tag:blogger.com,1999:blog-90132252012-01-18T03:44:12.821-08:00Purpose of this blog is to bring a different prespective to the daily hustle of the market. Making money while doing it would also be a good thing. I welcome comments, and to exchange ideas privately contact me at: midascapital@gmail.comSlashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.comBlogger1101100tag:blogger.com,1999:blog-9013225.post-41385225563336241172007-10-28T21:30:00.000-07:002007-10-28T21:39:28.260-07:00

Thanks for the continued support. Please check http://www.inventing-money.com for fresh commentary going forward.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com28tag:blogger.com,1999:blog-9013225.post-47739125490613516392007-10-03T21:55:00.001-07:002007-10-03T22:14:04.325-07:00

ISLN which like BBND is a recent IPO in the data storage arena pre announced and it was not pretty. Here is the press release: Isilon® Systems the leader (don't you love that- "leader") in clustered storage, today announced preliminary results for the third quarter of 2007 ended September 30, 2007. Based on preliminary estimates, total revenue is expected to be in the range of $23.2 million to

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com13tag:blogger.com,1999:blog-9013225.post-73760634998982599242007-09-27T21:45:00.000-07:002007-09-27T22:02:34.918-07:00

WOW! Was all I could say once the headlines scrolled across the newswire. This was a monumental miss, or a Big Bang kinda miss by BigBand Networks (BBND). It does not get uglier then this. BBND expects revenues to be in the range of $35-$39m vs. expectations of $56m. Company gave a list of excuses for the miss (obviously you can enjoy reading the list in the release). The lessons to learn

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com4tag:blogger.com,1999:blog-9013225.post-74681706283508507402007-09-25T21:49:00.000-07:002007-09-25T22:10:43.557-07:00

After a VERY long hiatus- we are back at making this site useful for investors of all levels. We welcome your feedback and would appreciate if you spend time with us again. Thanks for the continued support. Check you www.inventing-money.com for fresh commentary

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-43681996483989440312007-09-25T21:21:00.001-07:002007-09-25T21:42:16.343-07:00

ADTN officially announced on Friday at 5pm (pacific time that is!- yea I was in the office) that it will fall short of expectations for the September quarter. Nothing wrong with pre-annoucing 4 hours the market closed on a Friday I suppose. Company blamed their legacy business for the shortfall and basically blamed absence of spending typical for Q3 for the shortfall. ADTN is notorious for having

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com4tag:blogger.com,1999:blog-9013225.post-1146113834557081222006-04-26T21:38:00.000-07:002006-04-26T21:57:14.580-07:00

NETL reported revs and EPS ahead of expectations and guidance was better than expected also. What was a big positive for me was the ability of NETL of to deliver a solid 10% revenue growth without any growth driven from its largest customer- CSCO. There has been plenty of naysayers out there blabbering about how a majority of NETL revenues are dervied from CSCO and how that is a bad thing. I

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com34tag:blogger.com,1999:blog-9013225.post-1144465294455650512006-04-07T19:29:00.000-07:002006-04-07T20:01:34.480-07:00

Mike Zafirovski had a coming out party at CTIA-sort of. The CEO of NT made a rare public appreance at the CTIA conference making some bold statements. Mike wants NT employees to be "boy scouts" who would do the right things. I guess the Finance department is going to be outsourced going forward, since they have not been able to do the right thing for a while now.Mike wants NT to exit every

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1144386267531466802006-04-06T21:56:00.000-07:002006-04-06T22:14:53.353-07:00

EXTR pre-announced a miss today after the close. Company blamed weakness in U.S and Japan for the miss. Like I said few days back, I would stay away from EXTR. The company has been in internal ups and downs and from what I can gather it is not smooth sailing yet. I believe the weakness in U.S. and Japan was due to these internal issues not due to any broad market weakness. FDRY I believe is

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1144014423682186122006-04-02T14:34:00.000-07:002006-04-02T14:50:13.463-07:00

RDWR lowered guidance on Sunday April 2nd but the stock was already down almost 13% on Friday March 31st. Call me naive, but you think maybe someone knew? The money call from one of Wall St. Finest Stanley Kovler was made on Friday; he published that he expects company to miss due to sales team transition in U.S, exactly the same reason given by RDWR in its press release. Was Stanley typing the

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1142402782568481982006-03-14T21:55:00.000-08:002006-03-14T22:06:22.620-08:00

I haven' t posted in a while since I have not found anything worthwhile to discuss. There was the OFC last week, which got Cramer's blood pumping and so did all the optics stocks. Even the ones that have nothing to do with enterprise strength seen by FNSR. What does AVNX has that is similar to FNSR product portfolio is beyond me and I have been covering optics before optics were hot (literally).

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1139982861098035102006-02-14T21:40:00.000-08:002006-02-14T21:54:21.130-08:00

QCOM most probably just won the CDMA chipset game as NOK and Sanyo announced to merge their respective CDMA handsets businesses into a joint-venture. NOK/Sanyo JV would hold the #2 position in CDMA handsets after LG, putting Samsung in #3 position. This could be the last nail in coffin for the non-QCOM CDMA chipset consortium. NOK will most probably end up utilizing QCOM part as is the case

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1139897706080565082006-02-13T21:57:00.000-08:002006-02-13T22:15:06.173-08:00

On February 8th the Board of Directors of EXTR approved an Executive Change in Control Severance Plan. The filing with the SEC was made yesterday right after the close of market. What this severance plan entails is a nice pay out for the executives and certain VPs upon change in control of EXTR. The board does not plan to do anything specific for the ordinary shareholders except for "maximizing

