NetSuite (N) announces a $270M offering of convertible senior notes due 2018. The cloud ERP/HR software vendor says it will use the proceeds for "working capital and other general corporate purposes," including possible acquisitions, as well as to buy back $30M worth of shares. Given NetSuite is cash flow positive, had $190.6M in cash and no debt on its balance sheet as of March 30, and has been quite willing to use acquisitions to expand its product line (I, II), there's a good chance some of the funds will be directed towards M&A. (PR) [View news story]
I seriously doubt they'll buy back 1 share at this valuation. That's smoke and mirrors there. They want to buy other companies to keep up their top line growth rate and ridiculous valuation. Watch goodwill rise like crazy over next few acquisitions.
Salesforce After The Earnings: The Good, The Bad And The Ugly [View article]
Are you aware that nearly 100% of their "cash flow from operations" is not from the normal 'order to cash' waterfall from sales, but instead it's all derived from their stock options?
If the stock dropped significantly, their cash flow growth would nearly halt. It's much more ugly than you write but you did a good job of showing that it's a bad stock investment for long term or short term investors.
Workday: Resist The Urge To Short This Stock [View article]
Great advice, there are no 'cloud' fundamentals yet. It's the new dot.com craze. I've been burned a few times too and now just sell puts against my shorts for nice yield while I wait. Not shorting this one though, it has all the makings of CRM with Cramer even calling it "Son of Salesforce"
Question: Like CRM, does WDAY generate most of its cash via stock option redemptions? That is not cash generated from operations but it can grow wildly as shown by Benioff. And the sheep just hear "cash flow growth" and then they buy, buy, buy.
You can replace "Cloud Technology" with "The Internet" in paragraph 2 and we would be mimicing conversations from 1999 verbatum. All conditions are the same. History is repeating itself.
I like EOG and LULU and have made some nice money there as well. I don't know why you picture me sitting in a room with pictures of CRM on the wall and me throwing darts and knives at it. I'm not saying it won't keep going up. I'm saying I'm 100% positive it will implode when the mutual funds start pulling out and you will lose a lot of money if you are greedy here.
Salesforce.com's First Quarter Earnings Preview [View article]
did he just say that last sentence? hope you're kidding ToJo
but I agree they'll have a manufactured beat on revenue, non-GAAP & cash flows and no one on the call will mention that their sales and marketing line is clearly growing faster than revenue. nor will they mention that most of their cash flow is derived from stock option excercises. oh i could name several other things that scream "this stock is a scam" but why waste my time?...it'll implode when it implodes. and it will implode.
also Zorro, we were under 30 and have been flame broiled by these types of stocks. now we all just wait for the implosion to make back all the money we lost in 2000.
and you won't feel so young once you see what happens. losing a lot of money while the CEO remains a bizillionaire ages you.
Experience is learning from your own mistakes, Wisdom is learning from others' mistakes.
Senate Slams Apple On Tax Avoidance [View article]
If Tim went in there and told them we'd all be a lot better off with term limits for Congress he'd get a standing ovation from America and probably a new loyalty to their products.
What an absolute dumpster fire this system has become. They allow lobbyists (read: corporations) to write their laws and then they complain when they are followed.
Apple (AAPL) releases Tim Cook's official statement (.pdf) to the Senate ahead of his Tuesday appearance at a hearing on corporate tax payments. Among other things, Apple claims it paid ~$6B in federal taxes in FY12 and a 30.5% effective federal tax rate, and that its foreign units don't engage in the practices the hearing focuses on (the shifting of IP to offshore havens, revolving loans from subsidiaries, etc). The company proposes a tax system that's "revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings." (previous) [View news story]
HAHAHAHA!! Good Luck Tim! I'm sure your logical, reasonable argument will help change the law.
Oh wait, we live in a country where Congress has evolved to only be driven by 4 things:
1) Being re-elected as many times as possible 2) Catering to the people/corporations who finance their campaigns 3) Working well with their lobbyist buddies with whom they used to work so they too can land cushy jobs on K Street 4) Oppose anything the other party suggests, no matter how it benefits the citizens of the United States
What Will $2 Million Get You In Retirement? [View article]
luckily your mother Dorothy (who is a Saint) will take care of you should your continued mediocrity as a newscaster not allow for a comfortable retirement.
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
GOOG is great @Sermer but I'd sell calls against your position and maybe even buy a few protective puts because a) revenue actually shrunk last quarter for the first time in their history (nothing wrong, just maturing) and b) this big money that left AAPL and went into GOOG looks like it's having the exact same trajectory of stock price run. And we know what happened to AAPL on their next 'less than awesome' quarter. I got very very burned holding all of my AAPL shares and was blind to the idea that it could crash so hard given their balance sheet and profitability. Please learn from my mistake.
