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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 under pressure yesterday with semis being the worst performer (SOX -2.5%). In addition to INTC cutting guidance on Friday NVDA -4.7% was downgraded at S&P and a number of firms (Deutsche Bank, Wells Fargo and Credit Suisse, to name a few) cut price target and/or cut estimates of AMD -4.9%. On a positive note HPQ +1.5% and DELL +1.1% had a decent day in a weak tape. According to CNBC DELL is expected to bow out of PAR bidding. DGIT -38% was probably the worst performing media name yesterday, stock sold off on heavy vol (25MM shares vs average daily vol of 496K) after company cut guidance yesterday morning.

In China Foxconn Electronics (Hon Hai Precision Industry) reported better results in part due to demand from AAPL, while its subsidiary Foxconn International Holdings (handset manufacturer) blamed a widening loss in part on weaker demand from NOK and MOT.

 

Macro/Technicals

S&P Fut.: 1039.60; -.53%
SOX: 313.5; -2.5%
VIX: 27.21; +11.3%

Leaders: COGT +24%, HTCH +21%, EDS +3%, BRCD +2.7%
Laggards: DGIT -38%, CML -8%, MSPD-7%, IGTE -6.5%, AMD -5%, NVDA -4.7%

Active Names

Enterprise/Service/ SW: BBBB, MSFT, ADBE, CMVT, FIRE, ARST, RHT, TECD

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

Semis/Circuits: Storage: SYNA, EMC, STX, SNDK, NVDA, AMD, MRVL

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

Telco: LEAP, S, WIN

Electronic components: RBCN, CTV

Media: LCAPA, DGIT, VIA-B

Smaller Caps: ADPT, PAET, AUDC, ZIXI

 

Sector News, M&A, Capital Raises

Quanta Computer Inc., the world’s largest maker of laptops, posted profit that missed estimates and cut its shipment forecast for the current quarter, citing signs of economic weakness in developed markets.  BBG

RVSN announces shareholder approval of partial cash self tender offer

DRAM contract prices continue trending downwards in the second half of August, according to DRAMeXchange. Pricing in the spot market is also facing a continual drop amid weak demand.

Samsung Seeks 'Apps' for TVs – WSJ A push to control how Internet applications are created for TVs is kicking into high gear with Samsung planning to rally software makers around its own technology for making and distributing TV "apps."

FCC Adjusts Rules for TV Band  – WSJ Technology and telecommunications companies could soon get access to unused TV airwaves, allowing them to introduce new wireless gadgets and services, under rules that Federal Communications Commission officials are close to putting into final form.

Intel Looks Beyond PCs – WSJ  Intel  $1.4 billion deal to buy the wireless unit of Infineon Technologies AG demonstrates the chip giant's willingness to adjust its strategies to expand beyond the computer industry.

Compal  Taiwan-based notebook maker Compal Electronics chairman Rock Hsu at a meeting with Taiwan's National Communications Commission (NCC) on August 30 pointed out that notebook demand in the second half of 2010 is not turning weak, but instead the shipment ratio in the third quarter is dropping, according to a Chinese-language Commercial Times report.

News Corp still debating renting shows for $0.99 with Apple (AAPL) - LA Times http://www.latimes.com/business/la-fi-ct-itunes-20100830,0,896642.story

HPQ DOJ says that Hewlett-Packard will pay $55M to settle federal kickback probe

ADSK to reintroduce AutoCAD design software for Macs for first time since 1992 – NYT

Android may not be open to everybody for much longer - LA Times http://latimesblogs.latimes.com/technology/2010/08/bing-verizon-android.html

MetroPCS, Leap Aim to Widen Prepaid-Call Market as Growth Slows – BBG

 

Research Away

ARST downgraded to equal-weight from overweight at Morgan Stanley, px tgt $31

 

Cantor Flows

Enterprise/Service/ SW: BBBB, MSFT, ADBE, CMVT, FIRE, ARST, RHT, TECD

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

Semis/Circuits: Storage: SYNA, EMC, STX, SNDK, NVDA, AMD, MRVL

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

Telco: LEAP, S, WIN

Electronic components: RBCN, CTV

Media: LCAPA, DGIT, VIA-B

Smaller Caps: ADPT, PAET, AUDC, ZIXI

 

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