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1139293401633217752006-02-06T21:49:00.000-08:002006-02-06T22:27:28.500-08:00

BCSI pre-announced negatively this morning and the market cap took a 39% haircut; given that BCSI is one of the high-flying high expectations/high multiple stock. Company provided absolutely no details regarding the miss (that never helps in negative pre-announcements)The really interesting educational lesson coming out of this pre-announcement was the importance of leverage. BCSI had

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1138343537888052812006-01-26T21:43:00.000-08:002006-01-26T22:42:11.630-08:00

JNPR, as we all know by now, missed consensus estimates for the first time in last two years; resulting in a nice 21% hair-cut to the market cap. JNPR has been plagued by the acquisitionmania- acquiring five companies in last two years, starting with NetScreen and the most recent Funk Software. Recent acquisitions of Redline, Kagoor and Peribit contribued no growth during the quarter- that's

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com3tag:blogger.com,1999:blog-9013225.post-1138174966486638612006-01-24T23:35:00.000-08:002006-01-24T23:42:46.486-08:00

Apologies to my regular readers for the long hiatus, my posts should pick up in frequency again. Also, want to thank Forbes for mentioning this site as one of the top Investment Blogs on the web.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1138172843733426222006-01-24T22:59:00.000-08:002006-01-24T23:31:15.560-08:00

EXTR has been one of the cheapest networking stocks for a while, trading below 1x EV/Sales for some time. Trading in a range between $4 and $5ish for almost a year. EXTR has seen nice improvements in revenues for last few quarters, improving gross margins, better operating margin and even some buy-backs but the stock gets little respect. Today EXTR reported revenues that missed its own guidance.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1134449688795012002005-12-12T20:47:00.000-08:002005-12-12T20:58:56.520-08:00

INTC announced that it plans to issue $1.4b in Junior Convertible debentures. INTC currently has very little debt on its books. Its long-term debt is close to $400m, paltry amount when you look at the accounts payable balance of over $2b. The $1.4b is also a paltry amount for a company with market cap of $160b. So why issue debt when a company like INTC generates wads of cash every quarter? For

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com3tag:blogger.com,1999:blog-9013225.post-1132710466814554802005-11-22T17:41:00.000-08:002005-11-22T17:57:12.646-08:00

TECD reported this morning with results ahead of expectations and above the high-end of mgmt guidance. Both Americas and EMEA were strong sequentially. Gross margin was little weaker due to mix of products and where the product was sold and internal issues. Guidance for January quarter is for growth of 4-7% sequentially and 5%-8% Y/Y, which is on top of US Dollar appreciating about 10% from last

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1131927307931054012005-11-13T16:12:00.000-08:002005-11-13T16:27:08.140-08:00

I had mistakenly stated that Huawei was banned by BSNL due to its alleged ties with the Chinese government. That information was incorrect and came from a reliable source. It has come to my attention that the reason BSNL has banned Huawei is that because Huawei had earlier failed to deliver equipment on previously won contract for 1.05M CDMA lines. BSNL just rewarded ZTE contract for 2.85M

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1131822026459217832005-11-12T10:52:00.000-08:002005-11-12T11:03:07.033-08:00

As I had speculated last week about IBM starting to do more acquisitions in India, IBM bought a small outfit in India fews days back. IBM has announced that it has acquired Network Solutions Pvt. Ltd., a Bangalore-based infrastructure services company. Network Solutions will allow IBM to augment its networking and managed services portfolio. Network Solutions seems to be a network implementation

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1131511845948158552005-11-08T20:32:00.000-08:002005-11-08T20:50:45.966-08:00

CELL reported results ahead of expectations on both revenues and EPS. For those of you who do not know what CELL does, a quick introduction is in order: CELL is a distributor of handsets for various carriers throughout the world. CELL also distributes accessories for handhelds. CELL usually has great visibility into the end-market demand. Overall it seems as though handset demand remains strong

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1131507130698698292005-11-08T19:09:00.000-08:002005-11-08T19:53:37.943-08:00

IDTI reported after market today and the management sounded positive than the pessimistic market expectations. Top line and EPS was better, guidance is inline for revenues but EPS guidance is higher-just what I want. Company is already 80% booked for the quarter, 10% ahead of typical seasonality- is it demand or are people double ordering? Inventory in the channel and at OEMs seems to be a

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1131505653064805422005-11-08T18:42:00.000-08:002005-11-08T19:32:32.170-08:00

MTZ provided more details on the results for the quarter. The top line was slightly weaker than guidance due to the natural disasters during the quarter top line guidance for Q4 is little weaker also but EPS is higher due to continued margin expansion. Gross margin was higher than expectations even with negative impact from the hurricanes in Gulf Coast and Florida and lower margin from DOT work,

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1131407924203822242005-11-07T15:44:00.000-08:002005-11-08T19:32:46.570-08:00

MTZ reported results after market and as I had pointed out earlier margins are starting to move up. Gross margins increased nicely from 11.4% to 14.8% sequentially, very tough to see margins increasing in this increasing cost environment. G&A expense was higher but operating margins improved as well. MTZ is a play on not only better spending by carriers on specific projects like FTTx, it's also a

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1131227605203873642005-11-05T13:49:00.000-08:002005-11-13T16:17:07.743-08:00

NT in its 10Q (filed 11/3/05) has revealed that its BSNL business might not be as big as it has once anticipated. NT has raked up losses of approximately $263 million on recognized revenues of $288 million. Not really a profitable endeavor in my opinion. Company expects to build the remaining revenues “profitably, progressively”. That remains to be seen as the size of the deal might not be as

