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  • Chipotle defuses guacamole panic  [View news story]
    Still a positive for the world. Because of this fear-mongering/misread... at least more people know 10-Ks exist.
    Mar 5, 2014. 01:25 PM | 3 Likes Like |Link to Comment
  • Transocean -2% as speculative builds hint at move toward Seadrill model  [View news story]
    It's because Esa Ikaheimonen was Seadrill's CFO for 2 years before he came to RIG in late 2012. Apparently he brought the onions, since Seadrill's going on about being a 'responsible market leader' and not building anymore. Build-low (now), contract-high (later) while you have the chance. This also isn't the first spec build, there was a 5 jackup program announced last quarter. They're drawing down cash they built up for legal defense earlier.
    Feb 27, 2014. 01:12 PM | Likes Like |Link to Comment
  • Cavium Networks, Inc. beats by $0.01, misses on revenue  [View news story]
    It's not revenue of 127m. Not sure where you got that number from.
    Jan 29, 2014. 04:37 PM | Likes Like |Link to Comment
  • Intel -5.1% AH after cautious enterprise remarks; AMD, Nvidia tick lower  [View news story]
    Bernstein's Stacy Rasgon didn't get to finish out his question before getting sent back into the queue.

    I expect some extra-bearish retaliation in that note tomorrow.
    Jan 16, 2014. 07:00 PM | 3 Likes Like |Link to Comment
  • Broadcom: A Value Investor's Dream  [View article]
    Great article.

    Isn't Renesas just a continuation of a pattern of value destruction (check the margins on the mobile segment and contrast that with the amount of money spent on R&D)? It's another ~$164m dumped back into the company instead of paid out to shareholders. You would like a dividend or buyback (as would plenty others), but BRCM seems intent on rolling the dice with future design wins.
    Oct 4, 2013. 06:02 PM | Likes Like |Link to Comment
  • More on AT&T/Leap: AT&T is paying $1.18B for Leap's equity, and assuming $2.8B in net debt. Leap shareholders will also receive net proceeds from the sale of spectrum Leap bought for $204M last August. Leap has 5M prepaid subs on a network covering 96M people, and AT&T says it will keep the Cricket brand and expand its reach. But this deal is mostly about acquiring Leap's spectrum (covers 137M people), much of which is unused and could be of use in AT&T's 4G buildout, especially in urban areas. Expect the FCC to closely scrutinize the deal; will new leadership yield a different outcome than the one for the T-Mobile deal? LEAP now +106.5% AH to $16.48, investors are betting on a higher bid. TMUS +4.1%. T -0.4%. (PR[View news story]
    $4B EV = 2.8B Net Debt + 1.2B ($15 * 79M shares)
    ~2.2GHZ-POP = 23 MHZ average * 98 POPs

    So $1.81/MHZ-POP... Not sure if that's cheap or expensive. Don't know how much of the spectrum is PCS ($4/MHZ-POP) versus AWS ($1/MHZ-POP). And they have 5M subs.
    Jul 13, 2013. 04:06 AM | Likes Like |Link to Comment
  • Smithfield Foods (SFD +0.3%) made an interesting disclosure yesterday in a SEC filing. The company was considering a "potentially significant acquisition" of a large business in the packaged meats sector. The speculation from dealReporter is that it was Hillshire Brands (HSH +1.5%) in the crossfires, an acquisition which makes sense and could be on the table again if regulators stop the Shuanghui International purchase of Smithfield.  [View news story]
    Could also be Oscar Mayer from KRFT, not sure if that's up for sale though.
    Jun 19, 2013. 12:53 PM | Likes Like |Link to Comment
  • As broadly expected, Alcatel-Lucent (ALU) intends to cut costs by €1B and sell another €1B of assets within two years as it looks to become cash-flow positive by 2015, at which point the telecom-equipment company will look to slash its debt by €2B by selling shares or through further asset sales. The changes are part of a recovery program called the "Shift Plan," which also includes Alcatel-Lucent focusing on IP networking and ultra-broadband access. Alcatel-Lucent is hiring a COO as well, while CFO Paul Tufano will leave. Shares are +6.7% in Paris. (PR[View news story]
    Prepping for a Cisco sale?

    Divestitures should lower the enterprise value enough that CSCO at least considers the (likely) margin-dilutive consolidation in the name of revenue growth; most importantly, they can use the offshore cash.
    Jun 19, 2013. 12:53 PM | Likes Like |Link to Comment
  • Coach (COH) will increase its push to become a full lifestyle brand as it seeks to keep up with Michael Kors and Tony Burch, but could face an uphill battle. The analyst take: Typically, high-end retailers have more success expanding into new products when dealing from a position of strength - instead of playing catch-up. Though early results for new shoe products have been promising, Coach faces some margin risk as inventories expand in new areas.  [View news story]
    Didn't know Tory's brother Tony [Burch] is getting into the apparel business too...
    May 30, 2013. 11:42 AM | Likes Like |Link to Comment
  • Blowing up the well-entrenched pay TV model won't be very easy for Senator John McCain with the politician not even on the Senate Commerce Committee anymore observes AllThingsD's Peter Kafka. But if a la carte pricing were to ever become a reality, one network that has a lot to lose is Disney's (DIS -0.1%) ESPN. The sports channel lands a whopping +$5 per subscriber from providers while only 25% of those paying the bills say they watch the network regularly. Another way Disney could ultimately be exposed is through its piece of A&E Networks which is able to bundle many add-ons around mega-hit The Walking Dead to ratchet up carriage fees.  [View news story]
    A&E = Storage Wars
    Disney-owned JV (with hearst)

    AMC = The Walking Dead
    Publicly-listed (AMCX) and former Cablevision holding.
    May 9, 2013. 10:41 AM | 1 Like Like |Link to Comment
  • Southeastern Asset Management (now an 8.5% owner) intends to use "all options at our disposal" to oppose the Dell (DELL) buyout (13D). The $13.65/share offer price, Southeastern says, puts a value of less than $1/share on the PC, server, and software and peripherals businesses combined. Total corporate value is closer to $24/share.  [View news story]
    Southeastern -> Southwestern (2nd sentence)?
    Feb 8, 2013. 03:36 PM | Likes Like |Link to Comment
  • Clearwire (CLWR) has received an unsolicited $3.30/share buyout offer from Dish Network (DISH). That easily trumps Sprint's (S) $2.97/share offer. The proposal requires Clearwire sell Dish 24% of its spectrum for $2.2B and use the proceeds to pay down debt, as well as (with extra financing) agree to build a 4G network for Dish. Sprint has responded to the proposal by calling it "not viable ... in light of Clearwire's current legal and contractual obligations." Clearwire's board will "engage with Dish;" shares are halted. Sprint -2.5% AH. Dish -2%[View news story]
    Wonder if the FCC/DoJ gets involved. +1 carrier is a pretty easy sell for them.
    Jan 8, 2013. 10:49 PM | Likes Like |Link to Comment
  • AT&T announces the sale of more than 10M smartphones in Q4 vs. 9.4M a year ago. "This included best-ever quarterly sales of Android and Apple smartphones." This would suggest Q4 iPhone sales in the 7M-8M range, says BI's Jay Yarow. AAPL +1%, T -1.3% premarket. (PR[View news story]
    More phones = more equipment revenue = overall margin dilution. Last year they posted a monster quarter in phone hardware and operating margins fell down to ~15% from the 25-30% range.
    Jan 8, 2013. 03:05 PM | Likes Like |Link to Comment