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Philip Marlowe

Philip Marlowe
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  • Ubiquiti launches new Wi-Fi access points, prices aggressively [View news story]
    In previous conference calls Pera would talk about how they were "spinning silicon" for new unifi ap products.

    Your statement about customized chips may be true in general, but here things are a bit different. First, I doubt there is a good chipset solution out there, because there isn't another product similar to what UBNT is offering -- i.e. enterprise 802.11AC at a low cost. So I suspect that existing chipsets are either consumer chipsets that are not powerful enough or enterprise chipsets that are far too expensive. That is probably why UBNT's previous 802.11AC product was so pricey.

    So I think UBNT will gain first by creating a chipset that fits their target market, where there was none previously available. Second if you design your own chips you save because you won't be paying the margins of another chipmaker. The fabless semiconductor industry gross margins tend to be around 50%, so if they design their own chips they could be saving 50% of the cost.

    Of course you need to have high expertise to do this in house and do it as well as a semiconductor manufacturer would have done it. This is something most companies do not have. But Pera has always been good with technology and attracting tech talent. So I have high hopes for this product.
    Sep 3, 2015. 04:25 PM | 2 Likes Like |Link to Comment
  • Ubiquiti launches new Wi-Fi access points, prices aggressively [View news story]
    I don't think anyone outside of UBNT or their suppliers knows the profit margin on this. I am sure it will be a hot topic of discussion next conference call. I hope the margin will be good simply because Pera has a philosophy of high gross margins.

    Also, they designed their own chips for this product so this could help margins as well as increase their moat.
    Sep 3, 2015. 03:53 PM | 2 Likes Like |Link to Comment
  • Ubiquiti launches new Wi-Fi access points, prices aggressively [View news story]
    Great news for UBNT. At $89 to $110 these babies will sell like hotcakes all over the world. Most of the world (other than the US) is battered by low commodity prices and plunging currencies and they are in no mood for the high prices of CISCO, Ruckus and Aruba. And even in the US people like saving money.

    And the great thing about UBNT is that despite their low prices, they still have excellent margins. That's the benefit of technology.

    When Pera was admitting mistakes about their "poorly executed 802.11ac plan" during the last conference call, I had a feeling he was trying to set up the stage for a new product announcement.
    Sep 3, 2015. 02:07 PM | Likes Like |Link to Comment
  • Diodes buying Pericom Semi for $400M; DIOD +5.4% [View news story]
    It is good to see the great semiconductor consolidation wave continue after a brief interruption.
    Sep 3, 2015. 12:16 PM | Likes Like |Link to Comment
  • AOL/Verizon buying Millennial Media for $248M [View news story]
    I am sure the entire tech industry is sighing in relief. It is great to have Verizon continue the great AOL/Time Warner tradition of hoovering up all the failed and doomed tech companies.
    Sep 3, 2015. 12:03 PM | 1 Like Like |Link to Comment
  • Total railroad traffic declines in August [View news story]
    Intermodal traffic continues to grow. Intermodal is containers and usually includes various high value manufactured goods. Also auto and miscellaneous are growing. Miscellaneous is basically various industrial products.

    This is good news for the economy. The decreases in coal, petroleum and iron ore are masking increases of manufactured goods of much higher values.
    Sep 3, 2015. 11:55 AM | 1 Like Like |Link to Comment
  • Costco reports comp stores sales at -2% [View news story]
    Another american company getting screwed by the strong dollar. Same stores growth was great after adjusting for inflation and gas prices. It is as much as any giant retailer can hope for. But currency screwed them.

    If the fed raises soon it will be a knife in the back of corporate america!
    Sep 3, 2015. 01:01 AM | Likes Like |Link to Comment
  • Disney kicks off 'Star Wars' toy unveiling ahead of Friday sales [View news story]
    Don't forget Jakk's Pacific (JAKK) who will also be making some of the action figures.
    Sep 2, 2015. 08:46 PM | Likes Like |Link to Comment
  • Culp beats by $0.12, beats on revenue [View news story]
    Woohoo! Culp delivers again. When comparing yoy revenues keep in mind that this quarter had one less week than last year's quarter.
    Sep 2, 2015. 04:19 PM | Likes Like |Link to Comment
  • Gross: Fed may have missed its chance to tighten [View news story]
    Not true at all. Low interest rates very much encourage investment. They may discourage saving into ordinary saving accounts or bonds, but they do encourage people to look for more beneficial and productive investments.

    And if you do not think that low interest rates encourage investment, you cannot possibly say that the low interest rates caused the stock market to go up.

    Regarding productivity growth -- these statistics are misleading and masked by deflation. I can tell you that there is great productivity growth in technology if you measure it by the usefulness of technology being produced. But this does not show up in the official statistics, because tech companies are forced to continuously drop their prices.
    Sep 2, 2015. 12:22 PM | 1 Like Like |Link to Comment
  • Treasury yields remain lower after soft PMI number [View news story]
    Perhaps the treasury yield is ignoring the miss of the ISM PMI number because the markit PMI number was a beat. You seem very determined to be negative today.

    Both PMI numbers are well into expansion territory, btw.
    Sep 1, 2015. 11:59 AM | Likes Like |Link to Comment
  • QIWI misses by RUB1.41, misses on revenue [View news story]
    Breifing.com is reporting a beat as well.
    Sep 1, 2015. 11:44 AM | 1 Like Like |Link to Comment
  • Video Music Awards shed half-million viewers from last year [View news story]
    At this point Miley Cyrus is so aggressively slutty that she went right past sexy and is somewhere in the neighborhood of scary and horrifying.

    It is just another sign of the times, and the complete artistic failure of our producers of mass culture. They confuse going to extremes with talent. They turn it up to eleven and then they congratulate themselves for their courage and creativity.

    On the bright side .... TV is dying.
    Aug 31, 2015. 07:23 PM | 12 Likes Like |Link to Comment
  • Steady progress at DSW while shares snooze [View news story]
    DSW is a good bet on the trend that millennials seem to be buying more shoes in stores but not clothes. When you think about it, shoes are one of the few things that are not that affected from the move to online shopping, because most people still want to try shoes on in a store.

    If you look at the combination of valuation and growth, DSW is a better deal than NKE (very highly valued) and foot locker. Finish line is valued a little lower than DSW but they do have an issue with decreasing gross margins. DSW gross margins are steadily increasing.
    Aug 28, 2015. 01:42 PM | Likes Like |Link to Comment
  • Siliconware Precision to sell 21% stake to Hon Hai, fending off ASE [View news story]
    ASE's offer is to SPIL shareholders, so it might still happen, even if SPIL's management is against it. Fosconn's offer is for Foxconn shares, not cash so it is not that certain SPIL shareholders would prefer it. It seems not because SPIL shares are taking a dive after the Foxconn offer was announced.

    Of course it is possible that both offers are executed.

    Foxconn cannot help SPIL lure Apple away from ASE. Apple is with ASE because ASE is the only firm that does system in package (SiP). This is a very difficult type of packaging and neither SPIL nor any of the other packagers can do it.
    Aug 28, 2015. 01:16 PM | Likes Like |Link to Comment
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