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1131042600464914732005-11-03T10:25:00.000-08:002005-11-03T10:30:00.506-08:00

Indian newspapers are reporting that IBM has purchased land in Bangalore. IBM CEO Sam Palmisano was recently in India on a not-so-well-publicized visit. Unlike CSCO recent announcement of spending $800M in India, IBM likes to keep things quiet for now. As IBM has been on the firing binge in Europe and America, the expansion in India would not sit well with some. Given that IBM services bookings

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1130907920638142212005-11-02T19:54:00.000-08:002005-11-02T20:32:52.856-08:00

Kiplinger's Personal Finance mentioned this blog in their November issue. Forbes had picked this site as one of the Best of the Web also. I want to thank all the readers and the editors of the magazines for including this site. This site has been up and running for a year now and there are a lot of articles that are archived. Take a moment and read through some of them, my favorites are 1)Eddie

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1129697099522030222005-10-18T21:41:00.000-07:002005-10-18T21:59:58.583-07:00

INTC reported revs in-line with estimates and at high-end of guidance; INTC also reported higher gross margins and higher operating expenses. Guidance for next quarter was below expectations and below seasonal growth because like we said before INTC produced more than they needed to hence kept gross margins up, now those excess shipments are being worked down by customers. Like I have said

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1128121194491203252005-09-30T15:41:00.000-07:002005-09-30T15:59:54.500-07:00

JDSU filed its 10K for fiscal year ended June 30th after the market closed today( do not ask me why it was filed 34 minutes after market close on a Friday). So what is the big deal? Perhaps some of the disclosure in the 10K! Lets see where to begin- I will just quote the original text:"Based upon the evaluation of internal controls as of June 30th , 2005, we have determined we have material

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1127426753330826462005-09-22T14:26:00.000-07:002005-09-22T22:32:04.586-07:00

COMS reported solid quarter with nice ramp in the new 5500 switch and VoIP where as the acquired security business was inline with expectations. I commented on COMS acquisition of TPTI (for $430M in cash) and it seems like buying growth has not worked so far. During the quarter Americas grew nice 8% sequentially, gross margins improved also, and guidance was slightly ahead of expectations. I

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1126626829929036072005-09-13T08:41:00.000-07:002005-09-13T08:56:48.016-07:00

ACN announced that it will be hiring 4,200 more employee for its Chennai facility in India over time. Company currently employs over 15K in India out of total 115K. India is the 2nd largest geography for ACN behind United States, UK has about 11K employees. If we assume Indian cost/employee is about 30% (or saving of 70%) of that of all the other employees (yes this is overly general assumption)

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1126198806185008802005-09-08T09:45:00.000-07:002005-09-08T10:03:57.446-07:00

Someone sent me a news story that highlighted a report by New York-based Katzenbach Partners. Report said that India-based IT outsourcing companies are much better positioned to serve clients than their US counterparts. The researchers added that Indian outsourcers could one day unseat US giants such as EDS, UIS and ACN.I don't know how detailed the report is and what kind of primary research

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1125426587978860442005-08-30T11:05:00.000-07:002005-08-30T11:29:48.006-07:00

As I wrote yesterday, DY lowered numbers for next quarter due to expected lower volumes from VZ FTTH build. DY actually missed numbers on the EPS line also for last quarter, without the $3M accounting gain from some insurance cost amortizations which helped EPS by 4 cents I believe. Its always nice to have some "cookie-jar" accouting to play with during weak quarters. DY suffers from being at

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1125375204672822992005-08-29T21:02:00.000-07:002005-08-29T21:16:54.680-07:00

DY reported results for fourth quarter inline with negative pre-announcement on revenues and one penny ahead on EPS. However, DY lowered guidance for 1st quarter dramatically. Company expects revenue for the first quarter of fiscal 2006 to range from $225 million to $245 million and diluted earnings per share to range from $0.17 to $0.23. Street estimates were at $266 million/$0.36. I talked

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1124739953918878532005-08-22T12:36:00.000-07:002005-08-22T12:49:24.666-07:00

Om Malik has a post on his site about Dell' Oro report that says that Q2'05 saw sequential growth of global optical revenues up 10%. I do not doubt findings of Dell' Oro given that all the high-speed internet subscriber growth will lead to capacity adds down the network. Given where this market fell from, its of little suprise that any good news is welcomed. Remember the $7B acquistion of Cerent

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1124454929543611272005-08-19T05:24:00.000-07:002005-08-19T08:20:35.496-07:00

Head of IPTV for SBC believes "$4 billion is very little money" and if he "bets wrong, it's not much money for us to burn". I do not own any SBC shares but this sure do not seem like "in the best interest of shareholders"-the tag line managements use to circumvent any question they do not want to answer. Given that all telcos have seen accelerating local line losses (the bread and butter for

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1124427397467597762005-08-18T21:48:00.000-07:002005-08-18T22:01:04.240-07:00

Why would any rational investor want to own DY? In this fairly robust environment for capital spending by telco, the company has lowered guidance last three quarters . VZ which accounts for 1/3 of DY revs has nothing but raised capex in recent times. DY announced that it expects revenues at low end of its previous guidance and EPS below the guidance. So not only does DY have any idea when VZ (or

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1124317739360570292005-08-17T15:22:00.000-07:002005-08-17T15:28:59.366-07:00

There has been a lot of talk recently, particularly by Larry Kudlow on CNBC on why Cisco should pay a dividend to move the stock higher. Larry even believes the stock can "double" if CSCO paid a 3% dividend yield. Here is why I think 3% dividend yield is a tough act for CSCO.3% dividend yield would mean $3.967B (assuming 6.612B shares outstanding and $18 share price). CSCO can't afford to pay

