Today, 9:46 AM
- Activist Elliott Management has disclosed a 4.4% stake in videroconferencing and unified communications (UC) hardware/software vendor Polycom (PLCM +10%), and a 6.3% stake in UC peer Mitel (MITL +17.1%). Each position was worth ~$100M going into today.
- In an open letter, Elliott declares the unified communications/collaboration space is overdue for consolidation, and calls on Polycom and Mitel to merge. "The combination would double the scale of Polycom to $2.5 billion in revenue. Between Mitels $164 million of EBITDA in 2014 and $100 $150+ million of synergies available, Polycom would quickly become a $500+ million EBITDA company following a combination with Mitel. Scale provides important competitive advantages in addition to the financial benefits of greater diversification, stability and access to capital markets."
- The firm also argues Polycom faces tough videoconferencing competition from Cisco, Avaya, LifeSize (Logitech), and others - "The smaller, newer players continue to take share with cheaper and simpler products while the larger, diversified vendors use their marketing power and bundling to squeeze out companies like Polycom." - and that Mitel's Canadian incorporation could yield tax benefits.
- Elliott: "Polycom's stock can increase by over 30% to $14.75 per share by the end of 2016 and nearly 85% to $20.50 per share by the end of 2017. The best part is that we assume the exact same multiple and absolutely no improvement in revenue trajectory ... the transaction is so compelling that Polycom could pay $10.00 per share for Mitel in an all-stock transaction and still yield a 70% return by the end of 2017 and a 95% return by the end of 2018."
- Also: Elliott notes it has a stake in another UC product provider, ShoreTel (SHOR +0.9%). Mitel made a failed attempt to acquire ShoreTel last year; Elliott argues a deal between the two still makes sense.
Wed, Aug. 26, 4:21 PM
- The Nasdaq has closed its latest ultra-volatile day up 4.2%. Chip stocks, hit hard in recent weeks amid China/inventory concerns, were among the standouts (SOXX +5%) during the rally: Big gainers included Nvidia (NVDA +7.5%), Skyworks (SWKS +6.9%), Qorvo (QRVO +5.9%), Xilinx (XLNX +6.3%), Analog Devices (ADI +7.1%), Linear (LLTC +6.1%), SanDisk (SNDK +7.4%), ON Semi (ON +6.2%), and Cavium (CAVM +5.6%).
- Cybersecurity plays and various other enterprise tech names also did well. Standouts included HP (HPQ +5.5%), Palo Alto Networks (PANW +6%), Rackspace (RAX +9.8%), Red Hat (RHT +5.9%), KEYW (KEYW +8.1%), Brocade (BRCD +5.6%), ShoreTel (SHOR +5.7%), Violin Memory (VMEM +14.7%), and Rapid7 (RPD +7.2%).
- In addition to HP, tech large-caps turning in big gains included Apple (AAPL +5.7%) Microsoft (MSFT +5.5%), Google (GOOG +7.7%), and Intel (INTC +5.5%). Google benefited from a Goldman upgrade.
- KEYW announced a CEO change yesterday afternoon. HP and Brocade are adding to last week's post-earnings gains. Skyworks/Qorvo peer Avago has posted an FQ3 beat after the close.
Wed, Aug. 5, 4:13 PM
Thu, Apr. 23, 4:24 PM
Thu, Mar. 19, 3:24 PM
- Today's notable tech gainers include NFC reader vendor On Track (OTIV +10.6%), Chinese real estate site owner Leju (LEJU +12.9%), mobile accessory vendor Zagg (ZAGG +5.4%), online furniture giant Wayfair (W +6.3%), and LED/chip/storage equipment maker Veeco (VECO +4.6%). The Nasdaq is up 0.2%.
- Notable decliners include mobile IP licensing firm Unwired Planet (UPIP -11.8%), flash storage array vendor Violin Memory (VMEM -7.1%), Chinese CDN owner ChinaCache (CCIH -6%), Chinese data center owner 21Vianet (VNET -4%), telecom equipment vendor Adtran (ADTN -4.6%), and VoIP/unified communications hardware vendor ShoreTel (SHOR -4.9%).