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
Of course it does, when all the lemmings left AAPL they put their money into GOOG. It was very obvious. The spread on forward P/E ratios is really gowing between the 2 companies. If Wall Street ever rewarded AAPL with the same P/E as GOOG it would've hit $1000 first.
What Will $2 Million Get You In Retirement? [View article]
Scary how little income you can actually pull if you're destined to live to 95. Fortunately, no one in my family has come close so I'm going to kick it up a notch and plan on an exit well before then.
And I personally think that with dividend titans like the ones you've listed plus some emerging ones (AAPL, INTC, V) that they are so safe that there's never a reason to own a Treasury bond. Muni's maybe, but not US Federal Gov't treasuries, especially at today's yields.
NetSuite (N) announces a $270M offering of convertible senior notes due 2018. The cloud ERP/HR software vendor says it will use the proceeds for "working capital and other general corporate purposes," including possible acquisitions, as well as to buy back $30M worth of shares. Given NetSuite is cash flow positive, had $190.6M in cash and no debt on its balance sheet as of March 30, and has been quite willing to use acquisitions to expand its product line (I, II), there's a good chance some of the funds will be directed towards M&A. (PR) [View news story]
Salesforce After The Earnings: The Good, The Bad And The Ugly [View article]
If the stock dropped significantly, their cash flow growth would nearly halt. It's much more ugly than you write but you did a good job of showing that it's a bad stock investment for long term or short term investors.
Workday: Resist The Urge To Short This Stock [View article]
Question: Like CRM, does WDAY generate most of its cash via stock option redemptions? That is not cash generated from operations but it can grow wildly as shown by Benioff. And the sheep just hear "cash flow growth" and then they buy, buy, buy.
Salesforce Pre-Earnings: Robust Revenue Growth Squeezed By Climbing Costs [View article]
I like EOG and LULU and have made some nice money there as well. I don't know why you picture me sitting in a room with pictures of CRM on the wall and me throwing darts and knives at it. I'm not saying it won't keep going up. I'm saying I'm 100% positive it will implode when the mutual funds start pulling out and you will lose a lot of money if you are greedy here.
That is what I'm saying.
Salesforce.com's First Quarter Earnings Preview [View article]
but I agree they'll have a manufactured beat on revenue, non-GAAP & cash flows and no one on the call will mention that their sales and marketing line is clearly growing faster than revenue. nor will they mention that most of their cash flow is derived from stock option excercises. oh i could name several other things that scream "this stock is a scam" but why waste my time?...it'll implode when it implodes. and it will implode.
Salesforce Pre-Earnings: Robust Revenue Growth Squeezed By Climbing Costs [View article]
and you won't feel so young once you see what happens. losing a lot of money while the CEO remains a bizillionaire ages you.
Experience is learning from your own mistakes, Wisdom is learning from others' mistakes.
Senate Slams Apple On Tax Avoidance [View article]
What an absolute dumpster fire this system has become. They allow lobbyists (read: corporations) to write their laws and then they complain when they are followed.
#TermLimits!!
Apple (AAPL) releases Tim Cook's official statement (.pdf) to the Senate ahead of his Tuesday appearance at a hearing on corporate tax payments. Among other things, Apple claims it paid ~$6B in federal taxes in FY12 and a 30.5% effective federal tax rate, and that its foreign units don't engage in the practices the hearing focuses on (the shifting of IP to offshore havens, revolving loans from subsidiaries, etc). The company proposes a tax system that's "revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings." (previous) [View news story]
Oh wait, we live in a country where Congress has evolved to only be driven by 4 things:
1) Being re-elected as many times as possible
2) Catering to the people/corporations who finance their campaigns
3) Working well with their lobbyist buddies with whom they used to work so they too can land cushy jobs on K Street
4) Oppose anything the other party suggests, no matter how it benefits the citizens of the United States
The 'Smart Money' Hedge Funds Don't Look So Smart Anymore [View article]
I am very much enjoying the SAC debacle as he had been torturing our company to break up. (SAC is one of the larger shareholders)
Haven't heard much from him lately, must be busy.
What Will $2 Million Get You In Retirement? [View article]
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
What Will $2 Million Get You In Retirement? [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
What Will $2 Million Get You In Retirement? [View article]
And I personally think that with dividend titans like the ones you've listed plus some emerging ones (AAPL, INTC, V) that they are so safe that there's never a reason to own a Treasury bond. Muni's maybe, but not US Federal Gov't treasuries, especially at today's yields.