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  • Qualcomm Is Smart And Rich Enough To Challenge Intel In Server Processors  [View article]
    Qualcomm has spent the last year trying to transform itself from a technology growth company into a value company.

    A war for server dominance with Intel does not seem like it pairs well with that business transformation.
    Oct 11, 2015. 09:55 PM | 1 Like Like |Link to Comment
  • Amex: Can't Leave Home Without It?  [View article]
    Think of the businesses that you have relationships with that have consistently provided you with excellent service and value over the long haul.
    Pretty short list?

    American Express has been on my short list for decades. That doesn't necessarily make AXP a great investment but it has keep me a client for several decades. I haven't been an investor for as long as I've been a client but I have held AXP more than a decade.

    I loose count the number of times that they have gone to bat for me when I had an issue with a business. I do believe that their clout made a difference in the outcome, many times. They act swiftly and with minimal hassle for me. On the other hand I have had times when I've reported fraudulent activity on another card to a bank and they put me under the microscope forcing me to prove that I wasn't the source of the fraud instead of believing me and investigating it themselves.
    Mar 31, 2015. 06:48 AM | 3 Likes Like |Link to Comment
  • The Downside For Medallion Financial Only Just Beginning  [View article]
    Pages and pages of talk and yet the author barely touches on the real reason that Medallions will continue to be strong in NYC. It is an island! There can not be unregulated, unrestricted access to Manhattan. Traffic congestion will not allow it. Thousands of UBERS would only result in everyone sitting in traffic instead of doing what you hire a taxi to do. Get you to your destination.

    The uber take over will not happen in Manhattan. If it were to happen the quality of service for everyone and the ability of anyone to make a profit would evaporate.
    Dec 20, 2014. 08:59 AM | 2 Likes Like |Link to Comment
  • Bloomberg: IBM offered Globalfoundries $1B to take chip unit  [View news story]
    Didn't Bloomberg previously report that GlobalFoundries was offering $1B but that IBM wanted $2B.

    Now they are saying that IBM offered to pay $1B but that Global wanted $2B

    I guess they got the sign mixed up.

    I'll take it for $1B if the offer is still there IBM.
    Aug 5, 2014. 12:29 AM | Likes Like |Link to Comment
  • IBM's Culture Is Its Best Long-Term Investment Metric  [View article]

    Obviously you need to change your salutation to "Happy Trails to you"
    in to have any credibility with Momintn.

    Cheers, Lowcarb
    May 2, 2014. 10:26 PM | 1 Like Like |Link to Comment
  • IBM's Culture Is Its Best Long-Term Investment Metric  [View article]
    Yes, Peter, your title is appropriate. IBM's culture is in decline, hence it's long term prospects under extreme pressure.
    May 2, 2014. 08:35 AM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update.  [View article]
    Hardware revenue is not irrelevant, but gross margin in Hardware might be.

    Hardware sales drive:

    Software sales:
    Service sales:
    Consulting engagements:
    Financing services:

    Think about the last car you bought. (I know it's an imperfect analogy because car dealerships and car manufacturers are separate businesses, but stick with me)

    How much did they make off of you selling the car? (Hardware)
    now think about...
    How much did they make off of you financing the car?
    How much are they making off of you servicing the car?
    How much of this would they have made off of you if they didn't sell you the car in the 1st place?
    Apr 17, 2014. 10:20 AM | 3 Likes Like |Link to Comment
  • WSJ: Globalfoundries the top candidate to buy IBM's chip foundry ops  [View news story]
    IBM's chip business struggles for several reasons:

    1) IBM's chip fabs are small. You need to amortize the development costs of a chip technology over a lot of chips. IBM just doesn't have the scale to do that. Being big enough to make a profit requires a bigger investment (in a direction they don't want to go) than IBM wants to make

    2) IBM's chip fabs provide white glove, red carpet, gold plated, diamond encrusted .. (get the point) service to the mainframe division. This is a level of service that the chip fabs are not properly compensated for so they look bad (on paper). The mainframe groups reap the rewards for being able to get special modifications and priority that they could never get (or afford if it even was available ) from a foundry. The mainframe designers at IBM will have to learn a new way of working when they can't get their contract manufacturer of chips to drop everything to rush a last minute change to them.
    Apr 5, 2014. 05:09 PM | 1 Like Like |Link to Comment
  • IBM: Take A Long-Term Perspective  [View article]
    IAEResearch, I disagree with your analysis on several fronts.

