Cantor Morning News | Tech/Media/Telco

TTWO - And the winner for best action picture is…. Red Dead redemption, a video game from Take Two Interactive. The surprising success of this title led to great Q3 eps for TTWO, which rose as much as +21% in after hours trading last night. As earnings season winds down we got 3 results. ARST beat and guided higher, but with no word during the conference call on a possible sale of the company, it fell a bit (1-2%). FNSR beat and guided higher, and rallied 11%. SEC missed, cut guidance and dropped -13%.

DELL finally folded in the high stakes battle for PAR (HPQ the victor with a $334 bid), attention shifts to the next possible target(s). CML rallied +18.5%, CVLT moved up 5.2% and ISLN rose 3.5%. Large tech companies are sitting on $300b in cash, much of it offshore. CSCO for example has $38B in cash, $30B of which is overseas. Repatriating the money for a domestic acquisition would lead to double taxation; Chambers has been especially vocal in his criticism of this tax policy. Later this year, the UK and Japan will amend their tax laws on this issue, leaving the US as the only large country with such a punitive regime. Perhaps this explains yesterday’s focus on Autonomy, the UK’s second largest software company. Their market cap is about $6.4B; they have 70% of their sales in the Americas. Companies in the right space like AKAM (delivers internet content, streaming media) and INFA (data integration and cloud computing) continue to make all time highs.

Active Names

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

PCs/Devices/Net: MOT, RIMM, VRSN

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

Network Products: BRCD, PLCM, FTR, FFIV

Telco: LEAP, S, WIN, CMVT

Electronic components: RBCN, CTV

Media: LCAPA, DGIT, MCCC

Smaller Caps: ADPT, PAET, AUDC, ZIXI

Research Away

MFE McAfee downgraded to neutral from outperform at Cowen & Co.
The firm cites valuation following the announced deal with INTC.

TLEO Credit Suisse revises estimates for Taleo
Credit Suisse lowers f10 EPS to $0.72 from $0.75 and raises f11 EPS from $0.89 to $0.94 on accelerated billings growth and the recent acquisition of Learn.com. Target $26.90; maintain outperform.

Cantor Flows

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

PCs/Devices/Net: MOT, RIMM, VRSN

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

Network Products: BRCD, PLCM, FTR, FFIV

Telco: LEAP, S, WIN, CMVT

Electronic components: RBCN, CTV

Media: LCAPA, DGIT, MCCC

Smaller Caps: ADPT, PAET, AUDC, ZIXI

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