Tue, Aug. 25, 5:35 PM
- investors should stick with "market darlings" - the 25 stocks that had performed the best during the six months before a market pullback - according to the analyst team at RBC.
- The firm notes that although many recent winners are leading the market lower, the extent of the underperformance is just 1%; it also says investing in the group following sharp market pullbacks is a winning strategy over the ensuing week, month and six months.
- RBC's 25 market darlings are AET, ALTR, AMZN, AIZ, CVC, CI, CAG, EA, EQIX, EXPE, GME, GOOGL, HAS, HCA, MNST, NFLX, NKE, PRGO, REGN, SBUX, TSO, TWC, TSS, UA, UHS
Thu, Jul. 23, 4:45 PM
Thu, Jul. 23, 4:19 PM
Wed, Jul. 22, 5:35 PM
- ABAX, ACTG, ALGN, ALTR, AMZN, ATHN, BCR, BJRI, BLDR, BYD, CA, CB, CBI, CHE, CLGX, CLS, COF, CPHD, CTCT, CYN, DGII, ETFC, FET, FII, FLEX, FSL, GHL, GIMO, HBHC, HWAY, IG, JNPR, LOGM, LSTR, MITK, MKTO, MSCC, MXIM, N, NANO, NTGR, P, PEB, PFG, PFPT, PMCS, QLIK, RGA, RHI, RSG, RT, SBUX, SIVB, SPNC, SRCL, STAG, SWKS, SYK, T, TRIP, TRN, UIS, V, VRSN, WIRE, WRE
Mon, Jun. 1, 9:21 AM
Mon, Jun. 1, 8:49 AM
- As rumored over the weekend, Intel (NASDAQ:INTC) agrees to buy Altera (NASDAQ:ALTR) for $54 per share in cash, or $16.7B. The purchase is expected to be accretive to Intel's EPS and free cash flow in the first year after the close (in six-to-nine months).
- A webcast to discuss the deal is set for 10 ET.
- Source: Press Release
- INTC +0.65% and ALTR +4.8% (to $51.20) premarket
- Previously: WSJ: Intel to announce $54/share Altera deal on Monday (May 31)
Sun, May 31, 4:02 PM
- Following more than two months of drama, Intel (NASDAQ:INTC) is set to announce tomorrow it's buying FPGA vendor Altera (NASDAQ:ALTR) for the same $54/share price Bloomberg reported hearing in early April, per the WSJ.
- The reported price translates to a $16.2B valuation (per Yahoo/Google Finance), or $13.2B after factoring net cash/investments. It represents an 11% premium to Altera's Friday close, and a 56% premium to where it traded before the WSJ first reported of deal talks on March 27.
- Since the first reports, Altera has posted disappointing Q1 results/Q2 guidance, and Intel has announced a server CPU partnership with programmable ASIC maker eASIC (Pending:EASI) that has been seen as a hedge against Altera. But that alliance could prove complementary, as FPGAs remain the gold standard for rapid programmability and low design costs, while ASICs maintain a size, performance, and power edge.
- Will Xilinx (NASDAQ:XLNX) get acquired next? Reuters reported earlier this month Avago has shown interest in the Altera archrival. But that was before Avago struck a $37B deal to merge with Broadcom.
- Previously: Intel/Altera seen providing many synergies, sparking more M&A
Fri, May 29, 9:14 AM
Fri, May 29, 1:53 AM
- Intel (NASDAQ:INTC) is close to a deal to buy fellow chipmaker Altera (NASDAQ:ALTR) for about $15B, the NY Post reports, stating that a deal is "likely by the end of next week."
- Altera reportedly rejected an Intel $54/share bid just a few months ago and then broke off sales talks, but that was before Altera issued disappointing earnings.
- Intel also has the option to launch a hostile bid after June 1, when its standstill agreement with Altera expires.
- Intel-Altera timeline
Mon, May 18, 9:15 AM
Mon, May 18, 7:25 AM
Tue, May 12, 7:33 PM
- Intel (NASDAQ:INTC) is partnering with programmable ASIC maker eASIC (EASI - recently filed for an IPO) to create custom Xeon CPU products that (per the companies) can deliver up to 2x the performance acceleration of a solution using an FPGA for programmability. Web/cloud service providers (major buyers of custom Xeon parts) are targeted, as are security and big data/analytics workloads.
- eASIC, whose customers include Seagate, Ericsson, and Huawei, argues ASICs designed by its clients deliver the programmability, development cost, and deployment time advantages of FPGAs (to a large extent, at least), while maintaining the size, unit cost, performance, and power draw advantages of standard ASICs. 60%-120% and 50%-80% performance and power advantages are respectively claimed over comparable FPGAs.