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com4tag:blogger.com,1999:blog-9013225.post-1120107726906015722005-06-29T20:49:00.000-07:002005-06-29T22:02:06.910-07:00

COMS reported earnings that were basically in-line with expectations. Guidance for next quarter is also in-line. The strongest growth came from VoIP (recently won Edward Jones) that grew 30% sequentially, and COMS said it won most of the business from AV and CSCO. VoIP is hot, but winning this Edward Jones deal took COMS 2 years, 2 years! is a very long sales cycle and pricing on this stuff can

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com19tag:blogger.com,1999:blog-9013225.post-1120049102757821752005-06-29T05:39:00.000-07:002005-06-29T05:45:02.766-07:00

To be fair, I have to disclose that JDSU has also accelerated option vesting on approximately 33.85M shares or 22% of outstanding unvested options. All this is in anticipation of option expensing later in the year but the only way these tricks will work is if the stock moves higher from here. As with any dilutive transaction shareholders should not accept these management/employee enrichment

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1119933619908738992005-06-27T21:23:00.000-07:002005-06-29T05:45:23.600-07:00

EXTR accelerated option vesting for some 4.5M shares, which is 21% of outstanding options. What is amazing is that this accelerated dilution is to avoid "expense in fiscal years 2006, 2007 and 2008." This amounts to about $11.43M of "free money" paid-for by all of the current shareholders. And get this, "the Compensation Committee believes that this action is in the best interests of Extreme

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1117776823760009052005-06-02T22:01:00.000-07:002005-06-02T22:39:22.196-07:00

CTXS is going to spend over $300M to buy one of the leaders in WAN optimization space, NetScaler. This is the same market that Juniper spent roughly $500M to enter with two acquisitions in April. CSCO which already addressed this market bought FineGround about a week or so ago for $70M to enhance its optimization products. FFIV the kingpin in this market has seen its shares steadily decline ever

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com3tag:blogger.com,1999:blog-9013225.post-1117774656572977412005-06-02T21:41:00.000-07:002005-06-02T21:57:36.576-07:00

CIEN reported earnings this morning and results were better than expected by sell-siders. Guidance was actually in line but gross margins are expected to increase next quarter. The issue with CIEN is that it has spent millions on buying numerous companies in past year or two to get it self out of the optical business and all that money hasn't really delivered. CIEN bought companies for storage

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1115126965797015342005-05-03T06:10:00.000-07:002005-05-03T06:29:25.800-07:00

VZ has won the battle for MCIP, outbidding Q. MCIP was the last major independent long-distance company. VZ is paying through the nose for MCI, paying as much as 25% higher than its initial bid, which MCI shareholders should thank Q for. MCI was valued at 6x estimated 2006 EBITDA whereas VZ itself trades at a 5.4x. MCI has declining EBITDA and VZ paid a premium. VZ was after the corporate

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1114570602260514522005-04-26T19:35:00.000-07:002005-04-26T19:56:42.263-07:00

JNPR has agreed to buy two networking firms for roughly $500M. Peribit Networks and Redline Networks make gears that make enterprises run applications faster over the wide area network. This allows branch offices of large enterprises have faster access to corporate wide applications such as Oracle or SAP. Peribit competes with PKTR and CSCO (through its Actona acquisition) and various private

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1114570883424917372005-04-26T18:00:00.000-07:002005-04-26T20:01:23.423-07:00

I have been unable to update this blog as I had been on vacation and then busy with earnings. Hope to update with regular posts. Thanks for continuing support

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1112410896901029852005-04-01T18:38:00.000-08:002005-04-03T19:51:49.106-07:00

Companies will start to announce earnings in about a weeks time. I refer new readers to check out my earlier article from January 03,2005 in which I predicted a tough tech market. Now that Nasdaq lost 8% in first quarter its fairly evident that Q1 was not nice for tech investors. I believe end-market demands still very tepid and with "spiking" oil, tech is still a tough place to be. I do not see

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1111630596640653242005-03-23T17:55:00.000-08:002005-03-23T18:17:40.090-08:00

Light Reading is reporting that Huawei has had discussions with LU and NT to form some sort of partnership with suppliers in North America. I have argued for a while that sooner or later the traditional equipment suppliers in the Western world will procure equipment from lower cost suppliers in China (some like Tejas Networks in India are also upcoming) and themselves become only service oriented

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1111549823083724132005-03-22T19:49:00.000-08:002005-03-22T19:50:23.096-08:00

This is continuation of the series in which I introduce some of my favorite names in technology. The major themes were discussed in the It's a tough market- pick your stocks wisely. In the first part we discussed JNPR and FFIV. Another theme that I like is Outsourcing, Lou Dobbs can say what he wants but it's happening and we all benefit from it. Competition in outsourcing is good for all

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com7tag:blogger.com,1999:blog-9013225.post-1111121533263667992005-03-17T18:22:00.000-08:002005-03-17T20:52:13.266-08:00

COMS reported results that were slightly better than expectations and remarkably for the first time in last 7 years COMS grew revenues in the weak fiscal Q3. Guidance was somewhat weaker if you account for all the "benefits", such as: results for next quarter include full-quarter contribution from recent TippingPoint acquisition, benefit by having 14 weeks in the quarter and "mid-to-high single

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1110513744353649052005-03-10T19:43:00.000-08:002005-03-10T20:31:22.530-08:00