    The $B restructuring charge is not a new, unique or one time event. IBM has gotten into the habit of taking this type of a charge on a regular basis. I don't expect any improvement in IBM operations as a result of this latest house cleaning. This really should not even be called a significant event for IBM. It has become part of their annual cost of business.

    The massive stock repurchases and failure to grow top line revenue are clear signs that IBM has not and still does not have a strategy to grow the business. They are contracting, selling of divisions at fire sale prices and using buybacks to keep the share price up. That should not be a long term strategy, but IBM seems to be using it as one. Yes they also buy up and absorb lots of small businesses, often with great fanfare. You don't hear much when those businesses are abandoned and allowed to wither within the massive and reclusive IBM infrastructure. Are they really getting a good return on those purchases or is it just keeping the hamster wheel spinning as they continue to contract?

    A business that resets and reinvents itself can be a profitable turnaround. I don't see IBM fitting that scenario so I'm not inerested in owning IBM.
    Mar 3, 2014. 08:14 AM | 2 Likes Like |Link to Comment
  • WSJ: IBM mulls sale of semiconductor manufacturing ops  [View news story]
    There is a reason why IBM has owned it's own fabs. They get to tweak and tune the semiconductor technology to fit the needs of the server to get maximum performance for their processor design. When you own the fab you can get the technology tuned to match your needs. When you are a customer of a foundry you have to tweak your design to perform as best as it can with the technology performance that the foundry delivers.
    Yes, you can pay for a level of line tailoring but not near the magnitude of what IBM can do for themselves in their own fab.
    By owning the semiconductor fab IBM can also do whatever is needed to deliver parts to ship a new mainframe offering. If you are buying from a foundry there is only so much expediting that you can buy, and you will probably pay dearly for it.
    If you are using the same semiconductor technology and foundry that your competitors are using how do you differentiate your product?
    If IBM sells off the Microelectronics unit you can bet that in a generation or two there won't be anything special enough about a Z system that makes a customer want to stay with IBM.
    Feb 8, 2014. 09:57 PM | Likes Like |Link to Comment
  • Nokia And The Graphene Opportunity  [View article]
    Wow. I think you might have the cart way way way in front of the horse.

    Graphine is an interesting material but it is still a research lab material.

    For semiconductor use graphine isn't a material you would buy a sheet of and use to fabricate a computer chip. It would have to be deposited, in a single layer of atoms, on the semiconductor wafer during the manufacturing process.

    Mixing some graphine dust with plastic resins and making a phone case and making semiconductors out of graphine are two applications which I think are so far apart from each other that they should not me mentioned in the same article.
    Feb 3, 2014. 01:15 PM | 3 Likes Like |Link to Comment
  • Medallion Financial Trouble Brewing Quickly  [View article]
    "Obviously these things take time and political forces can destroy the dynamic. If such happens then I will surely change opinion. "

    Paul, let me call your attention to the composition of the BoD of TAXI. In particular:
    Governor Mario M. Cuomo
    Willkie Farr & Gallagher LLP
    Elected 1996

    Senator and Governor Lowell P. Weicker, Jr.
    Elected 2003

    TAXI has got plenty of political pull.
    Dec 27, 2013. 11:25 AM | 1 Like Like |Link to Comment
  • IBM: Upside To The Tune Of $230 - UBS Analyst Has It Backwards  [View article]
    Check your "More On The Target" section . I think you said UBS a few times when you meant to say IBM. It is difficult to read with these mistakes.
    Nov 10, 2013. 07:08 AM | Likes Like |Link to Comment
  • IBM licenses ARM CPU/GPU cores to bolster custom ASIC business  [View news story]
    Oct 25, 2013. 02:15 PM | Likes Like |Link to Comment
  • IBM: We've Been Here Before, And It's The Moment Buyers Get Rich  [View article]
    You ignored the P7+ refresh in August 2012 that incorporated 32nm semiconductor technology and models with up to 96 cores (even more announced later)
    Oct 17, 2013. 05:14 PM | 1 Like Like |Link to Comment