- The alliance could act as a hedge against reported acquisition target Altera (NASDAQ:ALTR), whom Intel has partnered with to create solutions that put a Xeon CPU and Altera FPGA in the same package. Web/cloud providers looking to use FPGAs to accelerate processing for algorithms they've developed are among the intended clients. FPGAs can still deliver a level of on-the-fly programmability that eASIC's offerings can't.
- For those interested, eASIC filed its latest IPO prospectus last week. The company had 2014 revenue of $67.4M (+126% Y/Y), and a net loss of $1.1M. As of March 31, eASIC had enabled over 200 custom IC designs and shipped over 21M chips.
- Last week: Intel launches new high-end Xeon CPUs
Fri, May 1, 9:13 AM
Thu, Apr. 30, 4:32 PM
- Intel (NASDAQ:INTC) signed a standstill agreement with Altera (NASDAQ:ALTR) amid M&A talks, Reuters reports. However, the agreement is said to expire on June 1, after which Intel would be free to launch a hostile bid if it wishes. Sources state it's "unclear" whether Intel will make such a move (through a public tender offer) once the standstill expires.
- The news service adds Intel discussed a $58/share bid for Altera in February, but lowered its offer after signing an NDA and poring through Altera's books - Altera's Q1 results and Q2 guidance appear to explain Intel's thinking. Bloomberg previously reported of a $54/share offer.
- ALTR +5% AH to $43.78. Earlier this week, major Altera investor TIG Advisors demanded the FPGA maker resume Intel buyout talks.
- Prior Intel/Altera coverage
Mon, Apr. 27, 5:34 PM
- Arguing "stockholders should have right to choose between Intels reported $54 cash offer and [the] uncertain future of standalone Altera (NASDAQ:ALTR)," TIG Advisors (1.5% stake) is urging Altera investors to vote against lead independent director T. Michael Nevens' reelection at the FPGA maker's May 11 annual meeting. It's too late for investors to submit alternate candidates.
- TIG argues rejecting Nevens will "send a strong signal to the Board to immediately re-engage with Intel." It also thinks the company's reported decision to reject a $54/share Intel offer is unsurprising given "Altera has had a history of overestimating its growth rate."
- The firm thinks Altera would need to produce annual EPS of $2.70 to justify a $54/share valuation, something it thinks is "unlikely to happen over the next few years given the outlook for a secular decline in worldwide base station deployments in 2016-2019 until 5G starts ramping." The 2015 EPS consensus is at $1.31.
- Bloomberg reported two weeks ago TIG, Cadian Capital, and other investors were pushing Altera to restart Intel talks. The company posted a Q1 miss and provided light Q2 guidance last Thursday.
Fri, Apr. 24, 2:03 PM
- Though the Nasdaq is up 0.7% thanks to market-pleasing earnings from Google, Microsoft, and Amazon, chip stocks (SOXX -2.1%) are adding to their Thursday losses after Freescale, Altera, Microsemi, and Maxim joined the ranks of chipmakers offering soft Q2 guidance; Texas Instruments, Xilinx, and Qualcomm did so on Wednesday afternoon.
- NXP (NXPI -4.3%), set to merge with Freescale in a cash/stock deal, is selling off ahead of its April 29 Q1 report. RF chipmakers Skyworks (SWKS -3.8%), Qorvo (QRVO -4.4%), and Avago (AVGO -5.2%) are also seeing steep declines.
- Other decliners include a slew of telecom/networking, microcontroller, and analog/mixed-signal chipmakers. The group includes Marvell (MRVL -3%), ON Semi (ON -6.9%), Atmel (ATML -3.3%), Cypress (CY -4%), Lattice (LSCC -3.9%), Semtech (SMTC -6.9%), Cavium (CAVM -6%), PMC-Sierra (PMCS -2.9%), InPhi (IPHI -3.8%), and Silicon Labs (SLAB -2.9%). Chip packaging/testing firm Amkor (AMKR -5.7%) is also off; its Q1 report arrives on Monday.
- As was the case with TI and Xilinx, soft telecom equipment chip demand was often blamed by those guiding light yesterday afternoon. Freescale (FSL -3.5%) stated it expects network processor division sales to be down Q/Q and RF (base station power amplifier) division sales to be flat. Microcontroller, automotive, and analog and sensor division sales are expected to rise.
- Altera (ALTR -3.3%) stated its "telecom and wireless business, and particularly our wireless business globally looks to be quite weak in [Q2], while the rest for our business will in aggregate be flat to slightly up." Regarding its Q1 miss, the company notes "Industrial, test, compute and storage, and to a lesser extent military, fell short of our forecast" (share loss to Xilinx?).
- Maxim reports seeing "broad-based softness in communications infrastructure demand" and soft industrial bookings to go with healthier mobile/auto demand. The Galaxy S6 appears to be giving a lift to Maxim's mobile sales.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
ALTR vs. ETF Alternatives
Altera Corpdesigns and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools.
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