Today was the 5th anniversary of all-time high for Nasdaq of 5048.62. Om did a good job of assembling some good articles on the topic. Obviously we are no where close to that all time high. But a regular reader forwarded me an article on where the money is flowing globally. Acording to the article, of the 26 international benchmark indices, as many as 13 have hit their lifetime highs during the

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1110518561994899062005-03-10T17:14:00.000-08:002005-03-10T21:22:41.996-08:00

As expected INTC provided mid-quarter guidance in which INTC raised revenue guidance to $9.2-$9.4B, the upper end of the prior range of $8.8-$9.4B, with the mid-point going from $9.1B (-5.2% QoQ) to $9.3B (-3.1% QoQ). Gross margin guidance was raised to 57% +/- 1%, up from prior guidance of 55% +/- 2%. The market was expecting tightening of the range but this was slightly more positive.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1110296319403267332005-03-08T07:37:00.000-08:002005-03-09T21:26:46.803-08:00

TXN gave mid-quarter guidance after market close yesterday and lowered its 1Q05 revenue guidance from $2.90-$3.14 billion (mid-point of $3.02 billion, down 4% Q/Q) to $2.91-$3.03 billion (mid-point of $2.97 billion, down 6% Q/Q). 1Q05 EPS guidance was lowered from $0.22-$0.26 to $0.22-$0.24. Street had expected 1Q05 at $3.04B and $0.24. The main culprit for lower revenues was weakness in DLP

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1108258752229055212005-02-12T17:27:00.000-08:002005-02-12T18:42:11.210-08:00

According to the proxy statement filed by HPQ Ms. Fiorina made out handsomely after being forced to resign by the board. Carly will receive a severance package worth about $21.4 million, and stands to gain at least $21.1 million more. Details below:"HP will make a cash payment of $14,000,000 to Ms. Fiorina, which represents 2.5 times her base salary and targeted annual cash bonus. This amount

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com8tag:blogger.com,1999:blog-9013225.post-1107955535551384182005-02-09T05:10:00.000-08:002005-02-09T05:31:31.436-08:00

HPQ announced that Carly Fiorina is stepping down from the CEO position. I was never a fan of Carly and I for one welcome this. But this does not solve the deep structural problems that exist at HPQ. But I believe it does open the doors for HPQ to spin-out different segments of its business like it did with A. Except stock to trade up, maybe they can bring back Walter to run his dad's business?

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1107927035142343372005-02-08T20:29:00.000-08:002005-02-09T05:27:15.243-08:00

CSCO results were not as I expected for the most part. Revenues and EPS barely came in at midpoint of guidance instead, of my expectations for higher-end results. Book-to-bill was below 1 even though orders grew faster than revenues. October book was pretty bad and switches were weaker than I had first thought, which continued into January quarter. My guess on book-to-bill being better than 1 was

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1107838262956730902005-02-07T20:06:00.000-08:002005-02-08T08:11:35.120-08:00

CSCO is going to release its fiscal second quarter earnings tomorrow (2/8). The consensus expectations are for revenues of $6.13B and EPS of $0.22. CSCO has guided to 1%-3% revenue growth and gross margin between 67%-68%. Areas of strong interest during tomorrow's call will be revenues/eps, gross margins, operating expenses, shares outstanding/buy-back, inventory, book-to-bill, guidance for April

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1107179223465649152005-01-31T05:23:00.000-08:002005-01-31T05:47:03.466-08:00

Its official! SBC is buying T for $16B. SBC is buying T for its large business customer base, but wireline business has become a tough business with most companies having very difficult time in generating growth from this business. This acquisition should help stop the tide of declining wireline revenue but do not expect major turnaroud in wireline, consider this a stop-gap for few years. T

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com8tag:blogger.com,1999:blog-9013225.post-1106361135947617042005-01-30T20:02:00.000-08:002005-01-30T21:04:51.886-08:00

When I made the comment a few months back that semis are going to be in pain into earnings, I wasn't so sure about non-Semi companies having such difficult time but even non-semis have had a tough time. I pointed out late last year that tech was ahead of itself and street estimates were ahead of reality especially in semis. Even with the recent sell off, tech is still trading at significant

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1105592957806287992005-01-12T20:49:00.000-08:002005-01-13T05:33:12.520-08:00

Usually companies like to beat expectations by a penny or two even if they can do say four pennies, because they don't like uncertainty and they move shipments to next quarter for backup. AAPL on the other smacked one out of the ballpark and then some. AAPL beat EPS estimates by unheard of $0.29! Now what are the buy-siders paying for when the sell siders estimates are not even in the same time

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com4tag:blogger.com,1999:blog-9013225.post-1105504220592598842005-01-11T19:43:00.000-08:002005-01-11T20:43:16.216-08:00

Semi Cap companies, specifically AMAT, ASMI, WFR, NVLS, will have the largest spender continue to spend more and more to stay "competitive". INTC announced that it plans to spend $4.9 to $5.3B next year on capex and most of that on equipment. This is much better than most people were expecting, including yours truly, and will certainly light a fire under some of the semi cap names mentioned above

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1104984715566227992005-01-05T19:58:00.000-08:002005-01-05T20:11:55.566-08:00

XLNX lowered guidance for December quarter, that's the second time they have lowered guidance for Decemeber. I been wary of semis and this continues to support my view of weak end markets. For one thing XLNX's prior December guidance was little bit better than ALTR, so I do not expect ALTR to lower guidance. The inventory build at the semis will continue to be of concern for Q1 and beyond which

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1104814796814120992005-01-03T20:46:00.000-08:002005-01-03T20:59:56.816-08:00

