Dell Technologies Inc.NYSE
Over 20% Upside For EMC
Chris DeMuth Jr. • 46 Comments
Chris DeMuth Jr. • 46 Comments
Yesterday, 7:04 AM
Tue, Nov. 22, 3:33 PM
- Looking at the top 50 hedge fund hotels, it's probably little surprise that Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) top the list, with Amazon making for a top 10 holding in 61 funds, and Facebook in 57.
- Rounding out the top 10 are Charter Communications (NASDAQ:CHTR), Alphabet (GOOG, GOOGL), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Yahoo (NASDAQ:YHOO), Allergan (NYSE:AGN), Bank of America (NYSE:BAC), and Priceline (NASDAQ:PCLN).
- Looking at another gauge - the percent of market cap owned by hedge funds - shows CommScope (NASDAQ:COMM) leading the way, with hedge funds owning 37%. Next is Dell Technologies (NYSE:DVMT) and Expedia (NASDAQ:EXPE) at 30%, and after that: Liberty Broadband (NASDAQ:LBRDK) at 24%, LinkedIn (NYSE:LNKD) at 21%, Constellation Brands (NYSE:STZ) at 20%, and Humana (NYSE:HUM) and WhiteWave Foods (NYSE:WWAV) at 19%.
- Previously: Goldman's list of shorts mattering most to hedge funds (Nov. 22)
Thu, Nov. 17, 12:18 PM
- In no surprise, the list is dominated by the ripping financial sector:
- Allstate (ALL +1.4%)
- Ameriprise (AMP +0.2%)
- TD Ameritrade (AMTD +1.6%)
- BB&T (BBT +2.1%)
- Citigroup (C +2.4%)
- Citizens Financial (CFG +2%)
- Comerica (CMA +1.5%)
- CNA Financial (CNA +0.6%)
- Loews Corp. (L +0.9%)
- Marsh & McLennan (MMC +1.9%)
- PNC Financial (PNC +2.6%)
- Royal Bank of Canada (RY +0.7%)
- U.S. Bancorp (USB +1.9%)
- Aetna (AET +1.5%)
- Best Buy (BBY +10.4%)
- CBS (CBS +0.6%)
- Celanese (CE +0.1%)
- Comcast (CMCSA +1.5%)
- Dell Technologies (DVMT +1.1%)
- The Gap (GPS +0.4%)
- Humana (HUM +1.4%)
- KLA-Tencor (KLAC +2.7%)
- Liberty Media (LMCA +1.6%)
- Lam Research (LRCX +1.9%)
- Micron (MU +5.3%)
- Nvidia (NVDA +2.7%)
- Rockwell (ROK -0.5%)
- Teck Resources (TCK +0.5%)
- Texas Instruments (TXN +1.1%)
- New lows:
- Novo Nordisk (NVO +0.3%)
Wed, Oct. 19, 9:43 AM
- Though terms have not been disclosed, all litigation between Pure Storage (PSTG -0.7%) and EMC is considered settled.
- Undefined payment to Dell (NYSE:DVMT) noted.
- Pure Storage and EMC had been in dispute over patent infringements since 2013, with the most recent development prior to today involving a $14M verdict awarded to EMC that was set aside in early September.
- Update: Dell payment filed at $30M (8-K).
Fri, Oct. 7, 9:19 AM
- Yair Snir has reportedly transitioned to Dell EMC's (NYSE:DVMT) ventures segment, Dell Technologies Capital.
- Prior-held role at Microsoft (NASDAQ:MSFT) said to remain unfilled.
- Dell Technologies Capital considered to target early and late-stage start-up investments within storage, security, hybrid cloud and big-data segments.
Fri, Sep. 30, 12:10 PM
- In what continues a trend of positive first-day trading momentum already realized in this year's Acacia Communications, Twilio, Line, Talend, Apptio and other offerings.
- Initial price of $16 (+91.1%%), above originally expected range of $13-$15.
- Proceeds of raise approximately $238M.
- Nutanix (NTNX N/A) competes in various ways with EMC/VMware (DVMT +0.6%), Hewlett Packard Enterprise (HPE -0.5%), NetApp (NTAP +3.1%), Nimble Storage (NMBL +0.8%), Pure Storage (PSTG +0.4%) and others.
Mon, Sep. 12, 9:59 AM
- OpenText's (OTEX +7.6%) offer for the ECD (NYSE:DVMT) business represents 2.7x ECD FY 2015 revenue ($599M).
- Looks to onboard the acquisition to OpenText's operating model within the next 12 months.
- Transaction expected to close within 90 to 120 days, subject to regulatory approval and formal closing procedures.
- Mark J. Barrenechea, OpenText CEO and CTO: "We are at the beginning of the Digital revolution where extreme connectivity, automation, and computing are converging. This acquisition further strengthens OpenText as a leader in Enterprise Information Management, enabling customers to capture their Digital future and transform into information-based businesses. We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText."
