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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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
Yesterday was a decent day for tech stocks. Semis (SOX +3%) rallied with the market and also on Gartner’s updated global chip sales forecast. Storage names (WDC +6% & STX +5.9%) enjoyed a lift from positive comments out of Morgan Stanley.
In the media space, the race to merge TV and the Internet took center stage again yesterday. At its annual event, AAPL sought to teak its model by moving to a rental price structure; AMZN immediately matched their prices. Content owners are responding warily; they seem to want to explore these options, but at the same time they fear the damage of a price war. Ironically, 99c rentals of single shows might end up being too expensive for the average consumer. The front runner for solving this dilemma seems to be NFLX, which has its software embedded in over 100 delivery systems, while being able to satisfy content owners by paying a fair price. Another theme of the day concerned the FCC’s struggle with net neutrality, as chairman Genachowski felt the need to deny street talk (from CSFB, mostly) that reregulation of broadband under title II would be abandoned. The FCC’s request for additional information and comments effectively delays any decision on this critical issue until after the November elections.
In the days of disappearance of unlimited wireless internet VMED introduced MiFI – a device that creates a WiFi hot spot wherever a 3G signal is available. While the concept itself is not new, the pricing is – usage is unlimited and there is no contract to sign. (Recall that recently AT&T discontinued unlimited wireless data plans).
In Asia Compal Electronics president Ray Chen at a company conference yesterday commented negatively on non-Apple tablet PC shipments in 2011, citing the market being not as easy as many players think. In addition Compal has reduced its third-quarter 2010 notebook shipment forecast from a growth of 5% originally to a single-digit percentage drop on quarter.
On a positive note Asustek Computer vice president Kevin Lin has commented that most enterprises recently started to finish their budget planning for PC replacements, and are expected to start in the first quarter of 2011.
Macro/Technicals
S&P Fut.: 1083.70; +.16%SOX: 316.75 ; +3.01%
VIX: -8.29% ; 23.89
Leaders: BCSI +11.95%, PLXT +11.6%, CTCM +10.4%, SONS +10.4
Laggards: SLTC -6.6%, LTXC -4.6%, SALM -5%, EMMS -2%
Active Names
Enterprise/Service/ SW: BBBB, MSFT, ADBE, CMVT, FIRE, ARST, RHT, TECD
PCs/Devices/Net: BIDU, DELL, MOT, RIMM, VRSN
Semis/Circuits: Storage: SYNA, EMC, STX, SNDK, NVDA, AMD, MRVL
Network Products: BRCD, PLCM, FTR, FFIV
Telco: LEAP, S, WIN
Electronic components: RBCN, CTV
Media: LCAPA, DGIT, MCCC
Smaller Caps: ADPT, PAET, AUDC, ZIXI
Sector News, M&A, Capital Raises
PAR InfoWorld discusses patent infringement suit against 3PAR http://www.infoworld.com/d/the-industry-standard/3par-sued-crossroads-systems-174?source=rss_infoworld_news
RHT Red Hat in talks to buy Makara -- The Register, citing sources
TLEO Taleo to acquire Learn.com for ~$125M in cash
U.S. delays Web traffic rules by seeking more comment – Reuters
VZ: Verizon May Grant Smallest Dividend Raise Since 2006 - BBG
India to target Google and Skype for data access – Reuters India added Google and Skype to its electronic security crackdown on Wednesday and began accessing some of the traffic carried on its initial target, Research In Motion's BlackBerry
BIDU: Baidu Executive: In Talks About Possible M&As – DJ Talks Mostly Involve China Companies
Sony Set to Compete with iTunes – WSJ Sony announced a new digital-music service that would work on Internet-connected Sony TVs, Blu-ray disc players, and PlayStation 3's, entering a competitive space dominated by Apple
HPQ may not see 2010 notebook shipments surpass 40 million units, says Digitimes Research from DIGITIMES
Due to a strong nosedive in global consumer notebook demand, all the first-tier notebook vendors except Apple, reduced their notebook orders significantly in July with Hewlett-Packard's (HP's) volume dropping back to the levels of April and May, a monthly low for HP in 2010, while Acer also saw its shipments drop to less than two million units, the company's lowest monthly volume in 2010, according Digitimes Research senior analyst Joanne Chien.
NAND flash vendors cutting chip prices from DIGITIMES NAND flash chip vendors are now more willing to lower the prices of their NAND flash parts due to rising inventory levels, according to industry sources, adding that the price of 32Gb NAND flash has dropped to as low as US$4.30 per unit recently.
ARST Approach With Caution from TheStreet.com ArcSight, which is the subject of M&A chatter, announces its first-quarter results after market close. James Rogers tells you what to expect.
Research Away
YHOO target lowered to $15 from $17 at UBS
AAPL removed from short term buy list at Deutsche Bank
FORM upgraded to neutral from sell at Goldman Sachs
Cantor Flows
Enterprise/Service/ SW: BBBB, MSFT, ADBE, CMVT, FIRE, ARST, RHT, TECD
PCs/Devices/Net: BIDU, DELL, MOT, RIMM, VRSN
Semis/Circuits: Storage: SYNA, EMC, STX, SNDK, NVDA, AMD, MRVL
Network Products: BRCD, PLCM, FTR, FFIV
Telco: LEAP, S, WIN
Electronic components: RBCN, CTV
Media: LCAPA, DGIT, MCCC
Smaller Caps: ADPT, PAET, AUDC, ZIXI