ISSI pre-announced after market close today. ISSI blamed "too much inventory" which led to pricing pressure for the miss. It's a 10% miss on top line, which is worrisome in itself but that's on top of the recent acquistion of Signia- I can't imagine how bad it would've been without that acquisition . Other DRAM suppliers will face more pain. I continue to think semis have tough time ahead

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1104774057458535432005-01-03T09:40:00.000-08:002005-01-03T09:44:31.430-08:00

Welcome to the New Year; hope 2004 was a successful one for all. Here is a short summary of what I am thinking for this year and longer-term in tech. Some of the semis could have issues given limited growth potential as the largest consumption of semis- PC becomes a replacement market. As likes of WMT offer $400 laptop. Semiconductor growth will likely come from FTTP, GbE, HDTV/ATV, IPv6, 3G,

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com3tag:blogger.com,1999:blog-9013225.post-1103694943261714892004-12-21T21:40:00.000-08:002004-12-21T21:55:43.260-08:00

MERX is a speciality EMS supplier for high-end equipment which reported lower revs but in-line EPS and the guidance was lowered. Basically weak-end market demand hurt the revenue line whereas better mix of products manufactured helped gross margins. MERX was hurt by ERICY moving business to other suppliers and lower. Premium revenues picked up as customers order with shorter lead times, meaning

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com8tag:blogger.com,1999:blog-9013225.post-1103692207483737772004-12-21T21:09:00.000-08:002004-12-21T22:02:11.146-08:00

SLR reported earnings after market today and had nothing nice to say with lower than expected revenues due primarily to weak end markets. Also lowered guidance for next year with emphasis on 2nd half of 2005. We have heard this back-end loaded story too many times to believe it now so companies should just find better tag-lines to use for their spins. Unlike JBL yesterday, SLR was more

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1103594841728271322004-12-20T17:52:00.000-08:002004-12-20T21:21:58.483-08:00

JBL is one of the leading EMS supplier manufacturing products for variety of end markets. JBL commentary was fairly positive for consumer market indicating end-market demand was strong. Other sectors performed as expected but JBL is slightly more optimistic regarding the communications sector helped by stable end-market. JBL feels the environment has improved from 90 days ago, I believe we could

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1103116954121786482004-12-15T05:05:00.000-08:002004-12-15T05:22:34.120-08:00

BBY reported earnings this morning that are slightly ahead of expectations, also updated guidance for FY2005 which seems in-line to slightly positive. "Month-to-date revenue is on track with our expectations," stated Darren Jackson, executive vice president and CFO. Seeing strength in "digital televisions, MP3 players, digital cameras, notebooks and appliances, among other areas." Maybe we

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com3tag:blogger.com,1999:blog-9013225.post-1103088084677883642004-12-14T19:45:00.000-08:002004-12-14T21:26:07.356-08:00

TQNT became the next semi company to lower guidance for Dec qtr during its mid qtr call today. Dec guidance is now 18% to 19% sequential decline in revenues versus prior expectation of 11% to 15% decline. TQNT blamed wireless and optoelectronics softness for the lowered guidance. TQNT expects flat revenue in 2005 with second half accouting growth. Q1'05 visibility looks weaker for handsets which

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1103075883675779602004-12-14T17:45:00.000-08:002004-12-14T17:58:03.676-08:00

This humble little site got mentioned by Forbes.com as one of the Best of the Web in the Investing Blog category. I thought my family and I were the only ones that read this blog. Hopefully the increased attention will lead to more interactive discussions. Keep reading and make comments as you please. I would like to clear up one thing, I focus more on GARP oriented investments, rather than pure

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1103003031376332982004-12-13T21:34:00.000-08:002004-12-13T21:46:02.423-08:00

Markets are running into closing days of 2004. I am not the one to spoil this party but discretionary spending on high and mid class furniture is taking a tumble, ask FBN. Do you consider the new flashy flat screen TV as discretionary? Consumers are certainly spending money this season but big ticket items continue to lag and without the continued enthusiasm from consumers there are plenty of

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1102987120809742242004-12-13T17:45:00.000-08:002004-12-13T20:36:42.773-08:00

ADTN pre-announced after the market close today and lowered revenue guidance to $100M-$104M from previous guidance of $115M-$120. This is the second quarter in row that ADTN has lowered guidance. This does not bode well for traditional equipment providers especially given that there are still 17 days left in the quarter- unless they are closing shop. Last quarter ADTN blamed "Broadband" (DSLAMs &

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1102990532387488602004-12-13T17:30:00.000-08:002004-12-13T20:36:27.503-08:00

COMS announced that it intends to buy TPTI for $430M in cash. CASH! that's 34% of the cash COMS has, what are they thinking? Keeping acquired companys' management in the game is tough when you hand out cash to them. The risk of this acquisition of not working out is high. The $430M purchase price works out to be over 10x sales (who said the bubble is over). I cannot see how COMS sustains its

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1102395719170207322004-12-06T20:54:00.000-08:002004-12-06T21:06:33.076-08:00

Is any one keeping track of how many times COMS has missed internal guidance? Well today's pre-announcement was the third consecutive miss, now that's a trend we can rely on! Management lowered its own guidance on both revenues and EPS which tells you not only is sales hard to come by, they might be having issues with pricing as well. Gross margin guidance was lowered to 35% from 38%. My take is

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1102394892465067302004-12-06T19:48:00.000-08:002004-12-06T20:48:12.466-08:00