- Conference call
- Press release
Mon, Sep. 12, 9:24 AM
- The Wall Street Journal takes a look at the rise in use of and revenue derived from flash-based storage products over recent years.
- Pure Storage (NYSE:PSTG) and Nimble Storage (NYSE:NMBL) are highlighted with respective 9,650% and 641% annual revenue increases from 2013 to the present trailing 12 months period.
- The examination, however, cites a 20% decrease in share price for Pure Storage on the year with a 9% lower price for Nimble Storage over the same term. Competition in the enterprise data storage space, particularly in regard to flash solutions, is cited as becoming increasingly tight as demand for more efficient data centers continues to rise.
- Flash arrays offered by competitors EMC (NYSE:DVMT), IBM (IBM), NetApp (NASDAQ:NTAP), Hewlett Packard Enterprise (NYSE:HPE), Hitachi, Oracle (NASDAQ:ORCL) and others are expanding onto the market and subsequently heightening pricing pressure within it.
- Despite a competitive strain, the report goes on to assert current downcast valuations for small players in the area, especially Pure and Nimble, could pose appealing buyout opportunities going forward.
Thu, Sep. 8, 1:52 PM
- Following the conclusion of its EMC (NYSE:EMC) takeover, the largest-ever of its kind in the space, Dell Technologies will reportedly cut positions primarily within its U.S. supply chain, administrative and marketing divisions.
- The newly-formed private company is looking to cut costs following the deal completion as it plans to ramp revenue efforts.
- 140,000 people are presently employed by the organization.
Wed, Sep. 7, 3:04 AM
- The final piece in Dell's complex $62B acquisition of EMC is set to fall into place today, when an unusual tracking stock with a notional face value of more than $16B starts trading in New York to help finance its takeover.
- The new Class V shares will represent some 65% of its stake in VMware (NYSE:VMW) - though holders will have no direct rights in the company and Dell will have the right to switch the underlying assets the shares represent in future.
- Will the largest acquisition ever in tech represent the creation of a new giant or the management of a declining sector of the industry?
Fri, Sep. 2, 4:43 PM
- Pure Storage (NYSE:PSTG) registered somewhat of a victory this week in a case that has been ongoing since 2013. A federal judge has ordered a new trial and held back the $14M figure originally ruled in March.
- Pure's general counsel: "We continue to believe that we will ultimately prevail in the patent infringement case—and today’s ruling is a major step in that direction."
- A new trial is issued to discern validity of a key disputed component Pure argues was already protected by a 2002 Sun Microsystems patent.
- Pure Storage closed up 2.3% today while EMC (NYSE:EMC) closed 0.35% lower ahead of next week's conclusion of its merger with Dell.
Wed, Aug. 31, 5:57 PM
- Charter Communications (CHTR +0.5%) -- newly larger after its deals for Time Warner Cable and Bright House Networks -- is up 3.4% after hours following news that it's joining the S&P 500 after the close on Sept. 7.
- Charter's replacing EMC, headed for a purchase by Dell around that time, in the index.
- Meanwhile, Kraft Heinz (KHC +1.7%) will replace EMC in the S&P 100.
Fri, Aug. 19, 7:43 AM
Tue, Aug. 16, 8:04 AM
Tue, Jul. 19, 3:24 PM
- EMC (EMC +2.1%) announces the near-unanimous approval of its shareholders to merge with privately-held Dell.
- $60B deal would mark the largest ever in the technology space.
- The newly formed company will be known as Dell Technologies and will absorb EMC's VMware (VMW +9.3%), RSA Security and Virtustream.
- From Joe Tucci, EMC Chairman and CEO: "Today's resoundingly favorable shareholder vote clearly supports our view that combining Dell and EMC will create a powerhouse in the technology industry. The Board and I care very deeply about, and have worked diligently to represent, what we believe is the best outcome for all stakeholders. I want to thank our shareholders for their support, as well as our customers and partners. My special thanks to the talented people of EMC for their hard work, dedication and passion."
- The release also notes one of the remaining obstacles in the way of completing the deal is securing regulatory approval from China, something that has proved a challenge for some other technology deals just this week. However, the EMC memo does state the deal is expected to be completed within the initially declared timeframe sometime around the fall.
- This news comes just after yesterday's positive earnings report.
Tue, Jul. 19, 3:39 AM
- Scientists reveal method for storing rewritable digital data at record density.
- Involves rearranging individual chlorine atoms on a sheet of copper.
- Provides roughly 100x more data per square inch than the world's most efficient hard drive.
- Could write the entire contents of the Library of Congress in a space smaller than a dust mite.
- Key challenge is speed.
- Source links: Nature, Popular Mechanics
- Also see Richard Feynman's There's Plenty of Room at the Bottom lecture
- Disk drive stocks: OTCPK:CBEX, EMC, HILL, HTCH, IBM, IMN, IVAC, NTAP, QBAK, SXCL, SMIT, STX, VECO, WDC