Monday, September 28, 2009
RIM Call Volume Rising; Falling Knife?
When last we left the Waterloo, Ontario-based maker of BlackBerries, Research in Motion’s shares were falling like a rock. Or, perhaps, like a kitchen knife.
When last we left the Waterloo, Ontario-based maker of BlackBerries, Research in Motion’s shares were falling like a rock. Or, perhaps, like a kitchen knife.
So, I’ve been writing a lot the last few days about the stunning run-up in shares of Vonage.
But it isn’t just Vonage. A whole bunch of micro-cap telecom stocks are on a tear for reasons that so far are not entirely clear to me.
As Silicon Valley’s stock-driven wealth machine sputters in the recession, technology start-ups are exploring new ways for employees to tap their holdings.
Google Inc.’s acquisition of video compression software maker On2 Technologies Inc. has been challenged in court by On2 shareholders who claim the deal’s $106.5 million price tag is “unfair.”
Microsoft shares haven’t touched the $30 level in more than a year. But the stock has been rallying impressively since bottoming in the $15 range in March–can it complete the double? Some analysts think so. In fact, two of them this morning upped their targets on the stock to exactly $30.
Amazon.com is absolutely on fire. The company posted Q1 results that blew away estimates, with EPS of 41 cents a dime ahead of the Street, as both gross margins and operating margin expanded in the face of the worst economic downturn since the Great Depression.
Come Wednesday, it will be Apple’s turn to discuss its results for the first three months of 2009.
Dell isn’t dead yet. And in fact, Craig-Hallum analyst Christian Schwab this morning goes so far as to suggest the stock offers investors a potential double. Asserting in a research note this morning that the company can still “get its groove back,” Schwab this morning launched coverage of the stock with a Buy rating and a $19 price target.
A provocative story from Reuters Monday ruminated on which companies are likely to replace Citigroup and General Motors in the Dow Jones Industrial Average. Its conclusion: Google and Cisco are the most likely contenders, with Apple and Visa having a less likely chance.
Goldman Sachs analyst David Bailey cut his target price for Sun Microsystems from $5 to $3, putting the company’s stock under some pressure this morning. His reason? Sun’s services are heavily concentrated in telecom and financial services, putting it at a disadvantage compared to its more diversified competitors, weakening its position during the economic downturn.
Dell hit a new 52-week low today, $8.72, before closing down 51 cents, or five percent, at $9.30, after last night reporting sales that missed estimates by a billion dollars and calling the global IT demand outlook “challenging.” The stock was downgraded from “Outperform” to “Market Perform” today by Friedman Billings.
But, is there cause for hope?
For Sun Microsystems, it has come down to this: The stock is now trading for the net value of the cash and investments on its balance sheet.
Ergo, you in theory could buy Sun today, pay off holders and the debt with the existing cash, and get the entire company for nothing.
Pacific Crest analyst Andy Hargreaves released a note this morning with a bunch of data points showing the rising importance of Apple’s (AAPL) iPhone in Internet usage. And he implies that the current value of the shares could be closer to $184 than the current $176.15 at which the stock trades.
Insiders at Facebook are selling stock in the social networking company, and the prices they’re getting for their shares suggest the sky-high valuation backers once placed on the company may prove unrealistic. Just a few months ago, Facebook was widely viewed as the next Google in Silicon Valley. Microsoft bought a small equity stake last [...]
I spend a lot of time visiting with companies and figuring out what ideas they represent and what lessons we can learn from them. I usually leave these visits underwhelmed. There are plenty of companies with a hot product, a hip style, or a fast-rising stock price that are, essentially, one-trick ponies–they deliver great short-term results, but they don’t stand for anything big or important for the long-term. Every so often, though, I spend time with a company that is so original in its strategy, so determined in its execution, and so transparent in its thinking, that it makes my head spin. Zappos is one of those companies.
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