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Today's Tech/Media/Telco Stories
News and Views | Macro/Technicals | Active Names | Earnings | Sector News, M&A, Capital Raises | Research Away | Conferences

News and Views

Tech continued its losing streak yesterday with semis being the weakest sector. SOX closed down 4.3% at 330, the level we have not seen since early July. BRCM fell over 6% after RW Baird issued a cautious research note. CREE traded down 13% after reporting mostly inline numbers Wednesday night but guiding lower going forward.  On a positive note disk drive space enjoyed a boost as sell-side commented that WDC +2.8% and STX +1.64 are oversold at current levels.  According to iSuppli notebook market is shifting toward integrated GPU-CPU solutions as smaller form factor attracts consumers. The firm predicts integrated GPU-CPU solutions’ market penetration to be 50% in 2011, up from 39% in 2010. More bad news for NVDA?

After the close CSCO traded as low as 21.70 (down 8.4%) after company reported mostly inline quarterly results but guided lower.  CEO John Chambers noted on the conference call with the Street that it saw softening business in the mid-June to mid-July time period, but added that they strengthened after that. The company’s margins were short of expectations, due in part to higher component costs. He also reported that Cisco’s customers were showing unusual conservatism in their buying habits and outlook

 

Macro/Technicals

S&P : 1082.40; -.24%
SOX: 330; -4.26%
VIX: 25.39; +13.5%

Active Names

 

Enterprise/Service/ SW: BR, CIEN, MSFT, RNWK, ARBA

PCs/Devices/Net: BIDU, DELL, ADCT, YHOO, MOT, HPQ, UNTD

Semis/Circuits: Storage: IDTI, MU, VLTR, WFR, SYNA

Network Products: CSCO, BRCD, PLCM, FTR

Telco: CVC, GNCMA, ETM, VZ, T, TWX, ROIAK, VSAT

Electronic components: APH, TNB, ENS, AVX, ENTG, CREE

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, ADPT, LNET, ETM, CRNT, VTSS, EVC

Earnings

 

CSCO mixed Q4 and disappointing Q1 guidance. Mgmt’s tone was very cautious saying there is “unusual uncertainty” in the macro-economic environment. Cisco plans to add another 3,000 employees over the next few quarters. GMs in the Q were a miss as GMs are at their lowest level in 8 years. Higher component costs could be to blame for the lower GMs.

Sector News, M&A, Capital Raises

 

AVGO Avago issues press release; confirms withdrawal of secondary offering

GOOG Google Ventures invests in iPhone/iPad game developer ngmoco – TechCrunch

HPQ Former Hewlett-Packard CEO's chief of staff resigns - WSJ

AAPL to replace overheating iPods in Japan - WSJ

S Sprint Nextel To Retail Samsung Epic 4G Smartphones From Aug 31

Research Away

 

Credit Suisse initiates ARBA, CNQR, CTCT, others

ARBA initiated outperform with $20 target

N initiated outperform with $21 target

RAX initiated outperform with $22 target

SFSF initiated outperform with $27 target

TLEO initiated outperform with $30 target

CNQR initiated neutral with $50 target

CTCT initiated neutral with $20 target

RNOW initiated neutral with $17 target

FNSR downgraded to Hold from Buy at Auriga, px tgt to $16 from $19

CSCO downgraded to Market Perform from Outperform at BMO Capital - Target to $23 from $32

CSCO downgraded to Perform from Outperform at Oppenheimer

Conferences

 

Canaccord Adams Global Growth Conference - Aug 10, 2010 - Aug 12, 2010

Oppenheimer & Co. Telecommunication, Media & Technology Conference - Aug 10, 2010 - Aug 11, 2010

Morgan Keegan Technology Conference - Aug 11, 2010 - Aug 12, 2010

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