- On Track might be benefiting from Apple Pay enthusiasm. Leju is more than making up the 7% drop it saw yesterday after posting mixed Q4 results, guiding for 21%-25% 2015 growth, and declaring a special dividend. Veeco, which has had accounting issues in the past, disclosed today it had replaced Ernst & Young as its auditor with KPMG.
- Wayfair is now up 31% since its big March 4 Q4 beat. Zagg is up 46% since its iPhone 6-driven Feb. 24 Q4 beat.
- ChinaCache announced this morning its Q4 report will arrive on March 26. 21Vianet has gradually moved lower since posting mixed Q4 results last week. Violin is reversing the big gains seen last week following multiple insider buys.
- Previously covered: Yelp, Envivio, Novatel, Digital Turbine, Sungy Mobile, SuperCom, healthcare tech, Solar3D, China Mobile, Red Hat
Tue, Feb. 3, 1:25 PM
- Though the Nasdaq is only up 0.4%, a long list of tech firms are posting outsized gains today.
- It's a good day for online real estate: Merger partners Zillow (Z +5%) and Trulia (TRLA +4.9%) are up sharply, as are Chinese online real estate plays SouFun (SFUN +5.2%), E-House (EJ +6.5%), and Leju (LEJU +3.8%).
- Other major tech gainers include security software firm Imperva (IMPV +4.7%), gaming headset maker Turtle Beach (HEAR +6.6%), salvage auction site Liquidity Holdings (LQDT +7.4%), RF filter tech developer Resonant (RESN +10.7%), telecom equipment/SDN software vendor Cyan (CYNI +10.1%), Chinese CDN owner ChinaCache (CCIH +10.8%), application delivery controller vendor A10 Networks (ATEN +6.1%), Chinese sports lottery site 500.com (WBAI +7.6%), and unified communications hardware/software firm ShoreTel (SHOR +6.7%).
- Earlier: Solar stocks soar as oil tops $51, CSIQ strikes deal
- Earlier: 3D printing stocks routed after Stratasys warns
Wed, Jan. 28, 4:12 PM
Tue, Jan. 27, 5:35 PM| Tue, Jan. 27, 5:35 PM | 4 Comments
Nov. 17, 2014, 10:31 AM
- Mitel (MITL +0.5%) has withdrawn its $540M ($8.10/share) offer to acquire ShoreTel (SHOR -8.6%), first announced on Oct. 20.
- Mitel says its decision stems from "the repeated refusal of ShoreTel's Board of Directors to engage in discussions of any kind regarding a potential transaction." ShoreTel has fallen to $7.50 in response.
Oct. 23, 2014, 4:13 PM
Oct. 20, 2014, 12:50 PM
Oct. 20, 2014, 10:08 AM
- Following a rejection from ShoreTel's (SHOR +16.1%) board, Mitel (MITL -1.2%) has gone public with an offer to buy the fellow VoIP/unified communications hardware and software provider for $540M, or $8.10/share, in cash. The price represents a 24% premium to ShoreTel's Friday close.
- Mitel says its proposal will remain open until 5PM ET on Nov. 20.
- ShoreTel currently trades at $7.50; its 52-week high is $9.81. With Mitel's market cap only at $936M, there could be some doubts about its ability to pull off a $510M all-cash acquisition. The company had $134.2M in cash at the end of June, and $342M in debt.
Oct. 20, 2014, 9:21 AM
Sep. 24, 2014, 5:35 PM
Aug. 8, 2014, 5:40 PM
Aug. 8, 2014, 12:47 PM
SHOR vs. ETF Alternatives
ShoreTel Inc along with its subsidiaries is engaged in providing business communication solutions, including; integrated voice, video, data and mobile applications based on Internet Protocol (IP) technologies.
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