BLS held its analyst day today. Didn't really hear anything that makes me wanna jump. But here are few pointers which I thought are worth mentioning: Expect wireline related capital expenditure to be flat with 2004 spend or about $2.4B. Have you looked at what the growth expectations are for box makers like LU, NT? Obviously there will be more spend towards IP/MPLS (boxes made by JNPR and

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1102129939892245852004-12-03T18:39:00.000-08:002004-12-03T19:18:46.806-08:00

Recently this site has been mentioned at other much more popular destinations of blogging community. Om Malik of Gigaom.com mentioned my thoughts on INTC today. EuroTelcoblog a blog run by James Enck recently introduced this site as a possible "Rance" of Wall Street. David Jackson at SeekingAlpha introduced this site as full of pithy and original analysis. I am grateful to all the veterans of

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1102054502625151092004-12-02T20:06:00.000-08:002004-12-04T12:44:08.746-08:00

Most on the Wall Street expected INTC to narrow its revenue guidance to $8.9B to $9.2B from prior wider guidance of $8.6B to $9.2B. Most expected INTC to remain fairly conservative and especially gross margin guidance was expected to remain unchanged at 56%. There were even some who expected INTC to just maintain its prior guidance and perhaps lower gross margin guidance. INTC however surprised

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1101276652668948242004-11-23T22:07:00.000-08:002004-11-24T05:14:23.356-08:00

TECD had fairly positive commentary on overall tech spending especially in North America from SMBs. Question remains if the strength continues as oil prices move back up, dollar continues to devalue and if interest rates pick up. TECD sales grew 8.6% Y/Y and 4.2% sequentially, with steady growth in most markets especially in the SMB market in North America. Company also raised guidance for

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com26tag:blogger.com,1999:blog-9013225.post-1101186588396847882004-11-22T19:04:00.000-08:002004-11-22T21:09:48.396-08:00

Most tech investors remember the HP & Compaq merger, which was announced in September 2001. The recently announced KMRT and S merger have some similarities and differences with the HP/Compaq merger. I believe HPQ and DELL rivalry is similar to KMRT/S and WMT rivalry. DELL (just like WMT) at the basic level is nothing more than a very efficient supply-chain which both HPQ and KMRT/S are striving

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com6tag:blogger.com,1999:blog-9013225.post-1100833278480524322004-11-18T17:41:00.000-08:002004-11-18T19:01:18.480-08:00

MRVL, one of the darling semiconductor companies, reported earnings after the close today and for the most part it was not all that bad. Some important data: revenues grew 7% sequentially but the EPS was a penny better due to higher gross margin and lower R&D expense. The growth is pretty nice given the tough demand and pricing in the markets MRVL supplies. Management had guided to 7% growth so

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com7tag:blogger.com,1999:blog-9013225.post-1100754091221175212004-11-17T20:45:00.000-08:002004-11-17T21:01:31.220-08:00

CRM's on-demand model continues to gain traction and is becoming more mainstream. Revenues grew 82% from last year, and 14% from last quarter, that kind of profitable growth is tough to come by these days. Company is on a path to end vertically focused applications which would mean that smaller niche CRM providers are in trouble. CRM is also changing the software model and in their opinon

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com2tag:blogger.com,1999:blog-9013225.post-1100668210659779542004-11-16T21:07:00.000-08:002004-11-16T21:23:08.683-08:00

I have talked about affects of the weakening Dollar on the macro economy few times before. Today I was reminded of why we call it the "Strong Dollar Policy" even though the Dollar continues to weaken. HPQ on its conference call commented that the weaker dollar will help it generate $500M extra next year. Now with $500M extra at the top line and 7% operating margin that translates to $35M extra of

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100667897260437652004-11-16T19:20:00.000-08:002004-11-16T21:29:43.946-08:00

HPQ revenues grew 4% year over year(after adjusting for weaker dollar) nothing to be too happy about but given the low valuation, its not that bad for HPQ. Strong storage and server quarter with nice turn around from last quarter leading to largest number of INTC based servers shipped during a quarter. Might have shipped bit too many inkjet printers into the channel in October due to new product

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100628103705600612004-11-16T09:51:00.000-08:002004-11-16T10:01:43.706-08:00

I have never understood the economics behind NFLX and how it could survive. I had never owned NFLX shares for this reason, nor was I ever short because timing it is tough. But now some on the sell-side are finally singing to the same tune. Check it out at CBS MarketWatch.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100613941746145112004-11-16T06:00:00.000-08:002004-11-16T10:02:40.860-08:00

PPI index reported this morning had the biggest gain in nearly 15 years. When producers pay more for raw materials, they usually pass those price increases to the consumers which leads to inflation. Core PPI which exlcludes food and energy was also stronger than expected. So its not just oil that is causing the PPI gains. The weakening dollar certainly does not help this situation and if the

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100613510797116982004-11-16T05:47:00.000-08:002004-11-16T05:58:30.796-08:00

AMCC announced last night that it will let go of about 20% of its workforce, which is about 150 people. This move will save the company about $6-$8M/quarter by March 2005. Sounds nice at surface, where the management is taking the right steps to bring company to profitability. But this is the company that in last few years had decided to buy into storage and embedded processor markets. Wasn't

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100490336918255102004-11-14T18:48:00.000-08:002004-11-14T20:25:00.373-08:00

The recent run up in stocks driven by lower oil prices, big money inflow into mutual funds, possibility of Social Security reform and certainty about the Presidency has me thinking "What now?" I am not the one to fight the trend but I do like to think about what could go wrong in this bullish run up: the biggest worry remains the pace of the economic growth. With rising interest rates,

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100178906207394322004-11-11T05:11:00.000-08:002004-11-11T05:15:06.206-08:00

