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SapientInvestor

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  • Who Is On Your Side In Ally Financial? [View article]
    No. They are in the process of buying back their preferred shares. After that my guess is they may pay down some debt.
    Jun 28, 2015. 09:55 AM | Likes Like |Link to Comment
  • AMD Update: What's New, And What Is Not [View article]
    Raw performance is not enough.

    AMD has a reputation of worse driver support among many gamers.

    Nvidia does not help their predicament by getting more involved in the development process and adding bells and whistles such as gameworks.

    I think this a very difficult image to overcome and the main reason why I think that nvidia has such a dominant market share and people using nvidia will stay loyal. People will want to buy the PC that will have the least amount of issues.
    Jun 20, 2015. 04:03 PM | 1 Like Like |Link to Comment
  • Tesla CFO Ahuja retiring; Model X deliveries in 3-4 months [View news story]
    There is no comparison. All those companies were making tons of money and had huge, enduring margins. (aside from the rough patch that apple had when Jobs left the company)
    Jun 10, 2015. 07:43 AM | 5 Likes Like |Link to Comment
  • What Can EverBank Teach Us About Bank Of Internet? [View article]
    Why would you do a straight comparison of EPS (alone) in one paragraph and then much further down in the article a straight comparison of share price (alone). Is there any meaning to the reader in either of those without context?

    Not to be overly critical but I do not see how Apple Pay and Google Wallet are in the same business. Do either pay you an interest on deposits or even accept deposits? Can I withdraw cash out of an ATM with either without a fee? Are either originating loans of any sort?

    I would say the crux of the comparison between EVER and BOFI boils down to efficiency ratio, which can serve as an engine of growth if its much lower than the competition. It seems like the two are in a different realm in this regard (despite both being "online banks") and it would be more interesting and constructive for an article to try to explain why. I dont have the answer. Maybe Everbank is not completely branchless, maybe its culture or mgmt differences. Maybe its something else. I don't know enough about Everbank.
    Jun 1, 2015. 10:15 PM | 2 Likes Like |Link to Comment
  • Salesforce.com: Latest Earnings Strong But Questions About Long-Term Profitability Remain [View article]
    Lets say MSFT issues $50 billion in bonds to finance the hypothetical deal at investment grade pricing. That would equate to about $1.825 billion in annual interest payments. Add the approximate $262 million in annual losses for CRM and you are looking at about $2.1 billion in reduced earnings at MSFT. Obviously an over simplification but you get the picture. There would be synergies but there would also be dissynergies and integration costs that people always forget.
    May 24, 2015. 10:25 PM | 1 Like Like |Link to Comment
  • Salesforce.com: Latest Earnings Strong But Questions About Long-Term Profitability Remain [View article]
    All your points rest on the assumption that the story is even true. Have you even stopped to think that it may not be? When the rumor first came out, it was Oracle, then it was SAP, which even denied ever having talks. Now comes MSFT version, after several at MSFT have denied it. Besides the shadiness of the story chain, on a practical level it makes very little sense even at $55 billion.

    Where is MSFT going to come up with the cash, its all overseas and would have to be taxed. That kind of bond issue would likely affect its credit rating so maybe it would be significant dilution? Shareholders would be up in arms. The story talks about Benioff transferring his ownership to MSFT. Would Satya really want another ex CEO ego maniac at MSFT with more voting shares than him? Who knows but in any case there seems to be a lot of unusually difficult pills to swallow in order to believe this deal.
    May 24, 2015. 09:51 PM | 3 Likes Like |Link to Comment
  • Salesforce rumors/reports keep coming [View news story]
    The title of this news should be: "The rumors of Salesforce.com acquisition continue to be discredited."

    SEC should investigate the origins of this story as there seems to be no substance behind it other than the potential motive to illegally manipulate billions in market cap. This is especially blatant because the rumor reports from Bloomberg were very specific with regards to mentioning SAP and MSFT.

    Ok, So the high ups at Oracle, SAP, and MSFT have all basically said they are not interested and refuting other various allegations such as previous talks.

    Only one left is IBM.

    Does anyone really think that Warren Buffett would allow a sale to go through? IBMs CEO was just at the Berkshire Hathaway annual meeting in Omaha showing respect to its single largest shareholder. IBM has shown a strong sensitivity to EPS and used buybacks to support it. Is buying CRM consistent with this? NO.
    May 8, 2015. 08:00 AM | 6 Likes Like |Link to Comment
  • Bloomberg: Salesforce, SAP discussed alliance, acquisition last year [View news story]
    So much for Bloomberg's credibility. Didn't take long to debunk this hype.
    May 4, 2015. 08:37 PM | Likes Like |Link to Comment
  • First Internet Bancorp beats by $0.14, beats on revenue [View news story]
    Needs to break a $100M market cap. Too small for many institutions to own or pay specific attention too. I think it will happen soon.

