Tech/Media/Telco
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News and Views
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Macro/Technicals
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Active Names
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Earnings
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Sector News, M&A, Capital Raises
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Research Away
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Cantor Flows
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News and Views
After what seemed like a decent start tech stocks started the decline around 11am yesterday. Macroeconomic worries and sell-side comments (DB cautious on semi foundries, Kaufman highlighting deterioration in enterprise IT spending) seemed to be behind yesterday px action. RIMM -1.9% is facing shutdown of some of BlackBery services in India if solution is not found before Aug. 31st. Rim’s executives are scheduled to meet with Indian officials today. On a positive note S finished up 2.8% yesterday. The stock, however has been lagging VZ and T longer term: S declined 28% since its 52-week high of $5.31 on 5/25/2010.
M&A action seems to be on the rise: this morning DELL matched HP’s $27 bid for PAR, also ARST closed up almost 30% after WSJ reported that the company may be close to being acquired by a bi technology firm. Some of the suitors mentioned were ORCL, CA, IBM, and EMC. The news apparently benefited FIRE, which closed up 11.5%
Macro/Technicals
S&P Fut.: 1048.40; . +.34%SOX: 315.23; -1.95%
VIX: 27.37; +2.51%
Leaders: ARST +29.7%, GRB +14.6%, FIRE +11.5%, ARTG +6.4%
Laggards: SIGM -9%, BCON -8.3%, KLIC -7.6%, FALC -7.6%
Active Names
Enterprise/Service/ SW: TIBX, MSFT, ADBE, CMVT, FIRE, ARST
PCs/Devices/Net: BIDU, DELL, MOT, HPQ, RIMM, LXK, RLD
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, CELL
Earnings
NOVL- Q3 mostly in line with neg preannouncement. NOVL did not provide guidance. NOVL once again cited uncertainty over their ongoing review of various alternatives designed for shareholder value as a major impediment, and the reason for lack of guidance. Novell reviewed its agreement with VMW VMware. Linux product revenue declined sequentially for the second consecutive quarter owing to Microsoft renewal pressures
ARUN- better Q4 on the back of strong product growth. The addition of over 900 new customers in the Q was a huge positive aand couldl be for Qs to come. The number was a record and is the third straight Q of very strong growth. Guidance for Q1 looks better.
NZ- beat and raise Q2. Mgmt also made it a note to mention an improving pipeline that could drive further upside in the future. Guidance was raised on broad based strength across all verticals.
OVTI- Strong Q and GMs were the story coming in very strong in the Q. OVTI could be poised to benefit from strength in the iPhone and new touch technology. Guidance looks mostly in line, but there appears to be room for upside.
SLH- solid Q4 and FY guidance looks in line. Mgmt is cautiously optimistic on recent trends.
Sector News, M&A, Capital Raises
HPQ, DELL: HPQ trumps DELL again as 3PAR bidding war escalates- Reuters
http://www.reuters.com/article/idUSN2618580320100826
PAR: WSJ analyzes the 3Par bidding war
http://online.wsj.com/article/SB10001424052748703959704575453223591767404.html
BBI Blockbuster tells Hollywood studios its-preparing for mid-september bankruptcy- WSJ
GAME: Outspark confirms it is in deal talks, but can’t confirm Shanda spec- GameBeat
FCC: Government appeals ruling on FCC indecency rule- AP
Limewire: FTC drops LimeWire ID theft investigation- Reuters
MSFT, AAPL, GOOG: Microsoft to spend over $500m to catch up to iPhone, Android- AppleInsider
Samsung tablet PC aims to compete against the mini iPad- Digitimes
Solar: Ontario solar market booms, but local sourcing mandate could limit growth- iSuppli
FLEX Flextronics expected to ship 12-15 million notebooks in 2011- Digitimes
DRAM: Weak PC sales further drag down DRAM contract pricing in 2H August- inSpectrum
NFLX, AAPL: Netflix iPhone App Released, Following iPad Version- eWeek
INTC, INFN: Intel, Infineon Near Deal for Mobile Chip Business- eWeek
Studios sue to stop advertising on pirate web sites- Reuters
RIMM: India says BlackBerry must give access or face ban- Reuters
http://feeds.reuters.com/~r/reuters/technologyNews/~3/Fu4qEY3e_Hw/idUSTRE67P0VT20100827
Lenovo to develop game consoles in China- Reuters
CSCO Cisco Buys ExtendMedia To Help Internet Video Kill Cable Companies- Silicon Valley Insider
MOT: Icahn Increases Motorola Stake to 10.4%- WSJ
MSFT: Microsoft Broadens ‘Halo,’ Seeks to Top $600 Million Predecessor- BBG
It’s been a while since customers lined up outside stores at midnight to buy a Microsoft Corp. product. That may change on Sept. 14, when the company releases “Halo: Reach,” the fourth installment of its Xbox video-game series
NOK: Nokia’s Credit Rating in Jeopardy on Falling Profit, Bonds Show- BBG
Nokia Oyj’s credit rating is at risk on concern that its profit slide may deepen as its struggles to take on Apple Inc.’s iPhone
TWX, DIS: Time Warner Cable, Disney Talks Said to Focus on ESPN3.Com Fees- BBG
Disney is seeking a fee of about 10 cents a month per Web customer for ESPN3.com, said one of the people, who declined to be identified because the talks are ongoing. Time Warner Cable is resisting the fee
Facebook Accused of Using Child Members’ Names for Marketing- BBG
Research Away
MAG upgraded to buy from neutral at B. Riley & Company
VSAT downgraded to equal-weight from overweight at Stephens, px tgt $36
Cantor Flows
Enterprise/Service/ SW: TIBX, MSFT, ADBE, CMVT, FIRE, ARST
PCs/Devices/Net: BIDU, DELL, MOT, HPQ, RIMM, LXK, RLD
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, CELL