AMD was upgraded by Merrill after Lehman upgraded yesterday. Merrill upgraded to Buy from Neutral, due to expanding profit margin and market share gains against INTC. They believe the product roadmap for INTC looks troubled. Same stuff we talked about previously. I like it when the hits keep on coming.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100105211061916202004-11-10T08:39:00.000-08:002004-11-10T08:51:11.780-08:00

The "Cost of Christmas" survey in England estimates that consumers spending on Christmas will be the lowest in 5 years. This is due to lower consumer confidence, five interest rate hikes and slumping housing market across the pond. The survey could give us some sense of what consumers might do in the U.S given eerily similar scenario playing out in the U.S. However, there are plenty of

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100092836159642242004-11-10T04:54:00.000-08:002004-11-10T05:23:52.776-08:00

I don't really like to talk about stock upgrades and downgrades but there are two moves this morning that are noteworthy because we talked about these in the past. AMD is getting upgraded by Lehman since they believe that AMD will see improving margins due to manufacturing effeciencies and share gains. Stock has moved up in last few weeks. But like I said few days back, I believe AMD is a better

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100061066288727022004-11-09T20:14:00.000-08:002004-11-09T21:25:05.400-08:00

There wasn't any thing pretty about CSCO earning report. Lets begin with what went wrong (with usual amount of paranoia-no pun intended) : 1)Gross margins declined because a) they shipped more new switches which aren't being produced as profitably as before b) they didn't ship enough GSR routers because JNPR keeps winning at carriers like VZ c) Linksys product shipments increased because we are

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com5tag:blogger.com,1999:blog-9013225.post-1100063371991076832004-11-09T17:23:00.000-08:002004-11-10T05:11:15.823-08:00

Dow and S&P 500 closed in red where as Nasdaq held onto some gains, that makes it seven days in a row that Nasdaq has had a gain. Broader markets however had positive breadth. Check out the difference in the return on the Dow and the Russell 1000 (up 8.4%) or Russell 2000 (up 11.9%) for this year. There is more to the markets than just the Dow. Dow this year has been battered by various

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100016104153559072004-11-09T07:52:00.000-08:002004-11-09T08:04:47.960-08:00

According to SacBee the California Insurance Commissioner John Garamendi is supposedly thinking of backing down from his previous stance of not allowing ATH WLP merger to go thru. As highlighted last week, I believe managed health care stocks have more upside given less uncertainty from Washington and this merger certainly will help fuel other deals, such as CVH FHCC announcement. The stocks

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1100011130674579232004-11-09T06:25:00.000-08:002004-11-09T06:38:50.673-08:00

CDWC reported monthly sales for October of $498M , which is above expectations. The sales grew 11.2% over last year and were down 5.4% from September. It could mean two things: either CDWC is gaining share from IM especially in large corporate sector or that the overall IT spending is improving into year-end. I would lean towards the latter. Both IM and CDWC are large channels for CSCO products,

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1099977199804761092004-11-08T20:43:00.000-08:002004-11-09T05:58:58.343-08:00

Broader markets closed slightly in red as talk of rise in interest rate came back into the picture but both the Dow and Nasdaq etched out a gain. Dow was helped by MRK, BA and JNJ. In technology the Internet names, Semiconductors and EMS companies (upgraded by Smith Barney) ended the day in green column. Merrill Lynch downgraded the Internet sector and upgraded Software. S&P retail index also saw

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1099972810981383802004-11-08T18:06:00.000-08:002004-11-09T06:50:25.910-08:00

JMDT reported earnings for third quarter after market today. The company reported results that were below analyst expectations (one analyst) which is certainly not a great way to come public. Risk of lower gross margins came to fruition combined with higher operating expenses resulted in operating margin dropping 300 basis points. Gross margins dropped due to higher percent of revenue coming from

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com4tag:blogger.com,1999:blog-9013225.post-1099929267784014332004-11-08T07:33:00.000-08:002004-11-08T07:54:27.783-08:00

Forbes.com story highlights ten reasons why the airline industry in its present form will not survive. I am not inclined to be long airlines stocks that are moving higher due to lower crude prices, unless the economic model is changed lower crude pricing alone can not save the airlines. It basically boils down to economics of having too much capacity in the industry. Blaming high oil prices or

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1099922528007460792004-11-08T05:54:00.000-08:002004-11-08T06:08:31.206-08:00

The Wall Street Journal has a small piece on JMDT which is more focused on cell phones and how they are becoming the "next platform". I wrote little bit more indepth about JMDT yesterday.

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1tag:blogger.com,1999:blog-9013225.post-1099888383898866782004-11-07T20:40:00.000-08:002004-11-07T20:41:35.220-08:00

I do not do advertisement for network TV but CNBC will run a report on WalMart on Wednesday Nov 10 at 7PM ET. I think it is crucial to understand WMT since the decisions and direction of WalMart have very far reaching consequences. WalMart is the largest non-governmental employer in the U.S. which can affect everything from health insurance providers to unionized competitors like ABS and SWY. Its

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com0tag:blogger.com,1999:blog-9013225.post-1099885206330149472004-11-07T18:04:00.000-08:002004-11-08T06:05:33.016-08:00

You may not have heard about JAMDAT Mobile Inc, it could be the one to watch after market close on Monday, Nov 08 when it reports results. The company is based in Los Angeles and went public last month. It is profitable mostly due to the success of Jamdat Bowling, one of the most successful cellphone based games. In this fairly nascent and fragmented market JMDT is one of the leading players and

Slashhttp://www.blogger.com/profile/09920399306859828812noreply@blogger.com1