    Apr 23, 2015. 11:44 PM | Likes Like |Link to Comment
  • NOW Inc.: Strong Position To Take Advantage Of Weak Energy Markets [View article]
    I agree this is probably an attractive entry point. I currently own shares. Its not without risks if the price of oil stays low or lower for a VERY long period however, which I don't expect.

    The other key is if they are able to execute significant acquisitions, which one would think that they would considering their stated objectives and track record.

    If the price of oil stays low long enough to inflict serious pain on levered and/or smaller competitors for DNOW to buy them very cheap and the oil price recovers thereafter, DNOW will make a killing. For that reason, it may take years for the investment to play out as a good one, which I have no problem with.
    Mar 3, 2015. 09:34 AM | 2 Likes Like |Link to Comment
  • Update: Take-Two - Impressive 'GTA V' Sales To Spark Massive Q3 Upside [View article]
    I agree shares still have immediate upside and there will be a massive beat as sales of GTA on current gen eventually reach close to 10 million. PC, currency, and add ons will be wild cards but I believe market has underestimated these as well as the pipeline of games in development. Evolve may be a cult seller with less than stellar initial sales but a bit more staying power than average.

    Shorts have it wrong and have not capitulated yet. I'm curious why the author would not want to own any shares, given such a positive outlook, or if the disclosure was incorrect.
    Jan 19, 2015. 08:42 AM | Likes Like |Link to Comment
  • Buy Take-Two Interactive Now [View article]
    The company is no longer reliant on just GTA...I am not so sure why so many people do not see that. It is not the same company it was 5 years ago because of New IP and acquired IP. 2015 is not going to be a weak year.

    Evolve
    GTA (PC and DLC/Currency)
    Battleborn
    NBA 2K16

    This version of GTA is also proving to have a much higher demand and shelf life than previous versions due to the quality and online component.

    They have been working on Red Dead Redemption for some time and have stated that they will announce in 2015. I expect a 2016 release at the latest.

    They have a lot more resources now and have been staffing up, and opening up new studios so I expect titles to come out more frequently. Now that they have a superb working game engine, they just have to refine and put out content.

    Take two has built of an extraordinary amount of goodwill and respect with gamers in comparison to other studios, something that take many years to do. This is extremely valuable when you are in the process of creating New IP, making sure the game gets the free marketing attention necessary and willingness of people to buy something new.

    The market cap of $2.29 billion is nothing when you compare the the rest of the industry. Microsoft purchased Mojang for $2.5 Billion! King digital is currently $5 Billion. Activision is $14 Billion. What happens to their income if you remove World of Warcraft and COD from their roster?
    Dec 18, 2014. 09:21 AM | 2 Likes Like |Link to Comment
  • First Internet Bancorp: Turnaround Banking Story Taking Shape [View article]
    Once the company crosses the $100 million market cap it should attract a little more attention and volume. I am torn about removing the dividend. Market may react that it is a sign of weakness even though it would make more sense to not have one. Probably would be better spent even buying back shares at these levels given the discount to book and that they recently raised equity at a higher price. Dividend does not make much sense if proper governance is in place and it is growing its deposits and therefore needing equity.

    Given the discount to book, I would think another larger branchless bank would want to buy them. Its going to be a race for scale in this type of business model.
    Dec 11, 2014. 04:07 PM | 1 Like Like |Link to Comment
  • Take-Two To Beat And Raise Again In Q3 [View article]
    I think your GTA 5 sales estimates may be on the conservative end. I expect the userbase of current gen consoles to be more active considering they all recently purchased. GTA 5 does not have strong competition considering mediocre reviews of supposedly must have titles such as Assassins Creed. Yes this is a re release but virtually all reviews recommended purchasing the game regardless if you owned it before. One thing holding it back is pricing as other titles are going through significant discounting. I would not be surprised to see closer to 10 million GTA 5 sold.

    Activision said it was surprised by the number of people who purchased Destiny for download. I expect a similar or greater surprise for GTA 5 as it was also available for predownload and offered incentives of in game cash for pre purchase. I assume incentives were available at gamestop but I am unsure and I think others may have had the same reaction and opted to simply purchase online. This should be healthy for margins going forward.
    Dec 2, 2014. 11:43 AM | Likes Like |Link to Comment
  • GameStop: How Long Can It Defy The Odds? [View article]
    Look at the current sales going on for XBOX one games for download and you start to see where this is going for games that have been released for 2 months or more. You start to see that GMEs used game inventory is having less and less value, especially when the pricing gets to impulse level. This has been going on in the PC space with "STEAM Sales" for some time but only just now beginning to hit consoles. How many PC games does GME sell? Not many.

    People have been talking about cloud gaming for a while but only now with NVIDIA GRID do we see that it can work well and in commercial form. Expect a Netflix like subscription service to decimate GMEs used game business in the coming years.

    The latest quarter was blamed on game delays...so why the weak guidance going forward then? Consoles are selling like crazy with aggressive pricing...whats the problem?

    I am short GME
    Nov 30, 2014. 11:51 AM | 3 Likes Like |Link to Comment
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