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lanettedonovan1

lanettedonovan1
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  • Seagate buys back $1.51B worth of shares from Samsung [View news story]
    I suppose this slows buy back and dividiends for the rest of investors
    Oct 8 12:26 PM | Likes Like |Link to Comment
  • Intel: Responding To The Linley Group's Analysis [View article]
    Good comments. I am no engineer but have followed technology for 20 years. I do believe this is an inflection point in the Intel model that is not good. The question is does the stock price reflect this and more.

    Intel has had a monopoly basically in the pc market for decades and relied on unit growth to average 10% per year. This is not the case anymore. Intel has tried to enter the mobile market before and then gave up. The Intel culture did not support it and margins were low compared to x86 mp. I remember the serial disappointments in mobile. Now at least there is an all out panic that the core business is threatened.

    I do agree intel will have a decent offering but it will never have the market dominance it had in PC processors. Device makers will not allow a repeat of the WINTEL monopoly that sucked 90% of the profits from the business.
    May 26 12:30 PM | Likes Like |Link to Comment
  • Intel: Something Big Is Coming On May 6 [View article]
    Thank you for your insight. Your research is interesting.

    I have no doubt that Intel can produce a low power competitive chip to QCOM quadcore and Mediatec and Spreadtrum. However, for the business model and the stock price the real issue is pricing and margins. In the first qtr of this year we saw Mediatec enter with a quadcore SOC for low end smart phones. QCOM saw its margins in QCT hit as a result of this I believe. The smart phone SOC is heating up now with three viable competitors that sell these chips at an ASP of less then $28. QCOM margins in the QCT dropped to 17%. How can Intel compete in this market without having a meaningful impact to its gross margins? Intel is used to selling chips at an ASP of about $120.

    I think Mediatec as always is the spoiler and the competiton ultimately.
    May 2 12:14 PM | 1 Like Like |Link to Comment
  • Intel Just Made A Huge Decision [View article]
    GOOD ARTICLE!!
    Intel will no doubt bring a competitive chip for tablets and smartphones to market but they will never have the "monopoly" position they have in PC processors again. Intel's very high gross margins 60%+ have been a part of virtuous cycle of commanding high prices on MP so they can invest a great amount of money to lead in process technology - to get low cost scale- and then produce more high price chips. Can capex spending and hence Intel's long term competitive advantage keep up in the new world?

    The business model is in transition and that is a dangerous time to invest.
    Apr 16 08:09 AM | Likes Like |Link to Comment
  • An upbeat note from Brean Capital's Ananda Baruah is leading Seagate (STX +3%) and Western Digital (WDC +2.9%) to rally. In spite of weak PC sales, Baruah expects industry hard drive shipments to total 130M-135M in calendar Q1, down just slightly from Q4's 136M and in-line with guidance. Moreover, he sees the potential for 5%-10% 2H shipment growth, and ASPs and margins are seen benefiting from a mixture of better capacity utilization, stronger retail revenue, rising hybrid drive shipments, and a mix shift to enterprise and 500GB single-platter notebook drives. LSI +1.4%. MRVL +0.8%[View news story]
    Interesting how there is such a debate about the HDD stocks. The bull argument I believe goes like this: There is only two (three with Toshiba) HDD vendors now and they know the market is in decline so they will not add capacity or be a price spoiler - driving down ASPs and ruining profits. The demand for HDDs will shift from notebooks to high capacity 10,000 RPM drives that will sit in cloud. Capacity growth will ultimately help overcome unit growth declines. Cash flow will remain strong because gross margins will not collapse (new 27-31% range) and companies will reward share holders with share buy back and nice dividends. I personally do not believe STX and WDC will keep pricing non competitive in the 10,000 RPM space and ultimately with unit declines the gross margins will fall to 22% range where the mean has been over the past decade. Stock prices will follow down gross margins.
    Mar 26 06:55 PM | Likes Like |Link to Comment
  • eBay (EBAY) is reportedly providing a big vote of confidence for the OpenStack cloud infrastructure platform: an OpenStack Foundation board member tells BI PayPal and eBay plan to remove VMware's (VMW -2%) software from 80K servers in favor of OpenStack-based solutions. The fact OpenStack can lower license fees thanks to its use of open-source software could be a motivating factor. VMware has been aggressively promoting its vCloud Suite as an alternative to OpenStack, Amazon Web Services, and Microsoft's Azure. [View news story]
    No doubt that eBay and others will use Open Stack as it is low cost open source. However, RAX gets no fees or sales from such adoption. RAX benefits only if an Ebay uses RAX for its services which it does not have to in order to benefit from Open Stack.
    Mar 25 01:06 PM | 2 Likes Like |Link to Comment
  • New Flash Entrants Validate QLogic Game Plan [View article]
    Also product cycle with 16GB fiber channel bodes well for near term
    Mar 15 10:23 AM | Likes Like |Link to Comment
  • New Flash Entrants Validate QLogic Game Plan [View article]
    Great thanks. How big is the market opportunity for Mt Rainer do you think. Target is clustered servers needing high performance IO.

