • Rising Competition Forces Broadcom To Exit The Baseband Market
    Thu, Jun. 5 QCOM, BRCM Comment!

    Summary

    • Broadcom announced that it has engaged investment bank JPMorgan to explore strategic alternatives for its cellular baseband business, including a potential sale or wind-down.
    • The company expects the sale or wind-down of its cellular baseband business to result in a $700 million reduction in annualized GAAP research and development (R&D) and selling, general and administrative (SG&A) expenses.
    • Broadcom accounts for less than 3% of the mobile baseband and application processor market.
  • How Johnson & Johnson Is Executing Well
    Thu, Jun. 5 JNJ 3 Comments

    Summary

    • J&J has traditionally been known for its medical devices and diagnostics equipment, but that is slowly changing.
    • Growth in the consumer and medical devices business is flattening out whereas certain therapeutic areas such as oncology and immunology offer attractive growth opportunities for the company's drugs.
    • There is a good chance that the company will continue to downsize its consumer and medical devices businesses and focus more on the growing pharmaceutical segment.
  • Decoding Yahoo's Foray Into Online Videos
    Thu, Jun. 5 GOOG, GOOGL, YHOO 4 Comments

    Summary

    • If recent news can be believed, then Yahoo is all set to launch a new video service that will compete with Google’s YouTube.
    • Due to launch this summer, the new video site will focus on attracting user generated content through a greater potential to earn money.
    • We currently have a $34.83 price estimate for Yahoo!, which is in line with its current market price.
  • AMD Expands Its Embedded Portfolio With New Solutions
    Wed, Jun. 4 AMD 9 Comments

    Summary

    • AMD (AMD) has announced new x86 G-Series system-on-chip (SoC) and central processing unit (CPU) solutions for embedded applications.
    • The new products expand upon the high-performance and low-power capabilities of AMD’s existing Embedded G-Series platform.
    • AMD is the first company to offer its customers both ARM and x86 architecture based solutions for low-power and high-performance embedded compute designs.
  • How The U.S. Justice Department Review Impacts Pandora
    Wed, Jun. 4 P 2 Comments

    Summary

    • Pandora has struggled to become profitable even with current royalty rates, and any increase would further dent its ability to churn profits.
    • The company has mostly given up its legislation efforts and has been seeking other resolutions for reducing royalty rates.
    • We currently forecast Pandora’s content costs as percentage of revenues to decline from 53.8% in 2013 to around 37% by the end of our forecast period.
  • Google Looks To Expand Its Addressable Market Size With Satellite Launch
    Wed, Jun. 4 GOOG, GOOGL 3 Comments

    Summary

    • Google Inc. plans to spend $1 billion on the launch of satellites to provide internet access to under-served regions of the globe.
    • Over the past few quarters, Google’s revenues have grown at a slower pace. Much of it can be attributed to the pricing pressure on the cost of ads and a slower growth in search queries across the internet.
    • If Google were to succeed and the number of internet users were to increase to 4.5 billion in the next five years, the total addressable market double in size, and the sale of PCs and smart connected devices across underserved regions would also increase.
  • Agreement With Rockchip To Help Intel Reach Its Tablet Shipping Target
    Tue, Jun. 3 INTC 10 Comments

    Summary

    • Intel announced a strategic agreement with Rockchip.
    • While Intel has been the world's dominant PC Microprocessor maker for over two decades, it has had difficulty penetrating newer processor markets for tablets and smartphones.
    • We discuss how the agreement with Rockchip can help expand Intel's presence in the tablet market.
  • New LTE Deals Could Bolster Nokia's Declining Networks Sales
    Mon, Jun. 2 NOK 16 Comments

    Summary

    • Nokia's first quarter results were mixed, even as margins improved on a higher mix of software sales and strong cost controls.
    • Although Europe remained challenging during a seasonally weak first quarter, the company has built a strong pipeline of orders on a number of recent contract wins, which could bolster sales going forward.
    • Our $7.30 price estimate for Nokia is about 10% below the current market price.
  • SanDisk And Toshiba To Produce 3-D Chips
    Mon, Jun. 2 SSNLF, HXSCF, MU 1 Comment

    Summary

    • Every year, the advancement of technology has led chip makers to accommodate more data on chips while simultaneously shrinking their physical size.
    • 3-D technology stacks the chips vertically in an array, unlike planar NAND technology where the chips are arranged like a grid.
    • The SanDisk-Toshiba chips will hit the market significantly later than competitors Samsung, Hynix and Micron because of the company's continued focus on small size chips and 2-D technology.
  • AOL Eyes TV Video Ad Dollars With The Acquisition Of Precision Demand For Adapt.tv
    Mon, Jun. 2 AOL 1 Comment

    Summary

    • The company has intensified its efforts to capture a bigger chunk of the programmatic ads industry.
    • Adapt.tv is one of the biggest platforms for buying inventory on digital video.
    • Digital video ad spend is increasing at a faster pace and much of this growth is coming from mobile devices.
  • Baidu Plans IPO For Its Video Business
    Mon, Jun. 2 YOKU, BIDU Comment!

