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Philip Marlowe

Philip Marlowe
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  • Fortinet acquiring Wi-Fi hardware/software vendor Meru for $44M [View news story]
    Finally, you get to correct me once :).
    May 27, 2015. 01:15 PM | Likes Like |Link to Comment
  • Fortinet acquiring Wi-Fi hardware/software vendor Meru for $44M [View news story]
    There must be a very strong belief in the future of WiFi in the networking industry. Meru is getting acquired shortly after Arumba. Arumba was not a great deal financially, but MERU is a total basket case. They have massive losses and plummeting revenues.

    There aren't that many independent wifi access point companies left out there. If you too believe in the future of WiFi I would recommend UBNT. They have a good chance of disrupting the industry and taking over the majority of the market.
    May 27, 2015. 12:53 PM | Likes Like |Link to Comment
  • Qorvo, Skyworks gain following Goldman launches (updated) [View news story]
    Regarding both of your posts. It does not seem like you have much knowledge of the technology or the industry. GTAT was selling a technology whose initial adoption was uncertain. Eventually the technology was not adopted and that is why they went bankrupt.

    This is not an issue with SWKS. Cell phones use high frequency radio waves to communicate and it is a very safe bet that they will do the same for the foreseeable future. Thus, the risk that GTAT faced does not exist for SWKS.

    Your second post is overly simplistic. Yes, the stock price went up over 60% last year. How much did revenues go up? About 60% as well. How about earnings per share? The answer is 116%. So things are not as simple.

    Personally, I think SWKS is a strong buy at these levels. I do not have time to go into the details as to why. I merely wanted to point out that your analysis overly simplistic.
    May 22, 2015. 04:11 PM | 10 Likes Like |Link to Comment
  • Qorvo, Skyworks gain following Goldman launches (updated) [View news story]
    Also in that industry, today Mizuho started Avago with a buy rating and a $150 target.
    May 22, 2015. 12:08 PM | 2 Likes Like |Link to Comment
  • Economic growth increased slightly in April [View news story]
    The headline is correct. The Chicago national activity index is a little confusing. Negative value does not mean contraction. The index is set up so that a value of zero means expansion at the average historical rate of the US economy. Thus a slightly negative value means that expansion is less than the historical average but there is still expansion. I don't remember what value signifies actual contraction.

    But -0.7 is the dangerous value -- it signifies that you are about to slip into recession. +0.7 is also a little dangerous as it signifies a period of high inflation.
    May 21, 2015. 11:34 AM | Likes Like |Link to Comment
  • Hamm: Saudi move to flood crude market could spark lifting U.S. export ban [View news story]
    You know if they lift the ban, US producers would still have to compete with cheap saudi oil internationally. In fact, the competition would probably be worse because then US producers will not have the lower cost of transport advantage they have in the US. I really do not see the connection between the two issues.
    May 14, 2015. 12:21 PM | 5 Likes Like |Link to Comment
  • Cypress makes $19.75/share offer to buy Integrated Silicon [View news story]
    Woohooo! I am so glad I did not sell after the initial offer was made. Lets get a bidding war going! Paging Carl Icahn!
    May 13, 2015. 05:33 PM | Likes Like |Link to Comment
  • TowerJazz down 5.6% in spite of Q1 beat, solid Q2 guidance [View news story]
    They "beat" expectations on non-Gaap basis. But TSEM's non-GAAP numbers are a fantasy. They are far more inflated than the usual tech company non-GAAP numbers, which is quite an achievement.

    On GAAP basis, they served up a surprise loss. Thus, the stock is falling. The big irony is that for this quarter it seems that there might have been a true one time cost that should have been excluded from the GAAP numbers. But since TSEM have lost all credibility with their non-GAAP numbers, they will not get the benefit from the exclusion of this loss.

    TSEM should align their non-GAAP reporting standards with those of other tech companies. Then their non-GAAP numbers will be taken more seriously. Those standards are already generous enough, by the way.
    May 13, 2015. 02:36 PM | 1 Like Like |Link to Comment
  • Verizon scoops up AOL for $4.4B [View news story]
    This is exactly what I said.
    May 12, 2015. 11:58 AM | Likes Like |Link to Comment
  • Chinese smartphone sales fall in Q1; Apple's share jumps to 14.7% [View news story]
    I think the biggest factor is subsidy cuts. If you had to pay the full sticker price for your phone when you purchased a new one, you would try to delay your purchase as well. And if I remember correctly subsidy cuts started about Q2 last year so Q1 was the last quarter without them.

    I am not sure why the chinese government decided to enforce subsidy cuts. I think it may be because they new that apple were coming into the country and wanted to blunt iphone demand at least until their own companies come up with a competitive product.
    May 11, 2015. 02:24 PM | 6 Likes Like |Link to Comment
  • Mayweather-Pacquiao leaping past records, but how high? [View news story]
    It is a shame it turned out to be such a lousy fight in the end.
    May 4, 2015. 09:00 PM | 3 Likes Like |Link to Comment
  • U.S. sets new rules for oil shipments by rail [View news story]
    Not true. Pipelines leak all the time. It is only the bigger leakes that get reported or fixed. There is a certain amount of leakage which is deemed acceptable and allowed to go on. If you look at pictures of old pipelines, the ground under them is usually brown from all the leakage.

    Oh and by the time you turn off a valve and the flow stops due to the turned off valve, you usually have leaked much more than any train can carry.

    The only benefit pipelines have vs trains vis a vis public safety is that they are less likely to cause a violent explosion (unless they are gas pipelines of course).
    May 3, 2015. 04:25 PM | 2 Likes Like |Link to Comment
  • U.S. sets new rules for oil shipments by rail [View news story]
    Apparently, the new tank car required by regulators is exactly identical to the "tank car of the future" that Greenbrier has been marketing and selling. This is not surprising, Greenbrier recognized the issue and provided a solution. Regulators, wanting to be pragmatic and industry friendly are very likely to choose a solution that already exists and is being manufactured in large numbers without any problems.

    Greenbrier really did well to get ahead of this issue and will probably benefit most from the new rules.
    May 1, 2015. 04:46 PM | 4 Likes Like |Link to Comment
  • Skyworks up 3.3% on FQ2 beat, strong FQ3 guidance [View news story]
    This was a very positive call. I needed this after the nasdaq had such a terrible day today.

    They are growing in every area including cell phones, internet of things, automotive you name it. Their high margin integrated solutions are growing and putting skyworks in situations where they have fewer and fewer competitors. But even the legacy parts that those integrated solutions are supposed to replace are also growing.

    They said they had no negative impact of F/X. It is true that they have all their sales in dollars but they do sell to a lot of foreign companies. Other companies that price their products in dollars (Intel) were hurt by F/X. This tells me that Skyworks products are so in demand that the foreigners are paying effectively higher prices without complaining or cutting their spending.

    They acknowledged there was some weakness in China, but said that was a bump in the road and things are improving now.
    Apr 30, 2015. 06:05 PM | 6 Likes Like |Link to Comment
  • Skyworks Solutions beats by $0.02, beats on revenue [View news story]
    I wouldn't call this a trend. It is probably a one time thing due to the strong dollar.
    Apr 30, 2015. 05:01 PM | 1 Like Like |Link to Comment