    I undertand that QLGC is pushing trials at user customers to have them pull through demand from OEMs. OEMS have not signed on yet?
    Mar 15 10:13 AM | Likes Like |Link to Comment
  • Best Buy (BBY) turned down a $1B minority investment proposal from three P-E firms, according to Reuters. The deal would have placed Leonard Green Partners, Cerberus Capital Management, and TPG Capital in the boardroom. BBY +5.1% premarket following earnings[View news story]
    Ok take us through your numbers on this please
    Mar 4 03:25 PM | Likes Like |Link to Comment
  • Best Buy (BBY) turned down a $1B minority investment proposal from three P-E firms, according to Reuters. The deal would have placed Leonard Green Partners, Cerberus Capital Management, and TPG Capital in the boardroom. BBY +5.1% premarket following earnings[View news story]
    I sense you think asset sales -like real estate- is bad - not at all. I raises cash and rationalizes the business. They will divest of real estate which includes long term lease agreements. They wrote down goodwill by 800 million ( recorded as an asset on the BS).

    As what they mean by diluting shareholders: The PE firms would be issued new shares of stock. Currently there are 338 million share outstanding. So here is example: If the expectation is to earn $ 2.00 a share in FY2014 that = $ 676 in net income ( 2x 338). If they issued $1 billion in stock at $17. per share = 59 million new share) this assumes that it would be straight common not preferred with a dividend seniority ( unlikely). So after issue, shares outstanding would be 397 ml. So claim of current shareholders on EPS would go to $1.70 ("diluting earnings"). With the same PE of 8x then stock price would adjust to $13.60. THIS IS WHAT IT MEANS TO DILUTE SHAREHOLDERS.
    Mar 2 09:14 AM | Likes Like |Link to Comment
  • Best Buy (BBY) turned down a $1B minority investment proposal from three P-E firms, according to Reuters. The deal would have placed Leonard Green Partners, Cerberus Capital Management, and TPG Capital in the boardroom. BBY +5.1% premarket following earnings[View news story]
    As CEO said on call " turned down investment from PE firms because would be dilutive to current shareholders" this means they valued the stock a discount to where it is now. PE had all the inside data.....
    Mar 1 09:32 AM | Likes Like |Link to Comment
  • Best Buy (BBY -3.2%) -1.3% AH, adding to the day's losses, after 5 sources tell Reuters Richard Schulze's buyout attempt is in jeopardy thanks to financing issues. Schulze is now said to be focused on a minority investment, one that could a PIPE transaction, but investors are said to remain hesitant. Talks with P-E firms Leonard Green, Cerberus, and TPG have reportedly made little progress. Schulze is facing a Thursday deadline to deliver a buyout proposal. (Feb. 13 WSJ report) Update: Best Buy has pushed back its FQ4 report by a day to March 1 to if Schulze makes a bid. [View news story]
    hi, ML610

    Need to sell assets is to raise cash and show lenders they can pay debt. BBY can divest international operations and HQ bldg for example. SEC FILINGS can be found on the BBY company website in the Investors relations section.
    Feb 28 07:56 AM | Likes Like |Link to Comment
  • Best Buy (BBY -3.2%) -1.3% AH, adding to the day's losses, after 5 sources tell Reuters Richard Schulze's buyout attempt is in jeopardy thanks to financing issues. Schulze is now said to be focused on a minority investment, one that could a PIPE transaction, but investors are said to remain hesitant. Talks with P-E firms Leonard Green, Cerberus, and TPG have reportedly made little progress. Schulze is facing a Thursday deadline to deliver a buyout proposal. (Feb. 13 WSJ report) Update: Best Buy has pushed back its FQ4 report by a day to March 1 to if Schulze makes a bid. [View news story]
    Read the SEC filings 10K and 10Qs
    Feb 27 08:06 AM | Likes Like |Link to Comment
  • Best Buy (BBY -3.2%) -1.3% AH, adding to the day's losses, after 5 sources tell Reuters Richard Schulze's buyout attempt is in jeopardy thanks to financing issues. Schulze is now said to be focused on a minority investment, one that could a PIPE transaction, but investors are said to remain hesitant. Talks with P-E firms Leonard Green, Cerberus, and TPG have reportedly made little progress. Schulze is facing a Thursday deadline to deliver a buyout proposal. (Feb. 13 WSJ report) Update: Best Buy has pushed back its FQ4 report by a day to March 1 to if Schulze makes a bid. [View news story]
    Please let us just get on with it. The idea that Management and the Board is giving Schultz a deadline to buy the company is nonsense. What they mean is a deadline to try to get a cash infusion before they have to liquidate assets and fire employees like crazy and Schultz's 20% interest in company goes from $1.5 billion to zero. There are no other bidders.
    Feb 26 05:24 PM | Likes Like |Link to Comment
  • New Flash Entrants Validate QLogic Game Plan [View article]
    Dear Frank,

    You sound like you understand Mt Rainer. So a question I hope you can answer on HBAs. Does not virtual IO ( Xsigo) and shared SSD tech reduce the unit need for HBAs - less connections per server and storage devices?
    Feb 25 10:31 AM | Likes Like |Link to Comment
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31 Comments
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