    Summary

    • Baidu's iQiyi unit, a provider of online video steaming services in China, has plans to raise funds via an initial public offering in the next three years.
    • The company is aiming for the largest market share and revenue share in China by the time of the IPO, per a Bloomberg report.
    • An iQiyi IPO is a good diversification strategy for Baidu, whose business has been heavily dependent on search offerings to generate revenues.
  • International Expansion, Mobile Potential Make eBay A $60 Stock
    Fri, May. 30 EBAY 8 Comments

    Summary

    • We expect eBay to grow its revenues from roughly $16 billion in 2013 to $36.5 billion by 2020.
    • PayPal has been going strong over the last few years, with the number of active registered accounts rising from 57 million in 2007 to 143 million in 2013.
    • According to eMarketer’s forecast, global business-to-consumer e-commerce sales are expected to jump by roughly 20% in 2014, amounting to $1.5 trillion.
  • What Merck, Bristol-Myers Squibb And Roche Are Doing To Win The Immuno-Oncology Drugs Market
    Fri, May. 30 MRK, BMY, RHHBY Comment!

    Summary

    • The race for immuno-oncology drugs is on. According to some estimates, the market could be as big as $35 billion.
    • Given their focus on biologics and relatively strong immuno-oncology pipelines, Merck, Britol-Myers Squibb and Roche Diagnostics stand to gain from the potential.
    • We expect a strong focus from each of these companies on both in-house research and development, as well as co-development partnerships.
  • Netflix: A Look At The Company's Potential In New European Markets
    Fri, May. 30 NFLX 6 Comments

    Summary

    • The company's latest expansion includes Germany, France, Austria, Belgium, Switzerland and Luxembourg.
    • Netflix currently has more than 13.6 million international subscribers in Europe, Canada and Latin America.
    • The expansion planned for the second half of 2014 could push quarterly net additions to as high as 2 million.
  • TripAdvisor Enters Online Restaurant Reservation Space With Acquisition Of LaFourchette
    Thu, May. 29 OPEN, TRIP Comment!

    Summary

    • TripAdvisor is the world’s largest travel review website and averages more than 250 million unique visitors in a month.
    • In a move to attract more users and better monetize its restaurant traffic it acquired LaFourchette this month for $140 million in an all cash deal.
    • TripAdvisor has a history of acquiring startups, such as SeatGuru, Jetsetter and Niumba, and integrating their services with its own.
  • A Review Of Twitter's Business As Market Converges With Our Valuation
    Thu, May. 29 TWTR 5 Comments

    Summary

    • We believe that the current market valuation closely reflects Twitter's fundamentals.
    • Twitter's revenue growth is being fueled by the growing online advertising market, users shifting to mobile, attractive ROI (return on investment) for investors and high engagement levels due to real-time conversations.
    • Much of Twitter's ad revenue growth is being driven by the increasing number of ad impressions.
  • IBM To Discontinue Selling NetApp Storage Products
    Thu, May. 29 IBM, NTAP 2 Comments

    Summary

    • Earlier this week, IBM announced its decision to stop sourcing and reselling NetApp's N series products from May 27 onwards.
    • A continued slump in its hardware sales coupled with a declining market share in the storage hardware market led IBM management to make this decision.
    • Still, NetApp is likely to continue to witness growth from its non-product based revenue streams such as software entitlements and maintenance and hardware maintenance contracts.
  • Factors That Can Lower Our Valuation For Cree By 30%
    Thu, May. 29 GE, PHG, CREE 13 Comments

    Summary

    • Cree's stock price has declined by more than 20% year-to-date.
    • The rising proportion of lighting sales puts pressure on Cree's overall gross margin as lighting products offer lower profit margins compared to LED devices.
    • However, with $1.1 billion in cash and no debt, the company has a strong balance sheet, which gives it the ability to invest in growing its business.
  • Microsoft Strengthens Its Hardware Vertical With Surface 3 Launch
    Wed, May. 28 XLK, VGT, TECL 22 Comments