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

News and Views

Tech names were relative outperformers yesterday, mainly on renewed M&A activity (INTC for MFE). Specifically SYMC +6%, CHKP +1.2%, FIRE +4.3% and WBSN +5.2% all finished up on a day. Moreover INTC/MFE merger reinforces theme of software/hardware/services consolidation. Expect more buyouts, especially for niche companies that enable a better mobile/wireless experience.

NVDA closed up 6% after Cramer highlighted the name on Mad Money yesterday. Also yesterday North American semiconductor equipment industry posted July book-to-bill ratio of 1.23 vs. 1.18 in June.

DELL sold off roughly 1.5% after reporting what seemed to be solid Q2 results. Bears may point out that GMs were unimpressive at best. HPQ traded lower less than 1% after reporting an inline Q3 results. However there may be some questions about the guidance due to a potential policy shift from the coming CEO succession

 

Macro/Technicals

S&P Fut.: 1067.20; -.38%
SOX: 326.42; -1.71%
VIX: 26.44; +7.52%

Leaders: MAG +14.5%, SYMC +6.2, NVDA +6%, WBSN +5%
Laggards: CMLS -9.8%, XRIT -9.4%, GTN -9%, EVC -7.7%

Active Names

Enterprise/Service/ SW: BR, CACI, MSFT, ADBE, CMVT, EXLS, LWSN

PCs/Devices/Net: BIDU, DELL, AAPL, MOT, HPQ, MOT, RIMM

Semis/Circuits: Storage: WDC, SYNA, EMC, STX, SNDK

Network Products: CSCO, BRCD, PLCM, FTR, TKLC

Telco: VZ, T, TWX, ROIAK, VSAT, SIRI, Q, S, WIN

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

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, ADPT, AXTI, QTM, GUID, COHU

 

Sector News, M&A, Capital Raises

SNDK SanDisk $1B convertible senior note offering priced through Morgan Stanley and Goldman Sachs. The pricing is equivalent to an initial conversion price of $52.37/share. The over-allotment is $150M.
Cable: Small cable companies want restrictions on Comcast, Washington Post says

Tablets: LG readying a tablet computer, WSJ reports - The tablet, which will run of Google's (GOOG) Android software, will launch in Q4 and plans to set itself apart from the iPad (AAPL).

 

Research Away

MRVL JP Morgan raises estimates and price target on Marvell

RIMM downgraded to Underweight from Overweight at Morgan Stanley

CRM Kaufman Bros. reaffirms buy rating, raises target to $120 from $110 on Salesforce.com

YHOO initiated underperform at Wedbush Securities, px tgt $13.25

GLW downgraded to hold from buy at Jefferies, px tgt to $18.25 from $24

 

Cantor Flows

Enterprise/Service/ SW: BR, CACI, MSFT, ADBE, CMVT, EXLS, LWSN

PCs/Devices/Net: BIDU, DELL, AAPL, MOT, HPQ, MOT, RIMM

Semis/Circuits: Storage: WDC, SYNA, EMC, STX, SNDK

Network Products: CSCO, BRCD, PLCM, FTR, TKLC

Telco: VZ, T, TWX, ROIAK, VSAT, SIRI, Q, S, WIN

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

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, ADPT, AXTI, QTM, GUID, COHU

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