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May 23, 2012 6:20 PM EDT
Updated: Aug 25, 2010 6:27 AM EDT  

Tech/Media/Telco

Nichols, Clark, Callaci, Musyuk (212) 829-5481

News and Views

Tech stocks finished in the red, slightly underperforming the broader market. SOX closed down 1.66% after iSuppli released 2Q 2010 inventories number, which was up 9% sequentially, The firm, however argued that the number does not yet represent a cause for concern as demand is expected to increase in 2nd half of 2010. On a positive note a bidding war for PAR kept CVLT +1.5% and ISLN +1.4% in the green. (Recall also that DELL has until Thursday to match HP’s bid). Wireless chip names (RFMD +9%, SWKS +.2%) were up on Sterne Agee’s comments on “modest improvement” in Chinese handset shipments; the firm specifically recommended buying RFMD.

This morning WSJ is bullish on tech names. The article argues that as top 8 technology companies are sitting on $125B in cash M&A activity is set to continue.

 


Macro/Technicals

S&P Fut.: 1047; -.27%
SOX: 318.41; -1.66%
VIX: 27.46; +7%

Leaders: DAKT +17%, RFMD +8.9%, QTM +5.82%, PAR +3.6%
Laggards: IDT -8.9%, ITCD -8.5%, OPEN -8.4%, CNXT -7.8%

Active Names

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

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

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

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

Telco: VZ, T, TWX, ROIAK, VSAT, LEAP, S, WIN

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

Media: AOL, CVC, SIRI, PLA, VMED

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

 


Sector News, M&A, Capital Raises

AAPL: Survey shows 26% of mobile workers plan to get an iPad- AppleInsider

AAPL: Apple Said to Prepare New 99-Cent TV Rental Service- BBG

AAPL, Sharp: Sharp's e-reader ready to 'rival the iPad' by year's end, may have a 3D- Engadget

Washington Times: Founder may buy back the paper- Reuters

CSTR Coinstar to sell money transfer business for $41.5 mln- Reuters

CTL CenturyLink’s Takeover of Q Qwest Is Approved- Dealbook

VRNT Verint Systems files 2.4M share secondary offering for holder Comverse Technology (CMVT)

TVs: 32-inch segment takes 41% of TV panel shipments in 2Q10 in China- Digitimes

Handset Chips: Prices for analog-TV handset chips to continue to fall- Digitimes

GOOG, AAPL: Android users better target for mobile advertising than iPhone users?- IntoMobile

Alibaba makes second U.S. buy in 2 months. Agrees to buy Auctiva - Reuters

AMZN: Amazon's new eReader has sold out before it has even shipped to the public- Telegraph

China Telecom reports better. The number of users doubling in the Q was a major positive. Capex estimates were raised, but the future looks bright after the positive customer adds.

AVGO reports a better Q on the top and bottom line and guides Q4 higher.

Foxconn: BYD won court approval to pursue claims that  Foxconn gathered false evidence  and conspired to injure its business- BBG

QCOM Qualcomm May Invest $2 Billion in Taiwan- Commercial Times

MENT Mentor Graphics holder Carl Icahn discloses a 14.98% stake in an amended 13D filing; up from 14.13% disclosed on 30-Jul

VECO Veeco authorizes repurchase of up to $200M in shares over the next year

EPAY Bottomline Technologies awarded US patent for invoice data capture capabilities

RIMM Research In Motion "quietly" acquired Cellmania - All Things Digital

ROVI Rovi Corp signs extended IPG patent license agreement with British Sky Broadcasting

 


Research Away

OPEN upgraded to buy from neutral at Bank of America Merrill Lynch

WIN upgraded to buy from neutral at Bank of America Merrill Lynch, px tgt to $12 from $11

ORCC upgraded to outperform from perform at Oppenheimer

GLW upgraded to outperform from perform at Oppenheimer, px tgt $20

 


Conferences

Morgan Stanley Semi and Semi Cap Equipment Investor Day: ATHR , ENTR , LSCC , MU , MXL , SWKS

Shareholder Meeting: CVLT

 


Cantor Flows

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

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

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

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

Telco: VZ, T, TWX, ROIAK, VSAT, LEAP, S, WIN

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

Media: AOL, CVC, SIRI, PLA, VMED

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

 


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